MIRA INFORM REPORT

Report Date :

15.09.2011

IDENTIFICATION DETAILS

Name :	VASANT CHEMICALS PRIVATE LIMITED
Registered Office :	1-11-251/1B, 4^th Floor, Vasant Towers, Behind Shopper’s Stop Begumpet, Hyderabad – 500016, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.10.1988
Com. Reg. No.:	01-009208
Capital Investment / Paid-up Capital :	Rs.31.814 Millions
CIN No.: [Company Identification No.]	U24110AP1988PTC009208
TAN No.: [Tax Deduction & Collection Account No.]	HYDV01989B
PAN No.: [Permanent Account No.]	AAACV7249K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Specialty and Performance Chemicals like photo chemicals, photo initiators and photo resistors, Catalysts, Pharma Intermediates and Specialty Dye Intermediates.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba [45]

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

Maximum Credit Limit :	USD 1060000
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 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 :	1-11-251/1B, 4^th Floor, Vasant Towers, Behind Shopper’s Stop Begumpet, Hyderabad – 500016, Andhra Pradesh, India
Tel. No.:	91-40-27760905 / 27762653 / 27762276
Fax No.:	91-40-27767940
E-Mail :	bumr@vasantchemicals.com
Website :	http://www.vasantchemicals.com

DIRECTORS

As on 30.09.2010

Name :

Mr. Krishna Bapaiah Chowdary Gutta

Designation :

Managing Director

Address :

Plot NO. 10 $ 11, Kavuri Hills, Hyderabad – 500033, Andhra Pradesh, India

Date of Birth/Age :

26.08.1953

Date of Appointment :

25.10.1988

DIN :

00232611

Other Directorship :

Top of Form S.No. Bottom of Form	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	U24110AP1988PTC009208	VASANT CHEMICALS Private LTD.	Managing director	25/10/1988	25/10/1988	-	Active	NO
2	U15410AP1996PTC023698	VASANT FOODS Private LIMITED	Director	4/4/1996	4/4/1996	-	Active	NO
3	U40109AP2000PTC034577	VASANT SOFTWARE SOLUTIONS PRIVATE LIMITED	Managing director	12/3/2008	2/6/2000	-	Active	NO
4	U24239AP2004PTC043227	VASANT LABS PVT LIMITED	Director	10/5/2004	10/5/2004	-	Active	NO
5	U65990AP2004PTC043558	VASANT FINANCIAL TRANSACTIONS PROCESSING PVT LIMITED	Director	30/06/2004	30/06/2004	-	Strike off	NO
6	U41000AP1987PLC007137	JEEDIMETLA EFFLUENT TREATMENT LIMITED.	Director	30/07/2005	30/07/2005	-	Active	NO
7	U45200AP1999PTC031623	Accentia Oak Technologies Private Limited	Managing director	1/11/2006	1/11/2006	31/03/2008	Active	NO

Name :

Mrs. Tara Chowdary Gutta

Designation :

Director

Address :

Plot NO. 10 $ 11, Kavuri Hills, Hyderabad – 500033, Andhra Pradesh, India

Date of Birth/Age :

11.01.1961

Date of Appointment :

04.08.2005

DIN :

00233056

Other Directorship :

Top of Form S.No. Bottom of Form	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	U15410AP1996PTC023698	VASANT FOODS Private LIMITED	Director	4/4/1996	4/4/1996	-	Active	NO
2	U45200AP1999PTC031623	Accentia Oak Technologies Private Limited	Director	4/5/1999	4/5/1999	31/03/2008	Active	NO
3	U40109AP2000PTC034577	VASANT SOFTWARE SOLUTIONS PRIVATE LIMITED	Director	12/3/2008	2/6/2000	-	Active	NO
4	U24239AP2004PTC043227	VASANT LABS PVT LIMITED	Director	10/5/2004	10/5/2004	-	Active	NO
5	U65990AP2004PTC043558	VASANT FINANCIAL TRANSACTIONS PROCESSING PVT LIMITED	Director	30/06/2004	30/06/2004	-	Strike off	NO
6	U24110AP1988PTC009208	VASANT CHEMICALS Private LTD.	Director	4/8/2005	4/8/2005	-	Active	NO

Name :

Mrs. Vasantha Devi Motaparthi

Designation :

Director

Address :

108, AK Enclave Road No.2, Banjara Hilld, Hyderabad – 500034, Andhra Pradesh, India

Date of Birth/Age :

02.02.1936

Date of Appointment :

25.10.1988

DIN :

00232355

Other Directorship :

Top of Form S.No. Bottom of Form	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	U24110AP1988PTC009208	VASANT CHEMICALS Private LTD.	Director	25/10/1988	25/10/1988	Active	NO
2	U15410AP1996PTC023698	VASANT FOODS Private LIMITED	Director	4/4/2007	4/4/2007	Active	NO

Name :

Mr. Mallikarjuna Rao Pinjala

Designation :

Director

Address :

406, Emerald Block, Sri Vensai Projects Limited, Kompally, Hyderabad – 500014, Andhra Pradesh, India

Date of Appointment :

15.09.2008

DIN :

02376852

Other Directorship :

Top of Form S.No. Bottom of Form	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	U24110AP1988PTC009208	VASANT CHEMICALS Private LTD.	Director	1/7/2009	15/09/2008	Active	NO

Name :

Mr. Panduranga Vittal Jasti

Designation :

Director

Address :

Plot No.11, Durganagar, Colony, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India

Date of Birth/Age :

30.07.1941

Date of Appointment :

25.10.1988

DIN :

00233888

Other Directorship :

Top of Form S.No. Bottom of Form	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	U24110AP1988PTC009208	VASANT CHEMICALS Private LTD.	Director	25/10/1988	25/10/1988	-	Active	NO
2	U45200AP1999PTC031623	Accentia Oak Technologies Private Limited	Director	12/5/2000	12/5/2000	31/03/2008	Active	NO

Name :

Mr. Bhaskar Rao Jasti

Designation :

Director

Address :

Plot No.567, Phase III, Road No.12, Jubilee Hills, Hyderabad – 500038, Andhra Pradesh, India

Date of Birth/Age :

15.06.1942

Date of Appointment :

25.10.1988

DIN :

00233970

Other Directorship :

Top of Form S.No. Bottom of Form	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	U24110AP1988PTC009208	VASANT CHEMICALS Private LTD.	Director	25/10/1988	25/10/1988	19/10/2010	Active	NO
2	U24239AP2004PTC043227	VASANT LABS PVT LIMITED	Director	10/5/2004	10/5/2004	-	Active	NO
3	U45209AP2008PTC057953	RITHVIK RAM INFRASTRUCTURES PRIVATE LIMITED	Managing director	4/3/2008	4/3/2008	-	Active	YES
4	U45200AP2008PTC057965	VAMSI MANAV INFRASTRUCTURES PRIVATE LIMITED	Director	4/3/2008	4/3/2008	-	Active	YES

Name :

Mrs. Lakshmi Jasti

Designation :

Director

Address :

Flat No.603, Balaji Towers, Near Mythri Hospitals, Amerpet, Hyderabad – 500016, Andhra Pradesh, India

Date of Birth/Age :

12.10.1939

Date of Appointment :

25.10.1988

DIN :

00233681

Other Directorship :

Top of Form S.No. Bottom of Form	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	U24110AP1988PTC009208	VASANT CHEMICALS Private LTD.	Director	25/10/1988	25/10/1988	19/10/2010	Active	NO
2	U85110AP1994PTC017918	SURYA PRAKASH HOSPITALS AND DIAGNOSTICS PVT LTD,	Director	13/07/1994	13/07/1994	-	Active	NO
3	U45200AP2004PTC043564	PROTON PROJECTS PRIVATE LIMITED	Director	1/7/2004	1/7/2004	-	Active	NO
4	U85100AP2010PTC068361	RVR HOSPITALS & DIAGNOSTICS PRIVATE LIMITED	Director	10/5/2010	10/5/2010	-	Active	NO

Name :

Mr. Valangaiman Radhananda Kishore Venkataraman

Designation :

Additional Director

Address :

Nanda Vihar, 109-B, 4th Street, Abhiramapuram, Chennai – 600018, Tamil Nadu, India

Date of Birth/Age :

20.12.1957

Date of Appointment :

13.10.2010

DIN :

03317213

Other Directorship :

Top of Form S.No. Bottom of Form	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	U24110AP1988PTC009208	VASANT CHEMICALS Private LTD.	Director	3/8/2011	13/10/2010	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 03.08.2011

Names of Shareholders	No. of Shares
M. Vasanta Devi	761360
GKB Chowdary	618730
G. Tara Chowdary	464120
GKB Chowdary (HUF)	626590
K. N. Murthy	69340
B. Umamaheswara Rao	69340
Dr. J. Lakshmi	56465
V. Madhavi	113900
G. Manjula	163050
I. Haritha	118085
y. Divya	6630
J. Bhaskara Rao	109570
J. Neelima	140170
J. Oeepti	140170
J. Shanti	111090
J.P.R. Vittal	211050
J. Suma Devi	76840
J. Savithri Devi	113315
J. Rahul	59385
Total	4029200

As on 03.08.2011

Category	Percentage
Directors or relatives of Directors	96.56
Other top fifty shareholders	3.44
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Specialty and Performance Chemicals like photo chemicals, photo initiators and photo resistors, Catalysts, Pharma Intermediates and Specialty Dye Intermediates.

Products :

Products Description	ITC Code No.
Specialty Chemicals	29420029

PRODUCTION STATUS As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Mancat 1033	Mts	-	16.00	13.96
DHSDA	Mts	-	20.00	0.00
PAABSA	Mts	-	160.00	0.00
NASDA	Mts	-	10.00	0.00
PNBSC	Mts	-	84.00	71.577
2ABPH	Mts	-	5.00	3.325

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Axis bank Limited, 5-2-183/184, 8751 [Old] III Floor, R.P. Road, Secunderabad – 500003, Andhra Pradesh, India
• State Bank of India, Industrial Finance Branch, Rajbhavan Road, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India
• HDFC Bank Limited

Facilities :

Secured Loan [Rs. in million]	31.03.2011	31.03.2010
Term loans from banks:
Term Loan-SBI	24.822	33.956
Term Loan – AXIS (includes interest accrued and due during the year Rs.0.740 million Includes interest accrued and due during the previous year Rs.0.420 million [Term loan due and repayable within one year Rs.31.375 millions (Previous year Term loan due and repayable within one year Rs.26.075 millions]	30.256	33.945
Working capital loans from banks:
Cash Credit -SBI Bank	11.878	10.174
Cash Credit - Axis Bank	8.024	15.160
E.P.C - SBI Bank (Includes Interest accrued and due during the year Rs. Nil) includes interest accrued and due during (he previous year Rs.Nil)	10.026	7.716
Vehicle loans:
Kotak Mahindra Prime Limited - Car Loan	1.060	0.000
H.D.F.C.Bank Car Loan (includes interest occurred and due during the year Rs.Nil (Includes interest accrued and due during the previous year Rs.nil)	0.839	0.000
Total	86.906	100.951
Unsecured Loan [Rs. in million]	31.03.2011	31.03.2010
Loans From Directors
Loans Form Shareholders
Total	41.676	31.790

Banking Relations :	--
Auditors :
Name :	Raju and Prasad Chartered Accountant
Address :	401, Diamond House, Adj Amrutha Hills, Punjagutta, Hyderabad – 500082, Andhra Pradesh, India
Tel. No.:	91-40-23410404
Fax No.:	91-40-23410403
E-Mail :	Rajuandprasad@gmail.com Hyderabad@rajuandprasad.com
Associates/Subsidiaries :	Vasant Food Private Limited CIN : U15410AP1996PTC023698 Jeedimetla Effluent Treatment Limited Vasant Software Solutions Private Limited Vasant Labs Limited Vasant FTP Limited

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs.10/-each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,029,200	Equity Shares	Rs.10/-each	Rs.40.292 millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs.10/-each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,181,421	Equity Shares	Rs.10/-each	Rs.31.814 millions

During the financial year 2010-11 the company bought back and extinguished 847779 equity shares of Rs.10/- each @Rs.85/- per share.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		31.814	40.292	40.292
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		235.618	290.801	332.323
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		267.432	331.093	372.615
LOAN FUNDS
1] Secured Loans		86.906	100.951	118.589
2] Unsecured Loans		41.676	31.790	29.262
TOTAL BORROWING		128.582	132.741	147.851
DEFERRED TAX LIABILITIES		35.371	32.023	32.023
TOTAL		431.385	495.857	552.489
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		173.560	179.192	230.984
Capital work-in-progress		73.817	2.262	5.393
INVESTMENT		39.841	150.132	175.533
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	84.120	66.897	42.231
	Sundry Debtors	44.683	47.014	59.358
	Cash & Bank Balances	11.985	14.885	2.980
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	64.761	75.854	153.546
Total Current Assets		205.549	204.650	258.115
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	41.066	23.985	26.606
	Other Current Liabilities	0.000	0.000	0.002
	Provisions	20.316	16.394	90.928
Total Current Liabilities		61.382	40.379	117.536
Net Current Assets		144.467	164.271	140.579
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		431.385	495.857	552.489

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	275.772	252.932	231.813
		Other Income	20.292	6.863	12.814
		TOTAL (A)	296.064	259.795	244.627
Less	EXPENSES
		Raw Material Consumed	98.598	103.409	88.651
		Manufacturing and other Expenses	58.273	48.518	88.123
		Administrative Expenses	29.621	23.587	0.000
		Selling Expenses	5.471	6.062	7.223
		Employee Cost	37.014	26.316	0.000
		Loss on sale of Mutual Fund / Investment	10.230	16.248	7.992
		Increase / Decrease in stock	[12.590]	[25.362]	[4.354]
		TOTAL (B)	226.617	198.778	187.635
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		69.447	61.017	56.992
Less	FINANCIAL EXPENSES (D)		17.199	17.743	17.083
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		52.248	43.274	39.909
Less/ Add	DEPRECIATION/ AMORTISATION (F)		24.660	25.856	32.138
	Income tax paid		0.296	0.000	0.000
	PROFIT / LOSS BEFORE TAX (E-F) (G)		27.292	17.418	7.771
Less	TAX (I)		9.648	3.200	2.008
	PROFIT / LOSS AFTER TAX (G-I) (J)		17.644	14.218	5.763
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.139	7.706	13.371
Less	APPROPRIATIONS
		Transfer to General Reserve	2.500	2.000	2.000
		Interim Dividend	0.000	4.029	0.000
		Tax on Interim Dividend	0.000	0.685	0.000
		Proposed Dividend	7.954	6.044	8.058
		Tax on Proposed Dividend	1.290	1.027	1.370
	BALANCE CARRIED TO THE B/S		14.039	8.139	7.706
	EARNINGS IN FOREIGN CURRENCY		208.370	190.730	183.588
	IMPORTS
		Raw Materials	12.110	9.703	17.512
		Capital Goods	1.723	4.108	0.000
	TOTAL IMPORTS		13.833	13.811	17.512
	Earnings Per Share (Rs.)		5.55	3.53	1.43

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.96	5.47	2.35
Net Profit Margin (PBT/Sales)	(%)	9.90	6.89	3.35
Return on Total Assets (PBT/Total Assets}	(%)	7.20	4.54	1.59
Return on Investment (ROI) (PBT/Networth)		0.10	0.05	0.02
Debt Equity Ratio (Total Liability/Networth)		0.71	0.52	0.71
Current Ratio (Current Asset/Current Liability)		3.35	5.07	2.20

LOCAL AGENCY FURTHER INFORMATION

Note : Registered office address of the company has been shifted from 2B, Varun Towers, IIIrd Floor, Begumpet, Hyderabad – 500016, Andhra Pradesh, India to the present address w.e.f. 25.08.2006

REVIEW OF PERFORMANCE DURING THE YEAR 2010-11:

The year has been an eventful year for various reasons. Some of them being, Two of the founder directors have chosen to retire from active business and transfer their shares to the company and have since retired from the Board.

The company has finalized the expansion plans and has initiated to set up a Greenfield project at APSEZ, Atchutapuram.

The details of the above and other events are recorded in the following pages.

The Directors of the company have pleasure to report that the financial year has been encouraging and the results have been on the expected lines. The business of catalysts and the pharma intermediates has grown at a steady pace of 9.03%.

The company has focused on the R and D activities for advanced intermediates and it wishes to introduce to advanced intermediates at the Greenfield project at APSEZ, Atchutapuram.

The Directors of the company are pleased to report that due to the corrective actions and steps initiated during the previous financial year 2009 - 10, the company was able to steer clear of the turbulent European economic crises and the Euro turmoil. The company has recorded sales revenue of Rs.275.712 millions and profit before tax of Rs.27.291 millions. The actual operational profit has been Rs.31.216 millions but due to the capital loss on investments, the profit before tax has come down.

The focus of the company has been on improving the efficiency, productivity and ensuring safety and environment protection at all times. The management is pleased to inform that there is an improvement in the consumption co-efficients and productivity. The focus on reduction of waste generation and recycling has yielded results and the specific water consumption and pollution load has been reduced substantially.

The operations team led by Mr. P.M. Rao, Executive Director (Operations) has focused on developing certain pharma intermediates in addition to improving the operations of the existing products. Their effort has enabled the company to produce the demanded quantity while adhering to the restrictions imposed by A.P. Pollution Control Board on the quantity of production, water consumption and generation of wastewaters. Overall, the management has been able to achieve rationalization of consumption and cost reduction. This has led to improvement of the financials.

Future plans:

As reported in the previous years, due to limited space, proximity to habitation and continued growth of residential areas, the company is unable to add any additional products at its facility in Jeedimetla, Hyderabad.

As per the decision of the members of the company in response to the recommendation of the Board of Directors, the company has acquired about 20 acres of land at APSEZ, Atchutapuram, VisakhapatnamDistfrom APIIC.

After preparation of the detailed project report, the investment for Phase I of the project was estimated to be Rs.320.000 millions including cost of the land. The company approached State Bank of India, Industrial Finance Branch for the term loan and the bank was after due scrutiny has sanctioned the term loan of Rs.200.000 millions vide their letter dated 12.02.2011

In phase I at APSEZ, it is proposed to build a pharma block for manufacturing of pharma intermediates or key starting raw materials for manufacturing of bulk drugs. The civil works have since started. However, there has been delay of more than 3 months due to untimely rains as well as some social disturbances from the local community due to extraneous reasons pertaining to the settlement of the compensation by APIIC. The company has applied for necessary statutory clearances and it is expected to obtain all the necessary clearances by end of August 2011. The construction and installation of the equipment is expected to be completed by end of January 2012 and after necessary testing, the trial production is scheduled to be commenced during March 2012.

ESOP Agreement:

As reported in Directors Report for the year 2009 - 10, a Memorandum of Understanding was entered into with an entrepreneur manager by the company.

The scheme envisages that these entrepreneur manager having 25 - 30 years of The entrepreneur manager has joined the services of the company and started looking after marketing process. As per the ESOP agreement the entrepreneur manager has to be in the services of the company for a period of 6 years to be eligible to the shares of the company. The MOU will be converted into to an ESOP agreement upon fulfilling of the conditions by both the parties in due course of time.

De-Merger:

As reported in the previous Annual Report, the company initiated the de-merger scheme under section 391 and 394 of the Companies Act, 1956 for demerging the non-core assets and the trading activity to Vasant Foods Private Limited, Accordingly, a Company petition was filed as per the provisions of the Companies Act, 1956 before the Hon'ble High Court of Andhra Pradesh and after due consideration the Hon'ble High Court was pleased to pass an order, approving the scheme of arrangement of de-merger vide order dated Monday, 2^nd of August 2010 w.e.f 1^st April, 2009. As per the approved scheme of de-merger, the listed non-core assets, unrelated to the chemical business were transferred to Vasant Foods Private Limited. The scheme of arrangement has since been completed.

Contingent Liabilities

Contingent liabilities not provided for:	31.03.2011	31.03.2010
In respect of Tax matters in appeal	8.389	8.389
In respect of sewerage charges demand by HMWS and S Board	21.340	17.275

Bankers Charges Report as per Registry

Corporate identity number of the company	U24110AP1988PTC009208
Name of the company	VASANT CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1-11-251/1B, 4th Floor, Vasant Towers, Begumpet, Hyderabad – 500016, Andhra Pradesh, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80020968
Type of charge	Book Debts Movable Property Immovable Property
Particular of charge holder	State Bank of India, Industrial Finance Branch, Rajbhavan Road, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India
Nature of instrument creating charge	1. Memorandum for recording extension of mortgage by deposit of title deeds. 2. letter regarding the grant of individual limits within the overall limit
Date of instrument Creating the charge	22.03.2011
Amount secured by the charge	Rs.345.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - WC: 5.40 Above Base rate i.e., 13.65% and TL-1 and TL-2: 5.90% above base rate i.e., 14.15% and TL-3:6.40% above base Rate i,e., 14.65% pa Terms of Repayment – WC: on demand TL: (Rs. in Millions) Year No of Quarters Amt. per quarter Amt p.a. 2012-13 2 5.000 10.000 2013-17 16 7.500 30.000 2017-18 4 10.000 40.000 2018-19 3 10.000 30.000 Margin – Raw Materials Domestic - 25% Imported - 20% Stocks in Process - 25% Finished Goods - 25% Receivables - 25% Letter of Credit - 10% Bank Guarantees - 15% Export Packing Credit - 10% Extent and Operation of the charge - Extension charge on the present and future fixed assets of the company and agricultural lands belonging to Vasant foods Private Limited admeasuring 20.225 Acres at chintalghat Village and Gram panchayat, Kohir Mandal, Medak District under Sy, Nos. 173/A/1, A/2, A/3, A/4, A/5.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of all chargeable current and future assets of the Company Mortgage by way of Deposit of title deeds of the property on 20.225 acres of agricultural land offered as collateral for CC
Date of instrument modifying the charge	06.07.2010
Particulars of the present modification	the current Working capital Limit has been enhanced from Rs. 22.500 to 45.000 millions and there is no change in the Term Loan - 1 and there is new term loan - 2 of Rs. 32.500 millions and term Loan -3 of Rs. 200.000 millions and LCs limit has been enhanced form Rs.7.500 to Rs.15.000 millions and Forward Contract from Rs.2.500 to 3.500 millions and there is no change in BGs.

FIXED ASSETS :

• Factory
• Building
• Plant and Machinery
• Furniture and Fixtures
• Computer
• Office Equipments
• Electrical Installations
• 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.47.80
UK Pound	1	Rs.75.16
Euro	1	Rs.65.11

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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.