MIRA INFORM REPORT

Report Date :

28.01.2013

IDENTIFICATION DETAILS

Name :	VNKC AGROCOM PRIVATE LIMITED
Registered Office :	315 Shangrila Arcade, Opposite Shyamal Row House, Anandnagar Road, Ahmedabad - 380015, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.10.2004
Com. Reg. No.:	04-44852
Capital Investment / Paid-up Capital :	Rs.20.000 Millions
CIN No.: [Company Identification No.]	U51101GJ2004PTC044852
IEC No.:	0804010064
VAT No.:	24573404241
TAN No.: [Tax Deduction & Collection Account No.]	AHMV02121A
PAN No.: [Permanent Account No.]	AABCV9266F
Legal Form :	Private Limited Liability Company
Line of Business :	Exporter of agricultural commodities.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 190000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The financial risk profile of the company appears to be weak. It is susceptible to intense market competition because of fragmentation in the agro-commodity trading business and product concentration. However, trade relations are reported as fair. Business is active. Payment terms are 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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A4 (Short Term Rating)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	03.04.2012

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 :	315 Shangrila Arcade, Opposite Shyamal Row House, Anandnagar Road, Ahmedabad - 380015, Gujarat, India
Tel. No.:	91- 79-40218585
Fax No.:	91- 79-40218587
E-Mail :	vnkcagrocom@yahoo.co.in info@vnkc.com vnkc@rediffmail.com
Website :	http://www.vnkc.com/

DIRECTORS

As on: 29.09.2012

Name :	Mr. Kunal Chandrakant Kotecha
Designation :	Managing director
Address :	106, Samrat, Near Choice Restaurant, CG Road, Navrangpura, Ahmedabad – 380006, Gujarat, India
Date of Birth :	16.02.1980
Date of Appointment :	04.10.2004
DIN No.:	02764648
Name :	Mr. Vipul Natavarlal Kanabar
Designation :	Whole-time director
Address :	106, Samrat, Near Choice Restaurant, CG Road, Navrangpura, Ahmedabad – 380006, Gujarat, India
Date of Birth :	21.07.1978
Date of Appointment :	04.10.2004
DIN No.:	01673512

MAJOR SHAREHOLDERS

As on: 29.09.2012

Names of Shareholders	No. of Shares
Mr. Kunal Chandrakant Kotecha	1194400
Mr. Vipul Natavarlal Kanabar	805600
Total	2000000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Exporter of agricultural commodities.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Saurashtra, Bhadra Branch, Mission Road, Ahmedabad – 380001, Gujarat, India

· Oriental Bank of Commerce, C. G. Road Branch, C. G. Road, Ahmedabad - 380009, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Short Term Borrowing
Loans repayable on demand from banks	123.504	114.676
Total	123.504	114.676

Banking Relations :	--
Auditors :
Name :	Pabari Associates Chartered Accountants
Address :	303, Race Course Plaza, Race Course Ring Road, Rajkot – 360001, Gujarat, India
PAN.:	AJCPP9506F

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 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		20.000	20.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		29.313	4.560	2.566
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		49.313	24.560	22.566
LOAN FUNDS
1] Secured Loans		123.504	114.676	67.150
2] Unsecured Loans		2.100	1.341	0.215
TOTAL BORROWING		125.604	116.017	67.365
DEFERRED TAX LIABILITIES		0.110	0.095	0.045
TOTAL		175.027	140.672	89.976
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.275	6.328	0.730
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.648	0.718	0.050
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	183.657	132.879	115.756
	Sundry Debtors	303.451	67.833	83.395
	Cash & Bank Balances	2.080	11.209	2.654
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	40.748	7.140	9.311
Total Current Assets		529.936	219.061	211.116
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	349.677	83.888	119.677
	Other Current Liabilities	1.178	0.536	1.587
	Provisions	11.977	1.013	0.656
Total Current Liabilities		362.832	85.437	121.920
Net Current Assets		167.104	133.624	89.196
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		175.027	140.672	89.976

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Total Operational Income	3602.343	2227.528	1007.566
		Other Income	103.104	53.463	36.909
		TOTAL	3705.447	2280.991	1044.475
Less	EXPENSES
		Office Expenses	3668.740	2277.919	1042.685
		Administrative Expenses
		Advertising Expenses
		TOTAL	3668.740	2277.919	1042.685
	PROFIT BEFORE TAX		36.707	3.072	1.790
Less	TAX		11.954	1.078	0.607
	PROFIT AFTER TAX		24.753	1.994	1.183
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4.560	2.566	1.383
	BALANCE CARRIED TO THE B/S		29.313	4.560	2.566
	EARNINGS IN FOREIGN CURRENCY		3601.800	0.000	1004.000
	Earnings Per Share (Rs.)		12.38	--	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.67	0.19	0.11
Net Profit Margin (PBT/Sales)	(%)	1.02	0.14	0.18
Return on Total Assets (PBT/Total Assets}	(%)	6.83	1.36	0.84
Return on Investment (ROI) (PBT/Networth)		0.74	0.13	0.08
Debt Equity Ratio (Total Liability/Networth)		9.90	8.20	8.39
Current Ratio (Current Asset/Current Liability)		1.46	2.56	1.73

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	No
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

NOTE:

The registered office of the company has been shifted from 6, Samrat, Near Choice Restaurant, CG Road, Navrangpura, Ahmedabad – 380009, Gujarat, India, to present address w.e.f. 12.03.2011

BUSINESS OPPERATIONS:

The Company continued to grow steadily during the year and achieved a remarkable growth on sales, which is quite evident from the above mentioned figures. The total turnover for the financial year ended March 31, 2012 has increased to Rs. 3602.343 Millions, as compared to Rs. 2227.528 Millions of the previous year, registering a growth of 61.72 percent. Company’s domestic sales during the year were Rs. 0.570 Millions, as the Company principally concentrates on Export segment. The Company has incurred the Operating Profit of Rs. 36.707 Millions during the year as compared to 3.072 Millions of the previous year, registering growth of almost Ten times as compared to last year. The Depreciation for the current financial year stood at Rs. 1.046 Millions as against Rs. 0.498 Millions in the previous year. The Company is in the business of export of agri-products and essentially deals in Peanuts and Groundnut Seeds. However, during the year Company has also dealt in Cumin Seeds, Sesame hulled and Barley. The Directors assures you that they would grab all business opportunities that could be seized from the market for the overall development of their business and foresee bright prospects of the Company in the years to come. They seek long-term relationship with clients while addressing their requirements. Their customer centric approach has resulted in high levels of client satisfaction and retention.

UNSECURED LOAN:

Particulars	As on 31.03.2012	As on 31.03.2011
Long Term Borrowing
Loans and advances from related parties	2.100	1.341
Total	2.100	1.341

BANKERS CHARGES REPORT AS PER REGISTRY:

Corporate identity number of the company	U51101GJ2004PTC044852
Name of the company	VNKC AGROCOM PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	315 Shangrila Arcade, Opposite Shyamal Row House, Anandnagar Road, Ahmedabad - 380015, Gujarat, India vnkcagrocom@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10202853
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge · Others (Foreign Documentary Demand / Usance Bill and PC)
Particular of charge holder	Oriental Bank of Commerce, C. G. Road Branch, C. G. Road, Ahmedabad - 380009, Gujarat, India bm1051@obc.co.in
Nature of instrument creating charge	Supplemental Agreement to secure credit / loan facilities.
Date of instrument Creating the charge	23.05.2011
Amount secured by the charge	Rs. 150.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest For FDBP/FUDBP: PLR - 2.50% (at present 9.50%) and as per RBI directions and Head Office guidelines issued from time to time. Terms of Repayment Terms of repayment: Repayable on demand but subject to renewal every year. Margin Margin is 25% Extent and Operation of the charge The charge is by way of Hypothecation of Stock in trade, stock in transit, Book debts and Foreign Documentary Demand / usance bills accompanied by Airway bill / Bill of lading and drawn under irrevocable letter of credit / confirmed orders as a security to secure the enhanced credit facilities of Rs. 150.000 Millions together with interest, costs and charges as stated below: FDBP/FUDBP/Packing Credit/PCFC of Rs. 150.000 Millions Others Other terms and conditions shall be as per the supplemental agreement executed with the bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Stock in trade, stock in transit, Book debts and Foreign Documentary Demand / usance bills accompanied by Airway bill / Bill of lading and drawn under irrevocable letter of credit / confirmed orders.
Date of instrument modifying the charge	11.03.2011
Particulars of the present modification	The credit facilities have been enhanced from Rs. 125.000 Millions to Rs. 150.000 Millions. Accordingly, the Charge extended to secure the enhanced credit facilities of Rs. 150.000 Millions as under: FDBP/FUDBP/Packing Credit/PCFC of Rs. 150.000 Millions

FIXED ASSETS:

· Buildings

· Furniture and fixtures

· Motor vehicles

· Office equipment

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.53.85
UK Pound	1	Rs.85.26
Euro	1	Rs.71.72

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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
TOTAL		32

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.