MIRA INFORM REPORT

Report Date :

11.11.2008

IDENTIFICATION DETAILS

Name :	RISHRAJ FILAMENTS LIMITED
Registered Office :	12A, New Sun Mill Compound, Lower Parel, Mumbai – 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	20.10.1994
Com. Reg. No.:	11-82206
CIN No.: [Company Identification No.]	U74999MH1994PLC082206
TAN No.: [Tax Deduction & Collection Account No.]	MUMR07646C
Legal Form :	A closely held public limited liability company.
Line of Business :	Manufacturer, Supplier and Exporter of Polyester Staple Fibres and Flakes.

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 290000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experience and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	12A, New Sun Mill Compound, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-40604444 / 24954377 / 24928015
Fax No.:	91-22-40604445 / 24954376
E-Mail :	info@rishrajfilaments.com
Website :	http://www.rishrajfilaments.com
Area :	5000 sq. ft.
Location :	Owned
Factory :	Survey No. 45, 46 & 47, Savroli – Kharpada Road, Kumbhivali, Khalapur, Raigad
Area :	About 17 Acres
Location :	Owned

DIRECTORS

Name :	Mr. Rajeev P. Chitkara
Designation :	Director
Address :	12, Shanti Kutir Marine Drive, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	26.06.1952
Qualification :	Graduate
Date of Appointment :	20.10.1994
Name :	Mr. Rajhav R. Chitkara
Designation :	Director
Address :	12, Shanti Kutir Marine Drive, Mumbai – 400020, Maharashtra, India
Date of Birth/Age :	18.04.1981
Qualification :	Graduate
Date of Appointment :	19.10.2002
Name :	Mr. Y. R. Shah
Designation :	Director
Address :	1-A, Dhanratan Apartment, Opp. Navarang Talkies, J. P. Road, Andheri (East), Mumbai – 400 053, Maharashtra, India
Date of Birth/Age :	31.08.1942
Date of Appointment :	01.04.2003
Name :	Mrs. Shilpi Chitkara
Designation :	Director
Address :	12, Shanti Kutir Marine Drive, Mumbai – 400020, Maharashtra, India
E-Mail :	rishiraj@bom7.vsnl.net.in
Date of Appointment :	01.04.2000

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Rajeev P. Chitkara	1081632
Mrs. Shilpi Chitkara	115010
Mr. Arun Kumar Chitkara	10
Mrs. Padma Chitkara	10
Mrs. Jyotika Chitkara	10
Mr. Rajhav R. Chitkara	1047112
Mrs. Saachi Chitkara	206200
Rishraj Trading and Investment	628010
Rajeev Chitkara – HUF	732476
S.P. Surgicals	350000
Shilpi Chitkara	114990
Total	4275460

Equity share breakup (percentage of total equity)

Category	Percentage
Bodies corporate (not mentioned above)	23.51
Directors or relatives of directors	76.49
Total	100.000

BUSINESS DETAILS

Line of Business :	Manufacturer, Supplier and Exporter of Polyester Staple Fibres and Flakes.
Terms :
Selling :	L/C and Credit [30-60-90 days]
Export:	USA China Italy Others European Country

PRODUCTION STATUS

Particulars	Unit	Installed Capacity
Polyester Staple Fibre	MT/A	3600
Pet Flakers	MT/A	14000
Polyester Sliver	MT/A	2400

GENERAL INFORMATION

Suppliers :

• David C. Poole Company Inc.
• Adani Global Pte. Limited

Customers :

Wholesalers and End Users

• David C. Poole Company Inc.
• William Barnet and Sons

No. of Employees :

119

Bankers :

Indusind Bank, Lamington Road, Mumbai

India Overseas Bank, Worli Branch, Kakad Chembers, DR. Anne Besant Road, Mumbai – 400 018, Maharashtra, India

Facilities :

Particular	31.03.2007 (Rs. In Millions)
Secured Loan
Term Loan	0.000
Cash Credit	31.544
Packing Credit Loan	15.030
ICICI Bank	0.322
Total	46.896
Unsecured Loan
Share Holders	0.000
Corporate	3.640
Others	3.109
Total	6.749

Banking Relations :	--
Auditors :
Name 1 :	R. K. Bohtra and Company Chartered Accountants
Name 2 :	D.T. Patel and Company Chartered Accountants
Address :	Gon. A.K. Vaidya Marg Malad (East), Mumbai – 400 097, Maharashtra, India
Name 3 :	S. M. Bhat and Associates Chartered Accountants
Address :	338, Dheeraj Heritage, Opp. To Milan Subway Junction, S. V.Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India
Tel. No.:	91-22-23524529
Fax No.:	91-22-23511079
Associates/Subsidiaries :	Shankardas Prannath Surgical Private Limited Address: 12A, New Sun Mill Compound, Lower Parel, Mumbai – 400013, Maharashtra, India Activity: Waste of Polyester Fibre Rishraj Trading and Investment Private Limited Address: 12A, New Sun Mill Compound, Lower Parel, Mumbai – 400013, Maharashtra, India Activity: Finance and Investment

CAPITAL STRUCTURE

(As On 31.2007)

Authorised Capital :

No. of Shares	Type	Value	Amount
45,00,000	Equity Shares	Rs.10/- each	Rs.45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
41,60,470	Equity Shares	Rs.10/- each	Rs.41.605 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		41.605	41.605	13.700
2] Share Application Money		4.906	0.000	27.905
3] Reserves & Surplus		12.678	3.998	2.756
4] (Accumulated Losses)		0.000	0.000	(7.993)
NETWORTH		59.189	45.603	36.368
LOAN FUNDS
1] Secured Loans		46.897	18.709	18.440
2] Unsecured Loans		6.750	6.316	1.699
TOTAL BORROWING		53.647	25.025	20.139
DEFERRED TAX LIABILITIES		0.000	0.000	3.640
TOTAL		112.836	70.628	60.147
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.629	25.311	22.535
Capital work-in-progress		0.000	0.000	5.368
INVESTMENT		0.500	0.500	0.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	60.301	60.597	37.981
	Sundry Debtors	8.605	5.900	1.054
	Cash & Bank Balances	2.860	4.232	2.489
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	36.092	5.579	19.084
Total Current Assets		107.858	76.308	60.608
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	16.630	30.058	31.846
	Provisions	2.521	1.433	0.658
Total Current Liabilities		19.151	31.491	32.504
Net Current Assets		88.707	44.817	28.104
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		112.836	70.628	60.147

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		221.476	191.390	170.415
Other Income		14.655	2.278	10.830
Total Income		236.131	193.668	181.245
Profit/(Loss) Before Tax		9.841	9.633	5.206
Provision for Taxation		1.100	0.800	(2.344)
Profit/(Loss) After Tax		8.741	8.833	7.550
Earnings in Foreign Currency :
	Export Earnings	183.605	N.A	N.A
Expenditures :
	Raw Material Consumed	159.964	129.021	119.919
	Consumption of stores and spares parts	4.873	5.714	5.647
	Increase/(Decrease) in Finished Goods	0.550	(0.170)	3.770
	Salaries, Wages, Bonus, etc.	4.293	3.582	2.774
	Payment to Auditors	0.028	0.020	0.019
	Interest	4.433	3.533	3.171
	Insurance Expenses	0.645	0.744	0.747
	Power & Fuel	10.078	9.989	11.378
	Depreciation & Amortization	3.089	3.227	33.012
	Other Expenditure	39.435	28.034	(4.398)
Total Expenditure		226.290	184.034	176.139

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	3.70	4.56	4.16
Net Profit Margin (PBT/Sales)	(%)	4.44	5.03	2.87
Return on Total Assets (PBT/Total Assets}	(%)	7.48	9.47	6.26
Return on Investment (ROI) (PBT/Networth)		0.16	0.21	0.14
Debt Equity Ratio (Total Liability/Networth)		1.22	1.23	1.44
Current Ratio (Current Asset/Current Liability)		5.63	2.42	1.86

LOCAL AGENCY FURTHER INFORMATION

Operations:

The company has established to the U.S.A, China, Italy and Other European Countries as its major market, where in they had established customers, who had to purchase their entire production capacity.

The company have achieved growth in revenue Rs.235.836 Millions compared to previous year Rs.216.282 Millions and profit Rs.9.841 Millions this was on account of prudential export in U.S.A, China and Italy and other European Countries despite of good export they have also substantially increase their production capacity in Polyester Staple Fiber in export quality.

Form 8

Name of the company	RISHRAJ FILAMENTS LIMITED
Presented By	The Greater Bombay Co-operative Bank Limited
1) Date and description of instrument creating the change	Date: 06.10.2000 Deed of Hypothecation
2) Amount secured by the charge/amount owing on the securities of charge	Working Capital Facility Rs.18.500 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	The whole of the Current Assets of the Borrower namely, stocks of Raw Material, Stock in process, Semi finished and Finished Goods etc. more particularly described in the Annexure herto
4) Gist of the terms and conditions and extent and operation of the charge.	The Company agrees to pay the interest @16% p.a. payable quarterly and in default shall pay a penal interest@2% above the normal rate in default of payment
5) Name and Address and description of the person entitled to the charge.	The Greater Bombay Co-opearative Bank Limited, GBCB House, 89, Bhuleshwar, Mumbai – 400 002
6) Date and brief description of instrument modifying the charge	Dated: 14.06.2005 Deed of Hypothecation of Plant and Machinery
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.	Past of Modification: The original charge created on 06.10.2000 for Rs.18.500 Millions was modified as under: On 07.12.2000, thereby created mortgage in respect of Company’s immovable properties as security. On 22.04.2002 for Rs.18.000 Millions On 15.03.2004 for Rs.21.500 Millions On 08.06.2005 for Rs.55.244 Millions On 10.06.2005, there by created mortgage in respect of Company’s immovable properties as security for due repayment of the aggregate limits up to Rs.55.244 Millions Present Modification: The Bank having at he request of the Company has created a further security as and by way of first charge on the whole of the movable properties of the Company including its movable plant and machinery, machinery spares tools and accessories and other movable, both present i.e Existing Plant Machinery located at Survey No.45, H. No.1/1 ½ and 2, Survey no.46 H. No.1(1), and Survey No.47 H. No.1/1 (B) and 1/1B (B), Kumbhavli, Sawroli and Plant and Machinery to be purchased and future (save and except book debts) whether installed or not and whether now lying loose or in case or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of this present be brought in to or upon or be stored or be in or about the Company’s factories, premises and godowns or wherever else the same may be or by held by any party to the order or disposition of the Company or in wheresoever in the possession of the Company and either by way of substitution or addition, for repayment of liabilities due and payable under the various facilities aggregating Rs.55.244 Millions. All other terms and conditions shall remain the same. Save and except creation of above charge, there is, therefore, no charge in the amount of charge which stands secured at Rs.55.244 Millions

This form is for	Creation of charge
Charge identification number of the modified
Corporate identity number of the company	U74999MH1994PLC082206
Name of the company	RISHRAJ FILAMENTS LIMITED
Address of the registered office or of the principal place of business in India of the company	12A, New Sun Mill Compound, Lower Parel (West), Mumbai – 400 013, Maharashtra, India
Type of charge	Immovable Property
Particular of charge holder	India Overseas Bank, Worli Branch, Kakad Chembers, DR. Anne Besant Road, Mumbai – 400 018, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Memorandum of Deposit of Title Deed
Date of instrument Creating the charge	31.01.2007
Amount secured by the charge	Rs.277.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit/Term Loan: BPLR+1% p.a Bills Purchase/Letter of Cedit: Commission as per Bank rules Terms of Repayment Term Loan-In 72 EMIs with an initial moratorium of 12 months. Cash Credit-Repayable on demand Margin Term Loan: 41% Stock: 25% Book Debts: 50% LC Bills Purchased/ Discounted: Nil NLC Bills Purchased/ Discounted:100% Letter of Credit: 25% Extent and Operation of the charge The charge to operate as security for the credit limit of Rs.277.500 Millions together with interests, additional interests, additional interests, costs, charges, expenses and all other moneys payable by the Company to the Bank from time to time in terms of sanction. Others Facility: Term Loan :Rs.110.000 Millions Cash Credit :Rs.97.500 Millions Bills Purchased/Discounted:Rs.35.000 Millions Letter of Credit :Rs.35.000 Millions
Short particulars of the property charged	Non – Agricultural lands bearing- 1. Survey No-46, H. No.2, Survey No.44, H. No.2, Survey No.52, H. No.1/1 (B) and 1/1B(3) admeasuring 0-12-0 Hectors, 0-24-7 Hectors, 0-15-0 Hectors and 6-70-1 Hectors respectively, situate, lying and being at Village Kumbhivali, Panchayat Samiti Khalapur, Sub-Registrar of Assurance Karjat, with in the registration District Raigad.

Fixed Assets

• Land (Freehold)
• Factory Building
• Plant and Machinery
• Furniture and Fixture
• Vehicles
• Computer
• Factory Equipment

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] 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.47.59
UK Pound	1	Rs.74.55
Euro	1	Rs.60.57

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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
TOTAL		45

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