MIRA INFORM REPORT

Report Date :

26.12.2011

IDENTIFICATION DETAILS

Name :	K P SOLVEX PRIVATE LIMITED [w.e.f. 30.03.2007]
Formerly Known As :	K P SOLVEX LIMITED
Registered Office :	Village Harshmau, Tehsil – Niwari, Tikamgarh – 472442, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	25.01.1983
Com. Reg. No.:	10-002131
Capital Investment / Paid-up Capital :	Rs.13.440 Millions
CIN No.: [Company Identification No.]	U15143MP1983PTC002131
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporters of edible oil
No. of Employees :	125 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba [45]

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

Maximum Credit Limit :	USD 611000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company has incurred some loss in the year 2009-10. However, net worth appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES : Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered / Corporate Office / Factory :	Village Harshmau, Tehsil – Niwari, Tikamgarh – 472442, Madhya Pradesh, India
Tel. No.:	91-7680-232312-14, 232334
Fax No.:	91-7680-232207
E-Mail :	kpsolvex@hotmail.com

DIRECTORS

As on 30.09.2011

Name :

Mr Indra Kumar Kochar

Designation :

Managing Director

Address :

386/4 – D, Civil Liines, Gwalior Road, Jhansi – 284003, Uttar Pradesh, India

Date of Birth/Age :

14.11.1941

Date of Appointment :

25.01.1983

DIN :

00029254

Name :

Mr Khushal Chand Jain

Designation :

Director

Address :

40, Sushil Enclave, Gwalior Road, Jhansi – 284003, Uttar Pradesh, India

Date of Birth/Age :

15.11.1950

Date of Appointment :

25.01.1983

DIN :

00032039

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U15143MP1983PTC002131	K P SOLVEX PRIVATE LIMITED	Director	25/01/1983	25/01/1983	Active	NO
2	U70102UP2010PTC041069	VK INFRABUILD PRIVATE LIMITED	Director	18/06/2010	18/06/2010	Active	NO

Name :

Mr Bal Kishan Trivedi

Designation :

Director

Address :

7, Sushil Enclave, Gwalior Road, Jhansi – 284003, Uttar Pradesh, India

Date of Birth/Age :

26.11.1940

Date of Appointment :

25.01.2006

DIN :

00029294

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Indra Kumar Kochar	24024
Khushal Chand Jain	16016
Bal Kishan Trivedi	17808
Raj Kumar Kochar	20720
Kochar Namita	9240
Kochar Kumar Harsh	6692
Kochar Kimar Saurabh	1820
Jain Lal Manohar	29120
Jain Jaishri	560
Kochar Kumar Indra [HUF]	3920
Jain Das Jin and I K Kochar [HUF]	4480
Total	134400

As on 30.09.2011

Equity Share Break Up Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporters of edible oil

PRODUCTION STATUS [As on 31.03.2010]

Particulars	Actual Production
Soya Oil	6603.000
Soya D O C	30978.210
Soya Refined Oil	2087.631
Rapeseed Oil	187.200
Rapeseed D O C	1870.500
Rapeseed Refined Oil	204.650
Acid Oil	118.425

PRODUCTION STATUS [As on 31.03.2010]

Particulars	Unit	Licensed Capacity	Installed Capacity	Utilized Capacity
Solvent Extraction Plant	MT	100000	100000	39967
Refinery Unit	MT	15000	15000	2465

GENERAL INFORMATION

Customers :

• Wholesalers
• Retailers
• End Users
• OEM’s
• Others

No. of Employees :

125 [Approximately]

Bankers :

Punjab National Bank, Jhansi City, Jhansi - 284001, Uttar Pradesh, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
SECURED TERM LOANS Loan secured by hypothecation of assets purchased	4.328	1.719
OTHER SECURED LOANS
Packing credit secured by hypothecation of inventories meant for export	84.135	55.420
Cash Credit secured by hypothecation of all current assets	29.631	4.016
Cash Credit secured by hypothecation of all current assets procured for trading	40.153	0.561
working Capital Demand Loan secured by hypothecation of all current assets	40.252	35.076
Total	198.499	96.792
Loans : All secured loans have been taken from Punjab national bank, city branch, Jhansi. The working capital loans are secured by first charge on all movable and immovable assets. Term loans are secured by way of hypothecation of respective assets purchased for which the loan has been granted. All these loans facilities are secured collaterally by equitable mortgage on fixed assets of the company, besides personal guarantees of directors.

Banking Relations :	--
Auditors :
Name :	J P Associates Chartered Accountants
Address :	Triveni Kunj, Prem Ganj, SIPRI, Jhansi – 284003, Uttar Pradesh, India
PAN :	AAAFJ8660R

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
200,000	Equity Shares	Rs.100/- each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
134,400	Equity Shares	Rs.100/- each	Rs.13.440 millions

Note : Out of this 110,400 equity shares of Rs.10000 each were issued as fully paid up bonus shares.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		13.440	13.440	13.440
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		139.380	167.734	152.299
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		152.820	181.174	165.739
LOAN FUNDS
1] Secured Loans		198.499	96.792	211.264
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		198.499	96.792	211.264
DEFERRED TAX LIABILITIES		0.000	0.000	1.074
TOTAL		351.319	277.966	378.077
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		75.548	76.321	80.258
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		5.145	5.605	5.654
DEFERREX TAX ASSETS		11.730	0.034	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	206.705	141.188	160.514
	Sundry Debtors	27.598	0.467	73.466
	Cash & Bank Balances	10.262	30.761	18.838
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	22.210	40.405	47.919
Total Current Assets		266.775	212.821	300.737
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.372	0.088	1.079
	Other Current Liabilities	3.024	8.679	2.463
	Provisions	4.483	8.048	5.030
Total Current Liabilities		7.879	16.815	8.572
Net Current Assets		258.896	196.006	292.165
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		351.319	277.966	378.077

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1094.849	1291.157	1596.512
		Other Income	5.307	0.292	5.037
		TOTAL	1100.156	1291.449	1601.549
Less	EXPENSES
		Office Expenses
		Administrative Expenses	1134.622	1258.641	1557.744
		Advertising Expenses
		TOTAL	1134.622	1258.641	1557.744
	PROFIT/[LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION		[34.466]	32.808	43.805
Less/ Add	DEPRECIATION/ AMORTISATION		2.773	2.954	2.341
	Prior period income / [expenses]		0.992	[0.565]	7.132
	PROFIT / [LOSS] BEFORE TAX		[36.247]	29.289	34.332
Less	TAX		11.697	9.593	15.287
	PROFIT / [LOSS] AFTER TAX		[24.550]	19.696	19.045
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.500	2.500	2.500
Less	APPROPRIATIONS
		General Reserve	[24.550]	13.196	14.034
		Capital Reserve	0.000	0.000	0.011
		Special Reserve	0.000	2.500	5.000
		Contingency Reserve	0.000	4.000	0.000
	BALANCE CARRIED TO THE B/S		2.500	2.500	2.500
	EARNINGS IN FOREIGN CURRENCY		122.439	199.977	218.904
	Earnings/[Loss] Per Share (Rs.)		[183]	146	142

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	[2.23]	1.52	1.19
Net Profit Margin (PBT/Sales)	(%)	[3.31]	2.27	2.15
Return on Total Assets (PBT/Total Assets}	(%)	[10.59]	10.13	9.01
Return on Investment (ROI) (PBT/Networth)		[0.24]	0.16	0.21
Debt Equity Ratio (Total Liability/Networth)		1.35	0.63	1.33
Current Ratio (Current Asset/Current Liability)		33.86	12.66	35.08

LOCAL AGENCY FURTHER INFORMATION

YEAR IN RETROSPECT:

Year 2009-10 approved all presumptions fatally unfair. Effects of recessions continued with nose dive fall in demand across global markets. Volatility in prices of raw materials and demand of finished goods, imports of edible oils at zero duty narrowed down production and turned margins negative.

The year that has gone by has thrown up many queries for all of us in the industry and there is an imperative need to probe into the causes, both apparent and latent, to see and make certain that we do not have to face identical conditions again. There are deeper and several reasons, apart from crushing disparity and uneven and scanty rainfall during 2009-10 season, some of which have stemmed directly from governmental policies, viz, import of cheap crude pafrn oil at nil duty, import of refined oil at only 4% duty, VAT structure. The withdrawal of export incentives only added to the woes and made Indian Exporters more un-competitive vis-a-vis the South Americans,

Rainfall in 2010-11 season seems to be satisfactory and prediction of late withdrawal of monsoon would certainly give adequate rainfall during flowering and bean pod stage and thereby showing the way to more and quality harvest.

Processing was lower for non availability of raw material at competitive rates, even during the season. A decrease in capacity utilization in the Solvent Extraction Plant from 54339 MT to 39966 MT during the year. The total processing in refinery unit of the Company also declined to 2,465 MT during the year from 5,534 MT during previous year.

FINANCE: The Company paid off Rs.0.489 million during the year in term loans from Punjab National Bank. A new term loan was raised for Rs. 3.000 millions during the year,

Future Prospects : Forecast says there will be adequate monsoonal rains in central part of India. Hope so, the crop pattern and outcome, would help the company to procure raw materials from nearby areas at competitive value

Contingent Liabilities : [As on 31.03.2010]

• Claim against company not acknowledged as Rs.2.000 millions [previous year – Rs.2.000 millions]

Bankers Charges Report as per Registry

Corporate identity number of the company	U15143MP1983PTC002131
Name of the company	K P SOLVEX PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Village Harshmau, Tehsil- Niwari, Tikamgarh – 472442, Madhya Pradesh, India
This form is for	Creation of charge
Type of charge	Movable Property Immovable Property Any interest in immovable property
Particular of charge holder	Punjab National Bank, Jhansi City, Jhansi - 284001, Uttar Pradesh, India
Nature of instrument creating charge	Packing Credit Agreement (Hypothecation) dated 27.11.2010
Date of instrument Creating the charge	27.11.2010
Amount secured by the charge	Rs.45.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - 9.25% with monthly rests for 180 days, subject to change from time to time Terms of Repayment - Limit for period of 180 days Margin – 10% Extent and Operation of the charge - Packing Credit limit of Rs.45.000 millions apart from other limits already sanctioned and being availed Others – as per agreement
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of stock of R.M., SFG and finished goods, Goods in transit, Book debts under cash credit and all such other securities acceptable to the bank Land No. 221/2, 222/2 Area 3.20 Hect. situated at vill Harshmau, Tehsil Niwari Land No. 225/1, 226/01 Area 0.721 Hect. situated at vill Harshmau, Tehsil Niwari

FIXED ASSETS :

• Land
• Building
• Plant and Machinery
• Diesel Generator
• Furniture and Fixtures
• Computer
• Office Equipments
• Electrical Installations
• Vehicles
• Laboratory Equipments
• Fire Fitting Equipments

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.52.72
UK Pound	1	Rs.82.70
Euro	1	Rs.68.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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	YES
--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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.