MIRA INFORM REPORT

Report Date :

23.04.2011

IDENTIFICATION DETAILS

Name :	KOTHARI HOSIERY FACTORY PRIVATE LIMITED
Registered Office :	29, Strand Road, 2^nd Floor, Kolkata – 700001, West Bengal.
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	01.08.1988
Com. Reg. No.:	21-044899
CIN No.: [Company Identification No.]	U17111WB1988PTC044899
TAN No.: [Tax Deduction & Collection Account No.]	CALK00255D
PAN No.: [Permanent Account No.]	AADFK1140N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Hosiery Products.

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

Maximum Credit Limit :	USD 420000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is well-established and reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported as usually made 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 PARTED BY

Name :	Mr. Satinath
Designation :	Accountant
Date :	19.04.2011

LOCATIONS

Registered Office :	29, Strand Road, 2^nd Floor, Kolkata – 700001, West Bengal, India.
Tel. No.:	91-33-22439371/75/22697052/0270/22689904/22822601 / 2433056 / 2433860
Mobile No.:	91-983025474 (Mr. Keshav Kothari )
Fax No.:	91-33-22433109
E-Mail :	shriksna@cal.vsnl.net.in shrikhna@vsnl.net.in
Website :	http://www.kotharihosr.com
Area :	480 Sq. Ft.
Location :	Rented
Factory 1 :	24, Chawal Pathy Road, Kolkata, West Bengal, India
Area :	10000 Sq. Ft.
Location :	Owned

DIRECTORS

As on : 30.09.2010

Name :	Mr. Krishna Kumar Kothari
Designation :	Director
Address :	Rajshree, 6, Hasting Park Road, Kolkata – 700027, West Bengal, India.
Date of Birth/Age :	13.10.1957
Date of Appointment :	01.04.2008
Din No.:	00233174
Name :	Mr. Kamal Kumar Kothari
Designation :	Director
Address :	Rajshree, 6, Hasting Park Road, Kolkata – 700027, West Bengal, India.
Date of Birth/Age :	05.06.1959
Date of Appointment :	01.04.2008
Din No.:	00233217
Name :	Mr. Dau Dayal Kothari
Designation :	Director
Address :	6, Hasting Park Road, Kolkata – 700027, West Bengal, India.
Date of Birth/Age :	05.12.1934
Date of Appointment :	22.09.1999
Din No.:	00233255
Name :	Mr. Hari Mohan Kothari
Designation :	Director
Address :	Rajshree, 6, Hasting Park Road, Kolkata – 700027, West Bengal, India.
Date of Birth/Age :	05.10.1974
Date of Appointment :	01.04.2008
Din No.:	00233318
Name :	Mr. Man Mohan Kothari
Designation :	Director
Address :	Rajshree, 6, Hasting Park Road, Kolkata – 700027, West Bengal, India.
Date of Appointment :	01.04.2008
Din No.:	00233353
Name :	Mr. Keshav Kumar Kothari
Designation :	Director
Address :	Rajshree, 6, Hasting Park Road, Kolkata – 700027, West Bengal, India.
Date of Birth/Age :	16.01.1970
Date of Appointment :	01.04.2008
Din No.:	00233394
Name :	Mr. Bithal Das Kothari
Designation :	Director
Address :	6, Hasting Park Road, Kolkata – 700027, West Bengal, India.
Date of Birth/Age :	21.03.1945
Date of Appointment :	01.08.1988
Din No.:	00233474
Name :	Mr. Kishore Kumar Kothari
Designation :	Director
Address :	Rajshree, 6, Hasting Park Road, Kolkata – 700027, West Bengal, India.
Date of Birth/Age :	14.09.1972
Date of Appointment :	01.04.2008
Din No.:	00239119

KEY EXECUTIVES

Name :	Mr. B. D. Mishra
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Dau Dayal Kothari	910
Bithal Das Kothari	910
Keshav Kumar Kothari	143750
Man Mohan Kothari	116050
Kishore Kumar Kothari	98200
Krishna Kumar Kothari	98200
Kamal Kumar Kothari	98250
Hari Mohan Kothari	116000
Dwarka Das Kothari (HUF)	383400
Dau Dayal Kothari (HUF)	231700
Bithal Das KOthari (HUF)	294200
Kalpana Maloo	10
Kavita Binani	10
Krishna Kanta Bagri	15
Savita Kothari	50
Kirti Kothari	50
Rohit Kothari	50
Sushila Kothari	15
Srikanta Kothari	54
Total	1581824

AS ON 30.09.2010

Category	Percentage
Bodies corporate	42.51
Directors or relatives of Directors	57.49
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Hosiery Products

Products :

• Socks.
• Fabrics
• Bed Sheets
• Under Garments
• Winter Wear
• Ladies Wear
• Kids Wear
• Casual Wear

Item Code No. (ITC Code)	Product Description
610711.01	Gents Undergarment
610821.01	Ladies Undergarment
610910.02	T. Shirts

Exports :

Products :

Hosiery

Countries :

• UAE
• Australia

Imports :

Products :

Raw Materiasl

Countries :

• Taiwan

Terms :

Selling :

Cash / Credit

Purchasing :

Cash / Credit

PRODUCTION STATUS (31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Than	Kgs.	N.A.	N.A.	1167527
Hosiery Goods	Doz.	N.A.	N.A.	679459

GENERAL INFORMATION

Customers :

Wholesalers

No. of Employees :

35 (Approximately) (In Office – 15 and in Factory – 20)

Bankers :

• UCO Bank

Burranbazar Branch, 1, Sambhu Mullick Lane, Kolkata – 700007, West Bangal, India.

• Standard Chartered Bank (Kolkata)
• Union Bank of India (Mumbai)
• State Bank of India
• HDFC Bank
• United Bank of India

Facilities :

Secured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
From UCO Bank – Burrabazar Branch (secured by hypothecation of stock in trade, Debts and other assets)
Cash credit account	76.911	65.155
Long term loan	0.987	1.670
Total	77.899	66.825

Unsecured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
From body corporate	0.554	0.546
From share holders	5.254	9.224
From directors	3.242	6.414
Total	9.050	16.184

Banking Relations :	---
Auditors :
Name :	Shah and Khandelwal Chartered Accountant
Address :	1/A, Vansittart Row, Kolkata-700001, West Bengal, India.
Tel No.:	91-33-22480826 / 0813
Sister Concern :	Shree Krishna Manufacturing Company Address : 1 Chitpur Ghat Road, Kolkata-700002, West Bengal, India.

CAPITAL STRUCTURE

As on : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1581824	Equity Shares	Rs. 10/- each	Rs. 15.818 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		15.818	15.818	0.818
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		90.122	54.698	0.329
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		105.940	70.516	1.147
LOAN FUNDS
1] Secured Loans		77.899	66.825	0.000
2] Unsecured Loans		9.050	16.184	0.000
TOTAL BORROWING		86.949	83.009	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		192.889	153.525	1.147
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		36.528	20.805	0.002
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	133.083	103.637	0.000
	Sundry Debtors	62.104	42.265	0.624
	Cash & Bank Balances	7.684	5.523	0.162
	Other Current Assets	3.828	3.080	0.000
	Loans & Advances	7.780	29.723	0.304
Total Current Assets		214.479	184.228	1.090
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	55.781	38.958	0.034
	Provisions	2.456	12.730	0.151
Total Current Liabilities		58.237	51.688	0.185
Net Current Assets		156.242	132.540	0.905
MISCELLANEOUS EXPENSES		0.120	0.180	0.240
TOTAL		192.890	153.525	1.147

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	507.398	397.547	3.824
		Other Income	4.416	2.579
		TOTAL (A)	511.814	400.126	3.824
Less	EXPENSES
		Opening Stock	57.134	0.000
		Purchase of Finished Goods	9.525	47.234
		Raw Material Consumed	256.692	216.413
		Manufacturing Expenses	97.462	81.386
		Employees Cost	15.662	10.382
		Administrative Expenses	27.707	23.110	3.540
		Selling and Overhead Expenses	25.820	20.647	(Expenditure Including Interest )
		Directors Remuneration	6.600	6.600
		Loss on Sale fixed assets	0.798	0.000
		Donation	2.546	0.016
		Increase / Decrease in Stock	(56.757)	(57.134)
		TOTAL (B)	443.189	348.654
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		68.625	51.472
Less	FINANCIAL EXPENSES (D)		13.412	11.668
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		55.213	39.804	0.284
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.421	2.668	0.002
	PROFIT BEFORE TAX (E-F) (G)		51.792	37.136	0.282
Less	TAX (I)		15.003	12.733	0.093
	PROFIT AFTER TAX (G-I) (J)		36.789	24.403	0.189
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		24.697	0.328	0.141
	BALANCE CARRIED TO THE B/S		60.122	24.697	0.328
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.123	0.000	NA
	TOTAL EARNINGS		0.123	0.000	NA
	IMPORTS
		Raw Materials	0.069	Nil	NA
		Stores & Spares	0.418	Nil	NA
		Capital Goods	Nil	0.736	NA
	TOTAL IMPORTS		0.487	0.736	NA
	Earnings Per Share (Rs.)		23.26	15.43	4.02

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.18	6.10	8.60
Return on Total Assets (PBT/Total Assets}	(%)	20.63	18.11	31.16
Return on Investment (ROI) (PBT/Networth)		0.48	0.53	0.24
Debt Equity Ratio (Total Liability/Networth)		1.37	1.91	0.16
Current Ratio (Current Asset/Current Liability)		3.68	3.56	5.89

LOCAL AGENCY FURTHER INFORMATION

Operations :

The company has achieved a growth of 28% and Income from Operation during the year over the previous year. The company has also achieved a growth of 27% in gross profit before interest, depreciation and tax and profit after tax respectively during the period over the previous year. The profit after interest, depreciation and tax has recorded 45%, increase from previous year Rs. 2436.900 millions and 3542.400 during the year 2009-10. Further the existing own capacity is being expected.

Significant achievement during the previous year was growth of sales of new product range introduced during the previous year. The company intended to further diversify in to value added item in near further.

FORM 8 :

This form is for	Modification of charge
Charge identification number of the modified	10121242
Corporate identity number of the company	U17111WB1988PTC044899
Name of the company	KOTHARI HOSIERY FACTORY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Address : 29, Strand Road, 2^nd Floor, Kolkata – 700001, West Bengal, India Email : shriksna@vsnl.net.in
Type of charge	Book Debts Movable Property (not being pledge) Immovable Property Floating charge
Particular of charge holder	UCO Bank Address : Burranbazar Branch, 1, Sambhu Mullick Lane, Kolkata – 700007, West Bengal, India. Email : jalaswain@rediffmail.com
Nature of description of the instrument creating or modifying the charge	Hypothecation of goods to secure a demand cash credit.(A-9) A-109, Sanction Letter Hypothecation of movable plant and machinery, equipments and other fixed assets A-9A(R). Board Resolution Hypothecation of book debts to secure demand cash-credit. Agreement (A-9-B). Agreement for extension of charge by way of hypothecation over current assets to secure non-fund based facilities (A-9D)
Date of instrument Creating the charge	27.07.2009
Amount secured by the charge	Rs. 136.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : 1. Rate of interest for cash credit:- 12.25% with monthly rest. the rate of interest is subject to reset at the bank's option. 2.Rate of interest for term loan:- 12.25% with monthly rest. Terms of Repayment : Quarterly installment @ 1.68lacs payable in October, January, April and July alongwith interest charged in the account till final payment of loan. cash credit payable on demand. Margin : For cash credit:-25% on stocks, 40% on book debts. Extent and Operation of the charge : 100%
Short particulars of the property charged	i) EMTD of land and building at 24, Chawal Patty Road, P.S Beliaghata (as per valuation report the owner of the property is Gwaldas Kothari and others (Ganeshdas Kothari Group) and Daudayal Kothari and others ii) (Kothari Hosiery Factory-Gopaldas Kothari Group). Branch stated that Gwaldas Kothari and others has sold their share to Kothari Hosiery factory (now Kothari hosiery factory Private Limited). iii) Hypothecation of all plant and machineries at chowal patty road and at salt lake sector V, Kolkata, in the name of Kothari hosiery factory Private Limited. iv) Hypothecation of plant and machinery of Shree Krishna Manufacturing Company, sister concerns, at 1 Chitpur Ghat Road, Kolkata-700002. v) Hypothecation of plant and machinery of Kothari Knitting Mills Pvt. ltd at 16, Dum Dum Road, Kolkata vi) Hypothecation of plant and machinery of Kothari Garments Manufacturing Company at 32, Cossipore Road, Kolkata
Particulars of the present modification	By this modification over all limit enhance from Rs.112.025 Millions to Rs. 136.500 Millions that is cash credit Rs. 105.000 Millions (peak level) and Rs.75.000 Millions (non-peak leve), letter of credit- Rs.30.000 Millions, term loan- Rs.1.500 Millions.

FIXED ASSETS :

• Leasehold Land and Building
• Factory Building
• Office Space
• Furniture and Fixtures
• Silver Utensil
• Office Equipments
• Plant and Machinery
• Motor Car and Scooter
• Computer Machine
• Cell Phone
• Trade Mark
• Fire Fighting 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] 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. 44.30
UK Pound	1	Rs. 72.92
Euro	1	Rs. 64.69

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	6
--LEVERAGE	1~10	6
--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		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.