MIRA INFORM REPORT

Report Date :

17.09.2012

IDENTIFICATION DETAILS

Name :	GIRIRAJ GINNING AND PRESSING PRIVATE LIMITED
Registered Office :	Survey No 5A, At Hadamtala Talkotda Sangani, District Rajkot - 360001, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.09.1998
Com. Reg. No.:	04-034650
Capital Investment / Paid-up Capital :	Rs. 43.500 Millions
CIN No.: [Company Identification No.]	U17119GJ1998PTC034650
TAN No.: [Tax Deduction & Collection Account No.]	RKTG00319E
PAN No.: [Permanent Account No.]	AABCG3759Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Kapas, Cotton Seed and Cotton Bales
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 360000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small business 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 – 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

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 :	Survey No 5A, At Hadamtala Talkotda Sangani, District Rajkot - 360001, Gujarat, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	hbkalaria@gamil.com
Factory :	Survey No.54, GIDC, Near Shyam Ginning, Gondal, District Rajkot - – 360311, Gujarat, India
Tel. No.:	91-282- 7270455 / 7270555 / 5220971

DIRECTORS

As on 30.09.2011

Name :

Mr. Nareshkumar Girdharlal Lotia

Designation :

Director

Address :

Giriraj Behind Hemugadhavi Hall, 8/4, Indraprashtha Nagar, Rajkot, Gujarat, India

Date of Appointment :

11.09.1998

DIN No.:

00524999

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	U17119GJ1998PTC034650	GIRIRAJ GINNING AND PRESSING PRIVATE LIMITED	Director	11/9/1998	11/9/1998	-	Active	NO
2	U01405GJ2006PTC048831	SHREE GOVARDHAN COT - GIN PRIVATE LIMITED	Director	4/8/2006	4/8/2006	21/07/2008	Active	NO
3	U01405GJ2008PTC054803	GIRIRAJ COT-GIN PRIVATE LIMITED	Director	20/08/2008	20/08/2008	-	Active	NO
4	U17120GJ2010PTC062364	VAIBHAV GINNING AND SPINNING MILL PRIVATE LIMITED	Director	20/09/2010	20/09/2010	-	Active	NO
5	U26914GJ2008PTC053514	KAVAN COTTON PRIVATE LIMITED	Director	1/4/2011	1/4/2011	-	Active	NO
6	U15122GJ2006PTC048458	VAIBHAVLAXMI AGROTECH INDUSTRIES PRIVATE LIMITED	Director	8/8/2011	8/8/2011	26/10/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Nareshkumar Girdharlal Lotia	1493500
Smitaben Nareshkumar Lotiya	1406500
Kinjal Lotia	725000
Avadh Fibers Private Limited, India	725000
Total	4350000

As on 30.09.2011

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 Kapas, Cotton Seed and Cotton Bales

Products :

Description of product or services	ITC number of product
Kapas	101
Cotton Seed	101
Cotton Bales	101

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Actual Production
Cotton Seed	1020912.000
Cotton Bales	5579718.000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of Baroda M. G. Road Branch, Rajkot - 360001, Gujarat, India

· Dena Bank, Jagnath Plot Branch, Rajkot - 360001, Gujarat, India

· Corporation Bank, SSI Branch, JP Tower, Rajkot - 360002, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	1.798	55.074
Working capital loans banks secured	341.842	189.305
Total	343.640	244.379
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans others unsecured	78.008	40.824
Total	78.008	40.824

Banking Relations :	--
Auditors :
Name :	Parekh Nehal Hasmukhbhai Chartered Accountant
Address :	Motivilla', 5- Hansraj Nagar, Behind Gayakwadi Plot, Rajkot – 360001, Gujarat, India
PAN.:	ARYPP8311Q

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital : Rs.115.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.96.670 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4350000	Equity Shares	Rs.10/- each	Rs.43.500 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		43.500	6.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		47.947	45.166	31.973
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		91.447	51.166	36.973
LOAN FUNDS
1] Secured Loans		343.640	244.379	147.108
2] Unsecured Loans		78.008	40.824	40.152
TOTAL BORROWING		421.648	285.203	187.260
DEFERRED TAX LIABILITIES		2.034	2.364	1.924
TOTAL		515.129	338.733	266.157
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		64.295	30.473	32.245
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	252.943	242.726	100.276
	Sundry Debtors	196.209	92.162	142.465
	Cash & Bank Balances	13.401	0.257	0.525
	Other Current Assets	4.262	7.400	0.000
	Loans & Advances	0.000	0.000	6.319
Total Current Assets		466.815	342.545	249.585
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.089	32.475	50.994
	Other Current Liabilities	2.910	0.486	3.279
	Provisions	1.982	1.324	1.400
Total Current Liabilities		15.981	34.285	55.673
Net Current Assets		450.834	308.260	193.912
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		515.129	338.733	266.157

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1749.856	1231.293	1195.948
		Other Income	0.295	0.784	7.071
		TOTAL (A)	1750.151	1232.077	1203.019
Less	EXPENSES
		Increase / (Decrease) in Stock of F.G.		(23.531)	(95.834)
		Raw Material Consumption		1212.210	1271.493
		Manufacturing Expenses		14.242	10.523
		Administrative and Selling Expenses		2.987	2.969
		TOTAL (B)	1741.544	1205.908	1189.151
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(Including Financial Expenses)	26.169	13.868
Less	FINANCIAL EXPENSES (D)			19.702	7.346
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.607	6.467	6.522
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.464	2.497	2.225
	PROFIT BEFORE TAX (E-F) (G)		4.143	3.970	4.297
Less	TAX (H)		1.362	1.277	1.426
	PROFIT AFTER TAX (G-H) (I)		2.781	2.693	2.871
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.966	5.273	2.402
	BALANCE CARRIED TO THE B/S		10.747	7.966	5.273
	Earnings Per Share (Rs.)		0.64	4.76	8.92

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.16	0.22	0.24
Net Profit Margin (PBT/Sales)	(%)	0.24	0.32	0.36
Return on Total Assets (PBT/Total Assets}	(%)	0.78	1.06	1.52
Return on Investment (ROI) (PBT/Networth)		0.05	0.08	0.12
Debt Equity Ratio (Total Liability/Networth)		4.79	6.24	6.57
Current Ratio (Current Asset/Current Liability)		29.21	9.99	4.48

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	Yes
12]	Profitability for last three 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	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	Yes
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	No

REVIEW OF OPERATION

The company has achieved the desired quality of the product. They are confident that due to improvement in the economy they will able to increase their profit.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17119GJ1998PTC034650
Name of the company	GIRIRAJ GINNING AND PRESSING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No 5A, At Hadamtala Talkotda Sangani, District Rajkot - 360001, Gujarat, India hbkalaria@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10352148
Type of charge	· Immovable property · Movable property (not being pledge)
Particular of charge holder	Dena Bank, Jagnath Plot Branch, Rajkot - 360001, Gujarat, India jagnat@denabank.co.in
Nature of instrument creating charge	Instrument relating to deposite of title deeds
Date of instrument Creating the charge	11.05.2012
Amount secured by the charge	Rs.500.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate 12% Terms of Repayment Cash Credit shall be repayable on Demand. Margin On Stock 25% On Book Debts 40%. Extent and Operation of the charge The Charge will be in operation till the entire amount of charge will be repaid.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Immovable Property Consisting of Industrial Factory Shed Situated at Hadamtala Revenue Survey No. 54 and 55 Paikee Industrial Purpose Binkheti Land A 6-35 G Paikee Factory Shed on plot No. 10. (After amalgation of plot No.10/A,10/B,10/C,10/D,11,12,13,14,15,16,17,18,19,20)Land sq.Mts.10519.30 and Road area sq.Mts.1862.25 total Land sq.Mts.12381.55 of Village Hadamtala, Sub District Kotda Sangani, Rajkot
Particulars of the present modification	No change in amount of charge

FIXED ASSETS

· Accent Car

· Air Conditioner

· Building Construction

· Computer

· CCTV

· Electrification

· Fire Safety Systems

· Furniture and Fixture

· Land

· Hundai Car

· Motor Cycle

· Good Carrier (Trucks)

· Plant and Machinery

· Ritz Car

· Scoda Car

· Weigh Bridge

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.54.73
UK Pound	1	Rs.88.61
Euro	1	Rs.71.34

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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		31

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.