MIRA INFORM REPORT

Report Date :

13.05.2011

IDENTIFICATION DETAILS

Name :	KAUSAR INDIA LIMITED
Registered Office :	AG-50, Sanjay Gandhi Transport Nagar, G.T. Karnal Road, New Delhi – 110042, Delhi
Country :	India
Financials (as on) :	30.06.2010
Date of Incorporation :	11.07.1984
Com. Reg. No.:	55-107680
Capital Investment / Paid-up Capital :	Rs.37.068 Millions
CIN No.: [Company Identification No.]	U74899DL1984PLC107680
TAN No.: [Tax Deduction & Collection Account No.]	DELK01891B DELK05578G
PAN No.: [Permanent Account No.]	AAACK5492P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Provider of transportation services of temperature sensitive commodities.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B [26]

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 7800
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a subsidiary of Gati Limited, India. It is established company having moderate track. Profitability of the company is under severe pressure. There appears huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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 :	AG-50, Sanjay Gandhi Transport Nagar, G.T. Karnal Road, New Delhi – 110042, Delhi, India
E-Mail :	Kausar@nda.vsnl.net.in

DIRECTORS

As on 12.10.2010

Name :	Mr. Bijoy Kumar Pansari
Designation :	Director
Address :	151, Sea Lord – B, 117, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	06.01.1949
Date of Appointment :	22.01.2008
DIN :	00160146
Name :	Mr. Mahendra Kumar Agarwal
Designation :	Director
Address :	Plot No.33, Balamrai CHS., Secunderabad – 500026, Andhra Pradesh
Date of Birth/Age :	13.03.1954
Date of Appointment :	22.01.2008
DIN :	00179779
Name :	Mr. Sanwar Mal Jalan
Designation :	Director
Address :	12-134, Persepolis Building, Capt Prakash Pethe Marg, Colaba, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	24.10.1945
Date of Appointment :	22.01.2008
DIN :	00324182
Name :	Mr. Nagesh Kumar Madanlal Goenka
Designation :	Director
Address :	S-15/5, DLF Phase III, Gurgaon 122002, Haryana
Date of Birth/Age :	28.10.1954
Date of Appointment :	22.01.2008
DIN :	01121865
Name :	Mr. Sameer Khatri
Designation :	Director
Address :	Y-46, 4 Shatoot Marg, DLF Phase I, Gurgaon 122002, Haryana
Date of Birth/Age :	08.12.1969
Date of Appointment :	30.04.2009
DIN :	02615343

KEY EXECUTIVES

Name :	Mr. Syed Hasan Haris
Designation :	Secreatry
Address :	18/252, Dakshin Puri, New Delhi – 110062, Delhi, India
Date of Birth/Age :	31.12.1967
Date of Appointment :	16.01.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 12.10.2010

Names of Shareholders	No. of Shares
Jatinder Paul	500
Harpal Singh	500
Harkaran Singh	500
Brij Pal Saini	500
Ramesh Makar	500
MOtia Rani	500
Meenakshi maker	500
Rakesh Chander	500
Krishna bansal	500
Anil kumar jain	500
Naveen Kumar	500
M.L. Sharma	500
Gaurmeet Singh	500
Jagjeet Singh Teja	1000
A.A. Khan	500
MD Shamin	500
Rukmendra Rao N	500
Gati Limited, Secunderabad	3697800
Total	3706800

As on 12.10.2010

Category	Percentage
Bodies corporate	99.76
Others	0.24
Total	100.00

BUSINESS DETAILS

Line of Business :

Provider of transportation services of temperature sensitive commodities.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• ICICI Bank Limited
• HDFC Bank Limited
• State Bank of India

Facilities :

Secured Loan [Rs.in million]	30.06.2010	30.06.2009
HDFC bank Overdraft [secured against hypothecation of vehicles]	17.504	18.111
Term loan secured against hypothecation of respective vehicles
GE Capital Limited	8.459	23.252
ICICI Bank Limited	7.805	19.356
HDFC bank Limited	11.188	9.727
CITI Corp Finance	4.746	11.482
Total	49.702	81.928
Unsecured Loan [Rs.in million]	30.06.2010	30.06.2009
Gati Limited Loan From Holding Company [Fleet Loan]	8.185	0.000
Gati Limited Loan From Holding Company [Others]	74.431	43.681
Total	82.616	43.681

Banking Relations :	--
Financial Institutions :	Tata Motors Finance Limited, C/O Tata Motors Limited, 3^rd Floor, Nanavati Mahalaya, 18, Homi Mody Street, Mumbai – 400001, Maharashtra, India
Auditors :
Name :	S.S. Kothari and Company Chartered Accountant
Address :	415/416, Model House, Punjagutta, Hyderabad – 500082, Andhra Pradesh, India
Tel. No.:	91-40-23354597
Mobile No.:	91-9894071854
Holding Company :	Gati Limited, India CIN : L63011AP1995PLC020121
Subsidiary Company :	Itag Business Solutions Limited

CAPITAL STRUCTURE

As on 30.06.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5,500,000	Equity Shares	Rs.10/-each	Rs.55.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,706,800	Equity Shares	Rs.10/-each	Rs.37.068 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars		30.06.2010	30.06.2009	30.06.2008
SHAREHOLDERS FUNDS
1] Share Capital		37.068	37.068	37.068
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	11.134
4] (Accumulated Losses)		(35.105)	(1.365)	0.000
NETWORTH		1.963	35.703	48.202
LOAN FUNDS
1] Secured Loans		49.702	81.928	102.894
2] Unsecured Loans		82.616	43.681	3.907
TOTAL BORROWING		132.318	125.609	106.801
DEFERRED TAX LIABILITIES		10.982	0.000	0.000
TOTAL		145.263	161.312	155.003
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		97.369	116.004	147.888
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.010	0.010	0.010
DEFERREX TAX ASSETS		0.000	7.487	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.526	1.173	0.348
	Sundry Debtors	36.185	31.499	25.959
	Cash & Bank Balances	0.139	0.163	0.582
	Other Current Assets	3.115	3.036	1.477
	Loans & Advances	16.356	15.449	14.872
Total Current Assets		58.321	51.320	43.238
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.162	13.143	34.982
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.275	0.366	1.151
Total Current Liabilities		10.437	13.509	36.133
Net Current Assets		47.884	37.811	7.105
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		145.263	161.312	155.003

PROFIT & LOSS ACCOUNT

	Particulars		30.06.2010	30.06.2009	30.06.2008
	SALES
		Fleet Operation and Other Income	233.006	195.055	217.701
		TOTAL (A)	233.006	195.055	217.701
Less	EXPENSES
		Fleet Running Expenses	188.113	155.980	169.251
		Personnel Expenses	8.613	5.254	0.000
		Administrative and other Expenses	8.246	10.117	14.071
		TOTAL (B)	204.972	171.351	183.322
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		28.034	23.704	34.379
Less	FINANCIAL EXPENSES (D)		12.243	11.099	15.027
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.791	12.605	19.352
Less/ Add	DEPRECIATION/ AMORTISATION (F)		31.088	31.431	38.155
	PROFIT BEFORE TAX (E-F) (G)		(15.297)	(18.826)	(18.803)
Less	TAX (I)		18.470	(6.791)	0.140
	PROFIT AFTER TAX (G-I) (J)		(33.767)	(12.035)	(18.943)
Add	Prior period adjustment		0.027	(0.464)	23.201
Add	Deferred Tax		0.000	0.000	3.181
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1.365)	11.134	3.695
	BALANCE CARRIED TO THE B/S		(35.105)	(1.365)	11.134
	IMPORTS		5.859	NA	NA
	Earnings Per Share (Rs.)		9.10	5.10	--

KEY RATIOS

PARTICULARS		30.06.2010	30.06.2009	30.06.2008
PAT / Total Income	(%)	[14.49]	[6.17]	[8.70]
Net Profit Margin (PBT/Sales)	(%)	[6.56]	[9.65]	[8.64]
Return on Total Assets (PBT/Total Assets}	(%)	[9.82]	[11.25]	[9.84]
Return on Investment (ROI) (PBT/Networth)		[7.79]	[0.53]	[0.39]
Debt Equity Ratio (Total Liability/Networth)		72.72	3.90	2.96
Current Ratio (Current Asset/Current Liability)		5.59	3.80	1.20

LOCAL AGENCY FURTHER INFORMATION

Note : Registered office address of the company has been shifted from 97, Anandlok, New Delhi – 110049, Delhi, India to the present address w.e.f. 22.01.2008

Bankers Charges Report as per Registry

Corporate identity number of the company	U74899DL1984PLC107680
Name of the company	KAUSAR INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	AG-50, Sanjay Gandhi Transport Nagar, G.T. Karnal Road, New Delhi – 110042, Delhi, INDIA.
This form is for	Creation of Charge
Type of charge	Movable Property
Particular of charge holder	Tata Motors Finance Limited, C/O Tata Motors Limited, 3^rd Floor, Nanavati Mahalaya, 18, Homi Mody Street, Mumbai – 400001, Maharashtra, India
Nature of instrument creating charge	Loan Cum Hypothecation Cum Guarantee Agreement. Agreement No.55000649984 Dated 20.01.2011 Of Rs. 1.030 million
Date of instrument Creating the charge	20.01.2011
Amount secured by the charge	Rs.1.030 million
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - Interest @ 10.25% p.a. Terms of Repayment - The loan is repayable in 47 EMI of Rs. 0.027 million Starting from 15.03.2011 upto 15.01.2015 Margin - As may stipulated by bank from time to time. Extent and Operation of the charge - The Company hypothecates to and charges in favour of the Bank by way of first and exclusive charge of the Vehicle/ equipment described in Item No. 15 as security for the repayment/payment by the company of the loan granted or to be granted to the company by the Bank together with all fees, interest, costs and expenses incurred/to be incurred by the Bank and all other monies payable or to become payable by the company to the Bank. Others - The Bank shall be absolutely entitled and have full power and authority to sell, assign or transfer in any manner, in whole or in part, and in such manner and on such terms as the Bank may decide, including reserving a right to the Bank to retain its power to proceed against the company on behalf of the purchaser, assignee or transferee, any or all outstanding dues of the company, to any third party of the Bank's choice without reference to or without written intimation to the company
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation Of 1 No Of Vehicle Namely : Tata 1616 (Year Of Manufacture - 2010)

FIXED ASSETS :

• Fleet
• Furniture and Fixtures
• Computer
• Office Equipments
• 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.44.79
UK Pound	1	Rs.73.19
Euro	1	Rs.63.59

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	-
--CREDIT LINES	1~10	2
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.