MIRA INFORM REPORT

Report Date :

16.04.2011

IDENTIFICATION DETAILS

Name :	COLOURTEX INDUSTRIES LIMITED (w.e.f. 20.03.2007)
Formerly Known As :	COLOURTEX INDUSTRIES PRIVATE LIMITED PANDESARA DYES AND INTERMEDIARIES PRIVATE LIMITED
Registered Office :	S No. 80, Bhestan, G.I.D.C., Pandesar, Surat – 394221, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.10.1989
Com. Reg. No.:	04-012922
CIN No.: [Company Identification No.]	U24231GJ1989PLC012922
TAN No.: [Tax Deduction & Collection Account No.]	SRTP00070A
PAN No.: [Permanent Account No.]	AABCP6359B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacture of Acid Dyes and Inter Mediates for Textile, Rubber, Plastic, Leather and Paint Industries.

RATING & COMMENTS

MIRA’s Rating :

A (58)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 9950000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION DECLINED BY

The management non cooperative

LOCATIONS

Registered Office :	S No. 80, Bhestan, G.I.D.C., Pandesar, Surat – 394 221, Gujarat, India
E-Mail :	colourtexind@drdcs.net mitul.naik@colourtex.co.in
Website :	www.colourtex.co.in
Head Quarter :	Survey No. 91, Opposite Navin Fluorine Industries, Bhestan – 395 023, Surat, Gujarat, India
Tel. No.:	91-261-2897800/ 801/ 802
Fax No.:	91-261-2892364/ 2890080
E-Mail :	info@colourtex.co.in
Factory 1:	Survey No. 74/79/80, Plot No. 158/15 to 19, 19, 438-1,2,3,4, Bhestan G.I.D.C., Pandesara, Surat – 394 221, Gujarat, India
Tel. No.:	91-261-2891428/ 2891429/ 2897800/ 801/ 802
Fax No.:	91-261-2890080/ 2892364
E-Mail :	colourtex@vsnl.com sales.surat@colourtex.co.in colourtexind@drdcs.net info@colourtex.co.in
Website :	www.colourtex.co.in
Area :	69000 Sq. mtrs. (Land area – 80000 Sq. mtrs.)
Location :	Owned
Factory 2 :	Kim, Karanj, Bhestan, District Surat, Gujarat, India
Factory 3 :	Survey No.75/50/80, Plot No.158, Bhestan, GIDC, Pandesara, Surat – 394 221, Gujarat, India
Overseas Office 1 :	Colourtex Inc. 8000 Corporate Lane Drive, Suite # 105, Charlotte, NC 28226, USA
Tel. No.:	+ 1 704 540 1528
Fax No.:	+ 1 704 540 1529
E-Mail :	ctxdyes@bellsouth.net
Overseas Office 2 :	Colourtex (Asia Pacific) Limited Unit 01, 11/F, Technology Plaza, 651, King's Road, North Point, Hong Kong.
Tel. No.:	+852 35273633
Fax No.:	+852 35273661
E-Mail :	richardchow@colourtexap.com
Branch Office :	Located at: · Ahmedabad · Bhilwara · Chandigarh · Chennai · Ghaziabad · Ichhalkaranji · Mumbai · Tirupur
Sales Office :	Located at: · Bangalore · Delhi · Gorakhpur · Hyderabad · Kanpur · Kolkata

DIRECTORS

As on 30.09.2010

Name :	Mr. Kanakkumar Jayantilal Jariwala
Designation :	Director (Procurement)
Address :	3, Etka Bunglows, Opposite Trinidhi Apartment, Ghad Dod Road, Surat – 395 001, Gujarat, India
Date of Birth/Age :	17.11.1973
Date of Appointment :	18.01.1994
Name :	Mr. Vishadkumar Jayantilal Jariwala
Designation :	Director (Finance Control)
Address :	4, Etka Bunglows, Opposite Trinidhi Apartment, Ghad Dod Road, Surat – 395 007, Gujarat, India
Date of Birth/Age :	26.09.1975
Date of Appointment :	29.12.1994
Name :	Mr. Maheshchandra Dhansukhlal Kabutarwala
Designation :	Director (Engineering and Project)
Address :	4, Etka Society, Opposite Mamta Apartment, Ghad Dod Road, Surat – 395 001, Gujarat, India
Date of Birth/Age :	16.11.1965
Date of Appointment :	22.09.1993
Name :	Mr. Pravinchandra Dhansukhlal Kabutarwala
Designation :	Director (Operating and HRD)
Address :	4, Etka Society, Opposite Mamta Apartment, Ghad Dod Road, Surat – 395 001, Gujarat, India
Date of Birth/Age :	03.10.1956
Date of Appointment :	23.10.1989

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Jayantilal Jariwala	390428
Kanakkumar Jariwala	544911
Vishadkumar Jariwala	549736
Rameshchandra Kabutarwala	358583
Pravinchandra Kabutarwala	358583
Bipinchandra Kabutarwala	355595
Maheshchandra Kabutarwala	358583
Bhavesh Kabutarwala	1106
Jenish Kabutarwala	751
Ketan Kabutarwala	751
Jagrutiben Kabutarwala	126
Urmilaben Jariwala	3975
Hemlataben Kabutarwala	2399
Ishwariben Kabutarwala	306
Ushaben Kabutarwala	1580
Shyam Kabutarwala	125
Shilpa Jariwala	3200
Jyotiben Jariwala	2935
Jay Kabutarwala	125
Krunal Kabutarwala	323
Asumatiben Dhansukhlal	53798
Urmila Asumati Trust Proprietor of Shree corporation Trustee-Jayantilal Thakordas, India	275
Total	2988194

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of Acid Dyes and Inter Mediates for Textile, Rubber, Plastic, Leather and Paint Industries.

Products :

Dyes-Chemicals Manufacturing Yarn and Process of Cloths

The company’s products range includes: -

· Disperse (Coralene)

· Acid (Colomil/Colocid/Cololan)

· Modified basic (Coracryl)

· Speciality Direct (Colozol)

· Leather (Coloderm) dyes

Product	Item Code No.
Synthetic Organic Dyes	3204
Other Organic Dyes	2942
Other Organic Surface Active Agent	3402

Exports :

Products :

All types of dyes and inter mediates

Countries :

USA, UAE, Taiwan, Singapore, Bangladesh, China, Malaysia, Thailand

Imports :

Products :

Raw Material

Countries :

China, Korea, Europe, Taiwan

Terms :

Selling :

L/C, Cash (30-60 days)

Purchasing :

L/C, Cash (30-60 days)

GENERAL INFORMATION

Suppliers :

v Benzo Petro International Limited

v Dai Ichi Karkaria Limited

v Vadilal Chemicals Limited

v Indian Petrochemicals Limited

Customers :

Manufacturer, Wholesalers and Retailers

No. of Employees :

1500 (Approximately)

Bankers :

· Bank of Baroda, Parsi Sheri Branch, Surat – 395 003, Gujarat, India

· State Bank of India, Surat

· Standard Chartered Bank, Abhijeet II, Ground Floor, Near Mithakali Six Roads, Ahmedabad – 380 006, Gujarat, India

· IDBI Bank Limited, ESS EN House, Ghod Dod Road, Surat – 395001, Gujarat, India

· Standard Chartered Bank, Surat

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loan Facility from IDBI Bank	310.970	264.423
Cash Credit facility from Bank of Baroda	0.000	241.567
Standard Chartered – Working Capital Facility	133.984	0.000
Cash Credit facility from IDBI Bank	544.941	98.677
Total	989.895	604.667

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Form Directors and Shareholders	2081.148	1449.426
Total	2081.148	1449.426

Banking Relations :

--

Auditors :

Name 1 :

S.N.K. and Company

Chartered Accountants

Address :

SNK House, 31-A, Adarsh Society, Opposite Seventh Day Adventist High School, Athwalines, Surat – 395 001, Gujarat, India

Tel. No.:

91-261-2656273-4, 6544791-2, 3299540-47

Fax No.:

91-261-2656868

E-Mail:

snk@snkca.com

snk@youtele.com

Website :

www.snkca.com

Holding Company :

• Coloursynth Industries Private Limited
• Jaycol Industries Private Limited

Associates/Subsidiaries :

Colourtex Limited

CIN No. :- U24114MH1982PLC028309

CTX Dyestuffs Private Limited

CIN No. :- U24231GJ1988PTC010367

v M/s. Coro Chem

v Coro Fine Chem Private Ltd

v M/s. Colourtex

v M/s. Bhavin Textiles

v M/s. Bhavin industries

v M/s. Vipan industries

v M/s. CMC

v M/s. Metro Chemicals

v Coconut Software’s Private Limited

v CTX Dyestuffs Private Limited

v CTX Lifescience Private Limited

v Colourtex lnc.

v Colourtex (Asia- Pacific) Limited

v Coltex S. A.

v Colourtex Limited

v M/s. Shree Corporation

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
12120000	Equity Shares	Rs.10/- each	Rs.121.200 millions
650000	8% Redeemable Cumulative Preference Shares	Rs.10/- each	Rs. 6.500 millions
7000000	Non-cumulative, Non-convertible Redeemable Preference Shares	Rs.10/- each	Rs.70.000 millions
	Total		Rs.197.700 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2988194	Equity Shares	Rs.10/- each	Rs.29.882 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		29.882	29.882	16.933
2] Share Capital Suspense		0.000	0.000	12.949
3] Reserves & Surplus		2457.738	2250.094	2077.842
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2487.620	2279.976	2107.724
LOAN FUNDS
1] Secured Loans		989.895	604.667	552.241
2] Unsecured Loans		2081.148	1449.426	2028.530
TOTAL BORROWING		3071.043	2054.093	2580.771
DEFERRED TAX LIABILITIES		14.897	34.633	0.000
TOTAL		5573.560	4368.702	4688.495
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2011.588	1905.674	1171.208
Capital work-in-progress		122.165	88.464	210.738
INVESTMENT		62.563	62.563	62.563
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2043.169	1303.124	1660.430
	Sundry Debtors	2342.173	1507.251	1812.234
	Cash & Bank Balances	101.118	112.809	230.902
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	708.069	591.528	968.364
Total Current Assets		5194.529	3514.712	4671.930
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1599.258	1069.453	1308.691
	Other Current Liabilities	76.844	42.293	30.139
	Provisions	141.193	90.987	89.180
Total Current Liabilities		1817.295	1202.733	1428.010
Net Current Assets		3377.234	2311.979	3243.920
MISCELLANEOUS EXPENSES		0.010	0.022	0.066
TOTAL		5573.560	4368.702	4688.495

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	8382.644	7422.942	6287.949
		Other Income	5.886	1.914	33.173
		TOTAL (A)	8388.530	7424.856	6321.122
Less	EXPENSES
		Material Consumed	6171.241	4871.761	4454.431
		Manufacturing, Trading & Operating Expenses	1784.906	1331.944	1168.492
		Sales & Administrative Expenses	98.292	119.270	78.534
		Preliminary Expenses written off	0.011	0.011	0.034
		Increase/(Decrease) in Stock	(712.403)	282.455	(47.058)
		TOTAL (B)	7342.047	6605.441	5654.433
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1046.483	819.415	666.689
Less	FINANCIAL EXPENSES (D)		268.233	227.692	233.349
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		778.250	591.723	433.340
Less/ Add	DEPRECIATION/ AMORTISATION (F)		456.018	302.222	221.728
	PROFIT BEFORE TAX (E-F) (G)		322.232	289.501	211.612
Less	TAX (H)		114.399	117.250	82.389
	PROFIT AFTER TAX (G-H) (I)		207.833	172.251	129.223
	Add: Excess/ (Short) Provision for Tax of earlier years		(0.188)	--	(0.931)
	Add: Adjustment in P and L on Account of Amalgamation in the nature of merger		--	--	12.560
	Less: Previous Year Adjustments		--	--	--
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2026.787	1854.536	1713.690
Less	APPROPRIATIONS
		Transfer to Capital Redemption Reserve Account	--	--	0.006
	BALANCE CARRIED TO THE B/S		2234.432	2026.787	1854.536
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Direct Export	0.000	2348.176	1872.438
	TOTAL EARNINGS		0.000	2348.176	1872.438
	IMPORTS
		Raw Materials	1744.387	1132.457	1495.390
		Capital Goods	7.689	6.476	10.493
		Advance for Capital Goods	81.813	12.910	--
	TOTAL IMPORTS		1833.889	1151.843	1505.883
	Earnings Per Share (Rs.)		69.55	57.64	43.24

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.48	2.32	2.04
Net Profit Margin (PBT/Sales)	(%)	3.84	3.90	3.37
Return on Total Assets (PBT/Total Assets}	(%)	4.47	5.34	3.62
Return on Investment (ROI) (PBT/Networth)		0.13	0.13	0.10
Debt Equity Ratio (Total Liability/Networth)		1.96	1.43	1.90
Current Ratio (Current Asset/Current Liability)		2.86	2.92	3.27

LOCAL AGENCY FURTHER INFORMATION

The details of sundry creditors

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
- For Goods	1221.051	866.645	1096.916
- For Expenses	236.626	202.808	211.775
- For Capital Goods	141.581	0.000	0.000
Total	1599.258	1069.453	1308.691

OPERATIONS:-

The performance of the company during the year 2009-10 was satisfactory compared to the previous year 2008-09. The company had a turnover of Rs.9182.848 millions for the year. The net profit of the company after providing depreciation and tax for the year was of Rs. 207.833 millions.

form 8:-

This form is for	Creation of charge
Corporate identity number of the company	U24231GJ1989PLC012922
Name of the company	COLOURTEX INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No. 80, Bhestan G.I.D.C., Pandesara, Surat – 394221, Gujarat, India
Type of charge	Book debts Movable property Floating charge
Particular of charge holder	Standard Chartered Bank, Abhijeet II, Ground Floor, Near Mithakali Six Roads, Ahmedabad – 380 006, Gujarat, India
Nature of description of the instrument creating or modifying the charge	Unattested Memorandum of Hypothecation.
Date of instrument Creating the charge	25.02.2010
Amount secured by the charge	Rs.500.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : At the rate as negotiated and agreed with the Bank. Terms of Repayment : As negotiated and agreed with the Bank. Margin : At the rate as negotiated and agreed with the Bank. Extent and Operation of the charge : First charge on all the present and future book debts and stocks of the company ranking pari passu with other working capital bankers.
Short particulars of the property charged	All present and future book debts, outstanding money receivables, claims and bills, etc. More particularly described in the schedule of the attached Hypothecation Agreement. All the present and future stock in trade consisting of raw material, finished goods, goods in process of manufacturing and other merchandise. As particularly described in schedule of Hypothecation Agreement

FIXED ASSETS:

· Land

· Quarters

· Factory Building

· Furniture and Fixtures

· Office Equipment

· Vehicles

· Plant and Machinery

· Water Pollution Plant

· Water Pipeline

· Computer Equipment

· Wind Mill

· Excavator Loader

WEBSITE DETAILS:

Company Overview

Subject was founded in late sixties by the present Chairman and Managing Director Mr. Jayantibhai Jariwala. His first venture in to dyestuff manufacturing came in 1976 with a modest plant in the industrial suburb of Surat, Gujarat.

Initially catering to the local dyestuff demand in and around Surat, Subject grew rapidly in the next three decades to become the largest producer of dyes in the subcontinent.

Today with such comprehensive set up, Subject manufacturing capabilities are unmatched globally - product mix of over 750 dyes from an installed capacity of 57000mta.

Subject derives this strength through its infrastructure – 600000 M3 soft water reservoir, 7.5 MW cogeneration gas based turbine, 18 hectares of dedicated land fill site, backed by strong backward integration (46,000 mta of dye intermediates and dye additives) – making it totally self reliant for sustained quality manufacturing activities.

With its 1500 work force and a market oriented, customer driven management, Subject has gained trust for quality and reliability of over 2000 clientele around the world.

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.44.52
UK Pound	1	Rs.72.72
Euro	1	Rs.64.41

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		58

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.