MIRA INFORM REPORT

Report Date :

06.05.2011

IDENTIFICATION DETAILS

Name :	KEMIN INDUSTRIES SOUTH ASIA PRIVATE LIMITED
Registered Office :	Plot K3, 11^th N Cross, SIPCOT Industrial Complex, Gummidipoondi, Chennai -601201, Tamil Nadu
Country :	India
Financials (as on) :	31.12.2009
Date of Incorporation :	02.06.1998
Com. Reg. No.:	18-040600
Capital Investment / Paid-up Capital :	Rs. 42.080 Millions
CIN No.: [Company Identification No.]	U93090TN1998PTC040600
TAN No.: [Tax Deduction & Collection Account No.]	CHNK00824F CHEK02295G
PAN No.: [Permanent Account No.]	AABCK3316P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Food and Feed Additives.

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 680000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company has been successful in wiping off the losses of the previous year. Trade relations are fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	Plot K3, 11^th N Cross, SIPCOT Industrial Complex, Gummidipoondi, Chennai -601201, Tamil Nadu, India
Tel. No.:	91-44-42202800
Fax No.:	91-44-42202810/ 27923403
E-Mail :	mail.india@kemin.com sree.fcs@gmail.com srinivasan.venkataraman@hdfcbank.com
Website :	http://www.kemin.com
Location :	Owned
Corporate Office :	73, Harrington Road, Chetpet, Chennai – 600 031, Tamilnadu, India
Tel. No.:	91-44-28221644
Factory :	The Trapezium, Second Floor, No. 39, Nelson Manickam Road, Chennai – 600029, Tamilnadu, India
Location :	Owned
Branch Office :	F 181, Anna Nagar, Chennai – 600 102, Tamilnadu, India
Tel. No.:	91-44-26201580
Branch Office :	242, Sidco Industrial Estate, Chennai – 600 098, Tamilnadu, India
Tel No.:	91-44-26254106

DIRECTORS

As on : 28.06.2010

Name :	Mr. Christopher Edward Nelson
Designation :	Director
Address :	2535, Deer Creek,Des Moines, IA Lowa 50323 USA
Date of Birth/Age :	08.01.1954
Date of Appointment :	22.12.1998
Name :	Mr, Roland Wade Nelson
Designation :	Director
Address :	4105, Timber wood drive, West Des Moines, IA Lowa 50323, USA
Date of Birth/Age :	28.02.1927
Date of Appointment :	25.01.1999
Name :	Mr. M.S. Sridhar
Designation :	Alternate Director
Address :	G7, Govardan, 47 Dr. Ranga Road, Mylapore, Chennai – 600004, India
Date of Birth/Age :	05.07.1959
Date of Appointment :	01.11.2006
DIN No :	02287375
Name :	Mr. K P Philip
Designation :	Managing Director
Address :	Kulangara, Pullarikunnu Road, Kollayam, Kerala – 586016, India
Date of Birth/Age :	06.12.1956
Date of Appointment :	04.01.2010
DIN No :	02911945

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 28.06.2010

Names of Shareholders	No. of Shares
Kemin Industries Inc. Moipes	4208084
Kemin Europa N.V., Belgium	10
Total	4208094

As on : 28.06.2010

Category	Percentage
Directors or	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Food and Feed Additives.
Products :	· Glutamine · L-glutamine · Glutamine Powder

PRODUCTION STATUS (AS ON 31.12.2009)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Animal Feed Supplements (Other)	MT	NA	NA	4.651

GENERAL INFORMATION

Bankers :

HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (W), Mumbai – 400013, Maharashtra

Facilities :

Secured Loan	31.12.2009 (Rs. in Millions)	31.12.2008 (Rs. in Millions)
Term Loan	0.000	0.231
Cash Credit Account	14.191	37.334
Hire Purchase Loan	2.923	1.756
Short term borrowing against letter of credit	0.000	29.000
Total	17.114	68.321
Unsecured Loan	31.12.2009 (Rs. in Millions)	31.12.2008 (Rs. in Millions)
Short Term Borrowing	4.417	0.000
Total	4.417	0.000

Banking Relations :	-
Auditors :
Name :	S V Ghatalia and Associates Chartered Accountant
Address :	2^nd Floor, TPL House, No.3, Cenotaph Road, Teynampet, Chennai – 600018, Tamil Nadu, India
Holding Company :	Kemin Industries Inc. USA
Subsidiary Company :	Kemin Industries India Private Limited, India
Related Parties :	· Kemin Indusrtries (Asia) Pte. Limited, Singapore · Kemin Europe N.V., Belgium · Kemin do Brazil Limited, Brazil · Kemin Health LLC · Kemin Agrifoods North America Ins. USA. · Kemin Food Ingredients BVBa, Belgium · Siagra Company Limited · Kemin Food Ingredients NA · Kemin S. De R.I. De. C.V.

CAPITAL STRUCTURE

As on 28.06.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
25200000	Equity Shares	Rs.10/- each	252.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4208094	Equity Shares	Rs.10/- each	42.080 Millions

Note : Out of the above 4208084 equity shares are held by Kemin Industries Inc. U.S.A. the holding Company.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2009	31.12.2008	31.12.2007
SHAREHOLDERS FUNDS
1] Share Capital		42.080	21.332	21.332
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		128.512	90.266	109.992
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		170.592	111.598	131.324
LOAN FUNDS
1] Secured Loans		17.114	68.321	13.681
2] Unsecured Loans		4.417	0.000	0.000
TOTAL BORROWING		21.531	68.321	13.681
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		192.123	179.919	145.005
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		57.457	58.252	58.331
Capital work-in-progress		63.924	12.114	3.438
INVESTMENT		0.094	0.094	0.194
DEFERREX TAX ASSETS		24.637	8.709	6.398
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.428	95.593	39.950
	Sundry Debtors	134.693	127.300	117.868
	Cash & Bank Balances	5.379	2.848	5.052
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	25.057	26.758	29.712
Total Current Assets		210.557	252.499	192.582
Less : CURRENT LIABILITIES & PROVISIONS
	Other Current Liabilities	152.523	150.839	114.810
	Provisions	12.023	0.910	1.128
Total Current Liabilities		164.546	151.749	115.938
Net Current Assets		46.011	100.750	76.644
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		192.123	179.919	145.005

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2009	31.12.2008	31.12.2007
	SALES
		Income	569.615	377.642	NA
		Other Income	63.980	55.596
		TOTAL (A)	633.595	433.238	NA
Less	EXPENSES
		Raw material consumed	29.743
		Purchase of trading goods	254.364
		Decrease as Inventories of work in progress and finished goods	0.082	305.587	NA
		Employees Cost	120.215
		Operating and other expenses	147.775
		Provision for value in investments	0.000
		Other Expenditures	152.622
		TOTAL (B)	704.801	305.587	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(71.206)	127.651	49.667
Less	FINANCIAL EXPENSES (D)		147.775	129.457	5.359
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		76.569	(1.806)	44.308
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.141	12.552	13.675
	PROFIT BEFORE TAX (E-F) (G)		62.428	(14.358)	30.633
Less	TAX (I)		27.182	5.369	10.630
	PROFIT AFTER TAX (G-I) (J)		35.246	(19.727)	20.003
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		70.266	89.992	69.990
	BALANCE CARRIED TO THE B/S		105.512	70.266	89.226
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	81.066	58.790	NA
	TOTAL EARNINGS		81.066	58.790	NA
	IMPORTS
		Raw Materials	67.587	130.167	NA
	TOTAL IMPORTS		67.587	130.167	NA
	Earnings Per Share (Rs.)		11.51	(9.25)	--

KEY RATIOS

PARTICULARS		31.12.2009	31.12.2008	31.12.2007
PAT / Total Income	(%)	5.56	(4.55)	--
Net Profit Margin (PBT/Sales)	(%)	10.95	(3.80)	--
Return on Total Assets (PBT/Total Assets}	(%)	23.29	(6.83)	12.20
Return on Investment (ROI) (PBT/Networth)		0.36	(0.12)	0.23
Debt Equity Ratio (Total Liability/Networth)		1.09	1.97	0.98
Current Ratio (Current Asset/Current Liability)		1.27	1.66	1.66

LOCAL AGENCY FURTHER INFORMATION

History

Subject was incorporated on 7^th October, 1996 at Chennai in Tamilnadu having Company Registration Number 40600.

In the year 1990, the company entered into the Indian subcontinent through distributors. Later in 1997, realizing the need for providing more focus and customized services, a full-fledged manufacturing facility was set up in Gummidipoondi near Chennai on the south-eastern coast of India.

Operations :

The Board of Directors expresses their satisfaction over the excellent performance of the company during the year to achieve the highest sales till date making a turn around from the previous performance.

The directors appreciate the entire team for contributing to the overall performance of the company.

Form 8

Name of the company

KEMIN INDUSTRIES SOUTH ASIA PRIVATE LIMITED

Presented By

Mr. G. Anantharam – Director (Finance and Administration)

1) Date and description of instrument creating the change

1. Letter of hypothecation of stock and book debts.

2. Memorandum relating to hypothecation of machinery both documents dated 24^th day of July 2004

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 43.500 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

On Pari passu first charge on all the stock in trade both present and future consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise whatsoever being movable properties now or at any time hereafter belonging to us or at the disposal and now or at any time and from time to time hereafter stored or to be stored or brought into or upon or in course of transit to the factory or premises or at any other place whatsoever and wheresoever in the possession or occupation or at any other premises or place and all book debts, outstandings monies receivables, claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security becomes due and owing to the borrower in the course of its business by any person, firm, company or body corporate or by the Government department or office or any municipal or local or public or semi government body or authority or any body corporate of undertaking or project whatever in the public sector.

On Pari Passu first charge on all the movable plant and machinery both present and future consisting of being movable properties now stored at or being stored or which may hereafter be brought into or stored at or at present installed at K3, 11^th Cross Street, SIPCOT Industrial Complex, Gummidipoondi and also the Plant and Machinery which may at any time hereafter belonging to me/us or at the disposal and now or at any time and from time to time hereafter stored or to be stored or brought into or upon or in course of transit or awaiting transit by any mode of transport to the factory or premises or at any other place whatsoever and wheresoever in the possession of occupation or at any other premises or place.

4) Gist of the terms and conditions and extent and operation of the charge.

Facility	Limit (Rs. in millions)
Cash Credit / WXDL / Export Pre and Post Shipment Credit	20.000
Letter of Credit / BG	5.000
Intra day / ST CMS	18.500
Total	43.500

Rate of Interest:

Any such rates as may be advised to the company from time to time for the respective facilities.

Margin of Security:

25% on stock and book debts

10% on export order on EPC

15% on LC / Bank Guarantees.

5) Name and Address and description of the person entitled to the charge.

HDFC Bank Limited

Mariam Centre, 1^st Floor, 751 – B, Anna Salai, Chennai – 600 002, Tamilnadu, India

6) Date and brief description of instrument modifying the charge

1. Memorandum relating to hypothecation of machinery dated 29.06.2005

2. No Instrument. Mortgage by deposit of title deeds dated 23.07.2008 was made by Kemin Nutritional Technologies India Private Limited (Borrower) in favour of HDFC Bank Limited (Bank) copy of memorandum of entry dated 23.07.2005 enclosed.

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 loan and limits granted to the company stands enhanced given below:

Facility	Existing (Rs. in millions)	Revised (Rs. in millions)
Cash credit/WCDL/Export credit and bill discounting	30.000	10.000
Letter of credit /BG	10.000	10.000
Pre settlement risk	4.750	4.750
Intra day / ST CMS	5.000	5.000
Term loan	11.000	44.600
Total	60.750	74.350

Security

1. Hypothecation of company entire stocks of finished goods, consumable stores ands spares, book debts and other current assets of the company and hypothecation of machinery to be acquired out of fresh term loan of Rs. 33.600 millions.

2. First charge on fixed assets of the company (Plant and Machinery, Office Equipments and land and building situated at K – 3, 11^th cross street, SIPCOT Industrial Complex, Gummidipoondi – 601 201

3. Equitable mortgage of property situated at Plot No. K – 3, in the SIP Cot’s Industrial Complex at Pappankuppam within the village limits of Gummidipoondi Taluk of Gummidipoondi sub- registrationdistrict of Tiruvallur in revenue district containing by admeasurement 5.00 acres or about bearing survey Nos. 256 and 257 part and bounded

North : By storm water drain

South: By Plot No. K-2

East: By Plot No. K-4

West: By 18.00 M Road

Rate of Interest:

Any such rates as may be advised to the company from time to time for the respective facilities.

Margin of Security:

As may be advised to the company from time to time for the respective facilities.

Form 8

Corporate identity number of the company	U93090TN1998PTC040600
Name of the company	KEMIN INDUSTRIES SOUTH ASIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot K 3 11^th Cross Street, Sipcot industrial Complex Gummidipundi - 601201 Tamilnadu Gummidipundi – 601201, India 601201
This form is for	Creation of charge
Type of charge	Movable property (not being pledge) Floating charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Nature of instrument creating charge	Memorandum relating to Hypothecation of Machinery dated 16th September, 2010.
Date of instrument Creating the charge	16/09/2010
Amount secured by the charge	Rs. 80.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Any such rate as may be advised to the Company from time to time in respect of the credit facilities. Terms of repayment Term Loan of Rs.80.000 millions - Repayable as per sanction terms. Margin As may be prescribed by the Bank from time to time for the credit facilities. Extent and operation of the charge Hypothecation by way of Exclusive Charge on all the movable Plant and Machinery of the Company both present and future. Other Nil

FIXED ASSETS :

· Leasehold Land

· Buildings

· Plant and Machinery

· Liquid Applicator Systems

· Laboratory Equipments

· Office Equipments

· Computers

· Furniture and Fixtures

· Leasehold Improvements

· Vehicles

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. 44.57
UK Pound	1	Rs. 73.58
Euro	1	Rs. 66.23

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--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	No
TOTAL		48

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

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.