MIRA INFORM REPORT

Report Date :

11.08.2011

IDENTIFICATION DETAILS

Name :	KUSH SYNTHETICS PRIVATE LIMITED
Registered Office :	209, Thakore Bai, Mithaiwala Market, Above Bank of Rajasthan, Sahara Gate Road, Surat – 395003, Gujarat
Country :	India
Financials (as on) :	31.03.2011 (Provisional)
Date of Incorporation :	20.10.1997
Com. Reg. No.:	04-033214
Paid-Up Capital :	Rs. 137.500 Millions
CIN No.: [Company Identification No.]	U17110GJ1997PTC033214
TAN No.: [Tax Deduction & Collection Account No.]	SRTK00129D
PAN No.: [Permanent Account No.]	AABCK2282J
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Importer of glass fiber fabrics.
No. of Employees :	150 (approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 2700000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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.

INFORMATION DECLINED BY

Name :	Mr. Sunil Bachwani
Designation :	Accounts Manager
Contact No.:	91-9925633389
Date :	10.08.2011

LOCATIONS

Registered Office :	209, Thakore Bai, Mithaiwala Market, Above Bank of Rajasthan, Sahara Gate Road, Surat – 395003, Gujarat, India
Tel. No.:	91-261-2344251/ 2322715
Mobile No.:	91-9925633389 (Mr. Sunil)
Fax No.:	91-261-2344253
E-Mail :	info@kushsynthetics.com kushsynth@rediffmail.com limited.com@gmail.com sbachwani@kushsynthetics.com
Website :	http://www.kushsynthetics.com
Area :	1000 Sq. ft.
Location :	Owned
Administrative Office :	302 Zediac Squacre, S.G. Highway (Opposite Gurudwara), Thaltej, Ahmedabad-380054, Gujarat, India
Tel. No.:	91-79-40092299
Fax No.:	91-79-40092299
E-Mail :	info@kushsynthetics.com
Factory :	Glass Fiber Unit Survey Number – 146-147, Village: Moti Chirai, N.H. 8-A, Gandhidham – Bhachau Road, Bhachau (Kutch) 370140, Gujarat, India.
Tel No.:	91-2837-282374
Fax N.:	91-2837-282375
Area :	13 Acers
Location :	Owned
Overseas Office :	U.S.A. Office: 12700 Stowe Drive, Suite 230, Poway, CA – 92064, United States. Ph No.: +1 858 679 7300 Fax No.: +1 858 679 7335 European Office: Springendalhoek 48, 7546GT Enschede (Overijssel), Netherlands. Ph No.: +31 53 4772401. Fax No: +31 84 7101329.

DIRECTORS

As on 30.09.2010

Name :	Mr. Karsandas Becharbhai Patel
Designation :	Director
Address :	Digvijay Plot, Sumer Club Road, Jamnagar – 361004, India
Date of Birth/Age :	24.11.1922
Date of Appointment :	20.10.1997
DIN No.:	00318377
Name :	Mr. Mansukhlal Karsandas Patel
Designation :	Director
Address :	Digvijay Plot, Sumer Club Road, Jamnagar – 361004, India
Date of Birth/Age :	17.12.1952
Date of Appointment :	20.10.1997
DIN No.:	00873403
Name :	Mr. Dineshchandra Karsanbhai Patel
Designation :	Director
Address :	Digvijay Plot, Sumer Club Road, Jamnagar – 361004, India
Date of Birth/Age :	13.05.1958
Date of Appointment :	20.10.1997
DIN No.:	02209650

KEY EXECUTIVES

Name :	Mr. Sunil Bachwani
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Equity Shares
Mansukhlal K. Patel	500000
Dineshchandra Patel	1000000
Karsanbhai Patel	750000
Mansukhbhai Patel	500000
Dineshbhai Patel	1500
Kiranben Patel	2000000
Rasilaben Patel	2000000
Karsanbhai Patel	748500
Kishorbhai Patel	500000
Total	8000000

Names of Shareholders	No. of Preference Shares
Mansukhbhai Patel	750000
Dineshchandra Patel	420000
Karsanbhai Patel	750000
Mansukhbhai Patel (HUF)	200000
Kiranben Patel	560000
Kesarben Patel	490000
Kishorbhai Patel	300000
Vibhaben Patel	780000
Jay Dinesh Virani	1500000
Total	5750000

Equity share break-up (Percentage of Total Equity)

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of glass fiber fabrics.

Products :

Products	Item Code
Non-Woven Industrial/ Technical Fabric	3212

Exports :

Products :

• Glass fibre fabrics

Countries :

• Netherlands
• China
• USA

Imports :

Products :

• Raw material
• Machine parts
• 3B Glass Fibre

Countries :

• Germany
• USA
• Belgium

Terms :

Selling :

L/C, Credit

Purchasing :

L/C, Credit

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity
Knitting Machines	MT	8000	8000
Knitting Machines- Biaxial	MT	2000	2000
Knitting Machine- Multiaxial	MT	2000	2000

GENERAL INFORMATION

Suppliers :

• Liba
• PPG Industries
• Owens Corning

Customers :

• Suzlon Energy
• Manufacturer

No. of Employees :

150 (approximately)

Bankers :

• State Bank of Patiala, Commercial Branch, First Floor, Atlanta, Nariman Point, Mumbai-400021, Maharashtra, India

Facilities :

LC: Rs. 90.000 Millions

CC: Rs. 120.000 Millions

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Working Capital Bank Loans: (Rupee Loan) From:	35.869	116.950
Term Loan	174.825	243.288
Total	210.694	360.238
Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From Shareholders	6.276	6.073
Total	6.276	6.073

Banking Relations :	--
Financial Institutions :	v 3i Infotech Trusteeship Services Limited 3^rd to 6^th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai – 400703, Maharashtra, India
Auditors :
Name :	V H Gundarwala and Company Chartered Accountant
Address :	23-B, 1^st Floor, Multi Storied Building, Singapuri Wadi, Rustompura, Surat – 395002, Gujarat, India
Tel No.:	91-261-2353116
Mobile No.:	91-9824123329
E-mail :	vinodgundarwala@rediffmail.com

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
8750000	Equity Shares	Rs.10/- each	Rs.87.500 Millions
5750000	Preference Shares	Rs.10/- each	Rs.57.500 Millions
	Total		Rs. 145.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 Millions
5750000	Preference Shares	Rs.10/- each	Rs. 57.500 Millions
	Total		Rs. 137.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011 (Provisional)	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		137.500	137.500	137.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		553.402	344.667	298.532
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		690.902	482.167	436.032
LOAN FUNDS
1] Secured Loans		113.250	210.694	360.238
2] Unsecured Loans		9.276	6.276	6.073
TOTAL BORROWING		122.526	216.970	366.311
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		813.428	699.137	802.343
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		384.901	367.711	327.030
Capital work-in-progress		0.000	85.705	0.000
INVESTMENT		36.853	35.714	42.332
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	107.985	101.734	102.593
	Sundry Debtors	157.993	258.581	492.591
	Cash & Bank Balances	201.089	108.744	98.133
	Other Current Assets	1.318	0.000	0.000
	Loans & Advances	181.230	168.713	133.977
Total Current Assets		649.615	637.772	827.294
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	39.059	236.556	227.184
	Other Current Liabilities	27.785	0.036	0.036
	Provisions	191.097	191.173	167.254
Total Current Liabilities		257.941	427.765	394.474
Net Current Assets		391.674	210.007	432.820
MISCELLANEOUS EXPENSES		0.000	0.000	0.161
TOTAL		813.428	699.137	802.343

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011 (Provisional)	31.03.2010	31.03.2009
	SALES
		Income	1073.384	676.845	1199.581
		Other Income	58.381	3.030	6.241
		TOTAL (A)	1131.765	679.875	1205.822
Less	EXPENSES
		Cost of Material		407.393	683.520
		Sales and Administrative Expenses		83.045	94.463
		Manufacturing and Operating Expenses		31.431	39.252
		Preliminary Expenses not written off		0.162	0.165
		Other Expenses		3.841	69.388
		TOTAL (B)	819.047	525.872	886.788
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		312.718	154.003	319.034
Less	FINANCIAL EXPENSES (D)		29.410	32.693	35.944
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		283.308	121.310	283.090
Less/ Add	DEPRECIATION/ AMORTISATION (F)		74.573	50.566	71.732
	PROFIT BEFORE TAX (E-F) (G)		208.735	70.744	211.358
Less	TAX (H)		0.000	24.505	77.630
	PROFIT AFTER TAX (G-H) (I)		208.735	46.239	133.728
	IMPORTS
		Raw Materials	NA	39.925	74.477
		Capital Goods	NA	0.000	0.000
	TOTAL IMPORTS		NA	39.925	74.477
	Earnings Per Share (Rs.)		NA	3.36	--

KEY RATIOS

PARTICULARS		31.03.2011 (Provisional)	31.03.2010	31.03.2009
PAT / Total Income	(%)	18.44	6.80	11.09
Net Profit Margin (PBT/Sales)	(%)	19.45	10.45	17.62
Return on Total Assets (PBT/Total Assets}	(%)	20.18	7.04	18.31
Return on Investment (ROI) (PBT/Networth)		0.30	0.15	0.48
Debt Equity Ratio (Total Liability/Networth)		0.55	1.34	1.74
Current Ratio (Current Asset/Current Liability)		2.52	1.49	2.10

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2011 (Provisional)	31.03.2010	31.03.2009
Sundry Creditors
For Goods		131.842	189.427
For Expenses		34.485	34.665
For Capital Goods		68.198	1.799
For Others		2.031	1.293
Total	39.059	236.556	227.184

Results of Operations: (As On 31.03.2010)

The Net sales of the company has been declined from Rs. 1199.500 Millions to Rs. 676.800 Millions during the year. Likewise, the expenditure has also gone down to Rs.605.200 Millions to Rs. 925.000 Millions. The company has booked profit of Rs. 70.700 Millions which was lower by 65% compare to corresponding previous financial year.

Note:

As informed by Accounts Manager Mr. Sunil. They have total 6 machines in factory, monthly production is 1000 tons and yearly 12000 tons.

They are about to expand their production capacity, have ordered 3 more machines from Germany.

Bankers Charges Report as per Registry

Corporate identity number of the company	U17110GJ1997PTC033214
Name of the company	KUSH SYNTHETICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	209, Thakore Bai, Mithaiwala Market, Above Bank of Rajasthan, Sahara Gate Road, Surat – 395003, Gujarat, India
This form is for	Modification of Charge
Charge identification number of the charge to be modified	90095473
Type of charge	Book Debts Movable Property Others
Particular of charge holder	State Bank of Patiala, Commercial Branch, First Floor, Atlanta, Nariman Point, Mumbai-400021, Maharashtra, India
Nature of instrument creating charge	Supplemental Agreement of Hypothecation of Goods and Assets for increase in the overall limit
Date of instrument Creating the charge	22.06.2009
Amount secured by the charge	Rs. 564.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1% below BPLR i.e. 11.75% p.a. floating payable monthly and 1% extra upto the period company is rate by external agency. Terms of Repayment On Year fro WC Limit Margin Cash Margin on LC/ BG- 15% Margin on Stock- Raw Materials- 25%, Finished Goods- 25%, Stock in Process- 40%, Debtors – 25% (up to 90 Days) Extent and Operation of the charge First and Exclusive charge over the properties fo the company.
Short particulars of the property charged	First pari passu hypothecation charge on raw materials, stock-in-process, finished goods, stores, spares, consumables, receivables and other chargeable current assets
Particulars of the present modification	The overall credit facilities has been increased from Rs. 464.000 Millions to Rs. 564.000 Millions due to the enhancement in the Letter of Credit (LC) facility from Rs. 50.000 Millions to Rs. 150.000 Millions

Fixed Assets

• Land
• Building
• Plant and Machinery
• Vehicles
• Furniture, Office Equipment and Other Assets

Trade References:

• Suzlon Energy Limited
• Liba – Germany

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. 45.21
UK Pound	1	Rs. 73.51
Euro	1	Rs. 64.76

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.