MIRA INFORM REPORT

Report Date :

25.09.2014

IDENTIFICATION DETAILS

Name :	ACME SAFETY WEARS LIMITED
Formerly Known As :	ANKNIT FIBRES LIMITED
Registered Office :	817, Krishna, No. 224, A.J.C. Bose Road, Kolkata-700017, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.02.1995
Com. Reg. No.:	21-068074
Capital Investment / Paid-up Capital :	Rs.3.607 Millions
CIN No.: [Company Identification No.]	U17118WB1995PLC068074
Legal Form :	A closely held public limited liability company
Line of Business :	The company is engaged in manufacturing and selling of industrial hand cloves and safety wears.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 21000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. General financial position of the company seems to be sound and healthy. Profitability of the company is fair. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for 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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Gaurav Dhanaka
Designation :	Manager
Contact No.:	91-8420114091
Date :	23.09.2014

LOCATIONS

Registered Office/ Head office :	817, Krishna, No. 224, A.J.C. Bose Road, Kolkata-700017, West Bengal, India
Tel. No.:	91-33-22877617
Mobile No.:	91-8420114091 (Mr. Gaurav Dhanaka)
Fax No.:	91-33-22878269
E-Mail :	kolkata@acmesafety.in
Website :	http://acmesafety.in
Branch Offices :	Located at : · Gurgaon · Chennai · Delhi · Mumbai · Jamshedpur · Nashik · Kolkata

Note: Subject have 6 factories located at West Bengal, India.

DIRECTORS

Name :

Mr. Aditya Saraf

Designation :

Director

Address :

76, Cotton Street, Kolkata-700007, West Bengal, India

Date of Birth/Age :

10.03.1985

Date of Appointment :

03.03.2005

DIN No.:

00129774

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	U17118WB1995PLC068074	ACME SAFETY WEARS LIMITED	Director	03/03/2005	03/03/2005	-	Active	NO

Name :

Mr. Shiv Kishan Saraf

Designation :

Director

Address :

FD- 342, Salt Lake, Sector-3, Kolakata-700106, West Bengal, India

Date of Birth/Age :

31.01.1970

Date of Appointment :

06.02.1995

DIN No.:

00708235

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	U24121WB1994PTC063673	SARAF RESIN & CHEMICALS PRIVATE LIMITED	Director	01/08/2013	22/06/1994	-	Active	NO
2	U17118WB1995PLC068074	ACME SAFETY WEARS LIMITED	Director	06/02/1995	06/02/1995	-	Active	NO
3	U74140WB1996PTC081755	SUYASH PAINT & VARNISH PRIVATE LIMITED	Director	01/04/2000	01/04/2000	-	Active	NO

Name :

Mr. Gopal Sharma

Designation :

Director

Address :

89/335, Bangur Park, Flat-108, Rishra Hooghly, Kolkata-712248, West Bengal, India

Date of Birth/Age :

28.10.1959

Date of Appointment :

24.09.2009

DIN No.:

02669006

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	U17118WB1995PLC068074	ACME SAFETY WEARS LIMITED	Director	24/09/2009	02/06/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Gaurav Dhanaka
Designation :	Manager

MAJOR SHAREHOLDERS

As on 30.09.2013

Names of Shareholders	No. of Shares
Shri Krishan Saraf	50500
Deo Krishan Saraf	50500
Raj Kishan Saraf	38600
Kusum Saraf	500
Mahendra Kr. Agarwal	9000
Shiv Kishan Saraf	500
Prem Ballav Sharma	4300
Ram Gopal Darolia	2000
Rajeeb Agarwal	2000
Puspa Bangaria	2000
Prakash Chand Bangaria	2000
Rashmi Chokhani	2000
Pankaj Bangaria	2000
Vartika Darolia	2000
Ram Gopal Darolia (HUF)	2000
Vijendra Kr. Singh	2000
Shakuntala Saraf	16200
Renu Agrawal	6500
Bishnu Kr. Kesan	3700
Aditya Saraf	50000
Anirudh Dhand	10000
Anita Creation (P) Ltd.	20000
Tultul Basak	30000
Parvati Devi Lakkar	27500
Prateek Lakar	7000
Divya Saraf	8090
Abhimanyu Saraf	2300
Abhishek Saraf	2500
Bishnu Kumar Kesan (HUF)	5000
Total	360690

As on 31.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	5.50
Directors or relatives of Directors	53.53
Other top fifty shareholders	40.97
Total	100.00

BUSINESS DETAILS

Line of Business :	The company is engaged in manufacturing and selling of industrial hand cloves and safety wears.
Imports :
Products :	Raw Material
Countries :	· China · Japan
Terms :
Selling :	Cash, L/C and Credit
Purchasing :	Cash, L/C and Credit

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Bank ssf Baroda, International Business Branch, 4, India Exchange Place (1^st Floor), Kolkata – 700001, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Rupees loans from Bank	15.316	11.255
SHORT TERM BORROWINGS
Rupees loan from Bank
cash credit	66.522	78.939
Total	81.838	90.194

Note :

Secured loans are covered by :

Term loan from bank :

Secured by way of equitable mortgage of all movable machinery including stock and spares parts.

Vehicle loan from bank and others :

Secured by way of equitable mortgage of motor vehicle, PDC for installments.

Banking Relations :	--
Auditors :
Name :	R. K. Bajaj and Company Chartered Accountants
Associates :	· Acknil Industries Limited · Saraf Udyog · Global Safety Wears Limited · Acme Industrial Corporation · Saraf Capital Market Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs. 10/- each	Rs. 4.000 Millions

As on 30.09.2013

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
360690	Equity Shares	Rs. 10/- each	Rs.3.607 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	3.607	3.532	3.327
(b) Reserves & Surplus	51.000	40.502	29.324
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	2.210
Total Shareholders’ Funds (1) + (2)	54.607	44.034	34.861
(3) Non-Current Liabilities
(a) long-term borrowings	34.575	36.620	19.877
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	34.575	36.620	19.877
(4) Current Liabilities
(a) Short term borrowings	87.471	78.939	47.675
(b) Trade payables	15.599	8.246	6.936
(c) Other current liabilities	19.657	19.625	27.546
(d) Short-term provisions	0.000	0.000	0.276
Total Current Liabilities (4)	122.727	106.811	82.433
TOTAL	211.909	187.465	137.171
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	48.346	42.899	34.022
(ii) Intangible Assets	0.016	0.027	0.045
(iii) Capital work-in-progress	6.219	11.465	7.475
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.501	0.501	0.587
(d) Long-term Loan and Advances	4.948	4.744	4.660
(e) Other Non-current assets	0.960	1.071	1.306
Total Non-Current Assets	60.990	60.707	48.095
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	57.384	41.884	28.204
(c) Trade receivables	77.287	68.295	48.436
(d) Cash and cash equivalents	4.068	5.756	4.754
(e) Short-term loans and advances	11.621	10.451	7.343
(f) Other current assets	0.559	0.372	0.339
Total Current Assets	150.919	126.758	89.076
TOTAL	211.909	187.465	137.171

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	303.347	288.592	231.039
		Other Income	1.269	2.856	0.322
		TOTAL	304.616	291.448	231.361
Less	EXPENSES
		Cost of Materials Consumed	115.167	129.850	101.830
		Purchases of Stock-in-Trade	92.452	84.586	63.452
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(14.312)	(16.563)	(4.592)
		Employees benefits expense	14.902	12.622	10.310
		Other expenses	55.132	47.037	34.555
		TOTAL	263.341	257.532	205.555
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		41.275	33.916	25.806
Less	FINANCIAL EXPENSES		17.588	13.627	8.468
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		23.687	20.289	17.338
Less/ Add	DEPRECIATION/ AMORTISATION		9.165	6.380	5.774
	PROFIT BEFORE TAX		14.522	13.909	11.564
Less	TAX		4.700	4.574	4.020
	PROFIT AFTER TAX		9.822	9.335	7.544
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.655	8.320	9.776
Less	APPROPRIATIONS
		Transfer to General Reserve	9.000	9.000	9.000
	BALANCE CARRIED TO THE B/S		9.477	8.655	8.320
	IMPORTS
		Others	27.37	NA	NA
	TOTAL IMPORTS		27.37	NA	NA
	Earnings / (Loss) Per Share (Rs.)		27.27	27.52	22.68

Particulars	31.03.2014
Sales Turnover	350.000

Expected Sales 2014-2015: Rs.400.000 millions S

The above information has been parted by Mr. Gaurav Dhanaka.

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.22	3.20	3.26
Net Profit Margin (PBT/Sales)	(%)	4.79	4.82	5.01
Return on Total Assets (PBT/Total Assets}	(%)	7.08	7.93	8.96
Return on Investment (ROI) (PBT/Networth)		0.27	0.32	0.33
Debt Equity Ratio (Total Liability/Networth)		2.23	2.62	1.94
Current Ratio (Current Asset/Current Liability)		1.23	1.19	1.08

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	3.327	3.532	3.607
Reserves & Surplus	29.324	40.502	51.000
Net worth	32.651	44.034	54.607
long-term borrowings	19.877	36.620	34.575
Short term borrowings	47.675	78.940	87.471
Total borrowings	67.552	115.560	122.046
Debt/Equity ratio	2.069	2.624	2.235

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	231.039	288.592	303.347
		24.911	5.113

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	231.039	288.592	303.347
Profit	7.544	9.335	9.822
	3.27%	3.23%	3.24%

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	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	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	No
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

PERFORMANCE:

The demand for industrial gloves and safety wears has increased due to more awareness for safety wears in all types of industry. The products of the company have been well accepted in the market which will give further boost to turnover in the near future. Henceforth more and more expansion both in terms of quantity produced and turnover would achieve with the passage of time.

In the year under review the turnover of the company was increased by 5.4% as compared to last financial year and earnings per share on weighted average basis during the financial year are Rs. 27.27

UNSECURED LOANS

Unsecured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupees loans from other	18.698	24.757
Vehicle Loans from bank	0.560	0.608
SHORT TERM BORROWINGS
Rupees loan from related parties	10.000	0.000
Total	40.208	25.365

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90246302	19/06/2013 *	136,280,000.00	BANK OF BARODA	INTERNATIONAL BUSINESS BRANCH, 4, INDIA EXCHANGE  PLACE (1ST FLOOR), KOLKATA, West Bengal - 700001,  INDIA	B78250040
2	90246069	16/07/2003 *	240,000.00	BANK OF BARODA	M.G. ROAD BRANCH, 172 M.G. ROAD, KOLKATA, West Be  ngal - 700007, INDIA	-

FIXED ASSEST

· Factory building

· Plant and machinery

· Furniture and fixture

· Air conditioner

· Computer

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.61.02
UK Pound	1	Rs.78.37
Euro	1	Rs.99.99

INFORMATION DETAILS

Information Gathered by :	PRI
Analysis Done by :	KAR
Report Prepared by :	JYTK

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	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.