MIRA INFORM REPORT

Report Date :

04.05.2007

IDENTIFICATION DETAILS

Name :	SICAL LOGISTICS LIMITED
Formerly Known As :	SOUTH INDIA CORPORATION (AGENCIES) LIMITED
Registered Office :	“Adyar House”, Chennai – 600 085, Tamilnadu
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	06.05.1955
Com. Reg. No.:	2431
CIN No.: [Company Identification No.]	L51909TN1955PLC002431
TAN No.: [Tax Deduction & Collection Account No.]	CHES01371G
PAN No.: [Permanent Account No.]	AAACS3789B
Legal Form :	Public limited liability company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the shipping, stevedoring, ship chartering, ship repairing, marine engineering, marketing, clearing and forwarding business.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 12000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	“Adyar House”, Chennai – 600 085, Tamilnadu, India
Tel. No.:	91-44-25229341 (16 Lines)
Fax No.:	91-44-25220764 / 2258
E-Mail :	sicaedp@md2.vsnl.net.in
Website :	http://www.sical.com
Corporate Office :	“South India House”, No. 73, Armenian Street, Chennai – 600 001, Tamilnadu
Tel. No.:	91-44-25224202 (16 lines) / 25229341
Fax No.:	91-44-25224202 / 25224202
E-Mail :	sicaedp@md2.vsnl.net.in ho@sical.com
Website:	http://www.sical.com
Plants :	Oil Palm Project Ambapuram, Bapalapadu Mandal, Krishna District - 521 109, Andhra Pradesh
Plants:	Cytozyme Mundiyambakkam, Villupuram District - 605 601, Tamilnadu
Plants:	Speciality Chemicals Thirubuvanai, Pondichery
Plants:	Refractories Vanagaram Village, Poonamallee High Road, Chennai - 602 102, Tamilnadu GIDC, Kerala Industrial Estate, Dhoika Taluka, District Ahmedabad - 382 220, Gujarat
Plants:	Ceramic Works Ammananthangal Village, Walajapet - 613 532, Vellore District, Tamilnadu
Plants:	Flexible Shaft Puzhal, Chennai - 600 066, Tamilnadu
Plants:	Autocomponents A-1, F5, Industrial Estate, Maraimalai Nagar, Kancheepuram District, Tamilnadu
Plants:	Plantations Bavalimoole Estate, Sakleshpur Taluk, Hassan District, Karnataka
Plants:	Packaging & Drums Ponneri High Road, Gounderpalayam Village, Minjur, Chennai - 601 203, Tamilnadu

DIRECTORS

Name :	Dr A C Muthiah
Designation :	Chairman
Name :	Mr. Ashwin C Muthiah
Designation :	Vice Chairman
Name :	Mr. S Chandra Das
Designation :	Director
Name :	Mr. R Muthu
Designation :	Director
Name :	Mr. Dhananjay N Mungale
Designation :	Director
Name :	Mr. Jawahar Vadivelu
Designation :	Director
Name :	Mr. M Ajayakumar
Designation :	Director
Name :	Mr. V R Mehta
Designation :	Nominee Director-UTI
Name :	Mr. R Ramakumar
Designation :	Managing Director

KEY EXECUTIVES

Name :	Mr. S Sathiyanarayanan
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
PROMOTERS' HOLDING*
Promoters
- Indian promoters   - Foreign promoters	17032510 Nil	56.45 Nil
Persons acting in concert#	Nil	Nil
Sub-Total	17032510	56.45
NON-PROMOTERS' HOLDING
Institutional investors	Nil	Nil
Mutual funds and Unit Trust of India	209811	0.70
Banks, financial institutions, insurance companies (Indian central govt institutions/state govt. institutions/non-govt. institutions)	897741	2.98
Foreign institutional investors	4442317	14.72
Sub-Total	5549869	18.40
OTHERS
Private corporate bodies	3496535	11.59
Indian public	3840312	12.73
NRIs	43687	0.14
Any other - Clearing members	206411	0.68
- Trusts	1960	0.01
- Foreign national	400	0.00
Sub-Total	7589305	25.15
Grand Total (A+B+C)	30171684	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the shipping, stevedoring, ship chartering, ship repairing, marine engineering, marketing, clearing and forwarding business.

Products :

Item Code No.	Product Description
22081000	Indian made foreign liquor
17019902	Sugar
NA	Logistics & salts

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Fire Bricks	MT	24000.00	24000.00	19834.57
Refractory Bonding Materials	MT			803.74
Stoneware Pipes	MT	6600.00	6600.00	5224.50
Steel Pipes	Mtrs.
P V C Pipes	Mtrs.
Cables	Mtrs.
Wood Screws	Gross	925000.00	600000.00	--
Flexible Shaft Machine With Accessories	Nos.	1331.00	4000.00	1313.00
Speciality Chemicals	TPA	300.00	300.00	243.33
Cytozyme	Ltrs.	200000.00	200000.00	159000.00
Cytozyme Granules	MT	200.00	200.00	231.50
Wanis	Ltrs.	100000.00	100000.00	33884.00
NeemGold	Ltrs.	--	--	25085.00
Bio Gold	Ltrs.			23860.00
Speedo Meter Cables	Nos.	400000.00	456000.00	--
Remote Control Cables	Nos.	360000.00	90000.00	--
Barrels	Nos.	--	167205.00	191237.00
D C Motors for Industrial and Automotive Application	Nos.			135341.00
Hardware Materials	Kgs
Vehicles	Nos.
Vehicles Spares
Coffee uncured	MT			286.45
Palm Oil	MT			3739.49
Kernel Cake				835.33
Kernel Oil				556.81

GENERAL INFORMATION

Customers :

American President Lines

Bharat Earth Movers

Bharat Heavy Electricals

BMP Billiton

Birla White

Caltex India

Castrol

Chios Navigation

Datacraft

Glencore

Haier

Henkel SPIC

Hindustan Aeronautics

Hindustan Lever

Hindustan Petroleum Corporation

Honda Ciel

India Cements

Indian Space Research Organization

Indian Telephone Industries

Infosys

JSW

Kalyani Ferrous Industries

Karnataka Power Corporation

Kirloskar Ferrous

LG

Maersk

Moser Baer

National Mineral Development Corporation

Neyveli Lignite Corporation

Oil and Natural Gas Corporation

Oldendorff

Panasonic

Pepsi

Samsung

Setaf Saget

Sony

Southern Petrochemical Industries Corp

Tamil Nadu Electricity Board

Tamilnadu Petro

Tata Consultancy Services

Tuticorin Alkali Chemicals and Fertilizers

Wilson International

No. of Employees :

800

Bankers :

Ø Allahabad Bank, Chennai, Tamilnadu

Ø Bank of India, Chennai, Tamilnadu

Ø Bank Muscat S.A.O.G., Chennai, Tamilnadu

Ø Centurion Bank Limited, Chennai, Tamilnadu

Ø Global Trust Bank Limited, Chennai, Tamilnadu

Ø HDFC Bank Limited, Chennai, Tamilnadu

Ø IDBI Bank Limited, Chennai, Tamilnadu

Ø Indian Bank, Chennai, Tamilnadu

Ø State Bank of India, Chennai, Tamilnadu

Ø State Bank of Mauritius Limited, Chennai, Tamilnadu

Ø The Federal Bank Limited, Chennai, Tamilnadu

Ø The Karnataka Bank Limited, Chennai, Tamilnadu

Ø UTI Bank Limited, Chennai, Tamilnadu

Ø Yes Bank

Facilities :

SECURED LOANS	Rs in millions
NON-CONVERTIBLE DEBENTURES	224.919
LOANS FROM BANKERS
Working capital facilities	689.555
Term Loans	752.952
Interest accrued and due	1.826
LOANS FROM FINANCIAL INSTITUTIONS
Term Loans	890.903
Interest accrued and due	1.983
LOANS AND ADVANCES FROM OTHERS
Interest free Sales Tax Loan	1.237
Hire Purchase Loans	113.351
15.25%, Rs.450 Millions are redeemable at par, at the end of 3^rd , 4^th and 5^th year, commencing from the respective date of allotment during October 1999 to March 2000 are secured by immovable properties at Sakleshpur Estates along with standing trees and crops , cranes at JD(V) berth of Chennai Port, Floating Drydock and Land at Mehsana - Gujarat.
A Debenture holder of Rs 450 Millions who has exercised the "Put Option" has filed a case before Debt Recovery Tribunal-1, Mumbai had restrained the Company from payment of dividend already declared in 2002 and also restrained the Company from receipt of retention money from TNEB. The Company has contested the case before DRT, Mumbai and also in the writ preferred by the Company before the Hon'ble High Court, Madras in April, 2005, the Hon'ble High Court, Madras ordered that: (1) The dues of Rs.450 Millions to the debenture holder has to be paid in five quarterly equal instalments commencing from July 2005. (2) Waiver of Interest, Penal Interest and Liquidated Damages are to be settled with the debenture holder. The company so far repaid Rs.270 Millions of principal and Rs.80 Millions of interest and for the balance payment of Principal and interest the company has filed a consent term agreed with the debenture holder with DRT, Mumbai.
Includes interest accrued and due Rs. 44.919 Millions
Other Secured Loans a) Working Capital Facilities from Bankers are secured by hypothecation of stocks, book debts and other current assets, by plant and machinery of certain divisions, by way of equitable mortgage / deposit of title deeds of certain immovable properties on exclusive / pari passu basis and by a pari passu second charge on movable and immovable assets, executed / pending execution, guarantee of a Director, as applicable. b) Term Loans from Banks are secured by mortgage of movable and immovable property acquired under the respective Loan, hypothecation of current assets, pledge of equity shares and guaranteed by a Director, as applicable. c) Term Loans from financial Institutions are secured by equipments acquired under the Loan, first charge / mortgage on movable and immovable assets executed/pending execution as applicable d) Interest free sales tax loan is secured by second charge on fixed assets and certain current assets and paripassu first charge on certain fixed assets. e) Hire Purchase Loans are secured by hypothecation of respective assets acquired under the hire purchase contracts.

Banking Relations :	Satisfactory
Auditors :
Name :	CNGSN & Associates Chartered Accountants
Address :	20, Raja Street, T Nagar, Chennai 600017
Subsidiaries :	Sicagen India Limited South India House Estates and Properties Limited, (formerly South India House Investments Limited) MAC Oil Palm Limited Ranford Investments Limited Darnolly Investments Limited
Associates :	SDB Cisco (India) Limited Joint Ventures Sical Distriparks Limited PSA Sical Terminals Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs. 10/- each	Rs. 500.000 Millions
150000000	Preference Shares	Rs. 10/- each	Rs. 1500.000 Millions
	Total		Rs. 2000.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
3,28,50,677	Equity Shares	Rs. 10/- each	Rs. 328.507 Millions
2,54,50,000	Preference Shares	Rs. 10/- each	Rs. 254.500 Millions
	Total		Rs. 583.007 Millions

Subscribed Capital :

No. of Shares	Type	Value	Amount
3,02,07,782	Equity Shares	Rs. 10/- each	Rs. 302.078 Millions
2,54,50,000	Preference Shares	Rs. 10/- each	Rs. 254.500 Millions
	Total		Rs. 556.578 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
3,01,71,684	Equity Shares	Rs. 10/- each	Rs. 301.716 Millions
	Add: Forfeited Shares		Rs. 0.181 Millions
	Total		Rs. 301.897 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		301.897	515.511	515.511
2] Share Application Money		0.000	170.140	170.140
3] Reserves & Surplus		2842.739	1392.103	1082.666
4] (Accumulated Losses)		0.000	0.000	0.000
.NETWORTH		3144.636	2077.754	1768.317
LOAN FUNDS
1] Secured Loans		2676.726	2880.697	2975.683
2] Unsecured Loans		557.658	792.136	869.883
TOTAL BORROWING		3234.384	3672.833	3845.566
DEFERRED TAX LIABILITIES		278.975	252.688	274.301
TOTAL		6657.995	6003.275	5888.184
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1860.123	1850.151	2090.606
Capital work-in-progress		709.452	195.327	190.151
INVESTMENT		410.003	409.501	408.986
DEFERREX TAX ASSETS				0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	454.234	347.919	356.374
	Sundry Debtors	2596.836	2416.205	2535.209
	Cash & Bank Balances	247.750	343.874	312.002
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3412.480	3588.162	3505.468
Total Current Assets		6711.300	6696.160	6709.053
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	3045.567	3169.664	3529.031
	Provisions			0.000
Total Current Liabilities		3045.467	3169.664	3529.031
Net Current Assets		3665.833	3526.496	3180.022
MISCELLANEOUS EXPENSES		12.584	21.800	18.419
TOTAL		6657.995	6003.275	5888.184

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		9585.274	12137.641	10906.073
Other Income		106.920	77.424
Total Income		9692.194	12215.065	10906.073
Profit/(Loss) Before Tax		786.790	374.941	59.116
Provision for Taxation		135.836	33.571	(37.489)
Profit/(Loss) After Tax		650.954	341.370	96.605
Imports :
	Raw Materials	173.802	176.036
	Components and Spare Parts	53.767	141.578	150.834
	Capital Goods	0.440	0.000
Total Imports		228.009	317.614	150.834
Expenditures :
	Cost of Goods Sold	2801.682	2649.634
	Cost of Services	5099.985	7953.639
	Agricultural Expenses	11.112	4.668
	Salaries, Wages and Other benefits	215.337	208.576	10850.225
	Manufacturing and other expenses	370.418	456.204
	Interest & Financial Charges	265.339	435.687
	Depreciation	137.823	128.114
	Miscellaneous Expenditure written off	4.711	4.712
Total Expenditure		8906.407	11841.234	10850.225

QUARTERLY RESULTS

PARTICULARS	30.06.2006	30.09.2006	31.12.2006
Type	1st Qtr	2nd Qtr	3rd Qtr
Sales Turnover	2421.500	2454.900	2245.800
Other Income	06.100	30.700	32.900
Total Income	2427.600	2485.600	2278.700
Total Expenditure	2172.100	2262.500	1971.700
Operating Profit	255.500	223.100	307.000
Interest	73.300	93.400	60.600
Gross Profit	182.200	129.700	246.400
Depreciation	34.300	38.300	37.700
Tax	33.400	31.900	102.800
Reported PAT	114.500	61.200	107.800

200606 Quarter 1 –

1. Previous Period's Figures have been regrouped wherever necessary. 2. Regarding statutory auditors comments on the audited accounts for the year ended 31st March 2006 the management's replies are: (I) Comment: Investments in certain shares considered as long term investments stated at Book Value, whose market value is lower by Rs.37.1 Millions: Reply: Investments in certain shares are strategic long term investments and the intrinsic value of the same is relevant as compared to its market value. (II) Comment: Advances under Court Cases &Arbitration aggregating to Rs. 254.500 Millions are stated at book values: Reply: These pertain to cases under Court &Arbitration proceedings and are being closely followed up with legal counsels. (III) Comment: Dues by Subsidiary aggregating to Rs.754.400 Millions stated at book values: Reply: The management is in the process of restructuring its subsidiary company to deal in estates and properties. Various amounts due from the subsidiary company will be either refunded by the subsidiary or restructured by way of (a) transfer of its investments to the holding company and (b) sale of other assets 3. Details of lnvestors/Shareholders complaints for the quarter ended30thJune2006 are furished below: No. of Complaints Complaints received Replied/ Pendingasat as at 01.04.2006 during the quarter Disposed off 30.06.2006 Nil 9 9 Nil 4. The Board of Directors have decided to demerge the Oil Palm Division of the Company and is in the process of obtaining the necessary approvals. Profit Before Tax of the Oil Palm Division for the quarter is Rs.8.100 Millions (Rs.9.900 Millions - 2005-06 1st quarter) and the Income Taxis Rs.2.700 Millions (Rs.3.300 Millions -2005-06 1st quarter ) 5. The above results together with a 'Limited Review' by the Auditors of the Company, were taken on record by the Board of Directors at the Meeting held on 31^st July 2006.

200609 Quarter 2 –

Expenditure Includes (Increase) / Decrease in Stock in Trade Rs 21.60 million Consumption of Raw Materials Rs 184.50 million Purchase of Traded Goods Rs 742.00 million Stores Consumed Rs 6.10 million Staff Cost Rs 54.40 million Power, Fuel & Water Charges Rs 9.00 million Manufacturing & Other Expenses Rs 91.60 million Cost of Services Rs 1153.30 million Tax Includes Provision for Provision for Tax Rs 31.20 million Deferred Tax Rs(1.70) million Fringe Benefit Tax Rs 0.70 million EPS is Basic Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 07 Complaints disposed off during the quarter 07 Complaints unresolved at the end of the quarter Nil 1. Previous Periods Figures have been regrouped wherever necessary. 2. Regarding statutory and comments on the audited accounts for the year ended March 31, 2006 the management replies are; i. Comment: Investments in certain shares considered as long term investments stated at Book Value, whose market value is lower by Rs 37.10 million; Reply: Investments in certain shares are strategic long term investments and the intrinsic value of the same is relevant as compared to its market value. ii. Comment: Advances under Court Casts & Arbitration aggregating to Rs 254.50 million are stated at book values: Reply: These pertain to cases under court & Arbitration proceeding and are being closely followed up with legal counsels iii. Comment: Dues by Subsidiary aggregating to Rs 755.60 million stated at book values: Reply: The management is in the process of restructuring its subsidiary Company to deal in estates and properties. Various amounts due from the subsidiary company will be either refunded by the subsidiary or restructured by way of (a) Transfer of its investments to the holding company and (b) sale of other assets 3. The Board of Directors have decided to demerge the Oil Palm Division of the Company and is in the process of obtaining the necessary approvals. Profit Before Tax of the Oil Palm Division for half year is Rs 26.20 million (Rs 26.30 million - 2005-06 half year) and t Income Tax is Rs 8.60 million (Rs 8.60 million 2005-2006 half year) 4. The above results together with a Limited Review by the Auditors of the Company, were taken on record by the Board of Directors at the Meeting held on October 25, 2006.

200612 Quarter 3 –

Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (5.90)million Consumption of Raw Materials Rs 106.50 million Purchase of Traded Goods Rs 687.60 million Stores Consumed Rs 3.30 million Staff Cost Rs 54.80 million Power, Fuel & Water Charges Rs 2.60 million Manufacturing & Other Expenses Rs 127.60 million Cost of Services Rs 995.20 million Tax Includes Provision for Provision for Tax Rs 101.10 million Deferred Tax Rs (1.90) million Fringe Benefit Tax Rs 1.70 million EPS is Basic Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 22 Complaints disposed off during the quarter 22 Complaints unresolved at the end of the quarter Nil 1. Previous Period's Figures have been regrouped wherever necessary. 2. Regarding statutory auditors comments on the audited accounts for the year ended March 31, 2006 the management's responses are: (I) Comment: Investments in certain shares considered as long term investments stated at Book Value, whose market value is lower by Rs 37.10 million Response: Investments in certain shares are strategic long term investments and the Intrinsic value of the same is relevant as compared to its market value. (II) Comment: Advances under Court Cases & Arbitration aggregating to Rs 254.50 million are stated at book values: Response : These pertain to cases under court & Arbitration proceedings and are being closely followed up with legal counsels (III) Comment: Dues by Subsidiary aggregating to Rs 755.60 million stated at book values Response : The management is in the process of restructuring Its subsidiary Company to deal in estates and properties. Various amounts due from the subsidiary Company will be either refunded by the subsidiary or restructured by way of (a) transfer of its investments to the holding Company and (b) sale of other assets 3. The Board of Directors have decided to demerge the Oil Palm Division of the Company and necessary approval from the court has been obtained. After fulfilling the formalities the same will be filed with Registrar of Companies. Profit Before Tax of the Oil Palm Division for the nine months ended is Rs 80.80 million (Rs 34.40 million 2005-06 nine months ) and the Income Taxis Rs 27.00 million ( Rs 11.50 million - 2005-06 nine months). 4. The above results together with a 'Limited Review' by the Auditors of the Company, were taken on record by the Board of Directors at the Meeting held on January 30, 2007.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	1.41	2.25	2.83
Long Term Debt-Equity Ratio	1.07	1.56	1.88
Current Ratio	1.55	1.35	1.26
TURNOVER RATIOS
Fixed Assets	3.59	4.48	3.83
Inventory	24.22	34.80	26.27
Debtors	3.88	4.95	4.10
Interest Cover Ratio	3.63	1.94	1.08
Operating Profit Margin(%)	12.60	8.21	7.94
Profit Before Interest And Tax Margin(%)	11.18	7.17	6.45
Cash Profit Margin(%)	8.12	4.19	2.31
Adjusted Net Profit Margin(%)	6.70	3.14	0.83
Return On Capital Employed(%)	18.46	16.24	12.55
Return On Net Worth(%)	28.01	26.96	7.39

STOCK PRICES

Face Value	Rs.10.00/-
High	Rs.201.85/-
Low	Rs.199.90/-

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

Ø Freehold Land

Ø Leasehold Land

Ø Buildings

Ø Leasehold Improvements

Ø Plant & Machinery

Ø Office Equipments

Ø Furniture & Fixtures

Ø Ship

Ø Trucks

Ø Vehicles

Ø Leased Machinery

Ø Port Handling Equipment

History

South India Corporation (Agencies) (SICL) was incorporated as a private limited company on 6 May '55, and became a public limited company on 20 Mar.'81. The company was founded by M A Chidambaram and his son Ashwin C Muthiah. Other group concerns are MAC Industries, etc. The company is engaged in the shipping, stevedoring, ship chartering, ship repairing, marine engineering, marketing, clearing and forwarding business. The company proposed to issue 1.526 Millions equity shares at a premium of Rs 40 per share on a rights basis. In Feb.'84, an offer for sale was made of 0.2 Millions equity shares at a premium of Rs 15 per share to the Indian public. SICL has negotiated with Tide Water India, US, to form a joint venture for supply of technical know-how and management of supply vessels. Accordingly, a new company, Goodwill Tide Water (India), was incorporated on 4 Nov.'85. 

During the year 1995-96, the company has redeemed the second instalment of Non-convertible Debentures of the face value of Rs 40 per debenture at the rate of Rs 14 per debenture amounting to Rs 5. Millions company issued bonus shares in the ratio of 1:1 by capitalising the reserves to the extent of Rs 42.2Millions. 

 Act India Limited and MAC Industrial Products Limited were amalgamated with the company. The directors have also approved a scheme of amalgamation by which Trichy Everest Automobiles & Agencies Private Limited will get amalgamated with the company. The amalgamation would result in synergisation of the operations apart from broadening the asset base of the company. 

During the year 1999-2000, 2238198 equity shares of Rs 10/- each were issued and allotted to the shareholders of erstwhile MAC Agro Industries Limited and as a result of which the equity share capital has increased from Rs 253.100 Millions to Rs 275.500 Millions.

NEW NAME, NEW IDENTITY: 

Upon the approval of shareholders at the extra-ordinary general meeting held on 6 January 2006 and required government approvals, South India Corporation (Agencies) Limited was renamed Sical Logistics Limited, effective 14 February 2006, to reflect Sical's future business focus and positioning as a pure play integrated logistics provider. 

A new logo has been adopted which communicates freshness, dynamism, growth, leadership and a commitment to perform. 

PERFORMANCE: 

Even as the company's FY 2005-06 sales fell to Rs.9692.200 Millions from Rs.12215.100 Millions in the previous year, profit after tax rose 72.47% on-year to Rs 536.900 Millions, vindicating the company's strategy to focus on profits and profitability rather than merely on the tope. Profit before interest and depreciation was Rs.1189.900 Millions against Rs 938.700 Millions in the previous year. 

LOGISTICS: 

Sical's logistics division-the company's core business-operates across the following service lines: 

1. Port logistics: port terminals; port handling; ship agency and chartering customs handling 

2. Inland transportation: trucking; warehousing 

3. Container stations: container freight stations and inland container depots 

4. Offshore supplies 

Revenue of the logistic division in FY 2005-06, on a consolidated basis, was Rs.6177.600 Millions, accounting for 62.21% of Sical's total consolidated revenues, and down 43.17% from Rs 8844.400 Millions in FY 2004-05. EBIDTA the logistics division was Rs 965.04 million, contributing 81% of the company's total segment-wise EBIDTA of Rs 1.19 billion. 

The rise in profits and profitability; even as sales fell, was mainly because of one, success on fronts relating to financial and operational restructuring, and, two, an improvement in operational efficiencies. 

PORT LOGISTICS Port terminals and port handling: 

Handling of coal and coke continued to be a major contributor for this division. Sical continues to be the largest bulk cargo handling service provider in the sub-continent by volume and the handling productivity has increased considerably. The volume of coal handled for TNEB at Ennore Port on BOT basis was 7.898 million MT in FY 2005-06. 

Ship agency: 

Though there was a slight drop in the activity of this division during the first three quarters of the current fiscal, the business has picked, up well in the last quarter. 

Clearing and forwarding: 

This division undertakes the clearance of goods through customs for imports and exports and also functions as a customs house agency. This division serves as an interface between the customs and the shippers/receiver. The primary services provided relate to arranging clearance of imported goods and shipment of exported goods, to advise on the import of capital goods, raw materials and other cargo and with a specialization in handling hazardous and sensitive project cargo. 

INLAND TRANSPORTATION: 

Increased business from major customers, particularly Caltex, Tamil Nadu Petrochemicals, Pepsi India, and Shell India, resulted in Sical's trucking division transporting 26,29,118 metric tonnes in FY 2005-06, up 7.05% from 24,55,974 metric tonnes transported in FY 2004-05. 

Sical has already announced a major expansion of its transportation operations; in FY 2006-07, 300 vehicles, primarily double-axle trucks and tankers, will be added to Sical's existing house fleet of 320 vehicles. The acquisition of trucks and other related expenditure relating to road transportation will involve an expenditure of Rs 500 Millions in FY 2006-07. 

The steep hike in petroleum prices did not have any significant impact on the performance as all the contracts provide for adjustment of rates in case of change in the price of fuel. 

Sical operates a large network of covered warehouses catering to fertilizers, cement, and FMCG. In FY2005-06, the total volume handled by Sical's warehouses was 468267 metric tonnes, down 39.75% from 777215 metric tonnes a year ago. 

Value added services in select warehouses are being planned for export and domestic cargo such as bagging and repacking, palletizing, strapping and shrink packing. 

Container Stations: 

Reputed clients have placed orders for movement of both loaded and empty containers at the container freight stations in Noida, Visakhapatnam, and Tuticorin: 

Noida: 18270 TEUs were handled against 5168 TEUs in FY 2004-05 Vizag: 9393 TEUs against 10384 TEUs in FY 2004-05 Tuticorin: 17440 TEUs against 11235 TEUs in FY 2004-05 Offshore Supply Logistics 

Sical manages and operates 15 offshore vessels of ONGC; OSVs carry supplies from the shore to ONGC's offshore oil platforms. The company also owns an OSV that operates in the spot market for various offshore companies. The company plans to acquire 4-5 OSVs in FY 2006-07. 

BUILDING MATERIAL'S: 

Revenue of the building materials division was Rs.1540.400 Millions against Rs.1539.300 Millions a year ago; profit before tax was up marginally at Rs 38.100 Millions from Rs.36.900 Millions a year ago. The division lifted a record 18440 MT from Tata Tubes, a Tata Steel subsidiary, during FY 2005-06. 

MANUFACTURING GROUP: 

Refractories: 

Revenue in FY2005-06 was Rs 193.800 Millions against Rs 242.700 Millions a year ago. Operating profit was Rs 14.500 Millions against Rs 15.300 Millions in the previous year. The fall in revenue was owing to the production being hampered due to heavy floods and water inundation inside the factory. 

Automotive electrical components: 

Revenue fell to Rs 194.100 Millions from Rs 275.600 Millions a year ago, mainly because the market for vehicles turnedsluggish in the fourth quarter of FY 2005-06. Profit before tax was Rs 19.300 Millions against Rs 25.400 Millions a year ago. With accreditions QS 9000. ISO 14001 and ISO 9001/TS 16949 (2002), the division provides zero-parts-per-million-defect components to Ford India, Fiat India, Maruti Udyog and Tata Motors. A major addition to the client list was Tata Toyo for their 207 DI and Tata Ace models. The division concentrated on reducing the operating cost by implementing value engineering, re-engineering through Kaizen. 

Flexible shafts and drums: 

Even as revenue fell marginally to Rs 225.900 Millions from Rs 239.600 Millions in the previous year; profit before tax was up at Rs 45.400 Millions against Rs   11.200 Millions. The improvement was on the back of increase in the dealers' network, cost effective measures, and reduction in input costs in the drums sector. 

Oil palm: 

Revenue was Rs152.500 Millions against Rs.158.000 Millions in the previous year, and profit before tax was Rs 36.300 Millions against Rs 44.200 Millions. The division developed a technique to separate shell from fiber and later selling the same to mosquito coil manufacturers. 

Agri bio-products: 

Revenue and profit before tax in FY 2005-06 were Rs 43.900 Millions and Rs 23.100 Millions against Rs 41.800 Millions and Rs 20.500 Millions, respectively, in FY 2004-05. Commercial production of two new products, Neemgold and Bio-gold, began during the year. 

Speciality chemicals: 

Revenue and profit before tax were Rs 24.800 Millions and Rs 08.700 Millions during FY2005-06 against Rs 28.700 Millions and Rs 11.100 Millions, respectively, in the previous year. 12 new chemicals were added to the product range. 

Plantations: 

Revenue was Rs 18.500 Millions against Rs 10.700 Millions a year ago, while profit before tax was Rs 7.3 Millions against Rs 5.900 Millions. At Sakleshpur in Karnataka state, the cultivable area was increased to 862 acres from 853 acres in the previous year. Production of coffee beans rose 8.37% on year to 203 tonnes. The prospects for the division look bright with the price of coffee beans rising in international markets. 

SERVICES: 

Dealership of cars and commercial vehicles: 

Revenue was Rs 950.800 Millions against Rs 777.400 Millions, and profit before tax was Rs 3.200 Millions against a loss of Rs.7.2 Millions a year ago. The improved performance was due to introduction of innovative small commercial vehicles by Tata Motors, introduction of the new Lancer Cedia car model and reviewing of the Pajero by Hindustan Motors. 

Travel agency: 

Revenue was Rs 11.7 Millions against Rs 20.1 Millions a year ago, while profit before tax was Rs 02.7 Millions against Rs 02.600 Millions. 

Goodwill Governor Services: 

Revenue was Rs 52.0 Millions against Rs 52.3 Millions a year ago; profit before tax was Rs15.6 Millions against Rs 14.900 Millions. 

A test bench was established at Chennai and another one at Raipur. Woodward recognized the division as its turbine retrofit partner. In addition to service/repair, the division is authorized to carry out retrofit of old turbines with Woodward controls. 

JOINT VENTURES/INTERESTS: 

PSA SICAL Terminals Limited: 

Revenue in FY 2005 was Rs 661.400 Millions against Rs 630.700 Millions in the previous year; operating profit was Rs 31.0 Millions against Rs 31.900 Millions. In FY 2005, the JV handled 505 ships and 320298 TEUs against 481 ships and 294298 TEUs in FY 2004. The company declared a dividend of 80% for the year to 31 December 2005. 

MITSUBA SICAL INDIA LIMITED: 

Revenue was Rs 919.3 Millions and net profit was Rs.24.0 Millions for the year to 31 December 2005 against Rs 598.500 Millions and net profit of Rs 29.300 Millions in the previous year. 

SICAL DISTRIPARKS LIMITED: 

Upon joint venture partner CWT Distribution Limited relinquishing its rights, the name of the company was changed to Sical Distriparks Limited, effective 11 November 2005. 

Revenue was Rs.207.600 Millions in FY 2005-06 against Rs.106.0 Millions in the previous year; profit before tax was Rs 36.9 Millions against Rs 09.1 Millions. 59169 TEUs were handled during FY 2005-06 against 33,352 TEUs in FY 2004-05. 

NEW INITIATIVES: 

Pan-india Container Train Operations: 

In February 2006, Sical made an application to the Indian Railways to operate container trains on an all-India license for export-import and domestic cargo including all the four categories offered by the Indian Railways: between JNPT/Mumbai ports and the national capital region (NCR); JNPT/Mumbai ports with the hinterland except for NCR;ports of Pipavav, Mundra, Chennai/Ennore, Visakhapatnam and Kochi with the hinterland; ports of Kandla, New Mangalore, Tuticorin, Haldia / Kolkata, Paradip and Mormugao with the hinterland. The license to operate container trains is for 20 years and may be extended by another 10 years subject to certain conditions relating to performance. 

The company plans a first phase 3-year investment of nearly Rs 3.7 billion. 

The investment will go towards developing container train operations connecting the Jawaharlal Nehru Port Trust (JNPT) at Nhava Sheva near Mumbai, to Sical's existing inland container depot at Noida, near Delhi, and towards developing similar operations on 3 other strategic routes in India. Major expenditure will include creating facilities with railway sidings at the inland locations, and investments in container rolling stock and handling equipment. 

The container train operations are expected to add several new product lines to Sical's existing folio of integrated multimodal logistics; besides, the new business will capture a large portion of Sical's own 20 million tpa freight traffic that it transports with the Indian Railways. 

Container Train Terminal At Nagpur Hub Airport: 

In April 2006, the Maharashtra Airport Development Company issued the letter of intent (Lol) to the consortium led by Sical Logistics for setting up a rail terminal as part of the proposed Multi-modal International Hub Airport at Nagpur in central India. 

The rail terminal will be developed on a build-operate-transfer (1307) contract, on a 24-hectare plot on lease for 66 years. It will have the capacity to handle 150,000 TEU (twenty-footcontainer equivalents) a year. The facilities, consisting mainly of a container freight station with neutral rail siding and handling infrastructure for export-import/domestic bulk and containerized cargo, are proposed to be built in phases in line with client needs and Sical's own container train requirements. 

The terminal is expected to be operational in the first quarter-year of  

FY08-09. 

A special purpose vehicle is proposed to be formed with Sical Logistics owning at least 51% equity stake and MADC owning 26% stake, the owner of the remaining stake being Gupta Coal Limited 

The 150,000 TEU-a-year-capacity rail terminal will provide the following main services: 

· Container stuffing and de-stuffing

· Cargo handling facilities 

· Transportation, C&F, and bonding 

· Railway movement 

· Container freight station for Exim trade 

SUBSIDIARY COMPANIES: 

SOUTH INDIA HOUSE ESTATES & PROPERTIES LIMITED: 

The company's name was changed from South India House Investments Limited to South India House Estates & Properties Limited, effective 13 July 2005, after obtaining necessary government approvals. 

South India House Estates & Properties Limited, a wholly owned subsidiary of the company, has posted a profit of Rs 11.200 Millions during the fiscal year to 30 June 2005. 

The accounts for the year to 30 June 2005 are attached in accordance with Section 212 of the Companies Act, 1956. 

SICAGEN INDIA LIMITED: 

The name of the company has been changed from Sical Logistics Limited to Sicagen India Limited, effective 10 February 2006, after obtaining necessary approvals. Sicagen India Limited is a 100% subsidiary of the company. The objects of the company were amended as per the approval of shareholders at the extraordinary general meeting held on 6 February 2006. The company is yet to begin operations. 

MAC OIL PALM LIMITED: 

Upon approval of the members at the extra-ordinary general meeting on 6 January 2006 for hiving off the company's non-logistics divisions/units, MAC Oil Palm Limited was incorporated on 10 February 2006 to focus on the palm oil business. The company is yet to commence operations. 

OPERATIONS: 

The BOT contract at Ennore for coal operation to TNEB yielded the expected results. Handling of cargoes for KPCL and adding two more clients, namely, Hothur Steels for handling of coal at Chennai, and Rashtriya Chemicals for handling of fertilizers at Mumbai Port, have contributed to the improved performance of the logistics division. 

The company together with other consortium members has been selected for operating container trains being offered to private players by the Indian Railways. The company has been successful in the bid for the development of the Rail Terminal on BOT basis for 66 years lease in Nagpur. 

Trucking and warehousing and ship agency business operations were on expected lines. ONGC and CWC contracts have performed well during the year under review. 

Growth in the real estate and construction activities helped the building materials division to achieve better results. 

Manufacturing units made a significant contribution to the improved performance of the company. Speciality Chemicals added 12 new products to the list and the cytozyme division introduced two new products BIO-GOLD and NEEMGOLD. Auto components sector was able to add to their client list Tata Toyo and Tata Ace. 

Reflecting the growth in the automotive sector the vehicle sales division came out of the red and made considerable progress due to introduction of new vehicles Cedia by Lancer and Tata Ace in the commercial vehicles segment. Travels division and Goodwill Governor Services division also did well' during the year under review. Due to a very good monsoon, the plantations division was able to reap a better harvest than the previous year. 

As a part of the major but difficult financial restructuring efforts initiated, the company was able to swap high cost loans with lower interest bearing loans thereby reducing financial costs. 

OPPORTUNITIES AND THREATS: 

The company together with other consortium members has been selected for operating container trains being offered to private players by the Indian Railways. The company in the first phase will take up the project of connecting JNPT with Noida ICD. The company has been selected for development of Rail Terminal on BOT basis for 66 years lease in Nagpur along with a consortium of members. The overall developmental activities especially in the infrastructure, power projects, industrial parks would provide ample opportunity to the company for its prosperous growth. 

A number of downside risks loom over the global economy which has implications for the medium-term prospects of countries like ours. 

The key global risks for emerging economies are potential escalation and volatility in international crude prices which will have a high impact on the manufacturing sector. Surge in the oil prices may impact growth of almost all sectors of the economy. 

The consequent sluggish growth in the automotive sector, increased oil prices, increase in the operating cost of our trucks, monsoon and natural calamities will have a bearing on the bottom line of the various businesses of the company. 

AS PER WEBSITE

Business Description

Sical Logistics Limited Formerly known as South India Corporation (Agencies) Limited. The Group's principal activity is to operate in three segments: Logistics, Trading-Building Materials and other operations. Logistics segment provides port based logistics solutions for dry bulk cargo. Trading-Building Materials segment markets fire clay bricks, glass plant refractories, acid resistant refractories and import substitute basic bricks, stoneware pipes, cement, steel, electrical and other such materials. Other operations include auto components, refractories, flexible shafts, drums, civil construction, property development, ship repair, boat building, cytozyme, specialty chemicals, sugar, oil palm and plantation. The Group has sales offices in foreign countries.

Press Release

Sical targets one billion USD revenues by 2012

• Investments in infrastructure and projects under way
• Prepares to be the largest dynamic end-to-end logistics solution provider

Chennai, 28 March 2007: Sical Logistics Limited, the leading provider of integrated multi-modal logistics for bulk and containerized cargo has initiated activities to create a new dimension to its business enabling it to become a one billion dollar company by 2012.

Investment in infrastructure and people

The Company’s strengths in skilled people and market reach will be further boosted with the induction of more senior level personnel in the HO at Chennai and across the pan India network. 60 0fficials have joined since February 07 and more are expected to come on board by April’07.

The Company’s people network includes regional office heads in Delhi, Mumbai, Kolkata and Bangalore and business centre heads in Chennai, Tuticorin, Bangalore, Kolkata, Mumbai, Delhi, Ahemadabad, Pune and Hyderabad. The focus of the larger team will be on maximizing the value from the logistics-rupee for the customers in India.

Investment in all aspects of logistics

Sical and L&T have entered into a joint venture to set up an iron ore terminal at Ennore at a cost of over Rs. 3300 Millions. This is a scale down from the initial capacity of 12 million tones to about 6-d million tones with the option to scale up. Also a new venture has been formed with PSA India, to set up a second container terminal under the BOT model at a cost of Rs.3000 Millions with a capacity of 400,000 TEUs to start with.

As part of the regional expansion plans, Sical will increase presence across India from 11 locations to 38 locations with a related increase of its own trucking fleet to about 850 by the next year in addition to a contracted fleet of 4000 trucks.

Sical has obtained a category one license of Rs.500 Millions to operate container rails across India and is setting up ICDs at Tuticorin, Coimbatore, Bangalore, Chennai, Secunderabad Nagpur and Mumbai. Being the first company from South India to obtain this license at a national level, Sical is expecting to initiate its first phase of operations by 2008. The license allows Sical to operate container trains for a period of twenty years in which the first four rakes are to be bought or leased by Sical over the next 6 months. These are expected to increase up to 17 container trains a day by 2011.

Facilitating to consolidate the daily cargo movement across all locations in the country using Nagpur as the hub and spoke, Sical is developing a customized TMS (Truck Management System) that will have a GSM / CMDA based tracking system. Sical will also build a state of the art sorting centre facility at Nagpur. This will provide the transporters access to the top quality services without any huge investment but only on a pay by use basis with a delivery window of anywhere between 24hrs to 96hours in any part of the country. Sical is the first and only service provider the transport sector to offer this. The investment outlay for the above project is estimated at Rs.1120 Millions.

With these expansion plans Sical assures to provide quality service to the logistics industry and decreasing the time and cost over run to an immense margin.

About Sical Logistics Limited (Sical): Mr. Ashwin C. Muthiah is the Vice Chairman of Sical Logistics Limited. Sical is a leading integrated multi-modal logistics provider with services spanning inland logistics, container logistics and offshore logistics. The Company has operations in all the major ports in India, including Chennai, JNPT/Mumbai, Tuticorin, Visakhapatnam, Kandla, Haldia, Paradip, Goa etc. Sical also owns and manages the dedicated coal terminal at Ennore port as well as the Container Terminal [in a joint venture with the Port of Singapore Authority (PSA)] at Tuticorin port. Additionally, Sical has recently won concessions for the Ennore Iron Ore Terminal, Chennai Container Terminal (in joint venture with PSA), MIHAN rail and road terminals in Nagpur in partnership with MADC and Gupta Logistics. Sical was awarded a Container Train Licence across all routes in India.

For further information please contact:

Samantha Unnikrishnan
Ogilvy Public Relations Worldwide
Office: 91-44-44344326
Fax: 91-44-44344710
Email: samantha.unnikrishnan@ogilvy.com

Sical Logistics raises Rs. 1.1 billion equity from IDFC Private Equity and announces hiving off of non-core businesses

Chennai, March 13, 2007: Sical Logistics Limited (“SICAL”) announced today that IDFC Private Equity Fund II, a fund managed by IDFC Private Equity has offered to invest Rs.1.1 billion in equity shares of the logistics business of Sical, the leading integrated logistics player. Sical has presence across four verticals – inland logistics, port logistics, container logistics and offshore logistics. The Company can therefore offer integrated outsourced logistics services across the value chain to its customers. The Company has recently won concessions for the Ennore Iron Ore Terminal, Chennai Container Terminal in Joint Venture with Port of Singapore Authority (PSA), Mihan rail and road terminals in Nagpur and container train licence for Category I from the Ministry of Railways. Currently, a leader in bulk logistics, it plans to expand it’s logistics services across other high growth verticals like retail, foodgrains, cold chain and automobiles.

SICAL was incorporated as a private limited company on 6 May 1955 by the late Dr. M.A. Chidambaram and his son Dr. A.C. Muthiah. It became a public limited Company on 20 March 1981. SICAL commenced operations primarily as a trading company in various commodities. During the 1970’s and 1980’s the company moved into the logistics business, first as custom house agents, then as ship agents and then stevedoring. SICAL positioned itself as an integrated logistics service provider in the 1990’s by creating synergies between its port handling, trucking and warehousing businesses.

Hiving off non-core businesses

Sical has already articulated its intention to position itself as a pure play integrated logistics provider. The Company is taking the necessary steps to bring this to a logical conclusion and is now in the final stages of divesting its non core business including Palm Oil, Refractory, Auto, Drums, Agri-Bio Products, Specialty Chemicals and Flexible shafts. Buyers have been identified and relavent due diligence exercises are being carried out as a last stage. It is expected that a significant portion of the hive off exercise will be completed within FY 2007.

Mr. Ashwin Muthiah, Vice Chairman, said, “We have grown from a small trading company to the largest bulk cargo handling company in the last 50 years. Over the last decade, we have invested a lot of time, money and effort towards becoming an integrated logistics player. We have in the recent past won a lot of concessions which will help us become the largest third party logistics player in the country. We were therefore looking for an equity partner who understood our business well and had the capability to help us achieve our ambitious growth plan. We are pleased to have the largest infrastructure private equity investor in India as our partner in growth.”

Mr. Luis Miranda, President & CEO, IDFC Private Equity remarked, “We are extremely happy to partner with Sical, the leading bulk logistics company in the country. We are excited about the growth plans of the company and look forward to partnering with them in achieving their ambitions. The company has highly motivated professionals at the helm of affairs and has been expanding its management team to build a world class business. As the largest Private Equity Investor in Indian Ports, Airports and Roads, investments in leading logistics companies was our next logical step and we are glad to partner with a leading company in this sector. ”

SSKI Corporate Finance Private Limited was the sole advisor to Sical.

About Sical Logistics Limited (Sical): Sical was incorporated as a private limited company on 6 May 1955 by the late Dr. M.A. Chidambaram and his son Dr. A.C. Muthiah. Sical has presence across four verticals – inland logistics, port logistics, container logistics and offshore logistics. The Company can therefore offer integrated outsourced logistics services across the value chain to its customers. The company has in the recent past won a lot of concessions which will help it become the largest third party logistics player in the country.

About IDFC Private Equity (IDFC PE): IDFC PE is the leading private equity investor in infrastructure in India. It manages funds of Rs. 28,500 million (US$ 630 million). Other investments of IDFC PE include GMR Infrastructure (partially exited), Gujarat State Petronet (partially exited), Chalet Hotels, Hotel Leelaventures (exited), Delhi International Airport, L&T Infrastructure Developers, Manipal Health Systems, Gujarat Pipavav Port, Krishna Godavari Gas Network, Delhi Assam Roadways and Quipo.

For more details please contact

Sical Logistics Limited:

Mr. Karthik Menon,
Vice President – Finance & Strategy
91 44 22351014
km@sical.com

IDFC Private Equity :

Mr. Luis Miranda, President & CEO
91 22 22020748
luis@idfcpe.com

Ogilvy Public Relations Worldwide :

Ms Samantha Unnikrishnan
91 44 44344326
samantha.unnikrishnan@ogilvy.com

Adfactors Public Relations :

Mr. Hemant Batra
91 22 2281 3565, 98203 25109

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.40.90
UK Pound	1	Rs.81.29
Euro	1	Rs.55.47

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		66

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