MIRA INFORM REPORT

Report Date :

01.10.2011

IDENTIFICATION DETAILS

Name :	K D FABRICS PRIVATE LIMITED
Registered Office :	Shree Arcade, 2^nd Floor, Block – A-2, Jogendra Kaviraj Row, Near Kalakar Street Post Office, Kolkata – 700 007, West Bengal
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	21.03.1997
Com. Reg. No.:	21-83575
Capital Investment / Paid-up Capital :	Rs.4.900 Millions
CIN No.: [Company Identification No.]	U18101WB1997PTC083575
TAN No.: [Tax Deduction & Collection Account No.]	CALK02246G
PAN No.: [Permanent Account No.]	AABCK4115A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Embroidered sarees and all types of fashion sarees.
No. of Employees :	20 (Office 8, Factory 12)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 25188
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a well established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. Company can be considered for business dealings with some 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 PARTED BY

Name :	Mr. Pankaj Jain
Designation :	Director
Contact No.:	91-9831111311
Date :	26.09.2011

LOCATIONS

Registered Office/Factory :	Shree Arcade, 2^nd Floor, Block – A-2, Jogendra Kaviraj Row, Near Kalakar Street Post Office, Kolkata – 700 007, West Bengal, India
Tel. No.:	91-33-32007777 / 22597777 / 8167 / 8168
E-Mail :	sumitchabba@hotmail.com sanskriti_theculture@vsnl.net k.d.fabricspvtltd@gmail.com
Website:	www.kdfabrics.com
Locations:	Owned

DIRECTORS

AS ON 20.09.2010

Name :	Mr. Dharam Chand Jain
Designation :	Director
Address :	Flat 9A, Avani Heights, 59A, Chowringhee Road, Kolkata – 700 020, West Bengal, India
Date of Birth/Age :	28.08.1946
Qualification :	B.com
Date of Appointment :	21.03.1997

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U63090WB1991PTC051560	TRISTAR AGENCIES PVT.LTD.	Director	11/08/1994	11/08/1994	19/04/2007	Active	NO
2	U18101WB1997PTC083575	K.D. FABRICS PRIVATE LIMITED	Director	21/03/1997	21/03/1997	-	Active	NO
3	U51311WB1994PTC066741	K.D.SAREES PVT LTD	Director	01/12/1997	01/12/1997	27/03/2009	Active	NO
4	L17299WB1985PLC038517	RUPA & COMPANY LTD	Director	31/01/2003	31/01/2003	-	Active	NO
5	U17290WB2007PTC120842	K. D. SAREE EMPORIUM PRIVATE LIMITED	Director	05/12/2007	05/12/2007	-	Active	NO
6	U45203WB2006PTC107722	MODI PLAZA PVT LTD	Director	01/02/2008	01/02/2008	-	Active	NO
7	U70101WB2006PTC110731	MODI APARTMENTS PRIVATE LIMITED	Director	01/02/2008	01/02/2008	-	Active	NO
8	U70109WB2011PTC164272	PKM CONSTRUCTION PRIVATE LIMITED	Director	28/06/2011	28/06/2011	-	Active	NO

Name :	Mr. Pankaj Kumar Jain
Designation :	Director
Address :	Flat 9A, Avani Heights, 59A, Chowringhee Road, Kolkata – 700 020, West Bengal, India
Date of Birth/Age :	01.11.1970
Qualification :	B.com
Date of Appointment :	01.12.1997

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51311WB1994PTC066741	K.D.SAREES PVT LTD	Director	19/12/1994	19/12/1994	27/03/2009	Active	NO
2	U70101WB1995PTC072765	SIKHAR BUILDERS PVT LTD	Director	10/07/1995	10/07/1995	-	Active	NO
3	U70101WB1995PTC073294	P P MAKERS PVT.LTD.	Director	02/08/1995	02/08/1995	-	Active	NO
4	U18101WB1997PTC083575	K.D. FABRICS PRIVATE LIMITED	Director	01/12/1997	01/12/1997	-	Active	NO
5	U17290WB2007PTC120842	K. D. SAREE EMPORIUM PRIVATE LIMITED	Director	05/12/2007	05/12/2007	-	Active	NO
6	U45203WB2006PTC107722	MODI PLAZA PVT LTD	Director	01/02/2008	01/02/2008	-	Active	NO
7	U70101WB2006PTC110731	MODI APARTMENTS PRIVATE LIMITED	Director	01/02/2008	01/02/2008	-	Active	NO
8	U51909WB2010PTC156184	SURBHI EMBROIDERIES PRIVATE LIMITED	Director	11/03/2011	11/03/2011	-	Active	NO
9	U70109WB2011PTC162300	JPR PROPERTIES PRIVATE LIMITED	Director	04/05/2011	04/05/2011	-	Active	NO

Name :	Mr. Pravin Jain
Designation :	Director
Address :	Flat 9A, Avani Heights, 59A, Chowringhee Road, Kolkata – 700 020, West Bengal, India
Date of Birth/Age :	17.01.1975
Qualification :	B.com.
Date of Appointment :	01.12.1997

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U18101WB1997PTC083575	K.D. FABRICS PRIVATE LIMITED	Director	01/12/1997	01/12/1997	-	Active	NO
2	U51311WB1994PTC066741	K.D.SAREES PVT LTD	Director	01/12/1997	01/12/1997	27/03/2009	Active	NO
3	U45203WB2006PTC107722	MODI PLAZA PVT LTD	Director	03/02/2006	03/02/2006	-	Active	NO
4	U45203WB2006PTC107720	MODI NIRMAAN PVT LTD	Director	03/02/2006	03/02/2006	27/03/2009	Active	NO
5	U70101WB2006PTC110731	MODI APARTMENTS PRIVATE LIMITED	Director	24/07/2006	24/07/2006	-	Active	NO
6	U70101WB2006PTC110723	K.D.PLAZA PVT LTD	Director	24/07/2006	24/07/2006	28/03/2009	Active	NO
7	U17290WB2007PTC120842	K. D. SAREE EMPORIUM PRIVATE LIMITED	Director	05/12/2007	05/12/2007	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 20.09.2010

Names of Shareholders	No. of Shares
Dharam Chand Jain	65000
Pankaj Kumar Jain	77600
Pravin Jain	1000
Pankaj Jain	54400
Sushma Jain	31000
Sulochana Devi Jain	1000
Dharam Chand Saraogi	25000
P P Makers Private Limited, Kolkata	60000
Priti Jain	25000
Modi Plaza Private Limited, Kolkata	25000
Modi Apartents Private Limited, Kolkata	25000

Equity shares Breakup (percentage of total equity)

AS ON 20.09.2010

Category	Percentage
Bodies corporate	43.00
Directors or relatives of Director	57.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Embroidered sarees and all types of fashion sarees.
Terms :
Selling :	Cash, Credit (90 days)
Purchasing :	Cash, Credit (90 days)

GENERAL INFORMATION

Customers :

Wholesalers

No. of Employees :

20 (Office 8, Factory 12)

Bankers :

· HFDC Bank Limited, HFDC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

· ICICI Bank, Bura Bazar, Mumbai

Facilities :

Cash Credit 15.000 (Million)

SECURED LOANS	AS ON 31.03.2010 RS. IN MILLIONS	AS ON 31.03.2009 RS. IN MILLIONS
From HFDC Bank (Against hypothecation of stock, book debts and equitable mortgage of ownership shop at H.O.)	11.489	6.690
Total	11.489	6.690
UNSECURED LOAN	AS ON 31.03.2010 RS. IN MILLIONS	AS ON 31.03.2009 RS. IN MILLIONS
From Bodies Corporate	61.876	49.500
Total	61.876	49.500

Banking Relations :

--

Auditors :

Name :

Santosh Kumar Jain

Chartered Accountants

Address :

2, Draper Lane, Govt. Place East, Kolkata – 700 069, West Bengal, India

Associates/Subsidiaries :

• Surbhi Enterprises, Jaipur
• K D Creations, Surat

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
490000	Equity Shares	Rs.10/- each	Rs.4.900 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2011
Sales Turnover (Approximately)	90.000

Expected Sales (2011-2012) : Rs.150.000 Millions

The above information has been parted by Mr. Pankaj Jain (Director)

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		4.900	4.900	4.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.397	1.122	1.049
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6.297	6.022	5.949
LOAN FUNDS
1] Secured Loans		11.489	6.690	4.669
2] Unsecured Loans		61.876	49.500	32.068
TOTAL BORROWING		73.365	56.190	36.736
DEFERRED TAX LIABILITIES		0.285	0.233	0.000
TOTAL		79.947	62.445	42.684
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.776	8.370	8.275
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.000	1.000	1.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.854	29.346	15.648
	Sundry Debtors	28.525	25.178	18.789
	Cash & Bank Balances	1.739	1.780	1.306
	Other Current Assets	0.090	0.185	0.200
	Loans & Advances	1.367	1.175	0.985
Total Current Assets		77.575	57.664	36.928
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.307	4.544	3.516
	Other Current Liabilities	0.097	0.038
	Provisions	0.000	0.006	0.002
Total Current Liabilities		7.404	4.588	3.519
Net Current Assets		70.171	53.075	33.409
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		79.947	62.445	42.684

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	NA	NA	50.992
		Other Income	NA	NA	0.000
		TOTAL	NA	NA	50.992
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX		0.378	0.415	0.409
Less	TAX		0.103	0.342	0.103
	PROFIT AFTER TAX		0.275	0.073	0.306
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.122	1.049	0.743
	BALANCE CARRIED TO THE B/S		1.397	1.122	1.049

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	NA	0.60
Net Profit Margin (PBT/Sales)	(%)	NA	NA	0.80
Return on Total Assets (PBT/Total Assets}	(%)	0.44	0.71	0.90
Return on Investment (ROI) (PBT/Networth)		0.06	0.06	0.07
Debt Equity Ratio (Total Liability/Networth)		12.83	0.76	6.77
Current Ratio (Current Asset/Current Liability)		10.48	12.56	10.49

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

FORM NO. 8

Corporate identity number of the company	U18101WB1997PTC083575
Name of the company	K D FABRICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2 Jogendra Kaviraj Row, Kolkata – 700 007, West Bengal, India
This form is for	Modification of charge
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	HFDC Bank Limited HFDC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India
Nature of instrument creating charge	Supplementary Letter of Hypothecation.
Date of instrument Creating the charge	06.04.2011
Amount secured by the charge	Rs.21.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment : On Demand Margin: As may be stipulated by the Bank from time to time. Extent and Operation Of the Charge : Hypothecation by way of First Charge on Company's Stocks, Book Debts, etc., to secure as a continuing security as mentioned in Column No.15 below for the repayment of Rs.21.000 millions together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank.
Short particulars of the property charged	Stock in Trade, consisting of raw materials, goods in process of manufacturing finished goods, and other merchandise whatsoever being movable properties All the debts, that is, all the book debts, outstandings, monies receivables, claims, bills, invoice documents, contracts, guarantees, and rights
Date Of Las Modification	06/04/2011
Particulars of the present modification	The Charge shall now stand increased from Rs.15.000 Millions to Rs.21.000 Millions, against the security of Stocks and Book Debts of the Company

Corporate identity number of the company	U18101WB1997PTC083575
Name of the company	K D FABRICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2 Jogendra Kaviraj Row, Kolkata – 700 007, West Bengal, India
This form is for	Modification of charge
Type of charge	· Immovable Property · Book Debts · Movable Property · Floating Charge
Particular of charge holder	HFDC Bank Limited HFDC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India
Nature of instrument creating charge	· Letter of Hypothecation · Mortgage by deposit of title deeds
Date of instrument Creating the charge	02.02.2010
Amount secured by the charge	Rs.15.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest at the rate as may be Communicated by the Bank from time to time. Terms of Repayment : On Demand Margin: As may be stipulated by the Bank from time to time. Extent and Operation Of the Charge : (a) Hypothecation by way of First Charge on Company's Stocks, Book Debts etc., to secure as a continuing security as mentioned in Column No.15 below, (b) The Company accorded & gave oral consent to Bank to continue to hold & retain the title deeds (by way of Constructive delivery) in respect of its immovable properties as mentioned under Item No.15 below, as security for repayment of Rs.150 Lacs by the company, together with principal, interest, liquidated damages, costs, charges & expenses.
Short particulars of the property charged	Hypothecation by way of first charge over the Stocks and Book Debts of the Company.
Particulars of the present modification	Immovable property lying and situate at Sree Arcade Apartment, 2nd Floor (New Side) Unit No.205, upstairs of HDFC Bank at Burrabazar, Kol-700007.

Corporate identity number of the company	U18101WB1997PTC083575
Name of the company	K D FABRICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2 Jogendra Kaviraj Row, Kolkata – 700 007, West Bengal, India
This form is for	Creation of charge
Type of charge	· Hypothecation · Equitable mortgage or mortgage of property by depositing the title deeds
Particular of charge holder	HFDC Bank Limited HFDC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India
Nature of instrument creating charge	· Letter of Hypothecation · Mortgage by deposit of title deeds
Date of instrument Creating the charge	28.04.2006
Amount secured by the charge	Rs.7.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Interest as per Banks / RBI guidelines from time to time
Description of the property charged indicating whether it is a charged on	· Immovable properties · Stock in trade · Book debts
Particulars of the property charged	Hypothecation of stocks and book debts and Equitable mortgage of Unit No. 205, on the 2^nd Floor, premises No.2, at Jogendra Kaviraj Road, Kolkata – 700 007

Fixed Assets

· Goodwill

· Ownership shop (H.O.)

· Building Roof

· Building (Jaipur)

· Air Conditions

· Furniture and Fixtures

· Vaccum Cleaner

· Car

· Refrigerator

· Air Purifier

· Aquaguard

· Telephone

· Computer

· Cycle

· Electric Fittings and Equipment

· Home Theatre

· Camera

· EPABX

· Telephone

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.48.92
UK Pound	1	Rs.76.51
Euro	1	Rs.66.64

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	2
--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		27

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.