MIRA INFORM REPORT

Report Date :

29.12.2012

IDENTIFICATION DETAILS

Name :	MADHU INDUSTRIES PRIVATE LIMITED
Registered Office :	39,G I D C Phase-1, Vatva, Ahmedabad – 382445, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	07.08.1963
Com. Reg. No.:	001225
Capital Investment / Paid-up Capital :	Rs.22.800 Millions
CIN No.: [Company Identification No.]	U29259GJ1963PTC001225
TAN No.: [Tax Deduction & Collection Account No.]	AHMM01358A
PAN No.: [Permanent Account No.]	AAFCM2587A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter Polyester Made UPS, Polyester Piece Goods, Cotton Made UPS, Cotton Piece Goods, Terry Towels
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 450000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The financial position of the company appears to be unhealthy. There appear huge external borrowings recorded by the company. The profitability also is low. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. The 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.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	SHORT TERM RATING A4
Rating Explanation	Minimal degree of safety and very high credit risk
Date	01.02.2012

Rating Agency Name	CARE
Rating	LONG TERM RATING BB+
Rating Explanation	Moderate risk of default
Date	01.02.2012

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 DECLINED BY

Name :	Mr. Hemant
Designation :	Account Department
Contact No.:	91-79-25831265
Date :	26.12.2012

LOCATIONS

Registered Office :	39,G I D C Phase-1, Vatva, Ahmedabad – 382445, Gujarat, India
Tel. No.:	91-79-25831265
Fax No.:	91-79-25831113
E-Mail :	finance@madhuind.com mktg@madhuind.com madhu@icenet.net
Website :	http://www.madhuind.com

DIRECTORS

As on 30.09.2011

Name :	Mr. Rajnikant Chimanlal Parikh
Designation :	Director
Address :	56/2, Jayant Park, Maninagar, Ahmedabad, Gujarat, India
Date of Birth/Age :	16.12.1938
Date of Appointment :	10.07.2006
DIN No.:	00062477
Name :	Mr. Anil Chandulal Arya
Designation :	Director
Address :	104, Sona Apartment, Ghod Dod Road, Surat, Gujarat, India
Date of Birth/Age :	09.12.1960
Date of Appointment :	15.03.2004
DIN No.:	00563790
Name :	Mr. Sushil Mohanlal Agarwal
Designation :	Managing Director
Address :	22, Saurashtra Society, Anandnagar, Sarkhej Road, Paldi, Ahmedabad – 380007, Gujarat, India
Date of Birth/Age :	01.01.1960
Date of Appointment :	01.04.2011
DIN No.:	00684384
Name :	Mrs. Madhu Sushil Agarwal
Designation :	Managing Director
Address :	22, Saurashtra Society, Anandnagar, Sarkhej Road, Paldi, Ahmedabad – 380007, Gujarat, India
Date of Birth/Age :	21.04.1960
Date of Appointment :	01.04.2011
DIN No.:	00684391
Name :	Mr. Mohanlal Chaturbhuj Agarwal
Designation :	Director
Address :	2/B, Saurashtra Society, Anandnagar, Sarkhej Road, Paldi, Ahmedabad – 380007, Gujarat, India
Date OF Birth/Age :	16.06.1937
Date of Appointment :	29.09.1993
DIN No.:	00684398
Name :	Mr. Tushar Dolatram Brahmbhatt
Designation :	Whole-Time Director
Address :	401, Shetukrupa Apartment, Behind Swaminarayan Temple, Sahibaug, Ahmedabad - 380004, Gujarat, India
Date of Birth/Age :	08.05.1958
Date of Appointment :	01.04.2011
DIN No.:	00782830

KEY EXECUTIVES

Name :	Mr. Hemant
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Mohanlal Chaturbhuj Agarwal	7870
Sushil Mohanlal Agarwal	39202
Madhu Sushil Agarwal	58266
Taralata Mohanlal Agarwal	28076
Ramkumar G Agarwal	30
Tushar Dolatram Brahmbhatt	30
Omprakash B. Agarwal	30
Mohanlal Chaturbhuj Agarwal (HUF)	18292
Ayushi Sushil Agarwal	22464
Khushboo Agarwal (Guardian Sushil Agarwal)	2240
Sarita Premnath Gupta	6000
Premnath Munsinath Gupta	7000
Seema Manoj Agarwal	6000
Manoj Dhansiram Agarwal	7000
Testa Marketing Private Limited, India	7000
Aayush Texfab Private Limited, India	12000
Girajshankar Surendra Bansal	2000
Prabhadevi Surendra Bansal	1000
Surendrakumar N. Bansal	3000
Narendrakumar Surendrakumar Bansal	500
Total	228000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	8.33
Directors or relatives of directors	83.10
Other	8.57
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter Polyester Made UPS, Polyester Piece Goods, Cotton Made UPS, Cotton Piece Goods, Terry Towels

Products :

Products Description	Item Code No.:
Bed Linen	63021000
Towels	63026000

PRODUCTION STATUS

As on 31.03.2011

Licensed Capacity: NA

Particulars	Unit	Installed Capacity
Bed Sets	Sets	2000000

Particulars	Unit	Actual Production
Made UPS (Cloth)	Mtrs.	4586386

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

• Citi Bank N.A., Rembrandi, Near Panchvati Circle, Ahmedabad - 380006, Gujarat, India

• State Bank of India
• ICICI Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
State Bank of India (Secured against immovable properties being factory building at Valwa and personal guarantee of Directors) Rate of Interest 12.5% Repayment items 24 Quarterly installments of Rs.1.700 Millions each	8.630	15.438
ICICI Bank Limited (Against hypothecation of Polo Car and personal guarantee of Directors) Rate of Interest 12.02% Repayment terms 36 EMI OF Rs.0.021 Million each	0.196	0.393
State Bank of India EPC Facility PCFC Facility Bill Negotiation Facility (Secured against hypothecation of Inventory Book, Debts and personal Guarantee of Director) (Though the terms of the facility indicate repayment on demand management is of the opinion that the limit is being renewed on every due date and to that extent, the may be treated as long term borrowings)	103.007 7.425 19.121	97.706 3.446 17.727
Total	138.380	134.710
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
From Directors	20.326	20.497
Total	20.326	20.497

Banking Relations :	--
Auditors :
Name :	Nanubhai J. Desai and Company Chartered Accountants
Address :	223-225, Ellisbridge Shopping Centre, Ellisbridge, Ahmedabad – 380006, Gujarat, India
PAN No.:	AABFN3468Q
Related parties :	CCTM Textile Mills Madhu Impex

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
228000	Equity Shares	Rs.100/- each	Rs.22.800 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		22.800	22.800	22.800
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		89.728	88.088	86.731
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		112.528	110.888	109.531
LOAN FUNDS
1] Secured Loans		138.380	134.710	94.595
2] Unsecured Loans		20.326	20.497	15.234
TOTAL BORROWING		158.706	155.207	109.829
DEFERRED TAX LIABILITIES		3.160	2.616	1.887
TOTAL		274.394	268.711	221.247
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		103.188	109.922	118.616
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.100	0.100	0.101
DEFERREX TAX ASSETS		0.000	0.000	0.000
OTHER NON-CURRENT ASSETS		14.143	14.052	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	115.153	124.910	64.450
	Sundry Debtors	51.173	32.565	17.346
	Cash & Bank Balances	5.032	3.933	13.565
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	26.101	20.575	47.905
Total Current Assets		197.459	181.983	143.266
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	27.797	24.897	26.838
	Other Current Liabilities	7.276	7.451	0.224
	Provisions	5.423	4.998	13.674
Total Current Liabilities		40.496	37.346	40.736
Net Current Assets		156.963	144.637	102.530
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		274.394	268.711	221.247

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	347.124	330.429	268.930
		Other Income	NA	26.539	NA
		TOTAL	NA	356.968	NA
Less	EXPENSES
		Office Expenses	NA	354.450	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	354.450	NA
	PROFIT BEFORE TAX		2.658	2.518	2.198
Less	TAX		1.018	1.161	1.328
	PROFIT AFTER TAX		1.640	1.357	0.871
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		85.536	84.179	83.308
	BALANCE CARRIED TO THE B/S		87.176	85.536	84.179
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	269.763	296.434	266.869
	TOTAL EARNINGS		269.763	296.434	266.869
	Earnings Per Share (Rs.)		7.19	5.95	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	0.38	NA
Net Profit Margin (PBT/Sales)	(%)	0.77	0.76	0.82
Return on Total Assets (PBT/Total Assets}	(%)	0.88	0.86	0.84
Return on Investment (ROI) (PBT/Networth)		0.02	0.02	0.02
Debt Equity Ratio (Total Liability/Networth)		1.77	1.74	1.37
Current Ratio (Current Asset/Current Liability)		4.88	4.87	3.52

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors
Acceptance	0.000	0.000
Other than Acceptance	27.797	24.897
Total	27.797	24.897	26.838

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	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	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 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	Yes

OPERATION:

During the year the company have been registered a net sales turnover of Rs.347.200 Millions as compared to sales turnover of Rs.330.400 during last year. The net profit after tax increased to Rs.1.639 Millions as compared to PAT of Rs.1.356 Millions during the last year. After achieving satisfactory results in its operation during the year, the company has continued its efforts on improving the market for its product and popularizing its use.

CONTINGENT LIABILITY (AS ON 31.03.2011)

1. Guarantee given by the bank on behalf of company outstanding at the close of the year Rs.3.347 Millions (Previous year Rs.3.156 Millions).

2. Income tax assessment was completed from assessment year 1999-00 to 2004-05 last year. Department has raised demand of Rs.19.424 Millions for the same. However, the company has dispute the assessment and filed an appeal against the same. Further to avoid legal complication company has paid Rs.12.660 Millions against the above assessment years.

FIXED ASSETS:

• Land and Building
• Plant and Machinery
• Furniture and Fixtures
• Vehicles
• Office Equipments

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 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] 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.54.85
UK Pound	1	Rs.88.40
Euro	1	Rs.72.63

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		35

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.