MIRA INFORM REPORT

Report Date :

25.11.2014

IDENTIFICATION DETAILS

Name :	SHIVAM COTTON INDUSTRIES
Registered Office :	2, Mahavir Chambers, Mehta Market, Surendranagar – 363001, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Year of Establishment:	September 2012
Capital Investment / Paid-up Capital :	Rs.7.185 Millions
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer of cotton ginning and pressing.
No. of Employees :	8 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a relatively new company having moderate track record. Mr. Mukeshbhai R Wadhwaniya (Partner) has provided us with all information. External borrowing of the company of the company seems to be huge. Profitability of the company also seems to be slow. However, trade relations are fair. Business is active. Payment terms are reported to be 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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

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

Name :	Mr. Mukeshbhai R Wadhwaniya
Designation :	Partner
Contact No.:	91-9925642989
Date :	24.11.2014

LOCATIONS

Registered Office :	2, Mahavir Chambers, Mehta Market, Surendranagar – 363001, Gujarat, India
Tel. No.:	91-79-207560230
Mobile No.:	91-9925642989 (Mr. Mukeshbhai R Wadhwaniya)
Fax No.:	Not Available
E-Mail :	Amir_wadhwaniya@yahoo.co.in
Location :	Owned
Factory :	Adjoining to J.K Oil Milk, Near Surendranagar, Muli, State Road, S R No. 49/2, Village, Godavari, Taluka Muli, District Surendranagar, Gujarat, India

/PARTNERS

Name :	Mr. Mukeshbhai R Wadhwaniya
Designation :	Partner
Address:	Anand Park – 2, Near Jintan Road, Surendranagar, Gujarat, India
Age/Date of Birth:	41 Years
Qualification :	B.Com
Experiences:	15 Years
Name :	Mr. Rajeshbhai R Gangani
Designation :	Partner
Name :	Mr. Serina Rajesh Gangani
Designation :	Partner

BUSINESS DETAILS

Line of Business :	Manufacturer of cotton ginning and pressing.
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Cheque
Purchasing :	Cheque

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 :

· Wholesalers

· Retailers

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 :

8 (Approximately)

Bankers :

Bank Name	Dena Bank
Branch	Surendranagar, Gujarat, India
Person Name (With Designation)	Mr. Surendra (Assistant Manager)
Contact Number	91-9510626225
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Mr. Surendra (Assistant Manage denied to provide he is opinion)

Facilities :

--

Banking Relations :
Auditors :
Name :	Pritesh A Shah and Associates Chartered Accountants
Address :	33/385, Adarshnagar, Near nava Vadej, Ankur, Naranpura, Ahmedabad – 380013, Gujarat, India
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern:	Silver Cotton

CAPITAL STRUCTURE

AS ON 31.03.2014

	Name of Partner	Share	Balance as at 01.04.2013	Addition	Withdrawals	Interest	Remuneration	Profit /(Loss)	Balance As at 31.03.2014
1	Mukeshbhai Rahimbhai	60%	0.062	1.388	0.271	0.027	0.300	1.394	2.900
2	Rajesh Ramjanali Gangani	20%	2.204	--	0.030	0.131	0.100	0.465	2.869
3	Shrina Rajesh Gangani	20%	0.833	--	0.030	0.049	0.100	0.465	1.416
	Total		3.098	1.388	0.331	0.206	0.500	2.324	7.185

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		7.185	3.098
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		7.185	3.098
LOAN FUNDS
1] Secured Loans		21.872	13.503
2] Unsecured Loans		8.054	6.009
TOTAL BORROWING		29.926	19.513
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		37.111	22.610
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.330	13.952
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	24.981	35.039
	Sundry Debtors	11.241	7.520
	Cash & Bank Balances	1.248	0.027
	Other Current Assets	0.000	0.000
	Loans & Advances	0.633	2.564
Total Current Assets		38.103	45.150
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	14.007	36.492
	Other Current Liabilities	0.315	0.000
	Provisions	0.000	0.000
Total Current Liabilities		14.322	36.492
Net Current Assets		23.781	8.658
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		37.111	22.610

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013
	SALES
	Income	251.933	18.020
	Other Income	0.022	0.028
	TOTAL (A)	251.955	18.048
Less	EXPENSES
	Raw Material Consumption	239.109	47.704
	Manufacturing expense	0.690	0.209
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	4.876	(29.857)
	Administrative and Selling expense	0.229	0.100
	Partners Interest	0.206	0.000
	Partners Remuneration	0.500
	TOTAL (B)	245.610	18.156
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	6.345	(0.108)
Less	FINANCIAL EXPENSES (D)	1.873	1.795
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	4.472	(1.903)
Less/ Add	DEPRECIATION/ AMORTISATION (F)	2.148	1.158
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	2.324	(3.061)

The above information has been by Mr. Mukeshbhai R Wadhwaniya (Partner)

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin PAT/ Sales	(%)	0.92	(16.99)
PBIDT / Sales	(%)	2.52	(0.60)
Return on Total Assets (PBT/Total Assets}	(%)	4.52	(5.18)
Return on Investment (ROI) (PBT/Networth)		0.32	(0.99)
Debt Equity Ratio (Total Debt /Networth)		4.17	6.30
Current Ratio (Current Asset/Current Liability)		2.66	1.24

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	3.098	7.185
Reserves & Surplus	0.000	0.000
Net worth	3.098	7.185
Secured Loans	13.503	21.872
Unsecured Loans	6.009	8.054
Total borrowings	19.512	29.926
Debt/Equity ratio	6.298	4.165

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	18.020	251.933
		1,298.074

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)
Sales	18.020	251.933
Profit	(3.061)	2.324
	(16.99%)	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	No
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 two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	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	Yes
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
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	No

FIXED ASSETS

· Building Construction

· Electric Weight Machine

· Electric Fitting Account

· Furniture Fitting

· Land Purchase

· Computer and Printers

· Machinery

· Machinery Purchase OGS

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.61.78
UK Pound	1	Rs.96.78
Euro	1	Rs.76.59

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	RAS
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
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	2
--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.