MIRA INFORM REPORT

Report Date :

28.12.2012

IDENTIFICATION DETAILS

Name :	KOTHARI AGRITECH PRIVATE LIMITED
Formerly Known As :	KOTHARI INDUSTRIES
Registered Office :	“Sun Plaza” 8516/11, 3^rd Floor, Murarji Peth, Subhash Chowk, Solapur – 413001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.09.2012
Com. Reg. No.:	25-135094
Capital Investment / Paid-up Capital :	Rs. 50.000 millions
CIN No.: [Company Identification No.]	U25203PN2009PTC135094
TAN No.: [Tax Deduction & Collection Account No.]	PNEK09201D
PAN No.: [Permanent Account No.]	AADCK8017H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pipes like PVC Pipes and Fittings, SWK Pipes and Fittings.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 580000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established as a partnership firm in 1996 as Kothari Industries and during 2009 it converted into a private limited. Latest financial i.e. 2011-12 are missing from the government department. From the available financial of 2011 it seems that company is having moderate track record. There appears huge external borrowings recorded by the company. It is susceptible to adverse changes in the government policies on micro irrigation. However, it has recorded an impressive growth in its income from operations during 2011. 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 great cautions.

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	CRISIL
Rating	Long-Term Rating = B+
Rating Explanation	High risk of default.
Date	October 05, 2012

Rating Agency Name	CRISIL
Rating	Short Term Rating = A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	October 05, 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/ Admin/ Corporate Office :	“Sun Plaza” 8516/11, 3^rd Floor, Murarji Peth, Subhash Chowk, Solapur – 413001, Maharashtra, India
Tel. No.:	91-217-2721490
Fax No.:	91-217-2721498
E-Mail :	accounts@kotharipipes.co.in nama.av@gmail.com
Website :	http://www.kotharipipes.co.in
Factory :	Plot No. 185-193, Chandramauli Industrial Co-operative Estate, Mohol, Solapur – 413213, Maharashtra, India
Tel. No.:	91-2189-232298 / 232498
Fax No.:	91-2189-232591
E-Mail :	sales@kotharipipes.co.in

DIRECTORS

As on 29.09.2012

Name :

Mr. Kiran Shivlal Kothari

Designation :

Director

Address :

Nagane Deshmukh Apartments, Bhudhwar Peth, Samrat Chowk, Solapur – 413002, Maharashtra, India

Date of Birth/Age :

01.06.1956

Qualification :

B.Sc. (Agriculture)

Date of Appointment :

01.12.2009

PAN No.:

ABNPK3433H

DIN No.:

00423658

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	U25209PN1996PTC095940	KOTHARI PIPES AND FITTINGS PRIVATE LIMITED	Director	22-10-03	22-10-03	-	Active	NO
2	U25203PN2009PTC135094	KOTHARI AGRITECH PRIVATE LIMITED	Director	01-12-09	01-12-09	-	Active	NO

Name :

Mr. Arvind Shivlal Kothari

Designation :

Director

Address :

Jupitor Apartments, S. No. 8338/A/2/2/2, Railway Lines, Solapur – 413001, Maharashtra, India

Date of Birth/Age :

01.06.1958

Qualification :

B.Sc.

Date of Appointment :

01.12.2009

PAN No.:

ABGPK7158Q

DIN No.:

00423735

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	U25209PN1996PTC095940	KOTHARI PIPES AND FITTINGS PRIVATE LIMITED	Director	22-10-03	22-10-03	-	Active	NO
2	U25203PN2009PTC135094	KOTHARI AGRITECH PRIVATE LIMITED	Director	01-12-09	01-12-09	-	Active	NO

Name :

Mr. Ujwal Shivlal Kothari

Designation :

Chairman and Managing Director

Address :

C-Narshi Roadways, Samrat Chowk, Solapur – 413 002, Maharashtra, India

Date of Birth/Age :

25.12.1960

Qualification :

B.Com

Date of Appointment :

01.12.2009

PAN No.:

ABNPK3434A

DIN No.:

00423813

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	U25209PN1996PTC095940	KOTHARI PIPES AND FITTINGS PRIVATE LIMITED	Director	22-10-03	22-10-03	-	Active	NO
2	U25203PN2009PTC135094	KOTHARI AGRITECH PRIVATE LIMITED	Managing director	01-12-09	01-12-09	-	Active	NO
3	U25199PN2012PTC144885	KOTHARI PRIMA PRIVATE LIMITED	Director	28-09-12	28-09-12	-	Active	NO

Name :

Mr. Amol Shantikumar Paliya

Designation :

Additional director

Address :

At Post Ahergaon, Taluka Madha, District Solapur – 413 209, Maharashtra, India

Date of Birth/Age :

27.03.1978

Date of Appointment :

30.09.2011

PAN No.:

AIGPP7461E

DIN No.:

01483162

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	U25209PN1996PTC095940	KOTHARI PIPES AND FITTINGS PRIVATE LIMITED	Director	22-10-03	22-10-03	-	Active	NO
2	U25203PN2009PTC135094	KOTHARI AGRITECH PRIVATE LIMITED	Whole-time director	30-09-11	01-02-11	-	Active	NO

Name :

Mr. Anand Ramchandra Kothadiya

Designation :

Director

Address :

Hayaskulvasahata, jeur, Taluka Karmala, Solapur – 413203, Maharashtra, India

Date of Birth/Age :

05.03.1949

Date of Appointment :

01.05.2012

DIN No.:

05270588

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Kiran Shivlal Kothari	1400000
Ujwal Shivlal Kothari	700000
Arvind Shivlal Kothari	700000
Amol Shantikumar Paliya	700000
Pushkaraj Kiran Kothari	700000
Ashish Arvind Kothari	700000
Akshay Arvind Kothari	700000
Sourabh Ujwal Kothari	700000
Gourav Ujwal Kothari	700000
Total	7000000

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Pipes like PVC Pipes and Fittings, SWK Pipes and Fittings.
Products :	· Drip Irrigation System · Mini Sprinkler · Jets and Foggers · Filters · Poly Fittings · Plastic Sprinklers and Pop Ups · Rain-guns · Sprinkler Irrigation System · Rigid u PVC Pipes · PVC Rubber Ring Joint Pipe · Fabricated Fittings · PVC Agriculture Moulded Fittings Hose Pipes and ASTM Pipes

GENERAL INFORMATION

No. of Employees :

400 (Approximately)

Bankers :

State Bank of India, Rajamati Bhavan, Bhusar Peth, Mohol, Solapur – 413 213, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors secured	73.596	(0.275)
Loans taken for vehicles secured	2.621	3.861
Loans taken for other fixed assets secured	301.813	102.579
Other debt secured	0.000	0.030
Total	378.030	106.195
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	55.003	51.286
Deposits related parties unsecured	17.939	15.561
Total	72.942	66.847

Banking Relations :	--
Financial Institution :	Electronica Finance Limited, 128/A, Plot No. 3, Kailashchandra Apartments, Paud Road, Kothrud, Pune – 411038, Maharashtra, India
Auditors :
Name :	Shah Khandralwal Jain and Associates Chartered Accountants
Address :	Pune, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AACFK3470E
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Kothari Cables Kothari Pipes and Fittings Private Limited CIN No.:U25209PN1996PTC095940 Amit Sales

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs. 10/- each	Rs. 70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs. 10/- each	Rs. 70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 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		50.000	50.000
2] Share Application Money		12.080	19.200
3] Reserves & Surplus		84.297	33.229
4] (Accumulated Losses)		0.000	0.000
NETWORTH		146.377	102.429
LOAN FUNDS
1] Secured Loans		378.030	106.195
2] Unsecured Loans		72.942	66.847
TOTAL BORROWING		450.972	173.042
DEFERRED TAX LIABILITIES		9.883	0.180
TOTAL		607.232	275.651
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		200.017	78.269
Capital work-in-progress		153.774	4.901
INVESTMENT		0.257	0.141
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	231.247	122.740
	Sundry Debtors	335.545	201.901
	Cash & Bank Balances	27.262	23.323
	Other Current Assets	32.690	10.725
	Loans & Advances	39.722	4.664
Total Current Assets		666.466	363.353
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	315.889	133.629
	Other Current Liabilities	97.669	37.751
	Provisions	0.000	0.000
Total Current Liabilities		413.558	171.380
Net Current Assets		252.908	191.973
MISCELLANEOUS EXPENSES		0.276	0.367
TOTAL		607.232	275.651

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2011	31.03.2010
	SALES
		Income		1110.712	419.933
		Other Income
		TOTAL		1110.712	419.933
Less	EXPENSES
		Office Expenses
		Administrative Expenses		961.310	376.973
		Advertising Expenses
		TOTAL		961.310	376.973
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION			149.402	42.961
Less	FINANCIAL EXPENSES			56.742	14.479
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION			92.660	28.482
Less/ Add	DEPRECIATION/ AMORTISATION			12.650	6.243
Less	PRELIMINARY EXPENSES W/O			0.092	0.092
	PROFIT BEFORE TAX			79.918	22.147
Less	TAX			28.850	8.338
	PROFIT AFTER TAX			51.068	13.809
	Earnings Per Share (Rs.)			10.21	2.77

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010
PAT / Total Income	(%)	4.60	3.29
Return on Total Assets (PBT/Total Assets}	(%)	9.22	5.01
Return on Investment (ROI) (PBT/Networth)		0.55	0.22
Debt Equity Ratio (Total Liability/Networth)		5.91	3.36
Current Ratio (Current Asset/Current Liability)		1.61	2.12

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	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two 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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Note: The registered address of the company has been shifted from Plot No 146 to 157, Chandramauli Industrial Co-operative Estate Mohol - 413213, Maharashtra, India to the present w.e.f.11.11.2011

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U25203PN2009PTC135094
Name of the company	KOTHARI AGRITECH PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No 146 to 157, Chandramauli Industrial Co-operative Estate Mohol - 413213, Maharashtra, India nama.av@gmail.com
This form is for	Creation of charge
Type of charge	Movable Property
Particular of charge holder	Electronica Finance Limited, 128/A, Plot No. 3, Kailashchandra Apartments, Paud Road, Kothrud, Pune – 411038, Maharashtra, India finance@electronicafinance.com
Nature of description of the instrument creating or modifying the charge	Deed of hypothecation dated 22^nd October 2011.
Date of instrument Creating the charge	22.10.2011
Amount secured by the charge	Rs. 10.051 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 13.53% p.a. Terms of Repayment 36 Monthly Installments. Margin N.A. Extent and Operation of the charge First Charge.
Short particulars of the property charged	16mm, inline short (4lph) 32, cavity fully hot runner mould 2 nos. lying at plot no.185 to 193 amp: 146 to 157, Chandramauli, Industrial Estate Mohol District Solapur.

FIXED ASSETS

• Land
• Building (other than Factory)
• Factory Building
• Plant and Machinery (NESD)
• Furniture and Fixtures
• Cycles (NSED)
• Motor-cars, motor-cycles, scooters and other mopeds (NESD)
• Plant and Machinery (Triple Shift)
• Data processing machines

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 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.54.85
UK Pound	1	Rs.88.55
Euro	1	Rs.72.63

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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		33

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.