MIRA INFORM REPORT

Report Date :

24.06.2013

IDENTIFICATION DETAILS

Name :	LALBHAI INDUSTRIES PRIVATE LIMITED
Formerly Known As :	LALBHAI INDUSTRIES LIMITED
Registered Office :	301, Parishram, 5-B, Rashmi Society, Mithakhali Six Roads, Navrangpura, Ahmedabad – 380 009, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.07.1994
Com. Reg. No.:	04-022456
Capital Investment / Paid-up Capital :	Rs.4.001 millions
CIN No.: [Company Identification No.]	U45201GJ1994PTC022456
TAN No.: [Tax Deduction & Collection Account No.]	AHML00140A
PAN No.: [Permanent Account No.]	AAACL5749G
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of manufacturing and dealing of Fabric, Yarn, Cotton etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 178000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. The financial strength seems to be strong. Liquidity position appears 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 – 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

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 :	301, Parishram, 5-B, Rashmi Society, Mithakhali Six Roads, Navrangpura, Ahmedabad – 380 009, Gujarat, India
Tel. No.:	91-79-26562256/ 26444242/ 33666666
Fax No.:	Not Available
E-Mail :	raju@lalbhais.com

DIRECTORS

AS ON 27.09.2012

Name :

Mr. Janak Mahendrabhai Contractor

Designation :

Director

Address :

14, Dasha Porwad Society, Paldi, Ahmedabad – 380 007, Gujarat, India

Date of Appointment :

11.07.1994

DIN No.:

00093735

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	U45201GJ1994PTC022456	LALBHAI INDUSTRIES PRIVATE LIMITED	Director	11/07/1994	11/07/1994	-	Active	NO
2	U64201GJ1995PTC024281	ARROW TELECOM PRIVATE LIMITED	Director	19/01/1995	19/01/1995	-	Active	NO
3	U17119GJ1988PTC010677	RAISILK PRIVATE LIMITED	Director	26/01/1996	26/01/1996	-	Active	NO
4	U27109GJ1983PTC006144	ARANYA ENGINEERING PRIVATE LIMITED	Director	26/01/1996	26/01/1996	-	Active	NO
5	U31909GJ1999PTC036116	ARROW INDUSTRIAL ELECTRONICS PRIVATE LIMITED	Director	09/06/1999	09/06/1999	-	Active	NO
6	U46400GJ1994PTC022080	AISHVARYA CONSTRUCTIONS AND DEVELOPERS PRIVATE LIMITED	Director	11/04/2005	11/04/2005	-	Active	NO

Name :

Mr. Rajivbhai Chinubhai Lalbhai

Designation :

Director

Address :

Opposite Shahibaug Police Chowki, Shahibaug, Ahmedabad – 380 004, Gujarat, India

Date of Appointment :

01.10.2003

DIN No.:

00309545

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	U45201GJ1994PTC022456	LALBHAI INDUSTRIES PRIVATE LIMITED	Director	01/10/2003	01/10/2003	-	Active	NO
2	U22190GJ1940PLC000151	LOK PRAKASHAN LIMITED	Director	27/10/2007	27/10/2007	-	Active	NO
3	U17110GJ1976PTC002920	SERENDIPITY APPARELS PRIVATE LIMITED	Director	29/09/2009	17/01/2009	-	Active	NO
4	U74140GJ2011PTC064209	EPIPHANIA SOLUTIONS PRIVATE LIMITED	Additional director	28/06/2012	28/06/2012	-	Active	NO

Name :

Mrs. Paulomiben Rajivbhai Lalbhai

Designation :

Director

Address :

Opposite Shahibaug Police Chowki, Shahibaug, Ahmedabad – 380 004, Gujarat, India

Date of Appointment :

01.10.2003

DIN No.:

00243501

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	U27109GJ1983PTC006143	ACHAL ENGINEERING PRIVATE LIMITED	Director	15/05/1999	15/05/1999	-	Active	NO
2	U65910GJ1982PTC005661	ADIURVI INVESTMENTS PRIVATE LIMITED	Director	12/09/2001	12/09/2001	-	Active	NO
3	U65910GJ1982PTC005658	RAPRACHIN INVESTMENTS PRIVATE LIMITED	Director	12/09/2001	12/09/2001	-	Active	NO
4	U65910GJ1982PTC005656	ADIPRABHA INVESTMENTS PRIVATE LIMITED	Director	12/09/2001	12/09/2001	-	Active	NO
5	U65910GJ1982PTC005660	RAJIV CHINUBHAI INVESTMENTS PRIVATE LIMITED	Director	12/09/2001	12/09/2001	-	Active	NO
6	U45201GJ1994PTC022456	LALBHAI INDUSTRIES PRIVATE LIMITED	Director	01/10/2003	01/10/2003	-	Active	NO
7	U27209GJ1985PTC007787	ADOLF ENGINEERING PRIVATE LIMITED	Director	31/08/2009	16/08/2008	-	Active	NO
8	U17110GJ1976PTC002920	SERENDIPITY APPARELS PRIVATE LIMITED	Director	29/09/2009	17/01/2009	-	Active	NO
9	U36900GJ2007PLC051883	SAPTRANGI CRAFT LIMITED	Director	30/09/2011	12/11/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2012

Names of Shareholders	No. of Shares
Rajivbhai Chinubhai Lalbhai	500
Paulomiben Rajivbhai Lalbhai	100
Janak Mahendrabhai Contractor	100
Aditya Rajivbhai Lalbhai	164684
Mohal Rajivbhai Lalbhai	184683
Adolf Engineering Private Limited, India	50000
Total	400067

AS ON 27.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	12.50
Directors or relatives of directors	87.50
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of manufacturing and dealing of Fabric, Yarn, Cotton etc.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· The Kalupur Commercial Co.-operative Bank Limited, Panchwati Branch, Panchwati, Ambawadi, Ahmedabad – 380 006, Gujarat, India

· HDFC Bank Limited

· EXIM Bank

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Term loans
From Banks (Secured by HDFC Bank, EXIM Bank)	19.970	31.991
Total	19.970	31.991

Banking Relations :	--
Auditors :
Name :	J V. Dave and Company Chartered Accountants
Address :	301, Harsh Avenue, Navjivan Press Road, Ahmedabad – 380014, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AEEPD7085A

CAPITAL STRUCTURE

AS ON 27.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
400067	Equity Shares	Rs.10/- each	Rs.4.001 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	4.001	4.001
(b) Reserves & Surplus	40.622	32.970
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	44.623	36.971
(3) Non-Current Liabilities
(a) Long-term borrowings	39.606	45.759
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) Long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	39.606	45.759
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	9.760	17.717
(c) Other current liabilities	0.000	0.000
(d) Short-term provisions	2.574	3.000
Total Current Liabilities (4)	12.334	20.717
TOTAL	96.563	103.447
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	33.001	38.377
(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	31.405	29.358
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	19.869	14.083
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	84.275	81.818
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.422	7.241
(c) Trade receivables	10.083	14.239
(d) Cash and cash equivalents	1.783	0.149
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	0.000	0.000
Total Current Assets	12.288	21.629
TOTAL	96.563	103.447

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.001
2] Share Application Money		0.000
3] Reserves & Surplus		25.884
4] (Accumulated Losses)		0.000
NETWORTH		29.885
LOAN FUNDS
1] Secured Loans		43.333
2] Unsecured Loans		8.934
TOTAL BORROWING		52.267
DEFERRED TAX LIABILITIES		0.000
TOTAL		82.152
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.659
Capital work-in-progress		0.000
INVESTMENT		24.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.574
	Sundry Debtors	8.466
	Cash & Bank Balances	0.876
	Other Current Assets	0.000
	Loans & Advances	11.862
Total Current Assets		21.778
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.485
	Other Current Liabilities	0.000
	Provisions	1.800
Total Current Liabilities		8.285
Net Current Assets		13.493
MISCELLANEOUS EXPENSES		0.000
TOTAL		82.152

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations (net)	90.152	70.566	93.828
		Other Income	10.455	11.508	10.847
		TOTAL (A)	100.607	82.074	104.675
Less	EXPENSES
		Purchases of stock-in-trade	65.949	48.223	74.265
		Employee benefits expense	4.057	3.281	2.241
		Other expenses	10.561	7.205	5.967
		TOTAL (B)	80.567	58.709	82.473
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.040	23.365	22.202
Less	FINANCIAL EXPENSES (D)		3.904	5.569	6.585
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		16.136	17.796	15.617
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.910	7.710	9.094
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		10.226	10.086	6.523
Less	TAX (H)		2.574	3.000	1.800
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		7.652	7.086	4.723
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		13.002	5.916	1.193
	BALANCE CARRIED TO THE B/S		NA	13.002	5.916
	EARNINGS IN FOREIGN CURRENCY		726000 USD	Nil	Nil
	Earnings / (Loss) Per Share (Rs.)		19.00	18.00	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.61	8.63	4.51
Net Profit Margin (PBT/Sales)	(%)	11.34	14.29	6.95
Return on Total Assets (PBT/Total Assets}	(%)	15.69	13.61	9.82
Return on Investment (ROI) (PBT/Networth)		0.23	0.27	0.22
Debt Equity Ratio (Total Debt/Networth)		0.89	1.24	1.75
Current Ratio (Current Asset/Current Liability)		1.00	1.04	2.63

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	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	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	No
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	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Term loans
From other parties	19.636	13.768
Total	19.636	13.768

Bankers Charges Report as per Registry

Corporate identity number of the company	U45201GJ1994PTC022456
Name of the company	LALBHAI INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	301, Parishram, 5-B, Rashmi Society, Mithakhali Six Roads, Navrangpura, Ahmedabad – 380 009, Gujarat, India E-Mail: raju@lalbhais.com
This form is for	Modification of charge
Charge identification number of the modified	10132382
Type of charge	Book Debts
Particular of charge holder	The Kalupur Commercial Co.-operative Bank Limited, Panchwati Branch, Panchwati, Ambawadi, Ahmedabad – 380 006, Gujarat, India E-Mail: mauli@kalupurbank.com
Nature of description of the instrument creating or modifying the charge	Agreement for Hypothecation of Book Debts dated 30.05.2012
Date of instrument Creating the charge	30.05.2012
Amount secured by the charge	Rs.27.500 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest: The Borrower shall pay interest @ of 10.00% p.a. with monthly rests and 3.00% p.a. additional interest in case of default in payment of interest. Terms of Repayment: Repayment period 12 months (1 year), subject to review annually. Margin: The Borrower will maintain margin 40% against Book-debts of the Company. Extent and Operation of the charge: The bank has first and exclusive charge on book debt of the company till repayment of credit facilities extended by bank to the company.
Short particulars of the property charged	Hypothecation of both present and future Book-debts, outstanding money, receivables, claim, bills, contracts, engagements, securities, investments, rights and assets etc. of the Borrower.
Date of latest modification prior to the present modification	15.06.2010
Particulars of the present modification	The present modification is made to enhance charge from Rs.20.000 millions to Rs.27.500 millions on book debts of the company.

FIXED ASSETS:

Tangible Assets

· Land – Owned

· Building - (Office)

· Building - (Factory)

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Office Equipment

· 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 records 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.59.35
UK Pound	1	Rs.92.11
Euro	1	Rs.78.59

INFORMATION DETAILS

Report Prepared by :

SMN

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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.