MIRA INFORM REPORT

Report No. :	304388
Report Date :	28.01.2015

IDENTIFICATION DETAILS

Name :	MSH SAREES PRIVATE LIMITED
Registered Office :	207 Crystal, Centretunga Village, Raheja Vihar, Andheri (East), Mumbai – 400073, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	24.09.2002
Com. Reg. No.:	11-137332
Capital Investment / Paid-up Capital :	Rs.10.000 Millions
CIN No.: [Company Identification No.]	U51310MH2002PTC137332
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 :	Subject has Retails Outlets for Sarees, Salwar Suits and Shawls.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 170000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company possesses an acceptable financial profile marked by adequate networth base and increased gearing along with an unfavorable gap between trade receivables and payables which may act as a threat to the liquidity. Management has reported an acceptable net profitability during FY 2014. Trade relations seems to be fair. Business is active. Payment terms are reported as slow but correct. In view of limited scale of its operations, the subject 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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

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.

LOCATIONS

Registered Office :	207 Crystal, Centretunga Village, Raheja Vihar, Andheri (East), Mumbai – 400073, Maharashtra, India
Tel. No. :	91-22-28574413 / 14 / 40154414
Fax No. :	91-22-28572593
E-Mail :	ho_mshsarees@yahoo.com
Website :	www.jashan.in

DIRECTORS

AS ON 30.09.2014

Name :	Mr. Chander Kundandas Jashnani
Designation :	Director
Address :	1203, Glen Classic, HiraNandani Garden, Powai, Mumbai – 400076, Maharashtra, India
Date of Birth/Age :	02.07.1945
Date of Appointment :	24.09.2002
DIN No. :	00389517
Name :	Mr. Rahul Chander Jashnani
Designation :	Director
Address :	1203, Glen Classic, HiraNandani Garden, Powai, Mumbai – 400076, Maharashtra, India
Date of Birth/Age :	18.01.1976
Date of Appointment :	01.04.2005
DIN No. :	00389605
Name :	Mrs. Deepali Rahul Jashnani
Designation :	Director
Address :	1203, Glen Classic, HiraNandani Garden, Powai, Mumbai – 400076, Maharashtra, India
Date of Birth/Age :	07.01.1976
Date of Appointment :	24.09.2002
DIN No. :	00389658
Name :	Mrs. Saroj Chander Jashnani
Designation :	Additional Director
Address :	1203, Glen Classic, HiraNandani Garden, Powai, Mumbai – 400076, Maharashtra, India
Date of Birth/Age :	11.09.1946
Date of Appointment :	01.04.2012
DIN No. :	05334047

MAJOR SHAREHOLDERS

AS ON 30.09.2014

Names of Equity Shareholders	No. of Shares
Chander Kundandas Jashnani	361100
Deepali Rahul Jashnani	50000
Chander K Jashnani	118800
Rahul Chander Jashnani Jointly Deepali R Jashnani	180000
Rahul Chander Jashnani	40100
Total	750000

Names of Preference Shareholders	No. of Shares
Rahul Chander Jashnani	250000
Total	250000

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00

BUSINESS DETAILS

Line of Business :	Subject has Retails Outlets for Sarees, Salwar Suits and Shawls.
Products :	Sarees Salwar Suits Shawls
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Not Available
Purchasing :	Not Available

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

Not Available

No. of Employees :

Not Available

Bankers :

· ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Vadodara – 390015, Gujarat, India

· Citi Bank N. A., Citi Tower, 61, Dr. S. S. Rao, Parel, Mumbai – 400012, Maharashtra, India

· Bank of India, Lucknow Branch, Mihini Mansion, 1 Nawal Kishore Road, Lucknow – 226001, Uttar Pradesh, India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
Long Term Borrowings
From Banks
Term loans from banks	102.821	47.616
Vehicles loan from bank	1.421	0.387
Short Term Borrowings
Repayable on demand
From Banks (Working Capital loan)	24.436	37.416
Total	128.678	85.419

Banking Relations :	--
Auditors :
Name :	Chaturvedi Sohan and Company Chartered Accountants
Address :	320, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400021, Maharashtra, India
PAN No. :	AABPC8158C
Membership :	--
Others :	Modern Silk House MSH Sarees

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 Millions
250000	Preference shares	Rs.10/- each	Rs.2.500 Millions
	Total		Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 Millions
250000	Preference shares	Rs.10/- each	Rs.2.500 Millions
	Total		Rs.10.000 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	10.000	10.000	10.000
(b) Reserves & Surplus	51.122	32.899	20.955
(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)	61.122	42.899	30.955
(3) Non-Current Liabilities
(a) long-term borrowings	106.902	53.843	53.507
(b) Deferred tax liabilities (Net)	3.071	2.697	3.306
(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)	109.973	56.540	56.813
(4) Current Liabilities
(a) Short term borrowings	24.436	37.416	10.817
(b) Trade payables	280.614	142.800	91.150
(c) Other current liabilities	63.963	32.949	31.511
(d) Short-term provisions	8.011	6.656	2.996
Total Current Liabilities (4)	377.024	219.821	136.474
TOTAL	548.119	319.260	224.242
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	142.016	73.969	58.878
(ii) Intangible Assets	2.825	1.437	1.022
(iii) Capital work-in-progress	15.719	0.849	3.080
(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	148.031	89.536	55.938
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	308.591	165.791	118.918
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	208.840	99.616	74.366
(c) Trade receivables	8.644	32.053	12.760
(d) Cash and cash equivalents	7.504	7.591	12.515
(e) Short-term loans and advances	13.272	13.304	5.383
(f) Other current assets	1.268	0.905	0.300
Total Current Assets	239.528	153.469	105.324
TOTAL	548.119	319.260	224.242

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT/ (LOSS) BEFORE TAX		26.873	18.660	15.843
Less	TAX		8.650	6.716	4.084
	PROFIT/ (LOSS) AFTER TAX		18.223	11.944	11.759
	FOB VALUE OF EXPORT		22.674	24.185	20.576
	Earnings / (Loss) Per Share (Rs.)		24.30	15.93	15.68

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	5.05	5.86	7.16
Return on Investment (ROI) (PBT/Networth)		0.44	0.43	0.51
Debt Equity Ratio (Total Debt /Networth)		2.15	2.13	2.08
Current Ratio (Current Asset/Current Liability)		0.64	0.70	0.77

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	10.000	10.000	10.000
Reserves & Surplus	20.955	32.899	51.122
Net worth	30.955	42.899	61.122
long-term borrowings	53.507	53.843	106.902
Short term borrowings	10.817	37.416	24.436
Total borrowings	64.324	91.259	131.338
Debt/Equity ratio	2.078	2.127	2.149

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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	No
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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
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	No

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Millions	31.03.2013 Rs. In Millions
Long Term Borrowings
From Relatives – Directors	2.660	5.840
Total	2.660	5.840

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10113080	06/06/2008	30,000,000.00	ICICI Bank Limited	Landmarkrace Cource Circle, Alkapuri, Baroda, Gujarat - 390015, INDIA	A41529678

FIXED ASSETS:

· Air Conditions

· Computer

· Electric Fittings

· Furniture and Fixture

· Fax Machine and Telephone

· Office equipment

· Security Controlling Equipment

· Building (Fixture)

· Motor Car

· Mobile

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.61.46
UK Pound	1	Rs.92.77
Euro	1	Rs.69.03

INFORMATION DETAILS

Analysis Done by :	SUB
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.