MIRA INFORM REPORT

Report Date :

10.08.2012

IDENTIFICATION DETAILS

Name :	KHOSLA PROFIL PRIVATE LIMITED
Registered Office :	Unit No. 3, Gut No. 140, 141, Village Kudus, Taluka Wada, Thane 421 312, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.04.1989
Com. Reg. No.:	11-051429
Capital Investment / Paid-up Capital :	Rs.21.500 Millions
CIN No.: [Company Identification No.]	U99999MH1989PTC051429
TAN No.: [Tax Deduction & Collection Account No.]	MUMK11480A
PAN No.: [Permanent Account No.]	AAACK1791K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Industrial Fabrics and Filter Fabrics used in Tyre Industry etc.
No. of Employees :	200 (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 660000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. It has recorded an increase in its sales turnover and profitability during 2011. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB- (Long Term Bank Facilities)
Rating Explanation	Moderate Credit risk.
Date	11.07.2012

Rating Agency Name	CARE
Rating	A3 (Short Term Bank Facilities)
Rating Explanation	Moderate degree of safety and higher Credit risk.
Date	11.07.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Sundaram
Designation :	Accounts Manager
Contact No.:	91-22-30613061
Date :	09.08.2012

LOCATIONS

Registered Office :	Unit No. 3, Gut No. 140, 141, Village Kudus, Taluka Wada, Thane 421 312, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	purity@vsnl.com
Bandra Office :	2, Laxmi Towers, 8^th Floor, B Wing, Behind ICICI Bank, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India
Tel. No.:	91-22-30613061
Fax No.:	91-22-30613062
E-Mail :	purity@vsnl.com kpplindustrial@puritytex.com kpplexports@puritytex.com
Factory :	Gut No.201, Village Khupari, Taluka Wada, District Thane, Maharashtra
Tel. No.:	91-22-30613061
Fax No.:	91-22-30613062
E-Mail :	purity@vsnl.com
Website :	http://www.puritytex.com
Branches :	· 1048, Munusamy Salai, K K Nagar (West), Chennai – 600078, Tamilnadu · 510, Vikas Deep, Plot No.18, Laxmi Nagar District Centre, Vikas Marg, Delhi – 110092

DIRECTORS

As on 27.09.2011

Name :	Mr. Pramod Vedprakash Khosla
Designation :	Director
Address :	501, Flora, Near Almedia Park, Bandra (West), Mumbai – 400050, Maharashtra
Date of Birth/Age :	04.09.1955
Date of Appointment :	27.11.2001
DIN No.:	00001627
Name :	Mr. Susham Pramod Khosla
Designation :	Director
Address :	501, Flora, Near Almedia Park, Bandra (West), Mumbai – 400050, Maharashtra
Date of Birth/Age :	04.06.1959
Date of Appointment :	01.10.1990
DIN No.:	0001629
Name :	Mr. Rajkumar V. Khosla
Designation :	Director
Date of Birth/Age :	07.05.1961

KEY EXECUTIVES

Name :	Mr. Sundaram
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2011

Names of Shareholders	No. of Shares
Pramod Vedprakash Khosla	151000
Susham Pramod Khosla	230595

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Industrial Fabrics and Filter Fabrics used in Tyre Industry etc.
Products :	Filter Fabrics, Fabrics for Mechanical rubber Goods, Outdoor fabrics
Exports :
Products :	Tyre Industry
Countries :	· U.S.A · Australia · New Zealand · Europe · Middle East Countries · Thailand · Bangladesh · Sri Lanka · Nepal
Imports :
Products :	Raw Material
Countries :	China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· RSWM Limited

Customers :

Wholesalers and Retailers

· Hindustan Zine

· Rajasthan Spinning and Weaving Mills Limited

No. of Employees :

200 (Approximately)

Bankers :

· Central Bank of India, Ballard Estate Branch, Marshall Building, Shoorji Vallabhadas Marg, Mumbai 400 038, Maharashtra, India

· NKGSB Cooperation Bank Limited Jagruti, L. J Road, Mahim (West), Mumbai – 400016, Maharasthra, India

Facilities :

CC and TL : Rs. 400.000 Millions

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
From Central Bank Of India
Cash Credit and other Working Capital Facilities	183.882	142.124
Term Loan (Secured by first charge onblock of assets and equitable mortgage Of land &building Khupri and hypothecation of stocks, receivables and book debts and personally guaranted by the directors of the company	91.690	112.328
Tern Loan from lClCl and Kotak Mahindra Bank (Secured by hypothecation of Motor Cars)	3.173	2.861
Term Loan from The North Kanara Co-Op Bank (Secured by hypothecation of specific machinery)	2.346	2.866
Total	281.091	260.179
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
From Directors	17.047	12.037
From Share Holder	33.752	30.511
Differed Sales Tax Liability under Package Scheme of Incentives	34.833	32.504
Total	85.632	75.052

Banking Relations :	--
Auditors :
Name :	Bhuchar and Chandak Chartered Accountant
Address :	A 1, Silverline, J.B. Nagar, Andheri (East), Mumbai – 400059, Maharashtra
Tel. No.:	91-22-8373162/28348138/28235332
Fax No.:	91-22-8202830
E-Mail :	bandc.ca@gmail.com
PAN.:	AAAFB0175H
Sister Concern :	· Purity Textile Private Limited · Purity Techtextile Private Limited · Khosla Filters – Gujarat · Khosla Investment Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs.10/- each	Rs.90.000 Millions
1000000	Preference Shares	Rs.10/- each	Rs.10.000 Millions
	Total		Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1150000	Equity Shares	Rs.10/- each	Rs.11.500 Millions
1000000	Preference Shares	Rs.10/- each	Rs.10.000 Millions
	Total		Rs.21.500 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		21.500	24.619	12.500
2] Share Application Money		0.000	0.0000	0.000
3] Reserves & Surplus		144.868	111.881	93.515
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		166.368	136.500	106.015
LOAN FUNDS
1] Secured Loans		281.091	260.179	227.370
2] Unsecured Loans		85.632	75.052	68.096
TOTAL BORROWING		366.723	335.231	295.466
DEFERRED TAX LIABILITIES		18.127	19.396	11.443
TOTAL		551.218	491.127	412.924
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		240.407	261.220	159.182
Capital work-in-progress		0.000	0.000	37.879
INVESTMENT		5.076	5.076	0.025
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	177.692	116.728	87.033
	Sundry Debtors	164.980	168.205	163.323
	Cash & Bank Balances	15.264	16.178	8.527
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	147.015	68.843	81.335
Total Current Assets		504.951	369.954	340.218
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	137.795	103.304	78.928
	Other Current Liabilities	24.546	19.426	19.107
	Provisions	36.875	22.393	26.345
Total Current Liabilities		199.216	145.123	124.380
Net Current Assets		305.735	224.831	215.838
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		551.218	491.127	412.924

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	714.711	576.478	582.432
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		Office Expenses	NA	NA	NA
		Administrative Expenses	NA	NA	NA
		Advertising Expenses	NA	NA	NA
		TOTAL (B)	NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		115.071	100.623	90.884
Less	FINANCIAL EXPENSES (D)		35.806	46.372	52.200
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		79.265	54.251	38.684
Less/ Add	DEPRECIATION/ AMORTISATION (F)		34.258	31.078	18.650
	PROFIT BEFORE TAX (E-F) (G)		45.007	23.173	20.034
Less	TAX (H)		11.477	13.078	7.815
	PROFIT AFTER TAX (G-H) (I)		33.530	10.095	12.219
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		96.953	91.515	80.653
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.307	0.000
		Dividend distribution tax	0.000	1.850	0.197
		Dividend	0.000	2.500	1.160
	BALANCE CARRIED TO THE B/S		0.000	96.953	91.515
	Earnings Per Share (Rs.)		15.60	NA	NA

Particulars	31.03.2012
Sales Turnover (Approximately)	900.000

Expected Sales (2012-2013): Rs.1000.000 Millions

The above information has been parted by Mr. Sundaram – Accounts Manager

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	4.69	4.02	3.44
Return on Total Assets (PBT/Total Assets}	(%)	8.91	6.26	5.89
Return on Investment (ROI) (PBT/Networth)		0.27	0.17	0.19
Debt Equity Ratio (Total Liability/Networth)		3.40	3.52	3.96
Current Ratio (Current Asset/Current Liability)		2.53	2.55	2.74

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	137.795	103.304	78.928

Sr. No.	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	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	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
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
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

The Registered Office of the Company has been shifted from 251, TTC Industries Area, MIDC, Thane Belapur Road, Navi Mumbai – 400701, Maharashtra, India to the present w. e. f. 01.04.2007

YEAR IN RETROSPECT

The Company achieved sales of Rs.714.711 Millions during the year compared to Rs.576.478 Millions during the previous year. The Company earned a profit of Rs.33.530 Millions after provision for tax, and deferred tax during the year compared to net profit of Rs.10.095 Millions during the previous year.

EXPORTS

In post reforms era of the twenties, the thrust of the Government is on exports. The Company achieved exports of Rs.448.270 Millions during the year compared to Rs.343.156 Millions during the previous year.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U99999MH1989PTC051429
Name of the company	KHOSLA PROFIL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No. 3, Gut No. 140, 141, Village Kudus, Taluka Wada, Thane 421 312, Maharashtra, India Email: purity@vsnl.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90151845
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Central Bank of India, Ballard Estate Branch, Marshall Building, Shoorji Vallabhadas Marg, Mumbai 400 038, Maharashtra, India Email: sborase@gmail.com
Nature of instrument creating charge	1) Extension of Equitable Mortgage For Rs.509.400 Millions Dated: - 27.06.2011 2) Agreement of Hypothecation of Goods to Secure-Letter of Cash Credit (DA BASIS) Dated-27.06.2011 3) Agreement of Hypothecation to secure demand cash credit against goods Dated:- 27.06.2011 4) Agreement of Hypothecation to secure packing credit against goods Dated:- 27.06.2011 5) Supplemental Agreement Dated:-27.06.2011 6) Agreement of Hypothecation Dated:- 27.06.2011 7) Agreement of Hypothecation of Book Debts
Date of instrument Creating the charge	27.06.2011
Amount secured by the charge	Rs.509.400 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 4.5% p.a. above the Base Rate. Extent and Operation of the charge The enhanced facilities from Rs.368.700 Millions to Rs.509.400 Millions are secured by hypothecation of goods, book debts, machinery and Extension of Equitable mortgage of immovable properties at Gut No.201 and 192, Village Khupari, Taluka Wada, Dist. Thane. Others
Short particulars of the property or asset(s) charged (including complete address and location of the property)	1) Hypothecation of stocks of raw materials such as consumable stores ad spares, both present and future (2) Hypothecation of all present and future book debts outstanding monies receivable claims, bills, rights to or immovable properties and moveable assets 3) Hypothecation of all all tangible, moveable properties and assets 4) Equitable Mortgage of land and building situated at Gut no.201 Village Khupari, Taluka Wada Dist. Thane admeasuring 15600 sq. meters built up area 80082 sq. feet consisting of land building structures,erections and industrial gala, constructed 5) Equitable Mortgage of land and building situated at Gut no.192, 1-H-71-R, 9-PR, Village Khupari, Taluka Wada Dist. Thane admeasuring 17190 sq. meters consisting of land building structures,erections to be constructed
Date of instrument modifying the charge	05.02.2011
Particulars of the present modification	By this modification aggregate facilities increased from Rs.368.700 Millions to Rs.509.400 Millions and Title deeds for additional immovable properties at Gut No. 192, 1-H-71-R, 9-PR, Village Khupari, Taluka Wada, Dist. Thane deposited with the Bank as security.

TRADE REFERENCE

· RSWM Limited

· Hindustan Zine

· Rajasthan Spinning and Weaving Mills Limited

FIXED ASSETS

• Leasehold land
• Freehold land and building (Wada)
• Factory building
• Plant and machinery
• Factory Equipments
• Electrical Fittings
• Office equipments
• Computer
• Furniture and fixtures
• Vehicle
• Residential flat At Kudus

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.55.17
UK Pound	1	Rs.86.42
Euro	1	Rs.68.26

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	YES
--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.