MIRA INFORM REPORT

Report Date :

03.11.2012

IDENTIFICATION DETAILS

Name :	WORLDTEX MANUFACTURING PRIVATE LIMITED
Registered Office :	10/11 Shivai Industrial Estate, 89 Kurla Andheri Road, Sakinaka, Mumbai – 400069, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.08.1999
Com. Reg. No.:	11-121510
Capital Investment / Paid-up Capital :	Rs.22.500 Millions
CIN No.: [Company Identification No.]	U17110MH1999PTC121510
TAN No.: [Tax Deduction & Collection Account No.]	MUMW01598C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Home Furnishings.
No. of Employees :	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appear huge 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 on a secured 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

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

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.

LOCATIONS

Registered Office :	10/11 Shivai Industrial Estate, 89 Kurla Andheri Road, Sakinaka, Mumbai – 400069, Maharashtra, India
Tel. No.:	91-22-28514430 (5 Lines) / 66764384
Fax No.:	91-22-28514435
E-Mail :	ad@textradeindia.com Vivian.dsouza@textradeindia.com Ho.accounts@textradeindia.com textrde@vsnl.com sales@textradeindia.com
Website :	http://www.textradeindia.com
Factory 1 :	C-230, T.T.C. Industrial Area, Dombivli- Turbhe Road, MIDC, Turbhe, Mumbai-400705, Maharashtra, India
Tel. No.:	91-22-7683230 / 7683016
Factory 2 :	A-585, T.T.C. Industrial Area, Thane Belapur Road, Mahape, MIDC, Turbhe, Navi Mumbai-400705, Maharashtra, India
Tel. No.:	91-22-7601610 / 7699274

DIRECTORS

As on 30.08.2012

Name :

Mr. Anish Bipin Doshi

Designation :

Chairman cum Managing Director

Address :

81/82, The Nest, 8 Gulmohar Road, 4^th Cross Road, JVPD Scheme, Mumbai-400049, Maharashtra, India

Date of Birth/Age :

02.10.1966

Date of Appointment :

30.08.1999

DIN No.:

00307008

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17110MH1999PTC121510	WORLDTEX MANUFACTURING PRIVATE LIMITED	Director	30-08-99	30-08-99	-	Active	NO
2	U51494MH2004PLC147108	TEXTRADE INTERNATIONAL LIMITED	Managing director	30-08-08	23-06-04	-	Active	NO

Name :

Mr. Deven Madhusudan Doshi

Designation :

Director

Address :

504, Commerce House, 140 Nagindas Master Road, Mumbai-400023, Maharashtra, India

Date of Birth/Age :

10.01.1965

Date of Appointment :

01.12.2001

DIN No.:

00375320

01550249

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U17110MH1999PTC121510	WORLDTEX MANUFACTURING PRIVATE LIMITED	Director	01-12-01	01-12-01	-	Active	NO
2	U51494MH2004PLC147108	TEXTRADE INTERNATIONAL LIMITED	Director	23-06-04	23-06-04	-	Active	NO
3	L99999MH1974PLC017826	KIRTI INVESTMENTS LIMITED	Director	10-11-08	10-11-08	-	Active	NO
4	L65990MH1982PLC028822	NITIN ALLOYS GLOBAL LIMITED	Director	10-11-08	10-11-08	-	Active	NO

Name :

Mr. Bipin Jethalal Doshi

Designation :

Director

Address :

71/72 The Nest, 8 Gulmohar Road, 4^th Cross Road, JVPD Scheme, Mumbai-400049, Maharashtra, India

Date of Birth/Age :

08.09.1936

Date of Appointment :

30.08.1999

DIN No.:

01550249

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.08.2012

Names of Shareholders	No. of Shares
Bipin Doshi	1125000
Monika Doshi	1080000
Sidhhant Doshi	22500
Namrata Doshi	22500
Total	2250000

As on 30.08.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Home Furnishings.

GENERAL INFORMATION

No. of Employees :

600 (Approximately)

Bankers :

· CITI Bank, Bandra Kurla Complex, G-Block Bandra, Mumbai - 400051, Maharashtra, India

· Sicom Limited, Nirmal 1^st Floor, Nariman Point, Mumbai - 400021, Maharashtra, India

· Indian Overseas Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Loans Repayable on Demand
Secured Short Term Borrowing form Bank (Secured against LC)	8.045	11.623
Total	8.045	11.623
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Loans and Advances from Related Parties (Loan from Shareholders/ Directors/ Others)	62.183	69.793
Total	62.183	69.793

Banking Relations :	--
Auditors :
Name :	Kamdar Desai and Patel Chartered Accountant
Address :	Vasaikar House, 296 Cadell Road, Dadar (West), Mumbai - 400027, Maharashtra, India
Tel. No.:	91-22-24475000
Fax No.:	91-22-24475001
E-Mail :	info@kdpaccountants.com
Website:	http://www.kdpaccountants.com
PAN.:	AAAFK6984H
Associates :	Textrade International Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions
550000	Preference Shares	Rs.10/- each	Rs.5.500 Millions
			Rs.30.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2250000	Equity Shares	Rs.10/- each	Rs.22.500 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		22.500	28.000	28.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(46.885)	(54.737)	(58.739)
NETWORTH		(24.385)	(26.737)	[30.739]
LOAN FUNDS
1] Secured Loans		8.045	11.623	0.000
2] Unsecured Loans		62.183	69.793	63.293
TOTAL BORROWING		70.228	81.416	63.293
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		45.843	54.679	32.554
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		24.669	23.111	24.648
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.250	0.250	0.250
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.182	14.758	20.799
	Sundry Debtors	27.435	4.243	8.495
	Cash & Bank Balances	0.298	-1.077	(1.293)
	Other Current Assets	5.177	17.102	0.000
	Other Non-Current Assets	0.252	0.252	0.000
	Loans & Advances	0.278	0.233	0.582
Total Current Assets		44.622	35.511	28.583
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	22.343	3.656	20.668
	Other Current Liabilities	1.355	0.537	0.259
	Provisions	0.000	0.000	0.000
Total Current Liabilities		23.698	4.193	20.927
Net Current Assets		20.924	31.318	7.656
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		45.843	54.679	32.554

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	269.506	326.964	107.276
		Other Income	1.590	(0.113)	0.664
		TOTAL (A)	271.096	326.851	107.940
Less	EXPENSES
		Cost of Material	257.969	315.195
		Employee Benefit Expenses	0.515	0.581	103.994
		Other Expenses	2.764	3.187
		TOTAL (B)	261.248	318.963	103.994
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9.848	7.888	3.946
Less	FINANCIAL EXPENSES (D)		0.473	2.349	0.054
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.375	5.539	3.892
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.524	1.537	1.537
	PROFIT BEFORE TAX (E-F) (G)		7.851	4.002	2.355
Less	TAX (H)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		7.851	4.002	2.355
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(54.736)	(58.738)	(61.093)
	BALANCE / (LOSS) CARRIED TO THE B/S		(46.885)	(54.736)	(58.738)
	EARNINGS IN FOREIGN CURRENCY
		FOB Value	260.100	309.900	NA
	TOTAL EARNINGS		260.100	309.900	NA
	IMPORTS
		Capital Goods	2.252	2.252	NA
	TOTAL IMPORTS		2.252	2.252	NA
	Earnings Per Share (Rs.)		3.49	1.78	1.05

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.90	1.22	2.18
Net Profit Margin (PBT/Sales)	(%)	2.91	1.22	2.20
Return on Total Assets (PBT/Total Assets}	(%)	11.33	6.83	4.42
Return on Investment (ROI) (PBT/Networth)		(0.32)	(14.97)	(0.08)
Debt Equity Ratio (Total Liability/Networth)		(3.85)	(3.20)	(2.74)
Current Ratio (Current Asset/Current Liability)		1.88	8.47	1.37

LOCAL AGENCY FURTHER INFORMATION

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	Yes
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
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	No

FINANCIAL RESULTS

During the year profit after tax is Rs 7.851 Millions. The company is endeavoring to perform better during the current year.

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2012
Legal Case Agst Supplier – Akhil Textile	1.439
Legal Case Agst Supplier – Barnni Bazar	4.321

FIXED ASSETS:

· Land

· Building

· Computer

· Furniture and Fixtures

· Office Equipments

· Electrical Installation

· Vehicles

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] 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.53.66
UK Pound	1	Rs.86.37
Euro	1	Rs.69.24

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		14

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.