MIRA INFORM REPORT

Report Date :

29.02.2012

IDENTIFICATION DETAILS

Name :	ARORA TEXTILES PRIVATE LIMITED (transfer from U.P. to Rajasthan)

Registered Office :	E-90-91, Industrial Growth Khara, Bikaner – 334001, Rajasthan

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	22.04.1996

Com. Reg. No.:	17-014254

Capital Investment / Paid-up Capital :	Rs.14.626 Millions

CIN No.: [Company Identification No.]	U17124RJ1996PTC014254

TAN No.: [Tax Deduction & Collection Account No.]	JDHA02439D

PAN No.: [Permanent Account No.]	AABCA2865K

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturers and Suppliers of Carpet Woollen Yarn.

No. of Employees :	Not Available

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 254000

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

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

LOCATIONS

Registered Office/ Factory :	E-90-91, Industrial Growth Khara, Bikaner – 334001, Rajasthan, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	reena.bala@rediff.com sabirca2007@rediffmail.com csreena7@gmail.com

Head Office:	21 D, Industrial Area, Rani Bazar, Bikaner – 334001, Rajasthan, India
Tel. No.:	91-151-2523029/ 2545213/ 2547172
Fax No.:	91-151-2204126

Branches :	Located at : Bhadohi Panipat

DIRECTORS

As on 30.09.2011

Name :

Mr. Jethmal Arora

Designation :

Director

Address :

15 – Sadul Colony, Park Road, Bikaner – 334405, Rajasthan, India

Date of Birth/Age :

15.06.1945

Date of Appointment :

19.09.1997

DIN No.:

00337250

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	U17124RJ1996PTC014254	ARORA TEXTILES PRIVATE LIMITED (TRANSFER FROM U.P. TO RAJASTHAN)	Director	19-09-97	19-09-97	-	Active	NO
2	U18101RJ2004PTC019005	ARORA TEXWOOL PRIVATE LIMITED	Director	20-02-04	20-02-04	-	Active	NO
3	U17117RJ1996PTC012948	ARORA YARN PRIVATE LIMITED	Director	18-07-08	18-07-08	17-09-08	Active	NO

Name :

Mr. Shiv Prakash Arora

Designation :

Director

Address :

14 – Sadul Colony, Park Road, Bikaner – 334405, Rajasthan, India

Date of Birth/Age :

05.05.1967

Date of Appointment :

19.09.1997

DIN No.:

00908515

Name :

Mr. Brahm Prakash Arora

Designation :

Director

Address :

14 – Sadul Colony, Park Road, Bikaner – 334405, Rajasthan, India

Date of Birth/Age :

07.01.1971

Date of Appointment :

22.04.1996

DIN No.:

00337243

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	U17124RJ1996PTC014254	ARORA TEXTILES PRIVATE LIMITED (TRANSFER FROM U.P. TO RAJASTHAN)	Director	19-09-97	19-09-97	-	Active	NO
2	U18101RJ2004PTC019005	ARORA TEXWOOL PRIVATE LIMITED	Director	20-02-04	20-02-04	-	Active	NO

Name :

Ms. Shriya Devi Arora

Designation :

Director

Address :

Q-B66, Jai Narayan Vyas Colony, Bikaner – 334001, Rajasthan, India

Date of Birth/Age :

20.08.1947

Date of Appointment :

30.08.2008

DIN No.:

02311884

Name :

Ms. Anju Arora

Designation :

Director

Address :

Q-B66, Jai Narayan Vyas Colony, Bikaner – 334001, Rajasthan, India

Date of Birth/Age :

06.07.1972

Date of Appointment :

30.08.2008

DIN No.:

02311776

Name :

Ms. Veena Arora

Designation :

Director

Address :

Q-B66, Jai Narayan Vyas Colony, Bikaner – 334001, Rajasthan, India

Date of Birth/Age :

12.11.1975

Date of Appointment :

30.08.2008

DIN No.:

02311770

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders		No. of Shares
Anju Devi Arora		100
Brahm Prakash Arora		334500
Jeth Mal Arora		295000
Shiv Prakash Arora		168000
Siriya Devi Arora		140600
Veena Arora		100
Jeth Mal Arora (HUF)		23500
Neeru Arora		100
Sharthak Trust Fund		100
Ayush Trust Fund		100
Brahm Prakash Arora (HUF)		25714
Shiv Prakash Arora (HUF)		25714
Abhishek Arora		25714
Monika Arora		25714
Mayank Arora		25714
Shashank Arora		25714
Shivam Arora		25716
Arora Texwool Privat Limited		291000
Foresight Fragrance Private Limited		1250
EpicC Vyapaar Private Limited		1250
Daisy Abhra Private Limited		1250
Abharani Vinimay Private Limited		1250
Vighnahar Marketting Private Limited		1250
Angad Chemicals Private Limited		1250
Ziwani Barter Private Limited		1250
Mubarak Lubricant Private Limited		1250
GiltedgeE Vincom Private Limited		1250
Vanraj Merchants Private Limited		1250
Afsons (India) Private Ltd		2000
ETL Infrastructure Finance Limited		4000
Swastik Securities & Finance Limited		2000
Abex Infocom Private Limited		2000
Akhtar Ali Ansari		7000
Total		1462600

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	21.43
Directors or relatives of Directors	78.57
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Suppliers of Carpet Woollen Yarn.

Products :

Particulars	IIS Code
Carpet Grade Greasy White Raw Yield 70-75% Type : Dbw	51011900
Carpet Grade White Greasy Raw	51012900
Argentinian Wool Waste	51032010
Carpet Grade Wool Waste	51032090

GENERAL INFORMATION

Suppliers :

Arihant Roadways
Associated Road Carrier
Banarsi Dass Grover
Basant Industries
International Carrying Company
The Rajasthan Small Industrial Corporation
TMC Express, Jaipur
Ankit Enterprise
Global Marine Agencies
Gautam Sales
Jain Paper Tube and Core
Misra Boilers Private Limited
Prakash Enterprise
Spintex Impex Private Limited
Technochem Industries
Tex Marketing Corporation
Allied Fibers and Textiles Corporation
ANN CEE Woollens Private Limited
New Zealand Wool Service International
S.P and Company
Surana Woollens Private Limited
Tarad Wools

Customers :

D. S. Trading Company
OAC Wooliens Private Limited
Tannu Wools
A.D. Textiles
Bhagwati Industries, Bikaner
Varun Industries
Sethi Exports
Dugar Crafts
Shree Ganpati Associates
Jaipur Rugs Company Private Limited
Flora Exports
Modern Rugs
Saif Carpets Private Limited
Unique Exports
Aayana Overseas
ABC Industries
A.K. Creations
Ambadi Enterprise Limited
Ashu Carpet
Kruti Overseas
Karpi India Private Limited
Unlimited Rugs

No. of Employees :

Not Available

Bankers :

State Bank of Bikaner and Jaipur, Rani Bazar Industrial Area, Bikaner – 334001, Rajasthan, India

State Bank of Bikaner and Jaipur, R.A.S.E.C.C. (Credit Cell), Binani Building, Alakh Sagar Road, Bikaner – 334001, Rajasthan, India

Bank of Baroda, Station Road, Bikaner – 311001, Rajasthan, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
HDFC Bank Limited Loan A/C	0.000	0.078
SBBJ T/Loan A/C 61090476159	0.000	1.600
SBBJ Car Loan A/C 61095952488	0.376	0.000
SBBJ CC A/c 61090476669	40.080	43.382
BOB C/C 1350500000007	0.000	0.000
SBBJ O/D A/c 61103544984	0.067	0.000
SBBJ Adhoc A/c	5.923	0.000
BOB CC A/c 013505000000085	6.328	0.000
BOB O/D A/c	0.180	0.000
BOB 13504 (0135040000038)	0.000	6.089
Total	52.954	51.149

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Abhishel Arora	0.150	0.127
Ayush Trust Fund	0.743	0.629
B.J. Woollens Private Limited	0.000	0.126
Brahm Prakash Arora (S.M. Sales)	2.408	1.590
Brahm Praksh Arora HUF	2.528	0.394
Jethmal Arora	1.586	3.728
Jethmal Arora HUF	0.338	0.770
Minika Arora	0.150	0.128
Sarthak Trust Fund	0.423	0.359
Shiv Prakash Arora	4.699	1.425
Anju Arora	0.588	1.680
Siriya Devi	0.439	0.802
Veena Arora	1.140	1.684
Total	15.192	13.442

Banking Relations :	--

Auditors :
Name :	Sabir and Company Chartered Accountant
Address :	F-17/18, Bothra Complex, Bikaner – 334001, Rajasthan, India
PAN.:	ABYPA1753D

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Share	Rs.10/- each	Rs.15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1462600	Equity Share	Rs.10/- each	Rs.14.626 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		14.626	14.626	14.331
2] Share Application Money		0.000	0.000	10.000
3] Reserves & Surplus		48.752	45.182	29.849
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		63.378	59.808	54.180
LOAN FUNDS
1] Secured Loans		52.954	51.149	39.246
2] Unsecured Loans		15.192	13.442	10.224
TOTAL BORROWING		68.146	64.591	49.470
DEFERRED TAX LIABILITIES		2.594	2.937	3.349
Subsidy and Incentive		1.959	1.959	1.959

TOTAL		136.077	129.295	108.958

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		31.946	29.673	31.802
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	54.017	42.408	32.383
	Sundry Debtors	67.152	62.936	59.021
	Cash & Bank Balances	23.267	14.066	9.032
	Other Current Assets	0.637	0.723	0.584
	Loans & Advances	1.277	4.443	5.618
Total Current Assets		146.350	124.576	106.638
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35.314	20.587	29.482
	Other Current Liabilities	3.321	2.020	0.000
	Provisions	3.584	2.347	0.000
Total Current Liabilities		42.219	24.954	29.482
Net Current Assets		104.131	99.622	77.156

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		136.077	129.295	108.958

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	498.036	324.424	327.705
		Other Income	3.001	4.843	5.991
		TOTAL (A)	501.037	329.267	333.696

Less	EXPENSES
		Cost of Goods Sold	463.607	301.875	303.862
		Administrative Expenses H.O.	14.487	11.186	12.761
		Administrative Expenses B.O. Bhadohi	2.028	1.725	1.696
		Administrative Expenses B.O. Panipet	1.665	1.364	1.390
		TOTAL (B)	481.787	316.150	319.709

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		19.250	13.117	13.987

Less	FINANCIAL EXPENSES (D)		8.711	5.880	8.530

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.539	7.237	5.457

Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.689	4.357	4.178

	PROFIT BEFORE TAX (E-F) (G)		5.850	2.880	1.279

Less	TAX (H)		1.674	0.103	(0.104)

	PROFIT AFTER TAX (G-H) (I)		4.176	2.777	1.385

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		36.503	33.726	32.341

	BALANCE CARRIED TO THE B/S		40.679	36.503	33.726

	Earnings Per Share (Rs.)		2.86	1.90	0.97

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.83	0.84	0.42

Net Profit Margin (PBT/Sales)	(%)	1.17	0.84	0.39

Return on Total Assets (PBT/Total Assets}	(%)	3.28	1.87	0.92

Return on Investment (ROI) (PBT/Networth)		0.09	0.05	0.02

Debt Equity Ratio (Total Liability/Networth)		1.74	1.50	1.46

Current Ratio (Current Asset/Current Liability)		3.47	4.99	3.62

LOCAL AGENCY FURTHER INFORMATION

CHANGE OF ADDRESS

Registered office of the company has been shifted from main Road Bhadoi, 15, park Road, Sadul Colony, Bikaner w.e.f. 02.09.1997 to the present address.

FORM 8

Corporate identity number of the company	U17124RJ1996PTC014254
Name of the company	ARORA TEXTILES PVT. LTD. (TRANSFER FROM U.P. TO RAJASTHAN)
Address of the registered office or of the principal place of business in India of the company	E-90-91, Industrial Growth Khara, Bikaner – 334001, Rajasthan, India Email csreena7@gmail.com
This form is for	Creation of charge
Type of charge	Immovable Property Movable Property
Particular of charge holder	STATE BANK OF BIKANER & JAIPUR Rani Bazar Industrial Area, Bikaner – 334001, Rajasthan, India Email: sbbj10516@sbbj.co.in
Nature of instrument creating charge	1. Loan cum hypothecation agreement 2. Sanction letter
Date of instrument Creating the charge	23.07.2011
Amount secured by the charge	Rs.1.430 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 2.25% ABOVE BASE RATE i.e. 12.00% p.a. (subject to change from time to time). Terms of Repayment: In 35 Monthly Installments of Rs. 0.049 millions Each w.e.f. August 2011 Margin 15% Extent and Operation of the charge: 1st charge over movable and immovable assets of the company registered with roc.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Primary security by way of hypothecation of Toyota Altis Dgk -PW purchased out of this term laon Collateral security by way of equitable mortgage of land and building situated at Plot No. 154 and 155, Industrial Area, Rani Bazar, Bikaner, in the name of company. Collateral security by way of equitable mortgage of factory land and building situated at Plot No. E-90 and E-91, IGC Khara, Bikaner, in the name of company.

FIXED ASSETS

Air Conditioner
Building
Building at Rani Bazar
Computer
Cooler
Cycle
Electrification
Fan
Fax and Pager
Furniture and Fixture
Heater
Inventor
Lab Equipment
Land (RIICO) E-90-91
Land (RIICO) E-303
Land (Rani Bazar)
Mobile
Motor Car
Motor Cycle
Plant and Machinery
Plant and Machinery (Wind)
Refrigerator
Tata Truck
Television
Water Cooler
Water Filter
Weighting Scale

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.49.14
UK Pound	1	Rs.77.85
Euro	1	Rs.66.06

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	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	NO
--AFFILIATION	YES/NO	NO
--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.

MIRA INFORM REPORT

54.017

32.383

67.152

59.021

23.267

9.032

0.637

0.584

1.277

5.618

146.350

35.314

29.482

3.321

0.000

3.584

0.000

42.219

104.131

77.156

0.83

0.42

1.17

0.39

3.28

0.92

0.09

0.02

1.74

1.46

3.47

3.62

Unit