MIRA INFORM REPORT

Report Date :

31.01.2013

IDENTIFICATION DETAILS

Name :	V R A COTTON MILLS PRIVATE LIMITED
Registered Office :	Village Buraj Muhar, Fazilka Road, NH-10, Abohar – 152 116, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.06.1997
Com. Reg. No.:	16-020061
Capital Investment / Paid-up Capital :	Rs.100.000 millions
CIN No.: [Company Identification No.]	U15311PB1997PTC020061
PAN No.: [Permanent Account No.]	AABCV3100A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton Fabrics.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 554000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The profitability of the company appears to be low. However, the performance capability appears to be high. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight 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	NSIC CRISIL
Rating	SEIB
Rating Explanation	Having highest performance capacity and financial strength is moderate.
Date	30.01.2012

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/ Factory :	Village Buraj Muhar, Fazilka Road, NH-10, Abohar – 152 116, Punjab, India
Tel. No.:	91-1634-223029/ 228544
Fax No.:	Not Available
E-Mail :	rameshbabbar@rediffmail.com
Export Office:	1^st Floor, M-31A, Greater Kailash Market, Part - II, New Delhi - 110 048, India
Tel. No.:	91-11-29213982 / 29213983
Fax No.:	91-11-29212226

DIRECTORS

As on 16.09.2011

Name :	Mr. Vinod Kumar Parma Nand Ahuja
Designation :	Director
Address :	Ahuja Street, Fazilka – 152 123, Punjab, India
Date of Appointment :	10.06.1997
DIN No.:	00030390
PAN No.:	ABFPA2051F
Name :	Madhu Vinod Ahuja
Designation :	Director
Address :	Ahuja Street, Fazilka – 152 123, Punjab, India
Date of Appointment :	10.06.1997
DIN No.:	00738216
Name :	Mr. Raghav Vinod Ahuja
Designation :	Director
Address :	Ahuja Street, Fazilka – 152 123, Punjab, India
Date of Appointment :	30.09.2005
DIN No.:	00738284
PAN No.:	AAKPA9889M
Name :	Mr. Parma Nand Gopi Chand Ahuja
Designation :	Director
Address :	Ahuja Street, Fazilka – 152 123, Punjab, India
Date of Appointment :	10.06.1997
DIN No.:	01666723

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 16.09.2011

Names of Shareholders	No. of Shares
Parma Nand Ahuja	28143
Vinod Kumar Ahuja	112482
Madhu Ahuja	17
Parma Nand Ahuja jointly with Lajwanti Ahuja (HUF)	40950
Vinod Kumar Ahuja (HUF)	109283
Lajwanti Ahuja	120500
Pal Farms Private Limited, India	64525
Sara Farms Private Limited, India	67800
Servell Enterprises Private Limited, India	56425
Raghav Ahuja	229125
MS Seed Development Private Limited, India	27600
VRA Seed Development Private Limited, India	26500
Ahuja Horticulture Farms Private Limited, India	64700
Spectrum Agros Private Limited, India	29250
Transwell Chains India (India) Limited, India	9500
Panasian Farma Private Limited, India	13200
Total	1000000

As on 16.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	35.95
Directors or relatives of directors	64.05
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cotton Fabrics.

Products :

Item Code No. (ITC Code)	52010011
Product Description	Cotton
Item Code No. (ITC Code)	23061090
Product Description	Other Cotton Seed

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v State Bank of India, Bazar No.4, Abohar – 152 116, Punjab, India

v ICICI Bank Limited

v HDFC Bank

v Punjab National Bank

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long Term Borrowings
Loans taken for vehicles
Vehicles bought from these term loans personally guaranteed by promoter director	2.028	3.704
Short Term Borrowings
Working capital loans from banks Hypothecation of RM, FG and WIP and Book Debts	127.757	248.783
Loans repayable on demand from banks Hypothecation of RM, FG and WIP and Book Debts	8.038	5.945
Total	137.823	258.432

Banking Relations :	--
Financial Institution :	Punjab Financial Corporation, Bank Squares; 95-98; Sector 17 B, Chandigarh, India
Auditors :
Name :	Ramesh Babbar and Associates Chartered Accountants
Address :	30, New Grain Market, Fazilka – 152 123, Punjab, India
Tel. No.:	91-1638-262903
Mobile No.:	91-9815348606
Email:	remeshbabbar@rediffmail.com
Income-tax PAN of auditor or auditor's firm :	AAUPB5804F

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.100/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.100/- each	Rs.100.000 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		100.000	100.000	65.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		38.399	36.561	21.138
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		138.399	136.561	86.138
LOAN FUNDS
1] Secured Loans		137.823	258.432	269.243
2] Unsecured Loans		1.237	0.747	0.000
TOTAL BORROWING		139.060	259.179	269.243
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		277.459	395.740	355.381
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.980	12.069	8.831
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.132
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	75.854	250.471	68.828
	Sundry Debtors	176.768	132.505	271.266
	Cash & Bank Balances	19.812	7.334	12.312
	Other Current Assets	2.916	5.699	0.000
	Loans & Advances	7.543	8.978	5.439
Total Current Assets		282.893	404.987	357.845
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	22.869	13.631	7.159
	Other Current Liabilities	1.248	1.485	0.528
	Provisions	3.297	6.200	3.920
Total Current Liabilities		27.414	21.316	11.607
Net Current Assets		255.479	383.671	346.238
MISCELLANEOUS EXPENSES		0.000	0.000	0.180
TOTAL		277.459	395.740	355.381

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	976.059	752.903	1253.722
		Other Income	NA	NA	9.772
		TOTAL	NA	NA	1263.494
Less	EXPENSES
		TOTAL	NA	NA	1231.884
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		35.258	36.907	31.610
Less	FINANCIAL EXPENSES		22.652	15.721	14.504
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		12.606	21.186	17.106
Less/ Add	DEPRECIATION/ AMORTISATION		1.937	2.296	1.066
	PROFIT BEFORE TAX		10.669	18.890	16.040
Less	TAX		3.212	6.200	3.920
	PROFIT AFTER TAX		7.457	12.690	12.120
	Earnings Per Share (Rs.)		7.46	12.69	18.65

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	0.96
Net Profit Margin (PBT/Sales)	(%)	1.09	2.51	1.28
Return on Total Assets (PBT/Total Assets}	(%)	3.50	4.53	4.37
Return on Investment (ROI) (PBT/Networth)		0.08	0.14	0.19
Debt Equity Ratio (Total Debt/Networth)		1.00	1.90	3.13
Current Ratio (Current Asset/Current Liability)		10.32	19.00	30.83

LOCAL AGENCY FURTHER INFORMATION

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	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

Note:

Registered office of the company has been shifted from Burj Muhar, Fazilka Road, Bohar, District Ferozepur - 152 110, Punjab to the present address w.e.f. 01.07.2010

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long Term Borrowings
Loans and advances from related parties	1.237	0.747
Total	1.237	0.747

FINANCIAL PERFORMANCE:

The Company made total Sales of Rs.976.059 millions during the year. The total Purchases of Rs.883.908 millions was made during the year. A closing stock of finished goods amounting to Rs.758.536 millions was lying with the company. There was net profit of Rs.35.258 millions before providing Financial Expenses and Depreciation. Financial Expenses to Rs.22.652 millions was provided and depreciation Rs.193.633 millions was provided. There was net profit or Rs.10.669 millions. Provision for income Tax of Rs.3.212 millions was provided and net Profit of Rs.7.457 millions. Transferred to Reserve and Surplus Account. No dividend is proposed due to inadequate profit.

FIXED ASSETS:

v Land

v Building

v Plant and Machinery

v Furniture and Fixture

v Moped

v Computer

v Office Building

v Tirpal

v Refrigerator

v Television

v Tools ad Equipment

v Cooler

v Mobile

v Cycle

v Generator

v Air Conditioner

v Motor Cycle

v Car

v Printer and Fax Machine

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.53.70
UK Pound	1	Rs.84.35
Euro	1	Rs.72.21

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		36

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.