MIRA INFORM REPORT

Report Date :

21.05.2012

IDENTIFICATION DETAILS

Name :	MAKHANLAL RAJKUMAR COTTON LIMITED
Registered Office :	101, Rama Ratan, Gavanpada Junction Opposite Palm Acres Mulund (Wast), Mumbai – 400081, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.07.1991
Com. Reg. No.:	11-062400
Capital Investment / Paid-up Capital :	Rs.52.300 Millions
CIN No.: [Company Identification No.]	U17110MH1991PLC062400
TAN No.: [Tax Deduction & Collection Account No.]	MUMM22186D
PAN No.: [Permanent Account No.]	AAACM3730C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Exporter of Cotton
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate tracks. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	101, Rama Ratan, Gavanpada Junction Opposite Palm Acres Mulund (Wast), Mumbai – 400081, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	bombay@sekhsaria.org makhraj@bom3.vsnl.net.in
Administrative Office :	S-70, Cotton Exchange Building, 2^nd Floor, Cotton Green (East), Mumbai – 400033, Maharashtra, India
Tel. No.:	91-22-23782801/ 23730616
Fax No.:	91-22-23781776

DIRECTORS

As on: 30.09.2011

Name :

Mr. Rajkumar Makhanlal Sekhsaria

Designation :

Director

Address :

1287/ A Tirchy Road, Near Richmond Hospital, Coimbatore – 641018, Tamilnadu, India

Date of Appointment :

20.08.1991

DIN No.:

02440685

Other Directorships :

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	U51311MH1991PTC061922	SEKHSARIA COTTON EXPORTS PRIVATE LIMITED	Director	03-06-91	03-06-91	24-03-09	Active	NO
2	U17110MH1991PLC062400	MAKHANLAL RAJKUMAR COTTON LIMITED	Director	20-08-91	20-08-91	-	Active	YES

Name :

Mr. Nayan Kumar Sekhsaria

Designation :

Director

Address :

1287/ A Tirchy Road, Near Richmond Hospital, Coimbatore – 641018, Tamilnadu, India

Date of Appointment :

20.08.1991

DIN No.:

02021015

Other Directorships :

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	U51311MH1991PTC061922	SEKHSARIA COTTON EXPORTS PRIVATE LIMITED	Director	03-06-91	03-06-91	24-03-09	Active	NO
2	U17110MH1991PLC062400	MAKHANLAL RAJKUMAR COTTON LIMITED	Director	22-08-91	22-08-91	-	Active	YES

Name :

Mr. Pramod Prabhakarn Menon

Designation :

Director

Address :

3 E Jasmine Appartment, May Flowers Sakthi Garden, Nanjundapuran Road, CBE Coimbatore – 641036, Tamilnadu, India

Date of Birth/Age :

30.05.1969

Date of Appointment :

30.09.2011

DIN No.:

03359396

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2011

Names of Shareholders	No. of Shares
Rajkumar M. Sekhsaria HUF	100
Nayankumar R. Sekhsaria	1600000
Geetadevi R. Sekhsaria	1299900
Priya N. Sekhsaria	579900
Bankey H. Aggarwal	100
Ravindra B. Lad	250000
Neeta R. Lad	600000
Reeki R. Lad	200000
Rajkumar Sekhsaria	500000
Others	200000
Total	5230000

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Exporter of Cotton

Products :

Product Description	ITC Code
Cotton Bales	51
Cotton Cake	51

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Oriental Bank of Commerce

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	(A)11.550	(B)18.150
Total	11.550	18.150
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	11.267	10.600
Deposits related parties unsecured	0.000	0.374
Total	11.267	10.974

Notes:

(A) Cash Credit and Packing Credit with Oriental Bank of Commerce is secured against the following: a) Joint Hypothicatication charge over the entire stock, book debts and other current assets of the company with present and future. b) Second equitable mortgage / Hypothethication charges over immovable or movable assets of the company. c) Personal Gurantee of the Directors.

(B) Joint Hypothicatication charge over the entire stock, book debts and other current assets of the company with present and future. b) Second equitable mortgage / Hypothecation charges over immovable /Movable assets of the Company. c) Personal Guarantee of the Directors.

Banking Relations :
Auditors :
Name :	Todarwal and Todarwal Chartered Accountant
Address :	112, Maker Bhavan No. 3,21 Marine Lines, Mumbai – 400020, Mumbai, Maharashtra, India
PAN.:	AAAFT6047N

CAPITAL STRUCTURE

After as on: 30.09.2011

Authorised Capital : Rs.52.500 Millions

Issued, Subscribed & Paid-up Capital : Rs.52.500 Millions

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5250000	Equity Shares	Rs.10/- each	Rs.52.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5230000	Equity Shares	Rs.10/- each	Rs.52.300 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		52.300	52.300	52.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(72.410)	(76.965)	(99.428)
NETWORTH		(20.110)	(24.665)	(47.128)
LOAN FUNDS
1] Secured Loans		11.550	18.150	89.608
2] Unsecured Loans		11.267	10.974	11.829
TOTAL BORROWING		22.817	29.124	101.437
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2.707	4.459	54.309
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.000	0.000	0.000
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	0.000	0.000	0.000
	Sundry Debtors	3.277	5.022	58.049
	Cash & Bank Balances	0.671	0.621	0.062
	Other Current Assets	0.090	0.262	0.150
	Loans & Advances	1.338	0.153	0.267
Total Current Assets		5.376	6.058	58.528
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.293	1.319	3.939
	Other Current Liabilities	0.376	0.280	0.271
	Provisions	0.000	0.000	0.009
Total Current Liabilities		2.669	1.599	4.219
Net Current Assets		2.707	4.459	54.310
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2.707	4.459	54.309

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	25.614	0.000	0.988
		Commission Income	3.225	10.845	1.029
		Commission No Longer rqrd w/back	0.003	0.000	0.000
		Testing Income	0.000	0.000	0.151
		Other Income	0.019	0.060	0.018
		Sundry balance written back	0.000	68.712	0.000
		TOTAL	28.861	79.617	2.186
Less	EXPENSES
		Purchases	21.917	0.000	0.986
		Personal Cost	0.248	0.138	0.104
		Administrative and Other Expenses	2.122	2.214	1.011
		Finance Charges	0.020	0.004	0.066
		Sundry Bad debts and debt balance w/off	0.000	54.798	0.000
		TOTAL	24.307	57.154	2.167
	PROFIT BEFORE TAX		4.554	22.463	0.019
Less	TAX		0.000	0.000	0.010
	PROFIT AFTER TAX		4.554	22.463	0.009
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(76.965)	(99.428)	(99.437)
	BALANCE CARRIED TO THE B/S		(72.410)	(76.965)	(99.428)
	Earnings Per Share (Rs.)		8.71	42.95	0.02

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	15.78	28.21	0.41
Net Profit Margin (PBT/Sales)	(%)	17.78	0.00	1.92
Return on Total Assets (PBT/Total Assets}	(%)	84.71	26.97	0.03
Return on Investment (ROI) (PBT/Networth)		(0.23)	(0.91)	(0.00)
Debt Equity Ratio (Total Liability/Networth)		(1.27)	(1.25)	2.24
Current Ratio (Current Asset/Current Liability)		2.01	3.79	13.87

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	No
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

FINANCIAL RESULTS:

Profit before tax for the year ended 31^st March 2011 amount to Rs.4.554 Millions

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.54.88
UK Pound	1	Rs.86.46
Euro	1	Rs.69.49

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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		14

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.