MIRA INFORM REPORT

Report Date :

23.01.2012

IDENTIFICATION DETAILS

Name :	RAJAM INDUSTRIES PRIVATE LIMITED

Registered Office :	2/ 95, Mount Poonamallee Road, Kattupakkam, Chennai-600056, Tamilnadu

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	07.04.1998

Com. Reg. No.:	18-40290

Capital Investment / Paid-up Capital :	Rs.10.000 Millions

CIN No.: [Company Identification No.]	U24246TN1998PTC040290

TAN No.: [Tax Deduction & Collection Account No.]	CHER02487C

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Dealer of Detergent Powder and Detergent Soap etc.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 530000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. There appears some dip in the turnover of the company. However, 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 – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	2/ 95, Mount Poonamallee Road, Kattupakkam, Chennai-600056, Tamilnadu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	samuthukumar@dataone.in

DIRECTORS

As on 12.09.2011

Name :

Mrs. Nalini Selvaraj

Designation :

Managing Director

Address :

O. No. 21, N. No. 24, Mylai Renganatha Mudaliar St, Thiyagarajanagar, Chennai-600017, Tamilnadu, India

Date of Birth/Age :

20.05.1959

Date of Appointment :

24.06.2009

Din No.:

02507243

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	U55101TN1990PTC019524	RAJAM HOTELS PRIVATE LIMITED	Managing director	10-07-09	16-08-90	Active	NO
2	U15411TN2005PTC056229	RAJAM FOODS PRIVATE LIMITED	Managing director	11-05-05	11-05-05	Active	NO
3	U24246TN1998PTC040290	RAJAM INDUSTRIES PRIVATE LIMITED	Managing director	09-07-09	24-06-09	Active	NO
4	U70100TN2010PTC074287	RAJAM ESTATES PRIVATE LIMITED	Managing director	18-01-10	18-01-10	Active	NO

Name :

Mr. Gnanaraj Duraisamy

Designation :

Director

Address :

No. 5, 6^th Cross Street, Lake Area, Nungambakkam, Chennai-600034, Tamilnadu, India

Date of Appointment :

07.04.1998

Din No.:

01309199

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	U55101TN1990PTC019524	RAJAM HOTELS PRIVATE LIMITED	Director	16-08-90	16-08-90	Active	NO
2	U24246TN1998PTC040290	RAJAM INDUSTRIES PRIVATE LIMITED	Director	07-04-98	07-04-98	Active	NO
3	U15411TN2005PTC056229	RAJAM FOODS PRIVATE LIMITED	Director	11-05-05	11-05-05	Active	NO
4	U70100TN2010PTC074287	RAJAM ESTATES PRIVATE LIMITED	Director	18-01-10	18-01-10	Active	NO

Name :

Mr. Amirtharaj Selvaraj

Designation :

Director

Address :

New No. 24, Old No. 21, Mylai Ranganathan Street, T. Nagar, Chennai-600017, Tamilnadu, India

Date of Birth/Age :

30.08.1983

Date of Appointment :

24.06.2009

Din No.:

02390963

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	U55101TN1990PTC019524	RAJAM HOTELS PRIVATE LIMITED	Whole-time director	02-11-09	23-03-04	Active	NO
2	U15411TN2005PTC056229	RAJAM FOODS PRIVATE LIMITED	Director	11-05-05	11-05-05	Active	NO
3	U24246TN1998PTC040290	RAJAM INDUSTRIES PRIVATE LIMITED	Director	18-09-09	24-06-09	Active	NO
4	U70100TN2010PTC074287	RAJAM ESTATES PRIVATE LIMITED	Director	18-01-10	18-01-10	Active	NO

Name :

Mr. Anandaraj Selvaraj

Designation :

Director

Address :

New No. 24, Old No. 21, Mylai Ranganathan Street, T. Nagar, Chennai-600017, Tamilnadu, India

Date of Birth/Age :

10.01.1988

Date of Appointment :

24.06.2009

Din No.:

02720007

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	U24246TN1998PTC040290	RAJAM INDUSTRIES PRIVATE LIMITED	Director	18-09-09	24-06-09	Active	NO
2	U15411TN2005PTC056229	RAJAM FOODS PRIVATE LIMITED	Director	24-09-09	10-07-09	Active	NO
3	U55101TN1990PTC019524	RAJAM HOTELS PRIVATE LIMITED	Whole-time director	05-04-10	10-07-09	Active	NO
4	U70100TN2010PTC074287	RAJAM ESTATES PRIVATE LIMITED	Director	18-01-10	18-01-10	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 12.09.2011

Names of Shareholders		No. of Shares
Nalini Selvaraj		240000
Amirtharaj Selvaraj		150000
Anandaraj Selvaraj		150000
Gnanaraj Duraisamy		400000
Rajapriya Selvaraj		60000

TOTAL		1000000

As on 12.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturer and Dealer of Detergent Powder and Detergent Soap etc.

Products :

Product Description	Item Code No.
Detergent Soaps and Detergent Powders	3401.20

PRODUCTION STATUS [AS ON 31.03.2011]

Iyyappanthangal Units
Licensed Capacity	148 H.P
Installed Capacity	106 H.P

Actual Production:

Particular	Unit	Quantity
Rs. 10 Detergent Cakes [40 Pcs. Of 350 gms each]	Boxes	5007
Rs.5 Detergent Cakes [60 Pcs. Of 175 gms each]	Boxes	39044
Rs.5 Detergent Cakes [60 Pcs. Of 165 gms each]	Boxes	2751
Rs.35 Soap Powder [10 Pouches of 1 Kg each]	Bundles	4248
Rs.18 Soap Powder [20 Pouches of 500 gms each]	Bundles	3224
Rs.5 Soap Powder [100 Pouches of 125 gms each]	Bundles	1855
Rs.2 Soap Powder [100 Pouches of 40 gms each]	Bundles	3252
Rs.1 Soap Powder [200 Pouches of 20 gms each]	Bundles	2641

Kattupakkam Units
Licensed Capacity	148 H.P
Installed Capacity	94 H.P

Actual Production:

Particular	Unit	Quantity
Rs.10 Detergent Cakes [60 Pcs. Of 275 gms each]	Boxes	7092
Rs.7 Detergent Cakes [60 Pcs of 225 gms each]	Boxes	4648
Rs.6.50 Detergent Cakes [60 Pcs of 225 gms each]	Boxes	27270

Boothakudi Units
Licensed Capacity	111 KW
Installed Capacity	111 KW

Actual Production:

Particular	Unit	Quantity
Rs.2 Detergent Cakes [80 Pcs of 90 gms each]	Boxes	9575

GENERAL INFORMATION

Bankers :

Axis Bank Limited, No.82, Dr. Radhakrishnan Salai, Mylapore, Chennai-600004, Tamilnadu, India


Banking Relations :	--

Auditors :
Name :	V.N. Associates Chartered Accountants
Address :	New No.8, Kennedy, 1^st Street, Mylapore, Chennai – 600 004, Tamilnadu, India
Pan No.:	AAEPN6377K

CAPITAL STRUCTURE

As on 12.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 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		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		123.369	120.010	113.587
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		133.369	130.010	123.587
LOAN FUNDS
1] Secured Loans		0.000	0.000	39.493
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	39.493
DEFERRED TAX LIABILITIES		0.844	4.897	7.998

TOTAL		134.213	134.907	171.078

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		28.324	28.100	22.964
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.786	45.668	49.063
	Sundry Debtors	65.104	53.775	43.952
	Cash & Bank Balances	12.257	2.820	0.602
	Other Current Assets	4.153	6.224	0.000
	Loans & Advances	25.047	40.719	73.533
Total Current Assets		134.347	149.206	167.150
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	14.344	28.162	14.582
	Other Current Liabilities	14.116	14.224	3.064
	Provisions	0.061	0.057	1.390
Total Current Liabilities		28.521	42.443	19.036
Net Current Assets		105.826	106.763	148.114

MISCELLANEOUS EXPENSES		0.063	0.044	0.000

TOTAL		134.213	134.907	171.078

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	175.718	354.430	305.855
		Other Income	0.262	0.080	0.408
		TOTAL	175.980	354.510	306.263

Less	EXPENSES
		Office Expenses
		Administrative Expenses	171.426	348.087	300.645
		Advertising Expenses
		TOTAL	171.426	348.087	300.645

	PROFIT BEFORE TAX		4.554	6.423	5.618

Less	TAX		0.844	0.992	1.336

	PROFIT AFTER TAX		3.710	5.431	4.282

	Earnings Per Share (Rs.)		3.71	5.43	4.28

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.11	1.53	1.40

Net Profit Margin (PBT/Sales)	(%)	2.59	1.81	1.84

Return on Total Assets (PBT/Total Assets}	(%)	2.80	3.62	2.95

Return on Investment (ROI) (PBT/Networth)		0.03	0.05	0.05

Debt Equity Ratio (Total Liability/Networth)		0.21	0.33	0.47

Current Ratio (Current Asset/Current Liability)		4.71	3.52	8.78

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS:

The directors are confident of achieving better results in the ensuing financial years. Their company has suspended all operations of Thandalacherry Unit for the second year in succession, owing to the unfavorable market condition for their Toilet Soap Products.

The company has opened a New Unit at Boothakudi Village, Illuppur Taluk, Pudukottai District, during the year. The New Unit Started Commercial Production in Detergent Cakes/ Powder on 01.11.2010.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U24246TN1998PTC040290
Name of the company	RAJAM INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2/ 95, Mount Poonamallee Road, Kattupakkam, Chennai-600056, Tamilnadu, India
Type of charge	Book Debts Movable Property [not being pledge]
Particular of charge holder	Axis Bank Limited, No.82, Dr. Radhakrishnan Salai, Mylapore, Chennai-600004, Tamilnadu, India
Email	g.baalaji@axisbank.com
Nature of description of the instrument creating or modifying the charge	1. Loan Agreement 2. Agreement for Hypothecation of Current Assets and Movable (Composite)
Date of instrument Creating the charge	18.08.2007
Amount secured by the charge	Rs.50.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest @ 13.50% (AXIS Bank PLR -1.50%, presently at 15.00% p.a. compounded at monthly rests) Terms of Repayment Repayable in 60 Equated Monthly Installments of Rs. 1.137 Millions towards payment of Principal and interest. Margin As stipulated by Bank from time to time

FIXED ASSETS:

Land Properties
Plant and Machineries
Furniture and Fixtures
Electrical Equipment and Fittings
Type Writers
Personal Computer and Accessories with Printer
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.50.33
UK Pound	1	Rs.77.97
Euro	1	Rs.65.31

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	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	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.

MIRA INFORM REPORT

27.786

49.063

65.104

43.952

12.257

0.602

4.153

0.000

25.047

73.533

134.347

14.344

14.116

3.064

0.061

1.390

28.521

19.036

105.826

148.114

2.11

2.59

2.80

0.03

0.21

0.47

4.71

8.78

Unit