MIRA INFORM REPORT

Report Date :

22.04.2008

IDENTIFICATION DETAILS

Name :	KIRI DYES AND CHEMICALS LIMITED
Registered Office :	53, Manek Baug Society, Ambawadi, Ahmedabad – 380 015, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	14.05.1998
Com. Reg. No.:	04-34094
CIN No.: [Company Identification No.]	U24231GJ1998PLC034094
TAN No.: [Tax Deduction & Collection Account No.]	AHMK01019E
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges
Line of Business :	Manufacturer and Exporter of Synthetic Organic Dyestuffs and Intermediates

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1360000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Directors are reported as experienced, respectable and having resourceful businessmen. Their trade relations are fair. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	7^th Floor, Hasubhai Chambers, Opposite Town Hall, Ashram Road, Ellisbridge, Ahmedabad 380006, Gujarat, India
Tel. No.:	91-79-26574371 /72 /73
Fax No.:	91-79-26574373-74
E-Mail :	export@kiridyes.com ipo@kiridyes.com
Website:	www.kiridyes.com
Location :	Owned
Factory 1 :	Plot No. 299/1/A, 299/1/B and 10/8, Near Water Tank, Phase II, GIDC Estate, Vatva, Ahmedabad – 382 445, Gujarat, India
Tel. No.:	91-79-25894477/ 25835297
Fax No.:	91-79-25834960/ 26769529
E-Mail :	exports@kiridyes.com
Location :	Owned
Factory 2 :	10/8, Valu Via-Vinzol, District – Descroi, Ahmedabad, Gujarat, India
Area :	2539 sq. ft
Location :	Owned
Factory 3 :	Plot No. 396/399, 403/404 – A, Village , Karakhadi, Vadodara, Gujarat, India
Factory 4:	53, Manek Baug Society, Ambawadi, Ahmedabad – 380 015, Gujarat
Tel. No.:	91-79-25894477 / 25835297 / 26730802
Fax No.:	91-79-25834960 / 26769529
Area :	1000 sq. ft
Location :	Owned

DIRECTORS

Name :	Mr. Pravinbhai Amritlal Kiri
Designation :	Whole Time Director
Address :	53, Manek Baug Society, Ambawadi, Ahmedabad-380 006, Gujarat
Date of Birth/Age :	01.11.1945
Date of Appointment :	14.05.1998
Name :	Mr. Manishbhai Pravinbhai Kiri
Designation :	Whole Time Director
Address :	53, Manek Baug Society, Ambawadi, Ahmedabad-380 006, Gujarat
Date of Birth/Age :	26.12.1972
Date of Appointment :	14.05.1998
Name :	Mrs. Arunaben Pravinbhai Kiri
Designation :	Whole Time Director
Address :	53, Manek Baug Society, Ambawadi, Ahmedabad-380 006, Gujarat
Date of Birth/Age :	29.10.1942
Date of Appointment :	14.05.1998
Name :	Mr. Bipinchandra R. Patel
Designation :	Director
Address :	44, Mithila Society, Ambavadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	01.03.1945
Date of Appointment :	01.09.2006
PAN No. :	00407106
Other Directorship :	Ami Pigments Private Limited – Director CIN No. : U36998GJ1997PTC032218
Name :	Mr. Yamal A. Vyas
Designation :	Director
Name :	Mr. Keyoor M. bakshi
Designation :	Director

KEY EXECUTIVES

Name :	Mr. R. S. Shah
Designation :	Company Secretary
Address :	B-3, Deepkunj Flats, Near Purnanand Ashram, Navjivan Post, Ahmedabad – 380014
Name :	Mr. Suresh Gondalia
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Pravinbhai Amritlal Kiri	849900
Mrs. Arunaben Pravinbahi Kiri	150100
Mr. Manish Pravinbhai Kiri	50000
Pravinbhai Amritlal Kiri (HUF)	100000

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Synthetic Organic Dyestuff and Intermediates
Products with ITC Code :	¯ Synthetic Organic Dyestuff – 320429 ¯ Dyes ¯ Chemicals ¯ Intermediates
Imports :
Countries :	Europe, U.S.A. and Germany
Terms :
Purchasing :	L/C

GENERAL INFORMATION

No. of Employees :	40
Bankers :	· State Bank of India, Vatva Industrial Estate Branch, Ahmedabad – 382 445,Gujarat · State Bank of India, Mumbai · Bank of India · Oriental Bank of Commerce · Bank of Baroda, Rakhial, Gujarat · Bank of Baroda Kaligram · Bank of Baroda Ahmedabad, Gujarat · Bank of Baroda, Mumbai · State Bank of Saurashtra, Ahmedabad, Gujarat · State Bank of Saurashtra, Mumbai

Banking Relations :	Satisfactory
Auditors :
Name :	Vimal D Shukla and Company Chartered Accountants
Address :	22, Akruti Society, Satellite Road, Ahmedabad – 380 015, Gujarat, India
Tel. No.:	91-79-26445335
Associates :	BSB Dyechem Private Limited

CAPITAL STRUCTURE

As on 10.07.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs. 200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13162500	Equity Shares	Rs. 10/- each	Rs. 131.625 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		100.000	95.250	11.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		240.400	156.176	168.424
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		340.400	251.426	179.924
LOAN FUNDS
1] Secured Loans		592.700	359.345	192.720
2] Unsecured Loans		4.000	0.000	3.736
TOTAL BORROWING		596.700	359.345	196.456
DEFERRED TAX LIABILITIES		0.000	6.800	5.800
TOTAL		937.100	617.571	382.180
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		368.500	177.909	87.015
Capital work-in-progress		1.100	6.655	0.000
INVESTMENT		0.000	2.196	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	291.700	192.050	182.152
	Sundry Debtors	324.200	274.505	193.534
	Cash & Bank Balances	16.800	19.462	27.690
	Other Current Assets	0.000	11.918	37.664
	Loans & Advances	84.000	31.308	7.609
Total Current Assets		716.700	529.243	448.649
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	141.500	93.577	149.765
	Provisions	9.000	5.108	3.750
Total Current Liabilities		150.500	98.685	153.515
Net Current Assets		566.200	430.558	295.134
MISCELLANEOUS EXPENSES		1.300	0.253	0.031
TOTAL		937.100	617.571	382.180

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Sales Turnover	1334.200	911.700	684.900
Other Income	6.000	14.100	41.700
Total Income	1340.200	925.800	726.600
Profit/(Loss) Before Tax	92.000	49.800	34.200
Provision for Taxation	5.700	3.800	2.600
Profit/(Loss) After Tax	86.300	46.000	31.600
Earnings in Foreign Currency :	NA	NA	454.297
Total Imports	NA	NA	82.651
Expenditures:
Raw Materials	1004.100	733.100	522.100
Excise Duty	0.000	0.000	16.600
Power & Fuel Cost	86.300	36.800	34.300
Other Manufacturing Expenses	82.800	75.700	76.400
Employee Cost	9.600	5.400	4.900
Selling and Administration Expenses	60.100	36.800	41.800
Miscellaneous Expenses	1.000	1.200	0.500
Interest & Financial Charges	51.500	23.400	23.300
Depreciation	12.700	5.600	4.400
Stock Adjustments	[59.900]	[42..000]	[31.900]
Total Expenditure	1248.200	876.000	692.400

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	1.62	1.29	1.09
Long Term Debt-Equity Ratio	0.36	0.17	0.07
Current Ratio	1.25	1.31	1.31
Fixed Assets	4.37	5.96	6.70
Inventory	5.52	4.87	3.76
Debtors	4.46	3.90	3.54
Interest Cover Ratio	2.79	3.13	2.47
Operating Profit Margin (%)	11.71	8.64	9.04
Profit Before Interest And Tax Margin (%)	10.76	8.03	8.40
Cash Profit Margin (%)	7.42	5.66	5.26
Adjusted Net Profit Margin (%)	6.47	5.05	4.61
Return On Capital Employed (%)	18.56	14.84	15.28
Return On Net Worth (%)	29.16	21.33	17.57

LOCAL AGENCY FURTHER INFORMATION

History :

Subject’s Registered Office was shifted from 7^th Floor, Hasubhai Chambers, Townhall, Ellisbridge, Ahmedabad – 380006, Gujarat to the present address w.e.f. 01^st February, 2007.

Fixed Assets

Ø Land

Ø Building

Ø Plant and Machinery

Ø Electric Installation

Ø Furniture

Ø Laboratory Equipment

Ø Aquaguard

Ø Car

Ø Computer

Ø Fan

Ø Fax Machines

Ø Scooter

Ø Telephone Line

Ø Air Condition

Ø ETP

Ø Electronic Typewriter

Ø Pump, Pipes and Pipe Fitting

Ø Vessel

Ø Hundai Car

Ø Fire Equipments

Ø Mineral Water Plant

Ø Packing Machine

Ø Spectrometer

Ø Xerox Machines

Ø Toyota Car

Ø Water cooler

Ø Tata Indica

Ø Freeze

REVIEW OF BUSINESS OPERATIONS: 

Due to the Strenuous and sustained efforts of the Directors and the employees, the Company continues to grow at a rapid pace. The Company has recorded an all round encouraging performance during the year under review, with an impressive rise of 45% in its turnover as compared to the previous year from Rs. 925.901 Millions to 1340.214 Millions. The company is emerging as a global player with the ability to handle large customers. The Company has been able to establish Long lasting business relationships with its key customers - both Domestic and International. Due to excellent track record that the company has, in the international market, the export sales registered a significant rise of 73% as compared to that in the previous year from Rs. 512.043 Millions to Rs. 885.512 Millions. 

The Company has recorded a substantial increase of about 98% in Profit before Interest, Depreciation and Tax (PBIDT) as compared to that of previous year from Rs. 78.880 Millions to Rs.156.120 Millions. There is a significant and noteworthy increase in Profit After Tax (PAT) of 113% from Rs. 39.502 Millions in previous year to Rs. 84.220 Millions during the year under review. 

The Company has successfully implemented its first phase of backward integration project of manufacturing Vinyl Sulphone, the key raw material for manufacturing of dyes. During the year under review, the project for manufacturing H-Acid, another basic raw material went on stream, in the Later part of the year. Thus the company has implemented its second phase of Backward Integration Project successfully. This will give the company a sizeable advantage in reduction of cost of production and assured timely supply of required quality of Raw Materials. This will go to improve the profitability of the Company and will give an edge over other competitors. 

FUTURE PROSPECTS: 

The Company proposes to set up another backward integration plant for manufacturing of Sulphuric Acid and its sub products viz. Oleum and Chloro Sulphonic Acid with a combined capacity of 500 MT/day at a place adjacent to its existing unit at Village Dudhwada, Taluka Padra, District Vadodara.

The Company has purchased the Land for the said plant. This way company strives to reduce the operational costs so as to sell its products in domestic and international markets at competitive prices. The Company also plans to increase its research and development efforts to develop manufacturing process for a wider range of dyes and other products, by vertically integrating its production processes, to meet its customers' specific requirements. This will serve as an effective cost control measure. The Company proposes to fund the said expansion through Initial Public Offer of 50,00,000 equity shares through 100% Book Building process. 

CHANGE OF NAME CONSEQUENT TO CONVERSION OF THE COMPANY: 

During the year Name of the Company has been changed from Kiri Dyes and Chemicals Private Limited to Kiri Dyes and Chemicals Limited, consequent to the conversion in to Limited company. 

INDUSTRY STRUCTURE AND DEVELOPMENT: 

The Company is a manufacturer and exporter of reactive dyes and dyes intermediates, which are synthetic organic dyes used exclusively for cotton fabrics Like garments, dress materials, bed-sheets, carpets etc. The dyes are of basically colours like black, blue, red, orange, yellow and numerous variants of these basic colours identified by color-index number internationally. 

The product range of the company comprises of more than 120 dyestuffs used by textiles, leather, Paper industries with total production capacity of 10800 MT per annum. The Company supplies reactive, acid, and direct dyes as well as dye-intermediates in various forms like standardized spray dried / tray dried - powder / granular, crude and reverse osmosis. The Company operations cater to the Industrial customer's needs at every stage of business. 

The Company has started manufacturing of dyes intermediates, Like Vinyl Sulphone from April 2006 and H-Acid from March 2007. It has also started manufacturing other dyes intermediates Like Acetanlide, Sulpho Tobias Acid, Meta Uredo Aniline, MPDSA, Acetyl MPDSA, Acetyl and Acid. 

COMPANY PERFORMANCE:

The booming Indian economy has had a favourable impact on the business of the Company for the year 2006-07. The growth in economy as well as manufacturing sector has thrown up substantial opportunities in the Company's core sectors of operation such as Manufacturing Dyes and Intermediates, which has helped the company perform well during the financial year 2006-2007. 

(1) Opportunities: 

The Company is one of the leading/fast growing players in the Manufacturing and exports of Dyes and Intermediate Business in India, in terms of revenue and profits. The Company is engaged in the business of Manufacturing and exports of synthetic reactive dyes and Intermediates. The Company also got expertise in domestic and international trading of its products. The Company exports its quality products acceptable in international market to these customers directly. It provides all the technical services of its products as well as all application information to improve customization of its products. The Company is selling its products with its brand name in the Middle East and other Asian countries Like Turkey, Egypt, Bangladesh, and Pakistan. 

An export in India enjoys priority sector status accorded to it by Government since long to achieve a favorable balance of trade essential for a sound economy. The government has freed the import and export of most controls like removal of all import curbs or quantitative Restrictions (QRs), save a few sensitive items reserved for exports / imports through state trading enterprises, falling in import duties-all these have triggered a spurt in the export / import demand as well as the Local consumption. 

(2) Threats: 

* Frequent and unexpected changes in the EXIM policies. 

 * Entry of new competitors in the same line of activities. 

 * Global shortage of Raw materials/products dealt in by the company. 

 * Exchange rate fluctuation. 

 * Their Exports business is subject to economic, political and other risks associated with the counties in which their clientele are based. 

 * Any disruption in the logistics chain may affect their business performance. 

 * Counter party risks that include contractual and credit risk. 

 * Changes in tax regimes in India and Globally. 

Form 8 Particular for creation or modification of charges

Corporation identity number or foreign company registrations number of the company	U24231GJ1998PTC034094
Name of the company	KIRI DYES AND CHEMICALS PRIVATE LIMITED
Address	53, Manek Baug Society, Ambawadi, Ahmedabad – 380 015, Gujarat
This Form is for	Modification of charge
Type of Charges	Immovable Property
Particular of the charge holder	State Bank of India Vatva Industrial Estate Branch, Vatva, Ahmedabad – 382445, Gujarat, India
Nature or description of the instrument creating charge	Memorandum for recording extension of mortgage by deposit of title deeds covering enhanced limits
Date of the instrument creating charge	10.10.2006
Amount Secure by the charge	Rs. 523.300 millions
Brief of the principal terms and conditions and extent and operation of the charge	As prescribed by banks from time to time Term Loan : 6 monthly installment of Rs. 0.833 million to commence from November 2006 C. C. repayable on demand Raw material 25%, SIP 30%, Finished Goods 25%, Book Debts 40% Pari Passu charge in favour of participating banks Total credit limits of consortium banks Rs. 523.300 millions as follows : State Bank of India – 338.300 millions, Bank of India : Rs. 110.000 millions and Oriental Bank of Commerce : Rs. 75.000 millions
Modification charge Charge identification number of the charge to be modified	80014322
Particulars of the Present Modification	The SBI has enhanced credit facilities for further sum of Rs. 50.400 millions, making total consortium advance facilities to the extent of Rs. 523.300 millions
Short particulars of the property charged	All piece of leasehold land at 1. Plot No. 299/1/A, R. S. No. 416 [Paiki] & 410 [Paiki], ADM 3767 sq. mts. [2] Plot No. 299/1/B, R. S. No. 416 [Paiki], ADM 2050 sq. mts. [3] Plot No. 10/8, R. S. No. 416 [Paiki], ADM 2539 sq. mts. at Vatva Ind. Estate, Vinzol, Tal. Dascroi, Sub. Dist. Ahmedabad – 5 [Narol], Dist. Ahmedabad, and [4] Plot ADM. 45773 sq. mts. At block no. 396, 399, 400-a, 400-B, 401, 402, 403 and 404 of Vil. Dufhwada, Tal. Padra, Dist. Baroda

Name of the company

KIRI DYES & CHEMICALS PRIVATE LIMITED

Presented By

Shri Pravinbhai Kiri

1) Date and description of instrument creating the change

Memorandum of entry dated 19.03.2001

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

Rs. 121.500 millions

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

All the immovable properties of the cum including land, building etc. situated Plot No. 299/1/A, in the Vatva Industries Area / Estate consisting of revenue No . 416 (Paiki) and 410 (Paiki) within village limit of Vonzol of Dascroi Tax in the sub district of Ahmedabad – 5(Nari Containing by admeasurements 3767 sq. mtr. Thereabouts toetherwith all or superstructure standing thereon)

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

Following facilities will be covered.

	Rs in millions
Export packing Credit	27.000
Foreign Bills Discounting Purchase	48.000
Term Loan - I	10.000
Letter of Credit	30.000
Bank Guarantee	2.500
Term Loan - II	4.000
	121.500

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

State Bank of India

Vatva industrial Estate,

Branch Ahmedabad

6) Date and brief description of instrument modifying the charge

Memorandum of entry dated 26.02.2004

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.

The original charge by way of equitable mortgage of the properties described in Point No. 3 above is further extended to secure enhanced various credit limits of Rs. 123.517 millions making total charge of Rs. 35.900 millions. The company has also offered by way of equitable mortgage and has created security by the memorandum of entry dated 26.02.2004 on the property described in 7^th schedule to secure the original and additional credit limits aggregating to Rs. 35.900 millions in addition to the property described in memorandum of entry dated 06.09.2002. the brief description of the properties is as follows :

All the piece of leasehold land as Plot No. 10/8, Vatva Ind. Area, R S No. 418/p, Vil. Vinzol, Ta. Dascroi, Dist. Ahmedabad adm. 2539 sq. mtrs. together with any superstructures thereon more particularly described in the 7^th schedule.

Name of the company

KIRI DYES & CHEMICALS PRIVATE LIMITED

Presented By

State Bank of India, Vatva

1) Date and description of instrument creating the change

General agreement for the grant of small Industrial Advance and Hypothecation of Movables Book- debts and other assets dated 20^th May, 2000

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

Rs. 4.000 millions

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

Present and future goods, book debts, movable and other assets including documents of title to goods and other assets.

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

Rate of Interest @ 3 % p.a. above State Bank of India, rate subject to minimum of rate of

15 %

Repayment :

In quarterly installments of Rs. 25.000 millions each. First installment to be paid at the end of one year from the date of June 2000

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

State Bank of India

Vatva industrial Estate,

Branch Ahmedabad

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

Website Details Attached:

Profile:

Kiri Dyes and Chemicals Private Limited is one of the foremost manufacturers and suppliers of high quality dyes and intermediates in the dyestuff industry. Through innovation, dedication to total quality and consumer satisfaction, as well as commitment to research and development, they have succeeded in meeting the needs of a broad range of customers worldwide.

KDC production facilities are strategically located in the heart of chemical industrial zone, which provides comparative ease and convenience to effectively utilize the Common Effluent Treatment Plant to further treat outlets. Centralized administration is established in highly commercial area of the city, Ahmedabad.

History - Strength in the foundation

Based on more than 30 years of experience in exporting dyes and intermediates to more than 30 countries all over the world (Taiwan, Japan, Korea, Germany, U. K., U. S. A., Australia..... to name a few). Pravin Kiri, a successful and accomplished businessman, President of Kiri Dyes and Chemicals Private Limited, set up independent dyes manufacturing unit in Ahmedabad, India. His exploration and development of many innovative concepts, products and technologies in the field of dye manufacturing is the heart of the strength of Kiri Dyes and Chemicals Private Limited.

Business Philosophy and Beliefs

Strongly believe in developing partnership with affiliated organizations and customers.

Strongly believe in long term relations and business tie-up.

Strongly believe in mutual growth and support for bright prospects of KDC customers and KDC itself.

Committed to the best business practices with affiliated concerns.

Products:

Total KDC Production Land : 8000 square yards.

Total buildup Area: 3500 square yards.

Total Manufacturing Capacity : 2700 MT/Year.

Reactive Dyes : 75% of the total capacity.

Acid & Direct Dyes : 25% of the total capacity.

Cost Effective and Large-Scale manufacturing.

Products - exceeds customer expectations

KDC has one of the most extensive product line in the world of dyes and intermediates. KDC product range comprises of more than 120 dyestuffs for textiles, leather, paint and printing-ink industries with total production capacity of more than 2700 MT per annum. KDC supplies Reactive, Acid, and Direct Dyes as well as Dye-Intermediates in various forms like Standardized Spray Dried / Tray Dried - Powder / Granular, Crude and Reserve Osmosis. KDC products are attractive to many clients since they customize solutions to the customers needs. Their operations caster to the customer's needs at every stage of business.

Environment:

Safety and the Environment - Highest Priority

Nothing is more important than the safety of our people and out communities. They integrate environmental considerations into their business decisions, and they design or modify their products and processes to minimize their environmental, health and safety impact. Demonstrating their management as well as individual level of commitment to safeguarding the environment. Kiri Dyes and Chemicals Private Limited maintains the highest level of compliance with all applicable environmental regulations, especially Gujarat Pollution Control Board where their plants are located. KDC has one of the advanced and effective effluent treatment plant to ensure required outlet norms. High marks and appreciation for our zero - discharge products by representatives, government agencies and environmental groups are evidences of their leadership for pure and healthy environment. Thus it is justified that development and environment can go together.

At KDC, quality control encompasses raw material sourcing, production processing, final product analysis and documentation order processing and delivery. This commitment to quality control enforces their company to provide consistent products to meet their exact specifications.

Throughout the production process, the utmost care is taken to ensure rigorous standardized tests and adhere to strict specifications. KDC's quality control policy guarantees that customers are supplied only with products that meet the highest quality standards. KDC products have been successfully recognized standards. KDC products have been successfully recognized nationally as well as internationally - KDC quality speaks for itself.

This internationally recognized and popular products of KDC are Kiri Direct(Kirect) Turquoise Blues, Kiractive Hot, Cold, High Exhaustive and Bifunctional Reactive Dyes, Kiri Acid Blacks, Kiri pigments and intermediates for reactive dyes.

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. 39.89
UK Pound	1	Rs. 79.65
Euro	1	Rs. 63.06

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

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