MIRA INFORM REPORT

Report Date :

14.01.2008

IDENTIFICATION DETAILS

Name :	FIL INDUSTRIES LIMITED
Formerly Known As :	FUNGICIDES (INDIA) LIMITED
Registered Office :	7/1Kohinoor House, Sheikh Bagh, Srinagar – 190001, Jammu and Kashmir
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	29.08.1989
Com. Reg. No.:	001136
CIN No.: [Company Identification No.]	U24231JK1989PLC001136
TAN No.: [Tax Deduction & Collection Account No.]	AMRF10062D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers of Pesticides, Herbicides, Fungicides and Insecticides in form of Powder, Liquid and Granular.

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 3229116
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Trade relations are fair. Financial position is good. Payments are correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	7/1, Kohinoor House, Sheikh Bagh, Srinagar, Jammu and Kashmir, India
Tel. No.:	91-194-2474543 / 2455161
Fax No.:	91-194-2452462
E-Mail :	filsgt@nde.vsnl.net.in admin@filindustrieslimited.com
Website :	http://www.filindustries.com
Factory :	H – 88, The South Mall, South Extension I, New Delhi – 110049, India
Tel. No.:	91-11-24620505 / 070 / 0808 / 24626551 / 24601411
Fax No.:	91-11-24633874
E-Mail :	fildelhi@del2.vsnl.net.in

DIRECTORS

Name :	Mr. Iqbal Mohd. Syed
Designation :	Chairman
Address :	7, Sheikh Bagh, Srinagar, Jammu and Kashmir, India
Date of Birth/Age :	14.07.1932
Name :	Mr. Altaf Mohd. Syed
Designation :	Managing Director
Address :	7, Sheikh Bagh, Srinagar, Jammu and Kashmir, India
Date of Birth/Age :	24.02.1959
Date of Appointment :	29.09.2004
Date of Ceasing:	28.09.2007
Name :	Mr. Tariq Mohd. Syed
Designation :	Director
Address :	7, Sheikh Bagh, Srinagar, Jammu and Kashmir, India
Date of Birth/Age :	07.07.1970
Date of Appointment :	27.09.2003
Date of Ceasing :	26.09.2006
Name :	Ms. Hafeeza Begum
Designation :	Director
Address :	7, Sheikh Bagh, Srinagar, Jammu and Kashmir, India
Date of Birth/Age :	21.09.1944
Date of Appointment :	27.09.2005
Date of Ceasing :	26.09.2008
Name :	Ms. Tabassum Altaf
Designation :	Director
Address :	7, Sheikh Bagh, Srinagar, Jammu and Kashmir, India
Date of Birth/Age :	18.01.1962
Date of Appointment :	27.09.2005
Date of Ceasing :	26.09.2008
Name :	Ms. Ruhi Tariq
Designation :	Director
Address :	7, Sheikh Bagh, Srinagar, Jammu and Kashmir, India
Date of Birth/Age :	10.01.1970
Date of Appointment :	27.09.2003
Date of Ceasing :	26.09.2006
Name :	Mr. Sanjay Gupta
Designation :	Additional Director
Address :	4276, Sector 23/A, Gurgaon – 122001, Haryana, India
Date of Birth/Age :	18.11.1969
Date of Appointment :	03.04.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Iqbal Mohd. Syed	6500
Mr. Altaf Mohd. Syed	13700
Mr. Tariq Mohd. Syed	3194
Ms. Hafeeza Begum	3000
Ms. Tabassum Altaf	300
Mr. Junaid Altaf	200
Mr. Q. Syed	200
PFB Project Engineering	8906
Total	36000
Category	Percentage
Foreign Holdings (FIIs/ FCs/ FFIs/ NRIs/ or OCB or Others	12.60
Directors or Relatives of directors	87.40
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Pesticides, Herbicides, Fungicides and Insecticides in form of Powder, Liquid and Granular.

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
WDP Plant	MT	1375	744
Liquid Plant	KL	1920	322
Granual Plant	MT	1533	1343
Food Processing Plant	MT	4800	1427
Meat Processing	-	-	-
Tetra Packaging Plant	KL	3024	1167

GENERAL INFORMATION

Bankers :

· UCO Bank, R. N. Bazar, Jammu

· UCO Bank, Parliament Street, New Delhi

· UCO Bank, Srinagar

· UCO Bank, Sopore

· The Jammu and Kashmir Bank

Facilities :

	As on 31.03.2005 (Rupees in Millions)
SECURED LOANS :
Term Loans :
UCO Bank	56.547
The J and K Bank	103.891
Soft Loan	3.130
The Jammu and Kashmir Bank [TL – 50]	16.105
The Jammu and Kashmir Bank [TL – 49]	31.500
UCO Bank [TL – 9971]	24.837
Working Capital Loans from Banks :
Working Capital Demand Loans
UCO Bank, R. N. Bazar, Jammu	3.200
UCO Bank, Parliament Street, New Delhi	34.400
UCO Bank, Srinagar	65.406
UCO Bank, Sopore	5.600
Cash Credit
UCO Bank, R. N. Bazar, Jammu	0.768
UCO Bank, Srinagar	36.386
UCO Bank, Sopore	1.570
UCO Bank, Parliament Street, New Delhi	10.049
The Jammu & Kashmir Bank [CC 3745]	32.510
The Jammu & Kashmir Bank [CC 3741]	14.856
Pre & Post Shipment Credit
UCO Bank [Foreign Bills Purchase]	48.999
UCO Bank [Packing Credit]	35.784
Vehicle Loans :
ABN Amro Bank	4.092
Ge Capital Transfers Limited	0.164
Ge Countrywide Consumer Finance Ser	0.060
HDFC Bank Limited	5.176
ICICI Bank	1.065
Citi Bank N. A. [DL3C – W3726]	0.238
Total	536.345
UNSECURED LOANS :
R. K. Datta	0.500
Himachal Futuristic communications limited	17.000
Total	17.500

Banking Relations :	Satisfactory
Auditors :
Name :	K. S. Aggarwal and Company Chartered Accountants,
Address :	165, Sukhdev Vihar, New Delhi – 110025, India
Tel. No.:	91-11-26319826

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
80000	Equity Shares	Rs.1000/- each	Rs.80.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
31000	Equity Shares	Rs.1000/- each	Rs.31.000 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		31.000	31.000	66.130
2] Share Application Money		35.130	35.130	0.000
3] Reserves & Surplus		741.149	661.682	579.299
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		807.279	727.812	645.429
LOAN FUNDS
1] Secured Loans		637.464	554.717	536.345
2] Unsecured Loans		17.500	20.400	17.500
TOTAL BORROWING		654.964	575.117	553.845
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1462.243	1302.929	1199.274
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		525.188	537.283	528.486
Capital work-in-progress		34.642	36.330	22.777
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.0000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	439.773	262.521	139.746
	Sundry Debtors	593.460	651.081	565.899
	Cash & Bank Balances	71.814	42.943	31.142
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	82.652	67.998	51.524
Total Current Assets		1187.699	1024.543	788.311
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	261.271	286.658	140.324
	Provisions	24.032	8.589	0.000
Total Current Liabilities		285.303	295.247	140.324
Net Current Assets		902.396	729.296	647.987
MISCELLANEOUS EXPENSES		0.017	0.020	0.024
TOTAL		1462.243	1302.927	1199.274

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		1624.457	1357.463	1003.772
Other Income		5.958	27.133	0.000
Total Income		1630.415	1384.596	1003.772
Profit/(Loss) Before Tax		97.767	89.756	77.423
Provision for Taxation		15.443	7.505	3.050
Profit/(Loss) After Tax		82.324	82.251	74.373
Export Value		57.382	N.A.	73.220
Import Value		N.A.	N.A.	73.290
Expenditures :
	Raw Material Consumed	289.464	348.189	0.000
	Purchases made for re-sale	588.176	682.638	0.000
	Consumption of stores and spares parts	2.302	0.665	0.000
	Increase/(Decrease) in Finished Goods	(163.358)	(89.474)	0.000
	Salaries, Wages, Bonus, etc.	52.753	43.745	0.000
	Payment to Auditors	0.020	0.020	0.000
	Interest	71.216	62.058	0.000
	Insurance Expenses	1.206	1.015	0.000
	Power & Fuel	13.594	16.198	0.000
	Depreciation & Amortization	34.389	32.317	26.308
	Other Expenditure	642.886	197.469	900.041
Total Expenditure		1532.648	1294.840	926.349

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	5.05	5.94	7.41
Net Profit Margin (PBT/Sales)	(%)	6.02	6.61	7.71
Return on Total Assets (PBT/Total Assets}	(%)	5.71	5.75	5.87
Return on Investment (ROI) (PBT/Networth)		0.12	0.12	0.11
Debt Equity Ratio (Total Liability/Networth)		1.16	1.19	1.07
Current Ratio (Current Asset/Current Liability)		4.16	3.47	5.61

LOCAL AGENCY FURTHER INFORMATION

Form 8:

Corporate identity number (CIN) Foreign company registration number	U24231JK1989PLC001136
Name of the Company	FIL INDUSTRIES LIMITED
Address	7 Kohinoor House, Sheikh Bagh, Srinagar, Jammu and Kashmir – 190001, India
This form is for	Modification of Charge
Type of Charge	Immovable Property Book Debts Movable Property (Not being pledge)
Particulars of the charge holder	UCO Bank Parliament Street, New Delhi – 110001, India bo.parlst@ucobank.co.in
Nature or description of the instrument(s) creating or modifying the charge	Composite loan document as per annexure enclosed
Date of the instrument creating or modifying the charge	Date : 12.09.2006
Amount secured by the charge	Rs.810.400 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest: Sanction of fund based and non-fund based credit facilities of the nature of term loan, cash credit, bills purchases/discounting and inland. Foreign letters of credit as per the terms and conditions enclosed in annexure. Terms of repayments: Sanction of fund based and non-fund based credit facilities of the nature of term loan, cash credit, bills purchases/discounting and inland. Foreign letters of credit as per the terms and conditions enclosed in annexure. Margin : Sanction of fund based and non-fund based credit facilities of the nature of term loan, cash credit, bills purchases/discounting and inland. Foreign letters of credit as per the terms and conditions enclosed in annexure. Extent and operation of the charge : Sanction of fund based and non-fund based credit facilities of the nature of term loan, cash credit, bills purchases/discounting and inland. Foreign letters of credit as per the terms and conditions enclosed in annexure. Others : Sanction of fund based and non-fund based credit facilities of the nature of term loan, cash credit, bills purchases/discounting and inland. Foreign letters of credit as per the terms and conditions enclosed in annexure.
Short particulars of the property charged (including location of the property)	Immovable property, plant and machinery, stocks in trade and book debts – details and location as per annexure enclosed.
Particular of the present modification	Increase in credit facilities from Ra.520.100 Millions to Rs.810.400 Millions.

Name of the company	FIL INDUSTRIES LIMITED
Presented By	Mr. S. M. Altaf
1) Date and description of instrument creating the change	Deed of hypothecation of movable plant and machinery to secure term loan dated 27.01.1999.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.190.000 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	Equitable mortgage of land and building, hypothecation of plant and machinery of food processing factory at Rangreth, Sri Nagar (Jammu and Kashmir).
4) Gist of the terms and conditions and extent and operation of the charge.	BPLR + 2.0% i.e. 14.00% p.a. with monthly rests.
5) Name and Address and description of the person entitled to the charge.	UCO Bank Parliament Street, New Delhi
6) Date and brief description of instrument modifying the charge	Agreement Dated 19.04.2004
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.	Reduction of Term loan from Rs.140.000 Millions to Rs.70.000 Millions Renewed at run down balance of Rs.70.000 Millions Other terms and conditions remain the same.

Name of the company	FIL INDUSTRIES LIMITED
Presented By	Mr. S. M. Altaf
1) Date and description of instrument creating the change	Deed of hypothecation dated 27.01.2004 and Deed of book debts dated 27.01.2004
2) Amount secured by the charge/amount owing on the securities of charge	Rs.50 millions Adhoc Cash Credit Limit
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	See Annexure
4) Gist of the terms and conditions and extent and operation of the charge.	Interest @ 14% p.a. with monthly rests or such other rate prescribed by Bank from time to time
5) Name and Address and description of the person entitled to the charge.	The Jammu and Kashmir Bank Limited, Connaught Place, New Delhi
6) Date and brief description of instrument modifying the charge	N.A.
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.	N.A.

Name of the company	FIL INDUSTRIES LIMITED
Presented By	MANAGING DIRECTOR
1) Date and description of instrument creating the change	Deed of hypothecation dated 28.08.2001
2) Amount secured by the charge/amount owing on the securities of charge	Rs.15 millions of cash credit
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Charge on the plant and machinery and all movable items at the Sri Nagar Factory of the company, and as per Deed of Hypothecation and Deed of Hypothecation of book debts
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest @10.50% p.a. or as may be prescribed by the Bank from time to time with monthly rests
5) Name and Address and description of the person entitled to the charge.	The Jammu and Kashmir Bank Limited Connaught Place, New Delhi
6) Date and brief description of instrument modifying the charge	Deed of hypothecation dated 09.10.2004 for securing cash credit of Rs.15 millions
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.	Additional cash credit of Rs.15.000 millions against the existing cash credit of Rs.15.000 millions

Name of the company	FIL INDUSTRIES LIMITED
Presented By	MANAGING DIRECTOR
1) Date and description of instrument creating the change	Deed of hypothecation dated 08.09.2004 as Corporate Guarantee for corporate loan of Rs.70 millions secured by Kohinoor International Private Limited
2) Amount secured by the charge/amount owing on the securities of charge	Rs.70 millions as Corporate Loan by Kohinoor International Private Limited
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	Charge on all current assets and fixed assets of the company charged with the Jammu and Kashmir Bank and as per Corporate Guarantee dated 08.09.2004 given by the company
4) Gist of the terms and conditions and extent and operation of the charge.	As per the terms and conditions mentioned in Corporate Guarantee and deed of hypothecation deed dated 08.09.2004 enclosed
5) Name and Address and description of the person entitled to the charge.	The Jammu and Kashmir Bank Limited, Connaught Place, New Delhi
6) Date and brief description of instrument modifying the charge	N.A.
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.	N.A.

Name of the company	FIL INDUSTRIES LIMITED
Presented By	MR. S. M. ALTAF
1) Date and description of instrument creating the change	Agreement dated 11.01.2004 for Rs.496 millions
2) Amount secured by the charge/amount owing on the securities of charge	Rs.496 millions as per details in agreement dated 11.01.2001
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	EMTD and charge on company premises at H – 88, Vidya Palace, NDSE – I, New Delhi, factory premises at Jammu and Sri Nagar, and other details as per Annexure Enclosed
4) Gist of the terms and conditions and extent and operation of the charge.	See Annexure Enclosed
5) Name and Address and description of the person entitled to the charge.	UCO Bank, Parliament Street, New Delhi
6) Date and brief description of instrument modifying the charge	Form No. A-9/ Form A-9B/ A-9C/ A-9D and composite loan documents dated 19.04.2004
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.	Modified as per terms of sanction letter, with Interest charged as per Annexure Enclosed Point No. 3 and reduction of loan from Rs.496 millions to Rs.396 millions including C/C limit from Rs.115 millions to Rs.135 million and T/L from Rs.190 millions to Rs.70 millions

Fixed Assets :

· Land

· Land (Leasehold)

· Office Building

· Factory Building

· Plant and Machinery

· Vehicle

· Furniture and Fixtures

· Office Equipments.

Website details:

Providing the best of protection for a bumper Crop, achieving International Standards in Food Processing setting up infrastructure for post Harvest Management and provision of quality and high yielding Seeds for the best Crop.

As an Agri - Business Company, at FIL they firmly believe that Agriculture has an impact on the lives of everyone - from farmers to consumers. Their strategic alliance with a wide area of array of world leaders in their allied business enable them to delve deep into their repositories of excellence and expertise for bringing the very latest to Indian farmer. Their mainstay is the evolution of growing and highly motivated team of experience spanning diverse field and relevant applications. They follow the time tested strategy of selective evolution of evergoing technologies from across the world followed by innovative adaptation of these technologies to meet customer requirement and provide the long term value.

VISION

They are committed to grow into a successful transnational corporation in presence and spirit.

· Increase their Global presence

· Continuously improve their knowledge, skills and technologies they use

· Continuously add value to their products and services through quality improvements

· They would like to be a respected member of the business community wherever they operate for their care for Environment, Human values, Ethics, Safety and Stewardship principles.

MISSION

They are engaged in Agro and Allied business and poised to grow very rapidly into a profitable transnational corporation.

· New Strategic investments in core and new business.

· Strategic Alliances and partnering with more multinational and national companies.

· Increased presence in high potential countries.

· Increased market share in key business segments.

· Competitive edge by continuous quality improvement in their products and services.

CORPORATE PHILOSOPHY

They would continuously work towards

· Maximizing customer satisfaction through value addition/quality improvement in their products/services.

· Creating work environment which fosters ethics and integrity, while supporting individual moral values.

· Conducting business in a socially responsible manner that sustains and protects environment.

· Upholding product stepwardship principles and values that take care about health and safety of employees, customer, suppliers and the community wherever they operate.

CROP PROTECTION DIVISION:

· Operations and Manufacturing Facilities

Since its inception Subject has been in the business of trading of Crop Protection Chemicals which was later followed by the setting up of its state – of - art manufacturing unit at Jammu in J and K, set up in Jammu, the manufacturing unit has facilities for formulation of Liquid, Granules and power of installed capacity of 4500 KL, 4600 KL and 3000 MT respectively.

In a country like India which possesses outstanding competition, advantage in Agriculture comparable to those of any other country in the world, they realize that importance of good quality Crop Protection Chemicals for minimizing the losses and improving productivity in Agriculture. Their emphasis on research and development, as well as quality, has enabled them to introduce a wide range of new safer compounds and formulations which are more effective.

The Company today takes pride in its wide range of Insecticides, fungicides, Herbicide, and Plant growth regulations.

FOOD AND BEVERAGE DIVISION

They offer a wide range of juice and beverage options that are a perfect combination of taste and nutrition. These products meet the individual nutritional needs and are a smart and healthy beverage choice.

The entire product range is brought to in a tetrapak which retains the freshness of the juice. The special technology used is the packaging keeps the juice fresher for a longer period of time without any added preservatives.

The product reaches the consumer in a hygienic packing after processing and packing in a state of art plant absolutely untouched by hands to maintain hygiene and quality.

ENGEERING DIVISION

They realize the need to provide adequate infrastructure facilities to the Indian farmer for it to compete with its global counterpart. This division of the Company is engaged in building infrastructure for the farming community and providing technical expertise for its operations and management. The division started its operation last year and has the objectives to provide basic infrastructure facilities at the farm level and near the fruit growing areas. This would involve setting up of small processing units and controlled Atmospheric stores together to the packing and grading lines.

CONSUMER DIVISION

Subject diversified from “Crop Protection” to “Crop Processing” and the Consumer Division was set up, and is primarily engaged in the manufacturing and export of Fruit Juice Concentrate.

The geographical advantage of the location of their manufacturing unit near the fruit growing areas and in area which has a diversity of fruits in abundance helps them source the best quality of fruits for processing. This together with the modern state-of-art technology from Austria has allowed them to reach the highest quality standards. India’s largest fruit juice concentrate unit, the plant is well equipped to manufacture concentrates for fruits like apple, pears, cherry, apricot and plum.

Subject is the largest exporter of Apple Juice Concentrate from India. Their commitment to quality and product knowledge has enabled them to reach the principal markets in the world for apple juice concentrate and has allowed them to operate with premium clients in India as well as abroad. Quality has been their platform for business development and growth. Their unit is HACCP and ISO 9001:2000 certified with regular GMP audits to ensure quality and their commitment to highest hygiene standards.

The manufacturing unit is a hallmark in technological excellence, commissioned with state of art advanced plant and machinery sourced from the best sources worldwide. The salient features of the plant include:

· A Bellmer Double Wrinkle fruit press from Germany with a crushing capacity of 20 MT per hour.

· India’s first Ultrafiltration Plant from PCI Membrane of U.K.

· A separate Aroma recovery unit from Schmidt Bretten of Germany that extracts the aroma of each fruit in order to restore the original flavor to the end product.

· A 4 stage Schmidt bretten Sigmaster Plate evaporator that ensures the desired degree of juice concentration.

Their current product range includes:

· Apple Juice Concentrate

· Apple Aroma

· Seabuckthorn Concentrate

· Apricot Pulp

· Cherry Concentrate

· Plum Concentrate

NEWS :

FIL Ind forays into South with its fruit drink brand

· Bureau

Hyderabad , July 19

THE Jammu and Kashmir-based, FIL Industries Limited, has drawn up plans to launch about 15 fruit drink combinations over the next few months. It is eyeing the overseas market with multiple package options.

Launching the Bhukari-promoted company's latest offering in south India, the Vice-President of Sales and Marketing, Mr Lokesh Naidu, said, "After the successful introduction of TUK3 in the North, they are foraying into the South, which has potential for rapid growth. TUK3 is a combination of Seabuckthorn (Ladakh berry), Kashmiri apples and Indian mango."

Addressing a press conference here, Mr Naidu said TUK 3 has been introduced under Fruitfil, the umbrella brand of the Juice Division of FIL and priced at Rs.10 for a 200 ml Tetra Pack. It is targeted at the young consumer who will enjoy distinct, tangy taste along with additional nutritional value. Traditionally, this market is mainly concentrated with mango juice (99 per cent). The name TUK comes from the tongue-clacking sound produced to express a distinct, taste bud hitting lingering sensation.

The Indian drink market is seen gradually drifting from the carbonated drinks where more and more people lately prefer fruit juice options not only for their nutritional value but also distinct taste.

While the drink market is estimated at about Rs.2000 millions, nector accounts for about Rs.1000 millions and Rs.1800 millions is from fruit juices. The overall market for fruit drinks and juices is estimated at about Rs.6000 millions and growing at about 40 per cent per annum. This presents FIL with an opportunity to tap the larger sections. Therefore, FIL plans to offer a range of new flavours later this year, Mr Naidu said.

"They are in the process of backward integration and expect to enter cultivation," he said.

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.39.29
UK Pound	1	Rs.77.02
Euro	1	Rs.58.16

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	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--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		70

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

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