MIRA INFORM REPORT

Report No. :	331147.2
Report Date :	08.07.2015

IDENTIFICATION DETAILS

Name :	SAGAR INDUSTRIES
Registered Office :	Village - Godavari, Taluka - Muli, District - Surendranagar -363001, Gujarat
Tel. No.:	91-2752-221342
Country :	India
Year of Establishment :	06.07.1994
Capital Investment :	Rs. 40.838 Million (As on 31.03.2014)
TAN No.: [Tax Deduction & Collection Account No.]	AHMS08299E
PAN No.: [Permanent Account No.]	AASFS2203B
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer of Raw Cotton (Ginning and Pressing).
No. of Employees :	28 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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 an established partnership concern incorporated during 1994 having a satisfactory track record. Mr. Piyush Shah partner provided all the information and also provided audited financials for the year 2013 and 2014. For the financial year ended 2014, profit margin of the concern is low. Further, the rating is constrained on account of susceptibility of cotton prices to seasonality and government regulations. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The concern 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 – 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	ICRA
Rating	Cash Credit Limit: “B+”
Rating Explanation	High risk of default
Date	April, 2015

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ 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. Dipak Shah
Designation :	Accountant
Contact No.:	91-9428293445
Date :	06.07.2015
Name :	Mr. Piyushbhai S. Shah
Designation :	Partner
Contact No.:	91-9825224041
Date :	07.07.2015

LOCATIONS

Registered Office/ Factory :	Village - Godavari, Taluka - Muli, District - Surendranagar -363001, Gujarat, India
Tel. No.:	91-2756-230040/41/ 221342
Mobile No.:	91-9825224041 (Mr. Piyushbhai S. Shah) 91-9428293445 (Mr. Dipak Shah)
Fax No.:	Not Available
E-Mail :	sagarcotton@yahoo.co.in
Area :	20,000 Sq. Ft.
Location :	Owned
Locality :	Commercial
Administrative Office :	Opposite District Co-Operative Bank Limited, Main Road, Surendranagar - 363002, Gujarat, India
Tel. No.:	91-2752-221342
Area :	15000 Sq. Ft.
Location :	Rented
Locality :	Commercial

PARTNERS

Name :	Mr. Shevantibhai M. Shah
Designation :	Partner
Date of Birth/Age :	77 Years
Qualification :	HSC
Name :	Mr. Piyushbhai S. Shah
Designation :	Partner
Date of Birth/Age :	54 Years
Qualification :	Graduate

KEY EXECUTIVES

Name :	Mr. Dipak Shah
Designation :	Accountant

BUSINESS DETAILS

Line of Business :	Manufacturer of Raw Cotton (Ginning and Pressing).
Brand Names :	--
Agencies Held :	--
Exports :	--
Imports :	--
Terms :
Selling :	Cash, Cheque and Credit
Purchasing :	Cash, Cheque and Credit

GENERAL INFORMATION

Suppliers :

Reference:	Jay Bhavani Company
Name of the Person (Designation):	Mr. Jayesh Bharvada (Manager)
Contact Number:	91-9825082749
Since how long known:	8 Years
Maximum limit dealt:	--
Experience:	Payment Behaviour: Excellent Market Goodwill: Excellent Overall: Excellent
Remark	He informed that we have very good relation with this company and no complaints.

Reference:	Shah Vanechand Thakrashivbhai
Name of the Person (Designation):	Mr. Ketan Shah (Proprietor)
Contact Number:	91-9825282711
Since how long known:	12 Years
Maximum limit dealt:	--
Experience:	Payment Behaviour: Excellent Market Goodwill: Excellent Overall: Excellent
Remark	He informed that we have very good relation with this company and payment behaviour are also good.

Customers :

End Users

Company Name :	Bhadresh Trading Corporation Limited
Name of the Person (Designation):	Mr. Jay Raol (Transport Manager)
Contact Number:	91-9978979951
Since how long known:	10 Years
Maximum limit dealt:	--
Experience:	Product Quality: Excellent Delivery Behaviour: Excellent Overall: Excellent
Remark	He says it is a wonderful company and has best quality products and delivery behaviour.

Company Name :	Bhadresh Natural Resources Private Limited
Name of the Person (Designation):	Mr. Chandrashekar (Accountant)
Contact Number:	91-9819452426
Since how long known:	3 Years
Maximum limit dealt:	-
Experience:	Product Quality: Excellent Delivery Behaviour: Excellent Overall: Excellent
Remark	He informed that we are very much satisfied by their product quality and delivery behaviour.

No. of Employees :

28 (Approximately)

Bankers :

Bank Name:	Bank of India
Branch:	Main Branch, Surendranagar, Gujarat, India
Person Name (with Designation):	Mr. Makwana (Credit Manager)
Contact Number:	91-2752-221722
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Cash Credit: Rs. 150.000 Million
Account Operation:	Not Divulged
Remarks: Mr. Makwana (Credit Manager) denied to provide any information about subject company

Banking Relations :	--
Auditors :
Name :	Dineshbhai V. Shah company Chartered Accountants
Address :	Opposite Peoples Co-operative Bank, Derasar Road, Surendranagar – 363001, Gujarat, India
Tel. No.:	91-2752-222144/ 223446
Memberships :	--
Collaborators :	--
Related Party :	Gautam Cotton Industries

CAPITAL STRUCTURE

As on 31.03.2014

Capital Investment :
Owned :	Rs. 40.838 Million
Borrowed :	--
Total :	Rs. 40.838 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS			31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Partners Capital			40.838	37.735
2] Share Application Money			0.000	0.000
3] Profit and Loss Account			0.000	0.000
4] (Accumulated Losses)			0.000	0.000
NETWORTH			40.838	37.735
LOAN FUNDS
1] Secured Loans			77.018	94.803
2] Unsecured Loans			18.805	23.500
TOTAL BORROWING			95.823	118.303
DEFERRED TAX LIABILITIES			0.000	0.000
TOTAL			136.661	156.038
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]			9.899	11.234
Capital work-in-progress			0.000	0.000
INVESTMENT			0.001	0.001
DEFERRED TAX ASSETS			0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories		21.475	5.930
	Sundry Debtors		159.355	166.549
	Cash & Bank Balances		0.357	0.512
	Other Current Assets		0.737	0.632
	Loans & Advances		0.102	0.102
Total Current Assets			182.026	173.725
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities
	Provisions
Total Current Liabilities			55.265	28.922
Net Current Assets			126.761	144.803
MISCELLANEOUS EXPENSES			0.000	0.000
TOTAL			136.661	156.038

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	855.618	724.196
		Other Income	0.035	0.086
		TOTAL (A)	855.653	724.282
Less	EXPENSES
		Cost of Goods Sold	831.311	703.589
		Direct Expenses	7.978	6.905
		Provision and Payment to Employees	0.029	0.000
		Administrative Expenses	0.250	0.143
		Indirect Expenses	3.701	2.477
		TOTAL (B)	843.269	713.114
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12.384	11.168
Less	FINANCIAL EXPENSES (D)		10.393	8.577
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.991	2.591
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.452	1.651
	NET PROFIT/ (LOSS) (E-F)		0.539	0.940

PARTICULARS	31.03.2015
Sales Turnover (Approximately)	1223.100

The above information has been parted by Mr. Piyushbhai S. Shah (Partner).

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.06	0.13
Operating Profit Margin (PBDIT/Sales)	(%)	1.45	1.54
Return on Total Assets (PBT/Total Assets}	(%)	0.28	0.51
Return on Investment (ROI) (PBT/Networth)		0.01	0.02
Debt Equity Ratio (Total Liability/Networth)		2.35	3.14
Current Ratio (Current Asset/Current Liability)		3.29	6.01

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Share Capital	37.735	40.838
Reserves & Surplus	0.000	0.000
Money received against share warrants	0.000	0.000
Share Application money pending allotment	0.000	0.000
Net worth	37.735	40.838
Long-term borrowings	94.803	77.018
Short term borrowings	23.500	18.805
Total borrowings	118.303	95.823
Debt/Equity ratio	3.135	2.346

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	724.196	855.618
		18.147

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)
Sales	724.196	855.618
Profit	0.940	0.539
	0.13%	0.06%

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)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
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	Yes
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 two years	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	Yes
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. 63.37
UK Pound	1	Rs. 98.86
Euro	1	Rs. 69.97

INFORMATION DETAILS

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

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILITY	1~10	4
--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	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		45

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.