MIRA INFORM REPORT

Report Date :

29.12.2011

IDENTIFICATION DETAILS

Name :	ARINTEX GLOBAL LIMITED
Registered Office :	2 C Naryani 2 A Sarat Bose Road, Kolkata – 700 020, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	01.03.1996
Com. Reg. No.:	21-77733
Capital Investment / Paid-up Capital :	Rs.57.147 millions
CIN No.: [Company Identification No.]	U17111WB1996PLC077733
TAN No.: [Tax Deduction & Collection Account No.]	CALA03660G
PAN No.: [Permanent Account No.]	AACCA3664R
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Knitted Fabrics and Agro Products.
No. of Employees :	15 Approximately

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 290632
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with slight caution.

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

Name :	Mr. S N Barman
Designation :	Commercial Officer
Contact No.:	91-9830153201

LOCATIONS

Registered Office :	2 C Narayani 2 A Sarat Bose Road, Kolkata – 700 020, West Bengal, India
Tel. No.:	91-33-24753500
Fax No.:	91-33-24746759
E-Mail :	krameshan@arintexglobal.com ashish@arintexglobal.com info@arintexglobal.com arintex@vsnl.com
Area :	6000 Sq.fts
Location :	Rented
Factory :	Khardah, Kolkata – 700 005, West Bengal, India

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Laxmi Kant Todi
Designation :	Director
Date of Birth/Age :	25.04.1953
Date of Appointment :	01.08.2003
Name :	Mr. Nilesh Todi
Designation :	Director
Date of Birth/Age :	24.11.1975
Date of Appointment :	16.07.2001
Name :	Mr. Krishna Kumar Todi
Designation :	Director
Date of Birth/Age :	09.02.1946
Date of Appointment :	21.05.2007

KEY EXECUTIVES

Name :	Mr. S N Barman
Designation :	Commercial Officer
Contact No :	91-9830153201

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Sanjay Todi	100
Ashish Todi	100
Om Prakash Todi	100
Laxmi K Todi	100
Nilesh Todi	100
Rekha Kedia	100
HP Todi and SD Toadi	2500
SK Todi and Archana Todi	2500
LK Todi and Kusum Todi	2500
KK Todi and Majula Todi	2500
Kedia Kumar Arun	46100
SK Todi and Ashish Todi	505000
SD Todi and OP Todi	530000
KK Todi and Sarl Devi Todi	100000
KK Todi and SK Todi	125000
LK Todi and SK Todi	1267500
SK Todi and LK Todi	15000
SD Todi and KK Todi	500000
Madhvi Cotton Mills Limited, Kolkata, West Bengal	15000
MMP Exim Private Limited, Kolkata, West Bengal	923000
MMP Envirotech P Limited, Kolkata, West Bengal	750000
Ashish Todi and Bhavna Todi	2500
Eros Fashion Private Limited, Kolkata, West Bengal	925000
TOTAL	5714700

AS ON 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	45.72
Directors or relatives of directors	54.28
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Knitted Fabrics and Agro Products.

Products :

Product Description	Item Code No.
Cotton Fabrics	61.09
Agricultural Products	23.06
Knitted Fabrics	61.09

Exports :

Countries :

Dubai, Bangladesh

Terms :

Selling :

Credit (90 days)

Purchasing :

L/C, Credit (90 days)

PRODUCTION STATUS

AS ON 31.03.2010

Particulars	Unit	Installed Capacity
Dyed yarn	Kgs	0.066 million
Knitted Fabrics	Kgs	0.738 million
Knitted Garments	Pcs	3.000 millions

GENERAL INFORMATION

Customers :

Manufacturer and Merchant Exporter

No. of Employees :

15 Approximately

Bankers :

· Oriental Bank of Commerce, Overseas Branch(Lors’s Building), 7/1, Lord Sinha Road ,1^st floor, Kolakata – 700 071, West Bengal, India

· HDFC Bank

Facilities :

Secured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Term Loan from Schedule Banks) (Secured against hypothecation of motor car)	0.299	0.470
Overdraft from OBC Bank (secured against mortgage of property)	61.708	0.000
Total	62.007	0.470

Unsecured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
From banks and others	18.899	69.380
Total	18.899	69.380

Banking Relations :	-
Auditors :
Name :	SJMJ and Associates Chartered Accountants
Address :	13A, Government Place, East, 1Draper Lane,2^nd Floor, Kolkata- 700 069, West Bengal, India
Tel. No.:	91-33-40080626

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5714700	Equity Shares	Rs.10/- each	Rs.57.147 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		57.147	57.147	57.147
2] Share Application Money		0.000	0.500	0.500
3] Reserves & Surplus		15.511	10.560	5.400
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		72.658	68.207	63.047
LOAN FUNDS
1] Secured Loans		62.007	0.470	0.641
2] Unsecured Loans		18.899	69.380	49.763
TOTAL BORROWING		80.906	69.850	50.404
DEFERRED TAX LIABILITIES		2.749	2.534	2.340
TOTAL		156.313	140.591	115.791
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		49.118	52.751	52.239
Capital work-in-progress		0.939	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	122.099	144.884	189.159
	Sundry Debtors	74.236	114.620	120.100
	Cash & Bank Balances	79.934	9.949	72.871
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	562.897	606.390	434.784
Total Current Assets		839.166	875.843	816.914
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	662.202	431.683	307.349
	Current Liabilities	68.472	354.861	445.250
	Provisions	2.236	1.459	0.763
Total Current Liabilities		732.910	788.003	753.362
Net Current Assets		106.256	87.840	63.552
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		156.313	140.591	115.791

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	3761.607	1546.476	586.976
		Other Income	0.895	6.832	2.262
		TOTAL (A)	3762.502	1553.308	589.238
Less	EXPENSES
		Raw material, Components, stores and Spares Consumed	0.528	2.350	0.128
		Cost of Goods Sold	3681.366	1475.272	531.560
		Personal Expenses	0.762	0.999	1.107
		Operating and Administrative expenses	7.163	27.793	48.090
		TOTAL (B)	3689.819	1506.414	580.885
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		72.683	46.894	8.353
Less	FINANCIAL EXPENSES (D)		63.329	37.428	1.937
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.354	9.466	6.416
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.226	3.416	3.350
	PROFIT BEFORE TAX (E-F) (G)		6.128	6.050	3.066
Less	TAX (H)		1.177	0.890	1.171
	PROFIT AFTER TAX (G-H) (I)		4.951	5.160	1.895
	EARNINGS IN FOREIGN CURRENCY
		Turnover from export of traded goods	0.000	123.942	252.467
	Earnings Per Share (Rs.)		0.87	0.90	0.33

RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.13	0.33	0.32
Net Profit Margin (PBT/Sales)	(%)	0.16	0.39	0.52
Return on Total Assets (PBT/Total Assets}	(%)	0.68	0.65	0.35
Return on Investment (ROI) (PBT/Networth)		0.08	0.09	0.05
Debt Equity Ratio (Total Liability/Networth)		11.23	12.57	12.75
Current Ratio (Current Asset/Current Liability)		1.14	1.11	1.08

LOCAL AGENCY FURTHER INFORMATION

BACKGROUND

The subject is engaged in the business of manufacturing knitted garments as well as domestic and international trading. Beside garments and textiles the company deals in agro commodities, minerals and metals, gems and diamonds etc. The company was incorporated as a public limited company under the companies Act, 1956 on 01.03.1996.

BUSINESS PERFORMANCE

The company Turnover from sale of traded goods grew to Rs.3761.607 millions for the year ended 31.03.2010 which represent an increase of 143.24% over the previous year’s Rs.1546.476 millions Domestic revenues grew 164.43% to Rs.3761.607 millions. However due to recession in world market there was no export sales during the FY 2009-10.

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U17111WB1996PLC077733
Name of the company	ARINTEX GLOBAL LIMITED
Address of the registered office or of the principal place of business in India of the company	2 C, Narayani, 2 A Sarat Bose Road, Kolkata – 700 020, West Bengal, India
Type of charge	Movable Property Others Documents of title to goods / accepted hundies, etc
Particular of charge holder	Oriental Bank of Commerce, Overseas Branch(Lors’s Building), 7/1, Lord Sinha Road (1^st floor0, Kolakata – 700 071, West Bengal,India
Nature of description of the instrument creating or modifying the charge	1. Agreement of Hypothecation of Assets dtd. 18.03.2008 2. Agreement of Guarantee dtd. 18.03.2008
Date of instrument Creating the charge	18.03.2008
Amount secured by the charge	Rs.70.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Letter of credit (Inland/Import) with 180 days Usance period substituted by Buyers Credit Terms of Repayment 1 year Margin 20% in the shape of unencumbered duly discharged FDRs/ CDRs along with interest accrued thereon Extent and Operation of the charge Docts. of title of goods in case of L/C on DP basis. Hypothecation charge over the goods in case of L/C on DA basis. Hypothecation of Assets. Exclusive 1st charge on the merchandise purchased/imported under our LCs and the related trade debtors. Collateral security (to be provided) : EQM of Built up 996 sq. ft. office premises at 707 Sagar Tech Plaza-B, Andheri Kurla Road, Sakinaka, Mumbai owned by MMP Filteration Private Limited. alonwith its Corporate guarantee and personal guarantees.
Short particulars of the property charged	Docts. of title of goods in case of L/C on DP basis. Hypothecation charge over the goods in case of L/C on DA basis. Hypothecation of Assets. Exclusive 1st charge on the merchandise purchased/imported under our LCs and the related trade debtors. Collateral security (to be provided) : EQM of Built up 996 sq. ft. office premises at 707 Sagar Tech Plaza-B, Andheri Kurla Road, Sakinaka, Mumbai owned by MMP Filteration Private. Limited. alonwith its Corporate guarantee and personal guarantees.

Fixed Assets :-

• Land
• Building
• Plant and Machinery
• Laboratory Equipment
• Computer and Software
• Office Equipment
• Mobile phones
• Vehicle
• Furniture and Fixture

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.53.21
UK Pound	1	Rs.83.32
Euro	1	Rs.69.51

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		29

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

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.