MIRA INFORM REPORT

Report Date :

22.07.2011

IDENTIFICATION DETAILS

Name :	KRF LIMITED (w.e.f. 08.03.2007)
Formerly Known As :	KAILASH RIBBON FACTORY LIMITED
Registered Office :	B-7, Mayapuri, Industrial Area, Phase-II, New Delhi-110064
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	07.06.1988
Com. Reg. No.:	55-031992
Capital Investment / Paid-up Capital :	Rs.76.700 Millions
CIN No.: [Company Identification No.]	U18101DL1988PLC031992
TAN No.: [Tax Deduction & Collection Account No.]	DELK05627G
PAN No.: [Permanent Account No.]	AAACK0986C
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturers and Exporters of All Types of Woven Labels, Printed Labels, Cotton Labels etc.
No. of Employees :	More than 800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1100000
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.

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. Manoj
Designation :	Account Executive
Date :	21.07.2011

LOCATIONS

Registered Office :	B-7, Mayapuri, Industrial Area, Phase-II, New Delhi-110064, India
Tel. No.:	91-11-28113205-10/ 28112382/ 28111866
E-Mail :	sanjaymehta@kailashribbon.com skchaudhary@kailasribbon.com
Factory 1 :	C-111, Mayapuri Industrial Area, Phase-II, New Delhi-110064, India
Tel. No.:	91-11-41845539/ 41845540/ 41845541
E-Mail :	shlyshaji@kailashribbon.com
Factory 2 :	403, Udyog Vihar, Phase-III, Gurgaon, Haryana, India
E-Mail :	neelammaini@kailashribbon.com

DIRECTORS

As on 30.09.2010

Name :	Mr. Swaran Kumar Chaudhary
Designation :	Managing Director
Address :	C-2/134, Janakpuri, New Delhi-110058, India
Date of Birth/Age :	10.04.1941
Date of Appointment :	07.06.1988
Name :	Mr. Ashish Chaudhary
Designation :	Director
Address :	BL-100, Hari Nagar, New Delhi-110064, India
Date of Birth/Age :	20.12.1976
Date of Appointment :	01.07.1996
Name :	Ms. Shweta Tarun Gupta
Designation :	Director
Address :	Engineers Estate, House No. 39, Patparganj, New Delhi-110092, India
Date of Birth/Age :	18.09.1983
Date of Appointment :	21.10.2002
Name :	Ms. Suruchi Tandon
Designation :	Director
Address :	C-2/199, Jankpuri, New Delhi-110058, India
Date of Birth/Age :	20.03.1985
Date of Appointment :	23.04.2004
Name :	Mr. Prithvi Raj Sawhney
Designation :	Director
Address :	C-3/337, Janakpuri, New Delhi-110058, India
Date of Birth/Age :	07.07.1941
Date of Appointment :	26.02.2005
Name :	Mr. Sushil Kumar Khanna
Designation :	Director
Address :	C-2/134, Janakpuri, New Delhi-110058, India
Date of Birth/Age :	15.06.1954
Date of Appointment :	07.06.1988
Date of Ceasing:	27.02.2010
Din No.:	00119567
Name :	Mr. Prateek Chaudhary
Designation :	Director
Address :	C-2/134, Janakpuri, New Delhi-110058, India
Date of Birth/Age :	20.10.1990
Date of Appointment :	30.11.2010
Din No.:	02676724
Name :	Mr. Kewal Krishan Sahani
Designation :	Director
Address :	16, B-3 Block, Janak Puri, New Delhi-110058, India
Date of Birth/Age :	14.10.1934
Din No.:	00343107

KEY EXECUTIVES

Name :	Mr. Ashu Sabharwal
Designation :	Company Secretary
Address :	F-93, Mansarover Garden, New Delhi-110027, India
Date of Birth/Age :	18.07.1978
Date of Appointment :	01.07.2006
Name :	Mr. Manoj
Designation :	Account Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
S.K. Chaudhary	115215
Prateek Chaudhary	106210
Prem Rani	89101
S.K.C.International Private Limited	64800
Suruchi Tandon	64485
Shweta Tarun Gupta	48685
Indopacific Finlease Limited	18500
Zenith Fincon Private Limited	15500
Kavita Vohra	13110
Ashok Maini	12399
Kiran Capital Services Private Limited	12000
Parampara Offset Printers Private Limited	12000
Radhika Construction Company Private Limited	11500
Rab Marketing Private Limited	10250
Ergotel Private Limited	6000
Agarwal Developers Private Limited	5625
Brij Nandan Tiwari	5120
Saruchi Financer Private Limited	4250
Kuber Expol International	4000
Madonis Vyapaar Limited	4000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	23.10
Directors or relatives of directors	59.15
Other top fifty shareholders	9.62
Others	8.13
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and Exporters of All Types of Woven Labels, Printed Labels, Cotton Labels etc.
Exports :
Countries :	China UK
Terms :
Selling :	Cash and Credit (30 day / 60 days / 90 days)
Purchasing :	Cash and Credit (30 day / 60 days / 90 days)

GENERAL INFORMATION

Customers :

Retailers and Others

No. of Employees :

More than 800 (Approximately)

Bankers :

• State Bank of India, Commercial Branch, South Extension Part-I, A-5 South Extension, New Delhi-110049, India
• Axis Bank Limited
• ICICI Bank Limited
• HDFC Bank Limited

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From State Bank of India, Mayapuri:
Term Loans against hypothecation of machinery, Land and Building	27.698	46.966
Cash Credit Against hypothecation of stocks	45.469	41.525
Cash Credit against hypothecation of book debts	137.290	130.660
Standby Line of Credit – Term loan	6.971	11.039
Standby Line of Credit – Working Capital Loan	0.000	0.069
From HDFC Bank Limited
Term Loans against hypothecation of vehicles	0.725	1.575
From Axis Bank Limited
Term Loans against hypothecation of vehicles	0.272	0.466
From Tata Capital Limited
Term loans against hypothecation of vehicles	0.603	1.000
From ICICI Bank Limited
Term Loan against hypothecation of Vehicles	0.000	0.322
From Kotak Mahindra Bank Limited
Term Loans against hypothecation of Vehicles	5.308	0.000
Term Loans against hypothecation of Machinery	106.840	0.000
Total	331.176	233.622
Unsecured Loans
From Directors and shareholders	39.121	49.874
Total	39.121	49.874

Banking Relations :	--
Auditors :
Name :	Bhupinder Shah and Company Chartered Accountant
Address :	C-12, Raj Nagar, C.H.B.S., Pitampura, New Delhi-110034, India

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.100/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
767000	Equity Shares	Rs.100/- each	Rs.76.700 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		76.700	76.700	76.700
2] Share Application Money		1.000	1.000	1.000
3] Reserves & Surplus		215.312	192.761	182.643
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		293.012	270.461	260.343
LOAN FUNDS
1] Secured Loans		331.176	233.622	264.379
2] Unsecured Loans		39.121	49.874	69.380
TOTAL BORROWING		370.297	283.496	333.759
DEFERRED TAX LIABILITIES		37.346	41.062	40.387
TOTAL		700.655	595.019	634.489
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		406.970	339.161	354.678
Capital work-in-progress		0.357	0.000	0.000
INVESTMENT		0.000	1.313	1.313
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	93.234	65.831	82.011
	Sundry Debtors	244.798	228.351	226.725
	Cash & Bank Balances	14.124	11.654	12.622
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	36.479	39.145	35.702
Total Current Assets		388.635	344.981	357.060
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	34.460	33.940	38.092
	Other Current Liabilities	52.043	46.670	29.566
	Provisions	8.804	9.826	10.904
Total Current Liabilities		95.307	90.436	78.562
Net Current Assets		293.328	254.545	278.498
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		700.655	595.019	634.489

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sale of Goods	744.231	709.694	661.163
		Supply of Services	1.383	1.015	0.602
		Other Income	11.717	4.314	4.031
		TOTAL (A)	757.331	715.023	665.796
Less	EXPENSES
		Material Cost	379.166	382.353	356.426
		Manufacturing Cost	108.437	85.567	79.146
		Personnel Expenses	85.390	72.062	65.282
		Administrative and other Expense	35.140	36.472	38.632
		Marketing Cost	33.609	39.112	23.521
		TOTAL (B)	641.742	615.566	563.007
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		155.589	99.457	102.789
Less	FINANCIAL EXPENSES (D)		38.086	29.618	32.816
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		77.503	69.839	69.973
Less/ Add	DEPRECIATION/ AMORTISATION (F)		49.863	49.220	52.856
	PROFIT BEFORE TAX (E-F) (G)		27.640	20.619	17.117
Less	TAX (H)		5.089	10.501	7.112
	PROFIT AFTER TAX (G-H) (I)		22.551	10.118	10.005
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		189.361	179.243	169.237
	BALANCE CARRIED TO THE B/S		211.912	189.361	179.242
	Earnings Per Share (Rs.)		2.90	13.19	NA

Particulars	31.03.2011
Sales Turnover (Approximately)	850.000

The above information has been parted by Mr. Manoj.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.98	1.42	1.50
Net Profit Margin (PBT/Sales)	(%)	3.71	2.91	2.59
Return on Total Assets (PBT/Total Assets}	(%)	3.47	3.01	2.41
Return on Investment (ROI) (PBT/Networth)		0.09	0.08	0.07
Debt Equity Ratio (Total Liability/Networth)		1.59	1.38	1.58
Current Ratio (Current Asset/Current Liability)		4.07	3.81	4.54

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10042041
Corporate identity number of the company	U18101DL1988PLC031992
Name of the company	KRF LIMITED
Address of the registered office or of the principal place of business in India of the company	B-7, Mayapuri, Industrial Area, Phase-II, New Delhi-110064, India
Type of charge	Immovable Property
Particular of charge holder	State Bank of India, Commercial Branch, South Extension Part-I, A-5 South Extension, New Delhi-110049, India
Email	rakesh_jain@sbi.co.in
Nature of description of the instrument creating or modifying the charge	C2-A ( Supplemental Agreement of Hypothecation of goods and Assets for Increase in the overall limit) C-5 ( Letter regarding The grant of individual limits within the overall limit )
Date of instrument Creating the charge	21.06.2011
Amount secured by the charge	Rs.292.200 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest WC (CC) -BR+4.00% TLs NEW -BR+4.50% SLC TL- BR+5.50% SLC WC- BR+5.00% or such other rate(s) specified by the bank from time to time. Terms of Repayment Working capital on demand Term loans existing - as per their existing repayment schedule Fresh Term Loan (I) - Term loan of Rs.17.700 millions will be repayable in 35 monthly installments w.e.f June 2011 after a moratorium period of 1 month. Term loan (II) -Term loan of Rs.10.000 millions will be repayable in 35 monthly installments w.e.f June 2011 after a moratorium period of 1 month. More details of repayment of fresh term loans are attached as per repayment Margin Stocks -25% Receivables -25%( cover period -120 days ) LC-20% BG-25% Extent and Operation of the charge 100% First exclusive charge on all the current assets and fixed assets ( except unit at B-113 Mayapuri I.E Phase-II New Delhi exclusively financed by Kotak Mahindra Bank)
Short particulars of the property charged	I) Working Capital :-First Hypothecation charge on entire current assets including raw materials , stores and spares , stock in process, finished goods including goods in transit II) Book-debts and receivables both present and future. Extension of charge over the entire fixed assets of the company except unit at B-113 Mayapuri I.E Phase-II New Delhi exclusively financed III) By Kotak Bank. IV) Term Loans: - First charge over the entire fixed assets of the company both present and future except unit at B-113 Mayapuri I.E Phase-II New Delhi exclusively financed by Kotak Bank.
Particulars of the present modification	Credit facilities sanctioned to the company now enhanced to Rs.292.200 Millions as under :- Cash credit ( Hypothecation) Rs.200.000 Millions Cash credit ( Book-debts ) Rs.(150.000) Millions TL -2-3-4 ( TUFS ) total Rs.16.300 Millions TL -3-4-5 (SLCTL) ( Non TUFS ) Rs.20.900 Millions LC/ Buyers credit Rs.20.000 Millions BG Rs.10.000 millions SLC WC Rs.10.000 Millions SLC TL Rs.15.000 Millions Total Rs.292.200 Millions

Fixed Assets:

· Plant and Machinery

· Electrical Equipments

· Office Equipments

· Computers

· Furniture and Fixtures

· Vehicles – Cars

· Land

· Building

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.44.43
UK Pound	1	Rs.71.90
Euro	1	Rs.63.40

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	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	NO
--AFFILIATION	YES/NO	NO
--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	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.