MIRA INFORM REPORT

Report No. :	311387
Report Date :	10.03.2015

IDENTIFICATION DETAILS

Name :	VALLABH TEXTILES COMPANY LIMITED (w.e.f. 08.05.2007)

Formerly Known As :	VALLABH GARMENT COMPANY LIMITED

Registered Office :	G.T. Road, Village Pawa, Sahnewal, Ludhiana – 141120, Punjab

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	18.06.2002

Com. Reg. No.:	16-025217

Capital Investment / Paid-up Capital :	Rs.221.504 Million

CIN No.: [Company Identification No.]	U18101PB2002PLC025217

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	AABCV5834H

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer and exporter of terry towels and bath robes.

No. of Employees :	Information declined by the management

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

Maximum Credit Limit :	USD 510000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track record. The rating is constrained on account of some accumulated losses incurred by the company. 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 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

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	CRISIL
Rating	Long term rating=BB
Rating Explanation	Moderate risk of default.
Date	27.10.2014

Rating Agency Name	CRISIL
Rating	Short term rating=A4+
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	27.10.2014

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 :	Mr. Umesh Kumar
Designation :	Manager
Contact No.:	91-9646012660
Date :	10.03.2015

LOCATIONS

Registered Office/ Factory :	G.T. Road, Village Pawa, Sahnewal, Ludhiana – 141120, Punjab, India
Tel. No.:	91-161-2511412
Mobile No.:	91-9646012660 (Mr. Umesh Kumar)
Fax No.:	91-161-2511414
E-Mail :	cs.vil@vallabhgroup.com
Website :	www.vallabhgroup.com

DIRECTORS

AS ON 29.09.2014

Name :

Mr. Vikram Jain

Designation :

Managing Director

Address :

27-A, Rakh Bagh, The Mall, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

01.07.1976

Date of Appointment :

28.08.2013

DIN No.:

00755547

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	L74899DL1984PLC019492	VARDHMAN INDUSTRIES LIMITED	Director	01/04/2011	01/05/2002	-	Active	NO
2	U18101PB2002PLC025217	VALLABH TEXTILES COMPANY LIMITED	Managing director	28/08/2013	18/06/2002	-	Active	NO
3	U51909PB2007PTC031426	AVP MOTOR WORKS PRIVATE LIMITED	Director	16/10/2007	16/10/2007	-	Strike off	NO
4	U67190PB1991PLC011129	VALLABH STEEL EAST LIMITED	Director	20/09/2008	16/05/2008	23/02/2015	Active	NO
5	U17210DL2011PTC223944	Vallabh Arr Ess Techtex Private Limited	Director	19/08/2011	19/08/2011	-	Active	NO
6	U17290PB2011PTC035587	CHECKMATE VALLABH GEOSYNTHETICS PRIVATE LIMITED	Director	25/10/2011	25/10/2011	-	Active	NO

Name :

Mr. Suresh Gupta

Designation :

Director

Address :

177-C, Rishi Nagar, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

16.10.1965

Date of Appointment :

29.09.2014

DIN No.:

00027192

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	L74899DL1984PLC019492	VARDHMAN INDUSTRIES LIMITED	Director	30/09/2014	31/03/2006	01/12/2014	Active	NO
2	U18101PB2002PLC025217	VALLABH TEXTILES COMPANY LIMITED	Director	29/09/2014	11/11/2009	-	Active	NO
3	U17290PB2011PTC035587	CHECKMATE VALLABH GEOSYNTHETICS PRIVATE LIMITED	Director	25/10/2011	25/10/2011	-	Active	NO
4	U67190PB1991PLC011129	VALLABH STEEL EAST LIMITED	Additional director	23/02/2015	23/02/2015	-	Active	NO

Name :

Mr. Kailash Lalpuria

Designation :

Director

Address :

1001, Satsang Tower, Upper Govind Nagar, Malad- East, Mumbai - 400097, Maharashtra, India

Date of Birth/Age :

02.07.1959

Date of Appointment :

29.09.2014

DIN No.:

00059758

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	U51909MH2004PTC146388	KARROT OVERSEAS PRIVATE LIMITED	Director	18/05/2004	18/05/2004	02/02/2012	Active	NO
2	U17111MH1982PLC118017	PRATIBHA SYNTEX LIMITED	Director	31/08/2005	27/12/2004	03/04/2007	Active	NO
3	U51109MH2006PTC159287	FIFTH AVENUE HOME FASHIONS PRIVATE LIMITED	Director	27/01/2006	27/01/2006	-	Active	NO
4	L72200PN1988PLC068972	INDO COUNT INDUSTRIES LIMITED	Whole-time director	01/01/2014	11/11/2010	-	Active	NO
5	U18101PB2002PLC025217	VALLABH TEXTILES COMPANY LIMITED	Director	29/09/2014	27/12/2010	-	Active	NO

Name :

Mr. Kapil Kumar Jain

Designation :

Director

Address :

27-A, Rakh Bagh, The Mall, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

12.08.1950

Date of Appointment :

01.04.2011

DIN No.:

00755228

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	U74899DL1980PTC011053	ADHINATH INVESTMENTS PRIVATE LIMITED	Director	17/11/1980	17/11/1980	-	Active	NO
2	L74899DL1984PLC019492	VARDHMAN INDUSTRIES LIMITED	Director	01/04/2011	05/12/1984	-	Active	NO
3	L27109PB1980PLC004327	VALLABH STEELS LIMITED	Managing director	28/08/2014	15/03/1992	-	Active	NO
4	U18101PB2002PLC025217	VALLABH TEXTILES COMPANY LIMITED	Director	01/04/2011	18/06/2002	-	Active	NO
5	U67190PB1991PLC011129	VALLABH STEEL EAST LIMITED	Director	20/09/2008	06/10/2007	23/02/2015	Active	NO
6	U28112DL1995PTC204971	JSW VALLABH TINPLATE PRIVATE LIMITED	Director	07/11/2009	12/05/2008	12/06/2014	Active	NO
7	U25200PB2010PTC033924	Vallabh Polyvin Private Limited	Director	13/05/2010	13/05/2010	21/07/2014	Active	NO

Name :

Mr. Rahul Jain

Designation :

Director

Address :

27-A, Rakh Bagh, The Mall, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

04.10.1974

Date of Appointment :

18.06.2002

DIN No.:

00755312

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	L27109PB1980PLC004327	VALLABH STEELS LIMITED	Director	01/04/2011	01/04/1996	-	Active	NO
2	L74899DL1984PLC019492	VARDHMAN INDUSTRIES LIMITED	Managing director	28/08/2011	20/07/1998	-	Active	NO
3	U18101PB2002PLC025217	VALLABH TEXTILES COMPANY LIMITED	Director	18/06/2002	18/06/2002	-	Active	NO
4	U67190PB1991PLC011129	VALLABH STEEL EAST LIMITED	Director	20/09/2008	27/02/2008	-	Active	NO
5	U28112DL1995PTC204971	JSW VALLABH TINPLATE PRIVATE LIMITED	Managing director	01/04/2014	02/05/2008	-	Active	NO

Name :

Mr. Sunil Kumar Sharma

Designation :

Director

Address :

H. No. 127, Janak Puri, Saharanpur - 247001, Uttar Pradesh, India

Date of Birth/Age :

21.05.1965

Date of Appointment :

29.09.2014

DIN No.:

00756508

Other Directorship:

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

L74899DL1983PLC016526

ASSOCIATED LEASING LIMITED

Director

12/08/2014

12/07/1993

Active

U18101PB2002PLC025217

VALLABH TEXTILES COMPANY LIMITED

Director

29/09/2014

30/11/2009

Active

KEY EXECUTIVES

Name :	Mr. Umesh Kumar
Designation :	Manager

MAJOR SHAREHOLDERS

AS ON 29.09.2014

Names of Shareholders		No. of Shares
Kapil Kumar Jain		1545000
Lata Jain		922900
Rahul Jain		645000
Vikram Jain		1497100
Megha Jain		1300000
Zarqa Jain		1420000
Shweta Jain		100000
Kapil Kumar & Sons HUF		1120000
Rahul Jain and Sons HUF		900000
Vikram Jain & Sons HUF		550000
Vardhman Industries Limited		4250000
Vallabh Steels Limited		4649600
Hind Leasing and Finance Limited		4480000
Associated Leasing Limited		1030000
Ashinath Investments Private Limited		1850000
Vallabh Steel East Limited		330000
H. S. Deol		110000
Surinder Kaur Deol		200000
Ratan Pansari		100000
Surinder Kumar Soni		100
Pawan Kumar Maggu		100
Rajesh Kumar Sharma		100
Anil Kumar Surya		100

Total		27000000

Equity Share Break up (Percentage of Total Equity)

AS ON 29.09.2014

Category	Percentage
Bodies corporate	61.40
Directors or relatives of Directors	37.00
Other top fifty shareholders	1.60

Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and exporter of terry towels and bath robes.

Products :	Terry Towels Bath Robes

Brand Names :	Not Divulged

Agencies Held :	Not Divulged

Exports :
Products :	Terry Towels Bath Robes
Countries :	USA UK Australia European Countries

Imports :
Products :	Machinery Spare Parts
Countries :	Japan Italy Germany

Terms :
Selling :	Not Divulged

Purchasing :	Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Company Name :	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

Customers :

Company Name :	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 :

Not Divulged

Bankers :

Central Bank of India

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Term loans from banks	1103.619	1120.989
Term loans from others	2.343	55.308

Short Term Borrowings
Term loans from others	172.023	172.205
Working capital loans from banks	593.246	41.583

Total	1871.231	1390.085


Banking Relations :	--

Auditors :
Name :	Raj Gupta and Company Chartered Accountants
Address :	549/10, Sutlej Tower, Opposite Petrol Pump, Nearn Fountain Chowk, Civil Lines, Ludhiana – 141001, Punjab, India
PAN No.:	AADFR0095H

Membership :	--

Associates/Subsidiaries :	--

CAPITAL STRUCTURE

AS ON 29.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

27000000	Equity Shares	Rs.10/- each	Rs.270.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

27000000	Equity Shares	Rs.10/- each	Rs.270.000 Million

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount

25000000	Equity Shares	Rs.10/- each	Rs.250.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

22150400	Equity Shares	Rs.10/- each	Rs.221.504 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	221.504	199.904	181.004
(b) Reserves & Surplus	(44.095)	(70.915)	(69.956)
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	22.350	18.900
Total Shareholders’ Funds (1) + (2)	177.409	151.339	129.948

(3) Non-Current Liabilities
(a) long-term borrowings	1494.431	1559.264	1542.543
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	24.907	0.829	0.641
(d) long-term provisions	5.752	3.131	2.699
Total Non-current Liabilities (3)	1525.090	1563.224	1545.883

(4) Current Liabilities
(a) Short term borrowings	765.269	813.788	626.596
(b) Trade payables	272.321	260.704	345.890
(c) Other current liabilities	120.204	88.370	56.479
(d) Short-term provisions	15.267	4.756	4.852
Total Current Liabilities (4)	1173.061	1167.618	1033.817

TOTAL	2875.560	2882.181	2709.648

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1379.436	1481.573	1509.394
(ii) Intangible Assets	0.211	0.295	0.388
(iii) Capital work-in-progress	14.012	0.000	9.714
(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)	31.007	43.036	43.568
(d) Long-term Loan and Advances	7.257	7.257	6.913
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1431.923	1532.161	1569.977

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	813.046	814.087	682.196
(c) Trade receivables	452.045	402.467	355.360
(d) Cash and cash equivalents	29.954	28.672	36.709
(e) Short-term loans and advances	148.592	104.794	65.406
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	1443.637	1350.020	1139.671

TOTAL	2875.560	2882.181	2709.648

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2014	31.03.2013	31.03.2012
	SALES
		Income		2185.139	1857.152	1751.143
		Other Income		3.449	2.317	2.169
		TOTAL (A)		2188.588	1859.469	1753.312

Less	EXPENSES
		Cost of Materials Consumed		1138.305	976.259	1068.102
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		23.501	(14.050)	(13.472)
		Employee Benefits Expenses		156.498	139.566	119.805
		Other Expenses		492.920	450.756	366.819
		TOTAL (B)		1811.224	1552.531	1541.254

	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			377.364	306.938	212.058

Less	FINANCIAL EXPENSES (D)			217.079	225.219	181.842

	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			160.285	81.719	30.216

Less	DEPRECIATION/ AMORTISATION (F)			118.272	80.022	134.651

	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			42.013	1.697	(104.435)

Less	TAX (H)			12.665	0.856	(32.774)

	PROFIT/(LOSS) AFTER TAX (G-H) (I)			29.348	0.841	(71.661)

	EARNINGS IN FOREIGN CURRENCY ON FOB			1628.651	1371.415	1123.187

	IMPORTS
			Raw Materials	NA	10.724	9.369
			Stores & Spares	NA	6.027	4.679
			Capital Goods	NA	5.207	97.327
	TOTAL IMPORTS			NA	21.958	111.375

	Earnings Per Share (Rs.)			1.38	0.04	(4.42)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	1.34	0.05	(4.09)

Operating Profit Margin (PBDIT/Sales)	(%)	17.27	16.53	12.11

Return on Total Assets (PBT/Total Assets)	(%)	1.48	0.06	(3.93)

Return on Investment (ROI) (PBT/Networth)		0.24	0.01	(0.80)

Debt Equity Ratio (Total Debt /Networth)		12.74	15.68	16.69

Current Ratio (Current Asset/Current Liability)		1.23	1.16	1.10

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	181.004	199.904	221.504
Reserves & Surplus	(69.956)	(70.915)	(44.095)
Share Application money pending allotment	18.900	22.350	0.000
Net worth	129.948	151.339	177.409

long-term borrowings	1542.543	1559.264	1494.431
Short term borrowings	626.596	813.788	765.269
Total borrowings	2169.139	2373.052	2259.700
Debt/Equity ratio	16.692	15.680	12.737

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	1751.143	1857.152	2185.139
		6.054	17.661

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	1751.143	1857.152	2185.139
Profit	(71.661)	0.841	29.348
	(4.09%)	0.05%	1.34%

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	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	No
18]	Major customers	No
19]	Payments terms	No
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	Yes

PERFORMANCE REVIEW:

Profitability of subject has improved as compared to the previous year 2012-13. Subject has achieved gross turnover of Rs. 2188.600 Million as compared to Rs.1859.500 Million of previous year thus recording an increase of 17 %. The cash profit of subject has also improved from Rs. 81.700 Million in the previous year to Rs. 160.200 Million in the year. This has been possible due to better capacity utilization and better realization from export sales and stability in Cotton prices during the financial year 2013-14. The management is hopeful of achieving better results during the current financial year 2014-15.

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Deposits	388.469	382.966

Total	388.469	382.966

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10458550	29/10/2013	5,000,000.00	Reliance Capital Ltd	"H" Block 1st Floor, Dhirubhai Ambani Knowledge City, Koparkhairne, Navi Mumbai, Maharashtra - 400710, India	B88867460
2	10450157	17/09/2014 *	40,000,000.00	Central Bank of India	C-14, Phase-V, Focal Point, Ludhiana, Punjab - 141010, India	C25405598
3	10330601	27/05/2014 *	29,400,000.00	Canara Bank	Canara Bank, Bharat Nagar Chowk, Ludhiana, Punjab - 141001, India	C05559273
4	10296765	23/11/2013 *	150,000,000.00	Indian Overseas Bank	Kacheri Road, Ludhiana, Punjab - 141008, India	B92005370
5	10251502	26/09/2012 *	18,500,000.00	Punjab National Bank	Large Corporate Branch, Bhagwati Tower, R.K. Road, Ludhiana, Punjab - 141003, India	B59793638
6	10208980	26/09/2012 *	90,000,000.00	Punjab National Bank	Large Corporate Branch, Bhagwati Tower,, R.K. Road, Ludhiana, Punjab -141003, India	B59794446
7	10133223	15/10/2014 *	1,102,500,000.00	Punjab National Bank	Large Corporate Branch, Bhagwati Tower, R.K. Road, Ludhiana, Punjab - 141003, India	C31204936
8	10102509	21/09/2012 *	222,900,000.00	The Karur Vysya Bank Limited	Brar Complex, Dugri Road, Model Town, Ludhiana, Punjab - 141011, India	B59661389
9	10098685	30/10/2012 *	220,000,000.00	Punjab & Sind Bank	IFB, G.T. Road, Dholewal Chowk, Ludhiana, Punjab - 141003, India	B62327705
10	10081996	26/09/2012 *	667,500,000.00	Punjab National Bank	Large Corporate Branch, Bhagwati Tower,, R.K. Road, Ludhiana, Punjab - 141003, India	B59794032

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Computer

· Vehicles

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.62.62
UK Pound	1	Rs.94.39
Euro	1	Rs.67.96

INFORMATION DETAILS

Information Gathered by :	JML

Analysis Done by :	DIV

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	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--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	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		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.

MIRA INFORM REPORT

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