MIRA INFORM REPORT

Report Date :

03.01.2013

IDENTIFICATION DETAILS

Name :	KIN-TEX ENGINEERS PRIVATE LIMITED
Registered Office :	205, Majestic Shopping Center, 144, J.S.D. Road, Girgaon, Mumbai – 400 004, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.12.1987
Com. Reg. No.:	11-045725
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U29261MH1987PTC045725
TAN No.: [Tax Deduction & Collection Account No.]	MUMK04945D/ MUMK09027E
Legal Form :	Private Limited Liability Company
Line of Business :	Dealing in Raw Cotton and Cotton Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 15400
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Mr. Riken, finance head has confirmed that the business was ceased during 2011-2012 as the management of the subject was concentrating into the business of its group companies. From May 2012, the subject recommenced its business activity. Trade relations are reported as fair. Business is active. Payment terms are reported as slow but correct. 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 – 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 (FINANCIAL DETAILS)

Name :	Mr. Riken
Designation :	Finance Head
Contact No.:	91-22-61505001
Date :	02.01.2013

LOCATIONS

Registered Office :	205, Majestic Shopping Center, 144, J.S.D. Road, Girgaon, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-61505001
Mobile No.:	91-9819401278 (Mr. Sandip Chourasiya)
Fax No.:	Not Available
E-Mail :	bhadresh@bom2.vsnl.net.in sandipcotton@gmail.com
Administrative Office :	325/326, A to Z Industrial Estate, 3^rd Floor, Next to Peninsula Tower, Lower Parel, Mumbai – 400 013, Maharashtra, India

DIRECTORS

As on 29.09.2012

Name :

Mr. Bhadresh Vasantrai Mehta

Designation :

Director

Address :

402, Manju Apartment, 2-A, Narayan Dabholkar Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

28.10.1957

Date of Appointment :

30.12.1987

DIN No.:

01206174

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	U29261MH1987PTC045725	KIN-TEX ENGINEERS PRIVATE LIMITED	Director	30/12/1987	30/12/1987	-	Active	NO
2	U51900MH1999PLC120968	BRITEX COTTON INTERNATIONAL LIMITED	Director	23/07/1999	23/07/1999	-	Active	NO
3	U17119GJ1994PTC023788	GALAXY COTTON AND TEXTILES PRIVATE LIMITED	Director	03/05/2002	03/05/2002	-	Active	NO
4	U51909MH2008PLC182506	BHADRESH TRADING CORPORATION LIMITED	Managing director	01/06/2008	21/05/2008	-	Active	NO
5	U91110MH1921NPL000940	COTTON ASSOCIATION OF INDIA	Director	31/12/2008	31/12/2008	-	Active	NO
6	U01111MH2009PTC195634	BHADRESH AGRO INDUSTRIES PRIVATE LIMITED	Director	09/09/2009	09/09/2009	-	Active	NO
7	U14200MH2009PTC195633	BHADRESH NATURAL RESOURCES PRIVATE LIMITED	Director	09/09/2009	09/09/2009	-	Active	NO
8	U45202MH2009PTC195679	BHADRESH INFRA VENTURE PRIVATE LIMITED	Director	10/09/2009	10/09/2009	-	Active	NO
9	U52300MH2010PLC211200	BTC CASHCOT INDUSTRIES LIMITED	Director	22/12/2010	22/12/2010	-	Active	NO
10	U17110GJ2006PTC047456	RAGHUVANSHI COTTON GINNING AND PPRESSING PRIVATE LIMITED	Director	29/09/2012	30/01/2012	-	Active	NO
11	U17119GJ1998PTC034650	GIRIRAJ GINNING AND PRESSING PRIVATE LIMITED	Director	29/09/2012	30/01/2012	-	Active	NO
12	U40104GJ2011PTC067670	CRUST POWER PRIVATE LIMITED	Director	07/06/2012	07/06/2012	-	Active	NO

Name :

Mrs. Heena Bhadresh Mehta

Designation :

Director

Address :

402, Manju Apartment, 2-A, Narayan Dabholkar Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

13.10.1958

Date of Appointment :

30.12.1987

DIN No.:

00655763

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	U29261MH1987PTC045725	KIN-TEX ENGINEERS PRIVATE LIMITED	Director	30/12/1987	30/12/1987	-	Active	NO
2	U51900MH1999PLC120968	BRITEX COTTON INTERNATIONAL LIMITED	Director	23/07/1999	23/07/1999	-	Active	NO
3	U17119GJ1994PTC023788	GALAXY COTTON AND TEXTILES PRIVATE LIMITED	Director	03/05/2002	03/05/2002	-	Active	NO
4	U51909MH2008PLC182506	BHADRESH TRADING CORPORATION LIMITED	Director	21/05/2008	21/05/2008	-	Active	NO
5	U17110GJ2006PTC047456	RAGHUVANSHI COTTON GINNING AND PPRESSING PRIVATE LIMITED	Director	29/09/2012	30/01/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Riken
Designation :	Finance Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Bhadresh Vasantrai Mehta	9500
Heena Bhadresh Mehta	500
Total	10000

As on 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Dealing in Raw Cotton and Cotton Yarn.

Products :

Products Description	Item Code No.
Cotton Yarn	5205

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Indian Bank, Nepean Sea Road Branch, Nav Shanthi Nagar, Mumbai – 400 006, Maharashtra, India

v The South Indian Bank Limited

Facilities :

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
SHORT TERM BORROWINGS
Loan from Bhadresh V. Mehta	0.256	0.256
Total	0.256	0.256

Banking Relations :	--
Auditors :
Name :	J.D. Shah Associates Chartered Accountants
Address :	401, Purva Plaza Co-Operative Housing Society Limited, Simpoli Road, Opposite Reliance Energy Limited, Borivali (West), Mumbai – 400 092, Maharashtra, India
Mobile No.:	91-9322803666/ 9820094761
Email :	ca_jdshah@yahoo.co.in jdshah_it@yahoo.in
Income-tax PAN of auditor or auditor's firm :	ABGPJ9579C
Enterprise where KMP can exercise significant influence :	Bhadresh Trading Corporation Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

Reconciliation of the shares outstanding at the beginning and at the end of reporting period

Particulars	31.03.2012
	No. of shares	Amount (Rs. in millions)
Equity Shares
At the beginning of the period	10000	0.100
Issued during the period	--	--
Outstanding at the end of the period	10000	0.100

Terms / rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Details of shareholders holding more than 5% shares in the company

Particulars	31.03.2012
	No. of shares	% holding
Equity Shares of Rs.10 each fully paid
Mr. Bhadresh V. Mehta	9500	95.00%

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		0.100	0.100	0.100
2] Share Application Money		0.000	2.820	2.820
3] Reserves & Surplus		3.774	3.932	0.205
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3.874	6.852	3.125
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.256	0.256	0.099
TOTAL BORROWING		0.256	0.256	0.099
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		4.130	7.108	3.224
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.000	0.000	0.000
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		5.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	23.881	0.000
	Cash & Bank Balances	0.134	1.811	3.995
	Other Current Assets	0.000	0.000	0.000
	Loans, Advances & Deposits	4.730	4.537	0.135
Total Current Assets		4.864	30.229	4.130
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.060	20.476	0.040
	Other Current Liabilities	3.660	0.927	0.814
	Provisions	0.014	1.718	0.052
Total Current Liabilities		5.734	23.121	0.906
Net Current Assets		(0.870)	7.108	3.224
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4.130	7.108	3.224

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	0.000	26.521	0.000
		Other Income	0.000	0.392	0.000
		TOTAL	0.000	26.913	0.000
Less	EXPENSES
		Cost of goods sold	0.000	19.560	0.000
		Other Expenses	0.204	1.866	0.005
		TOTAL	0.204	21.426	0.005
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(0.204)	5.487	(0.005)
Less	FINANCIAL EXPENSES		(0.244)	0.095	0.001
	PROFIT/ (LOSS) BEFORE TAX		0.040	5.392	(0.006)
Less	TAX		0.014	1.666	0.000
	PROFIT/ (LOSS) AFTER TAX		0.026	3.726	(0.006)
	EARNINGS IN FOREIGN CURRENCY
		F.O.B Value of Exports	0.000	26.145	0.000
	TOTAL EARNINGS		0.000	26.145	0.000
	Earnings/ (Loss) Per Share (Rs.)		2.61	372.65	(0.63)

Expected Sales (2012-2013): Rs.150.000 millions

The above information has been parted by Mr. Riken (Finance Head).

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.00	13.84	0.00
Net Profit Margin (PBT/Sales)	(%)	0.00	20.33	0.00
Return on Total Assets (PBT/Total Assets}	(%)	0.82	17.84	(0.15)
Return on Investment (ROI) (PBT/Networth)		0.01	0.79	0.00
Debt Equity Ratio (Total Liability/Networth)		1.55	3.41	0.32
Current Ratio (Current Asset/Current Liability)		0.85	1.31	4.56

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	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	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

CORPORATE INFORMATION

The company is a private limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is primarily engaged in the business of dealing in Raw Cotton and Cotton Yarn.

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.54.39
UK Pound	1	Rs.88.75
Euro	1	Rs.72.19

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		31

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.