MIRA INFORM REPORT

Report Date :

02.04.2012

IDENTIFICATION DETAILS

Name :	CHANDRA KATTHA INDUSTRIES PRIVATE LIMITED
Registered Office :	Kotwali Road, Bijnor, Najibabad, Bijnore – 246 763, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.07.1970
Com. Reg. No.:	20-003349
Capital Investment / Paid-up Capital :	Rs.6.550 millions
CIN No.: [Company Identification No.]	U36109UP1970PTC003349
TAN No.: [Tax Deduction & Collection Account No.]	LKNC05131A
PAN No.: [Permanent Account No.]	AABCC4507E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Kattha Powder.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 57000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well established company having moderate track. There appears some losses being incurred by the company in last three consecutive years. However, 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/ Factory :	Kotwali Road, Bijnor, Najibabad, Bijnore – 246 763, Uttar Pradesh, India
Tel. No.:	91-1341-230200/ 230111
Fax No.:	91-1341-230138
E-Mail :	ruchin.singhal@sancharnet.in chetn0006@gmail.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Rakesh Kumar Agarwal

Designation :

Managing Director

Address :

Chandra House, Station Road, Najibabad, Bijnor – 246 763, Uttar Pradesh, India

Date of Birth/Age :

19.06.1951

Date of Appointment :

01.11.1979

DIN No.:

00933044

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	U21011UP1976PTC004240	Chandra Forest Products Private Limited	Managing director	29-03-76	29-03-76	Active	NO
2	U36109UP1970PTC003349	Chandra Kattha Industries Private Limited	Managing director	01-11-79	01-11-79	Active	NO
3	U21012UP1987PLC008883	Mansarovar Paper And Industries Limited	Director appointed in casual vacancy	27-09-94	27-09-94	Active	NO

Name :

Mrs. Mithlesh Agarwal

Designation :

Director

Address :

Chandra House, Station Road, Najibabad, Bijnor – 246 763, Uttar Pradesh, India

Date of Birth/Age :

01.06.1955

Date of Appointment :

07.10.2004

DIN No.:

00992905

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	U51221UP1987PTC008885	Chandra Beverages Private Limited	Director	20-07-87	20-07-87	Active	NO
2	U65910UP1984PLC006904	Mansarover Financial Sercices Limited	Director	01-12-89	01-12-89	Active	NO
3	U36109UP1970PTC003349	Chandra Kattha Industries Private Limited	Director	07-10-04	07-10-04	Active	NO
4	U21011UP1976PTC004240	Chandra Forest Products Private Limited	Director	16-01-08	16-01-08	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Rakesh Kumar	410
Rakesh Kumar HUF	6613
Mithlesh Agarwal	7671
Akshat Agarwal	50626
Pallavi Agarwal	50
Prachi Agarwal	50

As on 30.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Kattha Powder.

Products :

Item Code No. (ITC Code)	N.A.
Product Description	Kattha
Item Code No. (ITC Code)	32
Product Description	Cutch

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	2010-2011
a) Licensed Capacity	No Licence
b) Installed Capacity per annum (As certified by the Management and not verified by the Auditors)
Kattha (Approximately)	420 M.T.
Cutch (Approximately)	840 M.T.
c) Actual Production
Kattha	264.106 M.T.
Cutch	531.350 M.T.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Bank of Baroda, Station Road, Najibabad – 246 763, Uttar Pradesh, India

v State Bank of India, Haridwara Road, Najibabad – 246 763, Uttar Pradesh, India

v ICICI Bank Limited

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
A. From Bank of Baroda
Cash Credit (Hypothecation), Najibabad	20.793	7.042
Cash Credit (Hypothecation, Adhoc), Najibabad	5.062	0.000
Cash Credit (Hypothecation), Delhi	2.472	1.443
Cash Credit (Book Debts), Najibabad	0.000	3.603
B. Others for Car
ICICI Bank Limited	0.000	0.247
Total	28.327	12.335

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Directors, Shareholders and Others	13.421	15.271
Total	13.421	15.271

Banking Relations :	--
Auditors :
Name :	SSRA and Company Chartered Accountants
Address :	Bharat Complex, Kotwali Road, Najibabad – 246 763, Uttar Pradesh, India
Tel. No.:	91-1341-230603
Income-tax PAN of auditor or auditor's firm :	AACFS6403P

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
97500	Equity Shares	Rs.100/- each	Rs.9.750 millions
2500	Preference Shares	Rs.100/- each	Rs.0.250 million
	Total		Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
65500	Equity Shares	Rs.100/- each	Rs.6.550 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		6.550	1.150	1.150
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7.721	11.941	11.996
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		14.271	13.091	13.146
LOAN FUNDS
1] Secured Loans		28.327	12.335	10.580
2] Unsecured Loans		13.421	15.271	13.169
TOTAL BORROWING		41.748	27.606	23.749
DEFERRED TAX LIABILITIES		0.000	0.000	0.196
TOTAL		56.019	40.697	37.091
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.655	7.822	7.439
Capital work-in-progress		2.759	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.051	0.027	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	54.708	39.879	47.845
	Sundry Debtors	8.737	11.419	13.035
	Cash & Bank Balances	1.859	1.437	0.431
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	21.444	18.715	10.717
Total Current Assets		86.748	71.450	72.028
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35.766	35.100	38.993
	Other Current Liabilities	2.251	1.645	1.776
	Provisions	2.177	1.857	1.607
Total Current Liabilities		40.194	38.602	42.376
Net Current Assets		46.554	32.848	29.652
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		56.019	40.697	37.091

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	176.522	167.527	154.578
		Other Income
		TOTAL (A)	176.522	167.527	154.578
Less	EXPENSES
		Office Expenses	174.841	163.826	152.896
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	174.841	163.826	152.896
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.681	3.701	1.682
Less	INTEREST & FINANCIAL EXPENSES (D)		3.314	2.127	2.693
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(1.633)	1.574	(1.011)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.106	1.129	1.385
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(2.739)	0.445	(2.396)
Less	TAX (H)		1.481	0.499	0.489
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(4.220)	(0.054)	(2.885)
	BALANCE CARRIED TO THE B/S		(4.220)	(0.054)	(2.885)
	Earnings/ (Loss) Per Share (Rs.)		(64.43)	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(2.39)	(0.03)	(1.87)
Return on Total Assets (PBT/Total Assets}	(%)	(2.93)	0.56	(3.02)
Return on Investment (ROI) (PBT/Networth)		(0.19)	0.03	(0.18)
Debt Equity Ratio (Total Liability/Networth)		5.74	5.06	5.03
Current Ratio (Current Asset/Current Liability)		2.16	1.85	1.70

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

During the year, the Sale and Other Income of the Company were Rs.176.522 millions as compared with Rs.167.527 millions in previous year. There is loss of Rs.2.739 millions during the year where as there is Profit of Rs.0.445 million.

Bankers Charges Report as per Registry

Corporate identity number of the company	U36109UP1970PTC003349
Name of the company	CHANDRA KATTHA INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Kotwali Road, Bijnor, Najibabad, Bijnore – 246 763, Uttar Pradesh, India E-Mail: chetn006@gmail.com
This form is for	Creation of charge
Type of charge	Immovable Property Book Debts Movable Property (not being pledge)
Particular of charge holder	Bank of Baroda, Station Road, Najibabad – 246 763, Uttar Pradesh, India E-Mail: najiba@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Composite Hypothecation Agreement-17B and Supplemental Memorandum of Entry LDOC90G for Adhoc Limit of Rs.10.000 millions sanctioned for 90 Days.
Date of instrument Creating the charge	21.01.2012
Amount secured by the charge	Rs.10.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 5.50% over Base Rate i.e. presently 16.25% p.a. with monthly rest Terms of Repayment: Cash Credit [ADHOC] Limit payable on demand Margin: 25% on stock and 40% on book debts Extent and Operation of the charge: Full
Short particulars of the property charged	Extension E.M. of Factory Land and Building situated at Khata No.77, Khasra No.210 kh and 211kh measuring 0.027 and 0.190 hec. Total Area 0.217 hec. situated at Village Daryapur, Kotwali Road, Najibabad. Extension E.M. of Factory Land and Building situated at Khata No.77, khasra No.157 Mi, 165 min measuring 0.272 and 0.209 hec. Total Area 0.481 hec. situated at Village Chhaper Kotwali Road, Najibabad.

FIXED ASSETS:

v Land (Freehold)

v Agricultural Land

v Building

v Plant and Machinery

v Office Equipment

v Air Conditioner and Cooler

v Telephone

v Furniture and Fixtures

v Laboratory Equipment

v 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.51.15
UK Pound	1	Rs.81.80
Euro	1	Rs.68.34

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		32

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.