MIRA INFORM REPORT

Report No. :	353862
Report Date :	12.12.2015

IDENTIFICATION DETAILS

Name :	COTTON NATION
Registered Office :	304, 3^rd Floor, VTM Building No. 2, Mehra Compound, Near Telephone Exchange, Sakinaka, Andheri Kurla Road, Andheri East, Mumbai – 400072,Maharashtra
Tel. No.:	91-22-2851847/ 28594875/ 40154945
Country :	India
Financials (as on) :	31.03.2015
Year of Establishment :	2003
Capital Investment / Paid-up Capital :	Rs. 39.831 Million
IEC No.:	0305082485
TIN No.:	Not Available
PAN No.: [Permanent Account No.]	AAHFC2784N
Legal Form :	Partnership Concern With an Unlimited Liability of The Partners
Line of Business :	Manufacturer, Exporter and Supplier of Garments. (Confirmed by management)
No. of Employees :	19 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is partnership concern established in the year 2003. It is a Manufacturer, Exporter and Supplier of Garments. It is having satisfactory track. As per the available financials of the year 2015, the concern has reported high debt level. Further the sales turnover has decreased as compared to financial year 2014. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. In view of long track record of business operations along with strong client base, 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

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Vinod Pasari
Designation :	Partner
Contact No.:	91-9821083569
Date :	09.12.2015

LOCATIONS

Registered Office :	304, 3^rd Floor, VTM Building No. 2, Mehra Compound, Near Telephone Exchange, Sakinaka, Andheri Kurla Road, Andheri East, Mumbai – 400072,Maharashtra, India
Tel. No.:	91-22-2851847/ 28594875/ 40154945/ 28598487
Mobile No.:	91-9821083569 (Mr. Vinod) 91-9320698939 (Mr. Abhishek Pasari)
Fax No.:	91-22-28594875
E-Mail :	accounts@cottonnation.com Abhishekcorp@yahoo.co.in
Website :	http://www.cottonnation.com
Area:	1635 Sq. Ft.
Location:	Owned
Factory:	1, Gala No. 2, Ground Floor, Asalpha Kherani Road, Azad Market Loylka Compound, Ghatkopar West, Mumbai – 400084, Maharashtra, India
Area:	5000 Sq. Ft.
Location:	Rented

PARTNERS

Name :	Mr. Abhishek Pasari
Designation :	Partner
Address:	Dariyamahal, Flat No.39, A Building, 7th Floor, 80 Nepeansea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	32 years
Experience:	11 Years
Qualification”	B. Com
Name :	Mr. Vinod Pasari
Designation :	Partner
Address:	Dariyamahal, Flat No.39, A Building, 7th Floor, 80 Nepeansea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	58 years
Experience:	15 Years
Qualification”	B. Com
Name :	Mrs. Ritika Abhishek Pasari
Designation :	Partner
Address:	Dariyamahal, Flat No.39, A Building, 7th Floor, 80 Nepeansea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	30 years
Experience:	4 Years
Qualification”	B. Com
Name :	Mrs. Anita Vinod Pasari
Designation :	Partner
Address:	Dariyamahal, Flat No.39, A Building, 7th Floor, 80 Nepeansea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	57 years
Experience:	4 Years
Qualification”	B. A.

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Supplier of Garments. (Confirmed by management)
Products :	Garments
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :
Products :	Readymade Garments
Countries :	Canada European Countries USA Hong Kong
Imports :
Products :	Raw Material
Countries :	China Indonesia
Terms :
Selling :	Cash, L/C and Credit (30/ 90 Days)
Purchasing :	Cash and Credit (30/ 90 Days)

GENERAL INFORMATION

Suppliers :

• Reliance Fresh Limited
• Texas Pacific Group
• Iee Cooper
• Point Zero , Canada
• Pantaloons

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 and End Users

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 :

19 (Approximately)

Bankers :

• Bank of India, Mumbai, Maharashtra, India

Banker Name	IDBI Bank Limited
Branch Address	Vile Parle, Mumbai, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
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)	Not Divulged

Auditors :
Name :	R.K. Malapani and Company Chartered Accountant
Address :	Mumbai, Maharashtra, India
Memberships :	Not Available
Collaborators :	Not Available
Sister Concerns:	Joder Textile

CAPITAL STRUCTURE

As on: 31.03.2015

Partner Capital :
Owned :	Rs. 39.831 Million
Borrowed :	--
Total :	Rs. 39.831 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1 Partner Capital		39.831	84.788	0.572
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		39.831	84.788	0.572
LOAN FUNDS
1] Secured Loans		126.486	21.309	3.199
2] Unsecured Loans		3.179	67.818	86.126
TOTAL BORROWING		129.665	89.127	89.325
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		169.496	173.915	89.897
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12.175	7.091	7.383
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	106.718	126.694	85.754
	Sundry Debtors	98.575	126.906	46.272
	Cash & Bank Balances	14.432	10.920	18.925
	Other Current Assets	6.594	9.202	6.943
	Loans & Advances	9.811	6.374	1.716
Total Current Assets		236.130	280.096	159.610
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	63.635	94.811	65.638
	Other Current Liabilities	11.121	16.977	9.749
	Expenses Payable	4.054	1.484	1.709
Total Current Liabilities		78.810	113.272	77.096
Net Current Assets		157.320	166.824
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		169.496	173.915	89.897

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Income	709.689	781.465	483.754
		Other Income	6.507	0.460	2.648
		TOTAL	716.196	781.925	486.402
Less	EXPENSES
		Cost of Materials Consumed	371.224	443.745	204.393
		labor Charges	222.365	232.123	199.077
		Direct Cost	11.812	15.188	18.858
		Employee Cost	4.680	3.407	4.366
		Office and Administrative Expense	7.270	5.170	4.353
		Auditor Remuneration	0.786	0.674	0.551
		Interest on Delay payment	0.855	0.841	0.845
		Fine and Penalties Paid	0.000	0.000	0.093
		partner Remuneration	7.201	7.200	3.600
		selling Administrative Expense	17.740	11.612	15.583
		TOTAL	643.933	719.960	451.719
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		72.263	61.965	34.683
Less	FINANCIAL EXPENSES		52.022	34.374	21.085
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		20.241	27.591	13.598
Less	DEPRECIATION/ AMORTISATION		1.524	1.099	1.136
	PROFIT/ (LOSS) BEFORE TAX		18.717	26.492	12.462
Less	TAX		7.134	9.544	4.017
	NET PROFIT		11.583	16.948	8.445

The above information has been parted by Mr. Vinod Pasari (Parnter).

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

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.63	2.17	1.75
Operating Profit Margin (PBIDT/Sales)	(%)	10.18	7.93	7.17
Return on Total Assets (PBT/Total Assets}	(%)	7.54	9.22	7.46
Return on Investment (ROI) (PBT/Networth)		0.47	0.31	21.79
Debt Equity Ratio (Total Debt /Networth)		3.26	1.05	156.16
Current Ratio (Current Asset/Current Liability)		2.88	1.55	0.98

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)
Partner Capital	0.572	84.788	39.831
Reserves & Surplus	0.000	0.000	0.000
Net worth	0.572	84.788	39.831
Secured Loan	3.199	21.309	126.486
Unsecured Loan	86.126	67.818	3.179
Total Loan	89.325	89.127	129.665
Debt/Equity ratio	156.163	1.051	3.255

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	483.754	781.465	709.689
		61.542	(9.185)

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	483.754	781.465	709.689
Profit	8.445	16.948	11.583
	1.75%	2.17%	1.63%

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	Yes
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	Yes
18	Major suppliers	No
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	----------------------
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last two 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 records 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.66.79
UK Pound	1	Rs.101.10
Euro	1	Rs.73.10

INFORMATION DETAILS

Information Gathered by :	SPY
Analysis Done by :	KNL
Report Prepared by :	MTN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
-- PROFITABILITY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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		42

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.