MIRA INFORM REPORT

Report Date :

19.07.2014

IDENTIFICATION DETAILS

Name :

KOTAK COMMODITY SERVICES LIMITED

KOTAK GINNING AND PRESSING INDUSTRIES DIVISION OF KOTAK COMMODITY SERVICES LIMITED

Formerly Known As :

KOMAL FINANCE LIMITED

Registered Office :

1^st Floor, Nirlon House, Dr. Annie Besant Road, Worli, Mumbai – 400 025, Maharashtra

Country :

India

Financials (as on) :

31.03.2013

Date of Incorporation :

14.01.1987

Com. Reg. No.:

11-042230

Capital Investment / Paid-up Capital :

Rs.24.307 millions

CIN No.:

[Company Identification No.]

U65910MH1987PLC042230

PAN No.:

[Permanent Account No.]

AAACK1581D

Legal Form :

A Closely Held Public Limited Liability Company

Line of Business :

Segment	Principal Activity
Broking	Commodities Broking and includes related Fixed Deposits
Treasury and Trading	Borrowings, Proprietary Trading in commodity stocks/ futures including Export of Cotton and Other Commodities, Ginning and Pressing of Cotton and Agency business.

No. of Employees :

Information declined by the Management.

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1656000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. There seems sharp dip in the profit of the company during 2013. However, networth of the company is satisfactory. General financial position of the company is normal and acceptable for business dealing. Trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct. The company can be considered normal for business dealings at usual trade terms and conditions.

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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

NEWS

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before. A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two. While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs.2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers with hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Short Term Debt Programme: A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk.
Date	January, 2013

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 DECLINED

Management non-cooperative

(Tel. No.: 91-22-66528989)

LOCATIONS

Registered Office :	1^st Floor, Nirlon House, Dr. Annie Besant Road, Worli, Mumbai – 400 025, Maharashtra, India
Tel. No.:	91-22-66528815
Fax No.:	91-22-24924689
E-Mail :	shripal.shah@kotakcommodities.com

DIRECTORS

AS ON 27.09.2013

Name :

Mr. Suresh Amritlal Kotak

Designation :

Director

Address :

Shakti Villa, 14, Laburnum Road, Gamdevi, Mumbai – 400 007, Maharashtra, India

Date of Birth/Age :

02.10.1933

Date of Appointment :

06.11.2003

DIN No.:

00019333

PAN No.:

AABPK6548A

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	U34300MH1968PTC013997	ALLIED AUTO ACCESSORIES PRIVATE LIMITED	Director	27-04-1968	27-04-1968	-	Active	NO
2	U91110MH1921NPL000940	COTTON ASSOCIATION OF INDIA	Director	22-07-1985	22-07-1985	13-12-2008	Active	NO
3	U24100MH1968PLC014141	KOTAK CHEMICALS LIMITED	Director	07-04-1990	07-04-1990	-	Active	NO
4	U74999MH1969PLC014218	INDIAN MERCHANTS CHAMBER	Director	29-04-1993	29-04-1993	-	Active	NO
5	U51900MH1995PLC094071	KOTAK AND COMPANY LIMITED	Director	01-11-1995	01-11-1995	-	Active	NO
6	U74110MH1995PTC094748	KOTAK TRUSTEE COMPANY PRIVATE LIMITED	Director	23-11-1995	23-11-1995	-	Active	NO
7	U51900MH1959PTC011548	ASIAN MACHINERY AND EQUIPMENT PRIVATE LIMITED	Director	04-01-2000	04-01-2000	-	Active	NO
8	U17120MH1994PTC082794	KOTAK GINNING AND PRESSING INDUSTRIES PRIVATE LIMITED	Director	04-01-2000	04-01-2000	-	Active	NO
9	U75144MH2001PTC131527	INSUREKOT SPORTS PRIVATE LIMITED	Director	09-04-2001	09-04-2001	-	Active	NO
10	U65910MH1987PLC045544	KOMAF FINANCIAL SERVICES LIMITED	Director	18-12-2002	18-12-2002	15-12-2006	Active	NO
11	L15420MH1931PLC001797	BAJAJ HINDUSTHAN LIMITED	Director	27-12-2002	27-12-2002	23-09-2008	Active	NO
12	U72900MH2000PLC129228	ESUGARINDIA LIMITED	Director	28-03-2003	28-03-2003	26-12-2008	Active	NO
13	U65910MH1987PLC042230	KOTAK COMMODITY SERVICES LIMITED	Director	06-11-2003	06-11-2003	-	Active	NO
14	U91990MH2004NPL144896	INSUREKOT RESEARCH FOUNDATION	Director	08-03-2004	08-03-2004	-	Active	NO
15	U67120MH1996PTC098584	INFINA FINANCE PRIVATE LIMITED	Director	19-01-2006	19-01-2006	-	Active	NO
16	U91990MH2004GAP147894	FEDERATION OF INDIAN COMMODITY EXCHANGES	Director	01-02-2006	01-02-2006	-	Active	NO
17	U99999MH1938GAP002843	THE BOMBAY COMMODITY EXCHANGE LIMITED	Director	04-09-2006	04-09-2006	-	Active	NO
18	U99999MH1996PTC098713	CUMULUS TRADING COMPANY PRIVATE LIMITED	Director	28-09-2007	15-12-2006	-	Active	NO
19	U17121MH2010NPL199093	INDIAN TECHNICAL TEXTILE ASSOCIATION	Director	16-04-2010	16-04-2010	-	Active	NO
20	U70102MH2007PTC176965	PUMA PROPERTIES PRIVATE LIMITED	Additional director	11-06-2012	11-06-2012	-	Active	NO

Name :

Mr. Rajesh Harkishandas Doshi

Designation :

Director

Address :

4, Rambaug, S.V. Patel Road, Borivali (West), Mumbai – 400 092, Maharaashtra, India

Date of Birth/Age :

01.01.1959

Date of Appointment :

18.12.2002

DIN No.:

00019502

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	U65910MH1987PLC045544	KOMAF FINANCIAL SERVICES LIMITED	Director	17-08-1994	17-08-1994	-	Active	NO
2	U99999MH1996PTC098713	CUMULUS TRADING COMPANY PRIVATE LIMITED	Director	18-12-2002	18-12-2002	15-12-2006	Active	NO
3	U65910MH1987PLC042230	KOTAK COMMODITY SERVICES LIMITED	Director	18-12-2002	18-12-2002	-	Active	NO
4	U51900MH1985PTC035419	HARISIDDHA TRADING AND FINANCE Private LIMITED	Director	28-09-2007	01-11-2006	11-07-2008	Active	NO
5	U67190MH2007PTC168303	Phoenix ARC Private Limited	Director	02-03-2007	02-03-2007	29-06-2007	Active	NO

Name :

Mr. Devarajan Kannan

Designation :

Director

Address :

41, 4^th Floor, Shubhangan CTS, G/4, V.P. Road, Santacruz (West), Mumbai – 400 054, Maharashtra, India

Date of Birth/Age :

08.06.1961

Date of Appointment :

29.09.2009

DIN No.:

00498935

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	U99999MH1994PLC134051	KOTAK SECURITIES LIMITED	Managing director	01-04-2012	11-08-2006	-	Active	NO
2	U65910MH1987PLC042230	KOTAK COMMODITY SERVICES LIMITED	Director	29-09-2009	05-08-2009	-	Active	NO

Name :

Mr. Sumanlal Babulal Shah

Designation :

Whole-time Director

Address :

51, Solitaire, Central Avenue, Santacruz (West), Mumbai – 400 054, Maharashtra, India

Date of Birth/Age :

27.11.1949

Date of Appointment :

01.04.2014

DIN No.:

00019473

PAN No.:

ABWPS5108C

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	U51900MH1995PLC094071	KOTAK AND COMPANY LIMITED	Director	22-02-2000	22-02-2000	-	Active	NO
2	L17119PN1990PLC058139	PRANAVADITYA SPINNING MILLS LIMITED	Director	27-11-2001	27-11-2001	24-07-2007	Active	NO
3	U65910MH1987PLC045544	KOMAF FINANCIAL SERVICES LIMITED	Director	18-12-2002	18-12-2002	22-09-2008	Active	NO
4	U65910MH1987PLC042230	KOTAK COMMODITY SERVICES LIMITED	Whole-time director	01-04-2014	18-12-2002	-	Active	NO
5	U67120MH1996PTC098584	INFINA FINANCE PRIVATE LIMITED	Director	30-06-2004	30-06-2004	-	Active	NO
6	U51900MH1985PTC035419	HARISIDDHA TRADING AND FINANCE PRIVATE LIMITED	Director	06-04-2005	06-04-2005	-	Active	NO
7	U74999MH2003PLC140009	KOTAK MAHINDRA ASSET RECONSTRUCTION COMPANY LIMITED	Director	30-06-2005	30-06-2005	-	Strike off	NO
8	U67190MH2007PTC168303	PHOENIX ARC PRIVATE LIMITED	Director	02-03-2007	02-03-2007	29-06-2007	Active	NO
9	U00000DL1970PLC100242	BUSINESS STANDARD LIMITED	Director	25-09-2008	23-08-2008	-	Active	NO
10	U75144MH2001PTC131527	INSUREKOT SPORTS PRIVATE LIMITED	Additional director	06-05-2014	06-05-2014	-	Active	NO

Name :

Mr. Shripal Parasmal Shah

Designation :

Whole-time Director

Address :

B-601, Sahyadri Tower, Upper Govind Nagar, Near Upvan Tower, M. Lad, Mumbai – 400 097, Maharashtra, India

Date of Birth/Age :

01.01.1971

Date of Appointment :

01.04.2014

DIN No.:

03055553

PAN No.:

AGVPS0349F

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	U65910MH1987PLC042230	KOTAK COMMODITY SERVICES LIMITED	Whole-time director	01-04-2014	08-04-2010	-	Active	NO

Name :

Mr. Vinay Narottamdas Kotak

Designation :

Whole-time Director

Address :

Seksaria House, 28, Babulnath Road, Mumbai – 400 007, Maharashtra, India

Date of Birth/Age :

20.05.1958

Date of Appointment :

01.04.2014

DIN No.:

00019439

PAN No.:

AABPK6757D

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	U17120MH1994PTC082794	KOTAK GINNING AND PRESSING INDUSTRIES PRIVATE LIMITED	Director	10-11-1994	10-11-1994	-	Active	NO
2	U51900MH1995PLC094071	KOTAK AND COMPANY LIMITED	Director	01-11-1995	01-11-1995	-	Active	NO
3	U51900MH1959PTC011548	ASIAN MACHINERY AND EQUIPMENT PRIVATE LIMITED	Director	04-01-2000	04-01-2000	-	Active	NO
4	U91110MH1921NPL000940	COTTON ASSOCIATION OF INDIA	Director	31-12-2008	31-12-2008	-	Active	NO
5	U65910MH1987PLC042230	KOTAK COMMODITY SERVICES LIMITED	Whole-time director	01-04-2014	01-07-2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2013

Names of Shareholders (Equity Shares)	No. of Shares
Cumulus Trading Company Private Limited, India	395843
Dipak B. Gupta	10
Zuber A. Kazi	10
Krishnan V. Manian	10
Suresh Amrtilal Kotak	31250

Names of Shareholders (Preference Shares)	No. of Shares
Komaf Financial Services Limited, India	200000
Total	200000

AS ON 27.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	92.74
Directors or relatives of directors	7.26
Total	100.00

BUSINESS DETAILS

Line of Business :

Segment	Principal Activity
Broking	Commodities Broking and includes related Fixed Deposits
Treasury and Trading	Borrowings, Proprietary Trading in commodity stocks/ futures including Export of Cotton and Other Commodities, Ginning and Pressing of Cotton and Agency business.

Products :

Item Code No. (ITC Code)	52010012
Product Description	Cotton

GENERAL INFORMATION

No. of Employees :

Information declined by the Management.

Bankers :

HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
SHORT-TERM BORROWINGS
Term loans from banks (Pari Passu first charge on the stock in trade and trade receivables)	1.320	0.757
Total	1.320	0.757

Banking Relations :	--
Auditors :
Name :	V C Shah and Company Chartered Accountants
Address :	22, Rajgir Chambers, III Floor, 12-14, Shahid Bhagat Singh Road, PP Old Custom House, Mumbai – 400 001, Maharashtra, India
PAN No.:	AADFV8088N
Holding Company :	Cumulus Trading Company Private Limited, India (CIN No.: U99999MH1996PTC098713)
Associates :	· Kotak Securities Limited, India · Kotak Mahindra Old Mutual Life Insurance Limited, India · Kotak Mahindra Bank Limited, India · Kotak Mahindra Asset Management Company Limited, India · Infina Finance Private Limited, India · Allied Auto Accessories Private Limited, India
Subsidiary Companies :	Kotak Commodity International FZE, United Arab Emirates
Fellow Subsidiary Companies :	· Kotak Ginning and Pressing Industries Limited, India · Kotak and Co Limited, India · Komaf Financial Services Limited, India · Aero Agencies Limited, India

CAPITAL STRUCTURE

AS ON 27.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
1150000	Equity Shares	Rs.10/- each	Rs.11.500 millions
20000	12% Preference Shares	Rs.100/- each	Rs.2.000 millions
200000	7.5% Preference Shares	Rs.100/- each	Rs.20.000 millions
1650000	Unclassified Shares	Rs.10/- each	Rs.16.500 millions
	Total		Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
430704	Equity Shares	Rs.10/- each	Rs.4.307 millions
200000	7.5% Preference Shares	Rs.100/- each	Rs.20.000 millions
	Total		Rs.24.307 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	24.307	24.308	24.272
(b) Reserves & Surplus	389.817	297.799	106.611
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.036
Total Shareholders’ Funds (1) + (2)	414.124	322.107	130.919
(3) Non-Current Liabilities
(a) Long-term borrowings	197.084	298.204	283.585
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	110.517	135.092	106.180
(d) Long-term provisions	6.213	2.779	4.057
Total Non-current Liabilities (3)	313.814	436.075	393.822
(4) Current Liabilities
(a) Short term borrowings	499.036	724.673	128.588
(b) Trade payables	1601.688	2386.356	1064.337
(c) Other current liabilities	252.265	78.396	14.333
(d) Short-term provisions	23.089	31.643	19.497
Total Current Liabilities (4)	2376.078	3221.068	1226.755
TOTAL	3104.016	3979.250	1751.496
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	17.568	18.092	13.362
(ii) Intangible Assets	18.596	18.447	23.864
(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	0.033	0.033	0.033
(c) Deferred tax assets (net)	62.395	40.596	38.822
(d) Long-term Loan and Advances	54.219	166.376	5.868
(e) Other Non-current assets	489.829	905.306	493.800
Total Non-Current Assets	642.640	1148.850	575.749
(2) Current assets
(a) Current investments	0.000	0.000	2.075
(b) Inventories	205.142	1321.027	304.489
(c) Trade receivables	881.625	722.569	304.700
(d) Cash and cash equivalents	1243.160	663.023	445.222
(e) Short-term loans and advances	119.051	111.889	112.045
(f) Other current assets	12.398	11.892	7.216
Total Current Assets	2461.376	2830.400	1175.747
TOTAL	3104.016	3979.250	1751.496

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from Operations	308.590	411.569	156.756
		Other Income	218.374	162.276	48.876
		TOTAL (A)	526.964	573.845	205.632
Less	EXPENSES
		Employee benefit expense	129.996	91.972	62.607
		Other expenses	141.480	125.090	70.059
		TOTAL (B)	271.476	217.062	132.666
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		255.488	356.783	72.966
Less	FINANCIAL EXPENSES (D)		100.619	84.223	27.651
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		154.869	272.560	45.315
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.646	11.104	7.710
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		140.223	261.456	37.605
Less	TAX (H)		46.462	68.525	(8.928)
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		93.761	192.931	46.533
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		15.940	15.940	15.940
Less	ADJUSTMENTS AND APPROPRIATIONS		1.743	192.931	46.533
	BALANCE CARRIED TO THE B/S		107.958	15.940	15.940
	EARNINGS IN FOREIGN CURRENCY		1812.076	1967.358	91.222
	Earnings / (Loss) Per Share (Rs.)		217.69	447.94	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	17.79	33.62	22.63
Net Profit Margin (PBT/Sales)	(%)	45.44	63.53	23.99
Return on Total Assets (PBT/Total Assets}	(%)	4.61	6.64	2.20
Return on Investment (ROI) (PBT/Networth)		0.34	0.81	0.29
Debt Equity Ratio (Total Debt/Networth)		1.68	3.18	3.15
Current Ratio (Current Asset/Current Liability)		1.04	0.88	0.96

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	24.272	24.308	24.307
Reserves & Surplus	106.611	297.799	389.817
Share Application money pending allotment	0.036	0.000	0.000
Net worth	130.919	322.107	414.124
Long-term borrowings	283.585	298.204	197.084
Short term borrowings	128.588	724.673	499.036
Total borrowings	412.173	1022.877	696.120
Debt/Equity ratio	3.148	3.176	1.681

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	156.756	411.569	308.590
		162.554	(25.021)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Revenue from Operations	156.756	411.569	308.590
Profit	46.533	192.931	93.761
	29.68%	46.88%	30.38%

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	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	Yes
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]	PAN of Proprietor/Partner/Director, if available	Yes
32]	Date of Birth 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

LITIGATION DETAILS:

Case Details

Bench:-Bombay

Presentation Date:-				06/07/2013
Lodging No.:-	ITXAL/1004/2013	Filing Date:-	06/07/2013	Reg. No.:-	ITXA/1862/2013	Reg. Date:-	05/10/2013

Petitioner:-	The Commissioner of Income Tax-3, Mumbai	Respondent:-	Kotak Commodity Services Limited
Petn. Adv.:-	Padma Divakar	Resp. Adv.:-	Atul K. Jasani

District:-

MUMBAI

Bench:-	DIVISION
Status:-	Pre-Admission	Category:-	TAX APPEALS

Next Date:-

19/08/2014

Stage:-

--

Coram:-

ACCORDING TO SITTING LIST ACCORDING TO SITTING LIST

Act :-

Income Tax Act, 1961

Under Section:-

260A

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10463365	15/11/2013	60,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI, MAHARASHTRA - 400013, INDIA	B90793142
2	10396168	07/02/2014 *	450,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI, MAHARASHTRA - 400013, INDIA	C00774406
3	10385935	17/10/2012	100,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI, MAHARASHTRA - 400013, INDIA	B61889812
4	10378307	13/09/2012	100,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI, MAHARASHTRA - 400013, INDIA	B58840299
5	10333785	12/01/2012	50,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI, MAHARASHTRA - 400013, INDIA	B31355787
6	10172643	27/09/2011 *	30,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI, MAHARASHTRA - 400013, INDIA	B25005059
7	10172460	25/06/2009	20,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL (WEST), MUMBAI, MAHARASHTRA - 400013, INDIA	A67877019
8	10088575	27/12/2007	50,000,000.00	UNION BANK OF INDIA	CAPITAL MARKET CELL, 66/80, MUMBAI SAMACHAR MARG, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	A32652463

* Date of charge modification

Unsecured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG-TERM BORROWINGS
Fully convertible debentures	197.084	298.204
SHORT-TERM BORROWINGS
Inter-corporate deposits	250.000	700.000
Commercial paper	247.716	23.916
Total	497.716	723.916

GENERAL INFORMATION:

Subject is promoted by the Kotak family that has decades of experience in commodity trading. Subject is a trading-cum-clearing member of the leading national commodity exchanges - MCX, NCDEX and ACE. It is also a member of NCDEX Spot Exchange. Subject is also associated with All India Cottonseed Crushers Association, Cotton Association of India and The Solvent Extractors Association of India. Their offerings include Commodities Broking Services, Hedging Solutions and Arbitrage Desk to meet the requirements of all kinds of market participants.

They have an extensive network spread across the country through their branches and registered franchisees. The Commodities Broking Services cater to the retail private investor segment, while the Hedging Services are offered through our corporate desk to the producing/consuming firms that have either direct or economic exposure to the underlying commodity. Our offerings also include Arbitrage products that are backed by their experts. They also have a division carrying on the business of Manufacturing, Trading including Exports of Cotton and other commodities.

The Company has determined the following segments with principal activities as under:

Segment	Principal Activity
Broking	Commodities Broking and includes related Fixed Deposits
Treasury and Trading	Borrowings, Proprietary Trading in commodity stocks / futures including Export of Cotton and Other Commodities, Ginning and Pressing of Cotton and Agency business.

BUSINESS OPERATIONS:-

Industry Scenario

As per data published by Forward Market Commission (FMC), total trading volume of commodity exchanges declined by 5.8% to Rs.170.5 Lac crore in 2012-13 from Rs.181 Lac crore in 2011-12. The latest budget has introduced Commodity Transaction Tax (CTT), which is an important development for the Exchange traded commodity futures market. Further the parliament is expected to pass FCRA amendment bill in near future, which will impact positively on the growth of the commodity futures markets.

Company Business

Subject and commodity market as a whole passed through a little difficult year compared to previous year. While the markets haven’t really been supportive, the company has done well within the given constraints of market and specific segments.

Continuing the steady pace of expansion, the company increased its branch network from 38 to 43 by adding 5 more branches and thereby increasing its geographical footprint. Company also continued its sustained push on online trading business. The company continues to invest in technology platforms that will result into superior customer trading experience and improved customer service.

The Company has established its branch and franchisee business in all major cities in India and is set to expand further with the help of additional sales force being deputed at these locations.

Apart from trading and export of cotton, Kotak Ginning and Pressing Industries division of the company has further expanded its portfolio to include other Agri commodities such as sesame seed and wheat as well.

Their sustain effort in investing in technology and customer service resulted in the increase in subject income from the Online vertical from Rs.6.000 millions in FY 2011-12 to Rs.10.000 millions in FY 2012-13 showcasing a growth of nearly 68%.

The directors are happy to mention that during the year, ICRA has re-affirmed rating of [ICRA] A1+ (pronounced ICRA A one plus) to the Rs.1000.000 millions (enhanced from Rs.500.000 millions) short term debt programme and Rs.2500.000 millions short term bank lines (enhanced from Rs.1500.000 millions) of subject.

Total Revenue for the year is Rs.526.964 millions compared Rs.573.844 millions in the previous year. The operating profit for the year is Rs.140.223 millions as against Rs.261.456 millions in the previous year. The profit after tax for the year is Rs.93.761 millions as against Rs.192.931 millions in previous year.

Rewards and Recognition

Research Analyst of the Company has received following awards during current financial year:

1) Best Base Metal Analyst in Technical Research category from Zee Business– felicitated by Shri Pranab Mukherjee – Honorable Union Minister of Finance

2) Best Analyst in Bullion Category from CPAI (Commodity Participant Association of India.)

FIXED ASSETS:

Tangible Assets

· Land

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer

· Leasehold Improvements

Intangible Assets

· Goodwill

· Computer Software

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.60.33
UK Pound	1	Rs.103.18
Euro	1	Rs.81.58

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	DIV
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		50

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.