MIRA INFORM REPORT

Report Date :

29.04.2013

IDENTIFICATION DETAILS

Name :	DAYAL COTSPIN LIMITED
Registered Office :	New Radhakishan Plots, Opposite Government Medical College, Akola-444001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.07.2006
Com. Reg. No.:	11-162949
Capital Investment / Paid-up Capital :	Rs. 5.250 millions
CIN No.: [Company Identification No.]	U17299MH2006PLC162949
TAN No.: [Tax Deduction & Collection Account No.]	NGPD03573D
PAN No.: [Permanent Account No.]	AACCD4041K
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer and Spinner of Cotton Yarn.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 140000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Latest financials are not available. As per previous year financials, it seems that the profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments terms are unknown. 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	CRISIL
Rating	Cash Credit: BB –
Rating Explanation	Moderate risk of default
Date	19.03.2013

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 :	New Radhakishan Plots, Opposite Government Medical College, Akola-444001, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	companyclient007@gmail.com pawan.bachhuka@gmail.com ram_thakkar@rediffmail.com

DIRECTORS

As on 30.09.2011

Name :	Mr. Vinaykant Vishwanath Bachhuka
Designation :	Director
Address :	New Radhakisan Plots, Akola, Maharashtra, India
Date of Birth/Age :	29.01.1980
Date of Appointment :	30.09.2009
DIN No.:	00872786
Name :	Mr. Pavankumar Jagdishprasad Bachhuka
Designation :	Director
Address :	New Radhakisan Plots, Akola, Maharashtra, India
Date of Birth/Age :	23.10.1968
Date of Appointment :	03.07.2006
DIN No.:	00872784
Name :	Mr. Manishkumar Vasantkumar Bachhuka
Designation :	Director
Address :	New Radhakisan Plots, Akola, Maharashtra, India
Date of Birth/Age :	19.07.1976
Date of Appointment :	30.09.2009
DIN No.:	00872785

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Vasantkumar Prabhudayal Bachhuka	34200
Bharatkumar Jadishprasad Bachhuka	60000
Pavankumar Jadishprasad Bachhuka	50800
Vinaykant Vishwanath Bachhuka	60000
Pankaj Vasantkumar Bachhuka	47500
Manishkumar Vasantkumar Bachhuka	60000
Kishor Vishwanath Bachhuka	47500
Mangala Bharatkumar Bachhuka	25000
Uma Pavankumar Bachhuka	40000
Reena Manishkumar Bachhuka	25000
Swati Vinaykant Bachhuka	25000
Saakshi Kishor Bachhuka	25000
Rashi Pankaj Bachhuka	25000
Total	525000

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

Allottees as on 31.03.2012

Names of Allottees	No. of Shares
Prabhav Industries Limited, India	25000
Secundrabad Healthcare Limited, India	25000
Total	50000

Allottees as on 09.01.2012

Names of Allottees	No. of Shares
ACIL Cotton Industries Limited, India	15000
Alpha Graphics India Limited, India	25000
Total	40000

BUSINESS DETAILS

Line of Business :	Manufacturer and Spinner of Cotton Yarn.
Products :	Cotton Seed Cotton Bales

GENERAL INFORMATION

Suppliers :

• Swastik Ginning and Pressing Industries
• Manjeet Cotton Private Limited
• Babulal Joshi Cotton Private Limited
• Ishwar Trading Company
• Jain Canvassing Company, Akola
• Messrs Dalmia Brothers
• Shree Bhagwati Brokers
• Shru Amba Bokers, Amravati
• Shri Arihant Traders
• Kodakandla Sadanandam Trading Company

Customers :

• Abhishek Industries Limited
• Jagdamba Cotton Kalamb
• Avinash Traders
• Kamle Dairy Farm
• Pankaj Trading Company
• Shree Ram Provision Stores
• Dayal Agro Products Limited
• Shakambari Traders
• Sai Trading Company
• Sainath Traders

No. of Employees :

Not Available

Bankers :

• Bank of Baroda Thruogh Akola Branch, Akola - 444001, Maharashtra, India

· State Bank of India Through Old City Branch Akola, Central Office At Madam Cama Road, Mumbai - 400021, Maharashtra, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
State Bank of India – 30115796576	17.444	15.300
State Bank of India – Term Loan	10.125	12.977
Total	27.569	28.277

Note

Cash Credit facilities are secured by hypothecation of Stocks and Book Debts and the term loan is secured by an equitable mortgage of the fixed assets of the company

Banking Relations :	--
Auditors :
Name :	R M Gupta and Associates Chartered Accountants
Address :	Kirana Bazar, Akola-444001, Maharashtra, India
PAN No.:	ABZPG6562B
Associates :	Dayal Cotton Mills Limited Dayal Energy and Proteins Limited Dayal Agro Products Limited Dayal Industries Bachhuka Brothers

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
525000	Equity Shares	Rs.10/- each	Rs. 5.250 Millions

After 30.09.2011

Authorised Capital : Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 5.500 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		5.250	5.250	5.250
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		30.689	28.948	28.433
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		35.939	34.198	33.683
LOAN FUNDS
1] Secured Loans		27.569	28.277	31.615
2] Unsecured Loans		24.671	0.001	1.294
TOTAL BORROWING		52.240	28.278	32.909
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		88.179	62.476	66.592
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		51.614	41.086	39.707
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.889	0.740	1.211
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	140.743	76.035	3.356
	Sundry Debtors	50.638	16.469	22.800
	Cash & Bank Balances	2.614	0.311	0.485
	Other Current Assets	0.846	0.808	1.033
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		194.841	93.623	27.674
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	154.825	70.578	1.524
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	4.340	2.435	0.557
Total Current Liabilities		159.165	73.013	2.081
Net Current Assets		35.676	20.610	25.593
MISCELLANEOUS EXPENSES		0.000	0.040	0.081
TOTAL		88.179	62.476	66.592

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	680.402	417.638	136.054
		Other Income	0.508	3.475	8.854
		TOTAL (A)	680.910	421.113	144.908
Less	EXPENSES
		Cost of Goods Sold	663.124	413.757	135.877
		Sales and Administrative expenses	5.609	1.230	1.498
		Preliminary Expenses Written off	0.040	0.040	0.040
		FBT	0.000	0.000	0.026
		TOTAL (B)	668.773	415.027	137.441
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12.137	6.086	7.467
Less	FINANCIAL EXPENSES (D)		3.835	3.282	4.439
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.302	2.804	3.028
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.782	1.917	2.363
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		2.520	0.887	0.665
Less	TAX (H)		2.346	0.372	0.276
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		0.174	0.515	0.389
	Earnings / (Loss) Per Share (Rs.)		3.57	1.06	0.74

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.03	0.12	0.00
Net Profit Margin (PBT/Sales)	(%)	0.37	0.21	0.49
Return on Total Assets (PBT/Total Assets}	(%)	1.02	0.66	0.99
Return on Investment (ROI) (PBT/Networth)		0.07	0.03	0.02
Debt Equity Ratio (Total Debt/Networth)		1.45	0.83	0.98
Current Ratio (Current Asset/Current Liability)		1.22	1.28	13.30

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	Yes
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	No
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	Yes

UNSECURED LOAN

Particulars	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. In Millions)
Unsecured Loans	24.671	0.001
Total	24.671	0.001

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17299MH2006PLC162949
Name of the company	DAYAL COTSPIN LIMITED
Address of the registered office or of the principal place of business in India of the company	New Radhakishan Plots, Opposite Government Medical College, Akola-444001, Maharashtra, India E-mail: companyclient007@gmail.com
This form is for	Creation of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge Others (Plant and machinery)
Particular of charge holder	Bank of Baroda Thruogh Akola Branch, Akola - 444001, Maharashtra, India E-mail: akola@bankofbaroda.com
Nature of instrument creating charge	1. Indenture of Mortgage
Date of instrument Creating the charge	20.12.2012
Amount secured by the charge	Rs. 200.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base rate+1.50% i.e. 12%P.A. presently with monthly rests. subject to change in Base rate/scheme and/ or Credit rating/ of the Company from time to time. Terms of Repayment cash credit is repayable on demand and term of loan12 Months Margin Stock and Book Debts:- 25% Extent and Operation of the charge The charge extend to loan amount together with interest, charge, commission etc and operates on movable and immovable properties. Others Dayal Cotspin Limited is taking cash credit limit for which its own immovable and movable properties mortgages further Dayal Cotton Mills Limited is providing properties and giving guarantee for said loan.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First Charge by way of Equitable Mortgage of Land and Building situate at GUT No. 320/2, 320/3, Mauje-Wanjari, Tq. Wani, Nandipura Road, Yavatmal Adm 2 Hec 75 R (6.78 Acres) in the name of Dayal Cotspin Limited. First charge by way of Equitble Mortgage of Land and Building situate at GUT No. 443 Ralegaon Road, Kalamb Yavatmal Adm 2 Hec. 80 R in the name of M/s. Dayal Cotton Mills Limited First charge by way of Equitable Mortgage of Land and Building situate at GUT no. 207, Babhulgaon, Akola Adm 16187.50 Sqm in the name of M/s Dayal Cotton Mills Limited, First Charge by way Hypothecation Plant and Machinery Installed at GUT No. 320/2, 320/3, Mauja-Wanjari, Tq. Wani, Nandipura Road, Yavatmal in the name of M/s Dayal Cotspin Limited. First Charge by way of Hypothecation of Plant and Machinery installed at GUt No. 443 Ralegaon Road, Kalamb Yavatmal in the name of M/s Dayal Cotton Mills Limited First Chage by the way of Hypothecation of Plant and Machinery installed at Gut No. 207, Babulgaon, Akola in the name of Dayal Cotton Mills Limited Movable properties of Dayal Cotspin Limited: movable machineries, equipment, fixtures and fittings, spares, tools, accessories, vehincles other movable(present and future), all stock of raw material finished and semi finished goods, work in process, all book debts, receivables both present and future and tangible windmill.

CONTINGENT LIABILITIES:

The company has issued guarantee in favour of Axis Bank against the loan borrowed by the three third party. The total amount outstanding as on 31^st March 2011 is Rs. 49.724 Millions. The Board is confident that the concerned parties will discharge their liabilities therefore no provision has been made in the books.

FIXED ASSETS

• Land
• Building
• Plant and Machinery
• Furniture
• Refrigerator
• Electric Installation
• Electric Installation WIP
• WIP (Building)
• Plant and Building WIP

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.54.29
UK Pound	1	Rs.83.88
Euro	1	Rs.70.68

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.