MIRA INFORM REPORT

Report Date :

27.12.2013

IDENTIFICATION DETAILS

Name :	PRADEEP FIBER PRIVATE LIMITED
Registered Office :	Plot No.100, CIDCO, N-4/F-1, Manuprabha, Guru Sahani Nagar, Garkheda, Aurangabad – 431 003, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	24.08.2004
Com. Reg. No.:	11-148174
Capital Investment / Paid-up Capital :	Rs.28.000 Millions
CIN No.: [Company Identification No.]	U17110MH2004PTC148174
TAN No.: [Tax Deduction & Collection Account No.]	NSKP02294F
PAN No.: [Permanent Account No.]	AADCP3567F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Cotton, Cotton Seed and Oil Cakes.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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 a moderate track record. The rating constrained by the weak financial profile marked by low profitability, small net-worth base and leveraged capital structure, operating margins exposed to fluctuation in raw material prices, highly working-capital intensive operations. 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 – 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

Uptick in agriculture and construction spread some cheer as the economy grew a higher-than-expected 4.8 % in the three months through September. Manufacturing rose an annual rate per cent during the quarter and mining fell by 0.4 %, government data showed while farm output rose 46%.

India has emerged as the most attractive investment destination, thanks to a relaxation in foreign direct investment norms, says a report. India is followed by Brazil and China in the ranking part of EY’s Capital Confidence Barometer report based on a survey across 70 nations. The US, France and Japan have emerged as the top three investors likely to invest in India.

India has been ranked 83^rd globally in terms of talent competitiveness of its human capital.  Switzerland, Singapore, Denmark, Sweden and Luxembourg are the top five in the list of 103 nations compiled by INSEAD business school.

Tax rates for companies in India are among the highest in the world and the number of payments is also more than the global average putting the country at low, 158^th rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the time taken for tax payments is relatively less in India which is rated ahead of China and Japan.

1 billion smartphone shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost computing in emerging markets. By 2017, total smartphone shipments are expected to approach 1.7 billion units, resulting in a compound annual growth rate of 18.4 % between 2013 and 2017, according to research from IDC.

20 % vacancy rate of office space in Mumbai and Delhi in the third quarter, the highest in Asia after Chengdu, in China. According to Cushman and Wakefield, six Indian cities are among the 10 office markets with the worst vacancies.

Foreign banks will not have to pay stamp duty and capital gains tax, if they convert their branch operations into a wholly owned subsidiary, according to the Reserve Bank of India.

The Reserve Bank of India is planning to launch CPI – indexed bonds aimed to protecting the savings of retail investors from the impact the price rise by December end.

Central Bureau of Investigation has booked State Bank of India, Deputy Managing Director Shyamal Acharya and others in a graft case related to distribution of a loan of over Rs 4000 mn. Gold and jewellery  worth Rs 6.7 mn have been recovered from the residence of Acharya.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities=BB-
Rating Explanation	Moderate risk of default and high credit risk.
Date	28.02.2013

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 :	Plot No.100, CIDCO, N-4/F-1, Manuprabha, Guru Sahani Nagar, Garkheda, Aurangabad – 431003, Maharashtra, India
Tel. No.:	91-240-2453285-287
Fax No.:	91-240-2453288
E-Mail :	pradeepfibers@yahoo.co.in
Website :	www.pradeepfibers.in
Location :	Owned
Factory 1/ Branch Office :	Gate No. 449, Dongargaon, Sillod, District Aurangabad, Maharashtra, India
Tel. No.:	91-2430-222159
Fax No.:	91-2430-222159
Area :	3 Hector
Location :	Leased
Factory 2 :	Gate No.241, 242, Chikani, Georai, District Beed, Maharashtra, India
Area :	3.20 Hector
Location :	Owned

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Govind Maganlal Tayal

Designation :

Director

Address :

Warla Road, Sendhwa, Madhya Pradesh, India

Date of Appointment :

24.08.2004

DIN No.:

01877025

Name :

Mr. Mohanlal Maganlal Tayal

Designation :

Director

Address :

Warla Road, Sendhwa, Madhya Pradesh, India

Date of Appointment :

24.08.2004

DIN No.:

01877027

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	U17110MH2004PTC148174	PRADEEP FIBERS PRIVATE LIMITED	Director	24/08/2004	24/08/2004	Active	NO
2	U17110MP2011PTC026337	Pradeep Cotton Private Limited	Director	07/07/2011	07/07/2011	Active	NO

Name :

Mr. Ashish Mohanlal Tayal

Designation :

Director

Address :

Plot No. 21, N-3, CIDCO, Aurangabad, Maharashtra, India

Date of Appointment :

24.08.2004

DIN No.:

01877032

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	U17110MH2004PTC148174	PRADEEP FIBERS PRIVATE LIMITED	Director	24/08/2004	24/08/2004	Active	NO
2	U17110MP2011PTC026337	PRADEEP COTTON PRIVATE LIMITED	Director	07/07/2011	07/07/2011	Active	NO
3	U17301MP2012PTC028885	MST FIBERS INDIA PRIVATE LIMITED	Director	26/07/2012	26/07/2012	Active	NO

Name :

Mr. Abhishek Tayal

Designation :

Director

Address :

Warla Road, Sendhwa, Madhya Pradesh, India

Date of Appointment :

24.08.2004

DIN No.:

05201291

MAJOR SHAREHOLDERS

AS ON 30.09.2013

Names of Shareholders	No. of Shares
Pradeep Pushalal Tayal	180250
Mohanlal Maganlal Tayal	267750
Govind Maganlal Tayal	215250
Ashish Mohanlal Tayal	40250
Rishabh Kishor Tayal	3500
Sunilkumar Pushalal Tayal	5250
Abhishek Govind Tayal	5250
Manudevi Pushalal Tayal	212000
Shashi Govind Tayal	275000
Anju Sunil Tayal	245000
Veena Pradeep Tayal	245000
Chanda Kishor Tayal	245000
Sharmila Girish Tayal	245000
Vidya Mohan Tayal	245000
Mohanlal Maganlal Agrawal HUF	3500
Govind Maganlal Agrawal HUF	3500
Girish Maganlal HUF	3500
Kishor Pushalal HUF	3500
Praddep Pushalal HUF	3500
Sunil Pushalal Tayal HUF	3500
Pushalal Sarbulal Tayal HUF	3500
Sarbulal Gangashay HUF	3500
Girish Maganlal Agrawal	277500
Kishor Pushalal Tayal	65000
Total	2800000

Equity Share Break up (Percentage of Total Equity)

AS ON 30.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Cotton, Cotton Seed and Oil Cakes.

Products :

Products Description	Item Code No
Cotton	47061000

PRODUCTION STATUS (AS ON 31.03.2012)

Products	Actual Production
Cotton Ginning and Pressing :
Electricity	170.06
Oil and Lubricant	10.78
Stores and Spares	39.95

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India, Industrial Finance Branch, Jaggi’s Building, Jalna Road, Aurangabad – 431005, Maharashtra, India

· State Bank of Indore, Kranti Chowk Branch, Aurangabad – 431001, Maharashtra, India

· IDBI Bank Limited, IDBI Tower WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India

· State Bank of Maharashtra

· State Bank of Hyderabad

· Shri Siddeshwar Urban Co-Operative Bank

· The Vaijapur Merchant Co-operative Bank Limited

· Indian Bank

· HDFC Bank Limited

· Axis Bank Limited

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Rupee Term Loans from others	0.000	1.443
Short Term Borrowings
Working Capital Loans from Banks	120.119	143.118
Loans repayable on demand	0.786	0.454
Total	120.905	145.015

Banking Relations :	--
Auditors :
Name :	Mandovra and Associates Chartered Accountants
Address :	2, White Church Colony, Opposite Aaykar Bhavan, Indore – 452001, Madhya Pradesh, India
Tel. No.:	91-731-2701600-603
PAN No.:	AAGFM7993L
Other Related Parties :	· Kunal Cotton Industries Praddep Cottons Private Limited Praddep Cotex Industries Praddep Cotton Corporation Godavari Cotton Industries Pradeep Fibers

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs. 10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2800000	Equity Shares	Rs. 10/- each	Rs.28.000 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	28.000	28.000	28.000
(b) Reserves & Surplus	70.671	63.405	56.354
(c) Money received against share warrants	0.000	0.000	0.000
			0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	98.671	91.405	84.354
(3) Non-Current Liabilities
(a) long-term borrowings	125.585	167.782	141.645
(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	0.000	0.000	0.000
Total Non-current Liabilities (3)	125.585	167.782	141.645
(4) Current Liabilities
(a) Short term borrowings	120.905	143.572	151.354
(b) Trade payables	46.833	61.230	49.584
(c) Other current liabilities	7.987	7.966	27.344
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	175.725	212.768	228.282
TOTAL	399.981	471.955	454.281
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	27.601	31.230	31.077
(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	0.003	0.003	0.003
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	6.318	3.385	4.195
Total Non-Current Assets	33.922	34.618	35.275
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	181.899	256.072	185.473
(c) Trade receivables	131.609	134.699	128.100
(d) Cash and cash equivalents	11.651	7.528	5.331
(e) Short-term loans and advances	40.900	39.038	100.102
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	366.059	437.337	419.006
TOTAL	399.981	471.955	454.281

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2015.941	2024.064	2070.010
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		15.229	14.435	24.328
Less	DEPRECIATION/ AMORTISATION		4.061	4.537	4.047
	PROFIT/(LOSS) BEFORE TAX		11.168	9.898	20.281
Less	TAX		3.902	3.986	7.343
	PROFIT/(LOSS) AFTER TAX (G-H)		7.266	5.912	12.938
	Earnings Per Share (Rs.)		2.60	2.11	4.62

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PBT/Sales)	(%)	0.55	0.49	0.98
Return on Total Assets (PBT/Total Assets}	(%)	2.84	2.11	4.51
Return on Investment (ROI) (PBT/Networth)		0.11	0.11	0.24
Debt Equity Ratio (Total Debt /Networth)		2.50	3.41	3.47
Current Ratio (Current Asset/Current Liability)		2.08	2.06	1.84

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	No
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
Intercorporate Borrowings	0.786	5.000
Loans and Advances from related parties	124.799	161.339
Total	125.585	166.339

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10176135	08/08/2009	30,000,000.00	IDBI BANK LIMITED	IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA	A69720407

OPERATIONS:

During the year, the turnover of the company has slightly gone down by 0.40%, still profit before depreciation has been increased by 5.5% and profit after tax has been increased by 22.90%. In the highly fluctuating market, subject has been able to sustain its turnover and improve the profitability. The export turnover has also been slightly increased as compared to previous year and earned foreign currency for the country. The directors are taking action and hoping for the increase in turnover and also profitability and will become successful in taking advantage of the bullish trend going on in the cotton textile industry throughout the world.

FIXED ASSETS:

· Land

· Testing Machine

· Bycycle

· Inverters

· Furniture

· Land

· Tanker

· Tippal

· Generator Set

· Machinery

· Mobile

· Empty Drum

· Motor Cycle

· Transformer

· Inventor

· Furniture and Fixture

· Plant and Machinery

· Weighing System

· Vaijapur Branch

· Firefighting equipments

· D T O Scooter

· Office Equipments

· Air Conditioners

· Maruti Car

· Firex

· Water Purifire

· Bag Sstiching Machine

· Factory Bhavan Nirman

· Eclectic Fitting

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.61.98
UK Pound	1	Rs.101.49
Euro	1	Rs.84.79

INFORMATION DETAILS

Report Prepared by :

NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.