MIRA INFORM REPORT

Report Date :

28.02.2007

IDENTIFICATION DETAILS

Name :	KRISHANAVENI CARBON PRODUCTS PRIVATE LIMITED
Registered Office :	63/3, Athipalayam Road, Chinnavedampatti, Coimbatore – 641006, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	27.03.2003
Com. Reg. No.:	18-10528
CIN No.: [Company Identification No.]	U00273TZ2003PTC010528
TAN No.: (Tax Deduction & Collection Account No.)	CMBK03307D
Legal Form :	Private Limited Liability Company
Line of Business :	Company is in engaged in Bearings and Bushings – Carbon, Bearings – Thrust, Brushes – Motor & Generator, Electrodes – Carbon, Joints – Rotary, Swivel, Plate – Carbon, Rods – Carbon, Seals – Carbon, Seals – Mechanical, Seals – Pump, Strips – Carbon

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :
Status :	Small Company
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a relatively small company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are however reported as usually correct and as per commitments. The company can be considered for small business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	63/3, Athipalayam Road, Chinnavedampatti, Coimbatore – 641006, Tamil Nadu
Tel. No.:	91-422-2669967/ 2669966
Fax No.:	91-422-2669966/2666695
E-Mail :	suresh@krishnacarbon.com
Website :	http://www.krishacarbon.com

SOLE PROPRIETOR/PARTNERS/DIRECTORS

Name :	Mr. R Ravichandran
Designation :	Director
Address :	63/3, Athipalayam Road, Chinnavedampatti, Coimbatore – 641006, Tamil Nadu
Date of Appointment :	27.03.2003
Name :	Mr. K G Rangaswamy
Designation :	Director
Address :	63/3, Athipalayam Road, Chinnavedampatti, Coimbatore – 641006, Tamil Nadu
Date of Appointment :	27.03.2003
Name :	Mr. R Ranganayaki
Designation :	Director
Address :	29, Surya Gardens, Peelamedu, Coimbatore – 641002
Date of Appointment :	27.03.2003

BUSINESS DETAILS

Line of Business :

Company is in engaged in Bearings and Bushings – Carbon, Bearings – Thrust, Brushes – Motor & Generator, Electrodes – Carbon, Joints – Rotary, Swivel, Plate – Carbon, Rods – Carbon, Seals – Carbon, Seals – Mechanical, Seals – Pump, Strips – Carbon

GENERAL INFORMATION

No. of Employees :	10
Bankers :	v Central Bank of India, Sidhapudur Branch, Coimbatore – 641044 v Indusind Bank Limited , 652-656, Tri Star Towers, Avinashi Road, Coimbatore – 641037
Facilities :	-

Banking Relations :	Unknown
Auditor :	Mr. K. Chandrasekaran Chartered Accountants
Address :	Kovai Tower, II Floor, 44-A, Balasundaram Road, Coimbatore-641018, Tamilnadu, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs. 10/- Each	Rs. 1.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs. 10/- Each	Rs. 1.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		2.955	2.955
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		10.943	5.257
4] (Accumulated Losses)		0.000	0.000
NETWORTH		13.898	8.212
LOAN FUNDS
1] Secured Loans		2.314	2.497
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		2.314	2.497
DEFERRED TAX LIABILITIES		0.951	0.579
TOTAL		17.163	11.288
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.225	13.900
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	9.726	0.765
	Sundry Debtors	21.128	19.371
	Cash & Bank Balances	1.504	2.163
	Other Current Assets	0.000	0.000
	Loans & Advances	5.322	13.602
Total Current Assets		37.680	35.901
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	35.766	38.543
	Provisions	0.000	0.000
Total Current Liabilities		35.766	38.543
Net Current Assets		1.914	(2.642)
MISCELLANEOUS EXPENSES		0.024	0.030
TOTAL		17.163	11.288

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2005	31.03.2004
Sales Turnover		92.987	84.790
Other Income		0.967	0.656
Total Income		93.954	85.446
Profit/(Loss) Before Tax		9.257	8.336
Provision for Taxation		5.686	5.257
Profit/(Loss) After Tax		3.571	3.079
Total Earnings		USD 247351.25	NA
Expenditures :
	Raw Material Consumed	56.795	56.992
	Salaries, Wages, Bonus, etc.	2.686	1.933
	Managerial Remuneration	0.900	0.570
	Payment to Auditors	0.022	0.022
	Interest	1.017	0.242
	Insurance Expenses	0.023	0.019
	Power & Fuel	0.726	0.675
	Other Expenditure	22.528	16.657
Total Expenditure		84.697	77.110

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004
PAT / Total Income	(%)	3.80	3.60
Net Profit Margin (PBT/Sales)	(%)	9.85	9.75
Return on Total Assets (PBT/Total Assets}	(%)	17.50	16.74
Return on Investment (ROI) (PBT/Networth)		0.67	1.01
Debt Equity Ratio (Total Liability/Networth)		2.74	5.00
Current Ratio (Current Asset/Current Liability)		1.05	0.93

LOCAL AGENCY FURTHER INFORMATION

Form 8 Particular for creation or modification of charges

Name of the company	KRISHANAVENI CARBON PRODUCTS PRIVATE LIMITED
Presented By	KRISHANAVENI CARBON PRODUCTS PRIVATE LIMITED AND INDUSIND BANK LIMITED, COIMBATORE
1) Date and description of instrument creating the change	29.09.2005 Composite agreement for hypothecation of stocks. Book debts, other current assets and plant and machinery.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.3.000 millions as LC issuance of Letter of Comfort (under buyer’s credit)
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of stock of raw materials, stock in process, finished goods, receivables and others, current assets located at the premises at 63/3, Athipalayam Road, Chinnavedampatti, Coimbatore-641006 and other places of business/godsons or in transit now belonging to the borrower. Hypothecation of movable fixed assets of the company WDV of Rs.14.864 millions as on 31.03.2005. Hypothecation of entire movable fixed assets of the company, machinery, equipments, motor car and vehicles, computer, electrical fittings, furniture, office equipments, television.
4) Gist of the terms and conditions and extent and operation of the charge.	Cash Margin 20% Commission as applicable for import LCs for import of carbon blanks.
5) Name and Address and description of the person entitled to the charge.	Indusind Bank Limited 652-656, Tri Star Towers Avinashi Road Coimbatore-641037
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

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.44.31
UK Pound	1	Rs.86.96
Euro	1	Rs.58.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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
TOTAL		30

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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