MIRA INFORM REPORT

Report No. :	346433
Report Date :	28.10.2015

IDENTIFICATION DETAILS

Name :	SRV SYNTHETICS
Registered Office :	401, Symphony, Nhru Road, Vile Parle (East), Mumbai – 400057, Maharashtra
Tel. No.:	91-22-26160769
Country :	India
Financials (as on) :	31.03.2015
Year of Establishment:	2009
Capital Investment / Paid-up Capital :	Rs.246.074 Million
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer and Exporter of Textured Yarn.
No. of Employees :	43 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject was established in the year 2009 as a partnership concern, engaged in manufacturing and exporting of textured yarn. It has satisfactory track record. Mr. Dharmendra Patil, Accountant has provided all information of the subject to us. It is a part of SRV Group companies, namely, SRV Synthetics, SRV Polytex Private Limited and Suraj Industries, which is operated under similar business and management control shared by a single set of promoters. Rating takes into consideration concern’s comfortable financial risk profile supported by strong net worth base, good debt protection metrics along with rich experience of the promoters and established market presence of the group in the coarser segment of polyester yarn. Trade relations are fair. Business is active. Payments are reported to be usually correct. In view of aforesaid, the concern can be considered for business dealings at usual trade terms and conditions.

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	ICRA
Rating	Long-term Bank Facilities = BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	May 04, 2015

Rating Agency Name	ICRA
Rating	Short-term Bank Facilities = A2+
Rating Explanation	Strong degree of safety and low credit risk.
Date	May 04, 2015

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

Name :	Mr. Dharmendra Patil
Designation :	Accountant
Contact No.:	91-22-26160769
Date :	26.10.2015

LOCATIONS

Registered Office :	401, Symphony, Nhru Road, Vile Parle (East), Mumbai – 400057, Maharashtra, India
Tel. No.:	91-22-26160769
Mobile No.:	91-9377015050 (Mr. Pankaj)
Fax No.:	Not Available
E-Mail :	ho.srvsuray@yahoo.com
Location :	Owned
Factory :	259/12, Parshwanath Ind. Estate, Vill Dadra, Silvassa, Dadara Nagar Haveli – 396230, India

PARTNERS

Name :	SRV Politex Private Limited
Designation :	Partner
Name :	Mr. Sudhir Shah
Designation :	Partner
Name :	Mr. Jinendra Shah
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Dharmendra Patil
Designation :	Accountant

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Textured Yarn.
Products :	Textured Yarn
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :
Products :	Textured Yarn
Countries :	· Thailand · China
Imports :	Not Divulged
Terms :
Selling :	Cheque Credit (30 Days)
Purchasing :	Cheque Credit (30 Days)

GENERAL INFORMATION

Suppliers :

Reference :	Reliance Industries Limited
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 :	Mangalam Yarn Agencies
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 :

43 (Approximately)

Bankers :

Bank Name	Oriental Bank of Commerce
Branch	Kalba Devi.
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)	TL = Rs. 100.000 Million Cash Credit = Rs. 115.000 Million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Auditors :

Name :

Minesh Boldi and Company

Chartered Accountants

Address :

Bombay

Memberships :

Not Available

Collaborators :

Not Available

Sister Concern:

· Suraj Industries

· SRV Politex Private Limited

CAPITAL STRUCTURE

Capital Investment :
Owned :	Rs. 246.074 Million
Borrowed :	--
Total :	Rs. 246.074 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		246.074	185.416	257.707
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		246.074	185.416	257.707
LOAN FUNDS
1] Secured Loans		215.198	201.305	119.449
2] Unsecured Loans		1.227	1.737	1.227
TOTAL BORROWING		246.074	185.416	120.676
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		462.499	388.458	378.383
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		206.427	158.427	176.248
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	116.063	84.818	62.126
	Sundry Debtors	106.212	94.235	89.120
	Cash & Bank Balances	2.424	23.699	20.031
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	101.889	79.545	48.897
Total Current Assets		326.588	282.297	220.174
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities	70.516	52.266	18.039
	Provisions	0.000	0.000	0.000
Total Current Liabilities		70.516	52.266	18.039
Net Current Assets		256.072	230.031	202.135
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		462.499	388.458	378.383

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Turnover	1835.423	1361.356	1287.515
	Other Income	49.191	83.286	73.752
	Variation in Stock	(0.324)	8.067	(9.130)
	TOTAL (A)	1884.290	1452.709	1352.137
Less	EXPENSES
	Raw Materials Consumed	1618.127	1271.722	1184.825
	Manufacturing Expenses	149.146	94.875	88.960
	Administrative and Other expenses	39.434	23.900	24.157
	TOTAL (B)	1806.707	1390.497	1297.942
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	77.583	62.212	54.195
Less	FINANCIAL EXPENSES (D)	20.134	26.293	21.653
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	57.449	35.919	32.542
Less/ Add	DEPRECIATION/ AMORTISATION (F)	31.497	21.283	24.301
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	25.952	14.636	8.241
Less	TAX (H)	5.133	2.641	2.551
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	20.819	11.995	5.690
	Earnings / (Loss) Per Share (Rs.)	1.13	0.87	--

Expected Sales (2015-2016) : Rs.1800.000 Million

The above information has been parted by Mr. Dharmendra Patil (Accountant)

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.13	0.88	0.44
Operating Profit Margin (PBIDT/Sales)	(%)	4.23	4.57	4.21
Return on Total Assets (PBT/Total Assets}	(%)	4.87	3.32	2.08
Return on Investment (ROI) (PBT/Networth)		0.11	0.08	0.03
Debt Equity Ratio (Total Debt /Networth)		0.88	1.10	0.47
Current Ratio (Current Asset/Current Liability)		4.55	5.23	11.43

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	257.707	185.416	246.074
Reserves & Surplus	0.000	0.000	0.000
Net worth	257.707	185.416	246.074
long-term borrowings	119.449	201.305	215.198
Short term borrowings	1.227	1.737	1.227
Total borrowings	120.676	203.042	216.425
Debt/Equity ratio	0.468	1.095	0.880

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1287.515	1361.356	1835.423
		5.735	34.823

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1287.515	1361.356	1835.423
Profit	5.690	11.995	20.819
	0.44%	0.88%	1.13%

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	No
10	Date of Birth of Proprietor / Partners / Directors	No
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	Yes
20	Banking Details	Yes
21	Banking facility details	No
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	Yes
29	Profitability for last three years	No
30	Major shareholders, if available	No
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

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 records 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.64.96
UK Pound	1	Rs.99.54
Euro	1	Rs.71.64

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	HNA
Report Prepared by :	SUJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		48

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.