MIRA INFORM REPORT

Report Date :

16.03.2013

IDENTIFICATION DETAILS

Name :	D.R.B. COMMODITIES (INDIA) PRIVATE LIMITED
Registered Office :	903-904, Embassy Towers, Opposite Jubilee Garden, Jawahar Road, Rajkot – 360 001, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.09.2005
Com. Reg. No.:	04-046782
Capital Investment / Paid-up Capital :	Rs.12.009 millions
CIN No.: [Company Identification No.]	U51100GJ2005PTC046782
PAN No.: [Permanent Account No.]	AACCD2313G
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of trading of agricultural products and wind power generation and its selling and distribution.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 485000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The rating takes into account the competitive and fragmented nature of the industry which exerts pressure on margins and exposure to regulatory risk. The company is susceptible to price fluctuations and agro climatic conditions. There appears sharp dip in the turnover and profit during 2012 due to unstable conditions in the commodities market. 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	ICRA
Rating	Short Term Rating: A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	August, 2012

Rating Agency Name	ICRA
Rating	Long Term Rating: BB
Rating Explanation	Moderate risk of default.
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 :	903-904, Embassy Towers, Opposite Jubilee Garden, Jawahar Road, Rajkot – 360 001, Gujarat, India
Tel. No.:	91-281-2223731 (Direct) 91-281-2222991/ 992/ 993/ 2229183
Fax No.:	91-281-2220409/ 2230505
E-Mail :	nhkothari@dmlgroup.in info@dmlakhani.com kaka@dmlakhani.com
Website :	http://www.dmlgroup.in
Branch Office :	B-604, Sagar Tech Plaza, Sakinaka Junction, Andheri (East), Mumbai – 400 075, Maharashtra, India

DIRECTORS

As on 29.09.2012

Name :	Mr. Harishkumar Jayantilal Lakhani
Designation :	Director
Address :	“Vrundavan”, Tapovan Society, Near Amin Marg, Rajkot – 360 002, Gujarat, India
Date of Birth/Age :	13.05.1959
Qualification :	Under Graduate
Date of Appointment :	16.09.2005
DIN No.:	01658810
PAN No.:	AAQPL3256P
Name :	Mrs. Sejal Darshanbhai Lakhani
Designation :	Director
Address :	“Vrundavan”, Tapovan Society, Near Amin Marg, Rajkot – 360 002, Gujarat, India
Date of Birth/Age :	25.09.1979
Qualification :	B. Com
Date of Appointment :	22.02.2011
DIN No.:	03437694
PAN No.:	AAQPL3197B
Name :	Ms. Dolly Harishkumar Lakhani
Designation :	Director
Address :	“Vrundavan”, Tapovan Society, Near Amin Marg, Rajkot – 360 002, Gujarat, India
Date of Birth/Age :	14.03.1984
Qualification :	MBA
Date of Appointment :	22.11.2006
DIN No.:	00719329
PAN No.:	ABFPL9905M

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Harishkumar Jayantilal Lakhani	108100
Meenaben Harishkumar Lakhani	101300
Darshan Harishkumar Lakhani	95000
Chirag Harishkumar Lakhani	88000
Dolly Harishkumar Lakhani	88000
Pravinaben Narendra Davda	10000
Narendra Nanjibhai Davda	8000
Sejal Darshan Lakhani	70000
DML Exim Private Limited, India	632500
Total	1200900

As on 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	52.669
Directors or relatives of directors	45.832
Other top fifty shareholders	1.499
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of trading of agricultural products and wind power generation and its selling and distribution.

Products :

Item Code No. (ITC Code)	98010012
Product Description	Sugar

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Oriental Bank of Commerce, Aum Planet, Ground Floor,

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Loans taken for vehicles (Car Audi A6)	1.144	2.183
SHORT TERM BORROWINGS
Working capital loans from banks	368.478	0.000
Total	369.622	2.183

Banking Relations :	--
Auditors :
Name :	N.M. Unadkat and Company Chartered Accountants
Address :	306-307, Everest Complex, Opposite Shastri Maidan, Subhash Road, Rajkot – 360 001, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AAFPU7460F
Holding Company :	DML Exim Private Limited, India (CIN No.: U55100GJ1988PTC011223)
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	DML World Trade Private Limited, India (CIN No.: U51100GJ2005PTC046358) D.M. Enterprise, India

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1200900	Equity Shares	Rs.10/- each	Rs.12.009 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		12.009	12.009	12.009
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		109.352	81.049	0.000
4] (Accumulated Losses)		0.000	0.000	(4.501)
NETWORTH		121.361	93.058	7.508
LOAN FUNDS
1] Secured Loans		369.622	2.183	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		369.622	2.183	0.000
DEFERRED TAX LIABILITIES		12.025	6.890	0.000
TOTAL		503.008	102.131	7.508
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		47.319	56.011	0.950
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.010	0.010	0.010
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	341.079	0.000	0.000
	Sundry Debtors	284.497	0.008	1.050
	Cash & Bank Balances	58.238	216.117	2.940
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	43.661	13.151	4.941
Total Current Assets		727.475	229.276	8.931
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	259.570	56.534	1.595
	Other Current Liabilities	11.810	119.404	0.635
	Provisions	0.416	7.228	0.153
Total Current Liabilities		271.796	183.166	2.383
Net Current Assets		455.679	46.110	6.548
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		503.008	102.131	7.508

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	829.882	3235.770	24.643
		Other Income	78.141	30.783	0.113
		TOTAL (A)	908.023	3266.553	24.756
Less	EXPENSES
		Purchase	856.817	3136.606	22.645
		Operative and Administrative Expenses			0.539
		TOTAL (B)	856.817 (including financial expenses)	3136.606 (including financial expenses)	23.184
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)				1.572
Less	FINANCIAL EXPENSES (D)				0.098
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		51.206	129.947	1.474
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.128	0.224	0.572
	PROFIT BEFORE TAX (E-F) (G)		42.078	129.723	0.902
Less	TAX (H)		13.775	44.173	0.154
	PROFIT AFTER TAX (G-H) (I)		28.303	85.550	0.748
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		81.049	(4.501)	(5.249)
	BALANCE CARRIED TO THE B/S		109.352	81.049	(4.501)
	EARNINGS IN FOREIGN CURRENCY		766.885	3041.400	Nil
	Earnings Per Share (Rs.)		23.57	71.24	0.62

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.12	2.62	3.02
Net Profit Margin (PBT/Sales)	(%)	5.07	4.01	3.66
Return on Total Assets (PBT/Total Assets}	(%)	5.43	45.47	9.13
Return on Investment (ROI) (PBT/Networth)		0.35	1.39	0.12
Debt Equity Ratio (Total Debt/Networth)		3.05	0.02	0.00
Current Ratio (Current Asset/Current Liability)		2.68	1.25	3.75

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	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	Yes
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

NATURE OF OPERATIONS:

Subject Rajkot, is engaged in Trading activities of Agricultural Products, Wind Power Generation and Brokerage activities in Commodities Exchange Market.

OPERATION:

Due to unstable conditions in the commodities market for selling of agricultural products, revenue from operations of the Company have decreased to Rs.829.882 millions as compared to Rs.3235.770 millions of previous year 2010-11. However, the Company has generated considerable revenue from the business of wind power generation and its selling and distribution amounting to Rs.4.991 millions as compared to Rs.0.008 million of the previous year 2010-11. Furthermore, other income of the Company increased to Rs.78.141 millions from Rs.30.783 millions of previous year. Substantial part of other income amounting to Rs.11.820 millions is earned from Export Benefits. Moreover, the Company reported the Net Profit (After Tax) of Rs.28.303 millions as compared to Net Profit (After Tax) of Rs.85.550 millions of the previous year 2010-11.

FIXED ASSETS:

· Furniture and Fixtures

· Vehicles

· Motor Vehicles

· Office Equipment

· Computer Equipments

· 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.54.16
UK Pound	1	Rs.81.74
Euro	1	Rs.70.50

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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		27

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.