MIRA INFORM REPORT

Report Date :

18.07.2011

IDENTIFICATION DETAILS

Name :	JYOTI COTSPIN LIMITED
Registered Office :	Bhawanigarh Road, Samana, District Patiala – 147101, Punjab
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	06.04.2005
Com. Reg. No.:	28210
Capital Investment / Paid-up Capital :	Rs.77.520 Millions
CIN No.: [Company Identification No.]	U17100PB2005PLC028210
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of Cotton Yarn.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 333000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Madan and Mr. Manish
Designation :	Director
Contact No.:	91-9914371555
Date :	16.07.2011

LOCATIONS

Registered Office/Factory :	Bhawanigarh Road, Samana, District Patiala – 147101, Punjab, India
Tel. No.:	91-1764-329511
Mobile No.:	91-9914371555 (Mr. Ashok) 91-9888676000 (Mr. Manish) 91-9814221443 (Mr. Madan)
Fax No.:	91-1764-32558/223511
E-Mail :	mittalhrca@yahoo.co.in
Website :	www.Jyoticotspin.com
Location :	Owned

DIRECTORS

As on 13.09.2010

Name :	Mr. Madan Lal
Designation :	Director
Address :	#1649/7, Krishna Basti, Samana, Patiala – 147101, Punjab, India
Date of Birth/Age :	07.10.1954
Date of Appointment :	06.04.2005
DIN No. :	00128271
Name :	Mr. Ashok Kumar
Designation :	Director
Address :	#1649/7, Krishna Basti, Samana, Patiala – 147101, Punjab, India
Date of Birth/Age :	08.06.1959
Date of Appointment :	06.04.2005
DIN No. :	00128280
Name :	Mr. Manish Singla
Designation :	Director
Address :	Krishna Basti, Samana, Patiala – 147101, Punjab, India
Date of Birth/Age :	08.06.1983
Date of Appointment :	06.04.2005
DIN No. :	00291499
Name :	Mr. Naresh Kumar
Designation :	Director
Address :	#127/7, Krishna Basti, Samana, Patiala – 147101, Punjab, India
Date of Birth/Age :	20.12.1973
Date of Appointment :	01.07.2008
DIN No. :	02246007
Name :	Mr. Rajesh Kumar
Designation :	Director
Address :	#1140, Ward No. 7, Part Two, Samana, Patiala – 147101, Punjab, India
Date of Birth/Age :	16.09.1969
Date of Appointment :	01.07.2008
DIN No. :	02246054
Name :	Mr. Nand Gopal
Designation :	Director
Address :	#127/7, Krishna Basti, Samana, Patial, Punjab, India
Date of Birth/Age :	06.12.1944
Date of Appointment :	01.07.2008
DIN No. :	02246043

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 13.09.2010

Names of Shareholders	No. of Shares
Madan Lal	623000
Ashok Kumar	830300
Manish Singla	345700
Tripta Singla	290100
Trisha Jain	267000
Nilesh Jain	117400
Nand Gopal	115000
Raj Rani	202500
Sarika Garg	100000
Ashok Kumar (HUF)	152000
Naresh Kumar	140000
Jagdambay Cotspin Limited (India)	250000
Parkash Chand	211700
Nand Gopal (HUF)	252900

As on 13.09.2010

Category	Percentage
Bodies corporate	3.22
Directors or relatives of Directors	96.78
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Supplier of Cotton Yarn.
Exports :
Products :	Cotton Yarn
Countries :	China European Countries Bangladesh Egypt
Imports :
Products :	Yarn
Countries :	China
Terms :
Selling :	L/C, Cash and Credit (30 days)
Purchasing :	L/C, Cash and Credit (30 days)

PRODUCTION STATUS As on 31.03.2010

Particulars	Unit	Actual Production
Cotton Yarn	Kg.	2998165
Cotton Waste	Kg.	463060

GENERAL INFORMATION

Customers :

• Wholesalers
• Retailers
• End users

No. of Employees :

100 (Approximately)

Bankers :

State Bank of India, Specialised Branch, SCO-103-106, Sector 17-B, Chandigarh – 160017, Chandigarh, India

Facilities :

Secured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. In Millions)
State Bank of India Term Loan A/c (Secured by equitable mortgage of Fixed Asets, present and future and also guaranted by directors of the company)	32.594	44.549
Term Loan A/c (Secured by equitable mortgage of Fixed Asets, present and future and also guaranted by directors of the company)	20.452	25.002
Term Loan A/c (Secured by equitable mortgage of Fixed Asets, present and future and also guaranted by directors of the company)	9.712	11.368
Cash Credit Limit A/c CHD (Secured against Hypothecation of Stock and book debts)	21.857	28.126
Total	84.615	109.045
Unsecured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. In Millions)
From Directors	0.000	0.000
From Others	0.583	0.529
Total	0.583	0.529

Banking Relations :	--
Auditors :
Name :	H. R. Mittal and Company Chartered Accountant
Address :	Tehsil Road, Samana – 147101, Punjab, India
Associates/Subsidiaries :	Sushine Cotspin Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7752000	Equity Shares	Rs.10/-each	Rs.77.520 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		77.520	77.520	71.283
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.754	3.972	2.330
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		83.274	81.492	73.613
LOAN FUNDS
1] Secured Loans		84.615	109.045	91.817
2] Unsecured Loans		0.583	0.529	0.000
TOTAL BORROWING		85.198	109.574	91.817
DEFERRED TAX LIABILITIES		3.106	2.112	1.226
TOTAL		171.578	193.178	166.656
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		111.880	128.308	127.292
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	26.970	40.390	18.685
	Sundry Debtors	6.135	9.655	12.280
	Cash & Bank Balances	19.339	12.284	5.371
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	15.091	9.091	12.969
Total Current Assets		67.535	71.420	49.305
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5.939	4.894	8.443
	Other Current Liabilities	0.000	0.020	0.000
	Provisions	1.902	1.645	1.511
Total Current Liabilities		7.841	6.559	9.954
Net Current Assets		59.694	64.861	39.351
MISCELLANEOUS EXPENSES		0.004	0.009	0.013
TOTAL		171.578	193.178	166.656

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	207.986	216.597
		Other Income	0.707	0.495
		TOTAL (A)	208.693	217.092	210.044
Less	EXPENSES
		Cost of Material	144.066	151.067	159.173
		Manufacturing Expenses	31.127	25.139	24.548
		Employee’s Cost	1.513	1.425	1.278
		Administrative Expenses	1.196	3.809	0.579
		Selling Expenses	1.791	2.497	2.966
		Increase / (Decrease) in Stock	1.309	3.639	(7.915)
		TOTAL (B)	181.002	187.576	180.629
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		27.691	29.516	29.415
Less	FINANCIAL EXPENSES (D)		7.091	8.372	7.216
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.600	21.144	22.199
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.286	18.276	19.271
	PROFIT BEFORE TAX (E-F) (G)		3.314	2.868	2.928
Less	TAX (I)		1.532	1.226	1.218
	PROFIT AFTER TAX (G-I) (J)		1.782	1.642	1.710
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.972	2.330	0.620
	BALANCE CARRIED TO THE B/S		5.754	3.972	2.330
	Earnings Per Share (Rs.)		0.23	0.21	--

Particulars	31.03.2011
Sales Turnover (Approximately)	300.000

Expected Sales (2011-2012) : Rs.400.000 Millions

The above information has been parted by Mr. Mr. Madan and Mr. Manish

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.85	0.76	0.81
Net Profit Margin (PBT/Sales)	(%)	1.59	1.32	--
Return on Total Assets (PBT/Total Assets}	(%)	1.85	1.43	1.66
Return on Investment (ROI) (PBT/Networth)		0.04	0.03	0.04
Debt Equity Ratio (Total Liability/Networth)		1.12	1.42	1.38
Current Ratio (Current Asset/Current Liability)		8.61	10.89	4.95

LOCAL AGENCY FURTHER INFORMATION

Trade References :

• Sheetal shipping
• Honey Yarn

Fixed Assets :

• Land
• Building
• Plant and Machinery
• Scooter
• Furniture
• Car

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.44.53
UK Pound	1	Rs.71.91
Euro	1	Rs.62.98

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.