MIRA INFORM REPORT

Report Date :

08.01.2008

IDENTIFICATION DETAILS

Name :	N C JOHN AND SONS PRIVATE LIMITED
Registered Office :	W 16/329, Vazicherry, Alleppey – 688001, Kerala
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	25.08.1943
Com. Reg. No.:	09 – 784
CIN No.: [Company Identification No.]	U17239KL1943PTC000784
TAN No.: [Tax Deduction & Collection Account No.]	TVDN00230G
PAN No.: [Permanent Account No.]	AABCN0264H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Coir Yarn, Coir goods, Rubber Mats, Jute Products, Handicrafts, Garments, Rubber Wood Mats.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1280320
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track records. Financial position is good. Trade relations are fair. Payment are correct and as per commitments. The company can be considered for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	W 16/329, Vazicherry, Alleppey – 688001, Kerala, India
Tel. No.:	91-477-2243796/98
Fax No.:	91-477-2242375
E-Mail :	ncj@vsnl.com
Website :	http://www.ncjohn.com
Factory :	Post Box No. 17, Alleppey – 688001, Kerala, India
Tel. No.:	91-477-2243796 / 98
Fax No.:	91-477-2243173 / 2242375

DIRECTORS

Name :	Mr. N. C. J. John
Designation :	Director
Address :	Neroth House, Jubilee Road, Alleppey – 688001, Kerala, India
Date of Birth/Age :	21.09.1938
Date of Appointment :	29.01.1994
Name :	Mr. N. C. J. Rajan
Designation :	Director
Address :	Neroth House, Jubilee Road, Alleppey – 688001
Date of Birth/Age :	16.05.1942
Qualification :	B. Sc
Date of Appointment :	29.01.1994
Name :	Mr. John C Neroth
Designation :	Director
Address :	Neroth House, Lejeneth Ward, Alleppey – 688001
Date of Birth/Age :	28.09.1945
Qualification :	B. E.
Date of Appointment :	29.01.1994
Name :	Mr. John Mathew N.
Designation :	Director
Address :	Neroth House, Jubilee Road, Alleppey – 688001
Date of Birth/Age :	01.06.1948
Qualification :	B. Com., B. Pharm.
Date of Appointment :	29.01.1994
Name :	Mr. Alex Joseph
Designation :	Director
Address :	Neroth House, Power House Ward, Alleppey – 688007
Date of Birth/Age :	05.08.1962
Qualification :	B. Com., LLB
Date of Appointment :	29.01.1994
Name :	Mr. N John Chacko
Designation :	Director
Address :	Neroth Gardens, Vattayal Ward, Appeppey – 688002
Date of Birth/Age :	02.05.1962
Qualification :	B. Sc., B.E., M. Ch. Engineer
Date of Appointment :	06.05.2005

KEY EXECUTIVES

Name :	Mr. S. P. Padmanabhan
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
C John Neroth	760
C Josey Neroth	760
C Rockey Neroth	760
C Jacob Neroth	760
N J Mathew	2780
N J Chacko	2016
Alex Joseph	505
Mariamma Joseph	804
N C J Jahn	837
John Neroth	1720
Sangeetha John	700
N C J Rajan	567
John Job Neroth	500
Francis Job Neroth	500
Alexander Job Neroth	500
Mathew Job Neroth	500
Total	14969
Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	1.60
Directors or relatives of directors	98.00
Other top fifty shareholders	0.40
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Coir Yarn, Coir goods, Rubber Mats, Jute Products, Handicrafts, Garments, Rubber Wood Mats.

Products :

Product	Item Code
Coir Mats and Mattings	570220.00
Coir Yarn	530810.00
Sisal Mattings	530890.00

PRODUCTION STATUS

Particulars	Unit	Installed Capacity
Coir Mats and Mattings	Sq.Mtrs	13,00,000
Coir Yarn	Tons	10,000
Rubber Mats	No. of pcs	3,00,000

GENERAL INFORMATION

No. of Employees :	400
Bankers :	Indian Overseas Bank, V. S. V. Building, C C N B Road, Alleppey – 688011, Kerala, India State Bank of Travancore, SSI Branch, Vazhicherry, Alleppey State Bank of India Main Branch, Alleppey
Facilities:	-

Banking Relations :	Good
Auditors :
Name :	Abdul Rahim and Company Chartered Accountant
Address :	New Bazar, Alleppey – 688001, Kerala, India
Associates/Subsidiaries :	· Eco Wood Limited · Neroth Oil Mills Company Private Limited · Neroth Plantations Private Limited · Neroth Estate · Ninans Private Limited · Cocotufters Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares	Rs.100/- Each	Rs.2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares	Rs.100/- Each	Rs.2.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		2.000	2.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		318.080	311.112
4] (Accumulated Losses)		0.000	0.000
NETWORTH		320.080	313.112
LOAN FUNDS
1] Secured Loans		69.058	74.026
2] Unsecured Loans		59.783	58.878
TOTAL BORROWING		128.841	132.904
DEFERRED TAX LIABILITIES		16.152	17.679
TOTAL		465.073	463.695
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		244.669	216.301
Capital work-in-progress		1.064	11.925
INVESTMENT		38.060	36.245
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	122.002	124.805
	Sundry Debtors	14.356	42.653
	Cash & Bank Balances	6.567	6.679
	Other Current Assets	0.000	0.000
	Loans & Advances	101.964	79.794
Total Current Assets		244.889	253.931
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	21.770	28.277
	Provisions	41.839	26.430
Total Current Liabilities		63.609	54.707
Net Current Assets		181.280	199.224
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		465.073	463.695

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2007
Sales Turnover	579.129
Other Income	0.000
Total Income	579.129
Profit/(Loss) Before Tax	25.280
Provision for Taxation	16.204
Profit/(Loss) After Tax	9.076
Export Value	N.A.
Import Value	N.A.
Total Expenditure	553.820

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006
PAT / Total Income	(%)	1.57	N.A.
Net Profit Margin (PBT/Sales)	(%)	4.36	N.A.
Return on Total Assets (PBT/Total Assets}	(%)	5.16	N.A.
Return on Investment (ROI) (PBT/Networth)		0.07	N.A.
Debt Equity Ratio (Total Liability/Networth)		0.60	0.60
Current Ratio (Current Asset/Current Liability)		3.85	4.64

LOCAL AGENCY FURTHER INFORMATION

BANKERS CHARGES REPORT AS PER REGISTRY

Name of the company	N C JOHN AND SONS PRIVATE LIMITED
Presented By	Mr. C Krishnamoorthy, Manager State Bank of Tarvancore, SSI Branch, Zazhicherry, Alleppey
1) Date and description of instrument creating the change	Memorandum of deposit of title deeds on 28.08.1999
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 3.000 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	Collateral security of company’s immovable properties namely, 26.10 cents [11410 sq. ft.] in Survey No. 454/1 [Part] in Tea Nagar, Mudalipalayam Village, Tirupur Taluk, Tirupur Joint I Sub Regn. District Coimbatore District together with all buildings existing and or to be constructed.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest at the rate of 2 % below S.B.T.P.L.R. subject to a minimum of 10 % p.a. effective interest rate 10 % p.a. Repayable on Demand
5) Name and Address and description of the person entitled to the charge.	State Bank of Tarvancore, SSI Branch, Zazhicherry, Alleppey
6) Date and brief description of instrument modifying the charge	Memorandum Evidencing Creation of Equitable Mortgage by constructive Deposit of Ttitle Deeds on 09.12.2004 Deed of Hypothecation dated 09.12.2004
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.	On 09.12.2004 the existing FDBP/FBEP limit of Rs. 5.000 Millions was enhanced by and additional limit of Rs. 2.500 Million making the total limit to Rs. 7.500 Millions The existing charge on the Collateral Security of Company’s Immovable Properties namely, 26.10 cents [11410 sq. ft.] in Survey No. 454/1 [Part] in Tea Nagar, Mudalipalayam Village, Tirupur Taluk, Tirupur Joint I Sub Regn. District Coimbatore District together with all buildings existing and or to be constructed were extended to the enhanced FDBP/FBEP limit of Rs. 7.500 Millions The existing charge on the whole of the movable assets of the company including movable plant and machinery, implements, fittings, spares parts, accessories tolls, stores, inventories, typewriters, motor vehicles, all type of transport equipments, office furniture including computers, stocks of raw materials finished and semi finished goods, other goods and uncalled capital from time to time acquired which now or hereinafter from time to time during the continuance of this agreement shall be brought into, stored in or about its premises, factories godowns, and elsewhere and wherever they are whether stationary or in transit, pertaining to the Garments Division of the company located at Tirupur were extended to the additional loan limit.

This form is for	Modification of charge
Charge identification number of the charge to be modified	90022189
Corporate identity number of the company	U17239KL1943PTC000784
Name of the company	N C JOHN AND SONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	W 16/329, Vazicherry, Alleppey – 688001, Kerala, India
Type of charge	Immovable Property
Particular of charge holder	Indian Overseas Bank, V. S. V. Building, C C N B Road, Alleppey – 688011, Kerala, India Pournami1234@gmail.com
Nature of description of the instrument creating or modifying the charge	Equitable Mortgage of Landed Properties
Date of instrument Creating the charge	29.05.2007
Amount secured by the charge	Rs. 1.000 Million
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : As per original agreement Terms of repayment : Repayable on demand Margin : As per original agreement Extent and operation of the charge : Equitable Mortgage of Landed Properties
Short particulars of the property charged	Equitable Mortgage of Landed Property of 12.14 ares in Sq. No. 386/13-3 of Komalapuram Village, Alappuzha as additional security for the limit of Rs. 1.000 Million availed by the company.
Particulars of the present modification	The existing limit of Rs. 1.000 Millions is secured by the additional security. 12.14 ares of land in sy. No. 386/13-3 of Komalapuram Village.

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Motor Car

· Motor Boat

· Transport Vehicles

· Furniture and Fitting

· Computer

AS PER WEBSITE

Subject is a premium name in the world of natural decors. They started the business in the year 1919 and registered as a corporate entity in the year 1943. Service, integrity, trust and hard work are the cornerstones in which they have been building up their business.

The growth of their organisation in leaps and bounds has always been steered by quality conscious team leaders. They have been awarded with several national awards continuously from the year 1991.

They are recognized as trading house by the Government of India and are on a fast expansion track. They export their product to over 30 countries across continents, prominent amount them being USA, UK and Germany. Their turn over has doubled in the last 5 years.

Their modern chemical effluent plants and pollution control units ensure that their motto of in harmony with nature is maintained in all their activities.

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.39.28
UK Pound	1	Rs.77.33
Euro	1	Rs.57.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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		72

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.	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