MIRA INFORM REPORT

Report Date :

23.04.2013

IDENTIFICATION DETAILS

Name :	COLOURTEX INDUSTRIES LIMITED (w.e.f. 20.03.2007)
Formerly Known As :	COLOURTEX INDUSTRIES PRIVATE LIMITED PANDESARA DYES AND INTERMEDIARIES PRIVATE LIMITED
Registered Office :	S. No.80, Bhestan, G.I.D.C., Pandesar, Surat – 394221, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.10.1989
Com. Reg. No.:	04-012922
Capital Investment / Paid-up Capital :	Rs.38.306 Millions
CIN No.: [Company Identification No.]	U24231GJ1989PLC012922
TAN No.: [Tax Deduction & Collection Account No.]	SRTP00070A
PAN No.: [Permanent Account No.]	AABCP6359B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Trader of Dyes and Intermediates.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 14500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having a good track record. There appears drastic fall in the profitability during the current year. However, general financial position of the company seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual 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.

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. Virendra Chauhan
Designation :	Export Department
Contact No.:	91-261-2891427
Date :	22.04.2013

LOCATIONS

Registered Office :	S. No.80, Bhestan, G.I.D.C., Pandesar, Surat – 394 221, Gujarat, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	vinod@colourtex.co.in colourtexind@drdcs.net mitul.naik@colourtex.co.in mitulnaik30@gmail.com
Website :	www.colourtex.co.in
Head Quarter :	Survey No.91, Opposite Navin Fluorine Industries, Bhestan, Surat – 395023, Gujarat, India
Tel. No.:	91-261-2897800/ 801/ 802
Fax No.:	91-261-2892364/ 2890080
E-Mail :	sales.surat@colourtex.co.in
Factory 1:	Survey No.74/79/80, Plot No.158/15 to 19, 19, 438-1, 2, 3, 4, Bhestan G.I.D.C., Pandesara, Surat – 394 221, Gujarat, India
Tel. No.:	91-261-2891428/ 2891429/ 2897800/ 801/ 802
Fax No.:	91-261-2890080/ 2892364
E-Mail :	colourtex@vsnl.com sales.surat@colourtex.co.in colourtexind@drdcs.net info@colourtex.co.in
Website :	www.colourtex.co.in
Area :	69000 Sq. mtrs. (Land area – 80000 Sq. mtrs.)
Location :	Owned
Factory 2 :	Kim, Karanj, Bhestan, District Surat, Gujarat, India
Factory 3 :	Survey No.75/50/80, Plot No.158, Bhestan, GIDC, Pandesara, Surat – 394 221, Gujarat, India
Factory 4 :	Plot No. 8108/2, 288/1-2, 289/2 G.I.D.C., Sachin, Surat – 394230, Gujarat, India
Overseas Office 1 :	Colourtex Inc. 8000 Corporate Lane Drive, Suite # 105, Charlotte, NC 28226, USA
Tel. No.:	+ 1 704 540 1528
Fax No.:	+ 1 704 540 1529
E-Mail :	ctxdyes@bellsouth.net
Overseas Office 2 :	Colourtex (Asia Pacific) Limited Unit 01, 11/F, Technology Plaza, 651, King's Road, North Point, Hong Kong.
Tel. No.:	+852 35273633
Fax No.:	+852 35273661
E-Mail :	richardchow@colourtexap.com
Branch Office :	Located at: v Ahmedabad v Bhilwara v Chandigarh v Chennai v Ghaziabad v Ichhalkaranji v Mumbai v Tirupur
Sales Office :	Located at: v Bangalore v Delhi v Gorakhpur v Hyderabad v Kanpur v Kolkata

DIRECTORS

As on: 28.09.2012

Name :	Mr. Vishadkumar Jayantilal Jariwala
Designation :	Director
Address :	4, Etka, Opposite Trinidhi Apartment, Ghaddod Road, Surat – 395007, Gujarat, India
Date of Birth/Age :	26.09.1975
Qualification :	B Com
Date of Appointment :	29.12.1994
DIN No.:	00076314
Name :	Mr. Jayantilal Thakordas Jariwala
Designation :	Managing Director
Address :	3, Etka, Opposite Trinidhi Apartment, Ghad Dod Road, Surat – 395001, Gujarat, India
Date of Birth/Age :	04.11.1943
Qualification :	B Com
Date of Appointment :	02.03.2011
DIN No.:	00110103
Name :	Mr. Kanakkumar Jayantilal Jariwala
Designation :	Director
Address :	3, Etka, Opposite Trinidhi Apartment, Ghad Dod Road, Surat – 395 001, Gujarat, India
Date of Birth/Age :	17.11.1973
Qualification :	BSC
Date of Appointment :	18.01.1994
DIN No.:	00110182
Name :	Mr. Maheshchandra Dhansukhlal Kabutarwala
Designation :	Director
Address :	4, Etka Society, Opposite Mamta Apartment, Ghad Dod Road, Surat – 395 001, Gujarat, India
Date of Birth/Age :	16.11.1965
Qualification :	B Com
Date of Appointment :	22.09.1993
DIN No.:	00110317
Name :	Mr. Pravinchandra Dhansukhlal Kabutarwala
Designation :	Director (Operating and HRD)
Address :	4, Etka Society, Opposite Mamta Apartment, Ghad Dod Road, Surat – 395 001, Gujarat, India
Date of Birth/Age :	03.10.1956
Qualification :	BSC
Date of Appointment :	23.10.1989
DIN No.:	00110351

KEY EXECUTIVES

Name :	Mr. Virendra Chauhan
Designation :	Export Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Equity Shares
Jayantilal Jariwala	1019044
Kanakkumar Jariwala	397786
Vishadkumar Jariwala	393479
Rameshchandra Kabutarwala	367974
Pravinchandra Kabutarwala	339687
Bipinchandra Kabutarwala	365170
Maheshchandra Kabutarwala	335885
Bhavesh Kabutarwala	2381
Jenish Kabutarwala	2807
Ketan Kabutarwala	2313
Shyam Kabutarwala	125
Shilpa Jariwala	3200
Jay Kabutarwala	125
Krunal Kabutarwala	323
Urmila Asumati Trust (Proprietor of Shree Corporation Trustee-Jayantilal Thakordas), India	281
Thakor Private Trust Trustee- Vishadkumar Jariwala	1
Total	3230581

Names of Shareholders	No. of Preference Shares
Jayantilal Jariwala	48000
Kanakkumar Jariwala	36000
Vishadkumar Jariwala	36000
Rameshchandra Kabutarwala	60000
Pravinchandra Kabutarwala	60000
Bipinchandra Kabutarwala	48000
Maheshchandra Kabutarwala	48000
Bhavesh Kabutarwala	12000
Jenish Kabutarwala	24000
Ketan Kabutarwala	24000
Jagrutiben Kabutarwala	24000
Urmilaben Jariwala	24000
Hemlataben Kabutarwala	24000
Ishwariben Kabutarwala	24000
Ushaben Kabutarwala	12000
Shyam Kabutarwala	24000
Shilpa Jariwala	12000
Jyotiben Jariwala	24000
Jay Kabutarwala	24000
Krunal Kabutarwala	12000
Total	600000

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Trader of Dyes and Intermediates.

Products :

Product Description	Item Code No.
Synthetic Organic Dyes Other Organic Dyes, Other Organic Surface Active Agent	3204
Synthetic Organic Dyes Other Organic Dyes, Other Organic Surface Active Agent	32041119

Terms :

Selling :

Cash and Credit (30 days/ 60 days)

Purchasing :

Cash and Credit (30 days/ 60 days)

PRODUCTION STATUS (As on: 31.03.2012)

Particulars	Actual Production
S.O. Dyes	2131592
Dyes Intermediates	29678
Organic Surface Active Agents	1013
Misc. Chemical Products	250162
Intermediates	1324263
Mineral Fuel, Oils, etc.	4500
Articles of Plastics	5

GENERAL INFORMATION

Customers :

Industries

No. of Employees :

500 (Approximately)

Bankers :

· IDBI Bank Limited

· Bank of Baroda

· Standard Chartered Bank, Abhijeet II, Ground Floor, Near Mithakali Six Roads, Ahmedabad – 380 006, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Loans taken for fixed assets (The company has availed Term Loan facility from IDBI Bank Limited)	581.991	155.485
Working capital loans from banks (Secured By Hypothecation of Current Assets)	680.112	923.589
Total	1262.103	1079.074

Banking Relations :	--
Auditors :
Name :	S.N.K. and Company Chartered Accountants
Address :	45, Sai Nagar Society, Behind Bhulka Bhavan School, Adajan Road, Surat – 395009, India
Tel. No.:	91-261-2656273-4/ 6544791-2/ 3299540-47
Fax No.:	91-261-2656868
E-Mail:	snk@snkca.com snk@youtele.com
Website :	www.snkca.com
PAN No.:	AAJFS8455L
Related Parties :	· Bhavin Fashions · Bhavin Textiles · Bhavin Industries · Vipan Industries · C M C Industries · Coconut Software Private Limited · CTX Lifescience Private Limited · Dhanesh Enterprise Private Limited · Thakor Private Trust · Shree Corporation (Prop.Urmila Asumati Trust)
Subsidiary Company :	· C T X Dyestuffs Private Limited · Colourtex (Asia Pacific) · Colourtex Inc. · Coltex.S.A

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
22180000	Equity Shares	Rs.10/- each	Rs.221.800 Millions
7650000	Preference Shares	Rs.10/- each	Rs.76.500 Millions
	Total		Rs.298.300 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3230581	Equity Shares	Rs.10/- each	Rs.32.306 Millions
600000	Preference Shares	Rs.10/- each	Rs.6.000 Millions
	Total		Rs.38.306 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		38.306	37.500	29.882
2] Share Application Money		0.000	0.806	0.000
3] Reserves & Surplus		3597.049	3535.833	2457.738
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3635.355	3574.139	2487.620
LOAN FUNDS
1] Secured Loans		1262.103	1079.074	989.895
2] Unsecured Loans		2733.841	1897.928	2081.148
TOTAL BORROWING		3995.944	2977.002	3071.043
DEFERRED TAX LIABILITIES		0.000	0.000	14.897
TOTAL		7631.299	6551.141	5573.560
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2696.629	2202.515	2011.588
Capital work-in-progress		538.802	317.042	122.165
INVESTMENT		26.516	26.515	62.563
DEFERREX TAX ASSETS		13.246	25.268	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2932.203	2747.821	2043.169
	Sundry Debtors	3222.382	2761.720	2342.173
	Cash & Bank Balances	339.019	214.129	101.118
	Other Current Assets	19.978	19.713	0.000
	Loans & Advances	660.973	940.920	708.069
Total Current Assets		7174.555	6684.303	5194.529
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2460.365	2353.020	1599.258
	Other Current Liabilities	307.583	189.988	76.844
	Provisions	50.501	161.494	141.193
Total Current Liabilities		2818.449	2704.502	1817.295
Net Current Assets		4356.106	3979.801	3377.234
MISCELLANEOUS EXPENSES		0.000	0.000	0.010
TOTAL		7631.299	6551.141	5573.560

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	12698.700	11222.632	8565.791
		Other Income	18.307	15.323	5.886
		TOTAL (A)	12717.007	11237.955	8571.677
Less	EXPENSES
		Cost of materials consumed	9311.648	8324.311
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(225.625)	(471.354)
		Employee benefit expense	521.555	389.381
		Other expenses	2129.005	1897.285
		TOTAL (B)	11736.583	10139.623	7525.195
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		980.424	1098.332	1046.482
Less	FINANCIAL EXPENSES (D)		336.930	314.732	268.233
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		643.494	783.600	778.249
Less/ Add	DEPRECIATION/ AMORTISATION (F)		546.347	485.949	456.018
	PROFIT BEFORE TAX (E-F) (G)		97.147	297.651	322.231
Less	TAX (H)		35.660	100.607	114.586
	PROFIT AFTER TAX (G-H) (I)		61.487	197.044	207.645
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Direct Export	3148.936	2906.222	2116.702
	TOTAL EARNINGS		3148.936	2906.222	2116.702
	IMPORTS
		Raw Materials	2875.427	2545.124	1744.387
		Capital Goods	19.413	17.243	7.689
		Advance for Capital Goods	17.518	45.313	81.813
	TOTAL IMPORTS		2912.358	2607.680	1833.889
	Earnings Per Share (Rs.)		19.03	63.87	69.55

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.48	1.75	2.42
Net Profit Margin (PBT/Sales)	(%)	0.76	2.65	3.76
Return on Total Assets (PBT/Total Assets}	(%)	0.98	3.35	4.47
Return on Investment (ROI) (PBT/Networth)		0.03	0.08	0.13
Debt Equity Ratio (Total Debt/Networth)		1.10	0.83	1.23
Current Ratio (Current Asset/Current Liability)		2.55	2.47	2.86

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors	2460.365	2353.020	1599.258
Total	2460.365	2353.020	1599.258

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	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	No
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)	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

OPERATIONS:

The performance of the company during the year 2011-12 was satisfactory. The company has earned net revenue of Rs.12698.700 Millions from operations and Rs. 18.307 Millions from other sources for the year. After providing an expenditure of Rs. 12655.520 Millions, the company has earned Net Profit of Rs. 61.487 Millions.

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Loans and advances from directors	2733.841	1897.928
Total	2733.841	1897.928

CONTINGENT LIABILITIES:

(Rs. In Millions)

Particular	31.03.2012	31.03.2011
Guarantees issued by the Company’s Bankers on behalf of the Company
Bank of Baroda	22.251	12.600
IDBI Bank	37.889	1.000
Letter of credit opened by banks
IDBI Bank	NIL	22.300
Disputed Excise Duty and Other demands	6.856	6.016
Income Tax demands where the cases are pending at various stages of appeal with the authorities	14.098	14.098

FIXED ASSETS:

Tangible Assets

· Buildings

· Residential Building

· Factory Building

· Plant and Equipment

· Factory Equipments

· Vehicles

· Computer Equipments

· Office Equipments

· Land

· Furniture and Fixtures

Intangible Assets

· Computer Software

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.54.17
UK Pound	1	Rs.82.45
Euro	1	Rs.70.70

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		52

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.