MIRA INFORM REPORT

Report Date :

25.05.2011

IDENTIFICATION DETAILS

Name :	KORES (INDIA) LIMITED
Registered Office :	Kores House, Plot No. 10, Off Dr. E. Moses Road, Worli, Mumbai - 400 018, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.05.1936
Com. Reg. No.:	11-002494
Capital Investment / Paid-up Capital :	Rs. 75.000 Millions
CIN No.: [Company Identification No.]	U21198MH1936PLC002494
TAN No.: [Tax Deduction & Collection Account No.]	MUMK12588C / MUMK12076B / MUMK11758F
PAN No.: [Permanent Account No.]	AAACK5069Q
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturing and Trading in Carbon Paper, Stencils, Ribbons, Cloth, Yarn, Inks, Barium Carbonate/Granules, Sodium Sulphide, Photocopiers, Rock Roller Bits, Teleprinter and other M/c. Rolls, Duplicating papers, Drilling equipments, Cheque Encoders, PPO-2-5 Diphenyl Oxazole, Castings, Resistors, Theophlline, Caffeine, Victoria Blue and Etophylline.
No. of Employees :	2000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 3590000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. 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 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.

INFORMATION DECLINED BY

Name :	Mr. Biyani
Designation :	Accounts Manager
Contact No.:	91-22-40974493
Date :	23.05.2011

LOCATIONS

Registered Office :

Kores House, Plot No. 10, Off Dr. E. Moses Road, Worli, Mumbai 400 018, Maharashtra, India

Tel. No.:

91-22-4097 4444

Fax No.:

91-22-4097 4440

E-Mail :

info@kores-india.com

legal@kores-india.com

response@kores-india.com

Website :

http://www.kores-india.com

Area :

Leased

Corporate Office :

Pharmaceuticals and Chemical Division C – 7/ 1 – B, TTC Industrial Area, MIDC, Pawane, Navi Mumbai – 400 705, Maharashtra, India.

Tel. No.:

91-22-24946555

Fax No.:

91-22-24950401

Factory :

Business and Computer systems Division

Mumbai

Bldg. No. K-11, New Arihant Compund, Village - koper, Taluka - Bhiwandi
Dist. Thane, Maharasahtra, India

Chakan (Foundry Division)

Chakan Talegoan Road, Gat no. 109, Chakan Talegoan Road, Chakan – 410 501 Dist.: Pune, Chakan, Maharasahtra, India

Pithampur (Engineering Division)

Plot No. 6, Area No.1, Pithampur, Dist. Dhar, M.P. 454775, Pithampur

Thane:

1^st Pokharan Road, Thane (West) – 400 606, Maharashtra, India [Area : Owned]

Indore:

Plot No. 6, Industrial Area No.1, Pithampur, Indore – 452 001, Madhya Pradesh, India

Wankaner: (Textile Division)

Shri Amarsinhji Mills, Post Bag No.3, Wankaner – 363 621, Gujarat, India [Area : Owned]

Pune:

Plant No. I:

E-14, 15 and 16, Bhosari Industrial Area, Pune – 411 026, Maharashtra, India

Tel. No.: 91 20 7120741 / 7120511

Fax No.: 91 20 7120014

Area : Owned

Plant No. II:

Gat No. 149, Chakan, Talegaon Road, Chakan, Dist. Pune – 410 501, Maharashtra, India

Area : Owned

Roha:

Plot No. 59A, 65B, 65C and 66A, MIDC, Industrial Area, Dhatav, Roha, Dist. Raigad, Maharashtra, India

Area : Owned

Rudrapur (Uttranchal):

Plot No. 15, Sector 211 E, Panthnagar, Rudrapur – 263154, Uttranchal

Area : Owned

Zonal and Branch Offices:

Located at :

Allahabad Amritsar Aurangabad Bangalore Bareily Baroda Belgaum Bhagalpur Bhavnagar Bhopal Bhubaneshwar Bilwara Calicut Chakan Chandigarh Chennai Coimbatore Cuttack Dehradun Delhi Dhanbad Ernakulam Erode Fort

Agartala Ahmedabad Akola Goa Guntur Guwahati Gwalior Hubli Hyderabad Indore Jabalpur Jaipur Jallandhar Jammu Jamnagar Jamshedpur Jodhpur Kanpur Kolhapur Kolkata Kottayam Lucknow Madurai Mangalore Wankaner

Mumbai Mysore Nagpur Nanded Nashik New Delhi Patna Pithampur Poducherry Pune Raipur Rajkot Ranch Roha Rudrapur Salem Solapur Surat Tirunelveli Tirupathy Tirupur Trichur Trichy Trivandrum Udaipur Varanasi Vikhroli Visakhapatnam Vizag

DIRECTORS

As on 25.08.2010

Name :	Mr. Sushil Kumar Thirani
Designation :	Chairman and Whole Time Director
Address :	Flat no. 7, A wing, Sea Face Apartment, 50, Bhulabhai Desai Road, Mumbai-400026, Maharasahtra, India
Date of Birth/Age :	20.10.1930
Qualification :	Inter Science
Date of Appointment :	30.11.1956
DIN No.:	00082283
Name :	Mr. Anand Kumar Thirani
Designation :	Managing Director
Address :	Flat No. 19 and 20, Firpose Co-operative Society Limited, 47A-Bhulabhai Desai Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	03.09.1956
Qualification :	B. Com.
Date of Appointment :	29.05.1981
DIN No.:	00082344
Name :	Mr. Raj Kumar Saboo
Designation :	Whole Time Director
Address :	Flat No. 1902, C wing, Gundecha Garden, Lal Baug, Mumbai-400012, Maharashtra, India
Date of Birth/Age :	19.12.1964
Date of Appointment :	01.04.2005
DIN No.:	00053600
Name :	Mr. Karunakar Govinda Menon
Designation :	Director
Address :	6B, Kannarkat, Condomimimus, T.O.C.H. School Road, Vyttilla, Ernakulam-682019, India
Date of Birth/Age :	08.03.1930
Qualification :	B. Sc., (Tech.), A.M.I.I. Chem. E., A.M.I. Indus. E. (Ind.)
Experience :	54 Years
Date of Appointment :	01.04.1998
DIN No.:	00086420
Name :	Mr. Jagdish Prasad Gupta
Designation :	Director
Address :	Flat No. 104, Azalea Apartments, Naber, Pune-411045, Maharashtra, India
Date of Birth/Age :	15.10.1935
Date of Appointment :	20.11.1997
DIN No.:	00053681
Name :	Mr. Satish Kantilal Patel
Designation :	Director
Address :	604, Sibylle Apartments, 65, Worlihill Estate, Worli, Mumbai-400018, Maharashtra, India
Date of Birth/Age :	16.05.1936
Date of Appointment :	26.08.2004
DIN No.:	00081904
Name :	Mr. Sameer Ashok Mehta
Designation :	Director
Address :	702, Sukh Sagar Building, Sir Bhalchandra Road, Matunga, Mumbai – 400019, Maharasahtra, India
Date of Birth/Age :	29.11.1976
Date of Appointment :	02.03.2010
DIN No.:	02945481

KEY EXECUTIVES

Name :	Mr. Sunil Agarwal
Designation :	Company Secretary
Address :	402, Amba Ashish building, Carter Road 3, Borivali – East, Mumbai-400066, Maharashtra, India
Date of Birth/Age :	22.03.1977
Date of Appointment :	01.01.2009
PAN.:	AHJPA2614E

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.08.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	0.01
Bodies corporate	39.54
Directors or relatives of Directors	51.68
Other top fifty shareholders	0.52
Others	8.25
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Trading in Carbon Paper, Stencils, Ribbons, Cloth, Yarn, Inks, Barium Carbonate/Granules, Sodium Sulphide, Photocopiers, Rock Roller Bits, Teleprinter and other M/c. Rolls, Duplicating papers, Drilling equipments, Cheque Encoders, PPO-2-5 Diphenyl Oxazole, Castings, Resistors, Theophlline, Caffeine, Victoria Blue and Etophylline.

Products :

Products	ITC Code No.
Ink Cartridge	07.06
Other Cast Articles of Iron and Steel	73.25
Carbon Paper	48.16

GENERAL INFORMATION

No. of Employees :

2000 (Approximately)

Bankers :

· Central Bank of India, Corporate Finance Branch, 1^st Floor, MMO Building, M.G. Road, Mumbai – 400023, Maharasahtra, India

· Bank of Baroda, Bhadra Branch, Ahmedabad, Gujarat

· Dena Bank

· State Bank of Indore

· State Bank of India

· ICICI Bank

· Kotak Mahindra Bank

· Indusind Bank

Facilities :

Secured Loan	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Cash Credit Account
- Central Bank of India*	337.249	355.840
- Bank of Baroda*	121.672	162.944
- State Bank of India*	91.404	99.204
- Dena Bank*	68.255	109.525
- State Bank of Indore*	66.042	76.704
- Indusind Bank	51.341	0.000
Term Loans From Banks:
For Machinery and Equipment:
- Central Bank of India**	67.850	104.607
- State Bank of India**	266.500	312.625
- ICICI Bank***	5.084	5.428
- Kotak Mahindra Bank***	6.945	7.480
- Tata Capital Limited	19.457	0.000
Lease and Hire Purchase Instalments	1.634	5.473
Vehicle Loans	8.343	7.952
Interest accrued and due on Term Loans	2.887	4.503
Foreign Exchange Risk Premium (Accrued but not due)	0.324	0.169
Total	1114.987	1252.454
Unsecured Loans:	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
SICOM Limited (Interest free loan under New Package Scheme of Incentives)	35.393	36.767
Short Term Loan from Bank	0.000	30.000
Intercorporate Deposits	63.800	51.350
Interest accrued and due	2.176	2.086
Fixed Deposits (Due with in one year Rs.2.809 Millions previous year Rs.0.871 Millions) (Includes Rs.8.749 Millions received in Foreign Currency Previous Year Rs.8.749 Millions)	9.032	14.827
Total	110.401	135.031

Banking Relations :	--
Auditors :
Name :	Singhi and Company Chartered Accountants
Address :	901-A, Twin Tower, Lokhandwala Complex, 2^nd Cross Lane, Andheri (West), Mumbai-400053, India
PAN.:	AAOFS5579C
Associates/Subsidiaries :	Kores Services Limited (up to 31 -8-05) Futuristic Securities Limited Solar Packaging Private Limited Art Enterprises Shashi Finance Limited Pepega (Insulation and Packaging) Limited Quality Inks Limited Shri Amarsinhji Stationery Industries Limited Vishvakirti Consultancy Limited Nandini Chemicals Private Limited Magna Iinks Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
7,500,000	Equity Shares	Rs. 10/- each	Rs. 75.000 Millions
250,000	11% Redeemable Preference Shares	Rs. 100/- each	Rs. 25.000 Millions
	Total		Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5,500,000	Equity Shares	Rs. 10/- each	Rs. 55.000 Millions
200,000	11% Redeemable Preference Shares	Rs. 100/- each	Rs. 20.000 Millions
	Total		Rs. 75.000 Millions

Out of Above :

¯ 2315302 Equity Shares are allotted as fully paid up Bonus Shares by way of Capitalization of General Reserve.

¯ 80604 Equity Shares allotted to the Shareholders of erstwhile Pefco Industries Limited on its merger with the company as per the order of B.I.F.R. dated 20.05.1991.

¯ 8105 Equity Shares to the Shareholders of erstwhile Koron Business Systems Limited on its merger with the company as per the order B.I.F.R. dated 16.01.1995

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		75.000	75.000	75.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		824.448	809.646	675.418
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		899.448	884.646	750.418
LOAN FUNDS
1] Secured Loans		1114.987	1252.454	1169.781
2] Unsecured Loans		110.401	135.031	169.543
TOTAL BORROWING		1225.388	1387.485	1339.324
DEFERRED TAX LIABILITIES		51.300	49.608	53.056
TOTAL		2176.136	2321.739	2142.798
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1101.203	1095.358	1019.827
Capital work-in-progress		28.629	19.668	58.839
INVESTMENT		22.562	41.244	54.903
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	944.502	1012.431	1021.859
	Sundry Debtors	866.345	982.695	1193.734
	Cash & Bank Balances	68.474	64.772	198.757
	Other Current Assets	7.562	8.045	7.368
	Loans & Advances	501.422	516.789	543.735
Total Current Assets		2388.305	2584.732	2965.453
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	226.714	215.880	495.686
	Sundry Creditors	1099.229	1164.676	1425.932
	Provisions	38.620	38.707	35.476
Total Current Liabilities		1364.563	1419.263	1957.094
Net Current Assets		1023.742	1165.469	1008.359
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
DEFERRED REVENUE EXPENDITURE		0.000	0.000	0.870
TOTAL		2176.136	2321.739	2142.798

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	7013.063	7833.957	7439.232
		Other Income	62.782	82.758	100.221
		TOTAL (A)	7075.845	7916.715	7539.453
Less	EXPENSES
		Cost of Goods Sold	3543.338	4369.554	4413.954
		Raw Material Consumed	1416.112	1240.057	1030.522
		Cost of Construction Project	29.924	182.384	123.249
		Manufacturing and Other Expenses	908.457	829.628	833.899
		Payments to and Provisions for Employees	471.270	441.927	421.021
		Selling and Distribution Expenses	329.848	347.890	287.744
		TOTAL (B)	6698.949	7411.440	7110.389
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		376.896	505.275	429.064
Less	FINANCIAL EXPENSES (D)		172.520	201.668	164.742
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		204.376	303.607	264.322
Less/ Add	DEPRECIATION/ AMORTISATION (F)		168.873	151.103	109.539
	PROFIT BEFORE TAXATION AND EXTRA ORDINARY ITEMS		35.503	152.504	154.783
Add	PRIOR PERIOD AND EXTRA ORDINARY ITEMS		(2.273)	12.217	(3.074)
	PROFIT BEFORE TAX (E-F) (G)		33.230	164.721	151.709
Less	TAX (I)		9.449	21.484	27.139
	PROFIT AFTER TAX (G-I) (J)		23.781	143.237	124.570
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		576.873	460.145	359.584
Less	APPROPRIATIONS
		Proposed Dividend on Equity Shares	5.500	5.500	5.500
		Proposed Dividend on Preference Shares	2.200	2.200	2.200
		Distribution Tax on Proposed Dividend	1.279	1.309	1.309
		Transfer to General Reserve	3.706	17.500	15.000
	BALANCE CARRIED TO THE B/S		587.969	576.873	460.145
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	680.485	406.846	304.595
	TOTAL EARNINGS		680.485	406.846	304.595
	IMPORTS
		Raw Materials	231.289	121.799	97.230
		Stores & Spares	9.403	14.894	14.246
		Capital Goods	6.609	22.753	71.496
		Finished Goods	165.107	101.314	96.973
		Trading on Highseas	0.000	28.449	38.450
	TOTAL IMPORTS		412.408	289.209	318.395
	Earnings Per Share (Rs.)		3.92	25.64	22.25

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.34	1.81	1.65
Net Profit Margin (PBT/Sales)	(%)	0.47	2.10	2.04
Return on Total Assets (PBT/Total Assets}	(%)	0.95	4.48	3.81
Return on Investment (ROI) (PBT/Networth)		0.04	0.19	0.20
Debt Equity Ratio (Total Liability/Networth)		2.87	3.17	4.39
Current Ratio (Current Asset/Current Liability)		1.75	1.83	1.51

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors for Acceptances	79.694	132.217	400.330
Sundry Creditors for Goods	643.500	698.241	707.781
Sundry Creditors for Capital Expenditure	12.565	7.458	11.827
Sundry Creditors for Expenses	270.572	245.663	236.251
Sundry Creditors for Other Finances	92.898	81.097	69.743
Total	1099.229	1164.676	1425.932

Contingent Liabilities :

Contingent Liabilities not provided for in respect of :

(Rs. in millions)

Particulars	31.03.2010	31.03.2009
Letter of Credit outstanding	132.190	104.443
L. C. Margin Money with Bank	13.870	10.649
Bank Guarantee outstanding	79.712	99.682
Claims against the Company not acknowledged as debt	1.004	1.394
Corporate Guarantees given	50.950	66.450
Liability contested and not provided for: - Excise / Custom demands under Appeal Amount paid under Protest Rs.5.551 millions (P. Y. Rs.4.892 millions) - Income Tax Demand under Appeal (Amount paid under appeal Rs.10.400 (P. Y. Rs.6.400 millions) - Sales-tax / Purchase tax / Entry tax demand Amount paid under protest Rs.7.039 millions (P.Y. Rs.4.182 millions) - Provident Fund / E.S.I.C. demand (Amount paid under protest Rs.0.045 millions. P. Y. Rs.0.045 millions) - Local Authorities demand Amount paid under Protest Rs.0.921 millions (P. Y. Rs.0.885)	71.898 47.697 34.830 1.508 7.115	36.785 47.697 17.152 1.553 6.971
Uncalled liability on partly Paid-up Shares	1.875	1.875
Warranty Claims and Performance Guarantees, wherever given, for the products of the Company, ascertainable.
Export Obligation of Rs.366.690 millions (Previous year Rs. 359.110 millions )against the import licensees taken for import of various capital goods under export promotion scheme and import of raw materials under duty exemption entitlement scheme to be executed.
Liability is not ascertainable that may arise consequent to outcome of labor cases pending before courts and other competent authorities.

Secured Loan :

(i) The Working Capital Facility from Consortium of Banks (Lead Bank - Central Bank of India) are secured as under:

- First charge against hypothecation of Raw Materials, Finished and Semi-Finished Goods, Consumable Stores and Spare Parts and Book-debts of the company.

- Equitable mortgage on immovable properties of Textile division at Wankaner (Gujarat), Engineering Division at Pithampur (M.R), Foundry Division at Chakan and Bhosari (Maharashtra) and Village Puttanlanpally, Dist. Cuddapah (Andhra Pradesh) and Pharmaceutical and Chemicals Division at Plot No.59A, 65B, 65C situated at M.I.D.C. Roha (Maharashtra).

- Second charge on company's Industrial Galas No.114, 115 and 116, 1st floor, Shah and Nahar Industrial Estate, Off. Dr. E. Moses Road, Worli, Mumbai -400 018.

(ii) (a) Term Loan for Building, Plant, Machinery and Equipments obtained from Central Bank of India and State Bank of India secured by respective immoveable and movable properties comprising inter alia, Building, Plant and Machinery, Equipments at Pharmaceuticals and Chemicals Division. At Roha, Textile Division at Wankaner and Foundry Division at Chakkan and Bhosari, Pune (Maharashtra), acquired from these term loans. These term loans are further secured by first Pari Passu charge on Equitable mortgage of immovable properties of Textile Division at Wankaner (Gujarat), Engineering Division at Pithampur (M.P.) and Foundry Division at Chakan and Bhosari, Pune (Maharashtra) and at village Puttanlanpally Dist. Cuddapah (Andhra Pradesh) and Pharmaceuticals and Chemicals Division at Plot No. 59A, 65B, 65Cand66A situated at M.I D.C. Roha (Maharashtra). Amount due within one year Rs.86.000 millions (Previous year Rs. 84.125 millions)

(All the above borrowings are guaranteed by Shri S.K. Thirani, Chairman and Shri A.K. Thirani, Managing Director of the Company.)

(b) Term Loan of Central Bank of India sanctioned of Rs.238.000 Millions for Pharmaceuticals and Chemicals Division at Roha disbursed amount of Rs. 1.500 Millions are secured by way of hypothecation on First Charge basis of Assets created / to be created there under.

(c) Term Loan for Machinery and Equipment from Tata Capital Limited are secured by respective Machinery and Equipment financed there under. Amount due within one year Rs.4.223 Millions.

(iii) Equitable Mortgage of immovable properties situate at -

a) Plot No. C/7/1-B, T.C.C. Industrial Estate Village Pawne, Navi Mumbai under housing finance scheme from ICICI Bank, the amount due within one year Rs.3.43 millions (Previous Year Rs. 0.344 millions)

b) Flat No. 1903,19th floor, C Wing Gundecha Garden, Lalbaug, Mumbai under housing finance scheme from Kotak Mahindra Bank Limited The amount due with in one year Rs. 0.594 millions (Previous Year Rs 0.535 millions)

(iv) Assets purchased under Hire Purchase Scheme are secured by respective assets. Amount due within one year Rs. 1.634 millions (Previous Year Rs. 3.839 millions)

(v) Vehicle loan is secured by the Vehicles financed. Amount due within one year Rs. 4.430 (Previous Year 4.807 millions)

Cash Credit facility (utilized) Rs.735.962 millions (Previous year Rs.804.818 millions) out of which a sum of Rs.529.757 millions (Previous year Rs. 53.574 millions) has been converted into FCNR-B equivalent to US$ 11.586 millions (Previous year US$ 1.090 millions) for a period of six month is at a time and further roll over is subject to approval from the bankers. Exchange risk is covered by way of forward booking contract to the extent of US$ 11.586 millions (Previous year US$ 1.090 millions).

Financial Results:

OFFICE PRODUCTS DIVISION

During the year, the Conventional Product Division has shown better performance resulted into increase in turnover with Improved bottom line as compared to previous year. The division has introduced the range of products i.e. Copier paper, Inspire Metal Ball Pen, Counterfeit Currency Checker, Vivtek DLP Projectors etc. in order to expand its market presence.

During the year, in spite of continuous decline in demand of conventional stationery products, the division has sustained its steady growth path by introducing the innovative products suited to the market.

For the current year, the division is expecting the better results.

l.T. DISTRIBUTION DIVISION

During the year, the Division is national channel partner of Hewlett Packard (HP) and Samsung Cartridge. Global slowdown in economy coupled with stiff market competition severally hit the performance of the division resulting into decline in revenue and margin of the division and compelled to scale down the activity at minimal level with an ultimate view to quit from this segment of business.

For the current year, the division has to complete the stock liquidation and outstanding recovery process in order to minimize the closure losses.

REAL ESTATE DIVISION

During the year, the Division has completed the project of 15 Residential Buildings at Thane and sold the balance apartments looking to the shaking confidence of real estate market and low demand, the division has slow down its activity of undertaking new project resulted in decline of top line and bottom line as compared to previous year.

For the current year, with positive trend of growth in Indian economy and revive demand of residential projects, the division is exploring the plan of construction of 16th building under its ‘Kores Nakshatra Project at Thane and tapping the opportunity in other places.

BUSINESS and COMPUTER SYSTEMS DIVISION

During the year, the Division has shown growth in top line but not able to sustain the bottom line as compared to previous year, as the margins were under pressure. In order to expand its market presence, the division has introduced Counterfeit Currency Detector with advance feature, which is well appreciated by the Banking Sector.

Looking to the robust Indian Economy growth, the division is expecting to achieve the better results for the current year.

PHARMACEUTICALS AND CHEMICALS DIVISION

The year has shown the good growth in pharmaceutical sector across the globe with numerous activities of global acquisitions and takeovers. The said growth story mirrors in performance of the Pharma and Chemicals Division of the Company with reasonable growth in turnover coupled with improved bottom line as compared to previous year. The division has sustained the demand of existing products as well as broad its base by introducing the new Molecules and Products, which are widely accepted by the Indian as well as International market

For the current year, the division is targeting to expand its product base by adding new products demanded in the market as well as expanding its capacities, thereby contributing its revenue and bottom line to achieve the pace of growth. Looking to future prospect, the division is exploring opportunities in highly regulated international market such US and JAPAN in the coming years.

FOUNDRY DIVISION

Year 2009-10 is the year of mixed fortune for the Foundry Division, Top line of the division Is shown slight downward trend but bottom line has been improved as compared to previous year. As reflected in Indian Economy, first half of the year is slow in the demand, but second half of the yar shown good growth in auto and non auto sector boosts the performance of the division.

For the current year, looking to the better demand in auto 8 non auto sector and optimum utilization of newly expanded KOYO line at Chakan, the Foundry Division is expecting the better results for current fiscal year.

TEXTILE DIVISION

During the year, after coming out of the recession, Textile industry has shown good demand with better realization and huge opportunity in export. With better sales realization, passing out input cost pressure to the market; the turnover of the division has been increased with Improvement in bottom line as compared to previous year. Optimum utilization of plant capacity and wide recognisation of the products i.e. blended yam of old unit and cotton yarn & knitted fabric of new unit is key note of the performance of the division.

For the current year, expecting the better cotton crop widely depends on monsoon: overall good market sentiments are raising the hope of better performance of the division.

ENGINEERING DIVISION

During the year, the Engineering Division has performed fairly well with increasing its top line and margin as compared to previous year. The division has enhanced its existing customer base by introducing new products i.e. Hydrostatic Drills and Drilling Rigs, which are well appreciated by the customers. Looking to positive sentiments and government policies for exploration business, the division is venturing into Contract Drilling Work, which will further boost the performance of the division.

Better order position in hand with encouraging market response poses better performance of the division for the current year.

EXPORT

Export turnover during the year is Rs 680.485 Millions as compared to Rs 440.931 Millions in the previous year.

Form 8:

Corporate identity number of the company	U21198MH1936PLC002494
Name of the company	KORES (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	Kores House, Plot No. 10, Off Dr. E. Moses Road, Worli, Mumbai - 400 018, Maharashtra
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10195947
Type of charge	Immovable Property Book Debts Movable Property Others (Current and Fixed Assets)
Particular of charge holder	Central Bank of India, Corporate Finance Branch, 1^st Floor, MMO Building, M.G. Road, Mumbai – 400023, Maharasahtra, India
Nature of instrument creating charge	1.2nd Supplemental Agreement of Hypothecation of Assets For Increase in the Overall Limit 2.Extension of Memorandum of Entry (All the above Agreement cons
Date of instrument Creating the charge	01.03.2011
Amount secured by the charge	Rs. 418.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Stipulated by Bank from Time to Time Terms of Repayment As Stipulated by Bank from Time to Time Margin As Stipulated by Bank from Time to Time Extent and Operation of the charge Total Limit Rs. 4180.000 Millions And/ Or As Stipulated by Bank from Time to Time Others As Stipulated by Bank from Time to Time and as per Agreement attached and as per sanction letter of the Bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	(1)First charge(Present and Future)Hypothecation of whole of the assets of the borrower acquired/created out of bank finance under the project and plant and machineries, movables and immovable assets of M/S Marksans Pharma Limited, Kurkumbh,Pune Or in the course of transit or on highseas or on order or delivery (2)First pari passu charge on the block assets of the company both present & future (excluding the specific charge on plant and machinery/equipments finance by the bank/other banks)which are now lying or stored in or about or shall hereinafter from time to time during the continuance of the security at borrower factories, premises and godowns situated at roha plant and in the state of Maharashtra and Other acquired assets (3)First pari passu charge on immovable properties as per memorandum attached
Particulars of the present modification	By this modification limit increased from rs.400.000 Millions to rs.418.000 Millions, continued security as given by original charge as well as by modifications and all the assets/machinery/goods purchased out of enhanced limit/term loan, terms and conditions as per agreement attached and as per sanction letter of the bank

FIXED ASSETS:

v Land and Building – (On Leasehold and Freehold land)

v Plant and Machinery

v Furniture and Fixtures

v Office Equipments

v Motor Car and Vehicles

v Bore-Wells and Water Connections

v Enterprise System

AS PER WEBSITE DETAILS :

Subject was incorporated in 1936 inter-alia with the object to takeover the business of W. KORESKA then carried on in Calcutta and Mumbai mainly in the field of stationery products.

In 1956, the late Mr. K.L. Thirani acquired majority share holding and took over the management of Kores (India) Limited. Since then, it has grown rapidly and diversified into several fields.

The driving force behind the KORES of today is a dream.  The dream of Mr. K.L. Thirani.  He dreamt of India as a country developing innovative technologies and business practices that would eventually help become a strong economy. In realization of his dream, KORES has consistently grown by well planned approach of expansion and diversification.  

Subject has the seal of excellence and reliability and above all the trust of its customers for the past more than 75 years.  The deep rooted ‘trust’ of customers is earned through the high quality products and consistent service provided by dedicated employees. 

.

Financial :

Subject since incorporation has been growing steadily in business while gaining deep rooted confidence of customers reinforced with trust factor.  Year ending March 2010 we would be closing at a business value of INR 7000.000 Millions. A steady growth is planned to achieve the long-term business objectives. 

Social Responsibilities :

Subject has identified 'Education' and 'Health' as the areas to concentrate on social cause and have been providing support for running schools and primary health centers in rural areas.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.25
UK Pound	1	Rs.73.82
Euro	1	Rs.63.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		53

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.