MIRA INFORM REPORT

Report Date :

11.04.2012

IDENTIFICATION DETAILS

Name :	REX-TONE INDUSTRIES LIMITED (w.e.f 26.03.2004)
Formerly Known As :	REX-TONE DYES AND INTERMEDIATES LIMITED
Registered Office :	501, Advent Atria, Chincholi Bunder Road, Malad (West), Mumbai – 400064, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.05.1994
Com. Reg. No.:	11-078452
Capital Investment / Paid-up Capital :	Rs.80.000 Millions
CIN No.: [Company Identification No.]	U24100MH1994PLC078452
TAN No.: [Tax Deduction & Collection Account No.]	MUMR14142C
PAN No.: [Permanent Account No.]	AAAFR4471Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Importer and Exporter of Reactive Dyes Acid Dyes Dye Intermediates, UV Inks, Bio Inks, Epson (Eco-Sol)
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 428000
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	501, Advent Atria, Chincholi Bunder Road, Malad (West), Mumbai – 400064, Maharashtra, India
Tel. No.:	91-22-28422415/28420880
Fax No.:	91-22-28407554/28899153
E-Mail :	harish@atinks.com

DIRECTORS

As on 07.06.2011

Name :

Mr. Harish Goswamy

Designation :

Managing director

Address :

41-B, Ruia Park Apartment, 47, J R M Marg, Juhu, Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

14.08.1941

Date of Appointment :

18.05.1994

DIN No.:

00046965

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	U24100MH1994PLC078452	REX-TONE INDUSTRIES LIMITED	Managing director	01-11-09	18-05-94	-	Active	NO
2	U65923MH1996PLC101731	REXTONE FINANCE LIMITED	Director	08-08-96	08-08-96	-	Active	NO
3	U24150MH1998PLC115539	GLOBEX LABORATORIES (R&D) LIMITED	Director	29-06-98	29-06-98	-	Active	NO

Name :

Mr. Saurabh Goswamy

Designation :

Managing director

Address :

41-B, Ruia Park Apartment, 47, J R M Marg, Juhu, Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

27.08.1974

Date of Appointment :

18.05.1994

DIN No.:

00047088

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	U24100MH1994PLC078452	REX-TONE INDUSTRIES LIMITED	Managing director	28-09-10	18-05-94	-	Active	NO
2	U65923MH1996PLC101731	REXTONE FINANCE LIMITED	Director	08-08-96	08-08-96	-	Active	NO
3	U24150MH1998PLC115539	GLOBEX LABORATORIES (R&D) LIMITED	Director	29-06-98	29-06-98	-	Active	NO

Name :

Mr. Neerav Goswamy

Designation :

Managing director

Address :

41-B, Ruia Park Apartment, 47, J R M Marg, Juhu, Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

27.08.1974

Date of Appointment :

18.05.1994

DIN No.:

00047149

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	U24100MH1994PLC078452	REX-TONE INDUSTRIES LIMITED	Managing director	28-09-10	18-05-94	-	Active	NO
2	U65923MH1996PLC101731	REXTONE FINANCE LIMITED	Director	08-08-96	08-08-96	-	Active	NO
3	U24150MH1998PLC115539	GLOBEX LABORATORIES (R AND D) LIMITED	Director	29-06-98	29-06-98	-	Active	NO

Name :

Mr. Ashish Arora

Designation :

Director

Address :

Flat No. 603, Gangotri Apartment, 7/216, Swroop Nagar, Kanpur – 208002, Uttar Pradesh, India

Date of Birth/Age :

28.03.1973

Date of Appointment :

24.03.2009

DIN No.:

01606216

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	U17116UP1999PTC024316	DELHI GARMENTS PRIVATE LIMITED	Director	31-03-99	31-03-99	-	Active	NO
2	U24241UP1999PTC024468	DELHI CONSTRUCTIONS PRIVATE LIMITED	Director	10-12-03	10-12-03	-	Active	NO
3	U45202PN2007PTC129602	SRISHTI AND DELHI HOUSING PRIVATE LIMITED	Director	15-02-07	15-02-07	27-04-11	Active	NO
4	U24100MH1994PLC078452	REX-TONE INDUSTRIES LIMITED	Director	19-06-10	24-03-09	-	Active	NO

Name :

Mr. Jeegar Ajit Mota

Designation :

Director

Address :

B-103, 1^st Floor, Prime Avenue, S V Road, Near Nanavati Hospital, Vile Parle (West), Mumbai – 400056, Maharashtra, India

Date of Birth/Age :

17.12.1974

Date of Appointment :

15.04.2009

DIN No.:

02602415

Name :

Mr. Alok Karulkar

Designation :

Director

Address :

1B, Sahil Apartment, Opposite Old Umra Police, Surat – 395007, Gujarat, India

Date of Birth/Age :

17.09.1967

Date of Appointment :

15.05.2010

DIN No.:

03074537

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 07.06.2011

Names of Shareholders	No. of Equity Shares	No. of Preference Shares
Harish Goswamy Jointly with Shakun Goswamy	1799967	400000
Shakun Goswamy Jointly with Harish Goswamy	1499967	340000
Saurabh Goswamy Jointly with Harish Goswamy	1200000	80000
Neerav Goswamy Jointly with Smita Goswamy	1200000	80000
Radhika Jaykrishna Jointly with Gokul Goswamy	300000	--
Globex Laboratories Private Limited, India	33	--
Rex Tone Finance Limited, India	33	1100000
TOTAL	6000000	2000000

Equity Share Break up (Percentage of Total Equity)

As on 07.06.2011

Category	Percentage
Bodies corporate	0.01
Directors or relatives of Directors	99.99
Total	100.00

BUSINESS DETAILS

Line of Business :

Importer and Exporter of Reactive Dyes Acid Dyes Dye Intermediates, UV Inks, Bio Inks, Epson (Eco-Sol)

Products :

Item Description	Item Code No.
Printing Ink	321519

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Canara Bank, Fort Main Branch, P. M. Road, Fort, Mumbai – 400001, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	62.090	71.054
Working capital loans banks secured	45.001	13.565
Loans taken for vehicles secured	5.381	5.086
Total	112.472	89.705
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loans directors unsecured	0.000	2.277
Other debt unsecured	9.033	0.000
Total	9.033	2.277

Banking Relations :	--
Auditors :
Name :	Desai Saksena and Associates Chartered Accountant
Address :	Laxmi Building, 1st floor, Sir PM Road,Fort, Mumbai- 400 001, Maharashtra, India
PAN.:	AABFD6281B
Associates:	Rextone Finance Limited Globex Laboratories (RandD) Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions
4000000	Preference Shares	Rs.10/- each	Rs.40.000 Millions
	TOTAL		Rs.160.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions
2000000	Preference Shares	Rs.10/- each	Rs.20.000 Millions
	TOTAL		Rs.80.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		80.000	40.000	31.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.026	46.030	19.639
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		107.026	86.030	50.639
LOAN FUNDS
1] Secured Loans		112.472	89.705	57.320
2] Unsecured Loans		9.033	2.277	4.949
TOTAL BORROWING		121.505	91.982	62.269
DEFERRED TAX LIABILITIES		8.107	8.175	3.699
TOTAL		236.638	186.187	116.607
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		130.081	124.138	59.537
Capital work-in-progress		2.200	0.358	16.832
INVESTMENT		0.000	0.100	0.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	92.205	60.914	33.411
	Sundry Debtors	19.002	30.759	44.678
	Cash & Bank Balances	13.954	25.324	9.387
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	34.882	40.548	33.973
Total Current Assets		160.043	157.545	121.449
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	39.885	68.787	51.870
	Other Current Liabilities	3.700	4.253	20.741
	Provisions	13.140	23.660	9.733
Total Current Liabilities		56.725	96.700	82.344
Net Current Assets		103.318	60.845	39.105
MISCELLANEOUS EXPENSES		1.039	0.746	1.033
TOTAL		236.638	186.187	116.607

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	444.081	387.614	363.711
		Other Income	2.260	9.029	2.158
		TOTAL (A)	446.341	396.643	365.869
Less	EXPENSES
		Consumption materials changes inventories	278.947	236.076	323.498
		Manufacturing other operating expenses	103.701	79.973
		Research Development	0.440	0.145
		TOTAL (B)	383.088	316.194	323.498
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		63.253	80.449	42.371
Less	FINANCIAL EXPENSES (D)		13.715	10.841	5.806
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		49.538	69.608	36.565
Less/ Add	DEPRECIATION/ AMORTISATION (F)		19.901	14.792	6.083
	PROFIT BEFORE TAX (E-F) (G)		29.637	54.816	30.482
Less	TAX (H)		(0.688)	14.385	6.681
	PROFIT AFTER TAX (G-H) (I)		30.325	40.431	23.801
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		37.485	16.093	6.016
Less	APPROPRIATIONS		54.329	19.039	13.724
	BALANCE CARRIED TO THE B/S		13.481	37.485	16.093
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods	147.711	104.207	64.922
	TOTAL EARNINGS		147.711	104.207	64.922
	IMPORTS
		Raw Materials	NA	149.584	81.570
		Capital Goods	NA	35.985	0.818
	TOTAL IMPORTS		NA	185.569	82.388
	Earnings Per Share (Rs.)		3.58	19.34	11.26

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.79	10.19	6.51
Net Profit Margin (PBT/Sales)	(%)	6.67	14.14	8.38
Return on Total Assets (PBT/Total Assets}	(%)	10.21	19.46	16.84
Return on Investment (ROI) (PBT/Networth)		0.28	0.64	0.60
Debt Equity Ratio (Total Liability/Networth)		1.06	2.19	2.85
Current Ratio (Current Asset/Current Liability)		2.82	1.63	1.47

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

Form 8

Corporate identity number of the company	`U24100MH1994PLC078452
Name of the company	REX-TONE INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	501, Advent Atria, Chincholi Bunder Road, Malad (West), Mumbai – 400064, Maharashtra, India Email: harish@atinks.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10199900
Type of charge	Immovable Property
Particular of charge holder	Canara Bank, Fort Main Branch, P. M. Road, Fort, Mumbai – 400001, Maharashtra, India Email: suyashri@vsnl.com
Nature of instrument creating charge	No Instrument. Letter Evidencing Deposit of Title Deeds (LEDTD) (2 Nos.) by deposit of Title Deeds in respect of Immovable Properties situated at Goregaon, Mumbai and Makanpura, Vadodara both on 18/06/2011, both modifying a single charge.
Date of instrument Creating the charge	18.06.2011
Amount secured by the charge	Rs.224.573 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanction letter or as stipulated by Bank from time to time. Terms of Repayment As per sanction letter or as stipulated by Bank from time to time. Margin As per sanction letter or as stipulated by Bank from time to time. Extent and Operation of the charge Security by way of EM by deposit of title deeds in respect of imm. properties viz (1) Shop No. 16, Basement, Goregaon Mulund Link Road, Filmcity Rd, Goregaon (E) Mumbai and (2) Survey No. 610P and 611P, adm. 889.35 sq.mtrs at Makarpura, Vadodara, as des. in Sch. A and B to respective LEDTD, given earlier shall extend as security for the additional limits of Rs.2.000 millions. Thus the charge on aforesaid immovable properties shall stand enhanced from Rs.222.573 millions to Rs.224.573 millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Deposit of Title deed in respect of imm. property of the Co. viz.Shop No.16, Basement, adm. 415 sq.ft. at Goregaon Mulund Link Road, Film City Rd., Goregaon (East) Mumbai. Deposit of Title Deed in respect of immovable Property of Company situated at Survey No. 610P and 611P, adm. 889.35 sq. mtrs at Makarpura, Vadodara.
Date of instrument modifying the charge	26.11.2010
Particulars of the present modification	Vide this modification, Security by way of EM by deposit of title deeds in respect of immovable properties viz (1) Shop No. 16, Basement, Goregaon Mulund Link Rd, Filmcity Rd, Goregaon (E) Mumbai and (2) Survey No. 610P & 611P, adm. 889.35 sq.mtrs at Makarpura, Vadodara, as des. in Sch. A & B to respective LEDTD, given earlier shall extend as security for the additional limits of Rs.2.000 millions. Thus the charge on aforesaid immovable properties shall stand enhanced from Rs.222.573 millions to Rs.224.573 millions.

Contingent Liability

Bills Discounted Rs.38.807 Millions Previous year of Rs.Nil)

Fixed assets

• Land
• Office Premises
• Building
• Plant and Machinery
• Furniture and Fixture
• Computer
• Electric Installation
• Motor Vehicle
• Office Equipment
• ETP Plant
• Lab Equipment
• Refrigerator

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.51.20
UK Pound	1	Rs.81.50
Euro	1	Rs.67.15

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	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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

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.