MIRA INFORM REPORT

Report No. :	335830
Report Date :	08.08.2015

IDENTIFICATION DETAILS

Name :	SHUBHLAXMI INDUSTRIES
Registered Office :	49 G.I.D.C., Deesa Banaskantha, Deesa – 385535, Gujarat
Tel. No.:	91-2744-220867
Country :	India
Financials (as on) :	31.03.2015 (Provisional)
Year of Establishment:	1997
Capital Investment / Paid-up Capital :	Rs. 22.036 Million (Provisional)
TIN No.:	Not Available
IEC No.:	0803002891
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AFBPS1677M
Legal Form :	Sole Proprietary Concern
Line of Business :	Manufacturer, Exporter and Importer of Guar gum and Spices
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 79000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an old proprietorship concern established in the year 1997, having satisfactory track. As per available financials of the year 2014, overall financial position of the subject seems to be decent. Further Mr. Brijesh (CEO) claimed that subject has achieved turnover of Rs.500.000 Million in FY14 which has not been verified due to absence of trading account. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The concern can be considered for business dealings with 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, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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	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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Brijesh
Designation :	Chief Executive Officer
Contact No.:	91-9824093193
Date :	05.08.2015

LOCATIONS

Registered Office / Factory :	49 G.I.D.C., Deesa Banaskantha, Deesa – 385535, Gujarat
Tel. No.:	91-2744-220867
Mobile No.:	91-9824093193 (Mr. Brijesh)
Fax No.:	91-2744-220867
E-Mail :	info@shubhgum.net shubhgum@hotmail.com brijeshgum@hotmail.com
Website :	www.shubhgum.com

SOLE PROPRIETOR

Name :	Mr. Mahasukhlal Mafatlal Shah
Designation :	Proprietor

KEY EXECUTIVES

Name :	Mr. Brijesh
Designation :	Chief Executive Officer

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Guar gum and Spices
Products :	Guar gum Spilts Guar gum Powder Hulled Sesame Seed Guar Meal
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :
Products :	Finished Goods
Countries :	China Latin America Asian Countries African countries
Imports :
Products :	Raw Material
Countries :	China
Terms :
Selling :	Cash, Advance Payment, Credit and Cheque
Purchasing :	Cash, Advance Payment, Credit and Cheque

GENERAL INFORMATION

Suppliers :

Reference :	Rajkamal Agro Industries
Name of the Person :	Mr. Hansraj (Partner)
Contact No.:	91-9428006915
Since How Long Known :	15 Years
Maximum Limit Dealt :	Not Divulged
Experience :	Payment Behaviour = Good Market Goodwill = Good Overall = Good
Remark:	They gave us positive response about subject company they are satisfied with their payment behaviour and market goodwill

Customers :

Wholesaler, Retailers and End Users

Reference :	Altrafine Gums
Name of the Person :	Mr. Manibhai (Proprietor)
Contact No.:	91-9825051402
Since How Long Known :	10 Years
Maximum Limit Dealt :	Not Divulged
Experience :	Product Quality = Good Delivery Behaviour = Good Overall = Good
Remark:	They gave us positive response about subject company they are satisfied with their product quality and delivery behaviour

No. of Employees :

20(Approximately)

Bankers :

Bank Name	Dena Bank
Branch	Palanpur Branch, Gujarat, India
Person Name (With Designation)	Mr. Patel (Senior Manager)
Contact Number	91-9979783355
Name of Account Holder	Shubhlaxmi Industries
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	3 Years
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Cash Credit = Rs. 85.000 Million
Account Operation	Satisfactory
Remarks (If any)	Banker gave u positive response about subject company they are satisfied with their banking transaction.

Auditors :
Name :	Kanudawala Association Chartered Accountants
Address :	Deesa, Gujarat, India
Memberships :	Not Available
Collaborators :	Not Available
Sister Concern:	Not Available

CAPITAL STRUCTURE

As on 31.03.2015

Capital Investment :
Owned :	Rs. 22.036 Million
Borrowed :	--
Total :	Rs. 22.036 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015 (Provisional)	31.03.2014	31.03.2014
SHAREHOLDERS FUNDS
1] Share Capital		22.036	24.380	18.852
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.715	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		27.751	24.380	18.852
LOAN FUNDS
1] Secured Loans		6.884	29.054	56.549
2] Unsecured Loans		6.877	13.632	8.108
TOTAL BORROWING		13.761	42.686	64.657
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		41.512	67.066	83.509
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.621	21.158	23.210
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.945	1.137	1.313
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.640	0.000	5.720
	Sundry Debtors	15.381	15.982	8.665
	Cash & Bank Balances	0.398	0.528	40.968
	Other Current Assets	2.268	20.047	0.000
	Loans & Advances	1.539	8.370	4.248
Total Current Assets		30.226	44.927	59.601
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.900
	Other Current Liabilities
	Provisions	0.380
Total Current Liabilities		7.280	0.534	0.859
Net Current Assets		22.946	44.393	58.742
MISCELLANEOUS EXPENSES		0.000	0.378	0.244
TOTAL		41.512	67.066	83.509

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015 (Provisional)	31.03.2014	31.03.2013
	SALES
	Income	471.216	517.206	333.362
	Other Income	5.475	15.358	7.228
	TOTAL (A)	476.691	532.564	340.590
Less	EXPENSES
	Cost of Materials Consumed	438.111
	Cleating Expenses	1.725
	Container Freight Expenses	5.252
	Dalai Export Expenses	0.114
	Guar Dal Discounts	2.910
	Guar Korma Discount	0.082
	Jeera Discount	0.011
	Labour Charges	1.343
	Truck Freight	2.786
	Audit Fees	0.011
	Bad Debts	4.125
	Bank charges	0.289
	Bank Interest	2.084
	Computer Expenses	0.008
	Courier Expenses	0.178
	Dalali Expenses	0.265
	Electricity Bill	3.863
	Laboratory Testing Expenses	0.261
	Licenser Registration Fees	0.071
	Machinery Spare Parts	0.404
	Misc. Expenses	1.016
	Office Expenses	0.441
	Salary	2.738
	Stationery Expenses	0.014
	Telephone Expenses	0.075
	Tours and Travels	0.299
	Vakil Fees	0.087
	Vehicle Expenses	0.040
	TOTAL (B)	468.603	521.998	333.290
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	8.088	10.566	7.300
Less/ Add	DEPRECIATION/ AMORTISATION	2.374	2.953	0.399
	NET PROFIT/(LOSS)	5.714	7.613	6.901

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	1.21	1.47	2.07
Return on Total Assets (PBT/Total Assets}	(%)	11.94	11.45	8.31
Return on Investment (ROI) (PBT/Networth)		0.21	0.31	0.37
Debt Equity Ratio (Total Debt /Networth)		0.50	1.75	3.43
Current Ratio (Current Asset/Current Liability)		4.40	3.32	7.38

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	18.852	24.380	22.036
Reserves & Surplus	0.000	0.000	5.715
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	18.852	24.380	27.751
Secured Loan	56.549	29.054	6.884
Unsecured Loan	8.108	13.632	6.877
Total borrowings	64.657	42.686	13.761
Debt/Equity ratio	3.430	1.751	0.496

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	333.362	517.206	471.216
		55.148	-8.892

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	333.362	517.206	471.216
Profit	6.901	7.613	5.714
	2.07%	1.47%	1.21%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	No
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

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.63.81
UK Pound	1	Rs.98.93
Euro	1	Rs.69.86

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KIN
Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.