MIRA INFORM REPORT

Report Date :

25.03.2011

IDENTIFICATION DETAILS

Name :	KUNDER CHEMICALS PRIVATE LIMITED
Registered Office :	Kinny’s Corner, I C Colony, Boriwali West, Mumbai – 400103, Maharashtra
Country :	India
Financials (as on) :	31.01.2011 (Provisional)
Date of Incorporation :	30.05.1991
Com. Reg. No.:	11-61895
CIN No.: [Company Identification No.]	U24110MH1991PTC061895
TAN No.: [Tax Deduction & Collection Account No.]	MUMN07919C
PAN No.: [Permanent Account No.]	AAACK1713B
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacture and Exporter of Pigments.

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. The valuation report and networth statement provided seems to be satisfactory. No complaints have been heard from market or indirect sources. It would be advisable to take adequate securities while dealing with the subject.

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 PARTED BY

Name :	Mr. Bangera
Designation :	Account Manager
Contact No.:	91-22-28911111
Date :	15.03.2011

LOCATIONS

Registered Office :	Kinny’s Corner, I C Colony, Boriwali West, Mumbai – 400103, Maharashtra, India
Tel. No.:	91-22-28900000/ 28911111/ 28950000
Mobile No.:	91-9323812059
Fax No.:	91-22-28953040/ 28955256
E-Mail :	kunderchem@vsnl.com rpsardar@gmail.com
Website :	http://www.pigmentgreen.com
Area :	1000 sq. ft.
Location :	Owned
Factory :	Plot No. 316- A, Phase II, GIDC, Vapi – 396195, Gujarat, India
Tel No.:	91-260-2431133/ 3201133
Area :	6000 sq. ft.
Location :	Owned

DIRECTORS

(AS ON 30.09.2010)

Name :	Mr. Madhav K Kunder
Designation :	Managing Director
Address :	Green Gables, I C Colony, Borivali (West), Mumbai – 400103, Maharashtra, India
Date of Birth/Age :	10.01.1946
Qualification :	M.A.
Experience :	20 Years
Date of Appointment :	31.05.1991
DIN No.:	00291973
Name :	Mr. Veenit Madhav Kunder
Designation :	Whole Time Director
Address :	Green Gables, I C Colony, Borivali (West), Mumbai – 400103, Maharashtra, India
Date of Birth/Age :	12.03.1981
Qualification :	BE, MBA
Experience :	4 Years
Date of Appointment :	10.02.2007
DIN No.:	01657546

KEY EXECUTIVES

Name :	Mr. Bangera
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Madhav K Kunder HUF	20000
Madhav Kadia Kunder	122500
Ajay Madhav Kunder	12000
Veenit Madav Kunder	45000
Nishant Madav Kunder	25000
Rahul Madav Kunder	25000
Total	249500

Equity Share Breakup (Percentage of Total Equity)

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacture and Exporter of Pigments.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit (60-90 Days)

GENERAL INFORMATION

No. of Employees :

Approximately 206 (Office 6, Factory 200)

Bankers :

· Corporation Bank,

Borivali Branch, Mumbai, Maharashtra, India

· Syndicate Bank,

Paresh Apartments, Mandpeshwar Road, Borivali (West), Mumbai-400092, Maharashtra, India

· Axis Bank Limited

· Bank of Baroda

· Bank of India

· HDFC Bank

· State Bank of India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	Rs. in Millions
Overdraft Facility against hypothecation of stocks, book debts and machinery from Syndicate Bank, Borivali (West) Branch, Mumbai-400092	1.002	1.164
Axis Bank	1.198	1.159
Total	2.200	2.323
Unsecured Loans	31.03.2010	31.03.2009
	Rs. in Millions
Loan from Shareholders
Ajay M Kunder	0.000	0.127
Madhav Kunder	8.931	9.469
Rahul M Kunder	0.341	0.340
Veenit M Kunder	0.630	0.660
Total	9.902	10.596

Banking Relations :
Auditors :
Name :	R P Sardar and company Chartered Accountant
Address :	1, Beuna Vista, Holly Cross Road, I C Colony, Borivali (West), Mumbai – 400103, Maharashtra, India
Tel. No.:	91-22-28933556/ 65296045
Mobile No.:	91-9821216687
Fax No.:	91-22-28926090
E-Mail :	rpsardar@gmail.com
Group Companies :	· Candes and Kunder Constructions · Kunder Chemicals Private Limited

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
249500	Equity Shares	Rs.10/- each	Rs.2.495 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.01.2011 (Provisional)	31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		12.321	2.495	2.495	2.495
2] Share Application Money		0.000	0.000	0.000	0.000
3] Reserves & Surplus		0.000	8.498	12.086	12.342
4] (Accumulated Losses)		0.000	0.000	0.000	[0.509]
NETWORTH		12.321	10.993	14.581	14.328
LOAN FUNDS
1] Secured Loans		[0.582]	2.200	2.323	2.405
2] Unsecured Loans		10.922	9.902	10.596	12.946
TOTAL BORROWING		10.340	12.102	12.919	15.351
DEFERRED TAX LIABILITIES		0.000	0.000	0.000	0.000
TOTAL		22.661	23.095	27.500	29.679
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.469	15.509	16.068	15.087
Capital work-in-progress		0.000	0.000	0.000	0.000
INVESTMENT		0.075	0.000	0.000	0.027
DEFERREX TAX ASSETS		0.000	0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.683	5.392	5.570	7.568
	Sundry Debtors	15.096	12.698	7.014	11.171
	Cash & Bank Balances	0.444	[1.070]	0.726	1.496
	Other Current Assets	0.148	0.000	0.000	0.000
	Loans & Advances	12.189	10.022	9.140	8.625
Total Current Assets		32.560	27.042	22.450	28.860
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.901	15.258	10.934	0.319
	Other Current Liabilities	3.811	0.006	0.000	13.814
	Provisions	2.731	4.192	0.084	0.162
Total Current Liabilities		25.443	19.456	11.018	14.295
Net Current Assets		7.117	7.586	11.432	14.565
MISCELLANEOUS EXPENSES		0.000	0.000	0.000	0.000
TOTAL		22.661	23.095	27.500	29.679

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.01.2011 (Provisional)	31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	64.219	55.605	51.997	46.331
		Other Income	0.783	1.606	2.059	0.788
		TOTAL (A)	65.002	57.211	54.056	47.119
Less	EXPENSES
		Cost of Goods Sold	49.648	0.000	0.000	0.000
		Manufacturing Overheads	0.000	49.951	47.348	39.705
		Administrative Overheads	0.000	2.942	1.919	4.133
		Sales Overheads	0.000	1.569	1.207	0.000
		Factory Expenses	0.000	0.000	0.000	2.993
		Increase/ Decrease in Stock	0.000	1.238	2.126	3.233
		Salary, Wages and Excretion	1.780	0.000	0.000	0.000
		Gas Connection	0.604	0.000	0.000	0.000
		Pollution Control Expenses	0.119	0.000	0.000	0.000
		Water Charges	0.394	0.000	0.000	0.000
		Trade Commission	0.787	0.000	0.000	0.000
		Sales Promotion	0.212	0.000	0.000	0.000
		Vehicle Expenses	0.149	0.000	0.000	0.000
		Other Expenses	9.221	0.000	0.000	0.000
		TOTAL (B)	62.914	55.700	52.600	50.064
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.088	1.511	1.456	[2.945]
Less	FINANCIAL EXPENSES (D)		0.000	0.321	0.372	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.088	1.190	1.084	[2.945]
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.760	0.782	0.810	0.799
	PROFIT BEFORE TAX (E-F) (G)		1.328	0.408	0.274	[3.744]
Less	TAX (H)		0.000	0.031	0.015	0.000
	PROFIT AFTER TAX (G-H) (I)		1.328	0.377	0.259	[3.744]
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	[0.257]	[0.516]	NA
	BALANCE CARRIED TO THE B/S		NA	0.120	[0.257]	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	22.757	NA	NA
	TOTAL EARNINGS		NA	22.757	NA	NA
	Earnings Per Share (Rs.)		1.08	1.51	--	--

KEY RATIOS

PARTICULARS		31.01.2011 (Provisional)	31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.04	0.66	0.48	(7.95)
Net Profit Margin (PBT/Sales)	(%)	2.07	0.73	0.53	(8.08)
Return on Total Assets (PBT/Total Assets}	(%)	2.76	0.96	0.71	(8.52)
Return on Investment (ROI) (PBT/Networth)		0.11	0.04	0.02	(0.26)
Debt Equity Ratio (Total Liability/Networth)		2.90	2.88	1.64	2.07
Current Ratio (Current Asset/Current Liability)		1.28	1.39	2.04	2.02

LOCAL AGENCY FURTHER INFORMATION

OPERATING STATEMENT

(RS. IN MILLIONS)

Particulars	2011	2012	2013	2014	2015
	(Estimated)	(Projected)
Gross Sales
Gross Sales (Net of return)	78.156	93.788	98.477	103.401	108.571
Less : Excise Duty	3.156	3.788	3.977	4.176	4.385
Net Sales	75.000	90.000	94.500	99.225	104.186
Export Sales	30.000	36.000	37.800	39.690	41.675
Merchant Export Sales	37.500	45.000	47.250	49.613	52.093
Domestic Sales	7.500	9.000	9.450	9.923	10.419
Cost of Sales
Raw Materials Consumed (Including Stores and Other Items Used in the Process of Manufacture)
Imported	--	--	--	--	--
Indigenous	51.648	61.580	62.910	66.440	69.800
Others Stores and Spares	2.570	3.080	3.230	3.390	3.560
Power and Fuel	8.250	9.900	10.395	10.915	11.460
Direct Wages (Factory Wages and Salaries)	0.044	0.053	0.055	0.058	0.061
Repairs and Maintenance	0.943	1.131	1.188	1.247	1.310
Other Manufacturing Expenses	4.875	5.850	6.143	6.450	6.772
Depreciation	0.751	0.963	0.942	0.921	0.902
Sub Total	69.081	82.557	84.862	89.421	93.865
Add: Opening stocks in process	1.885	2.140	3.600	3.780	4.250
Sub total	70.965	84.697	88.462	93.201	98.115
Deduct: Closing stocks in process	2.140	3.600	3.780	4.250	4.760
Cost of production	68.825	81.097	84.682	88.951	93.355
Add: Opening stock of Finished Goods	1.679	3.430	4.370	4.960	5.670
Sub Total	70.505	84.527	89.052	93.911	99.025
Deduct : Closing stock of Finished Goods	3.430	4.370	4.960	5.670	6.540
SUB TOTAL (Total cost of sales)	67.075	80.157	84.092	88.241	92.485
Gross Profit	7.925	9.843	10.408	10.984	11.701
Interests	0.338	1.182	1.155	1.194	1.330
Selling, General and Administrative Expenses	7.500	8.550	9.125	9.640	10.200
Sub Total	7.838	9.732	10.280	10.834	11.530
Operating Profit	0.087	0.111	0.127	0.150	0.172
Add : Income
Discount	0.023	0.027	0.028	0.030	0.031
Interests Income	0.034	0.040	0.042	0.044	0.047
Others	1.400	1.680	1.764	1.852	1.945
Sub total (Income)
Deduct Expenses	--	--	--	--	--
Sub total (Expenses)	--	--	--	--	--
Profit before Tax/ Loss [PBT]	1.543	1.858	1.962	2.077	2.194
Provision for taxes	0.463	0.558	0.589	0.623	0.658
Net Profit / Loss [PAT]	1.080	1.301	1.373	1.454	1.536

------------------------------------------------------------------------------------------------------------------------------

ANALYSIS OF BALANCE SHEET

(RS. IN MILLIONS)

PARTICULARS	2011	2012	2013	2014	2015
	(Estimated)	(Projected)
CURRENT LIABILITIES
Short-Term Borrowing from Banks, (including bills purchased, discounted and excess borrowings placed on repayment basis)
From Application Bank	3.000	4.000	4.000	6.000	7.500
From Other Banks	--	--	--	--	--
SUB TOTAL	3.000	4.000	4.000	6.000	7.500
Short Term Borrowings From Others	--	--	--	--	--
Sundry Creditors (Trader)	19.698	20.961	20.951	20.132	19.315
Advances Payment from customers	0.000	0.000	0.000	0.000	0.000
Provision For Taxes	0.463	0.558	0.589	0.623	0.658
Creditor for Expenses	0.000	0.000	0.000	0.000	0.000
Dividend Payable	0.000	0.000	0.000	0.000	0.000
Other Statutory Liabilities (due within one years)	0.000	0.000	0.000	0.000	0.000
Installments of term loans and Deferred Payment Credits	--	0.762	0.762	0.762	0.762
Other current Liabilities and Provisions (due within one years)	0.369	0.500	0.940	1.386	1.821
SUB TOTAL	20.530	22.780	23.242	22.903	22.556
TOTAL CURRENT LIABILITIES	23.530	26.780	27.242	28.903	30.056
TERM LIABILITIES
Term Loan	--	2.286	1.524	0.762	--
Credit for Capital Expenditure	0.000	0.000	0.000	0.000	0.000
Working Capital T/L (Banks)	0.000	0.000	0.000	0.000	0.000
Installments Falling Due in one year as per contra	0.000	0.000	0.000	0.000	0.000
Deferred Tax Liability	4.766	8.384	8.411	8.450	8.424
Term Deposit	0.000	0.000	0.000	0.000	0.000
Unsecured Loans	0.000	0.000	0.000	0.000	0.000
Short Term Loans and Others	0.000	0.000	0.000	0.000	0.000
Deferred Tax	0.000	0.000	0.000	0.000	0.000
TOTAL TERM LIABILITIES	4.766	10.671	9.935	9.212	8.424
TOTAL OF OUTSIDE LIABILITIES	28.296	37.451	37.177	38.114	38.481
NET WORTH
Oriental Shares Capital	2.495	2.495	2.495	2.495	2.495
Application Money	0.000	0.000	0.000	0.000	0.000
Partner’s Current A/c	0.000	0.000	0.000	0.000	0.000
General Reserve	7.199	7.199	7.199	7.199	7.199
Revolution Reserve	0.000	0.000	0.000	0.000	0.000
Reserves and Surplus	0.000	0.000	0.000	0.000	0.000
Other Reserve (Excluding Provision)	1.178	1.178	1.178	1.178	1.178
Unsecured Loans	10.921	10.921	10.921	10.921	10.921
Share Premium Account	0.000	0.000	0.000	0.000	0.000
Surplus (+) or deficit (-) in Profit and Loss Account	1.201	2.502	3.875	5.329	6.865
TOTAL NET WORTH	22.994	24.295	25.669	27.122	28.658
TOTAL LIABILITIES	51.291	61.746	62.846	65.237	67.139
ASSETS
CURRENT ASSETS
Cash and Bank Balance	0.210	0.231	0.289	0.315	0.529
Investments [Other than long term investments]	0.000	0.000	0.000	0.000	0.000
Receivables other than deferred and exports	17.130	20.042	20.235	21.247	20.822
Export receivables	0.000	0.000	0.000	0.000	0.000
Government and other Trustee securities	0.000	0.000	0.000	0.000	0.000
Fixed deposit with bank	0.000	0.000	0.000	0.000	0.000
Domestic receivable Including BP/ BD	0.000	0.000	0.000	0.000	0.000
INVENTORY
Imported Raw Materials	0.000	0.000	0.000	0.000	0.000
Indigenous Raw Materials	2.280	2.900	3.190	3.550	4.250
Stock in Process	2.140	3.600	3.780	4.250	4.760
Finished Goods	3.430	4.370	4.960	5.670	6.540
Other Consumable Spares	--	--	--	--	--
Advances to suppliers	--	--	--	--	--
Advance Payment of Taxes	0.463	0.558	0.589	0.623	0.658
Other Current Assets	10.160	10.200	10.400	10.600	11.000
TOTAL CURRENT ASSETS	35.813	41.901	43.443	46.255	48.559
FIXED ASSETS
Gross Block (Land and Building Machinery)	29.275	34.606	35.106	35.606	36.106
Depreciation to date	13.797	14.761	15.702	16.624	17.526
NET BLOCK	15.478	19.845	19.403	18.982	18.580
OTHER NON CURRENT ASSETS
Investments in sub Cos./ Affiliates	0.606	0.606	0.606	0.606	0.606
Advances to suppliers of Capital goods and contractors	--	--	--	--	--
Investment in Others	--	--	--	--	--
Other Non-Current Investment	--	--	--	--	--
TOTAL OTHER NON CURRENT ASSETS	0.606	0.606	0.606	0.606	0.606
Intangible Assets	--	--	--	--	--
TOTAL ASSETS	51.291	61.746	62.846	65.237	67.139
Tangible Net Worth (TNW)	22.994	24.295	25.669	27.122	28.658
Net Working Capital (NWC)	12.283	15.121	16.201	17.352	18.503
Current Ratio	1.52	1.56	1.59	1.60	1.62
Total Outside Liabilities/ Tangible Net Worth	1.23	1.54	1.45	1.41	1.34

------------------------------------------------------------------------------------------------------------------------------

WORKING CAPITAL GAP

(RS IN MILLIONS)

PARTICULARS	2011	2012	2013	2014	2015
	(Estimated)	(Projected)
CURRENT ASSETS
Cash and Bank Balance	0.210	0.231	0.289	0.315	0.529
Investments (Other than long term Investments)	--	--	--	--	--
Receivable Other than deferred and Exports (including bills purchased and discounted by bankers)	17.130	20.042	20.235	21.247	20.822
(Days Sales)	(80)	(78)	(75)	(75)	(70)
Installments of deferred receivable (due within 1 year)	-	--	--	--	--
Inventory
Raw Materials
- Imported	--	--	--	--	--
- Indigenous	2.280	2.900	3.190	3.550	4.250
(Day Purchases)	(16)	(17)	(18)	(19)	(22)
Stock in Process	2.140	3.600	3.780	4.250	4.760
Finished Goods	3.430	4.370	4.960	5.670	6.540
(Days Sales)	(17)	(18)	(19)	(21)	(23)
Advances to suppliers of Raw Materials and Stores/ Spares	--	--	--	--	--
Advance Payment of taxes	0.463	0.558	0.589	0.623	0.658
Other Current Assets	10.160	10.200	110.400	10.600	11.000
(Specify major items)
Total Current Assets (A)	35.813	41.901	43.443	46.255	48.559
CURRENT LIABILITIES
Sundry Creditors (Trade)	19.698	20.961	20.951	20.132	19.315
(Days Purchases)	(138)	(123)	(121)	(110)	(100)
Unsecured Loans	--	--	--	--	--
Advance Payments from customers/ deposits from dealers	--	--	--	--	--
Provision for Taxation	0.463	0.558	0.589	0.623	0.658
Dividend Payable	--	--	--	--	--
Other statutory Liabilities (Due within one year)	--	--	--	--	--
Other current Liabilities and provisions (due within 1 Year)	--	0.762	0.762	0.762	0.762
Creditors for Capital Goods	--	--	--	--	--
Outstanding Expenses	0.369	0.500	0.940	1.386	1.821
Total Current Liabilities (B)	20.530	22.780	23.242	22.903	22.556
Working Capital Gap (A – B)	15.283	19.121	20.201	23.352	26.003

------------------------------------------------------------------------------------------------------------------------------

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

(RS IN MILLIONS)

Particulars	2011	2012	2013	2014	2015
	(Estimated)	(Projected)
Total current assets	35.813	41.901	43.443	46.255	48.559
Others Current Liabilities	20.530	22.780	23.242	22.903	22.556
[Other than bank borrowings and T L Installment]
Working capital gap [WCG]	15.283	19.121	20.201	23.352	26.003
Min. stipulated Net Working Capital – 25 % of total current assets other than Export Receivables	3.821	4.780	5.050	5.838	6.501
Actual/ Projected net working capital	12.283	15.0121	16.201	17.352	18.503
Item 3 minus item 4	11.462	14.340	15.151	17.514	19.502
Item 3 minus item 5	3.000	4.000	4.000	6.000	7.500
Maximum permissible bank finance	3.000	4.000	4.000	6.000	7.500
Excess borrowings, if any representing shortfall in NWC	(8.462)	(10.340)	(11.151)	(11.514)	(12.002)

------------------------------------------------------------------------------------------------------------------------------

DEBT SERVICES COVERAGE RATIO

(RS. IN MILLIONS)

Particulars	2012	2013	2014	2015
	(Projected)
Net Profit	1.858	1.962	2.077	2.194
Add: Depreciation	0.963	0.942	0.921	0.902
Cash Accruals	2.822	2.904	2.998	3.096
Interests on term Loan	0.412	0.320	0.229	0.137
Total (A)	3.233	3.224	3.227	3.233
Repayment	0.762	0.762	0.762	0.762
Interests on Term Loan	0.412	0.320	0.229	0.137
Total (B)	1.174	1.082	0.991	0.899
DSCR (A/B)	2.76	2.98	3.26	3.60
Average DSCR	3.33

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COST OF PROJECT

(RS. IN MILLIONS)

DETAILS	AMOUNT
Kits for conversion Dryers to Gas	0.566
Thermic Fluid Heater	0.104
Economizer for Termic Fluid Heater	0.112
Kits for Conversion of Steam Boiler	0.091
New Gas fired steam Boiler	1.058
Pigmentation Vessel	1.135
Receiver	0.389
Flame Prot Gear of 12”	0.250
Flame Proof Motor of 30 HP	0.075
Condensor	0.200
	3.980
Vat @ 12.50%	0.498
Total	4.478
Incidental expenses capitalized
Installation of Gas Equipments	0.603
Total cost of Machinery	5.081
Deposits with GSPC	0.606
TOTAL	5.687

MEANS OF FINANCE

(RS. IN MILLIONS)

DETAILS	AMOUNT
Fresh Share Capital	--
Unsecured Loans	--
Term Loan – 75% (75% of Total Cost of Machinery)	3.810
Internal Accruals	1.876
TOTAL	5.687

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VALUE OF FRINGE BENEFITS IN TERMS OF SECTION 115 WC READ WITH SECTION 115WB FOR THE ASSESMENT YEAR 2009-10

(RS. IN MILLIONS)

Section under which chargeable to Fringe Benefit Tax	Name	Amount of expenditure incurred or payment made	Percentage expenditure/ Payment being fringe benefits	Value of fringe benefits
115WB(1)(b)	Free or concessional ticket provided by the employer for private journeys of this employees or their family members	Nil	100%	Nil
115WB(1)(c)	Any contribution by the employer to any approved Superannuation fund for employees	Nil	100%	Nil
115WB(2)(A)	Entertainment	Nil	20%	Nil
115WB(2)(B)	Provision of Hospitality of every kind by the employer to any person	Nil	20%	Nil
115WB(2)(C)	Conference (Other than fee for participation by the employees in any conference)	Nil	20%	Nil
115WB(2)(D)	Sales promotion including publicity	0.067	20%	0.013
115WB(2)(E)	Employees’ Welfare	0.030	20%	0.006
115WB(2)(F)	Conveyance	0.048	20%	0.010
115WB(2)(G)	Use of hotel, boarding and lodging facilities	Nil	20%	Nil
115WB(2)(H)	Repair, Running (including fuel), maintenance of motor cars and the amount of depreciation thereon	0.085	20%	0.017
115WB(2)(I)	Repair, Running ( Including Fuel) and maintenance of aircraft and the amount of depreciation thereon	Nil	20%	Nil
115WB(2)(J)	Use of Telephone (Including mobile phone) other than expenditure on leased telephone lines	Nil	20%	Nil
115WB(2)(K)	Maintenance of any accommodation in the nature of guest house other than accommodation used for training purpose	Nil	20%	Nil
115WB(2)(L)	Festival Celebrations	Nil	50%	Nil
115WB(2)(M)	Use of health club and similar facilities	Nil	50%	Nil
115WB(2)(N)	Use of any other club facilities	Nil	50%	Nil
115WB(2)(O)	Gifts	Nil	50%	Nil
115WB(2)(P)	Scholarships	Nil	50%	Nil
115WB(2)(Q)	Tour and Travel (Including foreign travel)	Nil	5%	Nil
Total		0.230		0.046

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STATEMENT OF ASSETS AND LIABILITIES

NAME OF THE APPLICANT: MR. VEENIT M. KUNDER

(RS. IN MILLIONS)

ASSETS

INVESTMENTS IN BUSINESS CAPITAL

Name of the company concern in which investment is made	Kunder Chemicals Private Limited
Present value of Investments	Rs.0.450 Million

DEPOSITS HELD WITH BANK/ COMPANIES/ OTHER LENDER ETC.

Name of the Bank/ Company where deposits are held	Axis Bank
Date of Purchases	08.11.2004
Nature of deposits	Term Deposits
Present Value of deposit	Rs.0.260 Million

SHARES/ DEBENTURES/ MUTUAL FUNDS/ UNITS ETC.

Description	Various Companies
Present Value	Rs.1.762 Millions

LIFE INSURANCE POLICIES

Policy Numbers	902066039
Date of Policy	01.01.2002
Annual Premium	Rs.0.500 Million
Surrender Value	Rs.0.300 Million

TOTAL ASSETS

RS.2.772 MILLIONS

NET WORTH

RS.2.772 MILLIONS

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STATEMENT OF ASSETS AND LIABILITIES

NAME OF THE APPLICANT: MR. MADHAV K. KUNDER

(RS. IN MILLIONS)

ASSETS

IMMOVABLE PROPERTY

Address of the property with Survey No./ Door No. etc.	Kinny’s Corner, I C Colony, Borivali (West), Mumbai – 400103, Maharashtra, India
Description: Land/ site/ building	Shop / Bungalow
Whether Freehold/ Leasehold	Freehold / Freehold
Type of Property: Commercial/ Residential/ Agricultural	Commercial / Residential
Area/ Extent of Land	260 sq. ft. / 2000 sq. ft.
Present Market/ Assessed Value	Rs.3.000 Millions / Rs.30.000 Millions = Rs.33.000 Millions

INVESTMENTS IN BUSINESS CAPITAL

Name of the company concern in which investment is made	Kunder Chemicals Private Limited
Present value of Investments	Rs.1.450 Millions

DEPOSITS HELD WITH BANK/ COMPANIES/ OTHER LENDER ETC.

Name of the Bank/ Company where deposits are held	Axis Bank
Date of Purchases	08.11.2004
Nature of deposits	Term Deposits
Present Value of deposit	Rs.0.190 Million

SHARES/ DEBENTURES/ MUTUAL FUNDS/ UNITS ETC.

Description	Various Companies
Date of Purchases	Different Dates
Present Value	Rs.20.064 Millions

LIFE INSURANCE POLICIES

Policy Numbers	LIC – 9170056761
Date of Policy	01.12.1989
Annual Premium	Rs.0.100 Million
Surrender Value	Rs.0.225 Million

OTHER ASSETS

Jewellery	Rs.2.000 Millions
Total value of Other Assets	Rs.2.000 Millions

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REPORT OF VALUATION OF IMMOVABLE PROPERTY

PART – 1

GENERAL INFORMATION

Ref. No.

YPCVL/ 7901/ Corp/ 2010-11

a) Purpose for which valuation made

To ascertain present FMV for Corporation Bank, I.C. Colony

b) Fresh Valuation / Revaluation

Fresh valuation for YPCVL

Visit Date on which valuation made

25.02.2011

Name of the Owner / Seller / Purchaser

Kunder Chemical Private Limited

If the property is under joint ownership/ share of each owner. Is the share undivided?

Private Limited Company Ownership

Brief description of property

Land and Building: on Plot No. 316/A, J Road Phase-Il, Survey No. 621, 622, 623 and 57/P, Village Chhiri, Taluka, Pardi, Dist--Valsad.

They referred to the Xerox copy of following documents provided to them:

1) Lease deed dated 1903.1993 between GIDC (the Lessor) and M/s. Kunder Chemical Private Limited (the Lessee)

2) Property tax bill dtd. 01.01.2011 by GIDC to M/s. Kunder Chemical Private Limited, in respect of GIDC, Plot 316/A

3) The engineers visited the property on 25.02.2011 and have taken few photographs as allowed to them at the time of visit and they are enclosed herewith for the perusal, verification and records

Brief Description:

The industrial Land and Building on Plot No. 316/A, J Road Phase-Il, Survey No. 621, 622, 623 and 57/P, Village Chhiri, Taluka, Pardi, Dist—Valsad is about 2 to 3 kms. From Vapi railway station. All civic amenities are nearby and within easy reach.

The office cum laboratory building is of Ground + 1 + 2nd (pt) upper floors. The factory building is only of ground floor. It is R.C.C. frame structure with R.C.C. beams, columns, slabs and having R.C.C. staircase s upper floors. Part of this building faces road and it is having AC sheet roofing.

On the rear side of factory building a RCC building for cooling system is constructed. It does not have panel wall and sides are open. Its height is 40ft. There are Labour quarters near ETP and a Reliance Network Tower.

Nearest Landmark:

Near Arya Packaging

Property Bounded by:

North: Road

South: Open Plot

East: Suplex Textiles

West: Hercules Pigments Private Limited

Amenities and Area:

In factory building the flooring is IPS, RCC grill provided in place of windows, at entrances M.S. rolling shutter, open conduit wiring, office and laboratory areas have marble flooring, M.S. steel windows, casing capping wiring and flush type doors

The flooring is IPS flooring, the place are windows RCC grill windows and doors are teakwood frame and painted flush type shutters, wiring is casing capping wiring

Area:

As per lease agreement the land area is 6001 sq. mtrs., which is considered for valuation.

The structures valued on the basis of measurements are as under:

Particulars	Height Feet	Built up are Sq. ft.
Factory Shed with terrace	17	18847
Factory with AC Sheet Roof	12	697
RCC frame Cooling Systems with no walls	40	204
Store and Toilets	7	272
RCC Office/ Laboratory of RCC	12	1520
Security Room	9	184
Staff Quarters	8	636

A) Notes and Limitations:

1) Display board giving full details about the property and other details of materials used and precautions taken as required by the factory act, has been exhibited at the entrance of the property. Mr. Kunder the director of company identified the property to the valuer.

2) For valuation they have considered the land area as given in the lease agreement and in absence of documented construction area they have relied upon the area measured by them as the basis for valuation.

3) Copy of the approved plans not given for their verification and the same they may be obtained from the owner.

B] Disclaimers and Caveats:

1) As an abundant precaution the bank may consider the obtaining of the CIBIL Report of the customers before disbursement / enhancement of the loan to safeguard the interest of the bank from probable loss due to disbursal of loan amount. The valuers should not be held responsible due to the deviations of the bank for any reasons.

2) The valuation is based on their experience and knowledge and this is an opinion only and does not stand as a guarantee for the value it can fetch if disposed, due to any emergency, in future.

3) The legal documents pertaining to the ownership of the above said property has been referred to on its face value and that is presumed that Bank has got the same verified through its legal counsel. They do not certify the veracity of the documents. This report does not certify valid or legal or marketable title of any of the parties over the property. The report does not cover verification of ownership, title clearance, or legality and subject to adequacy of engineering / structural design.

4) The valuation is only for the use of the party to whom it is addressed and no responsibility is accepted to any third party for the whole or any part of its contents.

5) Encumbrances of Loan, Government and other dues, stamp duty, registration charges, transfer charges etc. if any are not considered in the valuation. They have assumed that the assets are free from encumbrances.

6) The report is issued at the specific request of the party for specific purpose and the said report is not valid if the purpose of use and party is different.

7) The value given in the report is only an opinion on the FMV as on date. If there is any opinion from others / valuers about increase or decrease in the value of the assets valued by us, they should not be held responsible as the views vary from person to person and based oh circumstances. The principle of “By YERS BEWARE” is applicable in case of any sale/ purchase of assets.

8) This report should be read along with legal due diligence report. Value assigned herein is subject to this stipulation. It is presumed that the Xerox of documents are taken from the originals duly tested and verified at ultra violet lamp machine (UVL) about veracity.

9) It should be noted that YPCVL’s value assessments are based upon the facts and evidence available at the time of assessment. It is therefore recommended that the value assessments be periodically reviewed.

Location, Street, Ward No.

Land and Building: on Plot No. 316/A, J Road Phase-Il, Survey No. 621, 622, 623 and 57/P, Village Chhiri, Taluka, Pardi, Dist—Valsad

Survey / Plot No. of land

Plot No. 316/A, Survey No. 621, 622, 623 and 57/P of Village Chhiri

Is the property situated at above address is about in residential! Commercial/ mixed/ industrial area?

Industrial area

Classification of locality- high class/ middle class/ poor class.

Middle class

Proximity to civic amenities like schools, offices, hospitals, market, cinemas, Railways etc.

All civic amenities are available within easy reach

Means and proximity to surface communication by which the locality is served.

Railway, taxi, bus, auto, private vehicle etc.

Is the property owner occupied, tenant, or both

Owner occupied, the bank to get it confirmed

If partly occupied, specify portion and extent of area under owner occupation.

Owner occupied, the bank to get it confirmed

SALES AND MARKETABILITY:

Give instances of sale of immovable property in the locality on a separate sheet, including the name and address of the property, registration No., sale price and area land sold.

Sales instances are not readily available. As such, local estate agent, builders and other related agencies were contacted to ascertain fair market value

Market Rates adopted.

Prevalent market Rate:

Rs.4000/- to Rs.5000/- per sq. mtr.

Rate adopted for valuation:

Land: Rs.4000/- per sq. mtr.

Structures: As per valuation table

Factors considered for valuation:

Location and locality, facilities and amenities, quality of construction, residual life of building, business potential, supply of demand, local nearby enquiry, market feed back of investigation

If sale instances are not available or relied upon, basis of arriving at the land rate.

Enquired with local Architects and Real estate consultants about the current market rates in that area and on this basis, property is valued Under “Land and Building Method”.

PRESENT FAIR MARKET VALUATION:

Value of the property at which it can be sold in the open market at a particular time free from forced value or sentimental value. The market value need not be the same as the present value. Market value may be less than the present value. Market value of the any property gets affected at least by the ten factors: Economy, Physical, Legal, Social, Utility, Marketability, Transferability, Scarcity, Location and the most important factor Demand’.

Value = Area X Rate

A) Developed Land:

Area	6001. sq. mtrs.
Rate adopted for valuation	Rs.4000/- per sq. mtr.
Value	Rs.24.004 Millions

B) Structures:

Particulars	Height Feet	Area sq. ft.	Rate Rs. Per sq. ft.	Value (Rs. In Millions)
Factory shed with Terrace	17	18847	1000	18.847
Factory with AC Sheet roof	12	697	800	0.558
RCC Frame Cooling system with no walls	40	204	1600	0.326
Store and Toilets	7	272	400	0.109
RCC office/ Laboratory of RCC	12	1520	1200	1.824
Security Room	9	184	600	0.110
Staff Quarters	8	636	800	0.509
Total				22.283
Depreciation for 18 years age 50 years total lifer span and 10% salvage value i.e. 0.9 x 18/50 x Rs.22.283 Millions				7.220
Present FMV				15.063

PARTICULARS

VALUE

(RS. IN MILLIONS)

Developed Land

24.004

Structures

15.063

Total

39.067

DISTRESS SALE VALUE I FORCED SALE VALUE:

When a property is sold at lesser price than the market value at that time. Such a value may be due to financial difficulties of the seller, court decree, defect in title, property given on long lease etc. When a borrower becomes a defaulter to the bank and when he wants to sincerely repay the loan with interest, he is forced to sell his property (which he had offered as security to the bank) and from the sale proceeds, he intends to repay to the bank

Rs.31.254 Millions

TECHNICAL DETAILS FOR THE PREMISES

No. of floors and height of each floor	Various structures including factory shed -Ground + 1 + 2nd (pt) floor
Location and Plinth Area	Land and Building: on Plot No. 316/A Plot area — 6001 sq. mtrs. — agreement Structures area — As per valuation table
Year of Construction	Above - 1993 Age of building — 18 Years
Estimated future life	32 years (Subject to proper maintenance and repairs of the building.)
Type of construction	R.C.C. frame / load bearing wall structure
Type of foundation	R.C.C. footing / brick footing
WALLS
Ground Floor	9” thick brick walls with plaster
Partitions	4W thick brick walls with plaster
Door and Windows (floor-wise)	RCC grill provided in place of windows and M. S. Rolling shutter Doors
Flooring (floor-wise)	IPS flooring
Finishing and Maintenance	Normal
Roofing and terracing.	Ac sheet roofing / terrace slab
Special architectural or decorative features.	--
Internal wiring- surface or conduit.	Open conduit wiring / in office casing capping wiring
Class of fittings superior/ ordinary / poor.	Ordinary
Sanitary installations.	Toilet
Class of fittings superior coloured / superior white / ordinary	Ordinary
Compound Wall	Brick masonry compound wall
No. of lifts and capacity.	No lift
Underground sump	Existing
Capacity	Sufficient as per requirement
Type of construction	R.C.C.
Overhead Tank	Existing
Where located	Above Terrace
Capacity	Sufficient as per requirement
Type of construction.	P.V.C. and R.C.C.
Roads and paving within the compound, approx. area.	Plain cement concrete paving
Sewage disposal / whether connected to public sewers. If septic tanks provided, no and capacity.	Drainage Connected to septic tank
Regards to Aesthetics and environment.	Normal
Safety considerations fires, earthquakes, and tides.	Fire fighting equipment installed where necessary

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REPORT FOR VALUATION OF MACHINERY

Ref. No.	YCPVL/ 7954 /Corpn. Bank/ 2010-11
Name of the Bank	Corporation Bank
Branch	I. C. Colony
Date of Verification	05.03.2011

GENERAL INFORMATION

Name of the Borrower and Address	M/s. Kunder Chemicals Private Limited Office: Kinny’s Corner, I. C. Colony, Borivali (West), Mumbai – 400103, Maharashtra, India
Purpose for which valuation is made	To ascertain Present Market Value of machinery
Date on which valuation is made	25.02.2011
Particulars of the Machinery valued:	Chemical machinery
Location of the Machine	M/s. Kunder Chemicals Private Limited Unit at Plot No. 316A, Phase-Il, GlDç, Vapi - 396195.
Name of the Owner/s of the Machine.	M/s. Kunder Chemicals Private Limited
Brief Description The machinery was inspected by our Engineer - Mr. P. S. Sarpotdar along with Mr. M. Kunder of M/s. Kunder Chemicals private Limited on 25.02.2011 with a view to ascertain the Present Fair Market Value of the Machinery. Company is situated at Vapi GIDC. The company was incorporated as a privately held company in 1991. The Company’s Pigment Plant went into production in 1992. The company manufactures Phthalocyanine Green Pigment and also other Organic and Inorganic Pigments. Phthalocyanine Green Pigment is also known as Pigment Green 7 or Copper Phthalocyanine Green 7. Phthalocyanine Green Pigment Property: —> The Phthalocyanine Green Pigments have excellent all round fastness properties in all type of media. —> Phthalocyanine Green Pigments have high tintorial strength and excellent fastness to solvents, heat, light, weathering and have good dispersion properties. —> Pigment Green 7 is available with international standard with consistent Quality. Grades of Phthalocyanine Green: —> Phthalocyanine green is made through the chemical reaction of the copper phthalocyanine and the halogenating agent (for example chlorine, ozone). Phthalocyanine Pigment Green are commercially available in many shades, the Bright, Very Bluish Green with low chlorine content, Pigment Green 7 type, the bright bluish Green with high chlorine Content and very Bright Yellowish Green. Applications of Phthalocyanine Green: —> Phthalocyanine Pigment Green has high tintorial strength and excellent fastness to solvents, heat, light, and weathering. It has excellent dispersion properties. Due to these characteristics of this pigment, they are widely used in processing of various colors and pigments for example: printing ink, plastics, rubber processing and making of coatings. it is widely used in Paint Industries; Rubber Industries; Plastic Industries; Paper Industries; Leather Industries; Textile Industries; Soaps and Detergent Industries; Ink Industries, etc. Kunder Chemicals production capacity of Pigment is 20MT/ month and emulsion capacity is 10 MT/ month.
Condition of the Machine A Parts B Parts C Parts	The machinery was inspected by the Engineer on 25.02.2011. At the time of inspection, all the machinery was found to be in working conditions.
WDV of the Machine as on the last Balance Sheet Date as per final accounts.	WDV is not available. The party has not provided a copy of Balance sheet and schedule of depreciation. Hence we could not provide WDV of Plant and machinery. The Bank may obtain the same from the party.
Break down hours	Break down hours can not be ascertained.
Whether machinery is in order / out of order?	The Machines are in good working condition
SALES AND MARKETABILITY:
Obtain instances of recent sale of the Machinery of same description size and enquire about the sale price with dealers of the machinery.	Machinery is tailor made and prices depend upon size of equipment, materials of construction, process parameters to be controlled and accessories associated with processing equipment. Machine prices vary with manufacturer marginally. Resale of machinery in a piece meal fashion is not possible since they are part of a looped production cycle.
Market rate / rate adopted?	Sale price basis
If the above information is not available, the basis on which valuation is based.	General Visual observation, material of construction, prevailing prices of equipment and residual life of machinery is considered in arriving at Fair Market Value. The Replacement value and Present Fair Market Value have been rounded off for ease of calculations.
Present Fair Market Valuation	Valuation = Rs.12.410 Millions
Distress Sale Value	Rs.10.000 Millions

------------------------------------------------------------------------------------------------------------------------------

FINANCIAL RESULTS:

Sales for the year ending 31^st March 2010 is Rs.57.944 Millions including direct Export of Rs.24.755 Millions Merchant Exports of Rs.25.070 Millions. Thus the shareholder will please observe that every year direct export share is increasing. Local sale is Rs.8.114 Millions. Share holders will find that there is increase of sale in last couple of years.

FUTURE PLANS:

The company plans to increase the production capacity in the next financial year. Also plans to increase the production Pigment Emulsion as more and more overseas buyers are resorting to emulsion usage.

------------------------------------------------------------------------------------------------------------------------------

FORM 8:

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U24110MH1991PTC061895
Name of the company	KUNDER CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Kinny’s Corner, I C Colony, Boriwali West, Mumbai-400103, Maharashtra, India
Type of charge	Book Debts Movable Property Others: Stock, Plant and Machinery
Particular of charge holder	Syndicate Bank, Paresh Apartments, Mandpeshwar Road, Borivali (West), Mumbai-400092, Maharashtra, India mh.5045mumbrv@syndicatebank.com
Nature of description of the instrument creating or modifying the charge	Composite Hypothecation Agreement Dated 12.10.2007
Date of instrument Creating the charge	12.10.2007
Amount secured by the charge	Rs.1.900 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest The rate of interest at 14.75% p.a. being 1.75% p.a. over and above Bank’s PLR Terms of Repayment Account to be operated briskly and bring it to credit at least once a year and closing it in time by the end of one year. Margin By operation of account upto limit/ drawing power fixed. Extent and Operation of the charge The Bank shall have first charge on the property/ assets secured.
Short particulars of the property charged	Stocks and Book Debts at plot No. 316/A, GIDC, Phase II, Vapi-396195 and all machineries.

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FIXED ASSETS:

· Leasehold Land

· Building

· Computer

· Electrical Installation

· Furniture and Fixture

· Laboratory Equipments

· Machinery

· Office Equipments

· Pollution Control Equipments

· Safely Equipments

· Vehicles

· Weighting Scale

------------------------------------------------------------------------------------------------------------------------------

AS PER WEBSITE

PROFILE:

Subject was incorporated as a privately held company in 1991. The Company’s Pigment Plant went into production in 1992. Soon the first two products – Pigment Green 7 and Pigment Beta Blue received international recognition for quality. In the domestic market its quality became benchmark to the industry beating all the existing National and Multinational Manufacturers. In the International Market its quality compared favourably with all the brand leaders. Soon the Company went into massive expansion and also started manufacturing other Organic and Inorganic Pigments.

Promoters

The Company has been promoted by Mr. M. Kunder who is a double Masters Degree holder. He is also holder of Diploma in Export and Business Management. Early in his life he was a Lecturer in Bombay University. Later, as businessman he promoted Construction Companies, Co-Op Banks and has interest and expertise in Colour Technology. Mr. Kunder has great commitment to Social Causes and Environment Protection.

Technology

Pigment Manufacturing Technology is provided by Dr Prem Pandit, B.Sc.(Chem) B.Sc. (Tech), PhD (Bombay) PhD (Leeds) one of the greatest contemporary Pigment Expert. As a member of UNIDO’s Dyes Panel, He has setup several Dyes and pigment Plants in the Third world Countries. Dr. Pundit expertise continues to guide Production, Quality control, Research and Development. He is ably assisted by qualified Engineers of the company Ajay Kunder, Veenit Kunder , Nishant Kunder and other Chemist andTechnicians.

Environmental Protection

Environment Protection is an article of faith with Kunder Chemicals. When the Company started manufacturing pigments in 1992, chemical industry was not conscious of its responsibility towards protection of Environment to today’s level. But at Kunder Chemicals total pollution control was done form the day one. In fact, when the Company approached Pollution Control and Monitoring Govt. officials with its new ideas on total pollution control, the Authorities were baffled. Efficacy of newly implemented process received all round appreciation.

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.44.65
UK Pound	1	Rs.71.91
Euro	1	Rs.63.28

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.