MIRA INFORM REPORT

Report Date :

08.11.2007

IDENTIFICATION DETAILS

Name :	KRISHNA VINYLS LIMITED
Registered Office :	Gate No. 114 & 120, Betagaon, Mahagaon Road, Near Gaushala, Boisar (East), Taluka Palghar, District Thane - 401 501, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	11.11.1985
Com. Reg. No.:	38047
CIN No.: [Company Identification No.]	U24100MH1985PLC038047
TAN No.: [Tax Deduction & Collection Account No.]	MUMK10770E
PAN No.: [Permanent Account No.]	AAACK2369R
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	Manufacture, Produce, and Refine, Process, Formulate, Buy, Sell, Import, Export or otherwise deal in all types of Heavy and Light Chemicals, Chemicals Elements and Compounds.

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Ways and means position of the company is difficult. The company has incurred huge loss in 1999-2000. It is also gathered that some directors of the company are arrested by Government Departments for their illegal import and violation of foreign exchange regulations. The company's payments are slow and delayed. It can be ignored for any business dealings as future of the company and the group appears to be in dark.

LOCATIONS

Registered Office/Factory :	Gate No. 114 & 120, Betagaon, Mahagaon Road, Near Gaushala, Boisar (East), Taluka Palghar, District Thane - 401 501, Maharashtra, India.
Tel. No.:	91-2525-284951 / 271297 / 98 / 271881
Fax No.:	91-2525-284252 / 271882 / 271180
Telex:	011-85360 ROPE IN
E-Mail :	tax@responsiveindustries.com tax@responsivepolymers.com kfl@giasbm01.vsnl.net.in kvi@bom8.vsnl.net.in
Website :	http://www.krishnavinyls.com
Corporate Office :	Eucharistic Congress Building No. 1, 5 Convent Street, Colaba, Mumbai – 400 039, Maharashtra , India
Tel. No.:	91-22-22838216 /22885778/22831872 / 22850055
Fax No.:	9122-22885771/5773 / 22825472
Telex:	011-85360 ROPE IN
E-Mail :	kvl@bom8.vsnl.net.in kfl@giasbm01.vsnl.net.in kvi@bom8.vsnl.net.in
Website :	www.krishnavinyls.com

DIRECTORS

Name :	Mr. Krishna Kumar Satyanarayan Agarwal
Designation :	Director
Address :	Agarwal House, D Road, Churchgate Mumbai - 400 020, Maharashtra
Date of Birth/Age :	29.04.1963
Date of Appointment :	20.07.1988
Name :	Mr. M. S. Srinivasa Raghugulu
Designation :	Directors
Address :	13/9, Deejay Nagar, Boisar (West), Palghar, Thane – 421 202, Maharashtra
Date of Birth/Age :	10.06.1963
Date of Appointment :	19.04.2000
Name :	Mrs. Leena Gopal Thakkar
Designation :	Director
Address :	A- 8, Moti Mahal, station Road, Dombivali (West), Thane – 421 202 Maharashtra
Date of Birth/Age :	23.03.1977
Date of Appointment :	07.09.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Shares in Demat Form
Mr. Santosh Agarwal		281200
Mrs. Shantidevi Agarwal		291690
Mrs. Radhabhai Agarwal		281990
Mrs Jyoti Agarwal		237910
Mrs. Amita Agarwal		282910
UTI		1100000
Krishna Filaments Limited		747800
IDBI Limited		1100000
	Total	4323500
Shares in Physical Form
Mr. Ajit agarwal		148800
Krishna Filaments limited		162400
Shanti Capital Services Private limited		490500
Nishita Capitals Services Private limited		387000
Resposive Industries Limited		2100
ICICI Limited		300000
State Bank of Hyderabad		140000
Maharashtra State Finance Corporation		150000
Daewoo Corporation		1430000
S G Agarwal for S G Agarwal (HUF)		1548800
Earnest Export limited		642500
	Total	5402100

Equity share breakup (percentage of total equity):

Sr.No.	Category	Percentage
1	Public Financial Companies	15.94
2	Nationalized or other Banks	1.44
3	Mutual Funds	11.31
4	Foreign Holdings (Foreign Institutional Investor(S), Foreign Companie(S), Foreign Financial Institution(S), Non – Resident Indian(S) Or Overseas Corporate Bodies Or Others.	14.70
5	Bodies Corporate	25.01
6	Directors or relative of directors	30.07
7	Other top fifty (50) shareholders	1.53

BUSINESS DETAILS

Line of Business :

Manufacture, Produce, and Refine, Process, Formulate, Buy, Sell, Import, Export or otherwise deal in all types of Heavy and Light Chemicals, Chemicals Elements and Compounds.

Products :

Item Code No.	Product Description
39042102	PVC Products

PRODUCTION STATUS as on 31.03.2003:-

Particulars	Unit	Installed Capacity	Actual Production
PVC films, leather cloth, PVC rolls, PVC flooring	MT	33000 MT	15020 MT
Di-Octyl Pthylate	MT	4500 MT	886 MT

GENERAL INFORMATION

No. of Employees :

600

Bankers :

· State Bank of India, World Trade Centre, Mumbai – 400 005, Maharashtra

· Dena Bank, Maker Tower, Mumbai – 400 005, Maharashtra

· Karnataka Bank Limited, Maharshi Karve Road, Mumbai – 400 021, Maharashtra

· SIAM Commercial Bank Public Company Limited, 86, Maker Chambers VI, Mumbai – 400 021, Maharashtra

· Corporation Bank, Earnest House, Mumbai - 400 021

· The Hong Kong and the Shanghai Banking Corporation Limited

Address: Network Service Centre, Worli, Mumbai – 400 025

Facilities :

SECURED LOAN:

As on 31.12.2003	(Rupees in Millions)
Term Loans from Financial Institutions	63.771
Foreign Currency Loan from Financial Institutions	311.352
Working Capital Loan from Banks	437.221
Term Loan from Banks	25.879
Interest Accrued and Due	419.633

UNSECURED LOAN:

As on 31.12.2003	(Rupees in Millions)
From Banks and Institutions	35.429

Banking Relations :	----
Auditors :
Name :	· Haribhakti & Company Chartered Accountants Address: 42, Free Press House, 4^th Floor, 215, Nariman Point, Mumbai – 400 021 Tel No: 91-22-22871099 · Bhuta Shah and Company Chartered Accountants
Associates/Subsidiaries :	Ø Krishna Filaments Limited Ø Krishna Capital Services Limited Ø Krishna Organochem Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity shares	Rs. 10/- each	Rs. 100.000 millions
500000	Preference shares	Rs. 100/- each	Rs. 50.000 millions
		Total	Rs. 150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9725600	Equity shares	Rs. 10/- each	Rs. 97.256 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		97.256	97.256
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		533.134	533.134
4] (Accumulated Losses)		[2275.071]	[1983.241]
NETWORTH		[1644.681]	[1352.851]
LOAN FUNDS
1] Secured Loans		1868.651	1638.262
2] Unsecured Loans		35.429	35.429
TOTAL BORROWING		1904.080	1673.691
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		259.399	320.840
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		244.419	341.495
Capital work-in-progress		0.000	0.000
INVESTMENT		0.179	0.179
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	29.324
	Sundry Debtors	74.617	56.457
	Cash & Bank Balances	8.884	20.483
	Other Current Assets	0.163	0.714
	Loans & Advances	37.097	63.092
Total Current Assets		120.761	170.070
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	86.009	172.505
	Provisions	20.399	20.222
Total Current Liabilities		106.408	192.727
Net Current Assets		14.353	[22.657]
MISCELLANEOUS EXPENSES		0.448	1.823
TOTAL		259.399	320.840

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005
Sales Turnover		587.044	543.863
Other Income		34.467	32.013
Total Income		621.511	575.876
Profit/(Loss) Before Tax		[291.652]	[320.111]
Provision for Taxation		0.000	0.000
Profit/(Loss) After Tax		[291.652]	[320.111]
Expenditures :
	Increase/(Decrease) in Finished Goods	8.450	4.493
	Payment to Auditors	0.460	0.451
	Interest	227.742	203.964
	Depreciation & Amortization	100.261	102.198
	Other Expenditure	576.249	584.879
Total Expenditure		913.162	895.985

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	[0.04]	[55.58]
Net Profit Margin (PBT/Sales)	(%)	[49.68]	[58.85]
Return on Total Assets (PBT/Total Assets}	(%)	[79.86]	[62.57]
Return on Investment (ROI) (PBT/Networth)		0.17	0.23
Debt Equity Ratio (Total Liability/Networth)		1.22	1.37
Current Ratio (Current Asset/Current Liability)		1.13	0.88

LOCAL AGENCY FURTHER INFORMATION

Name of the company

KRISHNA VINYLS LIMITED

Presented By

KRISHNA VINYLS LIMITED

1) Date and description of instrument creating the change

1) Working capital Consortium Agreement

2) Joint Deed of hypothecation

Both dated 02.09.1999 creating a single charge

2) Amount secured by the charge/amount owing on the securities of charge

Particulars	Rs. in millions
State bank of India	168.500
Dena Bank	81.500
Karnataka Bank Limited	83.300
Siam Commercial Bank	86.400
Total	419.700

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

Whole of the current assets namely stocks of raw materials , stock in process, semi finished and finished goods, stores and spares not relating to Plant and machinery, (Consumable stores and spares), Bills receivable and Book debts and all other movables , both present and future whether now lying loose or in cases or which are lying or stored in or about or from time during continuance of the security be brought into or upon or be stored or be in or about the Company’s factories, premises and Godown or wherever else the same may be or be held by any party to the order or disposition of the company or in the course of transit or on high seas or on order or delivery, howsoever and whosesoever in possession of the company . And either by way of substitution or addition.

4) Gist of the terms and conditions and extent and operation of the charge.

· Interest – as determined by the bank from time to time

· Margin- as prescribed by the bank from time to time

5) Name and Address and description of the person entitled to the charge.

· State Bank of India

Address: Overseas Branch, World Trade Centre, Cuffe Parade, Mumbai – 400 005

· SIAM Commercial Bank Public Company Limited, 86, Maker Chambers VI, Mumbai – 400 021, Maharashtra

· Dena Bank

Address: Industrial Finance Branch, Maker Tower “E”, Cuffe Parade, Mumbai – 400 021

· Karnataka Bank Limited

Address: Overseas Branch, Maharishi Karve Road, Mumbai – 400 021

Name of the company

KRISHNA VINYLS LIMITED

Presented By

The Hong Kong and Shanghai Banking Corporation Limited

1) Date and description of instrument creating the change

Dated: 19.06.2000

Instrument Hypothecation of vehicles

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 0.316 million

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 brand vehicle namely Tata Sumo

4) Gist of the terms and conditions and extent and operation of the charge.

The borrower shall repay the said loan of Rs. 0.316 million by 35 equal monthly installments of Rs. 0.011 million each the first of such installments on the of 09.08.2000 and the subsequent payable on tie day of each succeeding monthly / quarterly loan is repaid in full.

The borrower shall at his own expenses keep the hypothecated article insured against all such as may be required by law and also against all such further and other risks as the Bank shall from time to time required for the full amount required by the bank

The borrower shall pay interest on the loan amount 14.75% p.a. every month / or by quarterly payments on the 31^st March, 31^st June, 30^th September and 31^st December in each year or at any other rate of interest as communicated by the bank from time to time.

5) Name and Address and description of the person entitled to the charge.

The Hong Kong and the Shanghai Banking Corporation Limited

Address: Network Service Centre, Worli, Mumbai – 400 025

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Factory Buildings

· Plant And Machinery

· Electrical Installation

· Office Equipments

· Furniture And Fixtures

· Other Equipments

· Computers And Software

· Vehicles

OTHER INFORMATION:

The company was incorporated on 11^th November, 1985 at Mumbai in Maharashtra under the name and style “Anita Chemical Industries Private Limited” and was changed into Krishna Daewoo Limited with effect from 10^th October, 1994. Again the company changed its name to Krishna Vinyls Limited with effect from 28^th April, 1995.

The company shifted its Registered Office from Eucharistic Congress Building No. II, 5, Convent Street, Colaba, Mumbai - 400 039 to Gate No. 114 and 120, Betegaon Village, Boisar (East), Taluka Palghar, District Thane, Maharashtra.

The company is engaged into manufacture, produce, refine, process, formulate, buy, sell, import, export or otherwise deal in all types of heavy and light chemicals, chemicals elements and compounds including without limiting the generality of the foregoing, laboratory and scientific chemicals of any nature used or capable of being used by the pharmaceutical industry, agricultural chemicals, fertilisers, petro chemicals, industrial chemicals or any mixtures or derivatives thereof.

WEBSITE DETAILS:

When it comes to truly International Class PVC Products, the name Krishna Vinyls Limited (KVL) is matchless in its category. KVL has revolutionized the Vinyl Industry with the use of advanced technology and a high level of quality control.

An annual production capacity of 30,000 metric tonnes makes KVL the largest producer of PVC products in the country and Backward Integration in raw materials ensures uniform and consistent quality products.

Committed to excellence and with a vision to be the leading producer of PVC products in the world, KVL is poised for a quantum leap into the next millennium.

Products:

Vinyl Floorings

Endura Unique and Endura Classic are flexible homogeneous vinyl floorings manufactured in accordance with international standards BSEN 649, ASTM, BS 476.

The Krishna Floor range excels in Spread of Flame test, Colour Fastness test, Thermal Conductivity, Chemical Resistance and all other tests specified by the governing standards.

Specially designed to resist electrostatic build up, ENDURASTAT is the ideal floor covering for areas like operation theatres, computer rooms, telephone exchanges, electronic manufacturing units and other electric sensitive areas. This range is available as Endura Anti Static, Endura Static Dispersive and Endura Conductive.

Endura Stud is heavy duty homogeneous flooring with anti skid properties.

EDC Elegant Designer Collection, printed flooring range in unique designs and color combinations.

Natural Collection high performance heavy duty flooring in Rock, Marble, granite and wood design.

Rigid PVC Film

High grade Rigid PVC Film used for packaging in various industries. Rigid PVC Film range contains Non toxic film for food and pharmaceutical industry, High Impact thermoforming grade, Stationary grade 

Flexible PVC Sheeting

This product finds uses in various applications that touch day to day life. Flexible PVC sheeting range contains Opaque Sheeting, Printed Film, Clear Transparent Film

Krishna Leather Cloth

Commonly referred to as artificial leather, is one of the largest selling KVL products. Leather Cloth is available as Sponge Leather, Un-foamed Leather and Coated Leather.

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 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.39.34
UK Pound	1	Rs.82.66
Euro	1	Rs.57.57

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	---
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	--
--CREDIT LINES	1~10	--
--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		22

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