MIRA INFORM REPORT

Report Date :

22.10.2012

IDENTIFICATION DETAILS

Name :	BHARAT TEXTILES AND PROOFING INDUSTRIES LIMITED
Registered Office :	994, Sathyavedu Road, T, Suravalikandigai, Sirupuzhalpet (P), Gummidipoondi-601201, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.12.1990
Com. Reg. No.:	18-020072
Capital Investment / Paid-up Capital :	Rs.58.571 Millions
CIN No.: [Company Identification No.]	L17111TN1990PLC020072
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on The Stock Exchanges.
Line of Business :	Manufacturing and Marketing of Cotton Canvas.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 29000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears huge accumulated losses. However, in the year 2010-2011 company has performed well and slowly wiping at losses. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing with some caution. NOTE: The shares of the subject company is not traded on BSE and NSE from last 30 days.

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/ Factory :	994, Sathyavedu Road, T, Suravalikandigai, Sirupuzhalpet (P), Gummidipoondi-601201, Tamilnadu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	premnkb@gmail.com
Administrative Office :	39, Anna Salai, Inside Devi Theatre Compound, 205, ABC Trade Center, Chennai-600002, Tamilnadu, India
Tel. No.:	91-44-42131866
Fax No.:	91-44-26690405

DIRECTORS

AS ON 31.03.2011

Name :

Mr. Ajeet Kumar

Designation :

Managing Director

Address :

21, Tholasingam Street, Chennai-600079, Tamilnadu, India

Date of Birth/Age :

12.04.1967

Date of Appointment :

21.12.1990

Din No.:

01023609

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	Company/ LLP Status	Defaulting status
1	L17111TN1990PLC020072	BHARAT TEXTILES AND PROOFING INDUSTRIES LIMITED	Managing director	01/04/2012	21/12/1990	Active	NO

Name :

Mr. Anil Bhandari Ugam Chand Bhandari

Designation :

Director

Address :

21, Tholasingam Street, Chennai-600079, Tamilnadu, India

Date of Birth/Age :

17.05.1978

Date of Appointment :

15.04.2002

Din No.:

02722372

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	Company/ LLP Status	Defaulting status
1	L17111TN1990PLC020072	BHARAT TEXTILES AND PROOFING INDUSTRIES LIMITED	Whole-time director	01/04/2012	15/04/2002	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2903830	49.58
Sub Total	2903830	49.58
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	2903830	49.58
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	100	0.00
Foreign Institutional Investors	50700	0.87
Sub Total	50800	0.87
(2) Non-Institutions
Bodies Corporate	76000	1.30
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	2218710	37.88
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	209000	3.57
Any Others (Specify)	398800	6.81
Non Resident Indians	394500	6.74
Hindu Undivided Families	4300	0.07
Sub Total	2902510	49.56
Total Public shareholding (B)	2953310	50.42
Total (A)+(B)	5857140	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	5857140	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Cotton Canvas.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Chemically Processed Canvas	5211
Common Proof Tarpaulins	5211
Chemical Proof Tarpaulins	5211

PRODUCTION STATUS [AS ON 31.03.2011]

PARTICULARS	INSTALLED CAPACITY
Common Proof Tarpaulin	26.25 Lakhs
Chemically processed Canvas	38.60 Lakhs

NOTE:

1. Licensing of capacity is not applicable.

2. All Capacities are expressed on triple shift basis.

3. The Installed capacities are as per the certificate given by the Technical office-in-charge on which the auditors have relied, being technical matter.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· ICICI Bank Limited, 84, NSC Bose Road, Chennai-600079, Tamilnadu, India

· Kotak Mahindra Bank Limited, Dass India Tower, 2nd Line Beach , Chennai-600001, Tamilnadu, India

· Standard Chartered Bank, 187, Mount Road, Chennai-600006, Tamilnadu, India

Facilities :

SECURED LOAN	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans	19.172	44.979
TOTAL	19.172	44.979
UNSECURED LOAN	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans	26.701	14.016
TOTAL	26.701	14.016

Banking Relations :	--
Auditors :
Name :	Sakaria and Associates Chartered Accountants
Address :	Kanchan Plaza, 32/156, Mint Street, (First Floor), Chennai-600079, Tamilnadu, India
PAN No:	ADOPA6243G

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5857140	Equity Shares	Rs.10/- each	Rs.58.571 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		58.571	58.571	58.571
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3.300	3.300	3.300
4] (Accumulated Losses)		(54.512)	(60.254)	(60.995)
NETWORTH		7.359	1.617	0.876
LOAN FUNDS
1] Secured Loans		19.172	44.979	47.835
2] Unsecured Loans		26.701	14.016	15.503
TOTAL BORROWING		45.873	58.995	63.338
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		53.232	60.612	64.214
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		32.071	34.843	37.250
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		6.442	5.825	7.107
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.393	8.573	19.265
	Sundry Debtors	23.789	13.839	4.955
	Cash & Bank Balances	3.542	2.776	3.148
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.029	1.102	1.826
Total Current Assets		42.753	26.290	29.194
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.991	5.510	8.802
	Other Current Liabilities	0.468	0.467	0.535
	Provisions	2.575	0.369	0.000
Total Current Liabilities		28.034	6.346	9.337
Net Current Assets		14.719	19.944	19.857
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		53.232	60.612	64.214

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	96.717	89.198	41.148
		Other Income	0.683	1.131	0.900
		TOTAL (A)	97.400	90.329	42.048
Less	EXPENSES
		Consumption Materials Changes Inventories	65.964	56.750
		Manufacturing Service Costs	7.757	9.687
		Employee Related Expenses	7.784	5.980	29.612
		Administrative Selling Other Expenses	2.532	2.863
		Extraordinary Items	(5.004)	0.000
		TOTAL (B)	79.033	75.280	29.612
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		18.367	15.049	12.436
Less	FINANCIAL EXPENSES (D)		7.893	8.957	8.295
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.474	6.092	4.141
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.750	3.700	3.700
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		6.724	2.392	0.441
Less	TAX (H)		0.982	1.651	(7.040)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		5.742	0.741	7.481
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(60.254)	(60.995)	(68.476)
	BALANCE CARRIED TO THE B/S		(54.512)	(60.254)	(60.995)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3.294	11.615	9.230
	IMPORTS
		Raw Materials	0.533	0.450	0.114
	Earnings / (Loss) Per Share (Rs.)		0.98	0.13	1.28

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012	30.06.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	5^th Quarter
Net Sales	16.610	20.620	10.740	56.920	16.260
Total Expenditure	12.690	15.730	6.750	52.230	13.450
PBIDT (Excl OI)	3.920	4.890	3.990	4.690	2.810
Other Income	0.000	0.000	0.000	0.000	0.000
Operating Profit	3.920	4.890	3.980	4.690	2.810
Interest	1.690	1.740	1.840	2.640	1.430
Exceptional Items	0.640	0.000	0.000	0.000	0.000
PBDT	2.860	3.150	2.130	2.050	1.380
Depreciation	0.940	0.950	0.950	0.820	0.870
Profit Before Tax	1.920	2.200	1.180	1.230	0.510
Tax	0.000	0.000	0.000	2.250	0.000
Profit After Tax	1.920	2.200	1.180	-1.020	0.510
Net Profit	1.920	2.200	1.180	-1.020	0.510

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.90	0.82	17.79
Net Profit Margin (PBT/Sales)	(%)	0.07	2.68	1.07
Return on Total Assets (PBT/Total Assets}	(%)	8.99	3.91	0.66
Return on Investment (ROI) (PBT/Networth)		0.91	1.48	0.50
Debt Equity Ratio (Total Liability/Networth)		10.04	40.41	82.96
Current Ratio (Current Asset/Current Liability)		1.53	4.14	3.13

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	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	No
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	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

COURSE OF BUSINESS AND OUTLOOK:

The company had achieved a turnover of Rs.97.400 Millions as compared to a turnover of Rs.90.329 Millions which is up by around 8% compared to previous year. The net profit after tax stood at Rs.5.742 Millions as compared to Rs.0.741 Million in the previous year.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10051343
Corporate identity number of the company	L17111TN1990PLC020072
Name of the company	BHARAT TEXTILES AND PROOFING INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	994, Sathyavedu Road, T, Suravalikandigai, Sirupuzhalpet (P), Gummidipoondi-601201, Tamilnadu, India
Type of charge	Immovable Property Movable Property [not being pledge]
Particular of charge holder	ICICI Bank Limited, 84, NSC Bose Road, Chennai-600079, Tamilnadu, India
Nature of description of the instrument creating or modifying the charge	Letter Dated 29/07/2011
Date of instrument Creating the charge	29.07.2011
Amount secured by the charge	Rs.21.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 15 % per annum payable half yearly Terms of Repayment As per the agreement Extent and Operation of the charge 1. All those pieces and parcels of land Admeasuring 2.97 acres situated at Sirupuzhal Pettai, Gummidipoondi Taluk, Chengai MGR Dist. In the state of Tamilnadu bearing survey no. 1005/3, 1005/6A, 1005/7A, 1006/2A, 1006/3A, 1005/6B, 1005/7B, 1006/2B and 1006/3B hereby released and the remaining charge / terms and conditions as per agreement dated 27/03/2007 continues . Others Other securities of Guarantor as per agreement
Short particulars of the property charged	1. All those pieces and parcels of land along with the building constructed thereon admeasuring 8.13 Acres situated at Sirupuzhal Pettai, Gummidipoondi Taluk, Chengai MGR Dist. In the state of Tamilnadu bearing survey no.994/2a,994/21b,999/2c,999/2D,1005/5A,1005/5B,999/2B,994/2E,1005/5C2,999/5A,999/5B,999/6A,994/2D,1005/5C1,999/1,999/2,999/4,995,994/1,999/6B, 999/3C,999/3B,999/3A 2.Hypothecation assets as per agreement
Date of latest modification prior to the present modification	27.03.2007
Particulars of the present modification	By the present modification, the existing overall limit to an extent of Rs. 21.000 Millions Charge is secured by immovable property - land dmeasuring 2.97 Acres situated at Sirupuzhal Pettai, Gummidipoondi Taluka, Chengai MGR Dist. in the state of Tamil Nadu bearing survey no 1005/3, 1005/6A, 1005/7A, 1006/2A, 1005/3A, 1005/6B, 1005/7B, 1006/2B and 1006/3B.

FIXED ASSETS:

· Building

· Plant and Machinery

· Vehicles

· Furniture and Fixtures

· Office Equipments

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 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.86.15
Euro	1	Rs.70.17

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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	3
--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	NO
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.