MIRA INFORM REPORT

Report Date :

12.01.2011

IDENTIFICATION DETAILS

Name :	PARRY ENTERPRISES INDIA LIMITED
Formerly Known As :	PARRY ENGINEERING AND EXPORTS LIMITED
Registered Office :	Dare House, No.2, (Old No.234), N.S.C. Bose Road, Chennai – 600001, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	14.12.1990
Com. Reg. No.:	18-020023
CIN No.: [Company Identification No.]	U29142TN1990PLC020023
TAN No.: [Tax Deduction & Collection Account No.]	BRDP01533A/ CHEP00713G
PAN No.: [Permanent Account No.]	AAACP3643D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Polymers and Knitted Fabrics.

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1623000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION DECLINED BY

Name :	Mr. Bhasker R.S.
Designation :	AGM – Finance
Contact No.:	91-44-25306457
Date :	11.01.2011

LOCATIONS

Registered/ Head Office :	Dare House, No.2, (Old No.234), N.S.C. Bose Road, Chennai – 600001, Tamilnadu, India
Tel. No.:	91-44-25340251/ 25306457/ 58/ 25306395/ 25306789
Fax No.:	91-44-25342378/ 25340030/ 25342378/ 253023780
Email :	marketinghead@tuflex.net saravananm@parry.murugappa.com netlon@tulex.net baskerrs@parry.murugappa.com
Website :	http://www.peil.in
Area :	35000 Sq. ft.
Location :	Owned
Branch Offices :	Located at: v Chennai v Cochin v Bangalore v Hyderabad v Hooghly v Mumbai
Factory :	702/704, GIDC Palej, Bharuch District – 392220, Gujarat, India
Tel. No.:	91-2642-277663/ 4
Area:	27000 Sq. ft.
Location :	Owned

DIRECTORS

As on 23.07.2010

Name :	Mr. Venkatachalam Murugappan Muthiah
Designation :	Chairman
Address :	20/1 Valliammai Achi Road, Kotturpuram , Chennai – 600085, Tamilnadu, India
Date of Birth/Age :	24.11.1958
Date of Appointment :	14.07.2004
DIN No.:	00152619
Name :	Mr. Arunachalam Murugappa Arunachalam Murugappan
Designation :	Managing Director
Address :	The Laurels, New No.9, (Old No.4), Chitharanjam Road, Teynampet Chennai – 600018, Tamilnadu, India
Date of Birth/Age :	18.06.1967
Date of Appointment :	18.01.2008
DIN No.:	00202958
Name :	Mr. Rajan Chittur Ramakrishanan
Designation :	Director
Address :	B-1, Ashok Tapasvi , 9 Lock Street Kotturpuram, Chennai – 600085, Tamilnadu, India
Date of Birth/Age :	13.07.1951
Date of Appointment :	10.08.2005
DIN No.:	00111933
Name :	Mr. Srinivasan H.R.
Designation :	Director
Address :	72, Venkatakrishna Road, Raja Annamalaipuram, Chennai – 600028, Tamilnadu, India
Date of Birth/Age :	22.03.1964
Date of Appointment :	23.07.2010
DIN No.:	00130277
Name :	Mr. Kunnawalkam Elayavalli Ranganathan
Designation :	Director
Address :	F/2, “Sri Padmam Apartment, 18 Bhagirathi, Awwal Street, T Nagar, Chennai – 600017, Tamilnadu, India
Date of Birth/Age :	25.05.1962
Date of Appointment :	23.07.2010
DIN No.:	00058990
Email :	ranganathanke@parry.murugappa.com
Name :	Mr. Sridhar Ganesh
Designation :	Director
Address :	New No.25, Old No.10/3, Archbishop Mathias Avenue, Raja Annamalai Puram, Chennai – 600028, Tamilnadu, India
Date of Birth/Age :	31.12.1950
Date of Appointment :	23.07.2010
DIN No.:	01681018
Email :	sridharganesh@corp.murugappa.com
Name :	Mr. K.E. Ranganathan
Designation :	Director
Address :	F/2, Sri Padmam Apartments, 18, Bhagirathi Ammal Street, T. Nagar, Chennai – 600017, Tamilnadu, India
Date of Birth/Age :	25.05.1962
Date of Appointment :	17.07.2009
Name :	Mr. Murugappan Vellayan Subbiah
Designation :	Director
Address :	22, Boat Club Road, Coromandel House, Chennai – 600028, Tamilnadu, India
Date of Birth/Age :	02.02.1939
Date of Appointment :	14.07.2004
Date of Ceasing :	23.07.2010
DIN No.:	00225614
Name :	Mr. Ganapathy Kalpathy Ramakrishnan
Designation :	Director
Address :	23, Ganesh Street, Gopalapuram, Chennai – 600086, Tamilnadu, India
Date of Birth/Age :	12.09.1934
Date of Appointment :	14.07.2004
Date of Ceasing :	23.07.2010
DIN No.:	00441224
Email :	ganapathyseetha@yahoo.com

KEY EXECUTIVES

Name :	Mr. Saravanan Muthukumaraswmay
Designation :	Company Secretary
Address :	48, Neelakidangu Street, Karaikal – 609602, Pondicherry, India
Date of Birth/Age :	14.02.1976
Date of Appointment :	25.06.2006
Email:	saravananm@parry.murugappa.com
Name :	Mr. A S Parasuraman
Designation :	Company Secretary
Name :	Mr. Bhasker R.S.
Designation :	AGM – Finance
Name :	Mr. Rajesh
Designation :	Deputy Manager Sales (Chennai )
Name :	Mr. B.C. Brini
Designation :	Deputy Manager Sales (Cochin)
Name :	Mr. J.N. Waghray
Designation :	Branch Manager (Bangalore and Hyderabad)
Name :	Mr. Ranjesh Kumar
Designation :	Branch Manager (Mumbai)
Name :	Mr. Ranjan Mukherjee
Designation :	Deputy Manager Sales (Hooghly)
Name :	Mr. Sridharan TR
Designation :	Senior Manager - Water Business
Name :	Mr. R.N. Swamy
Designation :	General Manager - Sales

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 23.07.2010

Names of Shareholders	No. of Shares (Equity)
A.M. Meyyammai	14000
M.A.M. Arunachalam	95900
M.A. Alagappan	19250
A.A. Alagammai	49000
Arun Algammai	27650
Lakshmi Ramaswamy	14000
Lakshmi Chokalingam	7000
M.M. Seetha Lakshmi	98000
M.M. Murugappan	49000
Meenakshi Murugappan	27000
Master M.M. Muthiah	29400
M.M. Ventkatachalam	63000
Lakshmi Ventkatachalam	15400
Master M.V. Muthiah	15000
A.R. Meeenakshi	28000
A. Vellayan	29750
Master V. Arunachalam	9215
A. Venkatachalam	29160
M.V. Murugappan	12830
M.V. Valli Murugappan	79100
M. Vellachi	4200
M.V. Subbiah	12835
M.V. Seetha Subbiah	73500
S. Vellayan	9800
M.S. Rao	5830
New Ambadi Estates Private Limited, India	2356726
Karthik Investment Trust Limited, India	201600
A.M.M. Vellayan Sons Private Limited, India	8400
A.R. Lakshmi Achi Trust, India	35000
R.N. Swamy	350
M.A. Alagappan Kadamane Estates Company, India	20275
A.M. Meyyammai and M.A. Arunachalam	7000
M.A. Alagappan Murugappa and Sons, India	7490
M.A. Alagappan	18700
Valli Alagappan, L. Alagappan	9300
Murugappa Educational and Medical Foundation, India	58800
Total	3541461

Names of Shareholders	No. of Shares (Preference)
New Ambadi Estates Private Limited, India	1500000
Total	1500000

As on 23.07.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	72.48
Directors or relatives of directors	24.70
Other top fifty shareholders	2.82
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Polymers and Knitted Fabrics.

Products :

v Engines, Alternators and others

v Tube

v Diesel Gensets

v Commission Income

v Agricultural Products

v Garden Landscape Products

v Mosquito Proofing Products

v Packaging Products

v Special Application

v Domestic / Consumer Products

v Geosynthetics

Item Code	Product Description
392690.09	Polymer Meshes
291521.00	Trading of Acetic Acid
7306.00	Tubes
3132	Packing Materials

Brand Names :

“PARRY”

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity *	Purchases/ Actual Production
Extruded Polymer Meshes	MT	2090	2090	1756.54
Knitted Fabrics	MT	NA	535	372.01
Flexible Packing	MT	6000	4200	2214.76

* As certified by the Management

GENERAL INFORMATION

No. of Employees :

100 (Approximately)

Bankers :

v State Bank of India,

Commercial Branch, -Credit Processing Cell, Bombay Mutual Building, 232, NSC Bose Road, Chennai – 600001, Tamilnadu, India

v ICICI Bank Limited

Landmark, Race course circle, Vadodara – 390 007, Gujarat, India

v Yes Bank limited

9th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Foreign Currency Term Loan *	226.526	0.000
Rupee Term Loan from a Bank *	0.000	210.979
Cash Credit from Bank **	61.854	1.603
Total	288.380	212.582

* The term loan is secured by equitable mortgage of Company’s leasehold rights in respect of factory land and buildings constructed thereon at Palej, Bharuch District, Gujarat and first charge on the Plant and Machinery and other Miscellaneous fixed assets of the Company.

** Cash credit facilities are secured by pari passu charge on all the current assets of the Company, both present and future and collaterally secured by extension of equitable mortgage on Company’s leasehold rights in respect of factory land and buildings constructed thereon at Palej, Bharuch District, Gujarat and first charge on the Plant and Machinery and other Miscellaneous fixed assets of the Company.

Banking Relations :	--
Auditors :
Name1:	Price Waterhouse Chartered Accountants
Address 2:	32, Khader Nawaz Khan Road, Nugumbakkam, Chennai – 600034, Tamilnadu, India
Holding Company :	New Ambadi Estates Private Limited, India CIN No.: U01116TN1942PTC003659
Fellow Subsidiary :	v Parry Agro Industries Limited v Thangamalai Tea Factory Private Limited v New Ambadi Investment and Enterprises Private Limited
Partnership Firms :	v Yelnoorkhan Estates v Bangaragiri Estates v Jensury Estates v Sipani Plantations v Kanakannadoddi Coffee Estate v Kadamane Estates Company (KEC)

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 millions
6000000	Redeemable Cumulative Preference shares	Rs.10/- each	Rs.60.000 millions
	Total		Rs.120.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3541461	Equity Shares	Rs.10/- each	Rs.35.415 Millions
1500000	7% Cumulative Redeemable Preference shares	Rs.10/- each	Rs.15.000 Millions
	Total		Rs.50.415 millions

NOTE:

1. Of the above 2472750 Equity Shares of Rs.10/- each have been issued for consideration others than cash.
2. 2356726 Equity Shares of Rs.10 each is held by the holding company, New Ambadi Estates Private Limited.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		50.415	50.415	50.415
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		355.353	345.878	130.879
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		405.768	396.293	181.294
LOAN FUNDS
1] Secured Loans		288.380	212.582	201.007
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		288.380	212.582	201.007
DEFERRED TAX LIABILITIES		41.000	37.600	8.400
TOTAL		735.148	646.475	390.701
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		428.062	455.346	124.819
Capital work-in-progress		1.747	1.185	188.162
Preoperative Expenditure Pending Capitalisation		0.000	0.000	13.508
INVESTMENT		60.917	103.034	0.883
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	109.581	77.475	44.510
	Sundry Debtors	165.988	124.395	116.776
	Cash & Bank Balances	23.150	29.122	25.650
	Other Current Assets	0.033	0.124	0.000
	Loans & Advances	107.864	81.775	75.579
Total Current Assets		406.616	312.891	262.515
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	116.903	171.800	153.260
	Other Current Liabilities	39.891	50.213	42.531
	Provisions	5.400	3.968	3.395
Total Current Liabilities		162.194	225.981	199.186
Net Current Assets		244.422	86.910	63.329
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		735.148	646.475	390.701

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales Turnover	961.933	519.030	376.497
		Commission and Services Income	72.095	55.095	50.534
		Other Income	15.905	363.547	4.363
		TOTAL (A)	1049.933	937.672	431.394
Less	EXPENSES
		Cost of Goods Sold	751.455	378.249	243.405
		Employees Cost	78.108	59.356	49.959
		Other Costs	147.102	119.845	98.523
		TOTAL (B)	976.665	557.450	391.887
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		73.268	380.222	39.507
Less	INTEREST (D)		26.884	25.698	10.494
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		46.384	354.524	29.013
Less/ Add	DEPRECIATION/ AMORTISATION (F)		33.684	31.196	14.913
	PROFIT BEFORE TAX (E-F) (G)		12.700	323.328	14.100
Less	TAX (H)		2.000	107.100	5.400
	PROFIT AFTER TAX (G-H) (I)		10.700	216.228	8.700
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		294.121	79.122	70.905
Less	APPROPRIATIONS
		Proposed Dividend on Preference Share Capital	1.050	1.050	0.413
		Dividend Tax	0.175	0.179	0.070
	BALANCE CARRIED TO THE B/S		303.596	294.121	79.122
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Exports	1.066	2.537	1.342
		Commission and Service Income	20.360	10.096	4.445
	TOTAL EARNINGS		21.426	12.633	5.787
	IMPORTS
		Finished Goods Spares and Components	158.150	95.207	65.778
		Raw Materials	57.860	4.711	17.445
		Capital Goods	0.000	148.339	12.354
	TOTAL IMPORTS		216.010	248.257	95.577
	Earnings Per Share (Rs.)		3.02	61.06	2.50

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.02	23.06	2.02
Net Profit Margin (PBT/Sales)	(%)	1.32	62.29	3.75
Return on Total Assets (PBT/Total Assets}	(%)	1.52	42.09	3.64
Return on Investment (ROI) (PBT/Networth)		0.03	0.82	0.08
Debt Equity Ratio (Total Liability/Networth)		1.11	1.11	2.21
Current Ratio (Current Asset/Current Liability)		2.51	1.38	1.32

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors:
- Dues to Micro, Small and Medium Enterprises	--	--	--
- Others	116.903	171.800	153.260

PERFORMANCE:

The turnover of the Company was Rs.1050.000 millions, as against the last year turnover of Rs.590.000 millions (excluding exceptional income of Rs.350.000 millions) registering a growth of 78% during the current year. The PBIT of the company for the year was Rs.39.600 millions. The profit before tax for the year was Rs.12.700 millions.

TUFLEX INDIA DIVISION

The turnover of the Polynet unit was Rs.309.100 millions during the year registering growth of 15% over previous year sales of Rs.267.800 millions. Development of new applications, government and institutional orders along with increase in the distribution network contributed to the growth.

During the year the Flexible packaging unit has stabilized and posted a revenue of Rs.249.200 millions. The customer base has also increased substantially. The unit has made breakthroughs in many major customers and the outlook for the coming years is very promising. The feedback from the customers on the facility and the, product quality has been very positive and encouraging. The plant has obtained the prestigious certification for establishing the Food Safety Management System for manufacturing and supply of printed flexible packaging laminates and pouches under ISO 22000:2005 during this year. This positions the unit as a player in the food packaging laminates which is the largest segment for laminate consumption in India.

GENERAL MARKETING DIVISION

The division recorded all time high sales of Rs.415.500 millions, thus registering growth of 86% over previous year. The total income during the year was Rs.462.800 millions as compared to Rs.260.700 millions during 2008-09. The imported product prices continue to be volatile. Parry Packaged drinking water performance continued to be good.

The products sold under the ‘Parry Brand’, provided encouraging results. The strategy of increased customer base and product range yielded good results.

TRAVELS DIVISION

The division had quite a good year and was back to its growth path.

FORM 8:-

Name of the company	PARRY ENGINEERING AND EXPORTS LIMITED
Presented By	Mr. A Vellayan of Parry Engineering and Exports Limited
1) Date and description of instrument creating the change	Deed of hypothecation date4d the 13^th day of October , 2004 executed by Parry Engineering and Exports Limited (therein and hereinafter referred to as the Company) in favour of ICIC Bank Limited (therein and hereinafter referred to as “ICICI Bank”)
2) Amount secured by the charge/amount owing on the securities of charge	Rupee Term Loan of Rs.62.000 million (hereinafter referred to as “the facility”)
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	The whole of the movable properties of the company including its movable plant and machinery , machinery spares , tools and accessories and other movables , both present and future , whether installed or not and whether lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of theses present be brought into or upon or be stored or be in or about all the company factories , premises and godowns situated at Chennai , Madurai , Mumbai , Delhi , Kolkata , Kochi, Bangalore, Secunderabad and Baroda (hereinafter referred top as “the said goods”)
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of ICICI Bank having agreed to lend pay and advance to the company the facility , agreement and declaration by the company , inter alia, as follows: Covenant by the company to repay the facility and pat Interest all other monies in the manner set out in the credit facility agreement dated October 13, 2004 (hereinafter referred to as “the said facility agreement”) between the company and ICICI Bank and to comply with term and conditions of the said facility agreement. The said goods were thereby hypothecated to ICICI Bank, as and by way of first charge as security for and by charged with repayment of the facility with all Interest liquidated damages, commitments. Charge, premia on prepayment or on redemption , costs, charges and expenses and all other monies payable by the company to ICICI Bank in respect thereof. Provided that the charge of ICICI Bank on the said goods will be subject to the charge or charges created and / or to be created by the company in favour of its banker on its stocks of raw material, semi finished goods, consumables stores and book debts and such other movables as may be agreed to by ICICI Bank for securing the borrowing for working capital requirement in the ordinary course of business. The company to keep the said goods in marketable and good condition and also insured as provided therein Power of entry, power to take charge and / or possession of, seize, recover, receive, appoint receivers of and remove and / or sale by public auction or private contract, dispatch for realisations or otherwise, dispose off or deal with all or any part of the said goods, etc as provided therein.
5) Name and Address and description of the person entitled to the charge.	ICICI Bank Limited Landmark Race Course Circle, Vadodara – 390 007, Gujarat, India
6) Date and brief description of instrument modifying the charge	No instrument was executed but on the 30^th Days of June 2005, mortgage was created by the company in favour of ICICI Bank by deposit of title deeds with ICICI Bank in respect of the company immovable properties admeasuring 26323.00 sq.mtrs situate at palej Village, Taluka Bharuch , Bharuch district in the State of Gujarat in order to create a security thereon as and by way of mortgage by deposit of title deeds pursuant to the resolution passed by the board Meeting of Director of the company on May 10, 2005
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.	The facility together with Interest thereon at the respective agreed rates, additional Interest, liquidated damages, commitments. Charges premia on prepayment , costs, charges and other expenses payable by the company to ICICI Bank in respect thereof secured under the above mentioned deed of hypothecation is also now secured , interalia, by the said mortgage by deposit of title deed in respect of the company immovable properties admeasuring 26323.00 sq.mtrs situate at palej Village, Taluka Bharuch District in the State of Gujarat together with all buildings and structures thereon and all plant and machinery attached to earth or permanently fastened anything attached to the earth.

Corporation identity number or foreign company registrations number of the company	U29142TN1990PLC020023
Name of the company	PARRY ENTERPRISES INDIA LIMITED
Address	Dare House, 234, N.S.C. Bose Road, Chennai – 600001, Tamilnadu, India
This Form is for	Modification of charge
Type of Charges	Book Debts Floating Charge Others – First Pari Passu charge on the Current Assets
Particular of the charge holder	Yes Bank limited 9th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – Maharashtra, India shareholders@yesbank.in
Nature or description of the instrument creating charge	Supplemental Deed of Hypothecation dated 24th February 2010
Date of the instrument creating charge	24.02.2010
Amount Secure by the charge	Rs.100.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest : CC-YBL PLR-5%p.a., WCDL-To be decided at the time of disbursement, Sight LC-0.75%all inclusive, Usance LC-1.25%all inclusive, Performance/ Bid bond/ advance payment BG-1.5%all inclusive,BC-1.50%p.a. Terms of repayment: NA Margin: CC/WCDL-25% on (Book debts<90 days+stocks creditors) Extent and operation of the charge: First pari passu charge on the Current Assets of the borrower with minimum 1.3x cover (as described in Supplemental Deed of Hypothecation).
Short particulars of the Property charged	First pari passu charge on the Current Assets of the borrower with minimum 1.3x cover (as described in Supplemental Deed of Hypothecation).
Particulars of the present modification	CC/WCDL limits enhanced from earlier limits of INR 50 Millions to INR 100 Millions and Sub limits for Usance LC/ BG enhanced from INR 20 Millions to INR 50 Millions. Also, new facilities of Sight LC and Buyer's credit (sublimits of CC facility) of INR 50 Millions and INR 40 Millions respectively sanctioned to the borrower.

CONTINGENT LIABILITIES:

Particulars	31.03.2010 (Rs. in millions)
Claims against the company not acknowledged as debts – Disputed Sales Tax	1.498

FIXED ASSETS:

v Leasehold Land

v Buildings

v Plant and Machinery

v Furniture and Office Equipment

v Computers

v Vehicles

v Software

WEBSITE DETAILS:

PROFILE:

The General Marketing Division of subject is headquartered in Chennai with Sales offices and warehousing facilities in all the four Southern states and Mumbai backed by logistics support and integrated IT infrastructure ensuring high standards of customer service. The key assets of the Division are its pool of experienced and trained executives with a strong understanding of the Food Industry.

Subject operates through an extensive network of Primary and Secondary distributors providing in-depth reach and ensuring easy availability of materials to customers in India. They directly service major customers in various end use segments. The range of food ingredients that they market finds extensive application in many end use segments such as Biscuit, Bakery, Dairy, Confectionery, Pharmaceuticals, Beverages, Processed foods, Textiles and more.

With the strong backing of the Principals, vast repertoire of products, distribution experience, Strong infrastructure and a successful track record, subject would be keen to extend it’s expertise and offer it’s services to meet customer’s discerning needs.

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.45.32
UK Pound	1	Rs.70.54
Euro	1	Rs.58.70

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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		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	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.