MIRA INFORM REPORT

Report Date :

09.03.2012

IDENTIFICATION DETAILS

Name :	MIL INDIA LIMITED
Formerly Known As :	MAZZINDIA PRIVATE LIMITED
Registered Office :	Unit No.3F/307, Mamram East Plaza, Plot No.C-1 and 2, LSC Block G, Kondli, Gharoli, New Delhi – 110096
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.03.1986
Com. Reg. No.:	55-23524
Capital Investment / Paid-up Capital :	Rs.12.295 Millions
CIN No.: [Company Identification No.]	U52111DL1986PLC023524
TAN No.: [Tax Deduction & Collection Account No.]	DELM09121A DELM10638F
PAN No.: [Permanent Account No.]	AACCM4710E
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturing of Machines of Different Product Ranges i.e. Soap, Detergent and Fatty Acid.
No. of Employees :	80 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 900000
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 good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Balgopal
Designation :	Administration Manager
Contact No.:	91-120-4766100

LOCATIONS

Registered Office :	Unit No.3F/307, Mamram East Plaza, Plot No.C-1 and 2, LSC Block G, Kondli, Gharoli, New Delhi-110096, India
Tel No.:	Not Available
Fax No.:	Not Available
E-Mail :	management@milindia.com accounts@milindia.com
Website :	http://www.milindia.com
Operation Office / Factory 1 :	W-31, Sector XI, Noida-201301, Uttar Pradesh, India
Tel. No.:	91-120-2536772 / 2536773 / 4766100
Fax No.:	91-120-2553342 / 2542103
E-Mail :	milmazz@vsnl.com mail@milindia.com
Factory 2 :	Plot No. 60-63, Sector 5, IIE Ranipur, BHEL, Haridwar, Uttaranchal, India

DIRECTORS

As on 08.08.2011

Name :

Mr. Shridhar Krishnan

Designation :

Chairman cum Managing Director

Address :

C-45, Sector 33, Gautam Budh Nagar, Noida – 201 301, Uttar Pradesh, India

Date of Birth/Age :

25.12.1957

Date of Appointment :

04.03.1986

Din No.:

00214754

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	U74899DL1975PTC007714	K.S. KRISHNAN ASSOCIATES PRIVATE LIMITED	Director	01-07-84	01-07-84	Active	NO
2	U52111DL1986PLC023524	MIL INDIA LIMITED	Managing director	01-04-10	04-03-86	Active	NO
3	U74899DL1989PTC036408	KRISHERB PRODUCTS PRIVATE LIMITED	Director	26-05-89	26-05-89	Under Process of Striking off	NO
4	U74899DL1991PTC046497	KRI SOAPS PRIVATE LIMITED	Director	25-11-91	25-11-91	Active	NO

Name :

Mr. Sukh Ram Binyani

Designation :

Whole Time Director

Address :

C-700 Sarita Vihar, New Delhi – 110 042, India

Date of Birth/Age :

14.06.1953

Date of Appointment :

15.10.1999

Din No.:

00105205

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	U55101DL1997PTC087893	HUM NIWAAS HOTELS PRIVATE LIMITED	Director	12-06-97	12-06-97	Active	NO
2	U52111DL1986PLC023524	MIL INDIA LIMITED	Whole-time director	01-04-10	15-10-99	Active	NO

Name :

Mr. Ram Mohan Subramanian

Designation :

Whole Time Director

Address :

C-53, Sector 34, Gautam Budh Nagar, Noida – 201 301, Uttar Pradesh, India

Date of Birth/Age :

27.02.1954

Date of Appointment :

25.09.1995

Din No.:

00214985

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	U52111DL1986PLC023524	MIL INDIA LIMITED	Whole-time director	01-04-10	25-09-95	Active	NO

KEY EXECUTIVES

Name :	Mr. Balgopal
Designation :	Administration Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 08.08.2011

Names of Shareholders	No. of Shares
Krishnan K. S.	60400
Lalita Krishnan	40200
Krishnan Associates Private Limited, India	309400
Shridhar Krishnan	82500
Dhruva	7000
Kumari Medha	5000
Kri-soaps Private Limited, India	420000
S. Ram Mohan	2000
Shravan Krishnan	500
Shruti Krishnan	500
S. R. Binyani	2000
Total	929500

As on 08.08.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	78.47
Directors or relatives of directors	21.53
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Machines of Different Product Ranges i.e. Soap, Detergent and Fatty Acid.

Products :

Description Products	Item Code No.
Soap and Detergent Manufacturing Machine	8479.19
Parts	8479.90
Casting and Forging	7203.30
Scrap and Plate	7204.20

GENERAL INFORMATION

No. of Employees :

80 (Approximately)

Bankers :

· Canara Bank, Community Center, East of Kailash, New Delhi-110065, India

· Small Industries Development Bank of India, C-60, Sector 20, Noida-201301, Uttar Pradesh, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
From Banks
Cash Credit	19.001	39.015
Value Secured Loan	4.800	.000
Packing Credit Limit	20.672	0.000
Vehicles Loan	0.314	1.476
From Financials Institution SIDBI	0.000	1.800
Total	44.787	42.291

NOTE:

The Term loan is secured as follows:

First charge by way of hypothecation of all movable assets, including Plant and Machinery, furniture, fixtures etc. of the Haridwar unit, mortgage of immovable properties at Haridwar; Second charge by way of hypothecation of plant and Machinery, furniture, fixtures etc of the Noida unit, mortgage of immovable properties at NOIDA; Personal Guarantee of the Managing Director and Corporate guarantee of K. S. Krishnan Associates Private Limited.

The Company has availed working capital credit facilities from Canara Bank, East of Kailash, New Delhi as on March 31, 2011 against security as follows:

Hypothecation of Stock of raw materials, work in progress, finished goods, stores and spares; book debts; First charge by way of hypothecation of Plant and Machinery of Noida unit, equitable mortgage of Factory land and building at Noida; collateral security by way of hypothecation of factory land and building, plant and machinery and other fixed assets (excluding fixed assets charged to SIDBI) of the Haridwar unit ; second charge by way of hypothecation of fixed assets of the company’s project at Ranipur (BHEL), Haridwar; Personal guarantee of Managing Director; and Corporate guarantee of K. S. Krishnan Associates (Private) Limited

Banking Relations :	--
Auditors :
Name :	Mishra Sahu Jain and Associates Chartered Accountants
Address :	27-Akbar Road, New Delhi-110011, India
Pan No.:	AAJFM9630P
Related Parties:	· K.S. Krishnan Associates Private Limited · Krisherb Products Private Limited · Kri Soaps Private Limited · Hum Niwas Hotels Private Limited · Pangeaneering Services · Desmet Ballestra S.P.A · Desmet Ballestra India Private Limited

CAPITAL STRUCTURE

As on 08.08.2011

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
929500	Equity Shares	Rs.10/- each	Rs.9.295 Millions

As on 31.03.2011

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1229500	Equity Shares	Rs.10/- each	Rs.12.295 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		12.295	12.295	12.295
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		214.919	194.742	169.203
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		227.214	207.037	181.498
LOAN FUNDS
1] Secured Loans		44.787	42.291	32.336
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		44.787	42.291	32.336
DEFERRED TAX LIABILITIES		1.664	1.847	2.106
TOTAL		273.665	251.175	215.940
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		65.143	70.012	72.154
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.500	2.500	2.681
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	93.845	71.989	49.918
	Sundry Debtors	84.517	31.844	66.238
	Cash & Bank Balances	127.065	168.444	143.795
	Other Current Assets	0.000	8.805	6.267
	Loans & Advances	26.650	12.455	27.073
Total Current Assets		332.077	293.537	293.291
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	45.827	18.384	26.009
	Other Current Liabilities	48.629	55.309	74.462
	Provisions	31.599	41.181	51.715
Total Current Liabilities		126.055	114.874	152.186
Net Current Assets		206.022	178.663	141.105
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		273.665	251.175	215.940

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	400.462	371.147	544.728
		Professional Services Incident to Manufacturing Activity	18.883	18.646	0.000
		Other Income	16.965	24.772	8.516
		TOTAL (A)	436.310	414.565	553.244
Less	EXPENSES
		Raw Material and Consumable Consumption	241.122	227.533
		Manufacturing Expenses	41.303	37.171
		Employees Remuneration and Benefits	57.484	56.918	483.917
		Administrative and Other Expenses	46.553	39.173
		Selling and Distribution Expenses	16.024	15.210
		Increase / Decrease in Stocks	(12.072)	(13.208)
		TOTAL (B)	390.414	362.797	483.917
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		45.896	51.768	69.327
Less	FINANCIAL EXPENSES (D)		2.815	2.505	5.320
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		43.081	49.263	64.007
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.121	10.103	11.254
	PROFIT BEFORE TAX (E-F) (G)		32.960	39.160	52.753
Less	TAX (H)		9.542	9.305	(15.496)
	PROFIT AFTER TAX (G-H) (I)		23.418	29.855	37.257
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		171.819	149.265	120.048
Less	APPROPRIATIONS
		Transfer to General Reserve	2.342	2.985	3.725
		Dividend	2.789	3.689	3.688
		Tax on Dividend	0.452	0.627	0.627
	BALANCE CARRIED TO THE B/S		189.654	171.819	149.265
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	240.719	168.785	385.421
	IMPORTS
		Raw Materials	24.585	18.188	6.943
		Stores & Spares	4.854	10.887	8.560
	TOTAL IMPORTS		29.439	29.075	15.503
	Earnings Per Share (Rs.)		19.05	24.28	30.30

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.37	7.20	2.40
Net Profit Margin (PBT/Sales)	(%)	8.23	10.55	9.68
Return on Total Assets (PBT/Total Assets}	(%)	8.30	10.77	14.43
Return on Investment (ROI) (PBT/Networth)		0.15	0.19	0.29
Debt Equity Ratio (Total Liability/Networth)		0.75	0.75	1.03
Current Ratio (Current Asset/Current Liability)		2.63	2.55	1.93

LOCAL AGENCY FURTHER INFORMATION

BACKGROUND

Subject was incorporated on March 04, 1986 under the provisions of the Companies Act, 1956. It commenced its business operation in the year 1986. The business activities of the Company is manufacturing of equipments for soaps, detergent, fatty acid and glycerine. The registered office of the Company is situated at Kondli Gharoli, New Delhi and the manufacturing facilities are situated at NOIDA, in the state of U.P. and Haridwar in the state of Uttaranchal. Uttaranchal unit is enjoying tax holiday under the provision for section

80IC of the Income Tax Act, 1961.

REVIEW OF CURRENT YEAR PERFORMANCE:

The Company achieved a Total Income of Rs.436.310 millions (€ 6,817,340) with Total Sales of Rs.400.462 millions (€ 6,257,207). As compared with the previous Financial Year (FY 2009-2010) the Turnover achieved corresponds to an increase of 7.90 %. While the negative trend of the previous years was arrested it is noted that the Target of Rs.600.000 millions (€ 9,375,000) set for Current Year (FY 2010-2011) could not be achieved once again. Thus, this is the fourth year in succession that the Company’s Annual Target could not be achieved and this is a matter of great concern. The Directors have taken concrete steps by way of enlarging the range of products and geographical area such that the company’s Marketing Department is in a position to meet the Targets and are confident of positive result from such efforts. The directors also wish to convey that the Company has achieved the Profit before Tax for the Current Year (FY 2010-2011) was Rs.32.960 millions (€ 515,002) which is a decrease by Rs.6.200 millions (€ 96,875) over the previous Financial Year (FY 2009- 2010). The Company has earned a Profit after Tax (PAT) of Rs.23.418 millions (€ 365,908) during Current Year (FY 2010-2011) against a PAT of Rs.29.855 millions (€ 466,482) in the previous Financial Year (FY 2009-2010).

The decrease in Total Income and Profit was mainly due to the following reasons:-

• Increase on Raw Material Costs (for example the average Purchase Cost of Carbon Steel was +15% higher than the preceding year).

• Pressure on margins due to the Company and all its competitors vying for the limited market thanks to the prevailing recessionary conditions

• Increase of Overheads compare to the Turnover

BUY BACK OF EQUITY SHARES:

With a view to reduction in the number of shares, outstanding and consequently to improve the Return on Equity of the Company, thereby increasing Shareholders’ value, the Board of Directors of the Company in their meeting held on 3rd March 2011, decided to buy back 300,000 Equity Shares of Rs.10.00 each from the existing Shareholders on a proportionate basis through tender offer at an offer price of Rs.66 per share. The buyback decision was also approved by the Shareholders of the Company in their Extra Ordinary General Meeting held on the 15th March 2011. In response to the said buyback offer, Desmet Ballestra S.P.A (Italy), had shown their interest and the buyback was completed with full compliance with the Private Limited Company and Unlisted Public Limited Company (Buy Back of Securities) Rules, 1999 and other applicable provisions of the Companies Act, 1956.

AMALGAMATION AND MERGER:

With a view to achieve greater management focus, leverage combined financial strength, pooling of physical financial and human resource of the transferee and transferor companies, the Board of Directors of the Company decided to merge and amalgamate the group companies M/s K. S. Krishnan Associates Private Limited and Kri-soaps Private Limited with Subject with effect from 1st day of April 2011 being the appointed date.

The decisions of the Board of Directors of all three Companies for amalgamation and merger were also approved by their respective shareholders in their Extra Ordinary General Meetings held on the 16th day of May 2011. The petition for merger and amalgamation is pending for approval before the Delhi High Court.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U52111DL1986PLC023524
Name of the company	MIL INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No.3F/307, Mamram East Plaza, Plot No.C-1 and 2, LSC Block G, Kondli, Gharoli, New Delhi-110096, India
Type of charge	Immovable Property Movable Property [not being pledge] Others
Particular of charge holder	Small Industries Development Bank of India, C-60, Sector 20, Noida-201301, Uttar Pradesh, India
Email	bkirankr@sidbi.in
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation dated 19/01/2012 and Declaration and Undertaking dated 02/02/2012.
Date of instrument Creating the charge	19.01.2012
Amount secured by the charge	Rs.15.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest rate is 0.50 percent above SIDBI PLR rising or falling with monthly rests. Current SIDBI PLR is 12.75 percent and current effective rate of interest is 13.25 percent. Terms of Repayment The Term Loan shall be repaid by the Borrower to SIDBI in 60 monthly installments of Rs.0.250 million each after a moratorium of 6 months from the date of first disbursement of term loan. Margin 25% Extent and Operation of the charge The charge will be to the extent of Rs. 15.000 millions financed by SIDBI.
Short particulars of the property charged	First charge by way of hypothecation of all movable assets, including plant and machineries, equipments, spares, tools, MFA, utilities and ancillary equipments etc., both present and future Acquired or to be acquired under the project, in such form as may be required by SIDBI. First charge by way of equitable mortgage of the immovable property of the borrower including lease hold rights of factory land, both present and future, in favour of SIDBI situated at Plot No.-60, 61,62, 63, Sector-5, IIE, Haridwar, Uttarakhand admeasuring 6074.88 sq mtr.

FIXED ASSETS

· Land

· Buildings and Roads

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Computers

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.50.57
UK Pound	1	Rs.79.57
Euro	1	Rs.66.50

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	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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.