MIRA INFORM REPORT

Report No. :	324914
Report Date :	27.05.2015

IDENTIFICATION DETAILS

Name :	HITKARI HITECH FIBRES LIMITED (w.e.f. 06.02.2014)
Formerly Known As :	HITKARI HITECH FIBRES PRIVATE LIMITED (w.e.f. 28.05.2008) HITKARI HITECH FILTERS PRIVATE LIMITED
Registered Office :	51, 1^st Floor, 19A, Grants Building Annex, Bhaskar, Rao Kargatkar Marg, Off Arthur Bunder Road, Colaba, Mumbai – 400005, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	21.06.1993
Com. Reg. No.:	11-072492
Capital Investment / Paid-up Capital :	Rs.26.243 Millions
CIN No.: [Company Identification No.]	U16003MH1993PTC072492
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Non-Woven Fabric.
No. of Employees :	Not Divulged

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	CRISIL
Rating	Long term rating B-
Rating Explanation	High risk of default.
Date	November 30, 2013

Rating Agency Name	CRISIL
Rating	Short term rating A4
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	November 30, 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 (PARTIAL DETAILS)

Name :	Mr. Khushal M
Designation :	Manager
Contact No.:	91-22-67473784

LOCATIONS

Registered / Corporate / Administrative Office :	51, 1^st Floor, 19A, Grants Building Annex, Bhaskar, Rao Kargatkar Marg, Off Arthur Bunder Road, Colaba, Mumbai – 400005, Maharashtra, India
Tel. No. :	91-22-67473784
Fax No. :	Not Available
E-Mail :	accounts@hitkarihitechfibres.com
Website :	www.hitkarihitechfibres.com
Location :	Owned
Factory :	B-10, MIDC, Mahad, District – Raigad – 421301, Maharashtra, India
Tel. No. :	91-2145-232404
Fax No. :	91-2145-233858
E-Mail :	contactus@hitkarihitechfibres.com

DIRECTORS

As on 30.09.2013

Name :

Mr. Ashok Baliram Telang

Designation :

Director

Address :

A/18, Shatdal CHS Limited, Azad Lane, Opposite S. V. Road, Andheri (West), Mumbai – 400058, Maharashtra, India

Date of Birth/Age :

09.12.1941

Date of Appointment :

29.09.2012

DIN No. :

00165933

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	U17119GJ1936PLC040178	THE NAVSARI COTTON AND SILK MILLS LIMITED(TR CO)	Director	11/06/2003	11/06/2003	13/03/2007	Active	YES
2	U23209AP1999PLC031631	RAIN CEMENTS LIMITED	Nominee director	28/02/2005	28/02/2005	05/03/2008	Active	NO
3	U67120MH1996PTC098037	MALIRAM MAKHARIA FINSTOCK PRIVATE LIMITED	Director	05/11/2009	05/11/2009	-	Active	NO
4	U16003MH1993PLC072492	HITKARI HITECH FIBRES LIMITED	Director	29/09/2012	03/05/2010	-	Active	NO

Name :

Mr. Veera Subba Reddy

Designation :

Additional Director

Address :

273, Jupiter Appartments, 27^th Floor, Cuffe Parade, Mumbai – 400005, Maharashtra, India

Date of Appointment :

30.09.2013

DIN No. :

00353530

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	U67120MH1996GOI097783	CANARA BANK SECURITIES LIMITED	Nominee director	16/04/2003	16/04/2003	19/10/2007	Active	NO
2	L65110TN1926PLC001377	LAKSHMI VILAS BANK LIMITED	Managing director	26/09/2007	26/09/2007	23/01/2010	Active	NO
3	U74140MH1998PLC113704	CONCEPT MANAGEMENT CONSULTING LIMITED	Additional director	04/12/2010	04/12/2010	-	Active	NO
4	U72900HR2013PTC048997	RYDBERG INFRATECHNICS PRIVATE LIMITED	Director	02/05/2013	02/05/2013	-	Active	NO
5	U16003MH1993PLC072492	HITKARI HITECH FIBRES LIMITED	Director	30/09/2013	28/05/2013	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Khushal M
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Sulochana Makharia	1237000
Veena Makharia	1111000
Morris Investments PYT Limited	276330
Total	2624330

As on 22.10.2013

Names of Allottee	No. of Shares
Pradeep Jain	100
Bhagwan Sharma	100
Ramesh Dave	100
Shyam Sunder Shah	100
Total	400

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	10.53
Other top fifty shareholders	89.47
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Non-Woven Fabric.

GENERAL INFORMATION

Costumers :

² Maruti Suzuki India Limited

² Toyota Motors

² Tata Motors

² Hyundai

² Hindustan Motors

² General Motors

² Mahindra and Mahindra

² Rava Motors

² Fiat Motors

No. of Employees :

Not Divulged

Bankers :

Oriental Bank of Commerce, Fort Branch, Jash Chambers Ground Floor, Sir P.M. Road, Fort, Mumbai – 400001, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Term loan
From bank	26.748
Other loan and advances	13.643
SHORT TERM BORROWINGS
Working capital loan from bank
Cash credit A/c with OBC Bank (secured against hypothecation of stock and book debts)	49.883
Vehicles Finance (Secured against respective vehicles)	0.215
LC Payable	17.355
Total	107.844

Banking Relations :	--
Auditors :
Name :	Pratap B. Sheth and Company Chartered Accountants
Address :	D-25, Rameshwar, 1167, Murar Road, Mulund (West), Mumbai – 400080, Maharashtra, India
Telefax No. :	91-22-25916420, 25612638
PAN No. :	AAEFP8460H
Related Party :	œ Morris Investment Pty Limited

CAPITAL STRUCTURE

As on 31.03.2013

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
2624330	Equity Shares	Rs.10/- each	Rs.26.243 Millions

After 30.09.2013

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
2624730	Equity Shares	Rs.10/- each	Rs.26.247 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	26.243	25.000	24.000
(b) Reserves & Surplus	17.035	9.620	0.512
(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)	43.278	34.620	24.512
(3) Non-Current Liabilities
(a) long-term borrowings	40.391	57.541	36.917
(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	1.937	1.502	0.000
Total Non-current Liabilities (3)	42.328	59.043	36.917
(4) Current Liabilities
(a) Short term borrowings	67.453	58.047	43.763
(b) Trade payables	5.815	7.094	13.134
(c) Other current liabilities	14.027	12.747	11.863
(d) Short-term provisions	0.227	0.032	1.719
Total Current Liabilities (4)	87.522	77.920	70.479
TOTAL	173.128	171.583	131.908
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	48.495	54.549	40.375
(ii) Intangible Assets	16.277	16.277	4.069
(iii) Capital work-in-progress	3.324	3.453	16.009
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.001	0.001	0.001
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.437	0.394	0.429
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	68.534	74.674	60.883
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	41.149	41.963	33.429
(c) Trade receivables	57.630	47.616	31.855
(d) Cash and cash equivalents	4.468	4.485	4.594
(e) Short-term loans and advances	0.905	2.317	0.808
(f) Other current assets	0.442	0.528	0.339
Total Current Assets	104.594	96.909	71.025
TOTAL	173.128	171.583	131.908

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	323.183	250.456
		Other Income	1.691	0.415
		TOTAL	324.874	250.871	161.892 (Gross)
Less	EXPENSES
		Cost of material consumed / purchase	261.342	197.212
		Changes in inventories of finished goods work in progress and stock-in-trade	(4.191)	(4.651)
		Employee benefit expenses	13.511	11.756
		Others expenses	32.372	30.847
		TOTAL	303.034	235.164	NA
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		21.840	15.707	NA
Less	FINANCIAL EXPENSES		12.151	9.626	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		9.689	6.081	4.602
Less/ Add	DEPRECIATION/ AMORTISATION		7.247	5.972	2.820
	PROFIT/ (LOSS) BEFORE TAX		2.442	0.109	1.782
Less	TAX		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX		2.442	0.109	1.782
	IMPORTS
		Capital Goods	0.363	NA	NA
	TOTAL IMPORTS		0.363	NA	NA
	Earnings / (Loss) Per Share (Rs.)		0.98	0.04	0.68

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.72	0.04	1.10
Net Profit Margin (PBT/Sales)	(%)	0.75	0.04	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.44	0.06	1.54
Return on Investment (ROI) (PBT/Networth)		0.06	0.00	0.07
Debt Equity Ratio (Total Debt/Networth)		2.49	3.33	3.29
Current Ratio (Current Asset/Current Liability)		1.19	1.24	1.01

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	24.000	25.000	26.243
Reserves & Surplus	0.512	9.620	17.035
Net worth	24.512	34.620	43.278
long-term borrowings	36.917	57.541	40.391
Short term borrowings	43.763	58.047	67.453
Total borrowings	80.680	115.588	107.844
Debt/Equity ratio	3.291	3.339	2.492

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)
Sales	250.456	323.183
		29.038

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)
Sales	250.456	323.183
Profit	0.109	2.442
	0.04%	0.76%

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
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	Yes

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10260136	29/11/2010	37,500,000.00	ORIENTAL BANK OF COMMERCE	Fort Branch, Jash Chambers, Ground Floor, Sir P. M Road, Fort, Mumbai - 400001, Maharashtra, INDIA	B03109238
2	10113940	28/06/2012 *	120,000,000.00	Oriental Bank of Commerce	Fort Branch, Jash Chambers, Ground Floor, Sir P. M Road, Fort, Mumbai - 400001, Maharashtra, INDIA	B44668143

* Date of charge modification

FIXED ASSETS

œ Leasehold Land

œ Building

œ Plant and Machinery

œ Office Equipments

œ Vehicles

œ Computers

œ Goodwill

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. 63.85
UK Pound	1	Rs. 98.38
Euro	1	Rs. 69.64

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	TRU

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.