MIRA INFORM REPORT

Report Date :

27.09.2014

IDENTIFICATION DETAILS

Name :	KANYA ENTERPRISES PRIVATE LIMITED (w.e.f. 30.09.2005) BALAJI SPINNING MILLS (UNIT OF KANYA ENTERPRISES PRIVATE LIMITED)
Formerly Known as :	SEEMA ASSOCIATES PRIVATE LIMITED
Registered Office :	4185, Street No 5, Beant Pura, Chandigarh Road, Ludhiana - 141001, Punjab
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	30.06.1987
Com. Reg. No.:	16-007529
Capital Investment / Paid-up Capital :	Rs. 8.304 Millions
CIN No.: [Company Identification No.]	U51494PB1987PTC007529
TIN No.:	03581155489
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Trader of Cotton Yarn.
No. of Employees :	70 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating reflects moderate financial risk profile marked by low profit margin and increased in the borrowings of the company during 2013. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealing with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : “BB/ Stable”
Rating Explanation	Moderate risk of default
Date	05.08.2014

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Ms. Anu
Designation :	Accounts
Contact No.:	91-161-2228533
Date :	26.09.2014

LOCATIONS

Registered Office :	4185, Street No 5, Beant Pura, Chandigarh Road, Ludhiana - 141001, Punjab, India
Tel. No. :	Not Available
Fax No. :	Not Available
E-Mail :	bsm222222@yahoo.com
Factory :	Lakhowal Road, Village Uhara, Ludhiana - 141002, Punjab, India
Tel. No. :	91-161-2228533

DIRECTORS

As on 30.09.2013

Name :

Mr. Tarsem Lal Gupta

Designation :

Director

Address :

H. No. 409-C, Jamalpur, Phase-I, Urban Estate, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

14.12.1968

Date of Appointment :

08.10.2005

DIN No. :

00228369

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U25209PB2000PLC024048	TRIDEV POLY FABRICS LIMITED	Director	09-11-2000	09-11-2000	-	Strike off	NO
2	U74999PB2002PLC025691	GATS INDIA LIMITED	Director	31-12-2002	31-12-2002	10-07-2009	Active	NO
3	U51494PB1987PTC007529	KANYA ENTERPRISES PRIVATE LIMITED	Director	08-10-2005	08-10-2005	-	Active	NO
4	U17219PB2011PTC035759	UNITECH TEXTILES PRIVATE LIMITED	Director	19-12-2011	19-12-2011	-	Active	NO
5	U17200PB2013PTC037049	NIRLON TEXTILES PRIVATE LIMITED	Director	18-01-2013	18-01-2013	-	Active	NO

Name :

Mrs. Kiran Bala Gupta

Designation :

Director

Address :

H. No. 4013, Shivaji Nagar, Ludhiana - 141001, Punjab

Date of Birth/Age :

29.07.1971

Date of Appointment :

20.05.2006

DIN No. :

02352815

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status
1	U51494PB1987PTC007529	KANYA ENTERPRISES PRIVATE LIMITED	Director	20-05-2006	20-05-2006	-	Active
2	U17219PB2011PTC035759	UNITECH TEXTILES PRIVATE LIMITED	Director	19-12-2011	19-12-2011	01-07-2013	Active

KEY EXECUTIVES

Name :	Ms. Anu
Designation :	Accounts

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Tarsem Lal Gupta	428651	51.62
Kiran Bala Gupta	401735	48.38
Total	830386	100.00

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of Cotton Yarn.
Terms :
Selling :	Cash and Credit (30 Days)
Purchasing :	Cash and Credit (30 Days)

GENERAL INFORMATION

Customers :

Retailers and Other

No. of Employees :

70 (Approximately)

Bankers :

Indian Overseas Bank, Industrial Area, Ludhiana, Punjab - 141003, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Term loan from banks	1.600	2.929
SHORT TERM BORROWINGS
Loans repayable on demand/working capital loans From Banks	124.889	114.658
Total	126.489	117.587

Banking Relations :	--
Auditors :
Name :	Pardeep Pawan and Associates Chartered Accountants
Address :	Sco No. 3, 1^st Floor City Plaza Complex, Bari Haibowal, Ludhiana – 141001, Punjab, India
Tel. No. :	91-161-5097418
Mobile No. :	91-9814157418
E-Mail :	pardeeooawan@email.com
Income-tax PAN of auditor or auditor's firm :	ABWPG3211A

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
830,386	Equity Shares	Rs.10/- each	Rs. 8.304 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	8.304	8.304
(b) Reserves & Surplus	46.543	45.059
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	54.847	53.363
(3) Non-Current Liabilities
(a) long-term borrowings	30.875	22.850
(b) Deferred tax liabilities (Net)	2.519	3.283
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	33.394	26.133
(4) Current Liabilities
(a) Short term borrowings	124.889	114.658
(b) Trade payables	2.411	2.343
(c) Other current liabilities	1.339	0.024
(d) Short-term provisions	1.006	2.060
Total Current Liabilities (4)	129.645	119.085
TOTAL	217.886	198.581
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	41.768	38.274
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	41.768	38.274
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	46.856	64.044
(c) Trade receivables	110.583	87.907
(d) Cash and cash equivalents	8.941	6.080
(e) Short-term loans and advances	9.738	2.276
(f) Other current assets	0.000	0.000
Total Current Assets	176.118	160.307
TOTAL	217.886	198.581

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012
	SALES
		Income
		Other Income
		TOTAL		515.371	481.970
Less	EXPENSES
		TOTAL		513.202	480.007
	PROFIT/ (LOSS) BEFORE TAX			2.169	1.963
Less	TAX			0.754	0.937
	PROFIT/ (LOSS) AFTER TAX			1.415	1.026
	Earnings / (Loss) Per Share (Rs.)			1.70	1.24

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
PAT / Total Income	(%)	0.27	0.21
Return on Total Assets (PBT/Total Assets}	(%)	1.00	0.99
Return on Investment (ROI) (PBT/Networth)		0.04	0.04
Debt Equity Ratio (Total Debt/Networth)		2.84	2.58
Current Ratio (Current Asset/Current Liability)		1.36	1.35

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	8.304	8.304
Reserves & Surplus	45.059	46.543
Net worth	53.363	54.847
long-term borrowings	22.850	30.875
Short term borrowings	114.658	124.889
Total borrowings	137.508	155.764
Debt/Equity ratio	2.577	2.840

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	481.970	515.371
		6.930

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	481.970	515.371
Profit	1.026	1.415
	0.21%	0.27%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10363018	28/01/2013 *	53,966,000.00	INDIAN OVERSEAS BANK	INDUSTRIAL AREA, LUDHIANA, PUNJAB - 141003, INDIA	B71171904
2	10345806	03/02/2014 *	200,000,000.00	INDIAN OVERSEAS BANK	INDUSTRIAL AREA BRANCH, LUDHIANA, PUNJAB - 141003, INDIA	B98146368
3	10345805	09/03/2012	2,700,000.00	INDIAN OVERSEAS BANK	INDUSTRIAL AREA, NEAR TRANSPORT NAGAR, LUDHIANA, PUNJAB - 141003, INDIA	B36395440

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Loans and advance from related parties	1.354	19.921
Advance from customers -others	27.921	0.000
Total	29.275	19.921

FINANCIAL PERFORMANCE

The company achieved sales and other Misc. Income of Rs. 515.371 Millions during the year, as compared to Rs. 481.970 Millions in the previous year and earned profit before tax of Rs. 2.169 Millions, where as it was of Rs. 1.963 Millions in previous year. After providing provision of income tax and other adjustments, the profit during the year of Rs. 1.415 Millions are being carried over to Balance Sheet as at 31.03.2013.

FIXED ASSETS

· Land

Building

Plant and Machinery

Mobile Set

Car

Computer

Office Equipment

Furniture

Motor Cycle

Vehicle

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.57
UK Pound	1	Rs.100.42
Euro	1	Rs.78.45

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.