MIRA INFORM REPORT

Report Date :

05.06.2013

IDENTIFICATION DETAILS

Name :	EMPITEX (FABRICS) PRIVATE LIMITED
Registered Office :	2nd Floor, Kailash Silk Mills Compound, A K Road, Sakinaka Andheri (East), Mumbai – 400072, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	17.11.1987
Com. Reg. No.:	11-045319
Capital Investment / Paid-up Capital :	Rs. 48.400 Millions
CIN No.: [Company Identification No.]	U17100MH1987PTC045319
TAN No.: [Tax Deduction & Collection Account No.]	MUME01748F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of Embroidered Fabrics for Men and Ladies Wears.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 680000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears slight dip in its profitability during 2012. However, general financial position seems to be good. 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 condition.

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

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 :	2nd Floor, Kailash Silk Mills Compound, A K Road, Sakinaka Andheri (East), Mumbai – 400072, Maharashtra, India
Tel. No.:	91-22-28216287 / 28510611 / 28518901 / 28515394
Fax No.:	91-22-28516755
E-Mail :	atul.o.gupta@gmail.com
Mills :	Plot No.F-1/21, M.I.D.C., Tarapur District, Thane, Maharashtra, India
Tel. No.:	91-02525-70790

DIRECTORS

AS ON 06.08.2012

Name :	Mr. Vivek Premprakash Kamal
Designation :	Director
Address :	206, Menka, Nalanda Menka Society, Seven Bunglow, Andheri (West), Mumbai - 400058, Maharashtra, India
Date of Birth/Age :	28.07.1972
Date of Appointment :	15.09.1997
DIN No.:	00682302

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	U17110MH1988PTC048501	KAMAL FABRICS PRIVATE LIMITED	Director	09-09-91	09-09-91	08-04-10	Active	NO
2	U17120MH1991PTC063331	KAMAL FABRICS EXPORTS PRIVATE LIMITED	Director	19-09-91	19-09-91	-	Active	NO
3	U17100MH1987PTC045319	EMPITEX (FABRICS) PRIVATE LIMITED	Director	15-09-97	15-09-97	-	Active	NO
4	U17110MH2003PTC138759	EMPILON FABRICS PRIVATE LIMITED	Director	21-01-03	21-01-03	-	Active	NO

Name :	Ms. Subhash Kumari Mohinder Kumar Tikiya
Designation :	Director
Address :	401, Mel Bourne, Shastri Nagar, Lokhandwala Complex, Andheri (West), Mumbai - 400058, Maharashtra , India
Date of Birth/Age :	14.03.1951
Date of Appointment :	01.02.1993
DIN No.:	00953772
Name :	Ms. Urmila S Tikiya
Designation :	Director
Address :	304, Jewel House, Seven Bunglow, Andheri (West), Mumbai - 400058, Maharashtra, India
Date of Birth/Age :	12.10.1956
Date of Appointment :	01.02.1993

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 06.08.2012

Names of Shareholders	No. of Shares
Poonam S. Tikiya	21970
Poonam R. Tikiya	23180
Chanchal P. Kamal	21250
Mohinder Kumar Tikiya HUF	2500
Vivek P. Kamal	18000
Prem P. Kamal	20010
Rajinder Kumar Tikiya	22000
Shubhas Kumari Tikiya	27310
Urmil S. Tikiya	10000
Om Prakash Tikiya	100
Surnder Kumar Tikiya	15020
Prem P. Kamal HUF	10
Surender Kumar Tikiya HUF	10
Rajinder Kumar Tikiya HUF	10
Dr. Mohinder Kumar Tikiya	18510
Puneet M. Kamal	15020
Niharika S. Tikiya	10
Sakhshi R. Tikiya	10
Subhash D. Tikiya	20010
Suarabh S. Tikiya	20010
Sankalp R. Tikiya	10
Rahul S. Tikiya	10
Monika V. Kamal	10
Surbhi S. Tikiya	30
Empitex Exports India Private Limited, India	4000
Empilon Fabrics Private Limited, India	210000
Shweta S. Tikiya	15000
TOTAL	484000

AS ON 11.01.2013

Names of Allottees	No. of Shares
Prem P Kamal	25000
Poonam R Tikiya	25000
TOTAL	50000

AS ON 06.08.2012

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Supplier of Embroidered Fabrics for Men and Ladies Wears.

GENERAL INFORMATION

Suppliers :

· Aditya Spinners Limited

· Ambika Textile Mills

· Bhagirthi Synthetics Private Limited

· Gini Tex Private Limites

· Saibaba Enterprises

· Shree Om Shirting Private Limited

· Shreekar Silk Mills

· Mak Synthetic

· Om Fabrics

· Shivam Fabrics

· T K Textiles

· Vinod Textiles

· Dhanesh Weaving Private Limited

· Jai Mata Enterprises

· Pan Global Fabrics Private Limited

Customers :

· Tamilnadu Electricity Board

· Nirmal Traders

· Saraswati Trading Company

· Somani Enterprises

· Vama Fabrics Limited

· Ronak Syntex

· Empllon Fabrics Private Limited

· Mumbai Fabrics Private Limited

· Kamal Fabrics Private Limited

· IIFA India Private Limited

· Siyaram Silk Mills Limited

· M A Brothers

· M S Corporation

· Opera Clothing Private Limited

· Neelkamal Enterprise

No. of Employees :

Not Available

Bankers :

· Axis Bank Limited, Axis House, Ground Floor, Bombay Dyeing Mill Compound, P B Marg, Worli, Mumbai-400025, Maharashtra, India

· Bank of Baroda, Versova Branch, Versova, Andheri West,, Mumbai - 400053, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Long Term Borrowings
Term Loan
From Bank	0.000	18.723
Short Term Borrowings
Loans Repayable on Demand
From Bank	6.454	44.179
TOTAL	6.454	62.902

Banking Relations :	--
Auditors :
Name :	O. P. Gupta and Associates Chartered Accountants
Address :	B-05, Meena Apartment, 71- Kasturba Road, Malad (West), Mumbai – 400064, Maharashtra, India
Tel. No.:	91-22-28880777 / 28880555
Mobile No.:	91-9322226490
E-Mail :	atul.o.gupta@gmail.com ca.gupta@ymail.com
PAN.:	AAFPG5795H

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
484000	Equity Shares	Rs.100/- each	Rs. 48.400 Millions

AS ON 06.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
700000	Equity Shares	Rs.100/- each	Rs. 70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
534000	Equity Shares	Rs.100/- each	Rs. 53.400 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		48.400	48.400	43.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		122.395	100.630	102.857
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		170.795	149.030	146.257
LOAN FUNDS
1] Secured Loans		6.454	62.902	84.386
2] Unsecured Loans		22.507	10.714	58.396
TOTAL BORROWING		28.961	73.616	142.782
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		199.756	222.646	289.039
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		50.522	50.964	119.818
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.001	0.001	0.001
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	70.539	81.830	90.901
	Sundry Debtors	107.589	117.852	117.933
	Cash & Bank Balances	0.203	0.163	0.079
	Other Current Assets	0.091	0.105	0.455
	Loans & Advances	1.124	5.121	0.676
Total Current Assets		179.546	205.071	210.044
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	27.923	30.627	38.048
	Other Current Liabilities	1.146	1.451	0.000
	Provisions	1.244	1.312	2.895
Total Current Liabilities		30.313	33.390	40.943
Net Current Assets		149.233	171.681	169.101
MISCELLANEOUS EXPENSES		0.000	0.000	0.119
TOTAL		199.756	222.646	289.039

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	491.259	594.997	524.559
		Other Income		17.542	1.459
		TOTAL	491.259	612.539	526.018
Less	EXPENSES
		Cost of Goods Sold	462.680	413.439	404.368
		Packing Charges		8.272	6.716
		Wages and Labour Charges		7.858	9.044
		Processing Charges		19.043	29.215
		Salaries to Director and Others		8.197	8.119
		Brokerage		4.391	4.532
		Interest		7.802	8.511
		Other Expenses		79.871	19.048
		TOTAL	462.680	548.873	489.553
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		[Including Depreciation ]	63.666	36.465
Less/ Add	DEPRECIATION/ AMORTISATION			72.436	23.184
	NET PROFIT / (LOSS)		NA	(8.770)	13.281
	PROFIT / (LOSS) BEFORE TAX		28.579	NA	NA
Less	TAX		6.815	NA	NA
	PROFIT / (LOSS) AFTER TAX		21.764	NA	NA
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	0.235	0.454
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	0.000	13.500
	BALANCE CARRIED TO THE B/S		NA	(8.535)	0.235
	Earnings Per Share (Rs.)		44.97	(18.12)	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.43	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	12.42	NA	NA
Return on Investment (ROI) (PBT/Networth)		0.17	NA	NA
Debt Equity Ratio (Total Debt /Networth)		0.17	0.49	0.98
Current Ratio (Current Asset/Current Liability)		5.92	6.14	5.13

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	Yes
18]	Major customers	Yes
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

Unsecured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Long Term Borrowings
Loans and Advances From Related Parties	21.201	9.206
Loans From Director	1.306	1.508
TOTAL	22.507	10.714

OPERATIONS

During the year, the company has made a Profit of Rs. 21.764 Millions

FORM 8

Corporate identity number of the company	U17100MH1987PTC045319
Name of the company	EMPITEX (FABRICS) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2nd Floor, Kailash Silk Mills Compound, A K Road, Sakinaka Andheri (East), Mumbai – 400072, Maharashtra, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	10378774
Type of charge	· Book debts · Movable property (not being pledge) · Others
Particular of charge holder	Axis Bank Limited, Axis House, Ground Floor, Bombay Dyeing Mill Compound, P B Marg, Worli, Mumbai-400025, Maharashtra, India
Nature of instrument creating charge	Link Agreement
Date of instrument Creating the charge	17.11.2012
Amount secured by the charge	Rs. 217.00 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As Stipulated By Bank From Time To Time Terms of repayment As Stipulated By Bank From Time To Time Margin As Stipulated By Bank From Time To Time Extent and operation of the charge Exclusive first charge(present and future) =total limit Rs.217.000 Millions (cash credit (cc) =Rs.45.000 Millions, EPC/PSC= Rs.10.000 Millions, term loan= Rs.150.000 Millions, EPCG b.g.= Rs.12.000 Millions) (sub limit EPC/PSC=PCFC=Rs.10.000 Millions) (sub limit of term loan-Capex LC=Rs.88.000 Millions) (sub limit under CC-LER=3.300 Millions) And/or as stipulated by bank from time to time Other As Stipulated By Bank From Time To Time And As Per Agreement Attached and/or As Per Sanction Letter Of The Bank
Short particulars of the property charged (Including location of the property)	Exclusive First Charge(Present and Future) On Following Assets L1) Hypothecation of All Tangible Movalbe Machinery, Plant Machinery, Fixtures, Fittings Othre Installation, Cranes, Furntiure Computer And Other Accessories Etc (2)Hypothecation of All Stock / Goods/ Inventories / Products Kept At Borrower Place / Premises / Factories / Godown Etc or Where ever else or In Transit Including Bought Under L.C./PC/EPC/Bank Finance (3) Hypothecation of All Book Debts And Receivables (4) Hypothecation of All Current, Movable And Fixed Assets of The Company (5) Hypothecation of All Goods / Machineries / Capital Assets Bought Under Bank Finance / L.C./ Term Loan
Particulars of the present modification	By This Modification Sub Limits Were Allowed In Main Limits, Now Limit Stands To Rs. Rs.217.000 Millions (Cash Credit (Cc)= Rs.45.000 Millions, EPC/PSC = Rs.10.000 Millions, Term Loan = Rs.150.000 Millions, EPCG B.G.= Rs.12.000 Millions) (Sub Limit EPC/PSC=PCFC= Rs.10.000 Millions) (Sub Limit of Term Loan-Capex LC= Rs.88.000 Millions) (Sub Limit Under Cc-LER=3.300 Millions),Continue Security As Given By Original Charge As Well As By Modifications, Terms And Conditions As Per Agreement Attached and/or As Per Sanction Letter of The Bank

FIXED ASSETS

· Building

· Plant and Machinery

· Furniture and Fixtures

· Air Conditioner

· Vehicle

· Office Equipments

· Computers

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. 56.64
UK Pound	1	Rs. 86.68
Euro	1	Rs. 73.97

INFORMATION DETAILS

Report Prepared by :

DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.