MIRA INFORM REPORT

Report Date :

09.03.2012

IDENTIFICATION DETAILS

Name :	ARUN TEXTILE ENGINEERS PRIVATE LIMITED
Registered Office :	45, Jashukala Wadi, Opposite Leprosy Hospital, Ashwanikumar Road, Surat - 395 008, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.05.1994
Com. Reg. No.:	04-022026
Capital Investment / Paid-up Capital :	Rs.0.900 million
CIN No.: [Company Identification No.]	U17119GJ1994PTC022026
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Textiles Machinery.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 15000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a relatively small company having moderate track. Profitability of the company appears to be low. However, trade relations are 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	45, Jashukala Wadi, Opposite Leprosy Hospital, Ashwanikumar Road, Surat - 395 008, Gujarat, India
Tel. No.:	91-261-2552222/ 2550061
Fax No.:	91-261-2551836
E-Mail :	info@aruntexeng.com dmsvilkiassociates@yahoo.com
Website :	www.aruntexeng.com

DIRECTORS

As on 24.09.2011

Name :

Mr. Jayesh Kumar Dhirajlal MIstry

Designation :

Director

Address :

Gangotri Society, Near Gandhi Kutir, Bhatar Road, Surat, Gujarat, India

Date of Birth/Age :

06.04.1964

Date of Appointment :

11.05.1994

PAN No.:

ACXPM7158A

DIN No.:

00007747

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17119GJ1991PTC015141	Toral Synthetics Private Limited	Director	04-03-91	04-03-91	Active	NO
2	U17119GJ1994PTC022026	Arun Textile Engineers Private Limited	Director	11-05-94	11-05-94	Active	NO
3	U17116GJ1994PTC023631	Sun Silks Private Limited	Director	23-11-94	23-11-94	Active	NO
4	U17299GJ1993PTC020133	Surya Rayon Private Limited	Director	02-04-05	02-04-05	Active	NO
5	U17110GJ2006PTC048058	Creative Trendz Private Limited	Director	03-04-06	03-04-06	Active	NO
6	U51109WB2005PTC103759	Rotech Merchants Private Limited	Director	11-09-08	11-09-08	Active	NO
7	U24220GJ2009PTC055884	Ameri Coats India Private Limited	Director	13-01-09	13-01-09	Active	NO
8	U17120GJ2009PTC057515	R J Square Link Private Limited	Director	13-07-09	13-07-09	Active	NO
9	U24134GJ2010PLC063117	Creative Polyfilms Limited	Director	02-12-10	02-12-10	Active	NO

Name :

Mr. Hareshchandra Dhirajlal Mistry

Designation :

Director

Address :

Gangotri Society, Near Gandhi Kutir, Bhatar Road, Surat, Gujarat, India

Date of Birth/Age :

22.10.1951

Date of Appointment :

11.05.1994

PAN No.:

ABJPM8987A

DIN No.:

01640361

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U17119GJ1991PTC015141	Toral Synthetics Private Limited	Director	04-03-91	04-03-91	Active	NO
2	U17119GJ1994PTC022026	Arun Textile Engineers Private Limited	Director	11-05-94	11-05-94	Active	NO
3	U17116GJ1994PTC023631	Sun Silks Private Limited	Director	23-11-94	23-11-94	Active	NO

Name :

Mr. Vimal Kishorchandra Mistry

Designation :

Director

Address :

Gangotri Society, Near Gandhi Kutir, Bhatar Road, Surat, Gujarat, India

Date of Birth/Age :

30.07.1978

Date of Appointment :

01.08.1996

PAN No.:

ABCPM7897A

DIN No.:

01640381

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	U17119GJ1994PTC022026	Arun Textile Engineers Private Limited	Director	01-08-96	01-08-96	-	Active	NO
2	U17116GJ1994PTC023631	Sun Silks Private Limited	Director	01-08-96	01-08-96	22-10-10	Active	NO
3	U17119GJ1991PTC015141	Toral Synthetics Private Limited	Director	01-08-96	01-08-96	22-10-10	Active	NO

Name :

Mr. Dharmesh Hareshchandra Mistry

Designation :

Director

Address :

Gangotri Society, Near Gandhi Kutir, Bhatar Road, Surat, Gujarat, India

Date of Birth/Age :

08.02.1975

Date of Appointment :

01.04.1996

PAN No.:

ABEPM9593K

DIN No.:

01710671

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	U17119GJ1994PTC022026	Arun Textile Engineers Private Limited	Director	01-04-96	01-04-96	-	Active	NO
2	U17116GJ1994PTC023631	Sun Silks Private Limited	Director	01-04-96	01-04-96	22-10-10	Active	NO
3	U17119GJ1991PTC015141	Toral Synthetics Private Limited	Director	01-01-98	01-01-98	22-10-10	Active	NO

Name :

Mr. Mihirkumar Hareshchandra Mistry

Designation :

Additional Director

Address :

Somnath Mahadev Society, Ichchhanath, Surat, Gujarat, India

Date of Birth/Age :

16.06.1983

Date of Appointment :

18.02.2011

PAN No.:

AHCPM3047L

DIN No.:

03404205

Name :

Mr. Hemalkumar Hareshchandra Mistry

Designation :

Additional Director

Address :

Gangotri Society, Near Gandhi Kutir, Bhatar Road, Surat, Gujarat, India

Date of Birth/Age :

15.10.1979

Date of Appointment :

18.02.2011

PAN No.:

ABCPM0845L

DIN No.:

03406443

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2011

Names of Shareholders	No. of Shares
Nareshchandra Vitthaldas Mistry	250
Mahendrakumar Vitthaldas Mistry	250
Prakash Ramjibhai Mistry	150
Harshadrai Ganpatbhai Mistry	250
Ashvin Parmanadbhai Gajjar	150
Nareshkumar Uttambhai Gandhi	250
S.M. Kumar	700
Kantilal Mulchanddas Suthar	250
Aruaben Kantilal Suthar	250
Ashokkumar Dahyabhai Mistry	100
Pramodchandra H. Gajjar	250
Sunilbhai K. Dalwani	500
Salauddin Z. Ansari	200
Yaser S. Ansari	200
Iqbal Konkar	200
Faiyaz Z. Ansari	200
Mahayabeen S. Ansari	200
Jagdishchandra Nagindas	300
Bharatbhai Pranlal Thakker	250
Rameshbhai R. Topiwala	500
Harishbhai B. Mistry	500
Manilal R. Gajjar	500
K.M. Gajjar	250
Natvarbhai Gangaram Patel	500
Premaji Chelaji Prajapari	500
Ravibhai I. Iyer	500
Sudhaben Makatlal Panchal	400
Hareshchandra Dhirajlal Mistry	350
Jayesh Dhirajlal Mistry	100
Total	9000

As on 24.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	5.00
Other top fifty shareholders	95.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Textiles Machinery.

GENERAL INFORMATION

Suppliers :

v A.P. Textiles Industries

v Aditya Textiles Traders

v Amit Pipes and Tubes

v Avon Enterprise

v Bhesaniya Engineering Company

v Chirag Trading Company

v Geeta Oil and Print Company

v Hare Krishna Industries

v Harsiddh Engineering Works

v Heena Traders

v Indu Magnetic Private Limited

v Krishna Plastic

v New Make Engineers

v Perfect Tool Centre

v S. S. Trading Company

v Supreme Engineers

v Ajanta Engineers

v Modesty Shipping Services

v Suja Foreign Trade

v The Professional Couriers

v Mihir Engineers

Customers :

v Al Ahmed Silk Industries

v Randeriya Associates

v Shivam Industries

v Shiwani International

v Shradha Industries

v Venus Synthetics

No. of Employees :

Not Available

Bankers :

v The Sarvoday Sahakari Bank Limited

v HDFC Bank Limited

v Central Bank of India

v Kotak Mahindra Bank Limited

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
H.D.F.C. Bank Limited (Car Loan)	0.283	0.000
Total	0.283	0.000

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
(Including Interest Accrued and due)
Loans From Friends and Relative
Arun Tex Mac Industries	0.355	0.000
Hare Krishna Engineers	0.215	0.215
Hareshchandra D. Mistry	0.084	0.000
Mihir Engineer	0.200	0.000
Mihir machinery Manufacturers	0.255	0.000
Total	1.109	0.215

Banking Relations :	--
Auditors :
Name :	D.M.S. and Vilki Associates Chartered Accountants
Address :	UG-1 and 2, Luxor Palace, Near Gandhi Smruti Bhavan, Timaliyawad, Nanpura, Surat - 395 001, Gujarat, India
Tel. No.:	91-261-2463031
Income-tax PAN of auditor or auditor's firm :	AABFD9608C

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
23000	Equity Shares	Rs.100/- each	Rs.2.300 millions
2000	6% Non Cumulative Preference Shares	Rs.100/- each	Rs.0.200 million
	Total		Rs.2.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9000	Equity Shares	Rs.100/- each	Rs.0.900 million

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		0.900	0.900	0.900
2] Share Application Money		0.305	0.305	0.305
3] Reserves & Surplus		2.585	2.542	2.575
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3.790	3.747	3.780
LOAN FUNDS
1] Secured Loans		0.283	0.000	0.000
2] Unsecured Loans		1.109	0.215	0.235
TOTAL BORROWING		1.392	0.215	0.235
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		5.182	3.962	4.015
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.634	0.282	0.499
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.009	0.009	0.009
DEFERREX TAX ASSETS		0.074	0.057	0.167
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.662	8.267	2.350
	Sundry Debtors	3.098	1.296	1.724
	Cash & Bank Balances	0.206	0.348	2.686
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.868	3.770	1.591
Total Current Assets		10.834	13.681	8.351
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.789	10.010	4.976
	Other Current Liabilities	1.463	0.000	0.000
	Provisions	0.117	0.057	0.035
Total Current Liabilities		6.369	10.067	5.011
Net Current Assets		4.465	3.614	3.340
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		5.182	3.962	4.015

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	14.682	13.509	7.205
		Other Income	0.140	0.151	0.299
		TOTAL (A)	14.822	13.660	7.504
Less	EXPENSES
		Manufacturing and Operating Expenses	12.549	11.486	5.527
		Sales and Administrative Expenses	1.949	1.932	1.798
		TOTAL (B)	14.498	13.418	7.325
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.324	0.242	0.179
Less	FINANCIAL EXPENSES (D)		0.044	0.001	0.004
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.280	0.241	0.175
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.206	0.129	0.178
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		0.074	0.112	(0.003)
Less	TAX (H)		0.028	0.145	(0.096)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		0.046	(0.033)	0.093
	Earnings/ (Loss) Per Share (Rs.)		5.00	(3.67)	10.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.31	(0.24)	1.24
Net Profit Margin (PBT/Sales)	(%)	0.50	0.83	(0.04)
Return on Total Assets (PBT/Total Assets}	(%)	0.65	0.80	(0.03)
Return on Investment (ROI) (PBT/Networth)		0.02	0.03	0.00
Debt Equity Ratio (Total Liability/Networth)		2.05	2.74	1.39
Current Ratio (Current Asset/Current Liability)		1.70	1.36	1.67

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS:

In spite of tough competition in the market company has able to achieve a good turnover and positive surplus during the year. Directors of the company has set up cost reduction method which leads to increase in profit in near future. Director of the company very positive towards future of company.

FINANCE:

During the year, the company has accepted unsecured loan from directors and relatives of directors to meet the working capital gap.

CURRENT YEAR'S PROSPECTS AND FUTURE OUTLOOK:

As they look from the point of view of Textile Industry as a whole which is constantly facing the recessionary conditions, company has been able to maintain its Turnover during the year. Company has also able to earn positive surplus during the year.

FIXED ASSETS:

v Air Conditioner

v Computer

v Cycle

v Electric Fitting

v EPBAX System

v Fax Machine

v Fire Extinguisher

v Furniture

v Ford Figo Car

v Mobile Phone

v Plant and Machinery

v Television

WEBSITE DETAILS:

COMPANY PROFILE:

Subject brings proven expertise in high-precision machinery for the extremely competitive textile industry. Pioneer in the textile machines manufacturing domain, the company has risen to the status of market leader. Having strongly consolidated its position in the last three decades, Subject now leads the manufacture of yarn processing machines – Twisters and Winders.

The company's commitment to continual improvement and innovation of the products has led to its colossal growth. Subject's machinery is known for their productivity, cost-effectiveness and hassle-free operations. The impeccable performance, coupled with the brilliant service support has earned the trust of its customers in the past, and will continue to do so in the future as well.

INFRASTRUCTURE:

Technical expertise, qualified engineers, skilled work force, continuous R and D – all work in perfect harmony to give Subject the cutting edge. Keeping abreast of evolving trends and technologies, Subject uses Computer Aided Designing methodologies for machine designing. Backed by its modern infrastructure, Subject has thus been able to make strides in the manufacture of quality textile machinery.

Spread over 25,000 sq. ft of shop-floor and 10,000 sq.ft of office space, Subject is adequately equipped to house the machining, assembling and testing facilities. The impeccable infrastructure has thus been the backbone of Subject's consistent growth and development all through the years.

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.50.57
UK Pound	1	Rs.79.57
Euro	1	Rs.66.50

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
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	4
--CREDIT LINES	1~10	2
--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		28

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	-

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