MIRA INFORM REPORT

Report Date :

25.10.2011

IDENTIFICATION DETAILS

Name :	KANPUR EDIBLES PRIVATE LIMITED
Registered Office :	51/58, A, Shakkarpati, Kanpur-208001, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	25.01.1990
Com. Reg. No.:	20-011589
Capital Investment / Paid-up Capital :	Rs.25.425 Millions
CIN No.: [Company Identification No.]	U15326UP1990PTC011589
TAN No.: [Tax Deduction & Collection Account No.]	KNPK01232A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Edible Oil Allied Products.
No. of Employees :	Not Available

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 3100000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business us 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 – 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 :	51/58, A, Shakkarpati, Kanpur-208001, Uttar Pradesh, India
Tel. No.:	91-512-2352059/2350765
Fax No.:	91-512-2331163
E-Mail :	customercare@thesalahkars.com

DIRECTORS

As on 25.09.2010

Name :

Mr. Ganesh Prasad Gupta

Designation :

Director

Address :

15/260-A, Gagan Complex, Civil Lines, Kanpur-208001, Uttar Pradesh, India

Date of Birth/Age :

07.01.1950

Date of Appointment :

27.09.1994

Din No.:

00221429

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	U15326UP1990PTC011589	KANPUR EDIBLES PRIVATE LIMITED	Director	27-09-94	27-09-94	Active	NO
2	U45201UP2003PLC027665	MAYUR INFRASTRUCTURE LIMITED	Director	02-07-06	02-07-06	Active	NO

Name :

Mr. Suresh Prasad Gupta

Designation :

Director

Address :

15/260-A, Gagan Complex, Civil Lines, Kanpur-208001, Uttar Pradesh, India

Date of Birth/Age :

08.07.1960

Date of Appointment :

20.02.2010

Name :

Mr. Manoj Kumar Gupta

Designation :

Director

Address :

15/260-A, Gagan Complex, Civil Lines, Kanpur-208001, Uttar Pradesh, India

Date of Birth/Age :

04.07.1964

Date of Appointment :

01.04.2007

Din No.:

00221590

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	U15143UP1996PTC020167	KANPUR EXTRACTIONS PRIVATE LIMITED	Director	17-06-96	17-06-96	Active	NO
2	U15326UP1990PTC011589	KANPUR EDIBLES PRIVATE LIMITED	Director	01-04-07	01-04-07	Active	NO
3	U51109UP1997PTC021658	AV AGRO PRODUCTS PRIVATE LIMITED	Director	05-04-07	05-04-07	Active	NO

Name :

Mr. Ankit Gupta

Designation :

Director

Address :

15/260-A, Gagan Complex, Civil Lines, Kanpur-208001, Uttar Pradesh, India

Date of Birth/Age :

12.12.1982

Date of Appointment :

01.04.2007

Din No.:

00227244

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L65993WB1982PLC035505	RRM SHARES AND SECURITIES LIMITED	Director	05-03-04	05-03-04	27-08-07	Active	NO
2	U45201UP2003PLC027665	MAYUR INFRASTRUCTURE LIMITED	Director	02-07-06	02-07-06	-	Active	NO
3	U15326UP1990PTC011589	KANPUR EDIBLES PRIVATE LIMITED	Director	01-04-07	01-04-07	-	Active	NO

Name :

Mr. Arjit Gupta

Designation :

Director

Address :

15/260-A, Gagan Complex, Civil Lines, Kanpur-208001, Uttar Pradesh, India

Date of Birth/Age :

28.10.1986

Date of Appointment :

01.07.2007

Din No.:

00233558

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2010

Names of Shareholders	No. of Shares
Urmila Gupta	47000
Suresh Prasad Gupta	67000
Mahesh Prasad Gupta	52000
Rama Gupta	32000
Pramod Kumar Gupta	93000
Ganesh Prasad Gupta	26000
Rajni Gupta	24000
Tapeshwari P. Gupta	33000
Asha Gupta	8500
Sunil Gupta	44000
Shalini Gupta	79400
Manoj Kumar Gupta	57000
Sweta Gupta	67000
Sharda Gupta	10015
Sangeeta Gupta	14015
Ankit Gupta	65008
Arjit Gupta	2
RRM Shares and Securities Limited, India	410000
Bhagwati Prasad Gupta HUF	187500
Ramesh Chand Gupta	20000
Arpit Gupta	35000
Ankur Dealers Private Limited, India	1150000
Kanpur Packagers Private Limited, India	20000
Deepti Gupta	538
Parul Gupta	522
Total	2542500

As on 25.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	69.00
Other top fifty shareholders (other than listed above)	31.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Edible Oil Allied Products.

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Vanaspati (Hydrozenisation Plant)	M.T	60000.000	35030.136
Refined	M.T	108000.000	115264.791
Blerkled Oil	M.T	--	5496.207

GENERAL INFORMATION

Bankers :

· Punjab National Bank, Birhana Road, Kanpur-208001, Uttar Pradesh, India

· Axis Bank Limited

· ICICI Bank Limited

· Bank of Baroda

· Bank of India

· State Bank of India

· Kotak Mahindra Bank Limited

Facilities :

Secured Loan	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
Punjab National Bank Cash Credit A/C	246.548	222.974
Demand Loan No. PO 52700 (Punjab National Bank)	0.005	0.005
Axis Bank Limited	526.555	0.000
ICICI Bank Limited	1.378	8.726
Tata Motors Finance Limited	3.145	7.247
Tata Capital Limited	2.897	4.949
Magnus Fincrop Limited	0.802	1.331
Bank of Baroda	0.000	87.442
Bank of India	657.115	697.021
State Bank of India	148.875	460.101
Kotak Mahindra Bank Limited	18.145	0.000
Term Loan From Punjab National Bank	199.965	107.121
Total	1805.430	1596.917
Unsecured Loan
Inter Corporate Deposit	8.065	7.176
From Share Holders, Directors and Their Relatives	18.283	14.017
Total	26.348	21.193

Banking Relations :	--
Auditors :
Name :	Rajendra Neeti and Associates Chartered Accountants
Address :	112/292, Swaroop Nagar, Kanpur-208001, Uttar Pradesh, India
Tel. No.:	91-512-2535684
Pan No.:	AABFR0609K
Subsidiaries (100%) :	· Kanpur Extractions Private Limited [U15143UP1996PTC020167] · AV agro Products Private Limited [U51109UP1997PTC021658]
Associates:	· Mayor Infrastructure Limited · Ankur Dealers (Private) Limited · Kanpur Packagers (Private) Limited · Kushal Foods (Private) Limited · RRM Shares and Securities Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2542500	Equity Shares	Rs.10/- each	Rs.25.425 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		25.425	25.425	19.635
2] Share Application Money		110.100	167.355	328.005
3] Reserves & Surplus		650.389	586.594	252.740
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		785.914	779.374	600.380
LOAN FUNDS
1] Secured Loans		1805.430	1596.917	567.579
2] Unsecured Loans		26.348	21.193	38.059
TOTAL BORROWING		1831.778	1618.110	605.638
DEFERRED TAX LIABILITIES		10.580	2.405	1.532
PREFERENTIAL WARRANT		0.000	103.970	51.870
TOTAL		2628.272	2503.859	1259.420
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		658.425	468.682	176.381
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		38.238	38.238	19.094
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1107.599	1546.038	1048.163
	Sundry Debtors	564.191	327.119	356.809
	Cash & Bank Balances	1649.627	1590.369	514.128
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	202.408	104.412	116.579
Total Current Assets		3523.825	3567.938	2035.679
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		1540.781	939.176
	Other Current Liabilities	1556.660	15.512	13.672
	Provisions	35.621	14.797	19.006
Total Current Liabilities		1592.281	1571.090	971.854
Net Current Assets		1931.544	1996.848	1063.825
MISCELLANEOUS EXPENSES		0.065	0.091	0.120
TOTAL		2628.272	2503.859	1259.420

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES		8996.112	9056.106	6827.431
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		156.903	81.789	64.282
Less/ Add	DEPRECIATION/ AMORTISATION		50.286	26.285	17.853
	PROFIT BEFORE TAX		106.617	55.504	46.429
	BALANCE CARRIED TO THE B/S		171.825	113.261	72.967
	IMPORTS
		Raw Materials	3554.890	4355.316	2825.650
		Trading Items	1337.200	892.470	920.802
	TOTAL IMPORTS		4892.090	5247.786	3746.452

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Net Profit Margin (PBT/Sales)	(%)	1.19	0.61	0.68
Return on Total Assets (PBT/Total Assets}	(%)	2.55	1.37	2.10
Return on Investment (ROI) (PBT/Networth)		0.14	0.07	0.07
Debt Equity Ratio (Total Liability/Networth)		4.36	4.09	2.63
Current Ratio (Current Asset/Current Liability)		2.21	2.27	2.09

LOCAL AGENCY FURTHER INFORMATION

NOTE: The registered office of the company has been shifted from 15/260 A, Gagan Complex, Civil Lines, Kanpur- 208001, Uttar Pradesh, India to the present address w.e.f. 27.11.2007.

OPERATIONAL PERFORMANCE:

During the year, due to Competition, the Company witnessed a decrease in it overall sales from Rs. 9056.106 Millions during the corresponding previous year to Rs. 8996.112 Millions during the current year. Company incurred Rs. 3.856 Millions towards the finance charges as compared to Rs. 42.141 Millions in the corresponding previous year. The Net profit during the year after charging for depreciation of Rs. 50.286 Millions and provision for Income Tax stands Rs. 106.617 Millions as compared to net profit of Rs. 555.04 Millions during the previous year. The Directors are confident to better performance by the company during the year to come.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	90275311
Corporate identity number of the company	U15326UP1990PTC011589
Name of the company	KANPUR EDIBLES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	51/58, A, Shakkarpati, Kanpur-208001, Uttar Pradesh, India
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge Immovable Property Any Interest in Immovable Property
Particular of charge holder	Punjab National Bank, Birhana Road, Kanpur-208001, Uttar Pradesh, India
Email	customercare@thesalahkars.com
Nature of description of the instrument creating or modifying the charge	Agreement for enhancement of FLC limit from 2000.000 Millions to 2500.000 Millions
Date of instrument Creating the charge	20.06.2011
Amount secured by the charge	Rs.2500.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Terms Remain Same, Commission @ 50% Applicable Schedule Charges As Per Sanction Letter Terms of Repayment Repayable On Demand Margin 15% Extent and Operation of the charge Goods/ assets represented by documents drawn/ covered under letter of credit issued under the above said limit and various raw material, stock in process and semi finished goods, finished goods including goods in transit, packaging materials etc., (shipping documents DA/DP including bill of lending imported raw material, Vanaspati etc.)
Short particulars of the property charged	First charge on entire block asset including plant and machinery, tools, spares, stocks and any other assets brought by the company in future at all godowns, factory etc. Equitable mortgage of factory land and building situated at Village Rania, District Kanpur Dehat and Flat No. 103, Gagan Complex, Civil Lines, Kanpur. Hypothecation of entire stocks of raw materials, stock in process, finished goods, stock in transit, consumable stores and spares, or any other security required for the purpose of execution of export Orders received or to be received by TH company Deposit of confirmed orders and/or original irrevocable LC of approved foreign banks, foreign documentary bills accompained by requisite documents, debtors. Representing genuine trade transactions and all other current assets of the co., besides all such securities which may be offered by us and accepted by the bank for the purpose of making advances etc. Goods/ assets represented by document drawn/ covered under letter of credit issued under the above said limit and various raw material, stock in process and semi finished goods, finished goods Including goods in transit, packaging materials etc. Shipping documents DA/DP including bill of lending imported raw material, vanaspati etc.
Particulars of the present modification	Agreement for enhancement of FLC limit from 2000.000 Millions to 2500.000 Millions. Goods/ assets represented by documents drawn/ covered under letter of credit issued under the above said limit and various raw material, stock in process and semi finished goods, finished goods including goods in transit, packaging materials etc.

Fixed Assets:

· Land

· Leasehold Land

· Office Equipments

· Plant and Machinery

· Tube Well

· Cell Phone

· Tractor

· Computer Software

· Moulds

· Lab Equipments

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.49.87
UK Pound	1	Rs.79.73
Euro	1	Rs.69.53

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
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
-	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.