MIRA INFORM REPORT

Report Date :

28.03.2012

IDENTIFICATION DETAILS

Name :	LAVINO KAPUR COTTONS PRIVATE LIMITED
Registered Office :	121-122, Mittal Chambers, Nariman Point, Mumbai-400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.01.1974
Com. Reg. No.:	11-017112
Capital Investment / Paid-up Capital :	Rs.60.202 Millions
CIN No.: [Company Identification No.]	U24100MH1974PTC017112
TAN No.: [Tax Deduction & Collection Account No.]	MUML05147C MUML04659E
PAN No.: [Permanent Account No.]	AAACL0824C
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturers, Importers and Exporters of Cotton.
No. of Employees :	200 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1300000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an old and established company having satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION DECLINED BY

Management Non Co-Operative.

LOCATIONS

Registered Office :	121-122, Mittal Chambers, Nariman Point, Mumbai-400021, Maharashtra, India
Tel. No.:	91-22-22325141 (11 Lines) / 66325141
Fax No.:	91-22-22324979 / 22324421 / 66324979
E-Mail :	lavino@vsnl.com
Website :	http://www.absorbent-cotton.com
Factory:	H-1 MIDC, Tarapur Industrial Area, Taps Post, Boisar-401504, District Thane, Maharashtra
Tel. No.:	91-2525-272290/91/92
Fax No.:	91-2525-273325

DIRECTORS

As on 30.09.2011

Name :	Mr. Kahanchand Jaikishan Narang
Designation :	Director
Address :	9, Jaitirath Mansion, Barracks Road, Mumbai- 400020, Maharashtra, India.
Date of Birth/Age :	04.09.1930
Date of Appointment :	28.09.1990
Din No.:	00041615
Name :	Mr. Madhav Krishna Soman
Designation :	Director
Address :	Chaitanya, Plot No. 90, National Co-Op Housing society Limited, Baner Road, Aundh, Pune- 411007, Maharashtra, India.
Date of Birth/Age :	29.05.1931
Date of Appointment :	30.11.1991
Din No.:	00090363
Name :	Mr. Vikram Inderjit Kapur
Designation :	Whole Time Director
Address :	11, Matruchaya, 70, Marine Drive, Mumbai- 400020, Maharashtra, India.
Date of Birth/Age :	24.03.1958
Date of Appointment :	01.07.2003
Din No.:	00171317
Name :	Mr. Ajay Inderjit Kapur
Designation :	Director
Address :	Flat A-3, Kapur Mahal, 121, Marine Drive, Mumbai- 400020, Maharashtra, India.
Date of Birth/Age :	25.12.1962
Date of Appointment :	01.07.2003
Din No.:	00171362
Name :	Mittoor Seshachalam Subramanian
Designation :	Whole Time Director
Address :	B 501/502, Classsique, Neelkanth Palms, Kapurbawadi, Thane-400607, Maharashtra, India
Date of Birth/Age :	01.06.1954
Date of Appointment :	06.11.2008
Din No.:	00106319

KEY EXECUTIVES

Name :	Mr. Alangudi K Laxminarayan
Designation :	Company Secretary
Address :	5, Kailash, 83, Pestom Sagar, Mumbai- 400089, Maharashtra, India.
Date of Birth/Age :	29.05.1935
Date of Appointment :	01.10.2001
Pan No.:	AARPL0060E

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Pratibha Kapur	3504736
Ajay Kapur	721704
Vikram Kapur	541634
Vivek Kapur	8000
Radha Raman Kapur	40000
Rajan Kapur	25200
Nirmal Khanna	70400
Anil Trehan and Rahul Trehan	25200
Kahanchand Narang	6400
Atul Kapur	4000
Usha Khanna	28000
Renuka Narang	198408
Kiran Deepak Nagpal	200000
Anjali Manoj Chadha	192000
Inderjit Kapur HUF	8
Shivkumar Kapur	8000
Pramilla Khanna	20600
Surendranath Kapur and Atul Kumar Kapur	16000
Surendranath Kapur and Sheetal Khanna	20000
Chetan Kapur	90035
Dhruv Kapur	90035
Suman Chandok	64000
Madhu Grover	64000
Shushil Kapur	24600
Chand Suri	12300
Kanchan Mehra	12300
Sanjiv Khanna HUF	32600
Total	6020160

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	92.00
Other top fifty shareholders	8.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers, Importers and Exporters of Cotton.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Absorbent Cotton	560121.10

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Absorbent Cotton Pharmacopoeial Grade	MT	9600	6600	2314

NOTE:

1. Licensed and installed capacity is on three shift basis

2. Installed capacity has been certified by the director (works)

GENERAL INFORMATION

No. of Employees :

200 [Approximately]

Bankers :

Standard Chartered Bank- 90, M G Road, Fort, Mumbai- 400001, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loan	0.000	13.000
Foreign currency loans	0.000	27.748
Working capital loans	246.145	207.075
Loans taken for vehicles	0.377	0.572
Total	246.522	248.395
Unsecured Loan
Loans directors	203.717	216.234
Total	203.717	216.234

Banking Relations :	--
Auditors :
Name :	P. C. Mehra and Company Chartered Accountants
Address :	716, Maker Chambers, Nariman Point, Mumbai- 400021, Maharashtra, India
Pan No.:	AABFP7194B

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
6100000	Equity Shares	Rs.10/- each	Rs.61.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6020160	Equity Shares	Rs.10/- each	Rs.60.202 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		60.202	60.202	60.202
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		281.712	256.852	296.471
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		341.914	317.054	356.673
LOAN FUNDS
1] Secured Loans		246.522	248.395	333.650
2] Unsecured Loans		203.717	216.234	224.584
TOTAL BORROWING		450.239	464.629	558.234
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		792.153	781.683	914.907
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		464.740	511.300	599.118
Capital work-in-progress		8.429	20.473	20.473
INVESTMENT		0.170	0.170	0.170
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	174.282	143.248	154.561
	Sundry Debtors	105.861	56.417	101.969
	Cash & Bank Balances	34.353	42.734	29.575
	Other Current Assets	42.563	32.793	40.530
	Loans & Advances	21.816	27.049	21.780
Total Current Assets		378.875	302.241	348.415
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	33.706	25.212	24.815
	Other Current Liabilities	23.963	25.133	26.763
	Provisions	2.392	2.156	1.995
Total Current Liabilities		60.061	52.501	53.573
Net Current Assets		318.814	249.740	294.842
MISCELLANEOUS EXPENSES		0.000	0.000	0.304
TOTAL		792.153	781.683	914.907

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	EXPORTS / SALES		765.775	632.358	831.404
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		104.502	112.748	182.103
	FINANCIAL EXPENSES		10.516	14.967	21.945
	DEPRECIATION/ AMORTISATION		81.319	88.151	95.307
	INCOME AFTER INTEREST AND DEPRECIATION		12.667	9.630	64.851
Add/ Less	EXCHANGE DIFFERENCE GAIN/LOSS		12.175	(49.249)	93.862
	PROFIT BEFORE TAX		24.842	(39.619)	(29.011)
Add /Less	EXCESS/SHORT PROVISION FOR TAXATION IN EARLIER YEARS		0.018	0.000	0.000
Less	PROVISION FOR INCOME TAX
	FRINGE BENEFIT TAX		0.000	0.000	0.750
	WEALTH TAX		0.000	0.000	0.031
Add/ Less	TRANSFERRED FROM REVALUATION RESERVE		0.032	0.035	0.038
	PROFIT AFTER TAX		24.892	(39.584)	(29.754)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	724.921	604.144	791.418
	IMPORTS
		Plant and Machinery [Raw Material, Chemicals, Stores, Spares]	3.894	0.000	3.280
		Packing Materials	44.695	56.735	35.118
	TOTAL IMPORTS		48.589	56.735	38.398
	Earnings Per Share (Rs.)		4.13	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	3.24	(6.27)	(3.49)
Return on Total Assets (PBT/Total Assets}	(%)	2.94	(4.87)	(3.06)
Return on Investment (ROI) (PBT/Networth)		0.07	(0.12)	(0.08)
Debt Equity Ratio (Total Liability/Networth)		1.49	1.63	1.72
Current Ratio (Current Asset/Current Liability)		6.31	5.75	6.50

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors	33.706	25.212	24.815

BACKGROUND:

Subject was incorporated in 1974 under the Companies Act, 1956. The company has its unit at Tarapur which is 100% Export Oriented Unit approved by Government of India. The company has been recognized as Star Export House by Director General of Foreign Trade.

OPERATIONS:

The company’s sales have increased to Rs.765.775 millions as compared to Rs.632.358 millions in the previous year. Increase in price of raw materials and consumable which could not be passed to the customers have impacted operational results for the year. Cost of cotton started rising from November 2010 and saw a very sharp increase. Prices of cotton have now stabilized but are still higher compared to prices in Y.E. 31.03.2010. Persistent effort with customer have resulted in partial recovery of increased cost in the current year. The year has ended with a net profit of Rs.24.892 millions.

CURRENT YEAR:

Sales for the first 3 months that is April to June 2011 are Rs.224.200 millions as compared to Rs.156.000 millions in the previous year. There are improvements in customer order position and the board is cautiously optimistic to be able to report better results for the year to 31^st March 2012.

FINANCE:

The company has not accepted any deposits from the public. Deposits have been accepted from shareholders and there were no unclaimed deposits outstanding at year-end. Shareholders deposits outstanding at year end are Rs.203.700 millions including interest free deposits of Rs.150.700 millions.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	90164506
Corporate identity number of the company	U24100MH1974PTC017112
Name of the company	LAVINO KAPUR COTTONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	121-122, Mittal Chambers, Nariman Point, Mumbai-400021, Maharashtra, India
Type of charge	Book Debts Movable Property [not being pledge] Floating Charge
Particular of charge holder	Standard Chartered Bank- 90, M G Road, Fort, Mumbai- 400001, Maharashtra, India
Email	nilesh.babar@sc.com
Nature of description of the instrument creating or modifying the charge	Seventh supplemental deed of hypothecation of current and movable assets.
Date of instrument Creating the charge	13.10.2010
Amount secured by the charge	Rs.321.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Credit Facilities: Interest/ Commission – As agreed by and with the bank from time to time. Terms of Repayment As agreed by and with the bank from time to time. Margin As agreed by and with the bank from time to time. Extent and Operation of the charge The bank is having exclusive charge on security offered by the company. Others Exclusive charge on security as specified in schedule has been created in favour of bank for the purpose of securing credit facility to the extent of USD 7 Mio+Rs.6.500 millions granted to the company. For the purpose of filing form 8, the USS facility amount equivalent in Rs. has been calculated at the prevailing foreign exchange rate i.e. (1 USD = Rs. 45.00)
Short particulars of the property charged	Hypothecation by way of exclusive charge on: a) All present and future book debts/ o/s money receivable, claims and bills. b) All present and future stock in trade consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise. c) All present and future of movable properties of the company.
Date of latest modification prior to the present modification	26.03.2009
Particulars of the present modification	By present modification, the existing charge of Rs.384.120 millions reduced to Rs.321.500 millions. Now, the credit facility constitutes of USD 7 Mn (equivalent to Rs.315.000 millions) plus Rs.6.500 millions, total aggregate Rs.321.500 millions.

FIXED ASSETS:

· Leasehold Land At Tarapur

· Building

· Plant And Machinery

· Furniture And Fixtures

· Factory Equipments

· Office Equipments

· Motor Car

· Electric Installation

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.50.90
UK Pound	1	Rs.81.27
Euro	1	Rs.67.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		45

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.