MIRA INFORM REPORT

Report No. :	353108
Report Date :	04.12.2015

IDENTIFICATION DETAILS

Name :	KIA TEXTILES PRIVATE LIMITED

Registered Office :	B-19-154/1, Tagore Nagar, Civil Lines, Ludhiana – 141001, Punjab
Mob. No.:	91-9814187819 (Mr. Jatin)

Country :	India

Financials (as on) :	31.03.2014

Date of Incorporation :	26.09.2009

Com. Reg. No.:	16-032973

Capital Investment / Paid-up Capital :	Rs.40.000 Million

CIN No.: [Company Identification No.]	U17120PB2009PTC032973

IEC No.:	Not Divulged

TIN No.:	03522069456

TAN No.: [Tax Deduction & Collection Account No.]	Not Available

PAN No.: [Permanent Account No.]	Not Available

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and exporter of all kinds of yarns, cotton yarns, blended yarns, spun yarns, polyester filament yarns and textile made-ups. (Confirmed by management)

No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject was incorporated in the year 2009 and it is the manufacturer and exporter of all kinds of yarns, cotton yarns, blended yarns, spun yarns, polyester filament yarns and textile made-ups. It is an established company having moderate track record. As per Registrar of Companies, the date of balance sheet (i.e. financial filed) is shown as 31.03.2015 but the documents related to the financials are not available from any source. However, as per available financial of the year 2014, the company’s total revenue has increased to 76% against its previous year but has failed to maintain profit margin of the company. Further, it has low reserves level recorded in the books. Trade relations are fair. Business is active. Payments are reported to be slow but correct. In view of aforesaid, 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, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

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	CRISIL
Rating	Long term bank facilities= BB-
Rating Explanation	Inadequate credit quality and high credit risk.
Date	25.06.2015

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Jatin Bhatia
Designation :	Director
Contact No.:	91-9814187819
Date :	04.12.2015

LOCATIONS

Registered Office/ Factory :	B-19-154/1, Tagore Nagar, Civil Lines, Ludhiana – 141001, Punjab, India
Tel. No.:	Not Available
Mobile No.:	91-9814187819 (Mr. Jatin) 91-9814087819 (Mr. Swastik)
Fax No.:	91-161-4644653
E-Mail :	kiatextiles@gmail.com
Website :	www.kiatextiles.com
Location :	Owned
Locality :	Industrial

Branch Office :	102, 1^st Floor, Carnival Complex, Mall Road, Ludhiana – 141001, Punjab, India

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Jatin Bhatia

Designation :

Managing Director

Address :

B-19 154/1 Tagore Nagar, Civil Lines, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

24.09.1985

Date of Appointment :

26.09.2009

DIN No.:

02144883

Other Directorship :

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

U17110PB2004PTC026701

EAST WEST YARNS (INDIA) (P) LTD

Additional director

16/06/2009

01/09/2009

Active

U17120PB2009PTC032973

KIA TEXTILES PRIVATE LIMITED

Managing director

26/06/2009

Active

Name :

Mr. Sharvan Kumar Bhatia

Designation :

Director

Address :

B-19 154/1 Tagore Nagar, Civil Lines, Ludhiana - 141001, Punjab, India

Date of Birth/Age :

11.07.1957

Date of Appointment :

26.09.2009

DIN No.:

02145415

Other Directorship :

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

U17120PB2009PTC032973

KIA TEXTILES PRIVATE LIMITED

Director

26/06/2009

Active

U18109PB2013PTC037576

Kia Industries Private Limited

Director

05/06/2013

Active

MAJOR SHAREHOLDERS

AS ON 30.09.2014

Names of Shareholders		No. of Shares
Sharvan Kumar Bhatia		3600000
Jatin Bhatia		400000

Total		4000000

AS ON 08.11.2014

Name of Allottees		No. of Shares
Sharvan Kumar Bhatia		500000

Total		500000

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2014

Category

Percentage

Directors or relatives of Directors

100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and exporter of all kinds of yarns, cotton yarns, blended yarns, spun yarns, polyester filament yarns and textile made-ups. (Confirmed by management)

Products :	Yarns Cotton Yarns Blended Yarns Spun Yarns Polyester Filament Yarns Textile Made-Ups

Brand Names :	Not Divulged

Agencies Held :	Not Divulged

Exports :
Products :	Finished Goods
Countries :	European Countries South Africa South America China Asian Countries

Imports :	Not Divulged

Terms :
Selling :	Cash, Credit (30 / 60 / 90 Days)

Purchasing :	Cash, Credit (30 / 60 / 90 Days)

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Company Name :	Atmaram Melaram Steel Private Limited
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark :	Not Divulged

Dhruv Impex

Customers :

End Users, OEMs

Company Name :	Sigma Synthetics Private Limited
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark :	Not Divulged

Shaina Knitwear

No. of Employees :

100 (Approximately)

Bankers :

Banker Name :	State Bank of India
Branch :	Millar Ganj, Ludhiana - 141008, Punjab, India
Person Name (With Designation) :	Not Divulged
Contact Number :	18004253800
Name of Account Holder :	Not Divulged
Account Number :	Not Divulged
Account Since (Date/Year of Account Opening) :	Not Divulged
Average Balance Maintained :	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Cash Credit =Rs.81.200 million
Account Operation :	Not Divulged
Remark :	Number not responding.

Facilities :

SECURED LOANS	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Term loan from HDFC Bank [Secured by way of hypothecation of vehicle] [Repayable within 36 EMI of Rs.0.020 million]	0.000	0.238
Term loan from Tata Capital Limited [Secured by way of hypothecation of vehicle] [Repayable within 35 EMI of Rs.0.013 million]	0.000	0.063
Term loan from ICICI Bank Limited [Secured by way of hypothecation of vehicle] [Repayable within 36 EMI of Rs.0.021 million]	0.616	0.000

Short Term Borrowings
From Banks - State Bank of India - 31022243472	34.773	20.167
From Banks - State Bank of India - 31920431555	0.001	0.021
From Banks - State Bank of India - 31898876734	26.927	10.192

Total	62.317	30.681

Auditors :
Name :	Dinesh Mehtani and Company Chartered Accountants
Address :	B-XI-1916, Old Civil Hospital Road, Ludhiana – 141008, Punjab, India
Tel. No.:	91-161-2225785
Mobile No.:	91-9815100355
E-mail :	mehtanidinesh_1969@yahoo.co.in
PAN No.:	ABIPM4723H

Memberships :	Not Divulged

Collaborators :	Not Divulged

Related Party :	Swastik Trading Company Kavita International Agencies

CAPITAL STRUCTURE

AFTER 30.09.2014

Authorised Capital:

No. of Shares	Type	Value	Amount

4500000	Equity Shares	Rs.10/- each	Rs.45.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount

4500000	Equity Shares	Rs.10/- each	Rs.45.000 Million

AS ON 30.09.2014

Authorised Capital:

No. of Shares	Type	Value	Amount

4500000	Equity Shares	Rs.10/- each	Rs.45.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount

4000000	Equity Shares	Rs.10/- each	Rs.40.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	40.000	30.000	15.000
(b) Reserves & Surplus	5.839	3.254	2.077
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	45.839	33.254	17.077

(3) Non-Current Liabilities
(a) long-term borrowings	1.734	1.811	3.736
(b) Deferred tax liabilities (Net)	0.015	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)	1.749	1.811	3.736

(4) Current Liabilities
(a) Short term borrowings	61.701	30.380	16.290
(b) Trade payables	24.926	85.605	6.949
(c) Other current liabilities	0.740	0.558	1.085
(d) Short-term provisions	1.200	0.668	0.465
Total Current Liabilities (4)	88.567	117.211	24.789

TOTAL	136.155	152.276	45.602

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.404	0.920	1.233
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(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)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1.404	0.920	1.233

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	31.578	13.094	10.483
(c) Trade receivables	74.113	132.673	28.817
(d) Cash and cash equivalents	10.102	0.190	0.488
(e) Short-term loans and advances	17.318	4.638	4.517
(f) Other current assets	1.640	0.761	0.064
Total Current Assets	134.751	151.356	44.369

TOTAL	136.155	152.276	45.602

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	619.968	357.886	206.889
		Other Income	17.124	4.264	5.437
		TOTAL	637.092	362.150	212.326

Less	EXPENSES		633.274	360.241	210.917

	PROFIT/(LOSS) BEFORE TAX		3.818	1.909	1.409

Less	TAX		2.584	0.732	0.477

	PROFIT/(LOSS) AFTER TAX		1.234	1.177	0.932

	Earnings Per Share (Rs.)		0.31	--	--

Particulars

31.03.2015

Sales Turnover (Approximately)

800.000

The above information has been parted by Mr. Jatin

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	0.000	0.000	0.000
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	0.20	0.33	0.45

Return on Total Assets (PBT/Total Assets)	(%)	2.80	1.25	3.09

Return on Investment (ROI) (PBT/Networth)		0.08	0.06	0.08

Debt Equity Ratio (Total Debt /Networth)		1.38	0.97	1.17

Current Ratio (Current Asset/Current Liability)		1.52	1.29	1.79

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Share Capital	15.000	30.000	40.000
Reserves & Surplus	2.077	3.254	5.839
Net worth	17.077	33.254	45.839

long-term borrowings	3.736	1.811	1.734
Short term borrowings	16.290	30.380	61.701
Total borrowings	20.026	32.191	63.435
Debt/Equity ratio	1.173	0.968	1.384

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	206.889	357.886	619.968
		72.985	73.231

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	Rs. In Million	Rs. In Million	Rs. In Million
Sales	206.889	357.886	619.968
Profit	0.932	1.177	1.234
	0.45%	0.33%	0.20%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last four years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

FINANCIAL RESULTS:

The company earned total profit of Rs.3.818 million as against Rs.1.919 million during the previous year. It is the result of hard work of directors, its management team and the entire workforce and they are putting in their best efforts to keep the pace of improvement in coming years.

UNSECURED LOANS:

Particulars	31.03.2014 Rs. In Million	31.03.2013 Rs. In Million
Long Term Borrowings
Loans and advance from related parties
S. K. Bhatia	1.118	1.322
Jitesh Bhatia	0.000	0.088
Anupama S. Bhatia	0.000	0.100

Total	1.118	1.510

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10203921	07/02/2013 *	81,200,000.00	STATE BANK OF INDIA	MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA	B70235528

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipment

· Computer

· Vehicles

· Computer Software

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 records 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.66.75
UK Pound	1	Rs.99.61
Euro	1	Rs.70.67

INFORMATION DETAILS

Information Gathered by :	PPT

Analysis Done by :	HNA

Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	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		30

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

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