MIRA INFORM REPORT

Report No. :	354190
Report Date :	21.12.2015

IDENTIFICATION DETAILS

Name :	LAXMI SHUTTLELESS LOOMS PRIVATE LIMITED
Registered Office :	Sanghvi Estates, GST Road, Kaligam Ranip, Ahmedabad – 382480, Gujarat
Tel. No.:	91-79-25622510/ 25620604
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	11.12.2003
Com. Reg. No.:	04-043321
Capital Investment / Paid-up Capital :	Rs.2.400 Million
CIN No.: [Company Identification No.]	U29263GJ2003PTC043321
IEC No.:	0803012756
TAN No.: [Tax Deduction & Collection Account No.]	AHML00623A
PAN No.: [Permanent Account No.]	AAACL9508P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader, Exporter and Importer of Shuttleless Rapier Looms and Related Spare Parts. (Confirmed by management)
No. of Employees :	8 (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 was established in the year 2003 and it is engaged in the manufacturing, trading, exporting and importing of shuttle less rapier looms and related spare parts. For the financial year ended 2014, company possesses moderate operational performance and revenue has been declined by 11.55% during the year under review. However, company has able to achieve some profit over previous year operational losses. Rating remain constrained on account of company’s moderate financial profile marked by its modest networth base along with huge borrowings and weak debt coverage indicators. Trade relations are reported as fair. Payments are reported to be slow but correct. In view of aforesaid, the company can be considered for business dealin 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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 31-03-2015.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Mahesh Gupta
Designation :	Account Executive
Contact No.:	91-79-25622510
Date :	09.12.2015

LOCATIONS

Registered Office/ Factory/ Warehouse :	Sanghvi Estates, GST Road, Kaligam Ranip, Ahmedabad – 382480, Gujarat, India
Tel. No.:	91-79-25622510/ 25620604
Fax No.:	91-79-25622845
E-Mail :	sales@laxmilooms.com trshahaudit@yahoo.com
Website :	www.laxmilooms.com
Branch Office :	22/23, Punmaji Industrial Estate, Shahpur, Ahmedabad – 380004, Gujarat, India
Tel. No.:	91-79-25624393/ 25622410
Fax No.:	91-79-25622845

DIRECTORS

As on 31.03.2015

Name :	Mr. Hemang Manmohandas Shanghvi
Designation :	Director
Address :	7 Hatkesh Society Sharda School Lane, Near Ishwar Bhuvan Navjivan, Ahmedabad - 380014, Gujarat, India
Date of Birth/Age :	31.03.1966
Date of Appointment :	11.12.2003
DIN No.:	00357157
Name :	Mr. Divyang Anantrai Shanghvi
Designation :	Director
Address :	6 Paritosh Co-Operative Housing Society, Near Kamnath Mahadev, Ahmedabad - 380013, Gujarat, India
Date of Birth/Age :	26.07.1959
Date of Appointment :	11.12.2003
DIN No.:	00357164
Name :	Mr. Nimish Manmohandas Sanghvi
Designation :	Director
Address :	7 Hatkesh Society Sharda School Lane, Near Ishwar Bhuvan Navjivan, Ahmedabad - 380014, Gujarat, India
Date of Birth/Age :	01.02.1962
Date of Appointment :	11.12.2003
DIN No.:	00357168
Name :	Mr. Ketan Bhavanidas Sanghvi
Designation :	Director
Address :	121,Kalpataru Royale 110 Road No.29, Sion (East), Mumbai - 400022, Maharashtra, India
Date of Birth/Age :	23.12.1961
Date of Appointment :	11.12.2003
DIN No.:	00654701

KEY EXECUTIVES

Name :	Mr. Mahesh Gupta
Designation :	Account Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares
Divyang Anantrai Shanghvi	55000
Nimish Manmohandas Sanghvi	55000
Ketan Bhavanidas Sanghvi	55000
Hemang Manmohandas Shanghvi	55000
Divyang Anantrai Shanghvi	5000
Vedanta N Shanghvi	5000
Bansi Shanghvi	5000
Swati Shanghvi	5000
Total	240000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Trader, Exporter and Importer of Shuttleless Rapier Looms and Related Spare Parts. (Confirmed by management)

Products :

Item Code No.	Product Description
84463090	Rapier Looms

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Finished Goods

Countries :

• Nepal
• United States of America
• Indonesia

Imports :

Products :

Raw Material/ Machinery

Countries :

China

Terms :

Selling :

Cash, L/C and Credit

Purchasing :

Cash, L/C and Credit

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Accumould Founders
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

• Chetan Traders
• Deepa Shah
• Friction Engineers
• Himanshu Enterprise
• Chamunda Enterprise
• Beena Industries
• Ameet Trading Company
• Deep Engineering Works
• Dhanlaxmi Colour Company
• Bhavesh Steels

Customers :

Wholesalers, Retailers and Manufacturer

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 :

8 (Approximately)

Bankers :

Bank Name	Bank of India
Branch	Shahibaug Branch 313, Ground Floor, Sahajanand Shopping Centre Shahibaug Road, Shahibaug, Ahmedabad - 380004, 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)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

• Bank of Baroda
• ICICI Bank Limited

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Short-term borrowings
HDFC Motor Car Loan (secured against hypothecation of motor car)	0.000	0.148
Bank of India-Cash Credit A/C (Secured against hypothecation of stock)	8.735	9.706
Total	8.735	9.854

Auditors :
Name :	Tushar R. Shah and Associates Chartered Accountants
Address :	8-g, Vardan Tower, Near Vimal House, Lakhudi Talav, Navrangpura, Ahmedabad – 380014, Gujarat, India
PAN N Income-tax PAN of auditor or auditor's firm :	AJHPS2590R
Memberships :	--
Collaborators :	--
Enterprises over which key management personnel exercise significant influence:	Shanghvi Textile Engineering Private Limited Laxmi Textile Stores Jamtex Creation Textiles Priyalaxmi Machinery Manufacturer Accumould Founders

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
240000	Equity Shares	Rs.10/- each	Rs.2.400 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
240000	Equity Shares	Rs.10/- each	Rs.2.400 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	2.400	2.000	1.100
(b) Reserves & Surplus	(0.522)	(1.271)	0.000
(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)	1.878	0.729	1.100
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	0.148
(b) Deferred tax liabilities (Net)	0.000	0.000	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)	0.000	0.000	0.148
(4) Current Liabilities
(a) Short term borrowings	11.465	12.004	22.922
(b) Trade payables	7.887	5.761	8.104
(c) Other current liabilities	0.039	0.011	0.299
(d) Short-term provisions	0.276	0.275	0.261
(e) Advance Against Order	14.626	5.516	6.831
Total Current Liabilities (4)	34.293	23.567	38.417
TOTAL	36.171	24.296	39.665
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2.185	2.564	2.653
(ii) Intangible Assets	0.000	0.000	0.000
(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)	0.702	1.049	0.703
(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	2.887	3.613	3.356
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	17.022	9.646	8.954
(c) Trade receivables	5.398	4.932	14.224
(d) Cash and cash equivalents	2.719	0.637	2.792
(e) Short-term loans and advances	3.401	0.391	3.662
(f) Deposits	0.047	0.046	0.047
(g) Other current assets	4.697	5.031	6.128
(h) Profit and Loss A/C	0.000	0.000	0.502
Total Current Assets	33.284	20.683	36.309
TOTAL	36.171	24.296	39.665

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	37.217	41.565	60.815
	Other Income	0.102	0.159	0.163
	TOTAL	37.319	41.724	60.978
Less	EXPENSES
	Cost of Materials Consumed		30.106	49.456
	Purchases of Stock-in-Trade		2.785	0.416
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade		(0.096)	0.002
	Employees benefits expense		1.140	1.018
	Other expenses		8.428	12.220
	TOTAL	35.828	42.363	63.112
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	1.491	(0.639)	(2.134)
Less/ Add	DEPRECIATION/ AMORTISATION	0.398	0.474	0.480
	PROFIT/ (LOSS) BEFORE TAX	1.093	(1.113)	(2.614)
Less	TAX	0.344	(0.343)	(0.763)
	PROFIT/ (LOSS) AFTER TAX	0.749	(0.770)	(1.851)
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	3.767	NA	NA
	TOTAL EARNINGS	3.767	NA	NA
	Earnings / (Loss) Per Share (Rs.)	3.12	(3.85)	(16.83)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA
Net cash flow from operating activity	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	2.01	(1.85)	(3.04)
Return on Total Assets (PBT/Total Assets}	(%)	3.08	(4.79)	(6.71)
Return on Investment (ROI) (PBT/Networth)		0.58	(1.53)	(2.38)
Debt Equity Ratio (Total Debt /Networth)		6.10	16.47	20.97
Current Ratio (Current Asset/Current Liability)		0.97	0.88	0.95

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	1.100	2.000	2.400
Reserves & Surplus	0.000	(1.271)	(0.522)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	1.100	0.729	1.878
long-term borrowings	0.148	0.000	0.000
Short term borrowings	22.922	12.004	11.465
Total borrowings	23.070	12.004	11.465
Debt/Equity ratio	20.973	16.466	6.105

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	60.815	41.565	37.217
		(31.653)	(10.461)

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	60.815	41.565	37.217
Profit/ (Loss)	(1.851)	(0.770)	0.749
	(3.04%)	(1.85%)	2.01%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	Yes
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Short-term borrowings
From Shareholders/ Directors/ Relatives of Directors	2.730	2.150
Total	2.730	2.150

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10319921	21/10/2011	30,000,000.00	BANK OF INDIA	SHAHIBAUG BRANCH 313 GROUND FLOOR, SAHAJANAND SHO  PING CENTRE SHAHIBAUG ROAD SHAHIBAUG, AHMEDABAD, Gujarat - 380004, INDIA	B26196766

FIXED ASSETS

• Plant and Machinery
• Building
• Land
• Electric Fitting
• Furniture and Fixture
• Computer Systems
• Cycle
• Motor Car

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.66.42
UK Pound	1	Rs.99.17
Euro	1	Rs.72.13

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KAR
Report Prepared by :	SUD

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	YES
--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	--

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