MIRA INFORM REPORT

Report No. :	308728
Report Date :	23.02.2015

IDENTIFICATION DETAILS

Name :	ALLIANCE EMBROIDERY MACHINE PRIVATE LIMITED
Registered Office :	A-1128, New Bombay Market, Near Sahara Darwaza, Surat – 395002, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	20.10.2009
Com. Reg. No.:	04-058409
Capital Investment / Paid-up Capital :	Rs.21.500 Millions
CIN No.: [Company Identification No.]	U17120GJ2009PTC058409
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Importer and trader of embroidery machines.
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Status :	Moderate
Payment Behaviour :	Sow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating takes into consideration low profit margin reported by the management during FY 2014. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings 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 – 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	ICRA
Rating	Long term rating: B+
Rating Explanation	Suspended risk prone credit quality and carries very high credit risk.
Date	September 2012

Rating Agency Name	ICRA
Rating	Short term rating: A4
Rating Explanation	Suspended minimal degree of safety ad very high credit risk.
Date	September 2012

NOTE:

Suspension follow ICRA’s inability to carry out a rating surveillance in the absence of the requisite information from the company.

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. Subhash Nandlal Dawar
Designation :	Director
Contact No.:	91-9825143686
Date :	18.02.2015

LOCATIONS

Registered Office :	A-1128, New Bombay Market, Near Sahara Darwaza, Surat – 395002, Gujarat, India
Tel. No.:	91-261-3072111/3072112
Mobile No.:	91-9825143686 (Mr. Subhash Nandlal Dawar)
Fax No.:	91-261-2311323/2313802
E-Mail :	alliancemachine@gmail.com
Area :	3000 Sq ft
Location :	Owned
Corporate Office:	A-1127, New Bombay, Market Umarwada, Surat – 395010, Gujarat, India

DIRECTORS

As on 30.09.2014

Name :	Mr. Subhash Nandlal Dawar
Designation :	Director
Address :	A-1102, Ashirwad Park, City Light Road, Nr. Surya Bulding, City Light, Surat – 395007, Gujarat, India
Date of Birth/Age :	26.01.1963
Date of Appointment :	20.10.2009
DIN No.:	01715209
Name :	Mr. Ramesh Dawar
Designation :	Director
Address :	A-1102, Ashirwad Park, City Light Road, Nr. Surya Bulding, City Light, Surat – 395007, Gujarat, India
Date of Birth/Age :	30.05.1950
Date of Appointment :	20.10.2009
DIN No.:	02790167

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares	%age holding
Subhash Nandlal Dawar	1115000	51.86
Ramesh Dawar	1035000	48.14
Total	2150000	100.00

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 :	Importer and trader of embroidery machines.
Products :	Embroidery machines
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :
Products :	Embroidery machines
Countries :	China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Guelong, China
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

Customers :

Reference :

Uma Indsutreis

Name of the Person :

MR. Arun Agarwal

Contact No.:

91-9825216086

Since How Long Known :

5 Years

Maximum Limit Dealt :

Rs. 50.000 Millions

Experience :

Product Quality	Delivery Behaviour	Overall
Good	Good	Good

Remark:

Company is good quality is excellent only their delivery delays some time.

No. of Employees :

20 (Approximately)

Bankers :

Oriental Bank of Commerce, Jash Textile Market, Ring Road, Surat - 395002,

Gujarat, India

Bank Name	Bank of India
Branch	Ring Road, Surat, Gujarat, India
Person Name (With Designation)	Mr. Jay Narayan (Chief Manager)
Contact Number	91-261-2320691/2321803 91-9724339733
Name of Account Holder	Alliance Embroidery Machine private Limited
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)	Mr. Jay Narayan (Chief Manager) is on tour will be back on Monday, he will fill up the form and mail, mail sent on textilemarket.vadodara@bankofindia.co.in

Facilities :

Secured Loan	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
Long-term Borrowings
Loan from bank	74.813	96.284
Total	74.813	96.284

Auditors :
Name :	C.S. Bhatt and Company Chartered Accountants
Address :	5013, Trade House, Near Rushab Petrol Pump, Ring Road, Surat – 395002, Gujarat, India
PAN N Income-tax PAN of auditor or auditor's firm :	ABHPB2790G
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2150000	Equity Shares	Rs.10/- each	Rs. 21.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2150000	Equity Shares	Rs.10/- each	Rs. 21.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

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	21.500	21.500	21.500
(b) Reserves & Surplus	0.679	0.180	0.143
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	20.840	0.000	0.000
Total Shareholders’ Funds (1) + (2)	43.019	21.680	21.643
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	2.730
(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	2.730
(4) Current Liabilities
(a) Short term borrowings	74.813	96.284	106.957
(b) Trade payables	6.084	95.557	83.337
(c) Other current liabilities	27.939	77.067	51.871
(d) Short-term provisions	0.272	0.049	0.073
Total Current Liabilities (4)	109.108	268.957	242.238
TOTAL	152.127	290.637	266.611
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.573	0.625	0.747
(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)	0.015	0.015	0.008
(d) Long-term Loan and Advances	2.002	1.685	88.044
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	2.590	2.325	88.799
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	12.853	5.674	15.125
(c) Trade receivables	63.733	155.955	127.769
(d) Cash and cash equivalents	0.251	3.927	0.767
(e) Short-term loans and advances	72.692	122.741	34.129
(f) Other current assets	0.008	0.015	0.022
Total Current Assets	149.537	288.312	177.812
TOTAL	152.127	290.637	266.611

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2014	31.03.2013	31.03.2012
SALES
Income	227.397	145.835	278.897
Other Income	0.047	1.810	0.012
TOTAL	227.444	147.645	278.909
EXPENSES	226.590	147.465	278.659
PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (	0.854	0.180	0.250
DEPRECIATION/ AMORTISATION	0.107	0.122	0.148
PROFIT/ (LOSS) BEFORE TAX	0.746	0.058	0.102
TAX	0.247	0.021	0.060
PROFIT/ (LOSS) AFTER TAX	0.499	0.037	0.042
PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	0.180	0.143	0.101
Balance Carried to the B/S	0.679	0.180	0.143
Earnings / (Loss) Per Share (Rs.)	0.32	NA	NA

Expected Sales (2014-2015) : Rs.700.000 Millions

The above information has been parted by Mr. Subhash Nandlal Dawar

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.22	0.03	0.02
Return on Total Assets (PBT/Total Assets}	(%)	0.49	0.02	0.04
Return on Investment (ROI) (PBT/Networth)		0.02	0.00	0.00
Debt Equity Ratio (Total Debt /Networth)		1.74	4.44	5.07
Current Ratio (Current Asset/Current Liability)		1.37	1.07	0.73

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	21.500	21.500	21.500
Reserves & Surplus	0.143	0.180	0.679
Share Application money pending allotment	0.000	0.000	20.840
Net worth	21.643	21.680	43.019
long-term borrowings	2.730	0.000	0.000
Short term borrowings	106.957	96.284	74.813
Total borrowings	109.687	96.284	74.813
Debt/Equity ratio	5.068	4.441	1.739

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	278.897	145.835	227.397
		(47.710)	55.928

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	278.897	145.835	227.397
Profit	0.042	0.037	0.499
	0.02%	0.03%	0.22%

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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
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	Yes
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

THE YEAR IN RETROSPECT AND FUTURE OUTLOOK:

During the year under review, Company has achieved turnover of Rs.2273.97 Lacs as against turnover of ` 1458.35 Lacs in previous year. The Company has earned net profit of ` 4.99 Lacs during the year. Your directors have various plans and strategies to further improve the efficiency of the company and making every possible effort to materialize their plans for the

growth and development of the company.

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10252763	04/01/2012 *	100,000,000.00	ORIENTAL BANK OF COMMERCE	JASH TEXTILE MARKET, RING ROAD, SURAT, GUJARAT - 395002, INDIA	B29200789

* Date of charge modification

FIXED ASSETS

• Office Equipment
• Electrical Fittings
• Air Conditioner
• Furniture and Fixture
• 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.62.26
UK Pound	1	Rs.96.01
Euro	1	Rs.70.72

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	SUM
Report Prepared by :	KVT

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	5
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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		28

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.