MIRA INFORM REPORT

Report No. :	318125
Report Date :	22.04.2015

IDENTIFICATION DETAILS

Name :		TEXWORLD FASHION PRIVATE LIMITED
Registered Office :		63/2, New Cloth Market, Outside. Raipur Gate, Ahmedabad - 380002, Gujarat
Tel. No.:	91-79-22160769
Country :		India
Financials (as on) :		31.03.2014
Date of Incorporation :		05.01.2005
Com. Reg. No.:		04-045260
Capital Investment / Paid-up Capital :		Rs.9.900 Million
CIN No.: [Company Identification No.]		U17110GJ2005PTC045260
TAN No.: [Tax Deduction & Collection Account No.]		AHMT02365G
PAN No.: [Permanent Account No.]		AACCT2582M
Legal Form :		Private Limited Liability Company
Line of Business :		Manufacturer, Trader, Exporter and Importer of Printed Fabric. (Manufacturing through job work).
No. of Employees :		12 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 30000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	The subject is an established company having a moderate track record. The company has reported decent profitability during FY2014. However, the rating gets constrained as the company possesses inadequate liquidity, moderate net worth, marked by low reserves. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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 :	Mr. Rishabh
Designation :	Accounts and Finance Department
Contact No.:	91-79-22160769
Date :	20.04.2015

LOCATIONS

Registered Office :	63/2, New Cloth Market, Outside Raipur Gate, Ahmedabad - 380002, Gujarat, India
Tel. No.:	91-79-22160769
Fax No.:	91-79-22165385
E-Mail :	sekhanifab@vsnl.net

DIRECTORS

As on 27.09.2014

Name :

Mr. Rinish Noratmal Sekhani

Designation :

Director

Address :

5/A, Vikram Nagar, Co-operative Housing Society, Usmanpura, Ahmedabad – 380013, Gujarat, India

Date of Appointment :

05.01.2005

DIN No.:

00926952

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	U17110GJ2005PTC045260	TEXWORLD FASHION PRIVATE LIMITED	Director	05-01-2005	05-01-2005	-	Active	NO
2	U17119GJ1979PTC003473	RACHANA FABRICS PRIVATE LIMITED	Director	27-09-2005	27-09-2005	-	Active	NO

Name :

Mr. Motilal Govindram Sekhani

Designation :

Director

Address :

5/A, Vikram Nagar, Co-operative Housing Society, Usmanpura, Ahmedabad – 380013, Gujarat, India

Date of Appointment :

05.01.2005

DIN No.:

01640070

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	U17119GJ1985PTC007803	SEKHANI INDUSTRIES PRIVATE LIMITED	Director	02-05-1985	02-05-1985	27-11-2009	Active	NO
2	U17119GJ1979PTC003473	RACHANA FABRICS PRIVATE LIMITED	Director	10-04-1993	10-04-1993	-	Active	NO
3	U17110GJ2005PTC045260	TEXWORLD FASHION PRIVATE LIMITED	Director	05-01-2005	05-01-2005	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rishabh
Designation :	Accounts and Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2014

Names of Shareholders	No. of Shares	%age holding
Rinish N. Sekhani	55000	5.56
Motilal Malchand Sekhani	95000	9.60
Aditi Skhani	50000	5.05
Rakesh Sekhani	75000	7.58
Rikin N. Sekhani	90000	9.09
Sekhani Fabric Mills Private Limited	480000	48.48
Shey Sekhani	50000	5.05
Shweta Rinish Sekhani	35000	3.54
Sunita Rikin Sekhani	35000	3.54
Veenadevi Sekhani	25000	2.53
Total	990000	100.00

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2014

Category	Percentage
Bodies corporate	48.48
Directors or relatives of Directors	51.52
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader, Exporter and Importer of Printed Fabric. (Manufacturing through job work).
Products :	Printed Fabric
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Finished Goods
Countries :	Srilanka Dubai
Imports :
Products :	Chemical
Countries :	China
Terms :
Selling :	Cash advance and Credit
Purchasing :	Cash advance and Credit

As on 31.03.2013

PRODUCTION STATUS NOT AVAILABLE

Particulars	Quantity Meters
Finished Goods	1484333

GENERAL INFORMATION

Suppliers :

Reference :

Mangal Textile mills India Private Limited

Name of the Person :

Mr. Vikas (Accountant)

Contact No.:

9925237199

Since How Long Known :

Longtime

Maximum Limit Dealt :

Rs. 9.200 Million (Yearly)

Experience :

Payment Behaviour	Market Goodwill	Overall
Good	Good	Good

Remark:

They gave us positive response about subject company they are satisfied with their payment behavior and market goodwill

Customers :

Wholesalers, Retailers and End Users

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

12 (Approximately)

Bankers :

Bank Name	Kotak Mahindra Bank Limited
Branch	Vatva, Ahmedabad, Gujarat, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	PCFC : Rs. 47.500 Million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Short-term borrowings
Kotak Mahindra Bank Limited – PDFC Limit (Secured against personal properties of Directors and Shareholders)	11.730	0.000
Total	11.730	0.000

Auditors :
Name :	Lunia and Company Chartered Accountants
Address :	B-12, Harekrishna Complex, Kakaria, Ahmedabad – 380028, Gujarat, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAAFL7194C
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
990000	Equity Shares	Rs.10/- each	Rs.9.900 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	9.900	9.900	0.100
(b) Reserves & Surplus	2.120	0.849	(2.283)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	12.020	10.749	(2.183)
(3) Non-Current Liabilities
(a) long-term borrowings	2.897	12.777	29.729
(b) Deferred tax liabilities (Net)	0.034	0.049	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	2.931	12.826	29.729
(4) Current Liabilities
(a) Short term borrowings	11.730	0.000	0.000
(b) Trade payables	23.544	41.486	0.069
(c) Other current liabilities	0.245	0.241	0.110
(d) Short-term provisions	0.300	0.750	0.000
Total Current Liabilities (4)	35.819	42.477	0.179
TOTAL	50.770	66.052	27.725
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	13.299	12.994	11.678
(ii) Intangible Assets	1.148	1.721	2.295
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	14.447	14.715	13.973
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	18.131	18.649	0.000
(c) Trade receivables	6.976	4.808	0.000
(d) Cash and cash equivalents	0.898	0.410	7.202
(e) Short-term loans and advances	10.318	27.469	6.550
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	36.323	51.336	13.752
TOTAL	50.770	66.051	27.725

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	108.689	86.639	0.000
	Other Income	2.203	0.908	0.720
	TOTAL (A)	110.892	87.547	0.720
Less	EXPENSES
	Purchases of Stock-in-Trade	103.022	99.162	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	0.519	(18.649)	0.000
	Employees benefits expense	2.055	0.333	0.184
	Administrative and General Expenses	1.044	0.526	0.253
	Selling and Marketing Expenses	0.548	0.377	0.000
	TOTAL (B)	107.188	81.749	0.437
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	3.704	5.798	0.283
Less	FINANCIAL EXPENSES (D)	1.214	1.191	1.992
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	2.490	4.607	(1.709)
Less/ Add	DEPRECIATION/ AMORTISATION (F)	0.938	0.677	0.574
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	1.552	3.930	(2.283)
Less	TAX (H)	0.281	0.799	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	1.271	3.131	(2.283)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	56.418	79.370	0.000
	TOTAL EARNINGS	56.418	79.370	0.000
	Earnings / (Loss) Per Share (Rs.)	1.28	3.16	(2.31)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	1.17	3.61	NA
Operating Profit Margin (PBIDT/Sales)	(%)	3.41	6.69	NA
Return on Total Assets (PBT/Total Assets}	(%)	3.06	5.96	(8.23)
Return on Investment (ROI) (PBT/Networth)		0.13	0.37	1.05
Debt Equity Ratio (Total Debt /Networth)		1.22	1.19	(13.62)
Current Ratio (Current Asset/Current Liability)		1.01	1.21	76.83

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	0.100	9.900	9.900
Reserves & Surplus	(2.283)	0.849	2.120
Net worth	(2.183)	10.749	12.020
long-term borrowings	29.729	12.777	2.897
Short term borrowings	0.000	0.000	11.730
Total borrowings	29.729	12.777	14.627
Debt/Equity ratio	(13.618)	1.189	1.217

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	0.000	86.639	108.689
			25.450

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	0.000	86.639	108.689
Profit/ (Loss)	(2.283)	3.131	1.271
		3.61%	1.17%

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 three years	Yes
12]	Profitability for last three 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	Yes
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No

OPERATIONS

The working of the Company has resulted in net profit of Rs. 1.552 Million. Deducting there from the provision for taxation of Rs. 0.300 Million and previous year Income Tax of Rs. 0.004 Million and Deferred Tax Liability Written back of Rs. 0.015 Million, the Profit after tax amounted to Rs. 1.271 Million. Adding there to the brought forward profit of Rs. 0.849 Million, the profit of Rs. 2.120 Million is carried to Balance Sheet.

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Incorporate Loans	0.000	10.163
Others	2.897	2.614
Total	2.897	12.777

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10561932	09/03/2015	240,000,000.00	ALLAHABAD BANK	SARDARPATEL NAGAR BRANCH, ACME CENTRE, SHIRMALI SOC, NAVRANGPURA, AHMEDABAD, Gujarat - 380009, INDIA	C50277839
2	10557040	27/11/2014	57,500,000.00	KOTAK MAHINDRA BANK LIMITED	27BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E),, Mumbai, Maharashtra - 400051, INDIA	C47734702

FIXED ASSETS

• Land
• Building
• Motor Car
• Computer

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.62.92
UK Pound	1	Rs.93.57
Euro	1	Rs.67.34

INFORMATION DETAILS

Information Gathered by :	PPT
Analysis Done by :	SUC
Report Prepared by :	GTA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.