MIRA INFORM REPORT

Report Date :

08.06.2013

IDENTIFICATION DETAILS

Name :	KGF COTTONS PRIVATE LIMITED
Registered Office :	Niral Road, Bhainsa – 504103, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	21.07.1997
Com. Reg. No.:	01-027584
Capital Investment / Paid-up Capital :	Rs. 41.500 Millions
CIN No.: [Company Identification No.]	U18100AP1997PTC027584
TAN No.: [Tax Deduction & Collection Account No.]	HYDK01149B
PAN No.: [Permanent Account No.]	AABCN5930G / AAACK8379D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Edible Oils, Cotton Bales and their By-Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 599600
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a part of “Good Health Group”. It is an established company having a satisfactory track record. Trade relations are reported to be fair. Business is active. payments are reported to be usually correct and as per commitments. The company can be considered for normal business dealings at usual trade terms and condition. Note: Profit and Loss Account for the year 2012 is not available.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : (CRISIL) BB+
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	August 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 :	Niral Road, Bhainsa – 504103, Andhra Pradesh, India
Tel. No.:	91-8752-231078
Fax No.:	91-8752-231681
E-Mail :	l.d.reddy@gmail.com info@goodhealthgroup.com
Website :	www.kgfcottons.in
Corporate Office :	1-8-663, , Azamabad, Azamabad Industrial Area, Hyderabad - 500020, Andhra Pradesh, India
Tel. No.:	91-40-23222834/ 23260277
Fax No.:	91-40-39168888

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Kailash Agarwal

Designation :

Director

Address :

1-2-A12/12, Gaganmahal Colony, Domalguda, Hyderabad - 500029, Andhra Pradesh, India

Date of Birth/Age :

27.04.1963

Date of Appointment :

21.07.1997

DIN No.:

01625271

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	U74999AP1993PTC016732	GOOD-HEALTH AGROTECH PRIVATE LIMITED	Director	14/12/1993	14/12/1993	Active	NO
2	U01711AP1996PTC024091	AMIT COTTONS PRIVATE LIMITED	Director	15/05/1996	15/05/1996	Active	NO
3	U18100AP1997PTC027584	KGF COTTONS PRIVATE LIMITED	Director	21/07/1997	21/07/1997	Active	NO
4	U99999AP1934PLC000578	THE HYDERABAD CONSTRUCTION COMPANY LIMITED	Director	15/05/2003	15/05/2003	Active	NO
5	U85110GJ1995PLC067038	RAJSHRI PACKAGERS LIMITED	Director	18/04/2005	18/04/2005	Amalgamated	NO

Name :

Mr. Subhash Chandra Agarwal

Designation :

Director

Address :

1-2-A12/12, Gaganmahal Colony, Domalguda, Hyderabad - 500029, Andhra Pradesh, India

Date of Birth/Age :

27.03.1961

Date of Appointment :

21.07.1997

DIN No.:

02299878

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U74999AP1993PTC016732	GOOD-HEALTH AGROTECH PRIVATE LIMITED	Director	14/12/1993	14/12/1993	-	Active	NO
2	U01711AP1996PTC024091	AMIT COTTONS PRIVATE LIMITED	Director	15/05/1996	15/05/1996	-	Active	NO
3	U18100AP1997PTC027584	KGF COTTONS PRIVATE LIMITED	Director	21/07/1997	21/07/1997	-	Active	NO
4	U99999AP1934PLC000578	THE HYDERABAD CONSTRUCTION COMPANY LIMITED	Director	15/05/2003	15/05/2003	-	Active	NO
5	U85110GJ1995PLC067038	RAJSHRI PACKAGERS LIMITED	Director	18/04/2005	18/04/2005	08/05/2009	Amalgamated	NO

Name :

Mr. Vinod Kumar Agarwal

Designation :

Director

Address :

Plot No. 266A/B, MLA Colony, Road No. 12, Banjara Hills, Hyderabad - 500034, Andhra Pradesh, India

Date of Birth/Age :

17.01.1951

Date of Appointment :

21.07.1997

DIN No.:

01985482

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U74999AP1993PTC016732	GOOD-HEALTH AGROTECH PRIVATE LIMITED	Director	14/12/1993	14/12/1993	-	Active	NO
2	U01711AP1996PTC024091	AMIT COTTONS PRIVATE LIMITED	Managing director	15/05/1996	15/05/1996	-	Active	NO
3	U18100AP1997PTC027584	KGF COTTONS PRIVATE LIMITED	Director	21/07/1997	21/07/1997	-	Active	NO
4	U85110GJ1995PLC067038	RAJSHRI PACKAGERS LIMITED	Director	18/04/2005	18/04/2005	08/05/2009	Amalgamated	NO
5	U17121AP2006PTC051660	JAGADAMBHA COTTON INDUSTRIES PRIVATE LIMITED	Director	07/08/2008	07/08/2008	-	Active	NO
6	U17110MH2002PTC136843	MAHESH COTTON PRESSING PRIVATE LIMITED	Director	01/10/2009	01/10/2009	-	Active	NO
7	U01405MH2001PTC134006	MAHESH AGRO PROCESSING (INDIA ) PRIVATE LIMITED	Director	01/10/2009	01/10/2009	-	Active	NO
8	U17200AP2011PTC075172	VAS FLORA COTTONS AND YARNS PRIVATE LIMITED	Director	24/06/2011	24/06/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Vinod Kumar Agarwal	388500
Subhash Chandra Agarwal	313500
Kailash Chandra Agarwal	323500
Banwarilal Agarwal	287500
Bhanwaribai Agarwal	437500
Kusum Devi Agarwal	272500
Lata Devi Agarwal	441000
Komal Devi Agarwal	372500
Amit Kumar Agarwal	90000
Akash Kumar Agarwal	107000
Sandeep Kumar Agarwal	263000
Akshay Kumar Agarwal	146000
Nikhil Agarwal	129000
Sagar Agarwal	159500
Megha Agarwal	103000
Banwarilal Agarwal HUF	28000
Vinod Kumar Agarwal HUF	20000
Subhash Chandra Agarwal	18000
Total	3900000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Edible Oils, Cotton Bales and their By-Products.

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Licensed Capacity / Installed Capacity	Actual Production
Ginns	36 Nos	100 Kgs Lint / per hour per gin
Bales Pressing	1 unit	20-22 Bales per hour

Note:

Installed capacity is as estimated and certified by the Management.

GENERAL INFORMATION

Customers :

Ø Olam Exports India Limited, Delhi

Ø Sri Shanmugavel Group of Mills

Ø Sri Balakumaran Cloth Mills Private Limited, Udumalpet, T.N

Ø Cotton Emporium, Kolkata

Ø Four Star International, Kolkata

Ø Sri Salasar Balaji Agro Tech Private Limited, Adilabad

Ø Sri Gomathi Mills Private Limited, Tirunelveli

No. of Employees :

Not Available

Bankers :

State Bank of Mysore. Industrial Finance Branch, 2nd Floor, My Home Jupally, Ameerpet, Hyderabad - 500016, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term loans from banks	270.615	126.688
Total	270.615	126.688

Banking Relations :	--
Financial Institution :	Andhra Pradesh State Finance Corporation, 5-9-194, Chirag Ali Lane, PB No.165, Hyderabad - 500001, Andhra Pradesh, India
Auditors :
Name :	P S Rander and Company Chartered Accountants
Address :	1-4-34, Dwaraka Nagar, Nizambad – 503001, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AABFP9373Q

CAPITAL STRUCTURE

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
6,000,000	Equity Shares	Rs. 10/- each	Rs. 60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,900,000	Equity Shares	Rs. 10/- each	Rs. 39.000 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
6,000,000	Equity Shares	Rs. 10/- each	Rs. 60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,150,000	Equity Shares	Rs. 10/- each	Rs. 41.500 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		41.500	39.000	27.000
2] Share Application Money		6.026	13.526	1.826
3] Reserves & Surplus		102.387	81.547	66.715
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		149.913	134.073	95.541
LOAN FUNDS
1] Secured Loans		270.615	126.688	227.066
2] Unsecured Loans		0.000	0.000	0.300
TOTAL BORROWING		270.615	126.688	227.366
DEFERRED TAX LIABILITIES		2.300	0.000	0.000
TOTAL		422.828	260.761	322.907
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		137.367	142.294	56.509
Capital work-in-progress		13.232	0.000	0.000
INVESTMENT		1.429	10.041	1.500
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	222.351	165.145	278.431
	Sundry Debtors	187.494	119.813	335.110
	Cash & Bank Balances	98.119	32.611	76.966
	Other Current Assets	32.665	4.027	0.000
	Loans & Advances	65.281	43.987	79.687
Total Current Assets		605.910	365.583	770.194
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	311.451	242.384	496.317
	Other Current Liabilities	22.035	8.183	0.000
	Provisions	1.624	6.590	8.979
Total Current Liabilities		335.110	257.157	505.296
Net Current Assets		270.800	108.426	264.898
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		422.828	260.761	322.907

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	2168.996	2596.807
		Other Income		5.500
		TOTAL (A)	2168.996	2602.307
Less	EXPENSES
		Cost of goods sold		2379.190
		Processing or Manufacturing		58.787
		Personnel		6.673
		Administrative		5.924
		Selling		92.797
		Prior Period Adjustments		29.718
		TOTAL (B)	2154.184	2573.089
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(Including Finance Expenses, Depreciation and Tax)	29.218
Less	FINANCIAL EXPENSES (D)			23.704
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			5.514
Less/ Add	DEPRECIATION/ AMORTISATION (F)			0.944
	PROFIT BEFORE TAX (E-F) (G)			4.570
Less	TAX (H)			2.653
	PROFIT AFTER TAX (G-H) (I)		14.812	1.917
	Earnings Per Share (Rs.)		3.80	0.71

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	0.68	0.07
Net Profit Margin (PBT/Sales)	(%)	NA	NA	0.18
Return on Total Assets (PBT/Total Assets}	(%)	NA	NA	0.55
Return on Investment (ROI) (PBT/Networth)		NA	NA	0.05
Debt Equity Ratio (Total Debt/Networth)		1.81	0.94	2.38
Current Ratio (Current Asset/Current Liability)		1.81	1.42	1.52

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 two years	Yes
12]	Profitability for last two 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	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U18100AP1997PTC027584
Name of the company	KGF COTTONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Niral Road, Bhainsa – 504103, Andhra Pradesh, India Email: l.d.reddy@gmail.com
This form is for	Modification of charge
Charge identification number of the modified	90128461
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	State Bank of Mysore. Industrial Finance Branch, 2nd Floor, My Home Jupally, Ameerpet, Hyderabad - 500016, Andhra Pradesh, India Email: srinighat@rediffmail.com
Nature of description of the instrument creating or modifying the charge	1. Joint deed of hypothecation - form CF 2 2. Inter se agreement - form CF 3 3. Sharing pattern among the consortium member banks
Date of instrument Creating the charge	13.03.2012
Amount secured by the charge	Rs. 584.600 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest On Cash Credit - State Bank of Mysore - 4.75% above Base Rate, presently 15.25% p.a., with monthly rests and - State Bank of India - 6.75% above Base Rate, presently 16.75% p.a., with monthly rests. Terms of Repayment Validity of sanction - 12 months from the date of respective sanctions, being Working Capital limits Margin For Cash Credit and Export Packing Credit - On Stocks - 25% } For Cash Credit - On Book-Debts - 50%} Common to both the banks in the Consortium For L/Cs - 15% Upfront Cash margin } Extent and Operation of the charge 1. Hypothecation 1st charge, on Pari Passu basis, on the entire current assets of the company comprising Stocks of Raw Materials, Semi finished goods, Finished goods and Consumable Stores and Spares and Receivables, with State Bank of India 2. Pari passu charge on the Fixed Assets of the company comprising Buildings, Plant and Machinery etc., with State Bank of India.
Short particulars of the property charged	Stocks of Raw Materials, Semi finished goods, Finished goods, Consumable Stores and Spares etc., stored at Company's office, factory premises at Sy.Nos.216/2/4, 218/1/3 and 219/1/3, at Bhainsa Stocks of Raw materials, Semi finished goods, Finished goods, Consumable stores & spares stored with Job workers, or in transit, lying in sea/airport, bonded ware house etc. Fixed Assets of the company comprising Buildings, Plant and Machinery, Elec installations etc., at Sy.Nos.216/2/4 and 219/1/3, Bhainsa, Adilabad District.
Date of Modification	30.10.2009
Particulars of the present modification	The consortium working capital limits of the company are reduced from the earlier Rs.1096.000 Millions to Rs.584.600 Millions, consequent to a correction in the exposure level of forward contract limit.

FIXED ASSETS:

Ø Land

Ø Buildings

Ø Plant and equipment

Ø Furniture and fixtures

Ø Vehicles

Ø Office equipment

Ø Other equipments

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. 56.74
UK Pound	1	Rs. 88.53
Euro	1	Rs. 75.20

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.