MIRA INFORM REPORT

Report Date :

04.01.2013

IDENTIFICATION DETAILS

Name :	KANDOI FABRICS PRIVATE LIMITED

Registered Office :	406, 4^th Floor, 33-A, Lotus House, New Marine Lines, Mumbai – 400020, Maharashtra

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	12.02.1990

Com. Reg. No.:	11-055377

Capital Investment / Paid-up Capital :	Rs. 7.413 Millions

CIN No.: [Company Identification No.]	U17120MH1990PTC055377

PAN No.: [Permanent Account No.]	AAACK3305M

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of HDPE woven sacks, jumbo bags, tarpaulin etc.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 1040000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is an established company having a satisfactory track record. Performance capacity of the company appears to be high. Financially seems to be strong. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct 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.

ECGC Country Risk Classification List – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

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 :	406, 4^th Floor, 33-A, Lotus House, New Marine Lines, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-64590029
Fax No.:	Not Available
E-Mail :	ranjanamimani@yahoo.com

Factory :	Plot No.375/8, Kachigam Char Rasta, Kachigam, Daman – 396210, India
Tel. No.:	91-260-2242920

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Niranjankumar Laxminaryan Agrawal

Designation :

Managing director

Address :

Ashish Building, 9th Floor, Flat No-903, Tirupati Apartment, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

20.01.1948

Date of Appointment :

12.02.1990

PAN No.:

AABPA4307K

DIN No.:

01255616

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	U17120MH1990PTC055377	KANDOI FABRICS PRIVATE LIMITED	Managing director	12/02/1990	12/02/1990	-	Active	NO
2	U17110MH1987PTC045723	VICOTEX FABRICS PRIVATE LIMITED	Director	02/02/1999	02/02/1999	-	Active	NO
3	U17110MH1997PTC108111	KANDOI POLYTEX PRIVATE LIMITED	Director	19/05/2000	19/05/2000	-	Active	NO

Name :

Mr. Vijaykumar Laxminarayan Agarwal

Designation :

Director

Address :

202, Doshi Palace, 2nd Floor, Walkeshwar Road, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

25.04.1940

Date of Appointment :

20.02.2009

PAN No.:

AABPA4310N

DIN No.:

01250424

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	U28129MH1985PTC037106	MAHAVIR PACKAGING PRIVATE LIMITED	Director	09/08/1985	09/08/1985	-	Amalgamated	NO
2	U17110MH1987PTC045723	VICOTEX FABRICS PRIVATE LIMITED	Director	30/12/1987	30/12/1987	-	Active	NO
3	U17110MH1997PTC108111	KANDOI POLYTEX PRIVATE LIMITED	Director	19/05/1997	19/05/1997	-	Active	NO
4	U45200MH1987PTC042505	RIDDHI SIDDHI DEVELOPERS PVT LTD	Director	18/02/1998	18/02/1998	-	Active	NO
5	U51900MH1994PLC076021	SYNFAB SALES & INDUSTRIES LIMITED	Director	02/06/2008	02/06/2008	10/12/2011	Active	NO
6	U17120MH1990PTC055377	KANDOI FABRICS PRIVATE LIMITED	Director	20/02/2009	20/02/2009	-	Active	NO

Name :

Mr. Pradeepkumar Laxminarayan Agarwal

Designation :

Director

Address :

Ashish Building, Flat No. 82, 8th Floor, Bhulabhai Desai Road, Mumbai - 400026, Maharashtra, India

Date of Birth/Age :

26.06.1963

Date of Appointment :

30.12.2008

PAN No.:

AABPA5295L

DIN No.:

02206116

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	U17110MH1997PTC108111	KANDOI POLYTEX PRIVATE LIMITED	Director	30/05/2008	30/05/2008	Active	NO
2	U17120MH1990PTC055377	KANDOI FABRICS PRIVATE LIMITED	Director	30/12/2008	30/12/2008	Active	NO

Name :

Mr. Rajeshkumar Vijaykumar Agarwal

Designation :

Director

Address :

2A, Jai Hind Building, Dr. Atamaram Merchan Road, Bhuleshwar, Mumbai – 400002, Maharashtra, India

Date of Birth/Age :

08.10.1988

Date of Appointment :

29.09.2012

PAN No.:

AEVPA0042H

DIN No.:

05163726

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	U17110MH1997PTC108111	KANDOI POLYTEX PRIVATE LIMITED	Director	29/09/2012	29/01/2012	Active	NO
2	U17120MH1990PTC055377	KANDOI FABRICS PRIVATE LIMITED	Director	29/09/2012	29/01/2012	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders		No. of Shares
Niranjankumar Laxminaryan Agrawal		7791
Niranjan Kumar Agarwal HUF		2465
Nirmala Agarwal		6760
Rahul Agarwal		520
Vijay Kumar Agarwal		3890
Vijay Kumar Agarwal HUF		650
Rajesh Agarwal		1365
Pradeep Kumar Agarwal		2780
Pradeep Kumar Agarwal HUF		1820
Rita Agarwal		7150
Subhashchand Agarwal- HUF		780
L.N. Kandoi and Sons		12350
Laxminarayan Agarwal - HUF		975
Vicotex Fabric Private Limited, India		24830
Total		74126

AS ON 29.09.2012

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		33.50
Directors or relatives of directors		49.84
Other top fifty shareholders		16.66
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of HDPE woven sacks, jumbo bags, tarpaulin etc.

Products :

ITC Code	Product Descriptions
3923	Sacks and Bags
39231090	HDPE/PP Woven Bags, Sacks and Fabrics

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø The Royal Bank of Scotland N.V., 4, North Avenue, Level 3, Maker Maxity, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

Ø HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400003, Maharashtra, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Long term Loans repayable on demand	0.000	84.765
Short term Loans repayable on demand	75.078	17.168
Total	75.078	101.933

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Other loans and advances	8.866	8.000
Loans repayable on demand	183.513	153.435
Total	192.379	161.435


Banking Relations :	--

Auditors :
Name :	Lalit Mehta and Associates Chartered Accountants
Address :	Bharat House, 2nd Floor, Office No 5, 104, Bombay Samachar Marg, Fort, Mumbai - 400001, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AACFL5763D

Related Parties :	Ø Arwin Tex Industries Ø Daman Polyfabs Ø Bhim Polyfab Industries Ø Kandoi Polytex Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

300,000	Equity Shares	Rs. 100/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

74,126	Equity Shares	Rs. 100/- each	Rs. 7.413 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		7.413	7.413	7.413
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		253.568	202.586	178.653
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		260.981	209.999	186.066
LOAN FUNDS
1] Secured Loans		75.078	101.933	102.497
2] Unsecured Loans		192.379	161.435	32.103
TOTAL BORROWING		267.457	263.368	134.600
DEFERRED TAX LIABILITIES		2.219	1.327	6.521

TOTAL		530.657	474.694	327.187

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		211.708	231.454	161.647
Capital work-in-progress		0.000	0.000	0.655

INVESTMENT		26.187	33.687	33.647
DEFERRED TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	96.244	82.724	43.167
	Sundry Debtors	178.810	124.932	54.519
	Cash & Bank Balances	16.477	3.786	20.125
	Other Current Assets	13.804	13.479	0.000
	Loans & Advances	69.593	32.481	50.784
Total Current Assets		374.928	257.402	168.595
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	38.212	34.667	21.976
	Other Current Liabilities	12.954	7.182	3.904
	Provisions	31.000	6.000	11.477
Total Current Liabilities		82.166	47.849	37.357
Net Current Assets		292.762	209.553	131.238

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		530.657	474.694	327.187

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income		772.300	337.903
		Other Income		11.585	8.622
		TOTAL (A)	784.599	783.885	346.525

Less	EXPENSES
		Raw Material Consumption		590.488	270.215
		Manufacturing and Other Expenses		121.192	58.163
		Employee remuneration and benefits		36.995	13.731
		Increase in stock		(29.557)	(17.604)
		TOTAL (B)	712.918	719.118	324.505

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			64.767	22.020

Less	FINANCIAL EXPENSES (D)			16.955	3.613

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			47.812	18.407

Less/ Add	DEPRECIATION/ AMORTISATION (F)			25.340	7.669

	PROFIT BEFORE TAX (E-F) (G)		71.681	22.472	10.738

Less	TAX (H)		N.A.	(1.461)	5.494

	PROFIT AFTER TAX (G-H) (I)		N.A.	23.933	5.244

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		N.A.	43.059	37.815

	BALANCE CARRIED TO THE B/S		N.A.	66.992	43.059

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	818.493	406.416	N.A.

	Earnings Per Share (Rs.)		N.A.	250.74	125.98

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	N.A.	3.05	1.51

Net Profit Margin (PBT/Sales)	(%)	N.A.	2.91	3.18

Return on Total Assets (PBT/Total Assets}	(%)	12.22	4.60	3.25

Return on Investment (ROI) (PBT/Networth)		0.27	0.11	0.06

Debt Equity Ratio (Total Liability/Networth)		1.34	1.48	0.92

Current Ratio (Current Asset/Current Liability)		4.56	5.38	4.51

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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17120MH1990PTC055377
Name of the company	KANDOI FABRICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	406, 4^th Floor, 33-A, Lotus House, New Marine Lines, Mumbai – 400020, Maharashtra, India Email: ranjanamimani@yahoo.com
This form is for	Modification of charge
Charge identification number of the modified	10224465
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	The Royal Bank of Scotland N.V., 4, North Avenue, Level 3, Maker Maxity, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India Email: reenabang@rediffmail.com
Nature of description of the instrument creating or modifying the charge	Supplemental Deed of Hypothecation of Movable Assets
Date of instrument Creating the charge	09.07.2012
Amount secured by the charge	Rs. 70.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As agreed by and with the Bank from time to time. Terms of Repayment As agreed by and with the Bank from time to time. Margin As agreed by and with the Bank from time to time. Extent and Operation of the charge The Bank is having first and exclusive charge on the security, given by the Company.
Short particulars of the property charged	Hypothecation by way of a) first and exclusive charge on entire current assets (stocks and book debts) both present and future b) first and exclusive charge on entire movable fixed assets, both present and future situated at unit no.1, S. No. 375/6 and 8, Kachigam, Daman c) First and exclusive charge on movable fixed assets, both present and future situated at Unit no. 2, S. No.51, Kachigam, Daman.
Date of Modification	24.03.2011
Particulars of the present modification	The existing charge amt of Rs.70.000 Millions is now secured as first and exclusive charge in favour of the lender (The Royal Bank of Scotland N.V.) instead of first pari passu charge. The existing charge amount and security shall remains the same.

FIXED ASSETS:

Ø Land

Ø Factory Building

Ø Office Premises

Ø Flats

Ø Plant and machinery

Ø Office equipments

Ø Furniture and Fixture

Ø Computer

Ø 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 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. 54.42
UK Pound	1	Rs. 88.29
Euro	1	Rs. 71.49

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		49

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.

MIRA INFORM REPORT

96.244

178.810

16.477

13.804

69.593

374.928

38.212

12.954

31.000

82.166

292.762

12.22

0.27

1.34

4.56

Unit