MIRA INFORM REPORT

Report Date :

30.08.2013

IDENTIFICATION DETAILS

Name :	C A GALIAKOTWALA AND COMPANY PRIVATE LIMITED
Registered Office :	125, Nagindas Master Road, Fort, Mumbai – 400 023, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	14.12.1939
Com. Reg. No.:	11-003046
Capital Investment / Paid-up Capital :	Rs. 2.400 Millions
CIN No.: [Company Identification No.]	U51900MH1939PTC003046
TAN No.: [Tax Deduction & Collection Account No.]	MUMC10333B
PAN No.: [Permanent Account No.]	AAACC2925K
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Cotton
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 640000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Management has failed to file its financials for 2012 with government department. As per of 2011, overall financial seems to be moderate. However, trade relations are reported as fair. Business is active. Payment 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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.

INFORMATION DECLINED

Name :	Mr. Chandra Sekhar
Designation :	Account Department
Contact No.:	91-80-22239590
Date :	29.08.2013

LOCATIONS

Registered Office :	125, Nagindas Master Road, Fort, Mumbai – 400023, Maharashtra, India
Tel. No.:	91-22-22843758
Fax No.:	91-22-22048801
E-Mail :	galiakotwala_mb@vsnl.com accounts@galiakotwala.com
Administrative Office :	66, Maker Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22843758/ 22843772
Fax No.:	91-22-22048801
Branch Office :	#43/1, Sabuvani Building N R Road, Bangalore – 560002, Karnataka, India
Tel. No.:	080-22239590

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Harshad Chhotalal Sheth
Designation :	Director
Address :	7-B, Geetanjali Co-Operative Housing Society, Navroji Gamadia Cross Road, Off Peddar Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	10.03.1942
Date of Appointment :	29.08.1969
DIN No.:	00045435
Name :	Mr. Mahnedra Chhotalal Sheth
Designation :	Director
Address :	51, Shivtrirth No.1, 4/6 Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	22.12.1948
Date of Appointment :	07.03.1986
DIN No.:	00056975
Name :	Mr. Dhiren Narendra Sheth
Designation :	Director
Address :	101, Khatau House, 15-A, J Mehta Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	03.12.1967
Date of Appointment :	01.02.1992
DIN No.:	00300136
Name :	Mr. Manish Narendra Sheth
Designation :	Director
Address :	101, Khatau House, 15-A, J Mehta Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	25.05.1969
Date of Appointment :	01.08.1994
DIN No.:	00300201

KEY EXECUTIVES

Name :	Mr. Chandra Sekhar
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Narendra Chhotalal Sheth	3808
Harshad Chhotalal Sheth	2352
Bakulesh Sheth	1696
Mahnedra Chhotalal Sheth	2144
Bhanumati Sheth	384
Usha Sheth	1264
Rekha Sheth	928
Harsha Sheth	608
Kanan Sheth	160
Sandip Sheth	1488
Manish Sheth	1216
Dhiren Sheth	1328
Sushant Sheth	704
N. C. Sheth HUF	640
H. C. Sheth HUF	1040
B. C. Sheth HUF	1040
M. C. Sheth HUF	704
Galiakot Containers Limited, India	320
Bhanumati A Sheth	1856
C. J. Sheth HUF	320
TOTAL	24000

AS ON 30.09.2011

Equity Shares Break Up	Percentage of Holding
Bodies corporate	1.33
Directors or relatives of Directors	98.67
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Trader of Cotton

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of India, Mumbai Overseas Branch, 70-80, M G Road, Mezzanine Floor, Fort, Mumbai-400001, Maharashtra, India

· Union Bank of India, Mumbai Samachar Marg Branch, 66/80, Fort, Mumbai-400023, Maharashtra, India

· State Bank of India

· American Express Bank

· ABN Amro Bank N. V.

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Bank overdraft	120.401	28.228
Car Loan	0.407	0.562
Bills Receivable Discounted by Bank	4.369	62.748
TOTAL	125.177	91.538

Banking Relations :	--
Auditors :
Name :	A. W. Ketkar and Company Chartered Accountants
Address :	4, Soukhya, V. N. Purav Marg, Chunabhatti, Mumbai – 400022, Maharashtra, India
PAN No.:	AAFPK2543M

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24000	Equity Shares	Rs.100/- each	Rs. 2.400 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		2.400	2.400	2.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		159.985	156.019	155.811
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		162.385	158.419	158.211
LOAN FUNDS
1] Secured Loans		125.177	91.538	67.815
2] Unsecured Loans		0.923	0.908	0.913
TOTAL BORROWING		126.100	92.446	68.728
DEFERRED TAX LIABILITIES		0.478	0.518	0.588
TOTAL		288.963	251.383	227.527
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.622	10.270	11.144
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		27.281	13.653	34.093
DEFERREX TAX ASSETS		0.037	0.003	0.087
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	408.645	182.638	98.569
	Sundry Debtors	47.573	128.638	89.021
	Cash & Bank Balances	2.849	3.997	30.247
	Other Current Assets	209.444	203.867	203.648
	Loans & Advances	0.141	0.166	0.111
Total Current Assets		668.652	519.306	421.596
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	22.609	27.445	70.842
	Other Current Liabilities	302.747	175.360	80.303
	Provisions	91.273	89.044	88.248
Total Current Liabilities		416.629	291.849	239.393
Net Current Assets		252.023	227.457	182.203
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		288.963	251.383	227.527

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	NA	NA	NA
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses	NA	NA	NA
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7.015	3.529	4.749
Less/ Add	DEPRECIATION/ AMORTISATION		0.894	1.107	1.105
	PROFIT BEFORE TAX		6.121	2.422	3.644
Less	TAX		1.810	1.795	1.775
	PROFIT AFTER TAX		4.311	0.627	1.869
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.738	0.530	0.047
	Provision for deferred tax excess provision for income tax		0.074	0.000	0.018
Less	APPROPRIATIONS
		Proposed Dividend	0.360	0.360	1.200
		Dividend Tax	0.058	0.059	0.204
		Transfer to General Reserve	0.629	0.000	0.000
	BALANCE CARRIED TO THE B/S		4.076	0.738	0.530
	EARNINGS IN FOREIGN CURRENCY
		Sale of Cotton	689.179	189.188	NA
		Import Commission Received	19.345	22.910	NA
	TOTAL EARNINGS		708.524	212.098	NA
	Earnings Per Share (Rs.)		179.63	77.88	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	0.90	0.46	0.84
Return on Investment (ROI) (PBT/Networth)		0.04	0.02	0.02
Debt Equity Ratio (Total Debt /Networth)		0.78	0.58	0.43
Current Ratio (Current Asset/Current Liability)		1.60	1.78	1.76

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	No
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)	Yes
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

UNSECURED LOAN

Rs. In Millions

Particular	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Unsecured Loan	0.923	0.908
TOTAL	0.923	0.908

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10288347	27/04/2011 *	451,700,000.00	UNION BANK OF INDIA	MUMBAI SAMACHAR MARG BRANCH,, 66//80, MUMBAI SAMA  CHAR MARG, FORT, MUMBAI, Maharashtra - 400023, INDIA	B14557102
2	80055830	10/08/2009 *	200,000,000.00	Bank of India	Mumbai Overseas Branch ,70-80 M G Road, Mezzanine Floor ,Fort, Mumbai, Maharashtra - 400001, INDIA	A70158332
3	90244045	25/07/2006 *	37,500,000.00	UNION BANK OF INDIA	MUMBAI SAMACHAR MARG BRANCH, 66/80, MUMBAI SAMACHAR MARG, FORT,, MUMBAI, Maharashtra - 400023, INDIA	-
4	90241017	05/05/2005 *	12,000,000.00	UNION BANK OF INDIA	MUMBAI SAMACHAR MARG BRANCH, 66/80 MUMBAI SAMACHAR MARG FORT, MUMBAI, Maharashtra - 400023, INDIA	-
5	90240477	05/05/2005 *	500,000.00	UNION BANK OF INDIA	MUMBAI SAMACHAR MARG BRANCH, 66/80 MUMBAI SAMACHAR MARG FORT, MUMBAI, Maharashtra - 400023, INDIA	-

* Date of charge modification

FIXED ASSETS

· Land and Building

· Office Premises and Godown

· Office Equipment and Machinery

· Furniture

· Vehicles

· Computers

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 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.67.71
UK Pound	1	Rs.105.14
Euro	1	Rs.90.03

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	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		29

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.