MIRA INFORM REPORT

Report Date :

30.09.2011

IDENTIFICATION DETAILS

Name :	KISAN MOULDINGS LIMITED
Registered Office :	Tex Centre', 'K’ Wing, 3rd Floor, 26 'A', Chandivli Road, Near HDFC Bank, Off. Saki-Vihar Road, Andheri (East), Mumbai - 400 072, Maharashtra.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.11.1989
Com. Reg. No.:	11-054305
Capital Investment / Paid-up Capital :	Rs. 136.381 Millions
CIN No.: [Company Identification No.]	U17120MH1989PLC054305
TAN No.: [Tax Deduction & Collection Account No.]	MUMK05663A
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of PVC Pipes, Suction Hose Pipes and HOPE Pipes, Furniture of Plastics, Flush Tank and All Kinds of Fittings of PVC Resin
No. of Employees :	600 (Approximately)

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 2500000
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.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
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 / Head Office :	Tex Centre', 'K’ Wing, 3rd Floor, 26 'A', Chandivli Road, Near HDFC Bank, Off. Saki-Vihar Road, Andheri (East), Mumbai - 400 072, Maharashtra, India.
Tel. No.:	91-22 - 2847 8505, 2847 8549 / 50 / 52.
Fax No.:	91-22-2847 8508.
Email :	customercare@kisangroup.com
Website :	www.kisangroup.com
Factory 1 :	Survey No. 64/1, 63/1, 70, 71, 72, 74/1/1 Village - Mahagaon, Taluka - Palghar, Boisar District Thane., Maharashtra, India
Factory 2 :	Survey No. 34/1/1, Village-Umerkui, Silvassa- D. and N. H. (U. T).
Factory 3 :	Plot No.67 to 74 and 80 to 89, Birkoni Industrial Area, Mahasammund, Chhattisgarh - 493 445, India
Factory 4 :	Plot No 5/A/5 Industrial Area No. 2, Dewas – 455001, Madhya Pradesh, India
Factory 5 :	Plot No 127/2 , 128/1, Village Bir Plassi, Tehsil Nalagarh , Solan -174101, Himachal, India
Factory 6 :	Plot No. 172-B and 173 A, Village Nagenahalli, Kore Hobli, Tumkur Taluka, District Tumkur, Karnataka, India
Factory 7 :	Plot No. H-41 to H-53, RIICO Industrial Area, Phulera, District Jaipur, Rajasthan, India
Branches :	Located At · Noida · Mohali · Indore · Raipur · Ahmedabad · Bangalore · Secunderabad · Jaipur · Kolkata

DIRECTORS

AS ON 31.03.2011

Name :	Mr. Ramesh J. Aggarwal
Designation :	Chairman
Name :	Mr. Vijay J. Aggarwal
Designation :	Vice Chairman and Whole Time Director
Name :	Mr. Ashok J. Aggarwal
Designation :	Vice Chairman - 2
Name :	Mr. R. D. Suvarna
Designation :	Director
Name :	Mr. Kunal R. Aggarwal
Designation :	Director
Name :	Mr. S. K. Jain
Designation :	Director
Name :	Mr. T. B. Subramaniam
Designation :	Director
Name :	Mr. Sunil Goyal
Designation :	Director
Date of Appointment:	24.12.2005
Name :	Mr. Sanjeev A. Aggarwal
Designation :	Joint Managing Director
Name :	Mr. Satish J. Aggarwal
Designation :	Managing Director

KEY EXECUTIVES

Name :	Rathi and Associates
Designation :	Company Secretary
SHAREHOLDERS'/INVESTORS' GRIEVANCE COMMITTEE :	Mr. S. K. Jain – Chairman Mr. Vijay J. Aggarwal Mr. T. B. Subramaniam Mr. Ashok J. Aggarwal
PERFORMANCE REVIEW COMMITTEE :	Mr. Satish J. Aggarwal - Chairman Mr. Sanjeev A. Aggarwal Mr. T. B. Subramaniam Mr. Sunil Goyal

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2011

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
		As a % of (A+B+C)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	5,538,271	40.61
Bodies Corporate	1,501,422	11.01
Sub Total	7,039,693	51.62
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	7,039,693	51.62
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	3,457,599	25.35
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	2,197,987	16.12
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	908,918	6.66
Any Others (Specify)	33,983	0.25
Non Resident Indians	30,612	0.22
Clearing Members	3,371	0.02
Sub Total	6,598,487	48.38
Total Public shareholding (B)	6,598,487	48.38
Total (A)+(B)	13,638,180	100
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	13,638,180	100

BUSINESS DETAILS

Line of Business :

Manufacturer of PVC Pipes, Suction Hose Pipes and HOPE Pipes, Furniture of Plastics, Flush Tank and All Kinds of Fittings of PVC Resin

Products :

Products	ITC Code No.
All Kinds of Fittings of PVC Resin	9174000
Flush Tank	39229000
PVC Pipes, Suction Hose pipes and HOPE Pipes	39172390
Furniture of Plastics	94037000

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
PVC O’Ring Pipes ,Agri Fitting, Gamel	MT	65905	80,367,309(Pcs) # 33,219 (Rolls) #
Composite Pipes and Fittings	MT	2000	7,53,313 (Mtr) 1,82,164 (Pcs)
Flush Tank and Toilet Seat Cove	PCS	156000	23,017
Moulded Furniture, Creates and Soop	MT	11135	25,09,569
PVC Solvent	LTR	NA	8,03,873
Rubber Lubricant	KGS	NA	15,244

* Installed capacity is as certified by the Management and relied on by the Auditors without verification, being a

technical matter.

# Includes Products Processed by Third Parties.

GENERAL INFORMATION

Customers :

· B. R. Shirke Construction Technology Private Limited.

· Indian Petrochemicals Corporation Limited

· Hiranandani Constructions

· Lloyds Steel

· Peninsula Land Limited

· Raheja

· Kalpataru

· Lokhandwala Developers Private Limited

· Haware

· Great Eastern Shipping and Const

· Voltas

· Eden Garden

· D. S. Gupta Constructions Private Limited.

· Evershine

· Jain Housing

· Pioneer Contractors

· Dhanalaxmi Enterprises

· JMC Construction

· Sankalp Structures Private Limited.

· Suyog Builders

· Maharashtra Jeevan Pradhikaran

· L and T

· HCC Limited.

· Unity Infra Projects Limited.

· BHEL

· Rajkot Muncipal Corporation

· Rain Tree Park [UM MALAYSIA TOWNSHIP]

· Ramkey Engineers

No. of Employees :

600 (Approximately)

Bankers :

· Punjab National Bank

· Union Bank of India

· The Shamrao Vithal Co-operative Bank Limited

· IDBI Bank Limited

· Barclays Bank PLC

· ICICI Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Term Loans
From Banks (Due within one year Rs. 85.168 millions Previous year Rs. 59.354 millions)	727.487	399.948
Working Capital Loans from Banks	902.179	681.777
Vehicle and other Loans	6.305	5.054
Total	1635.971	1086.779
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Directors, their Relatives, Shareholders (Previous Year includes Firms in which Directors are interested)	1.038	3.784
Deposits from Dealers	7.634	7.607
Inter-corporate Loans	14.771	1.961
Total	23.443	13.352

Banking Relations :	--
Statutory Auditors
Name :	Mittal and Associates Chartered Accountant
Address :	105, M.K. Bhavan, 300, Shahid Bhagat Singh Road, Fort, Mumbai -400 001, Maharashtra, India
Tel no. :	91-22-30287900/1
Fax No.:	91-22-30287904
Audit Committee :	Mr. T. B. Subramaniam - Chairman Mr. Sunil Goyal Mr. S. K. Jain Mr. R. D. Suvarna
Associates/Joint Ventures:	· Kisan Irrigations Limited · Polson Investment and Finance Private Limited · Zitura Investment and Finance Private Limited. · Reliance Industrial Products · Spread Fintrade Limited · Classic Creations Impex Private Limited. · Softline Securities Private Limited · Leeward Investment and Finance Private Limited. · Vijay Steel Traders · Kisan Distributors · Jay Ambe Enterprises · Lotus Space Private Limited. · Jaisal Finance Private Limited · Ess Ess Bathroom Products Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13638180	Equity Shares	Rs.10/- each	Rs. 136.382 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		136.381	89.898	70.382
2]Optionally Fully Convertible Warrants Application Money		0.000	67.596	56.353
3] Reserves & Surplus		510.787	320.204	244.692
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		647.168	477.698	371.427
LOAN FUNDS
1] Secured Loans		1635.971	1086.779	613.692
2] Unsecured Loans		23.443	13.352	16.423
TOTAL BORROWING		1659.414	1100.131	630.115
DEFERRED TAX LIABILITIES		64.932	51.780	44.769
TOTAL		2371.514	1629.609	1046.311
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		855.534	676.402	407.631
Capital work-in-progress		53.946	54.839	16.127
INVESTMENT		4.358	4.359	3.111
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	864.672	519.896	375.688
	Sundry Debtors	752.764	587.797	459.744
	Cash & Bank Balances	332.822	66.471	41.857
	Other Current Assets	47.258	27.989	25.221
	Loans & Advances	135.456	92.098	61.672
Total Current Assets		2132.972	1294.251	964.182
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	554.520	312.777	280.994
	Other Current Liabilities	104.821	72.019	55.157
	Provisions	15.955	15.446	8.589
Total Current Liabilities		675.296	400.242	344.740
Net Current Assets		1457.676	894.009	619.442
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2371.514	1629.609	1046.311

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2756.283	1958.840	1511.806
		Other Income	8.862	10.740	3.075
		TOTAL (A)	2765.145	1969.580	1514.881
Less	EXPENSES
		Cost of Materials Consumed, Purchases etc	2084.345	1373.130	1006.549
		Manufacturing Expenses	296.866	236.664	174.519
		Payments to / Provisions for Employees	135.553	79.648	72.517
		Administrative and Selling Expenses	245.538	162.377	162.040
		Increase in Work-in-process and Finished goods Stocks	(295.669)	(93.383)	(72.503)
		TOTAL (B)	2466.633	1758.436	1343.122
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		298.512	211.144	171.759
Less	FINANCIAL EXPENSES (D)		146.707	84.025	74.332
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		151.805	127.119	97.427
Less/ Add	DEPRECIATION/ AMORTISATION (F)		73.558	55.037	52.367
	PROFIT BEFORE TAX (E-F) (G)		78.247	72.082	45.060
Less	TAX (I)		16.776	26.012	15.336
Less	Extra – Ordinary Items		24.245	0.000	0.000
	PROFIT AFTER TAX (G-I) (J)		37.226	46.070	29.724
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		194.096	165.972	149.482
Less	APPROPRIATIONS
		Transfer to General Reserve	2.500	2.500	5.000
		Dividend	13.638	13.246	7.038
		Tax on Dividend	2.318	2.200	1.196
	BALANCE CARRIED TO THE B/S		212.866	194.096	165.972
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	5.664	1.655	10.772
		Export Machinery	0.000	4.285	0.000
	TOTAL EARNINGS		5.664	5.940	10.772
	IMPORTS
		Raw Materials	151.201	109.624	103.938
		Capital Expenditures	2.937	8.425	14.074
		Finished Goods	0.000	14.067	23.012
	TOTAL IMPORTS		154.138	132.116	141.024
	Earnings Per Share (Rs.)		4.51	5.87	4.22

QUARTERLY RESULTS

(Rs. In Millions)

PARTICULARS	30.06.2011
Net Sales	619.850
Total Expenditure	530.040
PBIDT (Excl OI)	89.810
Other Income	0.060
Operating Profit	89.870
Interest	44.510
Exceptional Items	0.000
PBDT	45.360
Depreciation	22.710
Profit Before Tax	22.650
Tax	8.940
Provisions and contingencies	0.000
Profit After Tax	13.710
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	13.710

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.35	2.34	1.96
Net Profit Margin (PBT/Sales)	(%)	2.84	3.68	2.98
Return on Total Assets (PBT/Total Assets}	(%)	2.62	3.66	3.28
Return on Investment (ROI) (PBT/Networth)		0.12	0.15	0.12
Debt Equity Ratio (Total Liability/Networth)		3.71	3.25	2.75
Current Ratio (Current Asset/Current Liability)		3.16	3.23	2.80

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE:

The Company continued to maintain its upward trend by registering Sales of Rs. 2756.283 millions as against Rs. 1958.840 millions in the previous year. Profit before Depreciation, Interest and Tax has increased from Rs. 211.145 millions to Rs. 298.513 millions. After providing for Interest and Depreciation amounting to Rs. 146.707 millions and Rs. 73.558 millions respectively, the Profit before Tax for the year has amounted to Rs. 78.248 millions as compared to Rs 72.082 millions in the previous year. Net profit After Tax for the year has decreased to Rs. 37.226 millions as compared to Rs 46.070 millions in the previous year which was mainly because of Extra - Ordinary Items. After adding Rs. 194.096 millions being the balance brought forward from previous year, the balance available for appropriations stands at Rs. 231.322 millions.

Barring unforeseen circumstances, the Directors are confident of achieving better results in the ensuing year.

Demerger of "Roha and Silvasa Undertakings" of Kisan Irrigations Limited as going concern into Kisan

Mouldings Limited:

The Scheme of Arrangement of Demerger of Roha and Silvassa Undertakings ("the demerged Undertakings") of Kisan Irrigations Limited as going concern to Kisan Mouldings Limited has been approved by the Board of Directors on February 12, 2011 and submitted to Bombay Stock Exchange Limited for In - principle approval.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Subject has been the pioneer of a new trend in the manufacturing industry known for its unconventional innovations. The glory of Plastic itself needs no introduction. The Company has carved a niche in the field of pipes and fittings for Water Management, Irrigation, Water Distribution and Sewage Disposal Systems. The Company is a large manufacturer of Plastic Moulded Fittings and Furniture, with an objective to provide best quality standard products to its customers. The Company is one of the largest manufacturers of multiple application of pipes for water supply, sanitation, sewerage, construction, cable ducting, drinking water, tube wells, submersible pumps and other polymer products for various uses. To meet the customer demand at every level is the vital force that drives the organization towards higher performances standards of manufacturing and product quality. To achieve this at every stage of manufacturing cycle, the Company has set the important "5M"s of management which is Money, Manpower, Method, Materials and Machine. The money i.e. funds are utilized to get the best manpower and by using a proper method and best materials and machine, excellent quality of products are manufactured. Their well-qualified professionals are embedded with strong leadership skills along with undying commitment to live up to the deadlines.

INDUSTRY STRUCTURE AND DEVELOPMENT :

The economic reforms launched in India since 1991, have added further fillip to the Indian plastic industry. Since its inception in 1989 the Company has grown into a multi - location Company from single product Company. Today the Company is manufacturing a wide range of semi - urban products like PVC Pipes and Fittings for Plumbing and Sanitary applications, PVS Casing Pipes, Submersible rising main Pipes & ABS/PP moulded Flushing Cisterns under the Brand "KisaN".

The Company has enunciated a steady growth with a turnover of Rs. 3000.000 millions by augmentation of products, services and markets. To reach this enviable position, the Company has put in tremendous hard work along with strategic planning at every step. The Company has extended its reach in almost all major cities of the nation with 12 branch offices. It efficiently caters to more than 3000 strong dealer networks. With more than 7 manufacturing facilities across India, Kisan is one of the most entrenched producers of Plastic and Polymer Pipes that hold an aptitude to handle large scale orders effortlessly.

BUSINESS PERFORMANCE:

The year gone by was a year full of challenges for the Company. Hefty and hectic increase in BLR by RBI during the year has constrained their margins. Due to uncertainty and increase in crude price has further affected their margins. Despite all odds Kisan has given a phenomenal growth in sales. The Scheme of Arrangement of Demerger of Roha and Silvassa Undertakings of Kisan Iarrigations Limited as a going concern into the Kisan Mouldings' fold to provide focused management attention, improve management coordination and efficiency and to diversify the market area and for resource raising. Further, the Company has launched a new range of Classic Pipes in the eight states of Punjab, Delhi, Haryana, Gujarat, Madhya Pradesh, Assam, Chattisgarh and Rajasthan, in order to expand the business. The Company has benchmarked quality in Fittings in the Indian market. Today, the Company have become expert in offering fittings that are developed in conformation with relevant national and international standards and made from the highest quality resin.

FUTURE OUTLOOK:

The Company sets long term goals by foreseeing the optimistic approach of the increasing demand for plastic products in the world market in the coming years. Perceptibly it has bright future, the Company has built itself to face each and every market challenge. Their Company is sure of achieving its goals by its un-definable operational efficiencies.

The Company seeks to be a cost effective high quality producer and is focused on maintaining its cost competitiveness in order to avail benefits of large scale production at one place and therefore it is in process to relocate its existing manufacturing units at one place. In the next decade (2011-2020), the challenge will be to reach water to more than 800 lakh hectares of cultivable land and tap water for drinking and sanitation to over 45% of our rural population. And to better serve this growing demand, KML has launched a new range of Classic Pipes in the eight states. Classic Pipes, along with Fittings, are the pinnacle of their innovations and are aimed at satisfying every need of our discerning customers.

The Company has applied for Merger of Roha and Silvassa Undertakings to be demerged from Kisan Irrigations Limited. This merger will surely boost presence of KML and reckon it a significant force and improve the realization. After merger the Company will have almost all piping requirements. The Company has already very significant market share in fittings. The Tumkur plant near Bangalore will establish their strong hold in Southern part of India, where the Company is already having significant presence. Furniture Division has got good response from the rural India.

FIXED ASSETS

· Leasehold Land

· Factory Building

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Patents Trade Marks

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2011.

(Rs. In Millions)

Particulars	3 Month Ended 30.06.2011 Unaudited
chal babu varshu bala bye take care go nicely at home ok fine chal babu varshu bala bye take care go nicely at home ok fine Operating Income
a) Net Sales / Income from Operations	619.828
b) Other Operating Income	0.024
Total Operating Income	619.852
Expenditure
(a) (Increase)/decrease in Stock in Trade	(112.283)
(b) Consumption of Raw Materials	405.396
(c) Employees Cost	32.136
(d) Depreciation	22.707
(e) Other Expenditure	135.964
(f) Purchase of Traded Goods	68.836
Total Expenditure	552.755
Profit / (Loss) From Operations before other Income Interest & Exceptional Items	67.097
Other Income	0.061
Profit/(Loss) before Interest and Exceptional items	67.158
Interest	44.509
Profit / (Loss) after interest before Exceptional items	22.649
Exceptional Items	--
Net Profit/(Loss) after exceptional item	22.649
Tax Expenses	8.935
Net Profit/(Loss) after tax	13.713
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )	136.382
Basic and Diluted EPS (Rs.)	1.01
Public Share Holding
Number of Shares	6631467
Percentage of Shareholding	48.62
Promoters and Promoter group share holding
a) Pledged / Encumbered
- Number of Shares	715000
- Percentage of share (as a % of the total shareholding of promoter and promoter group)	10.16
- Percentage of shares(as a % of the total share capital of the company)	5.24
b) Non-encumbered
- Number of Shares	6324693
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	68.84
- Percentage of Share (as a % of the total share capital of the company)	46.37
SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED
PVC Pipes and Fittings	510.950
Moulded Furniture’s	91.275
C. P. Fittings	17.603
Total	619.828
SEGMENT RESULTS
Profit before tax and interest
PVC Pipes and Fittings	57.770
Moulded Furniture’s	6.880
C. P. Fittings	2.509
Total Profit Before Tax and Interest	67.158

Notes :

1. The above results have been reviewed by the Audit Committed and approved by board of Directors at their meeting held on August 12, 2011

2. In accordance with the requirements of clause 41 of the Casting Agreement, the above financial results have under gone limited review by the Statutory Auditors of the Company.

3. The details of number of investor’s complaints for the quarter ended 30^th June, 2011.

Beginning-0, Received-0, Disposed off 0 and Pending – 0

4. The Marketing and Distribution Agreement with ESS ESS Bathroom Products Private Limited has been discontinued from 30^th June, 2011, consequently, sales of C P. Fittings have dropped significantly compared to previous year.

5. The figures of corresponding period of previous year of quarter have been regrouped / restarted, wherever necessary,

6. Due to the nature of business and common facilities for various segments a reasonable allocation of capital employed to various segments is not currently practible.

WEB SITE DETAILS

PROFILE

Since 1982, Subject Group of Companies has been the progenitor of a new trend in the manufacturing industry. Known for its unconventional innovations, Subject has carved a niche in the field of pipes and fittings for Water Management, Irrigation, Water Distribution and Sewage Disposal Systems.

Kisan Group of companies has procured recognition in the manufacturing and marketing industry under the brand name 'Kisan'. It has bagged reputation not only in India but also, across the globe.

A synonym to superior quality, it offers a wide array of customer-centric products for irrigation, building and construction, industrial piping and effluent piping purposes. Also, the company manufactures custom moulded articles and moulded furniture. Marking a turnover of Rs. 5000.000 millions, Kisan has enunciated a steady growth by augmentation of products, services and markets. To reach this enviable position, Kisan has put in tremendous hard work along with strategic planning at every step.

In the next decade (2011-2020), the challenge will be to reach water to more than 800 lakh hectares of cultivable land and tap water for drinking and sanitation to over 45% of our rural population. And to better serve this growing demand, Subject has launched a new range of Classic Pipes in the eight states of Punjab, Delhi, Haryana, Gujarat, Madhya Pradesh, Assam, Chattisgarh and Rajasthan.

Subject Group of Companies has extended its reach in almost all major cities of the nation. With 13 branch offices, it efficiently caters to the more than 3000 strong dealer networks. On the basis of this large network, "Kisan" competently services its valued customers and successfully adds value to the ever growing need across the nation. With more than 9 manufacturing facilities across India, Subject is one of the most entrenched producers of Plastic and Polymer Pipes that hold an aptitude to handle large scale orders effortlessly. Acknowledged for its tendency of undying commitment for timely delivery, Subject Group of Companies is accredited as an ultimate choice, by the quality conscious customers.

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. 48.92
UK Pound	1	Rs. 76.52
Euro	1	Rs. 66.64

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	YES
--LISTED	YES/NO	YES
--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.