MIRA INFORM REPORT

Report Date :

25.11.2011

IDENTIFICATION DETAILS

Name :	KVN POLYTECH PRIVATE LIMITED
Registered Office :	Door No. 23/880, A-1 KVN Arcade, Meenchanda, Arts and Science College Post Calicut – 673 018, Kerala
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	15.01.2004
Com. Reg. No.:	09-16778
Capital Investment / Paid-up Capital :	Rs.6.094 millions
CIN No.: [Company Identification No.]	U25204KL2004PTC016778
TAN No.: [Tax Deduction & Collection Account No.]	CHNK02116C
PAN No.: [Permanent Account No.]	AACCK2911R
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Polymer Plastic Raw Material.
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 34000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has been successful in wiping off the accumulated losses of previous years. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	Door No. 23/880, A-1 KVN Arcade, Meenchanda, Arts and Science College Post Calicut – 673 018, Kerala, India
Tel. No.:	91-495-2321492
Mobile No.:	91-9846094533 (Mr. M. K. Rajesh)
Fax No.:	91-495-2320532
E-Mail :	kvnimpex@dataone.in koz_kvnimpex@sancharnet.in kvnimpex@gmail.com
Area :	1500 sq. ft. (Office)
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :

Mr. M. K. Rajesh

Designation :

Managing Director

Address :

Ramraj Nethaji Road, Parayancheri P O, Puthiyara, Calicut – 673 004, Kerala, India

Date of Birth/Age :

15.05.1967

Date of Appointment :

15.01.2004

Election Commission Identity Card No.:

KL/04/025/205005

DIN No.:

00801685

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51909KL1999PTC012733	KVN Impex Private Limited	Whole-time director	08-01-99	08-01-99	Active	NO
2	U25204KL2004PTC016778	KVN Polytech Private Limited	Managing director	15-01-04	15-01-04	Active	NO

Name :

Mr. M. K. Ramesh

Designation :

Director

Address :

Archana Meenchanda P O, Calicut – 673 018, Kerala, India

Date of Birth/Age :

23.05.1965

Date of Appointment :

15.01.2004

Election Commission Identity Card No.:

KL/04/025/205001

DIN No.:

00801691

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51909KL1999PTC012733	KVN Impex Private Limited	Managing director	08-01-99	08-01-99	Active	NO
2	U25204KL2004PTC016778	KVN Polytech Private Limited	Director	15-01-04	15-01-04	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
M. K. Rajesh	120000
M. K. Ramesh	120000
M. K. Savithri	26550
T. P. Sindhu	106900
Rashmi Nair	106950
Reshma Ramesh	3800
Swetha Ramesh	3825
Rajath Rajesh	3700
Rishi Rajesh	3900
K. P. Damodharan	74800
Radha Damodharan	3900
K. P. Rajagopal	3700
Pushpa Rajagopal	3825
T. P. Balakrishnan	3400
K. Vinod Kumar	3875
P. Madhava Menon	3750
Madhusoodhana Varma	3800
Manoj Menon	3650
Pradeep Sukumaran	3825
Radhakrishnan	5270
Total	609420

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader of Polymer Plastic Raw Material.

Products :

Product Description	ITC Code
Polythelene	3901.10.10

GENERAL INFORMATION

Suppliers :

· Asiatic Transports

· Eagle Trucking Company

· U Parasurama Iyer and Company

· Peirceleslie Agencies Limited

· Sethumadhavan and Company

No. of Employees :

20 (Approximately)

Bankers :

· State Bank of Travancore

Kozhikode Main Branch, Kozhikode – 673 001, Kerala, India

· HDFC Bank

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
State Bank of Travancore CC A/c 67007127728	0.000	1.170
Total	0.000	1.170

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
M. K. Rajesh	0.500	0.000
Total	0.500	0.000

Banking Relations :	--
Auditors :
Name :	Ajit Bharathan K Chartered Accountant
Address :	Konnanat House, Zilla Banglow Road, Calicut – 673 011, Kerala, India
PAN No.:	AFYPK6799P

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
609420	Equity Shares	Rs.10/- each	Rs.6.094 millions

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		6.094	6.094	6.094
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2.391	0.000	0.913
4] (Accumulated Losses)		0.000	(1.750)	0.000
NETWORTH		8.485	4.344	7.007
LOAN FUNDS
1] Secured Loans		0.000	1.170	3.203
2] Unsecured Loans		0.500	0.000	0.000
TOTAL BORROWING		0.500	1.170	3.203
DEFERRED TAX LIABILITIES		0.025	0.027	0.040
TOTAL		9.010	5.541	10.250
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.159	0.226	0.198
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.577
	Sundry Debtors	7.514	1.281	25.110
	Cash & Bank Balances	1.816	8.911	9.250
	Other Current Assets	0.000	3.036	0.000
	Loans & Advances	8.991	5.233	4.182
Total Current Assets		18.321	18.461	39.119
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.711	12.473	27.646
	Other Current Liabilities	0.301	0.241	1.220
	Provisions	0.458	0.442	0.220
Total Current Liabilities		9.470	13.156	29.086
Net Current Assets		8.851	5.305	10.033
MISCELLANEOUS EXPENSES		0.000	0.010	0.019
TOTAL		9.010	5.541	10.250

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	92.891	97.395	130.442
		Other Income	6.272	2.479	NA
		TOTAL	99.163	99.874	NA
	EXPENSES
		Office Expenses	94.219	102.550	127.601
		Administrative Expenses
		Advertising Expenses
		TOTAL	94.219	102.550	127.601
	PROFIT/(LOSS) BEFORE TAX		4.944	(2.676)	1.053
Less	TAX		0.597	(0.013)	0.282
	PROFIT/(LOSS) AFTER TAX		4.347	(2.663)	0.771
	IMPORTS		4.957	46.341	93.689
	Earnings / (Loss) Per Share (Rs.)		7.13	(4.37)	1.27

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.38	(2.67)	NA
Net Profit Margin (PBT/Sales)	(%)	5.32	(2.75)	0.81
Return on Total Assets (PBT/Total Assets}	(%)	26.75	(14.32)	2.68
Return on Investment (ROI) (PBT/Networth)		0.58	(0.62)	0.15
Debt Equity Ratio (Total Liability/Networth)		1.18	3.30	4.61
Current Ratio (Current Asset/Current Liability)		1.93	1.40	1.34

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS

During the financial year 2009-2010 the company has achieved the total Sales of Rs.92.891 millions compared to the previous year’s figure of Rs.97.395 millions. Profit before tax is Rs.4.944 millions compared to the previous year’s Loss figure of Rs.2.676 millions. Profit after tax Rs.4.347 millions compared to the previous year’s Loss figure of Rs.2.663 millions.

FORM 8

This form is for

Modification of charge

Charge identification number of the modified

10000046

Corporate identity number of the company

U25204KL2004PTC016778

Name of the company

KVN POLYTECH PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

Door No. 23/ 880 Alkvn Arcade Meenchanda, Arts and Science College Post Calicut – 673018, Kerala, India

Type of charge

Movable Property

Particular of charge holder

Name :	State Bank of Travancore
Address :	Kozhikode Main Branch, Kozhikode, Kerla – 673001, India
Email :	calicut@sbt.co.in

Nature of description of the instrument creating or modifying the charge

Supplemental agreement of hypothecation of goods and assets for increases in the overall working capital limit

Letter regarding the grand of individual limits within the overall working limit

Date of instrument Creating the charge

15.01.2007

Amount secured by the charge

Rs.31.500 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

Interest @ of 13.255 per annum

Terms of Repayment

There is no change the existing term and conditions.

Margin

Stocks – 25%

Book debt/ receivable – 40%

Extent and Operation of the charge

Hypothecation of company’s assets as security for the loan sanctioned along with interest and other dues thereon.

Short particulars of the property charged

The Existing charge on the Goods and Assets.

Particulars of the present modification

On 15.01.2007 the existing loan limit of Rs.8.500 millions was enhanced to Rs.31.500 millions as follows:-

Cash Credit (Hypothecation) Rs.1.500 millions

Letter of Credit / Buyers Credit – Rs.30.000 millions

FIXED ASSETS

· Computer

· EPABX

· Inverter 1000 VA

· Honda Activa

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.52.25
UK Pound	1	Rs.81.23
Euro	1	Rs.69.83

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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.