MIRA INFORM REPORT

Report Date :

27.06.2008

IDENTIFICATION DETAILS

Name :	KOHINOOR INDIA LIMITED
Registered Office :	Basti Bawa Khel, Kalpurthla Road, Jalandhar-144021, Punjab
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	25.04.1989
Com. Reg. No.:	16-9268
CIN No.: [Company Identification No.]	U25111PB1989PTC009268
TAN No.: [Tax Deduction & Collection Account No.]	JLDK01153F
PAN No.: [Permanent Account No.]	AAACK5426F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers and dealers of Tyres, Tubes, Rubber Chappals, Rubber Rollers, Cycle/Rickshaw Tyres and Tubes and exports of ready made Garments and allied items and also trading of Rubber Chemicals.

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 220000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company meeting its normal commitments timeously. Trade relations are fair. Business is active. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office/ Factory :	Basti Bawa Khel, Kalpurthla Road, Jalandhar-144021, Punjab, India
Tel. No.:	91-181-2650292
Fax No.:	91-181-2650143
E-Mail :	Advisors.india@hotmail.com , info@kohinooronline.com
Website :	http://www.kohinooronline.com
Domestic :
Tel. No.:	91-181-305052/ 3050075
Fax No.:	91-181-2650143/ 2650264
Mobile No. :	91-9876333433
Board Line :	91-181-3050051 to 3050075
E-Mail :	nipun@kohinooronline.com, sandeep@kohinooronline.com
Export Office :
Tel. No.:	91-181-3050050/ 3050060
Fax No.:	91-181-2650264
Mobile No . :	91-9915015210
E-Mail :	harpreet@kohinooronline.com
Import Office :
Tel. No.:	91-181-3050071
Mobile No.:	91-9814068000
E-Mail :	spjain@kohinooronline.com

DIRECTORS

Name :	Mr. S. P. Jain
Designation :	Managing Director
Address :	295, New Jawahar Nagar, Jalandhar City-144021, Punjab, India
Date of Birth/Age :	05.01.1948
Date of Appointment :	25.04.1989
Name :	Mrs. Swaran Prabha Jain
Designation :	Director
Address :	295, New Jawahar Nagar, Jalandhar City-144021, Punjab, India
Date of Birth/Age :	22.05.1948
Date of Appointment :	28.02.2002
Name :	Mr. Sanjay Jain
Designation :	Director
Address :	295, New Jawahar Nagar, Jalandhar City-144021, Punjab, India
Date of Birth/Age :	05.11.1970
Date of Appointment :	28.02.2002
Name :	Mr. Sandeep Jain
Designation :	Director
Address :	295, New Jawahar Nagar, Jalandhar City-144021, Punjab, India
Date of Birth/Age :	16.11.1974
Date of Appointment :	01.05.1997
Name :	Mr. Sunil Jain
Designation :	Director
Address :	295, New Jawahar Nagar, Jalandhar City-144021, Punjab, India
Date of Birth/Age :	21.03.1973
Date of Appointment :	01.05.1997
Name :	Mr. Nippun Jain
Designation :	Director
Address :	295, New Jawahar Nagar, Jalandhar City-144021, Punjab, India
Date of Birth/Age :	16.09.1980
Date of Appointment :	28.02.2002
Name :	Mr. Arun Nayyar
Designation :	Director
Address :	147, Vijay Nagar, Jalandhar-144021, Punjab, India
Date of Birth/Age :	05.02.1957
Date of Appointment :	01.04.2003
Name :	Mr. Jind Lal Arora
Designation :	Director
Address :	135, Sukhjit Nagar, Kapurthala, Punjab, Inida
Date of Birth/Age :	24.01.1943
Date of Appointment :	01.04.2003
Name :	Mr. Rakesh Sharma
Designation :	Director
Address :	96, Vdham Singh Nagar, Jalandhar-144021, Punjab, India
Date of Birth/Age :	08.02.1956
Date of Appointment :	01.04.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2003

Names of Shareholders	No. of Shares
S P Jain	412500
Swaran Prabha Jain	190000
Sanjay Jain	155000
Master Nippun Jain	530790
Vardhman Chemicals	152500
Darshan Lal Jain	5000
Jatinder Kumar	50000
Sunil Jain	446500
Sandeep Jain	625000
Manju Jain	1000
Oswal enterprises	5000
Naveen Jain	2000
Punjab Trading Company	2500
Vanita Jain	1000
Rajinder Gulati	1000
Neelu Vij	500

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2007

Category	Percentage
Bodies Corporate (not mentioned above)	9.00
Directors or relatives of directors	91.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and dealers of Tyres, Tubes, Rubber Chappals, Rubber Rollers, Cycle/Rickshaw Tyres and Tubes and exports of ready made Garments and allied items and also trading of Rubber Chemicals.
Products :	Ø Cycle/ Rickshaw Ø Rubber Roll Ø Tires and Tubes Ø Bicycle Tires Ø Rubber Chemicals Ø Bicycle Tubes
Exports :
Countries :	Ø United Arab Emirates Ø Saudi Arabia Ø Syria Ø Egypt Ø Tanzania Ø Ethiopia Ø Zanzibar Ø Kenya Ø Uganda Ø Ghana Ø Ivory Coast Ø Algiers Ø Burkina Faso Ø Nigeria Ø Bangladesh Ø Central America
Terms :
Selling :	L/C, Cash and Credit (45 days)
Purchasing :	L/C, CAD and Credit

GENERAL INFORMATION

Customers :	Wholesalers.
No. of Employees :	280 ( Office 20, Factory 260 )
Bankers :	Ø State Bank of Patiala, 289, Shaheed Udham Singh Nagar, Bhagwan Mahavir Marg, Jalandhar-144001, Punjab, India Ø Capital Local Area Bank Limited, 36, Gobind Niwas, G.T. Road, Opposite Bus Stand, Jalandhar Ø Bank of Punjab Limited, Main Branch, Jalandhar, Punjab, India Ø Bank of Baroda, G. T. Road, Jalandhar, Punjab

Banking Relations :	Satisfactory
Auditors :
Name :	V. P. Vijh and Company Chartered Accountant
Address :	IInd Floor, K. K. Tower, Opposite Circuit House Road, Jalandhar-144001, Punjab, Inida
Memberships :	· CAPEXIL, Kolkata/New Delhi · FIEO, New Delhi · Northern India Chamber of Commerce and Industry, Ludhiana, Punjab
Associates/Subsidiaries :	Ø Kohinoor India Limited Ø Kohinoor Rubber Mills Ø Kohinoor International Ø Kohinoor Exports Ø Vijay Vallabh Rubber Ø Oswal Enteprises Ø Swastik Enterprises Ø Vardhman Chemicals

CAPITAL STRUCTURE

As on 29.09.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs. 10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2853250	Equity Shares	Rs. 10/- each	Rs. 28.532 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		28.532	28.532	28.532
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		17.213	17.033	16.561
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		45.745	45.565	45.093
LOAN FUNDS
1] Secured Loans		58.118	35.303	32.547
2] Unsecured Loans		7.364	14.366	22.998
TOTAL BORROWING		65.482	49.669	55.545
DEFERRED TAX LIABILITIES		4.506	4.553	4.867
TOTAL		115.733	99.787	105.505
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		22.420	22.631	22.674
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	70.429	48.634	84.761
	Sundry Debtors	187.878	129.458	97.102
	Cash & Bank Balances	13.437	11.862	16.444
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	19.241	11.665	14.419
Total Current Assets		290.985	201.619	212.726
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	196.223	122.772	128.937
	Provisions	1.449	1.691	0.958
Total Current Liabilities		197.672	124.463	129.895
Net Current Assets		93.313	77.156	82.831
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		115.733	99.787	105.505

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005
Sales Turnover		486.740	474.022
Other Income		0.991	1.236
Total Income		487.731	475.258
Profit/(Loss) Before Tax		0.889	1.229
Provision for Taxation		0.000	0.000
Profit/(Loss) After Tax		0.889	1.229
Expenditures :
	Raw Material Consumed	174.563	203.475
	Purchases made for re-sale	240.437	197.908
	Salaries, Wages, Bonus, etc.	2.353	2.359
	Managerial Remuneration	0.480	0.475
	Payment to Auditors	0.028	0.027
	Interest	5.980	6.930
	Insurance Expenses	2.835	2.812
	Power & Fuel	19.360	17.437
	Depreciation & Amortization	2.113	2.016
	Other Expenditure	38.693	40.590
Total Expenditure		486.842	474.029

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	N.A	0.18	0.26
Net Profit Margin (PBT/Sales)	(%)	N.A	0.18	0.26
Return on Total Assets (PBT/Total Assets}	(%)	N.A	0.39	0.52
Return on Investment (ROI) (PBT/Networth)		N.A	0.02	0.03
Debt Equity Ratio (Total Liability/Networth)		5.75	3.82	4.11
Current Ratio (Current Asset/Current Liability)		1.47	1.62	1.64

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Name of the company

KOHINOOR INDIA LIMITED

Presented By

Mr. S. P. Jain Director of the Company

1) Date and description of instrument creating the change

ODP Agreement against property dated 24.12.2005 for working capital requirements.

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

Rs. 10.000 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

Equitable mortgage of property detailed as below

Sr No.	Area	Title Deed No.
1	4K-1M	5580 dated 14.12.2004 (In the name Mrs. Swaran Prabha Jain)
2	22M-166sft	6603 dated 18.01.2005 (In the name of Kohinoor India Limited)

All Assets acquired to be acquired out of loan granted by the Bank under the arrangement and other assets of the company subject to prior charges created by bank/ financial institution shall be charged to the bank in the shape of hypothecation o stocks and machinery installed in the factory premises.

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

Rate of Interest 10.75 % p.a. on monthly rests

Penal Interest @2% p.a.

Extent of Operation 100%

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

Capital Local Area Bank Limited, 36, Gobind Niwas, G.T. Road, Opposite Bus Stand, Jalandhar

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

This form is for	Creation of charge
Corporate identity number of the company	U25111PB1989PTC009268
Name of the company	KOHINOOR INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	Basti Bawa Khel, Kalpurthla Road, Jalandhar-144021, Punjab
Type of charge	Others
Particular of charge holder	State Bank of Patiala, 289, Shaheed Udham Singh Nagar, Bhagwan Mahavir Marg, Jalandhar-144001, Punjab, India
Nature of description of the instrument creating or modifying the charge	Form – C.4-A-Supplemental Deed of Guarantee for increase in overall limit dated 18.03.2008. (Corporate Guarantee given by the Company for the limits raised by M/S K.R. M. Tyres at Plot No. 5A, EPIP, Jhar Majri, Baddi (Himachal Pradesh)
Date of instrument Creating the charge	18.03.2008
Amount secured by the charge	Rs. 149.000 Million
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Bank Agreement Terms of Repayment As per Bank Agreement Margin As per Bank Agreement Extent and Operation of the charge 100%
Short particulars of the property charged	Corporation Guarantee Given by the Company For the limits Raised by M/S K.R. M Tyres at Plot No. 5A, EPIP, Jhar Majri, Baddi (Himachal Pradesh)

AS PER WEBSITE

Profile:

KOHINOOR is a Persian name meaning Mountain of light. KOHINOOR Is considered as world's largest Diamond which has graced the treasury of many kings and emperors in the world. In the present history, this KOHINOOR was presented as a gift by the king of Kabul to Punjab's Lion Emperor Ranjit Singh during early 4th decade of l9th century. When Punjab fell to British Rule in India around 1850 this KOHINOOR was looted by them from then Maharaja of Punjab Dalip Singh son of Great Maharaja Ranjit Singh and it became a part of Brltish treasury and Is still with them for the past one and half century.

This KOHINOOR combination of excellent entrepreneurial skills, imaginations, highest scale of workmanship and personal service with lightening speed. This KOHINOOR emerged on India's industrial scene during 1970 and during the past 30 years it has now surpassed Indian boundaries and is becoming a household name In consumer market all over the world.

The idea of this KOHINOOR was conceived by Mr S. P. Jain, an industrial tycoon of Northern India during 1970 when he started business of manufacturing just one product i.e. Kohinoor brand Flat Transmission Belts. By the time passed, more and more products were added in the production list. Presently KOHINOOR rnanufacturing comprises of:

1. Automobile Tyres and Tubes

Heavy Duty, LCV, Tyres for Agricultural Machinery, Three Wheelers, Two Wheelers.

2. Bicycle Tyres and Tubes

Right from: size 28" down to 12" in black, coloured, Gumwall tyres and tubes.

3. Conveyor Belting

All sizes.

4. Flat Transmission Belting

Availabl In all sizes and weights.

5. Industrial Vee Belts

All sizes being used in the industrial world.

6. Industrial and domestic Rubber Hoses

British German and Indian Standards.

7. Rubber Rolls for Paddy Dehusking

In F2 and DS sizes with mesh an sleeve.

8. Rubber Footwears (Slippers)

From kids, to adolescents to aduks, all sizes.

9. Bicycle Parts

10. And much more.

To maintain the level of our quality, we use world class Imported materials like Rubbers, Chemicals and other in puts, from manufacturers in the world such as:

Bayers and Degussa in Germany

1. Zeon Chemicals in UK

2. JSR, JTC and Mitsui In Japan

3. Koln and KKPI ij Korea

4. Mitsubishi In Singapore

5. Tejin In Thailand

6. General Quimica in Spain

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.72.73
UK Pound	1	Rs.84.38
Euro	1	Rs.66.97

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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