MIRA INFORM REPORT

Report Date :

04.05.2011

Note : The Correct Name of the company is KHAMBETE KOTHARI CANS AND ALLIED PRODUCTS PRIVATE LIMITED.

IDENTIFICATION DETAILS

Name :	KHAMBETE KOTHARI CANS AND ALLIED PRODUCTS PRIVATE LIMITED
Registered Office :	B – 5, MIDC Area, Ajanta Road, Jalgaon – 425003, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.03.1975
Com. Reg. No.:	11-18201
CIN No.: [Company Identification No.]	U20100MH1975PTC018201
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of milk cans, Aluminum and stainless steel cans. Bulk milk coolers, DCS accessories.

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 91000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears some losses being incurred by the company in the current year. 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 dealing 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.

INFORMATION PARTED BY

Name :	Mr. Rushikesh Jadhav
Designation :	Accounts Manager
Contact No.:	91-257-2210750
Date :	03.05.2011

LOCATIONS

Registered Office/Factory/ Warehouse :	B – 5, MIDC Area, Ajanta Road, Jalgaon – 425003, Maharashtra, India
Tel. No.:	91-257-2210750/ 2211210/ 2211700
Fax No.:	91-257-2210950
E-Mail :	info@kkcans.net anurag02_mathur@rediffmail.com
Website :	www.kkcans.com
Area :	5000 sq. ft. (Approximately)
Location :	Owned

DIRECTORS

As On 30.09.2010

Name :	Mr. Adarsh R. Kothari
Designation :	Director
Address :	53, Visanji Nagar, Jilha Peth, Jalgaon – 425001, India
Date of Birth/Age :	01.05.1928
Date of Appointment :	01.07.1997
Name :	Mr. Prashant D. Kothari
Designation :	Director
Address :	53, Visanji Nagar, Jilha Peth, Jalgaon – 425001, India
Date of Appointment :	15.05.2002
Name :	Mr. Rajnikant J. Kothari
Designation :	Director
Address :	53, Visanji Nagar, Jilha Peth, Jalgaon – 425001, India
Date of Birth/Age :	14.09.1942
Date of Appointment :	12.03.1975
Name :	Mr. Amit R. Kothari
Designation :	Director
Address :	53, Visanji Nagar, Jilha Peth, Jalgaon – 425001, India
Date of Birth/Age :	15.05.1969
Date of Appointment :	01.01.1993

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Rajnikant Jayantilal Kothari	3272
Ramilaben Rajnikant Kothari	2446
Santaben Jaicnadbhai Kothari	1322
Varshaben D. Kothari	595
Rightex Pharmacuticals Private Limited, Maharashtra	10
Amitkumar R. Kothari	2592
Adarsh Rajnikant Kothari	2562
Prashant Deelipkumar Kothari	400
Deepa P. Kothari	75
Sonal Amit Kothari	250
Rupali Adarsh Kothari	250
Total	13774

As On 30.09.2010

Category	Percentage
Bodies corporate	0.07
Directors or relatives of directors	99.93
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of milk cans, Aluminum and stainless steel cans. Bulk milk coolers, DCS accessories.
Exports :
Products :	Aluminum Milk Cans and Stainless Steel Cans
Countries :	Thailand European Countries
Terms :
Selling :	Cash and Credit (30 / 60 / 90 days)
Purchasing :	Cash and Credit (30 / 60 / 90 days)

PRODUCTION STATUS : 31.03.2010

Particulars	31.03.2010
Licensed Capacity	N.A.
Installed Capacity Cans with Lids (As certified by the management)	150000

GENERAL INFORMATION

Customers :

· Wholesalers

· End Users

· OEM’s

No. of Employees :

250 (Approximately)

Bankers :

· State Bank of India

Jalgaon MIDC Area Branch, Plot No. P 7/2, Ajantha Road, Jalgaon – 425003, Maharashtra, India

Facilities :

Particulars (Rs. In Millions)	31.03.2010	31.03.2009
Secured Loans SBI EPC	1.941	1.710
SBI C/C	0.122	5.018
SBI Swift Car (In the name of Directors) (Secured against hypothecation of vehicles and personnel guarantee of directors	0.192	0.384
Total	2.257	7.113
Particulars (Rs. In Millions)	31.03.2010	31.03.2009
Unsecured Loans Int Free Loan SIMCO	0.087	0.113
Director / Shareholders	43.380	39.110
Total	43.467	39.223

Banking Relations :	--
Auditors :
Name :	N. S. Doshi and Company Chartered Accountant
Address :	Sharda Near G. S. Highschool Ground, 18, Visanji Nagar, Jalgaon – 425001, Maharashtra, India
Tel No.:	91-257-2225461/ 2226759
Associates/Subsidiaries :	· Kothari Milk Plan Technologies Private Limited Address : B – 5, MIDC Area, Ajanta Road, Jalgaon – 425003, Maharashtra, India · Associated Dairyfab Private Limited Address : B – 5, MIDC Area, Ajanta Road, Jalgaon – 425003, Maharashtra, India Line of Business : Trader of Bulk milk collars

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
22000	Equity Shares	Rs.100/- each	Rs.2.200 Millions
3000	Preference Shares	Rs.100/- each	Rs.0.300 Million
	Total		Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13774	Equity Shares	Rs.100/- each	Rs.1.377 Million

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		1.377	1.377	1.377
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		21.462	23.589	23.862
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		22.839	24.966	25.239
LOAN FUNDS
1] Secured Loans		2.257	7.113	7.545
2] Unsecured Loans		43.467	39.223	45.609
TOTAL BORROWING		45.724	46.336	53.154
DEFERRED TAX LIABILITIES		1.288	2.072	1.462
TOTAL		69.851	73.374	79.855
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.792	10.947	11.496
Capital work-in-progress		0.882	0.000	0.000
INVESTMENT		0.161	0.127	0.126
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	67.553	55.540	65.030
	Sundry Debtors	28.833	44.429	36.915
	Cash & Bank Balances	2.615	2.177	3.731
	Other Current Assets	6.122	6.004	4.665
	Loans & Advances	2.778	59.477	7.115
Total Current Assets		107.901	167.627	117.456
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	21.063	101.524	45.011
	Provisions	27.823	3.803	4.212
Total Current Liabilities		48.886	105.327	49.223
Net Current Assets		59.015	62.300	68.233
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		69.851	73.374	79.855

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	115.054	222.804	161.780
		Other Income	4.356	1.603	2.106
		TOTAL	119.410	224.407	163.886
Less	EXPENSES		119.410	220.265	159.382
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.000	0.000	0.000
Less/ Add	DEPRECIATION/ AMORTISATION		1.769	2.038	1.760
	PROFIT BEFORE TAX		(1.769)	2.104	2.744
Less	TAX		0.448	1.571	2.011
	PROFIT AFTER TAX		(1.321)	0.533	0.733
Less	APPROPRIATIONS
		Transfer to General Reserve	0.500	0.500	0.700
		Dividend	0.688	0.688	0.688
		Tax on Dividend	0.117	0.117	0.117
	BALANCE CARRIED TO THE B/S		14.160	16.787	17.560
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	N.A.	26.533	13.744
	TOTAL EARNINGS		N.A.	26.533	13.744
	Earnings Per Share (Rs.)		(95.90)	38.70	NA

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2011	31.03.2010	31.03.2009
Sales Turnover (Approximately)	200.000	110.000	220.000

Expected Sales (2011-2012) : Rs. 300.000 millions

The above information has been parted by Mr. Rushikesh Jadhav.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(1.10)	0.24	0.45
Net Profit Margin (PBT/Sales)	(%)	(1.53)	0.94	1.70
Return on Total Assets (PBT/Total Assets)	(%)	(1.50)	1.18	2.13
Return on Investment (ROI) (PBT/Net worth)		(0.07)	0.08	0.11
Debt Equity Ratio (Total Liability/Net worth)		4.14	6.07	4.06
Current Ratio (Current Asset/Current Liability)		2.20	1.59	2.39

LOCAL AGENCY FURTHER INFORMATION

NOTE :

Details of Sundry Creditors are not available.

PERFORMANCE :

During the year company has again face the strike for 3 months couple with increase in input cost and compared to sales value and overall recession in the economy the turnover of the company has incurred has reduced to Rs. 115.100 millions as compared to earlier year turnover of Rs. 222.800 millions with has adversely affected the profitability of the company. The directors are hopeful to recover out of recession and increase in the turnover.

FORM 8 :

Corporate identity number of the company	U20100MH1975PTC018201
Name of the company	KHAMBETE KOTHARI CANS AND ALLIED PRODUCTS
Address of the registered office or of the principal place of business in India of the company	B – 5, MIDC Area, Ajanta Road, Jalgaon – 425003, Maharashtra, India
This form is for	Modification of Charge
Type of charge	Book Debts Movable Property
Particular of charge holder	State Bank of India Jalgaon MIDC Area Branch, Plot No. P 7/2, Ajantha Road, Jalgaon – 425003, Maharashtra, India sbi.06336@sbi.co.in
Nature of instrument creating charge	Supplemental Agreement of Loan-cum-Hypothecation
Date of instrument Creating the charge	10.04.2008
Amount secured by the charge	Rs.39.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Working Capital – 1% above SBAR (SBAR = 12.25) i.e. 13.25% presently. Terms of Repayment: 12 Months Margin: Stock – 30% Book debts – 30% Bank Guarantee – 10% Letter of Credit – 10% Extent and Operation of the charge: Stocks and Book debts of the company
Particulars of the property charged	Stocks and Book debts of the company
Particulars of the present modification	The Limit has been enhanced from Rs.24.000 Millions to Rs.39.000 Millions

Fixed Assets:

· Land

· Building

· Machinery

· Electrical Installations

· Tools and Dies

· Vehicle

· Office Equipment

· Fixture

· Motor car

· Furniture

· Water Tank

· Computer

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. 44.34
UK Pound	1	Rs. 73.69
Euro	1	Rs. 65.75

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
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	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		47

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.