MIRA INFORM REPORT

Report Date :

11.07.2008

IDENTIFICATION DETAILS

Name :	KRISHNA TERINE PRIVATE LIMITED
Registered Office :	Krishna House, Agyari Mohalla, B/H World Trade Centre, Rustampura, Surat – 395 002, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	11.10.1988
Com. Reg. No.:	04-11350
CIN No.: [Company Identification No.]	U17119GJ1988PTC011350
TAN No.: [Tax Deduction & Collection Account No.]	SRTK00724D
PAN No.: [Permanent Account No.]	AABCK0205B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and exporter of sarees, dress materials, fashion fabrics and plain dyed items.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 150000
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Anurodh Somani
Designation :	Export Manager
Contact No.:	91-9825151100
Date :	01.07.2008

LOCATIONS

Registered Office / Factory :	Krishna House, Agyari Mohalla, B/H World Trade Centre, Rustampura, Surat – 395 002, Gujarat, India
Tel. No.:	91-261-2330089 / 2327819 / 2356598
Mobile No.:	91-9825151100 / 9374713162
Fax No.:	91-261-2329176
E-Mail :	info@krishnasurat.com krishnaterine@drdcs.net
Website :	www.krishnasurat.com
Location :	Owned

DIRECTORS

Name :	Mr. Dineshkumar Bhaiya
Designation :	Director
Address :	Vijay Apartment, Ground Floor, Opp. Umra Police Station, Modi Road, Surat, Gujarat, India
Date of Birth/Age :	13.07.1957
Qualification :	Graduate
Date of Appointment :	18.12.1990
Name :	Mr. Bhagirath Bhaiya
Designation :	Director
Address :	1, Ground Floor, Royal Villa Apartment, Ghod-Dod Road, Surat, Gujarat, India
Date of Birth/Age :	07.05.1931
Qualification :	Graduate
Date of Appointment :	10.05.1993
Name :	Mr. Srigopal Bhaiya
Designation :	Director
Address :	1, Ground Floor, Royal Villa Apartment, Ghod-Dod Road, Surat, Gujarat, India
Date of Birth/Age :	20.04.1960
Qualification :	Graduate
Date of Appointment :	10.05.1993
Name :	Mr. Vasantkumar Bhaiya
Designation :	Director
Address :	Vijay Apartment, Ground Floor, Opp. Umra Police Station, Modi Road, Surat, Gujarat, India
Date of Birth/Age :	17.09.1965
Qualification :	Graduate
Date of Appointment :	10.05.1993
Name :	Mrs. Ashadevi Dineshkumar Bhaiya
Designation :	Director
Address :	Vijay Apartment, Ground Floor, Opp. Umra Police Station, Modi Road, Surat, Gujarat, India
Date of Birth/Age :	22.01.1958
Qualification :	Graduate
Date of Appointment :	10.05.1993

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 31.03.2007)

Names of Shareholders	No. of Shares
Bhagirath D Bhaiya	916
Bhagirath V Bhaiya	796
Paramsukh Bhagirath Bhaiya	1685
Bhagirath Srigopal Bhaiya	250
Bhagirath Bhaiya, HUF	500
Dineshkumar Bhaiya, HUF	605
Srigopal Bhaiya, HUF	1120
Vasantkumar Bhaiya, HUF	1000
Bhagirath S Bhaiya, HUF	450
Prabhadevi Vasantkumar Bhaiya	150
Others / Relatives of Directors	809
Total	8281

Equity shares Breakup (percentage of total equity)

(As on 29.09.2007)

Category	Percentage
Bodies corporate	2.00
Directors or relatives of directors	53.00
Other top fifty (50) shareholders	45.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and exporter of sarees, dress materials, fashion fabrics and plain dyed items.
Products :	· Sarees · Salwar Kameez · Dress Material · All Over Fabric · Plain Dyed Fabric
Exports :
Products :	· Sarees · Salwar Kameez · Dress Material · All Over Fabric · Plain Dyed Fabric
Countries :	· UK · Afghanistan · UAE
Terms :
Purchasing :	L/C, Cash

GENERAL INFORMATION

Suppliers :	· Chaitali Textiles · Shree Vishnu Silk Mills · Darshak Textiles · Shree Yoganand Textiles Private Limited · Uttam Fabrics · Motiram Khushaldas Bandria · Gee Pee Textiles · Krishna Terine Prints Private Limited
Customers :	· Chandana Bros Shopping Mall · Hindustan Textiles · Arham Creations Private Limited · Indian Silk House · Kalyan Silks Trichur Private Limited · LNB Textiles Private Limited · Rampuriya Vanijya Private Limited · G M Style Private Limited · Joy Alykas Traders India Private Limited
No. of Employees :	835 (In Office 85 and In Factory 750)
Bankers :	· Tamilnad Mercantile Bank Bombay Market Branch, Surat, Gujarat, India · Standard Chartered Bank · · ICICI Bank Limited

Banking Relations :	Good
Auditors :
Name :	S. K. Rathi and Associates Chartered Accountants
Address :	208, M. G. Market, Ring Road, Surat – 395 002, Gujarat, India
Associates/Subsidiaries :	Krishna Terine Prints Private Limited Address : Plot No. 213, Kadodara Tal Palsana, Surat, Gujarat, India Line of Business : Manufacturer Varsha International Address : Krishna House, B/H W.T.C., Ring Road, Surat, Gujarat, India Line of Business : Trader

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.1000/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8281	Equity Shares	Rs.1000/- each	Rs.8.281 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		8.281	8.281	8.260
2] Share Application Money		0.000	0.000	0.020
3] Reserves & Surplus		20.915	12.209	8.137
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		29.196	20.490	16.417
LOAN FUNDS
1] Secured Loans		8.341	2.639	0.157
2] Unsecured Loans		32.471	29.992	37.514
TOTAL BORROWING		40.812	32.631	37.671
DEFERRED TAX LIABILITIES		0.479	0.476	0.420
TOTAL		70.487	53.597	54.508
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.196	17.015	17.718
Capital work-in-progress		0.000	0.000	0.161
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	31.118	16.645	20.391
	Sundry Debtors	63.983	26.854	18.127
	Cash & Bank Balances	0.269	0.022	0.670
	Other Current Assets	2.505	1.920	0.684
	Loans & Advances	4.551	2.122	2.645
Total Current Assets		102.426	47.563	42.517
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	43.179	8.744	5.143
	Provisions	4.956	2.237	0.745
Total Current Liabilities		48.135	10.981	5.888
Net Current Assets		54.291	36.582	36.629
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		70.487	53.597	54.508

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		304.636	152.490	128.689
Other Income		6.078	3.403	1.318
Total Income		310.714	155.893	130.007
Profit/(Loss) Before Tax		13.783	6.652	2.274
Provision for Taxation		5.077	2.580	0.802
Profit/(Loss) After Tax		8.706	4.072	1.472
Expenditures :
	Cost of Goods Sold	276.110	133.893	110.362
	Selling and Distribution Expenses	4.391	1.404	1.103
	Administrative Expenses	11.233	7.922	8.512
	Financial Charges	4.314	5.159	6.877
	Depreciation & Amortization	0.883	0.863	0.879
Total Expenditure		296.931	149.241	127.733

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.80	2.61	1.13
Net Profit Margin (PBT/Sales)	(%)	4.52	4.36	1.77
Return on Total Assets (PBT/Total Assets}	(%)	11.62	10.30	3.78
Return on Investment (ROI) (PBT/Networth)		0.47	0.32	0.14
Debt Equity Ratio (Total Liability/Networth)		3.05	2.13	2.65
Current Ratio (Current Asset/Current Liability)		2.13	4.33	7.22

LOCAL AGENCY FURTHER INFORMATION

Form No. 8

Name of the company	KRISHNA TERINE PRIVATE LIMITED
Presented By	Mr. Dineshkumar Bhagirath Bhaiya, Director
1) Date and description of instrument creating the change	Guarantee agreement dated 11.12.2002.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.6.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Corporate guarantee to the credit limit of Cash Credit (stock) Rs.5.000 millions sanctioned to M/s. Varsha International.
4) Gist of the terms and conditions and extent and operation of the charge.	-
5) Name and Address and description of the person entitled to the charge.	Tamilnad Mercantile Bank Bombay Market Branch, Surat, Gujarat, India
6) Date and brief description of instrument modifying the charge	Guarantee agreement dated 29.09.2005
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Corporate guarantee to M/s. varsha International for seasonal Cash credit (Stock) Rs.2.500 millions.

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 records 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.43.16
UK Pound	1	Rs.85.51
Euro	1	Rs.67.95

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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
TOTAL		54

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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