MIRA INFORM REPORT

Report Date :

25.05.2012

IDENTIFICATION DETAILS

Name :	SRI DARSHAN INDUSTRIES
Registered Office :	D No.7-2-53/5, N.H.No.7 Road, Adilabad, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	17.05.2010
Com. Reg. No.:	154/2010
Capital Investment / Paid-up Capital :	Rs.17.789 millions
IEC No.:	0911005595
PAN No.: [Permanent Account No.]	ABTFS7713G
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer and Trader of cotton.
No. of Employees :	10 (Approximately) (In Office -2, In Factory -8)

RATING & COMMENTS

MIRA’s Rating :

B (41)

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

Maximum Credit Limit :	USD 71000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a relatively new partnership concern having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The concern 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.

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

INFORMATION PARTED BY

Name :	Mr. Krishna Prasad
Designation :	SR. Export Manager
Contact No.:	91-8008602055
Date :	24.05.2012

LOCATIONS

Registered Office :	D No.7-2-53/5, N.H.No.7 Road, Adilabad, Andhra Pradesh, India
Tel. No.:	91-8732-230628 / 230637
Mobile No.:	91-8008602055 (Mr. Krishna Prasad)
Fax No.:	91-8732-232896
E-Mail :	raghunath-agrotech@yahoo.co.in
Websites :	http://www.raghunath-agrotech@yahoo.co.in
Location :	Owned
Factory :	SY. No.24/A, 24/AA, 25/AA, 26 Lakkampur Village Neradigonda Mandal Adilabad Andhra Pradesh, India
Location :	Owned

PARTNERS

Name :	Mr. Raghunath Mittal
Designation :	Partner
Address :	H. No.7-2-53, Bhoktapur, Adilabad, Andhra Pradesh, India
Date of Birth/Age :	10.03.1944
Name :	Mr. Janak Kumar
Designation :	Partner
Address :	Plot no.10, G.S. Estates, Adilabad, Andhra Pradesh, India
Name :	Mr. Aarthi Mittal
Designation :	Partner
Address :	H. No.7-2-53, Bhoktapur, Adilabad, Andhra Pradesh, India
Date of Birth/Age :	23.08.1975
Name :	Mr. Rohit Goyal
Designation :	Partner
Address :	7-2-53/4, Bhoktapur, Adilabad, Andhra Pradesh, India
Date of Birth/Age :	23.11.1978
Name :	Mr. Deepali Mittal
Designation :	Partner
Address :	7-2-53, Bhoktapur, Adilabad, Andhra Pradesh, India
Date of Birth/Age :	04.06.1983
Name :	Mr. Akbar Lalani
Designation :	Partner
Address :	H. No.1-4.455, Khoja colony, Adilabad, Andhra Pradesh, India
Name :	Mr. Amit Lalani
Designation :	Partner
Address :	H. No.1-4.455, Khoja colony, Adilabad, Andhra Pradesh, India

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of cotton.
Imports :
Products :	Crescent steel and Allied Product
Countries :	Pakistan
Terms :
Selling :	L/C / Sight
Purchasing :	Cash

PRODUCTION STATUS (31.03.2011)

Particulars	Actual Production
F.P COTTON Bales	300 Per day

GENERAL INFORMATION

Suppliers :

· Koushik Apparel Private Limited

· Plastiblends India Private Limited

· Raghunath Agrotech Private Limited

· Sri Srinivas Oil Industries

· Ishwar Trading company, Akola

Customers :

Wholesaler, Importer

· The cotton corporation of India Limited

· Nahar Industrial Enterprises Limited

· Nahar spinning Mills Limited

· Radhe Agro Industries

· The Cotton Corporation of India Limited

· Jadhao Gears Private Limited

No. of Employees :

10 (Approximately) (In Office -2, In Factory -8)

Bankers :

Andhra Bank, GMR Towers, Cinema Road, Adilabad, Andhra Pradesh, India

Facilities :

Credit Limit – Rs.50.000 millions

SECURED LOAN	As on 31.03.2011 (Rs. in Millions)
Andhra Bank Term loan A/c. 25237	18.421
Andhra Bank CC A/C. No.22319	49.001
Total	67.422
UNSECURED LOAN	As on 31.03.2011 (Rs. in Millions)
Sri saibaba Cotton Industries, Adilabad	3.265
Sri saibaba Gining Presing Factory, Adilabad	0.500
Total	3.765

Banking Relations :	--
Auditors :
Name :	MKA Associate Chartered Accountant
Address :	Dwarka Nagar, Adilabad, Andhra Pradesh, India
Tel. No.:	91-8732-232220
E-Mail :	smtulsynco@yahoo.co.in
Sister concern :	· Raghunath Agrotech Private Limited Address: D.No. 7-2-53/5, N.H. No.7, Adilabad, Andhra Pradesh, India · Shri Mukhi Industries Address: Kannepally village, Dandapally Mandal, Cross Road, Adilabad, Andhra Pradesh, India

CAPITAL STRUCTURE

As on 31.03.2011

Sri. Raghunath Mittal (10%)

Particulars	Rs. In millions	Particular	Rs. In millions
To TDS	0.003	By Credit Profit for the Years	2.900 0.032
Balance C/d	2.928
Total	2.931	Total	2.931

Sri. Janak Kumar Garg (15%)

Particulars	Rs. In millions	Particular	Rs. In millions
To TDS	0.005	By Credit Profit for the Years	1.700 0.048
Balance C/d	1.743
Total	1.748	Total	1.748

Sri. Rohit Kumar Goyal (15%)

Particulars	Rs. In millions	Particular	Rs. In millions
To TDS	0.005	By Credit Profit for the Years	1.500 0.048
Balance C/d	1.543
Total	1.548	Total	1.548

Sri. Smt. Deepali Mittal (15%)

Particulars	Rs. In millions	Particular	Rs. In millions
To TDS	0.005	By Credit Profit for the Years	2.400 0.048
Balance C/d	2.443
Total	2.448	Total	2.448

Sri. Raghunath Mittal (15%)

Particulars	Rs. In millions	Particular	Rs. In millions
To TDS	0.003	By Credit Profit for the Years	2.900 0.032
Balance C/d	2.928
Total	2.931	Total	2.931

Sri. Aarthi Devi Mittal (15%)

Particulars	Amount	Particular	Amount
To TDS	0.005	By Credit Profit for the Years	5.700 0.048
Balance C/d	5.743
Total	5.748	Total	5.748

Sri Akabar Lalani (15%)

Particulars	Amount	Particular	Amount
To TDS	0.005	By Credit Profit for the Years	1.650 0.048
Balance C/d	1.693
Total	1.698	Total	1.698

Sri Amit Lalani (15%)

Particulars	Amount	Particular	Amount
To TDS	0.005	By Credit Profit for the Years	1.650 0.048
Balance C/d	1.693
Total	1.698	Total	1.698

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		17.789
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		17.789
LOAN FUNDS
1] Secured Loans		67.422
2] Unsecured Loans		3.765
TOTAL BORROWING		71.187
DEFERRED TAX LIABILITIES		0.000
TOTAL		88.976
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		31.002
Capital work-in-progress		0.686
INVESTMENT		0.120
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	64.731
	Sundry Debtors	4.344
	Cash & Bank Balances	0.967
	Other Current Assets	0.000
	Loans & Advances	1.839
Total Current Assets		71.881
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	14.390
	Payables and Provisions	0.323
Total Current Liabilities		14.713
Net Current Assets		57.168
MISCELLANEOUS EXPENSES		0.000
TOTAL		88.976

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011
	SALES
		Income	102.696
		Other Income	1.400
		TOTAL (A)	104.096
Less	EXPENSES
		Cost of Goods Sold	95.117
		Direct Expenses	3.910
		Administrative Expenses	3.357
		TOTAL (B)	102.384
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.712
Less/ Add	DEPRECIATION/ AMORTISATION		1.394
	NET PROFIT		0.318

The above information has been parted by Mr. Kiran Prasad.

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry Records.

KEY RATIOS

PARTICULARS		31.03.2011
PAT / Total Income	(%)	0.31
Net Profit Margin (PBT/Sales)	(%)	0.31
Return on Total Assets (PBT/Total Assets}	(%)	0.31
Return on Investment (ROI) (PBT/Networth)		0.02
Debt Equity Ratio (Total Liability/Networth)		4.83
Current Ratio (Current Asset/Current Liability)		4.89

LOCAL AGENCY FURTHER INFORMATION

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	No
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last two years	Yes
12) Profitability for last one 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	No
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
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	No
29) Last accounts filed at ROC	No
30) Major Shareholders, if available	No

TRADE REFERENCE

· Mahima Purespun, Pithampur

· Sitaram Spinners Private Limited, Medak, Andhra Pradesh

· Sri Saibaba cotton Industries, Adilabad

· Sanskar Agro Processor, Private Limited

FIXED ASSETS

· Land and Buildings

· Plat and Machinery

· Vehicles

· Electrical 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.56.29
UK Pound	1	Rs.88.26
Euro	1	Rs.70.82

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	DPK

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	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		41

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.