MIRA INFORM REPORT

Report Date :

07.11.2008

IDENTIFICATION DETAILS

Name :	SAI KRIPA INSULATIONS PRIVATE LIMITED
Registered Office :	A – 36, Peenya Industrial Estate, 2^nd Stage, Bangalore – 560040 Karnataka
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	07.05.1979
Com. Reg. No.:	08-3524
CIN No.: [Company Identification No.]	U31300KA1979PTC003524
TAN No.: [Tax Deduction & Collection Account No.]	BLRS02361C
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer and Exporter of Corrugated Boxes and Printed Cartons

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 40000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are reported as slow but correct. However, the company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	A – 36, Peenya Industrial Estate, 2^nd Stage, Bangalore – 40, Karnataka
Tel. No.:	91-80-41171281 / 41171282 / 41171283
Mobil No.:	91-9845026376
Fax No.:	91-80-4117 1282
E-Mail :	skipl@airtelbroadband.in
Website:	http://skipl.tradeindia.com
Factory :	A – 105, Peenya Industrial Estate, Peenya 2^nd Stage, Bangalore – 560058, Karnataka, India
Tel. No.:	91-80-41171281/ 41171283/ 41171282
Fax No.:	91-80-41171282

DIRECTORS

Name :	Mr. Manohar Shetty
Designation :	Managing Director
Address :	366/72, 19^th Main Rajajinagar, Ist Block, Bangalore – 560 010, Karnataka, India
Date of Birth/Age :	16.08.1958
Date of Appointment :	25.03.2002
Name :	Mrs. Pramila M Shetty
Designation :	Director
Address :	No. A -36, Industrial Estate II^nd Stage, Peenya, Bangalore, Karnataka – 560 058
Date of Birth/Age :	16.04.1967
Date of Appointment :	25.03.2002

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 31.03.2007)

Names of Shareholders	No. of Shares
Manohar Shetty	27000
Pramila M Shetty	7050
Total	34050

(As on 31.03.2007)

Category	Percentage
Directors or relatives of Directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Corrugated Boxes and Printed Cartons
Products :	· Heavy Duty Corrugated Boxes · E Flute and Flute Printed Cartons · Glued Cartons · Corrugated Fitment Boxes · Water Proof Boxes · Printed Carton
Imports :
Countries :	Sweden

GENERAL INFORMATION

Suppliers :

· Sri Bhaskar Trading

· Indoz Polymers and Products

· Bangalore Trading Company

· Reliance Forwarders

· Zenith Die Makers Private Limited

· Bazargaon Paper and Pulp Mills Private Limited

· ANS Paper Mills Private Limited

· Indo Bio Chemicals and Company

· Luxmi Paper Mart

· Chitra Enterprises

· Vishwa Kutimb

· Sri Rangnatha Industries

· Box Printers Advances

Customers :

· Walmart

· Hewlett Packard India Sales Private Limited.

· Motorola India Private Limited

· SDKF India Limited.

· Karbnataa Antibiotics and Pharmaceuticals Limited.

· TATA BP Solar India Limited.

· Web Peripherals Limited.

· Woodstock Electronics (Philips)

· Medrich Steilab Limited

· HP India Limited

· Balaji Packaging Industries

· Select Technologies Limited

· Tata BP Solar India Limited

· Sanyo BPL Private Limited

· Ficus Pax Private Limited

· Motherson Sumi Systems Limited

No of Employees :

60

Bankers :

• Indian Bank,

SSI Branch, No. 130, Ramiah Complex, 100FT Road, Peenya, Bangalore – 560058, Karnataka, India

• Standard Chartered Bank
• ICICI Bank

Facilities :

Secured Loans	31.03.2007 (Rs. In Millions)
ICICI Limited – Carod	0.038
AEB Personal Loan	0.216
India Bank T. L A/C No.702715387	0.516
India Bank T. L A/C No.702720023	0.883
India Bank T. L A/C No.702508107	1.261
Total	2.914
Unsecured Loans	31.03.2007 (Rs. In Millions)
Pramila Shetty	-
KMBL Loan a/c	0.697
Loan from others	0.840
SCB – SME Loan	0.811
SCB – loan	0.406
India Bank OCC a/c	17.418
Total	20.172

Banking Relations :	Satisfactory
Auditors :
Name :	S. Sogasani and Company Chartered Accountants
Address :	No.40/1, 5^th Cross, 3^rd Main, Wilson Garden, Bangalore – 560 027, Karnataka
Memberships :	KAASIA PIA FCBM TAPPI

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
34050	Equity Shares	Rs.100/-each	Rs.3.405 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		3.405	2.000	2.000
2] Share Application Money		0.000	1.405	1.405
3] Reserves & Surplus		5.481	5.010	4.205
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		8.886	8.415	7.610
LOAN FUNDS
1] Secured Loans		2.914	16.533	14.661
2] Unsecured Loans		20.173	4.242	1.138
TOTAL BORROWING		23.087	20.775	15.799
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		31.973	29.190	23.409
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.309	5.920	4.389
INVESTMENT		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12.841	12.814	6.477
	Sundry Debtors	12.446	10.651	10.413
	Cash & Bank Balances	0.023	0.035	0.039
	Other Current Assets	0.581	2.729	0.146
	Loans & Advances	5.695	4.526	4.121
Total Current Assets		31.586	30.755	21.196
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	7.397	6.996	1.587
	Provisions	0.525	0.489	0.589
Total Current Liabilities		7.922	7.485	2.176
Net Current Assets		23.664	23.270	19.020
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		31.973	29.190	23.409

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		54.463	55.589	45.428
Other Income		0.554	0.587	0.534
Total Income		55.017	56.176	45.962
Profit/(Loss) Before Tax		0.868	1.148	1.015
Provision for Taxation		0.397	0.343	0.355
Profit/(Loss) After Tax		0.471	0.805	0.660
Expenditures :
	Consumption of Material	34.567	34.253	27.436
	Direct Expenses	7.423	12.298	11.701
	Administrative Expenses	9.436	5.402	4.201
	Interest	1.694	2.491	1.800
	Depreciation & Amortization	1.029	0.629	0.564
Total Expenditure		54.149	55.073	45.702

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	0.86	1.43	1.44
Net Profit Margin (PBT/Sales)	(%)	1.59	2.07	2.23
Return on Total Assets (PBT/Total Assets}	(%)	2.18	3.13	3.97
Return on Investment (ROI) (PBT/Networth)		0.10	0.14	0.13
Debt Equity Ratio (Total Liability/Networth)		3.49	3.36	2.36
Current Ratio (Current Asset/Current Liability)		3.99	4.11	9.74

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

The company had received considerable quantum of orders from prestigious customers, which were successfully executed and established good reputation in the packaging industry. The company’s overall performance was very appreciable and both the turnover and profitability have increased during the year. Considering this performance the company expects very good growth in the years to come.

FORM 8:

Corporation identity number or foreign company registrations number of the company	U31300KA1979PTC003524
Name of the company	SAI KRIPA INSULATIONS PRIVATE LIMITED
Address	A- 36, Peenya Industrial Estate, II^ndStage, Bangalore – 40, Karnataka, India
This Form is for	Modification of charge
Type of Charges	Book debts Movable property
Particular of the charge holder	Indian Bank, SSI Branch, No. 130, Ramiah Complex, 100FT Road, Peenya, Bangalore – 560 057, Karnataka E-Mai ID : tr_jairam@vsnl.net
Nature or description of the instrument creating charge	Agreement of Hypothecation of Movables
Date of the instrument creating charge	31.01.2007
Amount Secure by the charge	Rs.19.020 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest: For TL-3-BPLR + TP-0.50% (Presently bank’s BPLR is 12% and TP is 0.50 %) Term of repayment: Repayment of Demand Margin: Secured OD-50% TL-3-25% Extent and operation of the charge: The charge shall operate to the extent of Rs. 19.020 millions plus interest, commission, costs, expenses and other charges thereon. Other: the limit of Rs.19.020 millions comprises of secured OD-Rs.16.000 millions ( Enhanced from Rs.15.000 millions) {with a sub Limit of Import / Inland LC RS.3.000 millions} TL – 1-Rs. 0.700 millions and TL-2-Rs. 1.070 millions (Continue at the existing level); TL-3-Rs. 1.250 millions now sanctioned.
Short Particulars of the property charged (including location of the property)	Hypothecation by way of first charge on all goods, produce, merchandise, stocks, plant and machinery as detailed in annexure to the agreement of hypothecation of movables, stored / installed at A-105, Peenya industrial estate, Bangalore – 58 or wherever else. Present and future book debts as detailed in annexure.
Particulars of the present modification	By the above amount secured by charge stands enhanced from Rs.16.770 millions to Rs.19.020 millions. (All other terms and conditions remains unchanged)

Name of the company	SAI KRIPA INSULATIONS PRIVATE LIMITED
Presented By	SAI KRIPA INSULATIONS PRIVATE LIMITED and Indian Bank, Peenya Branch, Bangalore
1) Date and description of instrument creating the change	15.02.2006 Agreement of hypothecation of Movables Agreement for hypothecation of Goods Received Received Under Advance payment Guarantee, etc.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.16.770 millions (SOD Rs.15.000 millions (with a sub limit of Rs.3.000 millions for OD) MTL Rs.0.700 millions; MTL II Rs.1.070 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	First charge by way of hypothecation of each and all of the borrowers present and future: a) Goods, produce and merchandise comprising items as per, stock statement enclosed to the agreement; b) Plant and machinery and other movables including those enumerated in the list attached to the agreement c) Book debts, Outstanding moneys, recoverable claims, bills, etc Items (a) and (b) stored in the premises at A – 56, 2^nd Main, Peenya 2nd Stage, Bangalore 58 or Wherever else.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest – SOD-BPLR-1.5%p.a. TL I – BPLR + TP-1.5%p.a. TL II – BPLR+TP Margin:- 25% Repayment:- TL I repayable in 48 monthly installments of Rs. 0.014 millions besides servicing monthly interest starting January -06, TL II repayable in 60 monthly installments of Rs.0.017 millions besides servicing monthly interest starting from 3 months from the date of availment or from April -06 whichever is earlier
5) Name and Address and description of the person entitled to the charge.	Indian Bank, SSI Branch, 130, Ramiah Complex, 100Ft. Road, Peenya Bangalore -560 057

Fixed Assets:

• Land and Building
• Plant and Machinery
• Generator
• Boiler
• Electrical Installation
• Furniture and Fixture
• Dies and Moulds
• Office Equipment
• Motor Car
• Computers
• Type Writer
• Quality Control Equipment
• Air Conditioner
• Art Work

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.47.67
UK Pound	1	Rs.75.47
Euro	1	Rs.61.19

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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