MIRA INFORM REPORT

Report Date :

17.12.2012

IDENTIFICATION DETAILS

Name :	KOTHARI SPINNERS PRIVATE LIMITED
Registered Office :	57-66, Industrial Area, Rani Bazar, Bikaner-331401, Rajasthan
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.07.1999
Com. Reg. No.:	17-015784
Capital Investment / Paid-up Capital :	Rs. 9.100 millions
CIN No.: [Company Identification No.]	U17118RJ1999PTC015784
TAN No.: [Tax Deduction & Collection Account No.]	JDHK01396D
PAN No.: [Permanent Account No.]	AABCK2703J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Carpet Woolen Yarn.
No. of Employees :	Not Available

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 44000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company is low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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.

LOCATIONS

Registered Office :	57-66, Industrial Area, Rani Bazar, Bikaner-331401, Rajasthan, India
Tel. No.:	91-151-2520480
Mobile No.:	91-9829217814 (Mr. Parveen Kothari)
Fax No.:	91-151-2202647
E-Mail :	choprarajesh81@hotmail.com kspl@123india.com

DIRECTORS

As on 29.09.2012

Name :

Mr. Jitesh Buccha

Designation :

Director

Address :

Golechha Mohala, Rampuria Street, Bikaner-334001, Rajasthan, India

Date of Birth/Age :

05.11.1977

Date of Appointment :

26.10.2001

DIN No.:

00365589

Name :

Mr. Sunil Sethia

Designation :

Director

Address :

‘C’, Scheme, Pawan Puri, Bikaner-334001, Rajasthan, India

Date of Birth/Age :

08.12.1963

Date of Appointment :

06.06.2003

DIN No.:

00397906

Name :

Mr. Praveen Kumar Kothari

Designation :

Director

Address :

11, Industrial Area, Rani Bazar, Bikaner-334001, Rajasthan, India

Date of Birth/Age :

21.05.1970

Date of Appointment :

26.07.1999

DIN No.:

00397960

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17118RJ1999PTC015784	KOTHARI SPINNERS PRIVATE LIMITED	Director	26/07/1999	26/07/1999	-	Active	NO
2	U51109RJ2004PTC019946	ARIHANT COMMODITIES PRIVATE LIMITED	Director	30/11/2004	30/11/2004	-	Active	NO

Name :

Ms. Seema Kothari

Designation :

Director

Address :

11, Industrial Area, Rani Bazar, Bikaner-334001, Rajasthan, India

Date of Birth/Age :

11.09.1974

Date of Appointment :

10.09.2003

DIN No.:

00398026

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Praveen Kumar Kothari	209200
Kamal Kishore Kothari	20000
Seema Kothari	480500
H. Praveen Kumar Kothari	65000
Kanchan Devi Kothari	50000
Chandra Devi Surana	27500
Om Surana	22500
Saroj Bihani	100
Sunita Kothari	10000
Jayshree Kothari	10000
Nirmal Kumar Kothari	5000
Varsha Bakshi	100
Mirigendra Bakshi	100
Jitesh Buccha	10000
Total	910000

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Supplier of Carpet Woolen Yarn.
Products :	Acrylic dyed yarn Fun yarn Stitching yarn Glitter yarn Texturised yarn Nylon filament yarn

GENERAL INFORMATION

Suppliers :

• M. A. Agencies
• S.M. Wood Bhadohi
• S.K. Traders
• Delux Shipping Agency Private Limited
• Munshi Road Carriers
• Specchetto Lane
• Shree Jain Chemical Industries

Bankers :

• Bank of Baroda
• ICICI Bank Limited
• HDFC Bank Limited

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
From Bank	5.010	5.928
Total	5.010	5.928
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
From Directors, Shareholders and Relatives of Director	7.455	6.746
Total	7.455	6.746

Banking Relations :	--
Auditors :
Name :	M Surana and Company Chartered Accountants
Address :	13 Industrial Area, Rani Bazar, Bikaner-334001, Rajasthan, India
PAN No.:	AEMPS9241P

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
910000	Equity Shares	Rs.10/- each	Rs. 9.100 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		9.100	9.100	9.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.978	1.783	1.564
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		11.078	10.883	10.664
LOAN FUNDS
1] Secured Loans		5.010	5.928	5.630
2] Unsecured Loans		7.455	6.746	7.946
TOTAL BORROWING		12.465	12.674	13.576
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		23.543	23.557	24.240
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.072	8.160	7.826
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.040	0.008	0.015
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.386	10.521	9.628
	Sundry Debtors	14.729	13.972	19.403
	Cash & Bank Balances	0.099	1.536	0.782
	Other Current Assets	0.202	0.175	0.175
	Loans & Advances	0.906	0.746	0.358
Total Current Assets		26.322	26.950	30.346
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.822	10.161	13.502
	Other Current Liabilities	0.000	0.000	0.065
	Provisions	1.069	1.400	0.380
Total Current Liabilities		9.891	11.561	13.947
Net Current Assets		16.431	15.389	16.399
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		23.543	23.557	24.240

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	52.529	62.548	35.878
		Other Income	0.077	0.165	2.773
		TOTAL (A)	52.606	62.713	38.651
Less	EXPENSES
		Cost of Material Consumed	39.929	48.220	35.728
		Personnel Expenditure	4.593	4.954
		General and Other Administrative Expenses	4.889	6.050
		TOTAL (B)	49.411	59.224	35.728
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.195	3.489	2.923
Less	FINANCIAL EXPENSES (D)		1.888	2.188	1.852
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.307	1.301	1.071
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.994	0.934	0.951
	PROFIT BEFORE TAX (E-F) (G)		0.313	0.367	0.120
Less	TAX (H)		0.117	0.149	0.061
	PROFIT AFTER TAX (G-H) (I)		0.196	0.218	0.059
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.782	1.564	1.505
	BALANCE CARRIED TO THE B/S		1.978	1.782	1.564
	Earnings Per Share (Rs.)		0.21	0.24	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.37	0.35	0.15
Net Profit Margin (PBT/Sales)	(%)	0.60	0.59	0.33
Return on Total Assets (PBT/Total Assets}	(%)	0.94	1.05	0.31
Return on Investment (ROI) (PBT/Networth)		0.03	0.03	0.01
Debt Equity Ratio (Total Liability/Networth)		2.02	2.23	2.58
Current Ratio (Current Asset/Current Liability)		2.66	2.33	2.18

LOCAL AGENCY FURTHER INFORMATION

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	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	No
17]	Major suppliers	Yes
18]	Major customers	No
19]	Payments terms	No
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	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]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Furniture and Fixture
• Generator
• Motor Cycle
• Cars
• Cooler
• Computer
• Mobile
• Refrigerator
• Water Filter
• EPBAX
• Typewriter
• Vacuum Cleaner
• Air Conditioner
• Cycle
• Inverter
  

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 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 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.54.39
UK Pound	1	Rs.87.78
Euro	1	Rs.71.29

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	NO
--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
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.