MIRA INFORM REPORT

Report Date :

15.06.2013

IDENTIFICATION DETAILS

Name :	SHRI KEN ENTERPRISES PRIVATE LIMITED
Formerly Known As :	KEN TEXTILES PRIVATE LIMITED
Registered Office :	9/621, Industrial Estate, Near Kalyan Kendra, Ichalkaranji – 416 115, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.06.1998
Com. Reg. No.:	11-012572
Capital Investment / Paid-up Capital :	Rs.20.000 millions
CIN No.: [Company Identification No.]	U17299PN1998PTC012572
IEC No.:	3104011893
PAN No.: [Permanent Account No.]	AABCK7295B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Exporting of Cotton Fabrics and Industrial Fabrics, Technical Textiles.
No. of Employees :	Approximately 70 (In Office – 10, In Factory – 60)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 198000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Even though the sales turnover and the net profitability have increased, the profit margin appears to be very low. However, trade relations are fair. Business is active. Payments are reported to be 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Loan: BB-
Rating Explanation	Moderate risk of default.
Date	February, 2013

Rating Agency Name	ICRA
Rating	Short Term - Letter of Credit: A4
Rating Explanation	Minimal degree of safety and high credit risk.
Date	February, 2013

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. Nikunj Hariprasad Bagdiya
Designation :	Director
Contact No.:	91-9326006364
Date :	12.06.2013

LOCATIONS

Registered Office :	9/621, Industrial Estate, Near Kalyan Kendra, Ichalkaranji – 416 115, Maharashtra, India
Tel. No.:	91-230-2438538, 3290228, 3290307
Mobile No.:	91-9326006364 (Mr. Nikunj Hariprasad Bagdiya)
Fax No.:	91-230-2437249
E-Mail :	nikunj@kenindia.in kpr_bagdiya@sancharnet.in
Location :	Rented
Factory :	Plot # 46-48 and 62-64, Sector F, Phase – 1, The Parvati Co-operative Industrial Estate, Yadrav, Kolhapur – 416 145, Maharashtra, India
Tel. No.:	91-2322-252080, 3290307
E-Mail :	works@kenindia.in
Location :	Rented
Branch Office :	Plot # 91, 111, 112, Sector C, Phase – II, The Parvati Co-operative Industrial Estate, Yadrav, Kolhapur – 416 145, Maharashtra, India
Tel. No.:	91-2322-252101
E-Mail :	works@kenindia.in
Location :	Owned

DIRECTORS

As on 29.09.2012

Name :

Mr. Nikunj Hariprasad Bagdiya

Designation :

Director

Address :

Plot No.39, 40, 41, C.S. No.7421/B, Behind Panchwati Talkies, at Ichalkaranji, Maharashtra, India

Date of Birth/Age :

31.07.1977

Qualification :

Bachelor of Textile Engineering

Experience :

13 Years

Date of Appointment :

05.06.1998

DIN No.:

00415118

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	U17299PN1998PTC012572	SHRI KEN ENTERPRISES PRIVATE LIMITED	Director	05/06/1998	05/06/1998	-	Active	NO
2	U93090MH2010PTC198504	ZEST LIFESTYLE PRIVATE LIMITED	Director	01/07/2011	14/06/2010	-	Active	NO
3	U17111PN2005PTC021430	KUBER COTSPIN PRIVATE LIMITED	Director	30/09/2011	13/09/2010	-	Active	NO

Name :

Mrs. Binadevi Hariprasad Bagdiya

Designation :

Director

Address :

Plot No.39, 40, 41, C.S. No.7421/B, Behind Panchwati Talkies, at Ichalkaranji, Maharashtra, India

Date of Birth/Age :

15.07.1953

Qualification :

B.Com, L.L.B.

Experience :

33 Years

Date of Appointment :

16.03.2004

DIN No.:

00415083

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	U17299PN1998PTC012572	SHRI KEN ENTERPRISES PRIVATE LIMITED	Director	16/03/2004	16/03/2004	-	Active	NO
2	U17111PN2005PTC021430	KUBER COTSPIN PRIVATE LIMITED	Additional director	10/08/2012	10/08/2012	-	Active	NO

Name :

Mr. Krishnakumar Hariprasad Bagdiya

Designation :

Director

Address :

Plot No.39, 40, 41, C.S. No.7421/B, Behind Panchwati Talkies, at Ichalkaranji, Maharashtra, India

Date of Birth/Age :

26.03.1976

Qualification :

B.B.A. (U.S.A.), M.S. (France)

Date of Appointment :

05.06.1998

DIN No.:

00415113

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Krishnakumar Hariprasad Bagdiya	100000
Nikunj Hariprasad Bagdiya	950000
Binadevi Hariprasad Bagdiya	750000
Enviro Carban Solutions Limited, Singapore	200000
Total	2000000

As on 17.01.2013

Names of Allottee	No. of Shares
Tradewell FZE, UAE	185000
Total	185000

As on 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	10.00
Directors or relatives of directors	90.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and Exporting of Cotton Fabrics and Industrial Fabrics, Technical Textiles.
Exports :
Products :	· Diaper Fabrics · Ladies Wear
Countries :	· Croatia · Thailand
Terms :
Selling :	L/C and Credit (90 days)

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Installed Capacity	Actual Production
Cotton and Synthetic Fabrics	12 million meters pa	10 million meters pa

GENERAL INFORMATION

Customers :	Wholesalers · Lola Riber, Zagreb, Croatia · Thai-Japan Textiles, Bangkok, Thailand · Ashima Dyecot Limited · 3M India Limited · Welspun India Limited · Alok Industries Limited · The Government of India · BATA / Lakhani · Gad Fashions · Micro Interlinings Private Limited
No. of Employees :	Approximately 70 (In Office – 10, In Factory – 60)
Bankers :	· Union Bank of India, Ichalkaranji Main Branch, Ichalkaranji – 416 115, Maharashtra, India · Canara Bank, Ward No.12, House No.427, Bhavani Tower, Shahu Corner, Ichalkaranji – 416 115, Maharashtra, India (Contact No.:91-230-2434355)
Facilities :	Credit Limit: Rs.120.000 millions (From Canara Bank)

Banking Relations :	--
Auditors :
Name :	Bhutada Associates Chartered Accountants
Address :	33, Seva Sadan, New Kapad Market, Ichalkaranji – 416 115, Maharashtra, India
Tel. No.:	91-230-2435486, 2436086
E-Mail :	amrathi@rediffmail.com
Income-tax PAN of auditor or auditor's firm :	ADGPB0399G

CAPITAL STRUCTURE

After 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2185000	Equity Shares	Rs.10/- each	Rs.21.850 millions

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	20.000	20.000
(b) Reserves & Surplus	29.617	26.318
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
(3) Non-current liabilities
(a) Long-term borrowings	26.489	90.580
(b) Deferred tax liabilities (Net)	2.802	3.043
(c) Other long term liabilities	22.725	0.000
(d) Long-term provisions	0.000	0.000
(4) Current liabilities
(a) Short term borrowings	131.932	41.793
(b) Trade payables	21.298	44.901
(c) Other current liabilities	0.000	0.000
(d) Short-term provisions	3.057	1.796
TOTAL	257.920	228.431
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	68.350	77.105
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.347	0.147
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	1.603	1.660
(e) Other Non-current assets	0.202	0.000
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	43.015	60.164
(c) Trade receivables	140.578	87.020
(d) Cash and cash equivalents	0.767	0.128
(e) Short-term loans and advances	0.173	0.226
(f) Other current assets	2.885	1.981
TOTAL	257.920	228.431

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		18.000
2] Share Application Money		2.000
3] Reserves & Surplus		23.477
4] (Accumulated Losses)		0.000
NETWORTH		43.477
LOAN FUNDS
1] Secured Loans		117.129
2] Unsecured Loans		7.035
TOTAL BORROWING		124.164
DEFERRED TAX LIABILITIES		2.778
TOTAL		170.419
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		84.682
Capital work-in-progress		0.000
INVESTMENT		0.697
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	35.788
	Sundry Debtors	90.889
	Cash & Bank Balances	0.329
	Other Current Assets	0.000
	Loans & Advances	4.840
Total Current Assets		131.846
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	45.626
	Other Current Liabilities
	Provisions	1.180
Total Current Liabilities		46.806
Net Current Assets		85.040
MISCELLANEOUS EXPENSES		0.000
TOTAL		170.419

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	503.173	429.994	230.632
		Other Income	0.417	0.000
		TOTAL (A)	503.590	429.994	230.632
Less	EXPENSES
		Office Expenses	465.297	398.034	228.010
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	465.297	398.034	228.010 (including interest & depreciation
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		38.293	31.960
Less	INTEREST (D)		22.475	16.787
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.818	15.173
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.971	11.246
	PROFIT BEFORE TAX (E-F) (G)		4.847	3.927	2.622
Less	TAX (H)		1.560	1.085	1.359
	PROFIT AFTER TAX (G-H) (I)		3.287	2.842	1.263
	EARNINGS IN FOREIGN CURRENCY		6.989	0.670	NA
	Earnings Per Share (Rs.)		1.64	1.42	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.65	0.66	0.55
Net Profit Margin (PBT/Sales)	(%)	0.96	0.91	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.88	1.72	1.21
Return on Investment (ROI) (PBT/Networth)		0.10	0.08	0.06
Debt Equity Ratio (Total Debt/Networth)		3.19	2.86	2.86
Current Ratio (Current Asset/Current Liability)		1.20	1.69	2.82

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	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	No
17) Major suppliers	No
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
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	Yes

PROSPECTS FOR THE CURRENT YEAR:

The outlook for the current year is Good. The directors have taken steps for improving the quality and decided to give emphasis on marketing, strengthen the internal control and recovery the Debtors. In view of this, the directors are hopeful of achieving better results for the current year. The position of the orders booked is satisfactory and the Company looks forwards to the future with confidence.

Bankers Charges Report as per Registry

Corporate identity number of the company	U17299PN1998PTC012572
Name of the company	SHRI KEN ENTERPRISES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	9/621, Industrial Estate, Near Kalyan Kendra Ichalkaranji – 416 115, Maharashtra India
This form is for	Creation of charge
Type of charge	Movable Property (not being pledge)
Particular of charge holder	Canara Bank, Ward No.12, House No.427,Bhavani Tower, Shahu Corner, Ichalkaranji-415415, Maharashtra, India Email: cb8529@canarabank.com
Nature of description of the instrument creating or modifying the charge	Agreement for Creating Second Charge on movable property
Date of instrument Creating the charge	06.04.2013
Amount secured by the charge	Rs.248.800 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base Rate + 4 % = 14.25 % p.a. Terms of Repayment Other Terms and Conditions as per Agreement Margin Other Terms and Conditions as per Agreement Extent and Operation of the charge Second Charge on movable property of the Company viz. 8 nos. Omini Plus-800 make Airjet Picanol Looms (First Charge being of SIDBI)
Short particulars of the property charged	Hypothecation on movable property of the Company viz. 8 nos. Omini Plus-800 make Airjet Picanol Looms

TRADE REFERENCES:

· Shri Mangalam Yarns

Address: 13/169, Shanti Niketan, Mahadev Nagar, Ichalkaranji – 416 115, Maharashtra, India

Mobile No.: 91-9822221100

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.57.74
UK Pound	1	Rs.90.64
Euro	1	Rs.77.02

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.