MIRA INFORM REPORT

Report Date :

17.09.2013

IDENTIFICATION DETAILS

Name :	KEDAR COTSPIN PRIVATE LIMITED
Registered Office :	Plot No.553, Opposite Kadamwala Textiles, Behind Gujco Masol Godown, Narol-Vatva Road, Ahmedabad – 382 405 , Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	31.01.2005
Com. Reg. No.:	04-045377
Capital Investment / Paid-up Capital :	Rs.4.000 Millions
CIN No.: [Company Identification No.]	U17110GJ2005PTC045377
TAN No.: [Tax Deduction & Collection Account No.]	AHMK02857B
PAN No.: [Permanent Account No.]	AACCK5106G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Cotton Yarn.
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 37000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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 :	Plot No.553, Opposite Kadamwala Textiles, Behind Gujco Masol Godown, Narol-Vatva Road, Ahmedabad – 382 405, Gujarat, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	devcotspin@gmail.com
Branch Office :	112, Ground Floor, New Cloth Market, Out Side Raipur Gate, Sarangpur, Ahmedabad – 380 002, Gujarat, India
Tel. No.:	91-79-22166447

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Suresh Kumar Agarwal

Designation :

Director

Address :

38, New Cloth Market, outside Raipur Gate, Ahmedabad – 380 002, Gujarat, India

Date of Appointment :

11.04.2009

DIN No.:

00325160

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	U17110GJ1988PTC011045	KEDAR FABRICS PRIVATE LIMITED	Director	19-01-96	19-01-96	24-04-09	Active	NO
2	U25199GJ1989PTC012032	PRIYAM TEXTILE PRIVATE LIMITED	Director	02-04-96	02-04-96	15-04-11	Active	NO
3	U17119GJ1988PTC010474	MANVESH FABRIC PRIVATE LIMITED	Director	11-05-01	11-05-01	15-04-11	Active	NO
4	U17110GJ2005PTC045377	KEDAR COTSPIN PRIVATE LIMITED	Director	11-04-09	11-04-09	-	Active	NO
5	U17119GJ1993PTC020200	DEV COTSPIN PRIVATE LIMITED	Director	28-04-09	28-04-09	-	Active	NO

Name :

Mr. Mukesh Kumar Devkarandas Agarwal

Designation :

Director

Address :

38, New Cloth Market, outside Raipur Gate, Ahmedabad – 380 002, Gujarat, India

Date of Appointment :

16.01.2006

DIN No.:

00334365

MAJOR SHAREHOLDERS

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Alka Satish kumar	5000
Devkarandas Kedarnath HUF	25000
Fuladevi Devkarandas	50000
Satyabhama Suresh Kumar	5000
Mukesh Kumar Devkarandas	50000
Suresh Kumar Devkarandas	50000
Suresh Kumar Devkarandas HUF	25000
Satish Devkarandas HUF	25000
Nupur Agarwal	17500
Mukesh Devkarandas HUF	25000
Satish Devkarandas Agarwal	50000
Sarla Mukesh Kumar Agarwal	2500
Jankidas and Sons HUF	2500
D.J Agarwal HUF	2500
D.R Bros. HUF	2500
J. Dewaram HUF	2500
M. Dulichand HUF	4000
Devkarandas Kedarnath Agarwal	50000
Jayprakash Devkarandas Agarwal	6000
Total	400000

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 :	Manufacturer of Cotton Yarn.
Products :	· Cotton Yarn · P.C. Yarn · Ready Cloth · Fabrics

PRODUCTION: (31.03.2012)

Particulars	31.03.2012
	Quantity
Yarn [Including Cotton Waste (Kgs.)]	245627
GREY [Mtrs.]	80782

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of India, New Cloth Market Branch, outside Raipur Gate, Ahmedabad – 380 002, Gujarat, India

· The Kalupur Commercial co-operative Bank Limited, Chokha Bazaar, Kalupur, Ahmedabad – 380 002, Gujarat, India

· HDFC Bank Limited

Facilities :

SECURED LOANS	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Short Term Borrowings
Cash Credit – Bank of India (Secured against hypothecation of stocks and book debts)	14.549	14.820
Total	14.549	14.820

Note:

The Cash Credit Facility of India is Primarily secured by Hypothecation of stock and book Debts. Further cash Credit facility has Collateral security of EM of factory premises and Hypothecation of plant and machinery and other assets of the company. It is also secured by personal guarantee of both the director namely Mr. Sureshkumar D. Agarwal and Mr. Satishkumar Agarwal.

Banking Relations :	--
Auditors :
Name :	Nahta Jain and Associates Chartered Accountants
Address :	211, 1^st Floor, New Cloth Market, Ahmedabad – 380 002, Gujarat, India
PAN No.:	AABFN3524D

CAPITAL STRUCTURE

AS ON 29.09.2012

Authorised Capital:

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/- each	Rs.4.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/- each	Rs.4.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	4.000	4.000
(b) Reserves & Surplus	5.316	4.916
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	9.316	8.916
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.288	0.356
(c) Other long term liabilities	28.960	39.576
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	29.248	39.932
(4) Current Liabilities
(a) Short term borrowings	14.549	14.820
(b) Trade payables	1.533	4.988
(c) Other current liabilities	1.506	3.790
(d) Short-term provisions	0.275	0.928
Total Current Liabilities (4)	17.863	24.526
TOTAL	56.427	73.374
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	8.548	9.820
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	21.584	21.222
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.238	0.238
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.582	0.332
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	30.952	31.612
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	6.590	17.382
(c) Trade receivables	15.983	21.130
(d) Cash and cash equivalents	0.022	0.046
(e) Short-term loans and advances	2.880	3.204
(f) Other current assets	0.000	0.000
Total Current Assets	25.475	41.762
TOTAL	56.427	73.374

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.990
2] Share Application Money		0.000
3] Reserves & Surplus		3.159
4] (Accumulated Losses)		0.000
NETWORTH		4.149
LOAN FUNDS
1] Secured Loans		3.929
2] Unsecured Loans		24.919
TOTAL BORROWING		28.848
DEFERRED TAX LIABILITIES		0.373
TOTAL		33.370
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.675
Capital work-in-progress		7.062
INVESTMENT		0.238
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.414
	Sundry Debtors	11.644
	Cash & Bank Balances	0.096
	Other Current Assets	0.000
	Loans & Advances	4.152
Total Current Assets		23.306
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.354
	Other Current Liabilities	0.000
	Provisions	0.560
Total Current Liabilities		7.914
Net Current Assets		15.392
MISCELLANEOUS EXPENSES		0.003
TOTAL		33.370

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	101.375	136.098	96.953
		Other Income	0.312	0.299	0.351
		TOTAL (A)	101.687	136.397	97.304
Less	EXPENSES
		Cost of Materials Consumed	31.175	63.205
		Purchase of Traded Goods	48.472	58.958
		Changes in Inventories of finished Goods, Work-in-progress and stock-in-trade	9.189	(8.458)
		Employee benefits expenses	1.653	1.561
		Other Expenses	7.325	14.065
		TOTAL (B)	97.814	129.331	92.171
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.873	7.066	5.133
Less	FINANCIAL EXPENSES (D)		1.939	3.093	2.069
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.934	3.973	3.064
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.328	1.306	1.264
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		0.606	2.667	1.800
Less	TAX (H)		0.207	0.910	0.611
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		0.399	1.757	1.189
	Earnings Per Share (Rs.)		1.00	4.39	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.39	1.29	1.22
Net Profit Margin (PBT/Sales)	(%)	0.60	1.96	1.86
Return on Total Assets (PBT/Total Assets}	(%)	1.75	5.17	5.30
Return on Investment (ROI) (PBT/Networth)		0.07	0.30	0.20
Debt Equity Ratio (Total Debt /Networth)		1.56	1.66	6.95
Current Ratio (Current Asset/Current Liability)		1.43	1.70	2.94

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	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	No

NOTE : The Registered office of the company has been shifted from 38, New Cloth Market, Outside Raipur Gate, Ahmedabad – 380 002, Gujarat, India to the present address w.e.f. 01.06.2011

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10252990	22/10/2010	20,000,000.00	BANK OF INDIA	NEW CLOTH MARKET BRANCH, NEW CLOTH MARKET, O/S RAIPUR GATE, AHMEDABAD – 380 002, GUJARAT, INDIA	B00532663

FIXED ASSETS:

· Building

· Plant and Machinery

· Air Compressor

· Blow Room

· Card Can

· Card Machine

· Cone Winding

· Doff Basket

· Draw Frame

· Ring Frame

· Inter Speed Frame

· Scale

· Sample Cutting Machine

· Folding Machine

· Stitching Machine

· Trolly

· Electric Installation

· Air Condition

· Computer

· New Scooter

· Boiler Chimani WIP

· Calend Machine

· Jiggar Machine

· O.O. Machine

· Old Drying Machine

· Old JT Machine

· Open Stander Machine

· Polymerizing Machine

· Screen Printing Machine

· Dranage Line WIP

· Pollution Plant

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.62.48
UK Pound	1	Rs.99.23
Euro	1	Rs.83.50

INFORMATION DETAILS

Report Prepared by :

NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--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
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.