MIRA INFORM REPORT

Report No. :	348951
Report Date :	14.11.2015

IDENTIFICATION DETAILS

Name :	GAJLAXMI COTTON INDUSTRIES
Registered Office :	Thol Road, Rangpurda TA : Kadi DI : Mehsana, Kadi – 382715, Gujarat
Tel. No.:	91-9825021930 (Mr. Laxmanbhai Patel)
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	14.06.2006
Capital Investment / Paid-up Capital :	Rs.31.091 Million
TIN No.:	24040901726
IEC No.:	Not Available (As claimed by company management that company does not export and import)
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAGFG7643B
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer of Cotton Ginning and Oil Mills.
No. of Employees :	16 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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 an established partnership concern started in the year 2006 having moderate track. It is engaged in the business as manufacturer of cotton ginning and oil mills. The rating is constrained on account of low profit margins and susceptibility of profit margin due to low material price fluctuation. The rating further takes into consideration huge borrowing recorded by the concern and highly fragmented industry. Moreover, this rating weakness is partially offset by rich experience of its partners in the industry. Their trade relations are reported as fair. Business is active. Payments are reported as 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	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 31-03-2015.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Laxmanbhai Patel
Designation :	Partner
Contact No.:	91-9825021930
Date :	09.11.2015

LOCATIONS

Registered Office / Factory:	Thol Road, Rangpurda TA : Kadi DI : Mehsana, Kadi – 382715, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-9825021930 (Mr. Laxmanbhai Patel)
Fax No.:	91-2764-297157
E-Mail :	gajlaxmicotton@yahoo.com
Location :	Owned

PARTNERS

Name :	Mr. Laxmanbhai Patel
Designation :	Partner
Address :	B/20, Bhagwati Socity, S.V. Road, Kadi, Gujarat, India
Date of Birth/Age :	10.06.1963
Qualification :	S.Y.BA
Experience :	18 Years
Name :	Mr. Atmaram Bhai
Designation :	Partner
Date of Birth/Age :	59 Years

BUSINESS DETAILS

Line of Business :	Manufacturer of Cotton Ginning and Oil Mills.
Products :	Cotton Ginning Cotton Bales Cotton Cake Oil Mills
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Cash (60 Days)
Purchasing :	Cash

GENERAL INFORMATION

Suppliers :

Reference :

Modi Dinesh Chandra Kanyalal

Name of the Person :

Mr. K. Dinesh Modi (Owner)

Contact No.:

91-8980890260

Since How Long Known :

5 Years

Maximum Limit Dealt :

--

Experience :

Product Quality	Delivery Behaviour	Overall
Good	Good	Good

Remark:

They gave us positive response about subject company they are satisfied with their payment behaviour and market goodwill.

Customers :

Reference :

Seth Mangalchand Champalal, Rajasthan, India

Name of the Person :

Mr. Pawan Sharma (Proprietor)

Contact No.:

91-9638667392

Since How Long Known :

6 Years

Maximum Limit Dealt :

--

Experience :

Product Quality	Delivery Behaviour	Overall
Good	Good	Good

Remark:

They gave us positive response about subject company they are satisfied with their product quality and delivery behaviour.

• Ambica Cot Seeds Limited
• Asahi Industries Company
• Bhaderesh Trading Company
• D.M.L. Exim Private Limited
• Gaj Industries
• Mangal Kalpana
• Nokoda Enterprises
• Ruchi Worlwide Limited
• S. Raja Export Private Limited
• Ajana Traders
• Akil Fertilizers
• Jalaram Traders
• Manav Industries
• Umiya Trading Company
• Umiya Marketing
• Arihant Trading Company
• Uday Corporation
• Gandesh Traders

No. of Employees :

16 (Approximately)

Bankers :

Bank Name	Kotak Mahindra Bank – Kadi
Branch	SH – 133, Kadi – 382715, Gujarat, India
Person Name (With Designation)	Not Divulged
Contact Number	91-2764-242908 / 91 – 9825562812 (Mr. Mehul Patel) (Ringing)
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)	OD = Rs. 80.000 Million
Account Operation	Not Divulged
Remarks (If any)	Management Non-Cooperative

Auditors :

Name :

B. Shah and Associates

Chartered Accountants

Address :

8, Raja Shopping Center Thol Road, TA : Kadi, District : Mehsana, Kadi – 382715, Gujarat, India

Tel No.:

91-2764-263979

Mobile No.:

91-9825628475

Email Id :

shah_asso@yahoo.com

PAN No.:

AEDPS5131D

Memberships :

Not Available

Collaborators :

Not Available

Sister Concern:

• Gaj Industries
• Anant Oil Industries
• Iswar Oil Industries

CAPITAL STRUCTURE

As on 31.03.2015

Capital Investment :
Owned :	Rs. 31.091 Million
Borrowed :	--
Total :	Rs. 31.091 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		31.091	24.918	24.702
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		31.091	24.918	24.702
LOAN FUNDS
1] Secured Loans		80.084	80.244	59.287
2] Unsecured Loans		34.041	41.762	15.428
TOTAL BORROWING		114.125	122.006	74.715
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		145.216	146.924	99.417
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.382	15.496	16.576
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.375	0.390	0.390
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	29.035	18.014	17.873
	Cash & Bank Balances	1.860	14.696	0.640
	Other Current Assets	87.973	65.405	49.323
	Loans & Advances	16.526	37.115	16.544
Total Current Assets		135.394	135.230	84.380
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.823	3.434	0.000
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	1.112	0.758	1.929
Total Current Liabilities		4.935	4.192	1.929
Net Current Assets		130.459	131.038	82.451
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		145.216	146.924	99.417

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	525.157	593.462	494.419
	Variation in Stocks	4.697	22.859	(13.215)
	Other Income	2.755	0.500	2.286
	TOTAL	532.609	616.821	483.490
Less	EXPENSES
	Manufacturer Expenses	513.207	601.141	465.023
	Administrative Expenses	4.128	4.374	5.905
	Remuneration	0.000	0.000	0.000
	Interest	2.968	2.492	2.767
	TOTAL	520.303	608.007	473.695
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	12.306	8.814	9.795
Less	FINANCIAL EXPENSES	10.298	7.020	7.490
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	2.008	1.794	2.305
Less/ Add	DEPRECIATION/ AMORTISATION	1.549	1.370	1.961
	NET PROFIT	0.459	0.424	0.344

The above information has been parted by Mr. Laxmanbhai Patel (Partner)

Note : Sole Proprietary 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)	(%)	0.09	0.07	0.07
Operating Profit Margin (PBIDT/Sales)	(%)	2.34	1.49	1.98
Return on Total Assets (PBT/Total Assets}	(%)	0.31	0.28	0.34
Return on Investment (ROI) (PBT/Networth)		0.01	0.02	0.01
Debt Equity Ratio (Total Debt /Networth)		3.67	4.90	3.02
Current Ratio (Current Asset/Current Liability)		3.47	2.94	4.86

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	24.702	24.918	31.091
Reserves & Surplus	0.000	0.000	0.000
Net worth	24.702	24.918	31.091
long-term borrowings	59.287	80.244	80.084
Short term borrowings	15.428	41.762	34.041
Total borrowings	74.715	122.006	114.125
Debt/Equity ratio	3.025	4.896	3.671

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	494.419	593.462	525.157
		20.032	(11.510)

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	494.419	593.462	525.157
Profit	0.344	0.424	0.459
	0.07%	0.07%	0.09%

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	No
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	Yes
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 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

FIXED ASSETS

• Land
• Electric Installation
• Building Capital
• Machinery
• Weigh Bridge
• Dead Stock
• Tubewell
• Scooter
• Tractor
• E-Bike
• C.C.T.V. Camera

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.66.13
UK Pound	1	Rs.100.55
Euro	1	Rs.71.26

INFORMATION DETAILS

Information Gathered by :	SPR
Analysis Done by :	DIV
Report Prepared by :	SUJ

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	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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.