MIRA INFORM REPORT

Report Date :

08.06.2012

IDENTIFICATION DETAILS

Name :	RAGHVANI TEXTILES PRIVATE LIMITED
Registered Office :	Shed No. 350, Sector – IV, Kandla Special Economic Zone, Gandhidham, Gujarat – 370230
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.06.2000
Com. Reg. No.:	04-038233
Capital Investment / Paid-up Capital :	Rs.1.320 Millions
CIN No.: [Company Identification No.]	U17290GJ2000PTC038233
TAN No.: [Tax Deduction & Collection Account No.]	RKTR00388D
PAN No.: [Permanent Account No.]	AABCR6162N
Legal Form :	Private Limited Liability Company
Line of Business :	Wiper, cindi, manufacture and export, waste scrap, used clothes, second hand clothing.
No. of Employees :	Information Denied by Management

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 230000
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.

INFORMATION DENIED BY

Name :	Mr. Bhatt
Designation :	Accounts Department
Contact No.:	91-2836-252001
Date :	07.06.2012

LOCATIONS

Registered Office :	Shed No. 350, Sector – IV, Kandla Special Economic Zone, Gandhidham, Gujarat – 370230, India
Tel. No.:	91-2836-253222/252001
Fax No.:	91-2836-252450
E-Mail :	raghvanitextiles@dataone.in
Website :	www.raghvanitextiles.com
Office / Factory:	Plot No. 261, Sector – IV, Extended Area, Kandla Special Economic Zone, Gandhidham, Gujarat, India
Warehouse:	Located at KSEZ, India

DIRECTORS

As on 30.09.2011

Name :	Mr. Mohamed Ramzanali Karmali
Designation :	Director
Address :	5, Nichols Blvd, Markhamont, L6C2Y9, Canada
Date of Birth/Age :	26.02.1952
Date of Appointment :	30.09.2002
DIN No.:	02619895
Name :	Mr. Karim Ramzani Karmali
Designation :	Director
Address :	P.O Box 39325, Nairobi – 00623, Kenya
Date of Birth/Age :	10.12.1960
Date of Appointment :	30.09.2002
DIN No.:	02619987
Name :	Mr. Mohamed Shail Abdul Kader
Designation :	Director
Address :	Plot No. 315, Ward 3 – A, Adipur – 370205, Gujarat, India
Date of Birth/Age :	01.05.1950
Date of Appointment :	30.09.2002
DIN No.:	03246813

KEY EXECUTIVES

Name :	Mr. Bhatt
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Mohamed Ramzanali Karmali	30000
Karim Ramzani Karmali	102000
Total	132000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Wiper, cindi, manufacture and export, waste scrap, used clothes, second hand clothing.
Exports:
Countries :	African countries

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity
Used Clothing / Wipers etc	M.T	40000	20000

Particulars	Unit	Actual Production
Finished Goods, Rags etc	KG	364.164

GENERAL INFORMATION

No. of Employees :

Information Denied by Management

Bankers :

Not Divulged

Facilities :

(Rs. in Millions)

Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Karim Karmali	63.712	46.373
Nizar Jessa	7.714	7.713
Total	71.426	54.086

Banking Relations :	--
Auditors :
Name :	Harish Khona and Company Chartered Accountant
Address :	Plot No. 130, Sector – 3, Gandhidham – 370201, Gujarat, India
PAN.:	ABXPK4603R

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.10/- each	Rs.1.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
132000	Equity Shares	Rs.10/- each	Rs.1.320 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		1.320	1.320	1.320
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		57.002	37.152	22.163
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		58.322	38.472	23.483
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		71.426	54.086	54.086
TOTAL BORROWING		71.426	54.086	54.086
DEFERRED TAX LIABILITIES		1.899	2.379	2.536
TOTAL		131.647	94.937	80.105
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		53.096	56.094	60.804
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	50.370	56.584	54.178
	Sundry Debtors	210.750	82.936	37.128
	Cash & Bank Balances	43.863	32.730	8.161
	Other Current Assets	15.579	0.518	0.000
	Loans & Advances	50.570	24.444	4.799
Total Current Assets		371.132	197.212	104.266
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.274	20.105	79.514
	Other Current Liabilities	263.043	129.664	0.799
	Provisions	10.264	8.600	4.834
Total Current Liabilities		292.581	158.369	84.965
Net Current Assets		78.551	38.843	19.301
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		131.647	94.937	80.105

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	942.580	831.400	867.635
		Other Income
		TOTAL	942.580	831.400	867.635
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	905.004	799.571	846.020
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		37.576	31.829	21.615
	DEPRECIATION/ AMORTISATION		7.890	8.234	8.922
	PROFIT BEFORE TAX		29.686	23.595	12.693
Less	TAX		9.835	8.756	4.918
	PROFIT AFTER TAX		19.851	14.839	7.775
	EARNINGS IN FOREIGN CURRENCY
		Export – Finished Goods	844.227	667.490	680.282
	TOTAL EARNINGS		844.227	667.490	680.282
	Earnings Per Share (Rs.)		150.39	113.55	60.42

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.11	1.78	0.89
Return on Total Assets (PBT/Total Assets}	(%)	7.99	11.96	12.17
Return on Investment (ROI) (PBT/Networth)		0.51	0.61	0.54
Debt Equity Ratio (Total Liability/Networth)		5.02	4.12	3.62
Current Ratio (Current Asset/Current Liability)		1.27	1.25	1.23

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Import	11.155	11.955	74.716
Local	8.119	8.150	4.798
Total	19.274	20.105	79.514

PARTIAL DETAILS

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Alliance Logistic	0.000	0.366	0.000
Kandla SEZ Authority	0.013	0.017	0.000
Kesari Nult Bolt Huse	0.008	0.011	0.011
S Sa Machine Tools	0.015	0.011	0.000
Sri Krishna Cargo Movers	0.400	0.813	0.591
Parekh Marin Agencies Private Limited	0.532	0.290	0.541
Kishan Tractor and Hydraulic Spares	0.006	0.004	0.006
B M Autolink	(0.103)	(0.110)	(0.15)
Fromm Packaging System	(0.100)	0.166	0.000
Harish Khona and Company	0.204	0.183	0.206
Max Tools	0.022	0.000	0.023
N R Khoja	0.062	0.052	0.038

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	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	Yes
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

OPERATIONS

The Company has maintained the production during the year and has achieved production to the maximum level and expects good turnover during the F.Y.2011-2012

CONTINGENT LIABILITIES

A. The company has executed continuity bond with KSEZ customs for Rs.360.000 Millions as per customs Act.

B. Liability, if any arising on accounts of bonds / undertaking given by the company under concessional duty / exemption scheme of customs and excise and other authorities, pending fulfillments of specified obligation is not ascertained. There is however no default to date as informed by the management of the company.

FIXED ASSETS

· Electrical Installation

· Plant and Machinery

· Office Equipments

· Mobile Phones

· Computers and Software’s

· Furniture and Fixture

· Factory Shed

· Guest House

· Entrainment System

· Vehicles

· Factory Construction WIP

· Electrical Installations - WIP

AS PER WEBSITE DETAILS

PROFILE

Subject was established by Mr. Karim Karmali in the year 2000 and was the first company of Kandla Special Economic Zone, India. They have an affiliated company “Five Star Rags Inc” in North America grading almost 200 varities like Raghvani Textiles.

Raghvani Textiles is involved in all facets of the textiles recycling market from the collection of used clothing or secondhand clothing to the reuse of this used clothing. They sort approximately 270,000 lbs of used clothing every day in their 200,000 square foot warehouse located in KSEZ, India. They are biggest exporter to African countries and grade vintage for Korea, Japan, Europe and USA.

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.55.14
UK Pound	1	Rs.85.22
Euro	1	Rs.69.24

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
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	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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.