MIRA INFORM REPORT

Report Date :

22.10.2012

IDENTIFICATION DETAILS

Name :	ADINATH TEX CHEM LIMITED
Registered Office :	104, Jalaram Terrace Near Kadiwala School Ring Road, Surat-395002, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.10.2000
Com. Reg. No.:	04-38817
Capital Investment / Paid-up Capital :	Rs.2.925 Millions
CIN No.: [Company Identification No.]	U24110GJ2000PLC038817
TAN No.: [Tax Deduction & Collection Account No.]	SRTA00244G
Legal Form :	A Closely held public limited liability company.
Line of Business :	Manufacturer and Trader of Textiles Chemicals and Industrial Fabrics.
No. of Employees :	44 (Approximately)

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 43000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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 – 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.

INFORMATION PARTED BY

Name :	Mr. Neeraj Rajendra Jain
Designation :	Director
Contact No.:	91-261-2890593
Date :	20.10.2012

LOCATIONS

Registered Office :	104, Jalaram Terrace Near Kadiwala School Ring Road, Surat-395002, Gujarat, India
Tel. No.:	91-261-2470473
Mobile No.:	91-9377331489 (Mr. Navin Jain)
Fax No.:	91-261-2473711
E-Mail :	astclsurat@rediffmail.com ritesh_tulsyan998@yahoo.com jsomani_ca2001@yahoo.com accounts@adinathgroup.com
Website :	http://www.adinathgroup.com
Area :	3000sq.ft.
Location :	Owned
Factory / Branch Office :	247/29-30, GIDC, Pandesara, Surat-394221, Gujarat, India
Tel. No.:	91-261-2890593/ 289325/ 2470473/ 2470580
Fax No.:	91-261-2473711/ 2891080
E-Mail :	atclgujarat@rediffmail.com
Area :	1300sq.mtr.
Location :	Owned

DIRECTORS

AS ON 30.08.2011

Name :	Mr. Gyanendra Rajendra Jain
Designation :	Director
Address :	104, Jalaram Terrace Near Kadiwala School Ring Road, Surat-395002, Gujarat, India
Date of Birth/Age :	05.09.1968
Qualification :	Graduate
Date of Appointment :	19.10.2000
DIN No.:	01036498

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	U24110GJ2000PLC038817	Adinath Tex Chem Limited	Director	19/10/2000	19/10/2000	-	Active	NO

Name :	Mr. Neeraj Rajendra Jain
Designation :	Director
Address :	103, Jalaram Teresh Co-operative Society, Near Kadiwala School, Ring Road, Surat-395002, Gujarat, India
Date of Birth/Age :	04.04.1976
Qualification :	Graduate
Date of Appointment :	31.08.2003
DIN No.:	01036420

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	U24110GJ2000PLC038817	Adinath Tex Chem Limited	Director	31/08/2003	31/08/2003	-	Active	NO

Name :	Mr. Navin Manikchand Jain
Designation :	Director
Address :	703, City Park Appartment, Bharatar Road, Surajt-395017, Gujarat, India
Date of Birth/Age :	09.10.1980
Qualification :	Graduate
Date of Appointment :	02.06.2008
DIN No.:	02204636

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	U24110GJ2000PLC038817	Adinath Tex Chem Limited	Director	02/06/2008	02/06/2008	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.08.2011)

Names of Shareholders	No. of Shares
Gyanendra Kumar Jain	152200
Mahendra Patni	100
Navin Jian	500
Sanjay Kumar Jain	5100
Munni Devi Jain	20100
Simpal Jain	5100
Neeraj Kumar Jain	5100
Monika Jain	5000
Madhu Jain	5100
Minaxi Jain	10700
Sanjay Kumar Jain (HUF)	200
Nathu Lal C Jain - HUF	12100
Padam Kumar Nathulal Jain - HUF	12000
Brilliant Cosmosales Private Limited	11000
Manorath Dealers Private Limited	12000
Vasundhra Barter Private Limited	12000
Bajarangball Barter Private Limited	13650
Amarjit Motors	10600
Total	292550

(AS ON 30.08.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate	17.00
Directors or relatives of directors	83.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of Textiles Chemicals and Industrial Fabrics.
Products :	· Bed Linens · Bath Linens · Restaurant and Conference Linens · Hospital Linen · Made Up Articles · General Fabrics
Exports :
Products :	Textiles Chemicals and Industrial Fabrics
Countries :	Nigeria
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

44 (Approximately)

Bankers :

· Punjab National Bank

Sagrampura Branch, Empire State Building, Udhana Darwaja, Ring Road, Surat 395002, Gujarat, India

· ICICI Bank

Facilities :

Unsecured Loan0020	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Adinath Finance Company	0.000	0.716
Adinath Tex Fab	0.000	0.000
Gyanendra Jain	1.012	0.678
Mahendra Patni	0.000	0.371
Madhu Jain	0.623	0.085
Minaxi Jain	0.329	1.346
Monika Jain	1.400	1.092
Nathulal Chandmal Jain HUF	0.246	1.293
Neeraj Jain	0.000	1.241
S R Jain	0.000	0.075
Sanjay Jain	1.277	1.075
Simpal Jain	2.019	0.725
Munni Devi Jain	0.363	0.602
Total	7.269	9.299

Banking Relations :	--
Auditors :
Name :	J. Somani and Company Chartered Accountant
Address :	117, Shree Hari Park, Behind Center Point Building, Ring Road, Surat-395002, Gujarat, India
Name :	M R and Company Chartered Accountant
Associates/Subsidiaries :	· Adinath Chemical Industries · Jainco Enterprises

CAPITAL STRUCTURE

AS ON 30.08.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/- each	Rs.4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
292550	Equity Shares	Rs.10/- each	Rs.2.925 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		2.925	1.505	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7.920	7.614	0.000
4] (Accumulated Losses)		0.000	0.000	(0.036)
NETWORTH		10.845	9.119	0.464
LOAN FUNDS
1] Secured Loans		2.494	0.000	0.000
2] Unsecured Loans		6.595	7.269	9.299
TOTAL BORROWING		9.089	7.269	9.299
DEFERRED TAX LIABILITIES		1.113	1.004	0.808
TOTAL		21.047	17.392	10.571
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.480	8.835	6.356
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.050	0.050	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.764	6.109	3.842
	Sundry Debtors	3.158	1.757	2.699
	Cash & Bank Balances	0.704	0.810	0.140
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.768	1.706	0.640
Total Current Assets		12.394	10.382	7.321
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.772	1.816	3.071
	Other Current Liability	0.000	0.000	0.000
	Provisions	0.105	0.059	0.035
Total Current Liabilities		0.877	1.875	3.106
Net Current Assets		11.517	8.507	4.215
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		21.047	17.392	10.571

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	34.796	15.434	12.596
		Other Income	0.056	0.068	0.096
		TOTAL (A)	34.852	15.502	12.692
Less	EXPENSES
		Purchases	22.766	11.456	6.456
		Direct Expenses	5.719	3.014	2.669
		Administration Expenses	4.496	1.548	1.403
		Selling and Distribution Expenses	0.610	0.205	0.111
		Increase/(Decrease) in Finished Goods	(0.654)	(2.267)	0.906
		TOTAL (B)	32.937	13.956	11.545
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.915	1.546	1.147
Less	FINANCIAL EXPENSES (D)		0.784	0.706	0.563
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.131	0.840	0.584
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.612	0.474	0.373
	PROFIT BEFORE TAX (E-F) (G)		0.519	0.366	0.211
Less	TAX (H)		0.214	0.257	0.112
	PROFIT AFTER TAX (G-H) (I)		0.305	0.109	0.099
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.073	(0.036)	(0.136)
	BALANCE CARRIED TO THE B/S		0.378	0.073	(0.036)
	Earnings Per Share (Rs.)		1.04	0.00	0.00

Particulars	31.03.2012
Sales Turnover (Approximately)	55.000

Expected Sales (2012-13): Rs.70.000 Millions

The above information has been parted by Mr. Neeraj

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.87	0.70	0.78
Net Profit Margin (PBT/Sales)	(%)	1.49	2.37	1.67
Return on Total Assets (PBT/Total Assets}	(%)	2.37	1.90	1.54
Return on Investment (ROI) (PBT/Networth)		0.05	0.04	0.45
Debt Equity Ratio (Total Liability/Networth)		1.02	1.11	28.47
Current Ratio (Current Asset/Current Liability)		14.13	5.53	2.35

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	Yes
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	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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

OPERATION

The company is engaged in the business of Manufacturing and Trading of Hospital Cloths, Hotels and Bath Lenin Items. Company achieved a tremendous growth in topline as well as bottomline in comparison of previous year. With the improving conditions with the Indian Markets we hope better future in coming years.

FORM 8:

Corporate identity number of the company	U24110GJ2000PLC038817
Name of the company	ADINATH TEX CHEM LIMITED
Address of the registered office or of the principal place of business in India of the company	104, Jalaram Terrace Near Kadiwala School Ring Road, Surat-395002, Gujarat, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Others
Particular of charge holder	Punjab National Bank, Sagrampura Branch, Empire State Building, Udhana Darwaja, Ring Road, Surat 395002, Gujarat, India Email: bo1595@pnb.co.in
Nature of instrument creating charge	Hypothecation of goods and book debts to secure cash credit facility. Hypothecation of moveable assets forming part of fixed/ block assets.
Date of instrument Creating the charge	02.07.2011
Amount secured by the charge	Rs. 10.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 4.00% above BR (10.00%) present effective rate 14.00% p.a. with monthly rests. Terms of repayment Repayable on demand Margin Stock : 25% Receivable : 50% Extent and operation of the charge The charge will operate as first and exclusive charge over the securities for the total outstanding in all the credit facilities accounts
Short particulars of the property charged (Including location of the property)	Hypothecation of stock and Book Debts. First Charge on Plant and Machinery of the Comapny situated at 247/29, 30 GIDC, Pandesara, Surat
Particulars of the present modification	The fund based working capital limits of the company enhanced by Rs. 7.500 million and the total amount of charge now stands at Rs.10.000 millions.

FIXED ASSETS:

· Air Conditioner

· Boiler

· Calencering Machine

· Checking Table

· Chimney and Ductmg

· Car

· Consumable Stores

· Computer

· D.G. Set

· EPBX SEXT

· E T Plant

· Electrification

· Embrofiary Machine

· Fax

· Folding Machine

· Furniture

· Gas Connection GGCI

· Gas Pipe Line

· Generator

· Hero Honda

· Hydro Extractor

· Jigger Machine

· Kinetic

· Machinery

· Mobile

· Office Equipments

· Padding Mangle Mao

· Revo Joint Sweing

· S S Jet Dyeing Machine

· Steamlme

· Syntel EPXB 521

· Stitching Machine

· Tempo Mindoor

· TVS Victor

· Trolly

· Water Container

· Wate Rpipleling

· Vehicle

· Furniture

· Winch Machine

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 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 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.86.14
Euro	1	Rs.70.17

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	NIT

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	YES
--AFFILIATION	YES/NO	YES
--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	-

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.