MIRA INFORM REPORT

Report Date :

23.12.2013

IDENTIFICATION DETAILS

Name :	BAFNA GINNING AND PRESSING PRIVATE LIMITED
Registered Office :	Gut No.100, Chite Pimpalgaon, Tq District Aurangabad – 431 201, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	14.01.1999
Com. Reg. No.:	11-117869
Capital Investment / Paid-up Capital :	Rs.3.084 Millions
CIN No.: [Company Identification No.]	U17120MH1999PTC117869
TAN No.: [Tax Deduction & Collection Account No.]	NSKB02706E
PAN No.: [Permanent Account No.]	AACCB2926P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton base products
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 300000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears huge external borrowing taken by the company, which acts as threatening to the liquidity position of the company. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Fund Based Limits=B+
Rating Explanation	Risk prone credit quality and high risk of default.
Date	January, 2013

Rating Agency Name	ICRA
Rating	Short Term Non Fund Based Limits=A4
Rating Explanation	Minimal degree of safety and high credit risk.
Date	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 :	Gut No.100, Chite Pimpalgaon, Tq District Aurangabad – 431 201, Maharashtra, India
Tel. No.:	91-240-2489993
Fax No.:	91-240-2470387
E-Mail :	bafnaginning@rediffmail.com comp.filing@rediffmail.com
Factory :	406, Corporate House, 4^th Floor, 169 R N T Marg, Indore – 452 001, Madhya Pradesh, India
Tel. No.:	91-731-4271466/ 2521021/ 4271450-60
Fax No.:	91-731-2529556

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Rahul Doshi

Designation :

Additional Director

Address :

15/1, South Tukoganj, Indore – 452 001, Madhya Pradesh, India

Date of Birth/Age :

03.03.1975

Date of Appointment :

30.09.2013

DIN No.:

00412519

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	Company/ LLP Status	Defaulting status
1	U17121MP1994PTC008690	RACHNA TEXTILES (INDIA)PVT LTD	Director	05/10/1995	05/10/1995	Active	NO
2	U17121MP2003PTC015833	MAHIMA COTEX PRIVATE LIMITED	Director	23/05/2003	23/05/2003	Active	NO
3	U17120MH2005PTC157268	POOJA FIBRES PRIVATE LIMITED	Director	11/11/2005	11/11/2005	Active	NO
4	U17120MH1999PTC117869	BAFNA GINNING AND PRESSING PRIVATE LIMITED	Director	30/09/2013	01/01/2013	Active	NO

Name :

Mrs. Chhavi Doshi

Designation :

Director

Address :

15/1, South Tukoganj, Indore – 452 001, Madhya Pradesh, India

Date of Birth/Age :

04.09.1978

Date of Appointment :

01.11.2006

DIN No.:

01569504

Name :

Mrs. Shilpa Rahul Doshi

Designation :

Director

Address :

B-8, Chanakyapuri, Darga Road, Shahnoorwadi, Aurangabad – 431 005, Maharashtra, India

Date of Birth/Age :

27.12.1979

Date of Appointment :

01.11.2006

DIN No.:

02267628

MAJOR SHAREHOLDERS

AS ON 30.09.2013

Names of Shareholders	No. of Shares
Chhavi Doshi	25480
Shilpa Rahul Doshi	25480
Mahima Cotex Private Limited, India	76000
Pooja Fibres Private Limited, India	75000
Abhishek Doshi	10000
Rani Doshi	10000
Ashish Doshi	10000
Ashok Kumar Doshi	18500
Manju Doshi	8650
Pawan Kumar Doshi	16450
Pooja Doshi	7850
Delight Cotton Private Limited, India	25000
Total	308410

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2013

Category	Percentage
Bodies corporate	57.07
Directors or relatives of Directors	42.93
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton base products

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Specialised Mid Corporate Branch, Khandelwal Chambers, Mhow-Neemuch Road, Pithampur – 454 775, Madhya Pradesh, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term Loans from Banks	0.000	0.154
Short Term Borrowings
Loans repayable on Demand (Secured against Hypothecation of all stock, Book Debts and all movable assets)	393.973	27.685
Total	393.973	27.839

Banking Relations :	--
Auditors :
Name :	Maheshwari and Gupta Chartered Accountants
Address :	312-314, Manas Bhawan Extn., 11/2, R.N.T. Marg, Indore – 452 001, Madhya Pradesh, India
PAN No.:	AABFM9020B
Related Party :	· Pooja Fibres Private Limited [U17120MH2005PTC157268] · Pooja Cotton Industries · Mahima Fibres Private Limited [U17111MP1998PTC012885] · Mahima Cotex Private Limited [U17121MP2003PTC015833]

CAPITAL STRUCTURE

AS ON 30.09.2013

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
308410	Equity Shares	Rs. 10/- each	Rs.3.084 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	3.084	2.834	0.500
(b) Reserves & Surplus	88.460	71.146	42.906
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	2.500	13.196
Total Shareholders’ Funds (1) + (2)	91.544	76.480	56.602
(3) Non-Current Liabilities
(a) long-term borrowings	3.689	2.706	2.063
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.110	0.110	0.110
Total Non-current Liabilities (3)	3.799	2.816	2.173
(4) Current Liabilities
(a) Short term borrowings	393.973	180.217	251.778
(b) Trade payables	126.171	35.979	155.488
(c) Other current liabilities	1.941	4.874	3.841
(d) Short-term provisions	7.400	5.050	0.024
Total Current Liabilities (4)	529.485	226.120	411.131
TOTAL	624.828	305.416	469.906
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	12.098	13.577	13.400
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	10.000	10.000	10.000
(c) Deferred tax assets (net)	0.000	0.000	0.00
(d) Long-term Loan and Advances	0.372	.0.389	0.389
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	22.470	23.966	23.789
(2) Current assets
(a) Current investments	1.500	1.500	1.500
(b) Inventories	37.528	46.802	101.043
(c) Trade receivables	430.320	203.663	314.158
(d) Cash and cash equivalents	1.830	1..132	1.358
(e) Short-term loans and advances	50.129	18.670	16.216
(f) Other current assets	81.051	9.683	11.842
Total Current Assets	602.358	281.450	446.117
TOTAL	624.828	305.416	469.906

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		TOTAL (B)	NA	NA	NA
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		49.811	29.665	22.832
Less	FINANCIAL EXPENSES (D)		25.850	13.587	5.434
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		23.961	16.078	17.398
Less	DEPRECIATION/ AMORTISATION (F)		1.772	2.005	2.045
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		22.189	14.073	15.353
Less	TAX (H)		7.125	6.664	5.570
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		15.064	7.409	9.783
	TOTAL EARNINGS		271.436	312.864	NA
	Earnings Per Share (Rs.)		48.84	NA	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Return on Total Assets (PBT/Total Assets}	(%)	3.61	4.77	3.34
Return on Investment (ROI) (PBT/Networth)		0.24	0.18	0.27
Debt Equity Ratio (Total Debt /Networth)		4.34	2.39	4.48
Current Ratio (Current Asset/Current Liability)		1.14	1.24	1.09

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	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	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	Yes

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans and Advances from related Parties	3.689	2.552
Short Term Borrowings
Loans and Advances from related Parties	0.000	152.532
Total	3.689	155.084

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10387768	14/02/2013 *	430,000,000.00	STATE BANK OF INDIA	SPECIALISED MID CORPORATE BRANCH, KHANDELWAL CHAMBERS, MHOW-NEEMUCH ROAD, PITHAMPUR – 454 775, MADHYA PRADESH, INDIA	B68977024

* Date of charge modification

FIXED ASSETS:

· Freehold Land

· Factory Building

· Plant and Machinery

· Generator

· Furniture and Fixture

· Borewell

· Electrification

· Computer

· Car

· Office Equipment

· Air Conditioner

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.62.24
UK Pound	1	Rs.101.81
Euro	1	Rs.84.88

INFORMATION DETAILS

Report Prepared by :

NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--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.