MIRA INFORM REPORT

Report Date :

07.05.2012

IDENTIFICATION DETAILS

Name :	BIANCO TEXTILE SOLUTIONS INDIA PRIVATE LIMITED
Registered Office :	Plot No.4, Sector II, Vasai - Taluka, Industrial Co-Operative Estate Limited, Gaurai Pada, Vasai (East), District Thane – 401 208, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.08.2004
Com. Reg. No.:	11-148137
Capital Investment / Paid-up Capital :	Rs.3.300 millions
CIN No.: [Company Identification No.]	U29260MH2004PTC148137
TAN No.: [Tax Deduction & Collection Account No.]	PNEB07752D
PAN No.: [Permanent Account No.]	AACCB4477H
Legal Form :	Private Limited Liability Company
Line of Business :	The company is engaged in the manufacture of textile machineries and related services.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 9000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. 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 caution.

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 :	Plot No.4, Sector II, Vasai - Taluka, Industrial Co-Operative Estate Limited, Gaurai Pada, Vasai (East), District Thane – 401 208, Maharashtra, India
Tel. No.:	91-250-3295997
Fax No.:	91-250-2453055
E-Mail :	comtex@comtexindia.com biancoindia@vsnl.net
Administration Office :	Gala No.104, 1^st Floor, K.T. Industrial Estate, Building No.3, Golani Area, Near Reliance Tower, Waliv, Vasai (East), Thane – 401 208, Maharashtra, India
Tel. No.:	91-250-3247748
E-Mail :	biancoindia@vsnl.net
Factory :	Located at: v Vasai

DIRECTORS

As on 29.09.2010

Name :

Mr. Harish Gunvantrai Mehta

Designation :

Director

Address :

301, Matru Chhaya, Khandubhai Desai Road, Vile Parle (West), Mumbai-400 056, Maharashtra, India

Date of Appointment :

06.12.2004

DIN No.:

00289937

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	U17100MH1987PLC044296	Just Textiles Limited	Director	27-07-04	27-07-04	Active	NO
2	U29260MH2004PTC148137	Bianco Textile Solutions India Private Limited	Director	06-12-04	06-12-04	Active	NO
3	U29219MH2006PTC164015	Menzel Engineering India Private Limited	Director	24-08-06	24-08-06	Active	NO

Name :

Mr. Dhaval Bipinchandra Gandhi

Designation :

Director

Address :

24, Lavina Apartments, 52/A, Tagore Road, Santacruz (West), Mumbai - 400 054, Maharashtra, India

Date of Appointment :

06.12.2004

DIN No.:

00374604

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	U29200MH1977PTC019736	Comtex Engineering (Bombay) Private Limited	Managing director	31-03-10	15-05-79	Active	NO
2	U17114GJ1985PTC008200	Radiant Tex Pro Chem Private Limited	Director	15-07-88	15-07-88	Strike off	NO
3	U29269MH1996PTC104224	Viba Fibre Private Limited	Director	25-05-00	25-05-00	Active	NO
4	U29260MH2004PTC148137	Bianco Textile Solutions India Private Limited	Director	06-12-04	06-12-04	Active	NO
5	U29219MH2006PTC164015	Menzel Engineering India Private Limited	Director	24-08-06	24-08-06	Active	NO

Name :

Bianco Mariangela Lanzone

Designation :

Director

Address :

Viale Industria 4,12051 Alba (CN), Italy

Date of Appointment :

15.11.2004

Name :

Claudio Mazzinari

Designation :

Director

Address :

Viale Industria 4,12051 Alba (CN), Italy

Date of Appointment :

15/11/04

Name :

Bhavna Harish Mehta

Designation :

Director

Address :

301, Matru Chhaya, Khandubhai Desai Road, Vile Parle (West), Mumbai - 400 056, Maharashtra, India

Date of Appointment :

15.11.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders (Equity Shares)	No. of Shares
Bianco S.P.A., Italy	61200
Daval Gandhi	59400
Harish Gunvantrai Mehta	59400
Total	180000

As on 29.09.2010

Names of Shareholders (Preference Shares)	No. of Shares
BIANCO SPA, Italy	5000
Daval Gandhi	5000
Harish Gunvantrai Mehta	5000
Total	15000

As on 29.03.2012

Names of Allottees (Equity Shares)	No. of Shares
Harish Gunvantrai Mehta	19500
Daval Gandhi	19500
Bianco S.P.A., Italy	19500
Total	58500

As on 29.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	34.00
Bodies corporate	33.00
Directors or relatives of directors	33.00
Total	100.00

BUSINESS DETAILS

Line of Business :	The company is engaged in the manufacture of textile machineries and related services.
Products/ Services :	Textile Machinery and Services

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Textile Machineries	Nos.	N.A.	N.A.	61

The Licensed and Installed capacity is not available.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v The North Kanara G.S.B. Co-Operative Bank Limited, Patankar Park, "E" Wing, Nallasopara (West), Thane – 411 105, Maharashtra, India

v HDFC Bank Limited

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Term Loan from NKGSB Co-Operative Bank (Secured against mortgage of Factory building)	0.000	0.819
Sundaram Finance Limited (Secured against Hypothecation of Vehicle)	0.334	0.000
Total	0.334	0.819

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Business Loan from HDFC Bank	0.000	0.180
Total	0.000	0.180

Banking Relations :	--
Financial Institution :	Sundaram Finance Limited
Auditors :
Name :	RMJ and Associates Chartered Accountants
Address :	3/1109R, Navjeevan Society, Lamington Road, Mumbai Central, Mumbai – 400 008, Maharashtra, India
Tel. No.:	91-22-23051115, 23011245/ 46
Fax No.:	91-22-23011247
E-Mail :	info@rmj.in
Income-tax PAN of auditor or auditor's firm :	AAAFD1615J
Joint Venture Partner :	v Bianco S.P.A., Italy v Comtex Engineering (Bombay) Private Limited
Other Related Parties :	v Menzel Engineering India Private Limited (Directors are a Director in the Company) v Shreenath Textile Engineers (Firm in which one of the Director is interested) v Special Finishes Unlimited (Director is interest in the concern)

CAPITAL STRUCTURE

After 30.09.2011

Authorised Capital : Rs.4.000 millions

Issued, Subscribed & Paid-up Capital : Rs.3.885 millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 millions
15000	5% Redeemable Preference Shares	Rs.100/- each	Rs.1.500 millions
	Total		Rs.4.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
180000	Equity Shares	Rs.10/- each	Rs.1.800 millions
15000	5% Redeemable Preference Shares	Rs.100/- each	Rs.1.500 millions
	Total		Rs.3.300 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		3.300	3.300	3.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(1.160)	(2.066)	(3.254)
NETWORTH		2.140	1.234	0.046
LOAN FUNDS
1] Secured Loans		0.334	0.819	1.305
2] Unsecured Loans		0.000	0.180	0.347
TOTAL BORROWING		0.334	0.999	1.652
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2.474	2.233	1.698
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.466	3.817	4.506
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.060	0.060	0.060
DEFERRED TAX ASSETS		0.174	0.108	1.043
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.120	25.377	15.290
	Sundry Debtors	10.873	15.964	9.587
	Cash & Bank Balances	1.883	8.832	1.546
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.550	3.302	2.982
Total Current Assets		32.426	53.475	29.405
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	25.016	38.197	28.475
	Other Current Liabilities	6.612	15.546	3.847
	Provisions	2.024	1.484	0.994
Total Current Liabilities		33.652	55.227	33.316
Net Current Assets		(1.226)	(1.752)	(3.911)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2.474	2.233	1.698

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	135.547	101.328	56.664
		Other Income	2.623	NA	NA
		TOTAL	138.170	NA	NA
Less	EXPENSES
		Office Expenses	136.753	NA	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL	136.753	NA	NA
	PROFIT/ (LOSS) BEFORE TAX		1.417	NA	NA
Less	TAX		0.474	NA	NA
	PROFIT/ (LOSS) AFTER TAX		0.943	1.416	(0.995)
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	10.791	13.941	8.326
		Service Charges Income	0.963	0.456	0.857
		Reimbursement of Traveling expenses	0.000	0.000	0.037
	TOTAL EARNINGS		11.754	14.397	9.220
	IMPORTS
		Components of Textile Machineries	51.769	44.665	18.105
	TOTAL IMPORTS		51.769	44.665	18.105
	Earnings/ (Loss) Per Share (Rs.)		4.84	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.68	NA	NA
Net Profit Margin (PBT/Sales)	(%)	1.05	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	3.95	NA	NA
Return on Investment (ROI) (PBT/Networth)		0.66	NA	NA
Debt Equity Ratio (Total Liability/Networth)		15.88	45.56	760.17
Current Ratio (Current Asset/Current Liability)		0.96	0.97	0.88

LOCAL AGENCY FURTHER INFORMATION

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	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

Note:

The registered office of the company has been shifted from K.T. Industrial Estate, Building No.3, Gala No.6, 7, 8, Chinch Pada, Golani Area,Village, Walive, Vasai (East), Mumbai – 401 208, Maharashtra to the present address w.e.f. 14.06.2011.

BACKGROUND:

Subject is a joint venture between Bianco S.P.A., Italy, Mr. Harish Mehta and Comtex Engineering (Bombay) Private Limited. The company was incorporated on 20^th August, 2004. The company is engaged in the manufacture of the textile machineries and related services.

FINANCIAL RESULTS:

During the financial year ended 31^st March, 2011, the company has achieved the turnover of Rs.135.547 millions, as against Rs.101.328 millions for the year ended 31^st March, 2010. The profit after tax is Rs.0.943 million as on 31^st March, 2011 as against a profit Rs.1.416 millions for the year ended 31^st March, 2010.

FIXED ASSETS:

v Factory Premises Vasai

v Computers

v Furniture and Fixtures

v Office Equipments

v Motor car

v Plant and Machinery

v Building Leasehold Improvement

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.53.72
UK Pound	1	Rs.86.98
Euro	1	Rs.70.65

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	-
--LEVERAGE	1~10	4
--RESERVES	1~10	-
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.