MIRA INFORM REPORT

Report Date :

16.09.2011

IDENTIFICATION DETAILS

Name :	KARPASA EXPORT PRIVATE LIMITED
Registered Office :	303, Centre One, Near Wockhardt Hospital, Kalwad Road, Rajkot – 360005, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	21.05.2007
Com. Reg. No.:	04-50902
Capital Investment / Paid-up Capital :	Rs.0.900 Million
CIN No.: [Company Identification No.]	U52100GJ2007PTC050902
TAN No.: [Tax Deduction & Collection Account No.]	RKTK01632B
Legal Form :	Private Limited Liability Company
Line of Business :	Distributing, Exporting and Marketing of Raw Cotton
No. of Employees :	23 (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 19000
Status :	Moderate
Payment Behaviour :	Slow
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. 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	303, Centre One, Near Wockhardt Hospital, Kalwad Road, Rajkot – 360005, Gujarat, India
Tel. No.:	91-281-2585249/ 2585239
Mobile No.:	91-9824118158 (Mr. Mitesh Patel)
Fax No.:	91-281-2579698
E-Mail :	rpc.efilling@gmail.com ptilala@rpcnco.com nikhil@karpasa.com

DIRECTORS

(AS ON 30.09.2010)

Name :

Mr. Nikhil Jayantibhai Tilala

Designation :

Director

Address :

“Meet”, 1-Planery Bungalows, Near Silver Avenue Society, Satya Sai Heart Hospital Road, Off Kalawad Road, Rajkot - 360 005, Gujarat, India

Qualification :

M.B.A. – Marketing

Date of Appointment :

21.05.2007

DIN No.:

01349836

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U52100GJ2007PTC050902	KARPASA EXPORT PRIVATE LIMITED	Director	21-05-07	21-05-07	-	Active	NO
2	U27209GJ2008PLC053689	SARJU IMPEX LIMITED	Director	07-08-08	07-08-08	11-11-08	Active	NO

Name :

Mr. Prashant Jayantilal Tilala

Designation :

Director

Address :

“Meet”, 1-Planery Bungalows, Near Silver Avenue Society, Satya Sai Heart Hospital Road, Off Kalawad Road, Rajkot - 360 005, Gujarat, India

Date of Birth/Age :

14.03.1979

Date of Appointment :

01.03.2011

DIN No.:

03079787

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U31200GJ2010PTC060541	JJ PV SOLAR PRIVATE LIMITED	Director	15-06-10	15-06-10	Active	NO
2	U52100GJ2007PTC050902	KARPASA EXPORT PRIVATE LIMITED	Director	01-03-11	01-03-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Nikhil Jayantibhai Tilala	40500
Hiteshkumar Laljibhai Patel	24750
Shailesh Dayalbhai Goti	9900
Prakashbhai Tulsibhai Goti	9900
Sanjaykumar Jerambhai Virani	4950
Sahaj Trading FZC, Dubai	22500
Total	112500

(AS ON 27.06.2011)

Names of Allottee	No. of Shares Allotted
Nikhil Jayantibhai Tilala	8500
Priteshbhai Hareshbhai Tilala	4000
Total	12500

(AS ON 30.09.2010)

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	20.00
Directors or relatives of directors	80.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Distributing, Exporting and Marketing of Raw Cotton

GENERAL INFORMATION

No. of Employees :

23 (Approximately)

Bankers :

· State Bank of India,

Commercial Branch, Noble House, Near Jalaram Petrol Pump, Kalawad Road, Rajkot - 360001, Gujarat, India

· Union Bank of India

Race Course Branch, Race Course Ring Road, Rajkot – 360 001, Gujarat, India

· Axis Bank

· Rajkot People’s Co-Operative Bank Limited

· Standard Chartered Bank

· State Bank of Saurashtra

Facilities :

Secured Loans	31.03.2010 Rs. in millions	31.03.2009 Rs. in millions
Medium Terms Loans
Kotak Mahindra Prime Limited – Car Loan	0.101	0.327
HDFC Bank	1.416	0.000
Working Capital Facility
Union Bank of India – LC FBP (A/c No.9038)	0.500	0.000
Union Bank of India – Non-LC FBP (A/c No.9037)	4.715	0.000
Union Bank of India – Non-LC FBP (A/c No.7227)	0.413	0.000
Total	7.145	0.327
Unsecured Loans	31.03.2010 Rs. in millions	31.03.2009 Rs. in millions
From Shareholders, directors and Directors Relatives	4.050	1.672
From Others	0.000	0.000
Total	4.050	1.672

Banking Relations :	--
Auditors :
Name :	R. P.C. and Company Chartered Accountant
Address :	203-204, Race Course Plaza, Near Custom Excise Building, Race Course Ring Road, Rajkot – 360 001, Gujarat, India

CAPITAL STRUCTURE

(AS ON 30.09.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
130000	Equity Shares	Rs.10 each/-	Rs.1.300 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
125000	Equity Shares	Rs.10 each/-	Rs.1.250 Millions

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10 each/-	Rs.1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
90000	Equity Shares	Rs.10 each/-	Rs.0.900 Million

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		0.900	0.100	0.100
2] Share Application Money		1.350	0.000	0.000
3] Reserves & Surplus		2.592	0.063	0.037
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4.842	0.163	0.137
LOAN FUNDS
1] Secured Loans		7.145	0.327	0.531
2] Unsecured Loans		4.050	1.672	14.680
TOTAL BORROWING		11.195	1.999	15.211
DEFERRED TAX LIABILITIES		0.000	0.000	0.009
TOTAL		16.037	2.162	15.357
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.123	0.746	0.790
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.005	0.013	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	8.166	5.812	23.480
	Cash & Bank Balances	0.418	1.778	0.544
	Other Current Assets	3.793	2.703	0.000
	Loans & Advances	3.872	0.030	3.017
Total Current Assets		16.249	10.323	27.041
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	2.190	6.531	9.094
	Other Current Liabilities	0.023	1.518	2.557
	Provisions	0.132	0.878	0.834
Total Current Liabilities		2.345	8.927	12.485
Net Current Assets		13.904	1.396	14.556
MISCELLANEOUS EXPENSES		0.005	0.007	0.011
TOTAL		16.037	2.162	15.357

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		TOTAL (A)	142.045	55.871	262.488
Less	EXPENSES
		TOTAL (B)	140.136	55.447	262.250
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.909	0.424	0.238
Less	FINANCIAL EXPENSES (D)		1.392	0.127	0.032
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.517	0.297	0.206
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.322	0.227	0.126
	PROFIT BEFORE TAX (E-F) (G)		0.195	0.070	0.080
Less	TAX (H)		0.059	0.039	0.043
	PROFIT AFTER TAX (G-H) (I)		0.136	0.031	0.037
	Earnings Per Share (Rs.)		1.51	3.03	3.70

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.10	0.06	0.01
Return on Total Assets (PBT/Total Assets}	(%)	1.06	0.63	0.29
Return on Investment (ROI) (PBT/Networth)		0.04	0.43	0.58
Debt Equity Ratio (Total Liability/Networth)		2.80	67.03	202.16
Current Ratio (Current Asset/Current Liability)		6.93	1.16	2.17

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered Office of the company has been shifted from C/O R. P. C. and Company 203/204, Race Course Plaza, Near Excise Building, Race Course Ring Road, Rajkot, Gujarat, India, to the present address w.e.f. 01.07.2008.

OPERATIONS

Period ended on March 31, 201010 was the fort year of the company. Company’s performance was good during the year. Management sees good prospect for the company in the coming years and so, there is positive prospect for the company also.

FORM NO. 8

Corporate identity number of the company	U52100GJ2007PTC050902
Name of the company	KARPASA EXPORT PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	303, Centre One, Near Wockhardt Hospital, Kalawad Road, Rajkot – 360 005, Gujarat, India rpc.efiling@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10227258
Type of charge	· Book debts · Movable property (not being pledge) · Others: Stock of finished Goods
Particular of charge holder	· State Bank of India, Commercial Branch, Noble House, Near Jalaram Petrol Pump, Kalawad Road, Rajkot - 360001, Gujarat, India sbi.04085@sbi.co.in
Nature of instrument creating charge	Supplemental Agreement of Loan-Cum-Hypothecation Dtd. 27.06.2011
Date of instrument Creating the charge	27.06.2011
Amount secured by the charge	Rs.56.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of interest Export Packing Credit Limit: 1.50% above BR i.e. 10.75% p.a. Cash Credit Limit: 6.75% above Br i.e. 16.00% p.a. · Terms of repayment On demand · Margin Finished Goods : 25% (Cash Credit - Regular) Finished Goods : 10% (Export Packing Credit) · Extent and operation of the charge The banks' charge will remain operative till the bank's dues are repaid in full.
Particulars of the property charged	All the Present and Future Stocks, Raw Materials, Goods, Book-Debts, and Vehicle and all other movable assets of the company
Particulars of the present modification	Modification in charge amount to 56.000 Millions to increase in Total Export Packing Credit/Cash Credit Limit from Rs.33.000 Millions to Rs.56.000 Millions (EPC/CC Limit of Rs.50.000 Millions and Credit Exposure Limit of Rs.6.000 Millions) with sub-limit in EPC/CC Limit of Rs.20.000 Millions of Cash Credit Limit (Regular) and Rs.20.000 Millions of Letter of Credit.

FIXED ASSETS

· Computers and Printers

· Optra Car

· Furniture

· Captiva 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.47.81
UK Pound	1	Rs.75.16
Euro	1	Rs.65.11

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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	4
--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	NO
--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.