MIRA INFORM REPORT

Report Date :

18.04.2013

IDENTIFICATION DETAILS

Name :	ABHAY COTEX PRIVATE LIMITED
Registered Office :	31, New Gud Market, New Mondha, Near Bus Stand, Jalna – 431203, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	15.05.2008
Com. Reg. No.:	11-182247
Capital Investment / Paid-up Capital :	Rs.182.693 Millions
CIN No.: [Company Identification No.]	U17121MH2008PTC182247
PAN No.: [Permanent Account No.]	AAHCA0503A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton Seed Meal, Cotton Seed Oil, Cotton Seed Linters, Cotton Seed Hulls
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 1800000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company’s performance capability and financial position of the company seems to be moderate. However, trade relations are reported as fair. Business is active. Payments are reported to be 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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	LONG TERM BANK FACILITIES : CARE BB-
Rating Explanation	Moderate risk of default
Date	22^nd January 2013

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 :	31, New Gud Market, New Mondha, Near Bus Stand, Jalna – 431203, Maharashtra, India
Tel. No.:	91-2482-230539 / 237939
Fax No.:	91-2482-237752
E-Mail :	acpl.jalna@gmail.com info@abhaycotex.com
Website :	http://www.abhaycotex.com
Unit 1 :	Gut No - 84, Gundewadi, Bhokardan Road, Jalna - 431203, Maharashtra, India
Tel. No.:	91-2482-230539 / 229308
Fax No.:	91-2482-229306
E-Mail :	krishimantri@gmail.com
Unit 2 :	Mfg: Vaibhav Cattle Feed Plant Nephti, Kedgaon-Kalyan bypass, Ahmednagar, Maharashtra, India
E-Mail :	krishimantri@gmail.com dipesh.p@abhaycotex.com
Unit 3 :	Naradana MIDC Industrial Area, Phase 2, MIDC Plot No. T-3, Bhabale Village, TQ-Sindkhed, District – Dhule; Maharashtra – India
E-Mail :	ashish.m@abhaycotex.com

DIRECTORS

As on 27.08.2012

Name :	Mr. Ashish Omprakash Mantri
Designation :	Director
Address :	R. P. Road, Badi Sadak, Jalna – 431203, Maharashtra, India
Date of Birth/Age :	03.03.1975
Date of Appointment :	15.05.2008
PAN No.:	AAXPM9270F
DIN No.:	00982373
Name :	Mr. Ramprasad Laxminarayan Soni
Designation :	Additional Director
Address :	619/620, Soni Niwas, Main Road, Gevrai – 431127, Maharashtra, India
Date of Birth/Age :	01.11.1963
Date of Appointment :	02.06.2012
DIN No.:	02090167
Name :	Mr. Kachrulal Kapoorchand Patni
Designation :	Director
Address :	Old Mondha, Jalna - 431203, Maharashtra, India
Date of Birth/Age :	14.02.1972
Date of Appointment :	11.10.2010
PAN No.:	ABPPP7488B
DIN No.:	03111372
Name :	Mr. Anjaneya Prasad Dodda
Designation :	Director
Address :	667, Blue Square Apartment, 1st Floor, School Road, Anna Nagar, West Extension Chennai – 600101, Tamilnadu, India
Date of Birth/Age :	16.09.1961
Date of Appointment :	11.10.2010
PAN No.:	AAFPP1946E
DIN No.:	03140435

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.08.2012

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 27.08.2012

Category	Percentage
Bodies corporate	63.00
Directors or relatives of directors	37.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Seed Meal, Cotton Seed Oil, Cotton Seed Linters, Cotton Seed Hulls

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Crushing of Edible Oil Seeds	MT	180000	180000	54073

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Industrial Finance Branch, Jaggi's Building, Jalna Road, Kranti Chowk, Aurangabad – 431001, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Rupee Term Loans from Banks (Secured by way of pari passu charge on land and building, plant and machineries, other equipments etc and personal guarantee by all the directors and third party.)	148.888	126.240
Intercorporate Borrowings Secured by way of pari passu charge on land and building, plant and machineries, other equipments etc and personal guarantee by all the directors and third party.)	49.835	0.000
Loans taken for vehicles (Hypothecated by Vehicle)	0.067	3.195
Working Capital Loans from Banks	169.339	73.192
Other Loans and Advances	40.697	14.252
Total	408.826	216.879

Banking Relations :	--
Auditors :
Name :	CNA and Associates Chartered Accountants
Address :	Flat No.2, Shakuntals Flat No.2, Shakuntals, Near Utsav Mangal Karyalaya, Osmanpura, Aurangabad - 431001, Maharashtra, India
PAN No.:	AASPB6929K
Related Parties :	· Vrishabh Cotton Private Limited CIN No.: U17233MH2007PTC171768 · Bhakti Extractions Private Limited CIN No.: U15143MH2004PTC146230 · Geeta Refinery Private Limited CIN No.: U51410MH1998PTC116338

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions
1300000	Preference Shares	Rs.100/- each	Rs.130.000 Millions
	Total		Rs.190.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5269282	Equity Shares	Rs.10/- each	Rs.52.693 Millions
1300000	Preference Shares	Rs.100/- each	Rs.130.000 Millions
	Total		Rs.182.693 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		182.693	46.443	31.500
2] Share Application Money		0.000	0.000	7.100
3] Reserves & Surplus		264.588	145.415	59.800
4] (Accumulated Losses)		0.000	0.000	(1.794)
NETWORTH		447.281	191.858	96.606
LOAN FUNDS
1] Secured Loans		408.826	216.879	178.833
2] Unsecured Loans		100.053	76.142	30.278
TOTAL BORROWING		508.879	293.021	209.111
DEFERRED TAX LIABILITIES		27.545	23.780	0.000
TOTAL		983.705	508.659	305.717
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		366.713	367.000	251.183
Capital work-in-progress		463.791	0.844	3.018
INVESTMENT		5.010	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.917
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	201.521	113.145	50.985
	Sundry Debtors	72.591	96.096	40.803
	Cash & Bank Balances	14.356	6.006	5.986
	Other Current Assets	64.881	46.029	1.365
	Loans & Advances	5.179	0.281	10.330
Total Current Assets		358.528	261.557	109.469
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	129.228	94.957	50.024
	Other Current Liabilities	74.665	8.181	9.098
	Provisions	6.444	17.604	0.000
Total Current Liabilities		210.337	120.742	59.122
Net Current Assets		148.191	140.815	50.347
MISCELLANEOUS EXPENSES		0.000	0.000	0.252
TOTAL		983.705	508.659	305.717

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1195.814	924.089	221.900
		Other Income
		TOTAL (A)	1195.814	924.089	221.900
Less	EXPENSES
		Office Expenses	1120.982	786.345	212.900
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	1120.982	786.345	212.900
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		74.832	137.744	9.000
Less	FINANCIAL EXPENSES (D)		45.594	32.402	8.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		29.238	105.342	0.400
Less/ Add	DEPRECIATION/ AMORTISATION (F)		23.216	18.942	3.100
	PROFIT BEFORE TAX (E-F) (G)		6.022	86.400	(2.700)
Less	TAX (H)		6.778	41.926	(0.900)
	PROFIT AFTER TAX (G-H) (I)		(0.756)	44.474	(1.800)
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		42.680	(1.794)	0.000
	APPROPRIATIONS
		Dividend	3.415	0.000
		Tax on Dividend	0.554	0.000
	BALANCE CARRIED TO THE B/S		37.955	42.680	(1.800)
	EARNINGS IN FOREIGN CURRENCY
		Cotton De-oil Cake	NA	164.357	NA
		Cotton Feed Hulls		38.587
		Cotton Lint		112.078
	TOTAL EARNINGS		NA	315.022	NA
	IMPORTS
		Capital Goods	NA	1.724	NA
	TOTAL IMPORTS		NA	1.724	NA
	Earnings Per Share (Rs.)		(0.14)	12.82	(0.72)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(0.06)	4.81	(0.81)
Return on Total Assets (PBT/Total Assets}	(%)	0.83	13.75	(0.75)
Return on Investment (ROI) (PBT/Networth)		0.01	0.45	(0.03)
Debt Equity Ratio (Total Debt/Networth)		1.14	1.53	2.16
Current Ratio (Current Asset/Current Liability)		1.70	2.17	1.85

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	Yes
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

DETAILS OF UNSECURED LOAN

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
Loans and Advances from Related Parties	21.373	1.101
Other Loans and Advances	78.680	75.041
Total	100.053	76.142

FINANCIALS RESULTS:

During the year, the financial performance of the company has shown only a slight increase in the growth in turnover by 30 % as compared to previous year. The company has a turnover of Rs.1195.814 Millions in which Exports are Rs.373.000 Millions that has increased by 18 % times YoY and the cash Profit earned by the company during the year is Rs.29.237 Millions.

They are hopeful that the company will achieve new heights in the coming future years as another plant of the company at Dhulia will be operational form mid of this year.

Business related activity

The company has implemented a single stage Cottonseed Extraction (SSCSE) Followed by Online Miscella refinery technology having a capacity of 600 MTPD.

Subject has awarded with MEGA PROJECT STATUS by Maharashtra State Government, enjoying various “Package Scheme of Incentives-2007” (PSI)

Subject has applied for the 3 no’s of process patent in India & it has published in ‘The Patent Office Journal’ Dated 18/03/2011.

Subject has moved ahead & applied for the Process patent in Pakistan as well.

Further subject has plans to set up one more cottonseed processing plant with a capacity of 600 TPD using its patented technology along with integrated refinery unit. It has already obtained the Mega Project status for this project. For this purpose the promoters have raised funds by way of a stake sale and term loans. The project has been appraised by the CSIR body advocating larger benefit of this technology to the nation.

FUTURE OUTLOOK:

The company seeks to expand its business and sell its technology by carrying out business of extraction of Solvent edible cotton oil which has a huge demand in the oil industry.

A globally Competitive INDIA Focused company, with leadership in cottonseed processing business, providing Value Added Quality Cotton Products ( Cotton Oil, Meal, Hulls, Linters, De Gossypolised cotton Meal) to the delight of our customer and share holders.

Further subject has plans to set up two more cottonseed processing plant with a capacity of 600 TPD at Dhulia and Yevatmal using its patented technology along with integrated refinery unit. Both units have already obtained the MEGA PROJECT STATUS by Maharashtra State Government. The Dhulia Project would be operational from current year 2012-13 and the allotment letter for the Yevatmal Land has been issued by MIDC in the name of the company.

The subject mission will to build and Process 20% of the Indian Cotton Seed production by 2015.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17121MH2008PTC182247
Name of the company	ABHAY COTEX PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	31, New Gud Market, New Mondha, Near Bus Stand, Jalna – 431203, Maharashtra, India E-mail Id : acpl.jalna@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10133690
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge Others (Personal Guarantees)
Particular of charge holder	State Bank of India, Industrial Finance Branch, Jaggi's Building, Jalna Road, Kranti Chowk, Aurangabad – 431001, Maharashtra, India E-Mail Id : kamlakar.pathak@sbi.co.in
Nature of instrument creating charge	1. Letter of arrangement 2. Guarantee Agreement 3. Supplemental Agreement of Loan Cum Hypothecation 4. Revival Letter
Date of instrument Creating the charge	03.04.2013
Amount secured by the charge	Rs.785.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest DCC - Int @4.50% margin above the base rate 9.70% p.a. Present Effective rate - 14.20% p.a. with monthly rests TL - Int @4.70% margin above base rate Present Eff. Rate 14.40% p.a. with monthly rests Terms of Repayment DCC - repayable on Demand New Term Loan - Repayment in 72 Monthly Installments with 6 month moratorium Margin Raw materials : Imported - 25%, Raw Materials - Indigenous : 25%, Semi finished goods- 35%, finished goods- 35%, Components / consumables /spares - 35%, Domestic recivables - 40%, Bank guarantees -25% Extent and Operation of the charge Exclusive first charge on fixed and current assets of the company Others Personal guarantees of Mr. Ashish O Mantri, Mr. Atul O Mantri, Mr. Pradeep B Totla, Mrs. Pramila O Mantri, Mr. Omprakash Mantri, Mr. Vijayprakash A Mantri, Mr. Nileshkumar K Patni, Mr. Dipesh Z Patni, Mr. Kachrulal K Patni Corporate guarantee of Geeta Refinery Private Limited
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of stocks and book debts and other current assets, and Plant and machinery and mortgage of land and building situated at G No 84 at Gundewadi Jalna adm 5H82R owned by Company and at Dhulia or MTL - III - Hypothecation of Plant and machinery and other assets purchased and extension of registered mortgage of land and building situated at Plot No T-9, Nardhana Industrial Area, Sindkheda District Dhulia and adm 99971 sq mtrs owned by company with pari passu charge with DBT /BIPP to the extent of Rs 10 crores only For MTL -New - Hypothecation of plant and machinery and other assets purchased out of bank finance owned by Company Extension of registered mortgage of factory land and building situated at G No 84, Gundewadi tq District Jalna adm 5 H 82 R owned by company to be covered separately Extension of mortgage of various properties to be covered separately Corporate guarantee of Geeta Refinery Private Limited
Date of instrument modifying the charge	28.11.2011
Particulars of the present modification	Enhancement in Overall Limit from Rs.653.000 Millions to Rs.785.000 Millions by increase in Cash Credit Limit of Rs.80.000 Millions, increase in BG Limit of Rs.0.020 Million, grant of New Term Loan of Rs.50.000 Millions

FIXED ASSETS:

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Computer Equipments

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.53.94
UK Pound	1	Rs.82.77
Euro	1	Rs.71.05

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

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.