MIRA INFORM REPORT

Report Date :

17.04.2013

IDENTIFICATION DETAILS

Name :	DHARMDEEP COMMODITIES PRIVATE LIMITED
Registered Office :	Anmol Business Colony, Office No.301 -306,3rd Floor Opposite Neeldeep Complex, Darpan Six Roads, Navrangpura, Ahmedabad – 380009, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	31.10.2011
Com. Reg. No.:	04-067677
Capital Investment / Paid-up Capital :	Rs. 4.700 Millions
CIN No.: [Company Identification No.]	U52100GJ2011PTC067677
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Yarns Threads.
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 30000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a relatively new company having a moderate track record. It has achieved sizeable turnover in the first year of operation. There appear huge external borrowings recorded by the company. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some caution.

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 :	Anmol Business Colony, Office No.301 - 306,3rd Floor Opposite Neeldeep Complex, Darpan Six Roads, Navrangpura, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26404061
Fax No.:	91-79-26404063
E-Mail :	kiritkc@yahoo.in cotton@dpcotton.com docotton@vsnl.net
Website :	http://www.dpcotton.com
Head Office :	1, Aashiyana Apartments, Operative Cadila House, Near Ganesh Plaza, Navrangpura, Ahmedabad-380009, Gujarat, India
Tel. No.:	91-79- 26404061-2-3
Fax No.:	91-79-26404063
Branch Office 1 :	1,Panchnath Complex, Limda Chowk, Rajkot- 360001, Gujarat, India
Tel. No.:	91-281-2241043
Branch Office 2 :	Bunglow No 114, Survey No. 68, Near Disha Nabhangana, Sant Tukoba Nagar, N-2, CIDCO, Aurangabad, Gujarat, India
Tel. No.:	91-240-2484241

DIRECTORS

As on 29.09.2012

Name :	Mr. Sandipkumar Pukhraj Jain
Designation :	Director
Address :	4, Nalanda Co-Operative Housing Society, Near Naranpura Rly Crossing, Naranpura, Ahmedabad – 380013, Gujarat, India
Date of Birth/Age :	09.12.1975
Date of Appointment :	31.10.2011
DIN No.:	03645318
Name :	Dharmendra Pukhraj Jain
Designation :	Director
Address :	4, Nalanda Co-Operative Housing Society, Near Naranpura Rly Crossing, Naranpura, Ahmedabad – 380013, Gujarat, India
Date of Birth/Age :	14.08.1970
Date of Appointment :	31.10.2011
DIN No.:	03645314
Name :	Mr. Pukhraj Somchand Jain
Designation :	Director
Address :	Magalam, 4, Nalanda Co-Operative Housing Society, Near Naranpura Rly Crossing, Naranpura, Ahmedabad – 380013, Gujarat, India
Date of Birth/Age :	14.02.1944
Date of Appointment :	31.10.2011
DIN No.:	03645323

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
P.S. Jain	100000
D.P. Jain	100000
S.P. Jain	100000
M.P. Jain	50000
N. D. Jain	50000
S.S. Jain	50000
Dharmendra Pukhraj, India	10000
Sandipkumar Dharmendrakumar, India	10000
Total	470000

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 Yarns Threads.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Tamilnad Mercantile Bank Limited, 1B, Wall Stree-1, First Floor, Opposite Orient Club Ellisbridge, Ahmedabad - 380006, Gujarat, India

· Kotak Mahindra Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

SHORT TERM BORROWINGS

Overdraft

28.668

PCFC

40.669

Total

69.337

Details of Security for the secured short-term borrowings

Particular	Nature of security
Borrowings from Bank
Kotak Mahindra Bank Limited – Overdraft facility and PCFC	Primarily secured against all existing and future current assets, backed by collateral security in the form of mortgage of premises held at GF-2 Pinnacle Building, Satellite, Ahmedabad
PCFC	Fixed deposit as liquid collateral and leined in favour of Bank as 15% cash margin.

Details of short term borrowings guaranteed by some of the directors or others.

Particular	Rs, In Millions
Secured Loan from Bank	69.337

Banking Relations :	--
Auditors :
Name :	Hiten V Shah and Company Chartered Accountants
Address :	201, Smit Complex, Choice Lane, C.G. Road, Ahmedabad – 380009, Gujarat, India
PAN.:	AACFH0135K
Enterprise in which KMP / Relatives of KMP has significant influence :	· Dharmendra Pukhraj · Sandipkumar Dharmendrakumar

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
47000	Equity Shares	Rs.10/- each	Rs.0.470 Million

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
470000	Equity Shares	Rs.10/- each	Rs.4.700 Millions

Reconciliation of Shares

Particular	Opening Balance	Fresh Issue	Closing Balance
Equity Shares with voting right
Year ended 31 march, 2012
Number of Shares	--	470000	470000
Rs. In Millions	--	4.700	4.700

Details of shares held by each shareholder holding more than 5% shares:

Name of Shareholders	Number of Share Held	% holding in that class of shares
P.S. Jain	100000	21.28%
D.P. Jain	100000	21.28%
S.P. Jain	100000	21.28%
M.P. Jain	50000	10.64%
N. D. Jain	50000	10.64%
S.S. Jain	50000	10.64%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012
SHAREHOLDERS FUNDS
1] Share Capital		4.700
2] Share Application Money		0.000
3] Reserves & Surplus		2.808
4] (Accumulated Losses)		0.000
NETWORTH		7.508
LOAN FUNDS
1] Secured Loans		69.337
2] Unsecured Loans		7.595
TOTAL BORROWING		76.932
DEFERRED TAX LIABILITIES		0.196
TOTAL		84.636
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.247
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	42.794
	Cash & Bank Balances	6.063
	Other Current Assets	3.048
	Loans & Advances	20.556
Total Current Assets		72.461
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.116
	Other Current Liabilities	0.098
	Provisions	1.858
Total Current Liabilities		2.072
Net Current Assets		70.389
MISCELLANEOUS EXPENSES		0.000
TOTAL		84.636

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012
	SALES
		Income	181.690
		Other Income	0.073
		TOTAL	181.763
Less	EXPENSES
		Office Expenses
		Administrative Expenses	NA
		Advertising Expenses
		TOTAL	NA
	PROFIT BEFORE TAX		NA
Less	TAX		NA
	PROFIT AFTER TAX		2.808
	Earnings Per Share (Rs.)		5.97

KEY RATIOS

PARTICULARS		31.03.2012
PAT / Total Income	(%)	1.54
Return on Total Assets (PBT/Total Assets}	(%)	NA
Return on Investment (ROI) (PBT/Networth)		NA
Debt Equity Ratio (Total Debt /Networth)		10.25
Current Ratio (Current Asset/Current Liability)		34.97

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 one year	Yes
12]	Profitability for last one year	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

FINANCIAL RESULTS:

During the period under audit the company has achieved turnover of Rs.179.300 Millions and Net Profits after tax for the year is Rs.2.808 Millions. The company is hopeful for better results in the next year.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2012
SHORT TERM BORROWINGS
Balance in current account	0.033
Loans and advances from related parties	7.562
Total	7.595

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U52100GJ2011PTC067677
Name of the company	DHARMDEEP COMMODITIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Anmol Business Colony, Office No.301 -306,3rd Floor Opposite Neeldeep Complex, Darpan Six Roads, Navrangpura, Ahmedabad – 380009, Gujarat, India kiritkc@yahoo.in
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	Tamilnad Mercantile Bank Limited, 1B, Wall Stree-1, First Floor, Opposite Orient Club Ellisbridge, Ahmedabad - 380006, Gujarat, India ahmedabad@tnmbonline.com
Nature of instrument creating charge	Foreign bill negotiation, seasonal foreign bill negotiation, negotiation or purchase of bills expressed in Foreign currencies or Indian rupees and letter of hypothecation of book-debts
Date of instrument Creating the charge	11.02.2013
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 BR Presently 10.75 valid upto 31.12.2013 Terms of Repayment FBN - 1 Year Seasonal FBN - 8 Months (Oct - May) Extent and Operation of the charge Aggregate limit of Rs. 500.000 Millions will be as under: Foreign bill Negotiation under LC - Rs. 150.000 Millions Seasonal Foreign bill Negotiation under LC - Rs. 350.000 Millions Sub limit FBN (LC-DP/DA-180 Days Rs. 50.000 Millions) on lien over Bill of Lading/Airways Bill/ Lorry Receipt/ Railway Receipt covering the goods and on hypothecation of export receivables there was no hypothecation of any property, therefore, no any stamp duty applicable.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Discounting from time to time bills of exchange under Foreign bill Negotiation under LC - Rs. 150.000 Millions for one year and discounting from time to time bills of exchange under Seasonal Foreign bill Negotiation under LC - Rs. 350.000 Millions for 8 months (October to May) All the present and future book-debts, outstanding, moneys, receivables, claims, bills, contracts, securities, investments, rights and assets

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 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.54.33
UK Pound	1	Rs.83.17
Euro	1	Rs.71.05

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	3
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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.