MIRA INFORM REPORT

Report Date :

12.12.2014

IDENTIFICATION DETAILS

Name :	PRADEEP FIBERS PRIVATE LIMITED
Registered Office :	Plot No.100, CIDCO, N-4/F-1, Manuprabha, Guru Sahani Nagar, Garkheda, Aurangabad – 431 003, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	24.08.2004
Com. Reg. No.:	11-148174
Capital Investment / Paid-up Capital :	Rs.28.000 Million
CIN No.: [Company Identification No.]	U17110MH2004PTC148174
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	NSKP02294F
PAN No.: [Permanent Account No.]	AADCP3567F
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Cotton, Cotton Seed and Oil Cakes.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 270000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track. Management has reported a sharp decline in revenues, low profit margin as well as marginal working capital intensive operations during FY14. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. In view of experienced promoters, the company can be considered for business dealings with some cautions.

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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	CARE
Rating	Long Term Bank Facilities = BB-
Rating Explanation	Moderate risk of default and high credit risk.
Date	March 25, 2014

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 31-03-2014.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Manish Rathod
Designation :	Account Manager
Contact No.:	91-7774079155
Date :	11.12.2014

LOCATIONS

Registered Office :	Plot No.100, CIDCO, N-4/F-1, Manuprabha, Guru Sahani Nagar, Garkheda, Aurangabad – 431 003, Maharashtra
Tel. No.:	91-240-2453285 / 287
Mobile No.:	91-7774079155 (Mr. Manish)
Fax No.:	91-240-2453288
E-Mail :	pradeepfibers@yahoo.co.in
Website :	www.pradeepfibers.in
Location :	Owned
Factory 1/ Branch Office :	Gate No. 449, Dongargaon, Sillod, District Aurangabad, Maharashtra, India
Tel. No.:	91-2430-222159
Fax No.:	91-2430-222159
Area :	3 Hector
Location :	Leased
Factory 2 :	Gate No.241, 242, Chikani, Georai, District Beed, Maharashtra, India
Area :	3.20 Hector
Location :	Owned

DIRECTORS

As on 30.09.2014

Name :

Mr. Govind Maganlal Tayal

Designation :

Director

Address :

Warla Road, Sendhwa, Madhya Pradesh, India

Date of Appointment :

24.08.2004

DIN No.:

01877025

Name :

Mr. Mohanlal Maganlal Tayal

Designation :

Director

Address :

Warla Road, Sendhwa, Madhya Pradesh, India

Date of Appointment :

24.08.2004

DIN No.:

01877027

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	U17110MH2004PTC148174	PRADEEP FIBERS PRIVATE LIMITED	Director	24/08/2004	24/08/2004	-	Active	NO
2	U17110MP2011PTC026337	Pradeep Cotton Private Limited	Director	07/07/2011	07/07/2011	-	Active	NO

Name :

Mr. Ashish Mohanlal Tayal

Designation :

Director

Address :

Plot No. 21, N-3, CIDCO, Aurangabad, Maharashtra, India

Date of Appointment :

24.08.2004

DIN No.:

01877032

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	U17110MH2004PTC148174	PRADEEP FIBERS PRIVATE LIMITED	Director	24/08/2004	24/08/2004	-	Active	NO
2	U17110MP2011PTC026337	Pradeep Cotton Private Limited	Director	07/07/2011	07/07/2011	-	Active	NO
3	U17301MP2012PTC028885	MST Fibers India Private Limited	Director	26/07/2012	26/07/2012	-	Active	NO

Name :

Mr. Abhishek Tayal

Designation :

Director

Address :

Warla Road, Sendhwa, Madhya Pradesh, India

Date of Appointment :

24.08.2004

DIN No.:

05201291

MAJOR SHAREHOLDERS

As on 30.09.2014

Names of Shareholders	No. of Shares
Pradeep Pushalal Tayal	180250
Mohanlal Maganlal Tayal	267750
Govind Maganlal Tayal	215250
Ashish Mohanlal Tayal	40250
Rishabh Kishor Tayal	3500
Sunilkumar Pushalal Tayal	5250
Abhishek Govind Tayal	5250
Manudevi Pushalal Tayal	212000
Shashi Govind Tayal	275000
Anju Sunil Tayal	245000
Veena Pradeep Tayal	245000
Chanda Kishor Tayal	245000
Sharmila Girish Tayal	245000
Vidya Mohan Tayal	245000
Mohanlal Maganlal Agrawal HUF	3500
Govind Maganlal Agrawal HUF	3500
Girish Maganlal HUF	3500
Kishor Pushalal HUF	3500
Praddep Pushalal HUF	3500
Sunil Pushalal Tayal HUF	3500
Pushalal Sarbulal Tayal HUF	3500
Sarbulal Gangashay HUF	3500
Girish Maganlal Agrawal	277500
Kishor Pushalal Tayal	65000
Total	2800000

As on 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Cotton, Cotton Seed and Oil Cakes.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

50 (Approximately)

Bankers :

· State Bank of India, Industrial Finance Branch, Jaggi’s Building, Jalna Road, Aurangabad – 431005, Maharashtra, India

· State Bank of Indore, Kranti Chowk Branch, Aurangabad – 431001, Maharashtra, India

· IDBI Bank Limited, IDBI Tower WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra, India

· State Bank of Maharashtra

· State Bank of Hyderabad

· Shri Siddeshwar Urban Co-Operative Bank

· The Vaijapur Merchant Co-operative Bank Limited

· Indian Bank

· HDFC Bank Limited

· Axis Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Car loan from Axis Bank	0.068	0.785
SHORT TERM BORROWINGS
Working capital facilities repayable on demand cash credit	64.134	120.119
Overdraft against FDR	0.000	0.786
Total	64.202	121.690

Auditors :
Name :	Mandovra and Associates Chartered Accountants
Address :	2, White Church Colony, Opposite Aaykar Bhavan, Indore – 452001, Madhya Pradesh, India
Tel. No.:	91-731-2701600-603
PAN No.:	AAGFM7993L
Memberships :	---
Collaborators :	---
Enterprises owned or significantly influenced by key managerial personnel or their relatives :	· Praddep Cotton Private Limited · Praddep Cotex Industries · Praddep Cotton Corporation · Godavari Cotton Industries

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10 /-each	Rs.30.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2800000	Equity Shares	Rs.10 /-each	Rs.28.000 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	28.000	28.000	28.000
(b) Reserves & Surplus	69.027	70.670	63.404
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	97.027	98.670	91.404
(3) Non-Current Liabilities
(a) long-term borrowings	23.476	125.584	167.782
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	23.476	125.584	167.782
(4) Current Liabilities
(a) Short term borrowings	64.135	120.905	143.572
(b) Trade payables	26.936	46.834	61.230
(c) Other current liabilities	5.209	7.987	7.967
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	96.280	175.726	212.769
TOTAL	216.783	399.980	471.955
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	20.451	27.600	31.230
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.003	0.003	0.003
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.875	6.318	3.385
Total Non-Current Assets	21.329	33.921	34.618
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	52.796	181.899	256.072
(c) Trade receivables	83.325	131.609	134.699
(d) Cash and cash equivalents	24.514	11.651	7.528
(e) Short-term loans and advances	34.819	40.900	39.038
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	195.454	366.059	437.337
TOTAL	216.783	399.980	471.955

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income	803.343	2018.599	2024.064
	Other Income	8.977	1.965	NA
	TOTAL	812.320	2020.564	NA
Less	EXPENSES
	Cost of Materials Consumed	315.818	1453.162	NA
	Purchases of Stock-in-Trade	301.708	267.806	NA
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	98.975	81.357	NA
	Employees benefits expense	9.387	20.769	NA
	Other expenses	59.138	153.352	NA
	TOTAL	785.026	1976.446	NA
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	27.294	44.118	NA
Less	FINANCIAL EXPENSES	13.381	28.890	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	13.913	15.228	14.434
Less/ Add	DEPRECIATION/ AMORTISATION	2.877	4.061	4.537
	PROFIT/ (LOSS) BEFORE TAX	11.036	11.167	9.897
Less	TAX	3.626	3.640	3.986
	PROFIT/ (LOSS) AFTER TAX	7.410	7.527	5.911
	Earnings / (Loss) Per Share (Rs.)	2.65	2.69	2.11

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Sales	(%)	0.92	0.37	0.29
Operating Profit Margin (PBDIT/Sales)	(%)	3.39	2.18	NA
Return on Total Assets (PBT/Total Assets}	(%)	5.09	2.79	2.10
Return on Investment (ROI) (PBT/Networth)		0.11	0.11	0.11
Debt Equity Ratio (Total Liability/Networth)		0.90	2.50	3.41
Current Ratio (Current Asset/Current Liability)		2.03	2.08	2.06

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	28.000	28.000	28.000
Reserves & Surplus	63.404	70.670	69.027
Net worth	91.404	98.670	97.027
long-term borrowings	167.782	125.584	23.476
Short term borrowings	143.572	120.905	64.135
Total borrowings	311.354	246.489	87.611
Debt/Equity ratio	3.406	2.498	0.903

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2024.064	2018.599	803.343
		(0.270)	(60.203)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	2024.064	2018.599	803.343
Profit	5.911	7.527	7.410
	0.29%	0.37%	0.92%

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
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

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10485431	29/01/2014	80,000,000.00	STATE BANK OF INDIA	Industrial Finance Branch, Jaggi's Building, Jalna Road, Aurangabad, Maharashtra - 431001, INDIA	C00669242

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Unsecured loans from shareholders, directors and their relatives	23.408	124.799
Total	23.408	124.799

OPERATIONS

During the year, the turnover of the company has slightly gone down by 0.40%, still profit before depreciation has been increased by 5.5% and profit after tax has been increased by 22.90%. In the highly fluctuating market, your company has been able to sustain its turnover and improve the profitability. The export turnover has also been slightly increased as compared to previous year and earned foreign currency for the country. Your directors are taking action and hoping for the increase in turnover and also profitability and will become successful in taking advantage of the bullish trend going on in the cotton textile industry throughout the world.

FIXED ASSETS

· Freehold Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipment

· Computers

· Vehicles

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 records 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.62.20
UK Pound	1	Rs.97.80
Euro	1	Rs.77.48

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	SUB
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--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		29

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.