MIRA INFORM REPORT

Report Date :

03.12.2012

IDENTIFICATION DETAILS

Name :	JAYDEEP COTTON FIBRES PRIVATE LIMITED
Registered Office :	C-805, The imperial Heights, Opposite Big Bazar, 150 Feet Ring Road, Rajkot – 360005, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.09.1997
Com. Reg. No.:	04-032921
Capital Investment / Paid-up Capital :	Rs.200.000 Millions
CIN No.: [Company Identification No.]	U17119GJ1997PTC032921
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton.
No. of Employees :	Not Available

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

Maximum Credit Limit :	USD 1300000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The latest financials are not made available. As per previous year’s, there appears huge external borrowings recorded by the company. However, trade relations are reported as fair. Business is active. Payment terms are unknown in absence of latest financials. The company can be considered for business dealings with some cautions. Profit and Loss of the company is not available.

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, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
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

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Bank Guarantee A4+
Rating Explanation	Minimal degree of safety and low credit low
Date	15.10.2012

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.

LOCATIONS

Registered Office :	C-805, The imperial Heights, Opposite Big Bazar, 150 Feet Ring Road, Rajkot – 360005, Gujarat, India
Tel. No.:	91-281-2580025
Fax No.:	91-281-2580090
E-Mail :	hjamnadas1.roc@gmail.com info@jaydeepcotton.com jaydeep_cotton@hotmail.com hjamnadas1@gmail.com
Website :	http://www.jaydeepcotton.com
Factory :	8-B, National Highway, Near 66, K V Sub Station, Shpar, Gujarat, India
Tel. No.:	91-2827-252177
Fax No.:	91-2827-253490

DIRECTORS

(AS ON 25.09.2012)

Name :	Mr. Arvindkumar Parsotambhai Patel
Designation :	Director
Address :	801, Megh Malhar Apartment, Shree Colony, Opposite Mahatma Gandhi School, City – Rajkot - 360001, Gujarat, India
Date of Birth/Age :	26.09.1966
Qualification :	HSC
Date of Appointment :	01.09.1997
DIN No.:	00554370
Name :	Mr. Alpeshbhai Vallabhbhai Patel
Designation :	Director
Address :	Flat No.702, Piramid Tower, Bansi Park, Amin Road, Rajkot – 360001, Gujarat, India
Date of Birth/Age :	05.06.1976
Qualification :	HSC
Date of Appointment :	01.09.2007
DIN No.:	01356260
Name :	Mr. Vallabhbhai Valjibhai Pan
Designation :	Director
Address :	Flat No.703, Piramid Tower, Bansi Park, Amin Road, Rajkot – 360001, Gujarat, India
Date of Appointment :	17.10.1997
DIN No.:	00554649

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 25.09.2012)

Names of Shareholders	No. of Shares (Equity)
Mansukh Parsottambhai Patel (As Karta of Mansukh P. Patel HUF)	2081620
Arvind Parsottambhai Patel (As Karta of Arvind P. Patel HUF)	1550800
Parsottambhai Valjibhai Patel	4200000
Sanjay Vallabhbhai Patel	1800000
Alpeshbhai Vallabhbhai Patel	2600000
Vallabhbhai Valjibhai Pan	1600000
Mansukhbhai Parsottambhai Patel	2318380
Arvindkumar Parsotambhai Patel	3049200
Shobhanaben Mansukhbhai Patel	800000
Total	20000000
Names of Shareholders	No. of Shares (Preference)
Mansukh Parsottambhai Patel (As Karta of Mansukh P. Patel HUF)	1000000
Arvind Parsottambhai Patel (As Karta of Arvind P. Patel HUF)	800000
Sanjay Vallabhbhai Patel	350000
Alpeshbhai Vallabhbhai Patel	400000
Vallabhbhai Valjibhai Pan	600000
Ilaben Arvindkumar Patel	750000
Chirag Mansukhbhai Patel	600000
Total	4500000

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton.

Products :

Products Description	Item Code no.
Cotton	52010015

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

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

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks secured	4.379	5.958
Working capital loans banks secured	1119.493	502.318
Total	1123.872	508.276
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans others unsecured	67.150	61.664
Deferred sales tax loan unsecured	9.259	13.890
Total	76.409	75.554

Banking Relations :	--
Auditors :
Name :	H. Jamnadas and Company Chartered Accountant
Address :	217 Heera Panna Complex, Dr. Yagik Road- Rajkot, Gujarat, India
PAN No.:	AABFH2320P

CAPITAL STRUCTURE

(AS ON 25.09.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions
4500000	Preference Shares	Rs.10/- each	Rs.45.000 Millions
	Total		Rs.245.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions
4500000	Preference Shares	Rs.10/- each	Rs.45.000 Millions
	Total		Rs.245.000 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		200.000	90.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		132.908	36.251
4] (Accumulated Losses)		0.000	0.000
NETWORTH		332.908	126.251
LOAN FUNDS
1] Secured Loans		1123.872	508.276
2] Unsecured Loans		76.409	75.554
TOTAL BORROWING		1200.281	583.830
DEFERRED TAX LIABILITIES		0.743	0.732
TOTAL		1533.932	710.813
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		36.305	33.637
Capital work-in-progress		4.210	0.000
INVESTMENT		1.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1102.888	462.304
	Sundry Debtors	639.169	298.688
	Cash & Bank Balances	63.981	15.537
	Other Current Assets	44.181	12.063
	Loans & Advances	67.084	16.216
Total Current Assets		1917.303	804.808
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	315.273	106.314
	Other Current Liabilities	20.270	4.790
	Provisions	90.256	17.144
Total Current Liabilities		425.799	128.248
Net Current Assets		1491.504	676.560
MISCELLANEOUS EXPENSES		0.913	0.616
TOTAL		1533.932	710.813

KEY RATIOS

PARTICULARS	31.03.2011	31.03.2010
Debt Equity Ratio (Total Liability/Networth)	4.88	5.60
Current Ratio (Current Asset/Current Liability)	4.50	6.28

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	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	No
12]	Profitability for last three years	No
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
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	No
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

FORM 8

This form is for	Modification of charge
Charge identification number of the modified	10158903
Corporate identity number of the company	U17119GJ1997PTC032921
Name of the company	JAYDEEP COTTON FIBRES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	306-308, Ajanta Commercial Complex, Gondal Road, Rajkot – 360002, Gujarat, India hjamnadas1.roc@gmail.com
Type of charge	Book Debts Movable Property Floating Charge Others: Stock of RM, SIP and FG
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 description of the instrument creating or modifying the charge	Instrument Modifying Charge: Supplemental Agreement of Hypothecation of Goods and Assets for Increase in the Overall Limit
Date of instrument Creating the charge	03.03.2012
Amount secured by the charge	Rs.1686.600 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest Cash Credit: 3.25% above BR present effective rate 13.25% p.a. EPC/ FBP/ FBD: 1.50% above BR (as per SBI Exporters' Gold Card Scheme). PCFC/ EBR: As per Bank's extant instruction. Terms of Repayment On demand Margin Raw-Material/ SIP/ FG : 25% Domestic Receivables (90 days) : 50% Export Receivables (90 days) : 10% Letter of Credit : 25% Bank Guarantee : 25% EPC/ PCFC (Stock) : 10% EPC/ PCFC (Contract) (FOB) : 10% (CIF) : 15% Extent and Operation of the charge The charge over mortgaged properties to secure the repayment of entire revised credit facilities of Rs.1686.600 Millions together with Interests, Costs, Charges and Expenses thereon.
Short particulars of the property charged	Raw Materials, Stock- in-Trade, Finished Goods, Book debts and Movables etc.
Date of latest modification prior to the present modification	23/12/2010
Particulars of the present modification	By virtue of this Modification, the charge over Company's property to secure the repayment of the enhanced/ revised the credit facilities aggregating to Rs.1686.600 Millions

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Vehicles

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.54.53
UK Pound	1	Rs.87.48
Euro	1	Rs.70.88

INFORMATION DETAILS

Report Prepared by :

NIT

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
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	2
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
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.