MIRA INFORM REPORT

Report Date :

03.11.2012

IDENTIFICATION DETAILS

Name :	LONA INDUSTRIES LIMITED
Formerly Known As :	LONA INDUSTRIES PRIVATE LIMITED
Registered Office :	532, Alta Bhavan, Senapati Bapat Marg, Dadar (West), Mumbai – 400 028, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.11.1962
Com. Reg. No.:	11-012526
Capital Investment / Paid-up Capital :	Rs.76.189 Millions
CIN No.: [Company Identification No.]	U24110MH1962PLC012526
TAN No.: [Tax Deduction & Collection Account No.]	MUML04687E MUML05181B PNEL03782C
PAN No.: [Permanent Account No.]	AAACL1166F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Phthalocyanine Dyes and Pigments.
No. of Employees :	275 (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 1339000
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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB+ (Long Term Fund Based Bank Facilities)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	March 1, 2012

Rating Agency Name	CARE
Rating	A3+ (Short Term Fund Based Bank Facilities)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	March 1, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	532, Alta Bhavan, Senapati Bapat Road, Dadar (West), Mumbai – 400 028, Maharashtra, India
Tel. No.:	91-22-24363585/ 24307441/ 24473738/ 24363595/ 24473740
Fax No.:	91-22-24363595/ 24473745/ 24302018
E-Mail :	altalab@vsnl.com lonaind@vsnl.com sales@lona.com
Website :	http://www.lona.com
Corporate Office :	Gharkul, 82 Vir Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400 028, Maharashtra, India
Factory :	Ladivali, New Rasayani, Taluka: Panvel, District Raigad - 410 207, Maharashtra, India
Tel. No.:	91-22-24473738/ 24473739/ 24473740
Fax No.:	91-22-24473745

DIRECTORS

As on 26.09.2011

Name :

Mr. Sanjay Ramhari Dhote

Designation :

Managing Director

Address :

51, Khatau Apartments, 243, Walkeshwar Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

09.07.1960

Date of Appointment :

01.04.2011

DIN No.:

00548542

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U65990MH1983PTC029940	ALTONA INVESTMENTS PRIVATE LIMITED	Director	10/05/1983	10/05/1983	-	Active	NO
2	U85190MH1954PLC009215	ALTA LABORATORIES LIMITED	Director	01/04/1984	01/04/1984	-	Active	NO
3	U23239MH1978PTC020722	ALTAROMA CHEMICALS PRIVATE LIMITED	Director	06/11/1984	06/11/1984	-	Active	NO
4	U65993MH1978PTC020524	J AND S INVESTMENTS PRIVATE LIMITED	Director	24/03/1987	24/03/1987	-	Active	NO
5	U65910MH1991PLC063461	ALTA LEASING AND FINANCE LIMITED	Director	03/10/1991	03/10/1991	-	Active	NO
6	U24110MH1962PLC012526	LONA INDUSTRIES LIMITED	Managing director	01/04/2011	01/04/1994	-	Active	NO
7	U26960MH1993PTC071714	BROWNSTONE INTERNATIONAL PRIVATE LIMITED	Director	10/05/1994	10/05/1994	-	Active	NO
8	U67120MH1997PLC112504	ALTA SECURITIES LIMITED	Director	16/12/1997	16/12/1997	-	Active	NO

Name :

Mr. Govind Guno Desai

Designation :

Director

Address :

Kedar Apartment, Bhandar Lane, L.J. Road, Mahim, Mumbai – 400 015, Maharashtra, India

Date of Birth/Age :

14.06.1933

Date of Appointment :

30.09.2005

DIN No.:

00140853

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29221MH1963PTC012756	BULLOWS PAINT EQUIPMENT PRIVATE LIMITED	Director	21/09/1982	21/09/1982	-	Active	NO
2	U13519MH1966PTC013519	BULLOWS INDIA PRIVATE LIMITED	Director	21/09/1982	21/09/1982	-	Active	NO
3	U74300MH1969PTC014297	CONTRACT ADVERTISING (INDIA) PRIVATE LIMITED	Director	31/07/1984	31/07/1984	-	Active	NO
4	L24230MH1984PLC034771	BLISS GVS PHARMA LIMITED	Director	21/12/1984	21/12/1984	-	Active	NO
5	L74999MH1985PLC037618	INDAGE VINTNERS LIMITED	Director	04/01/1986	04/01/1986	09/12/2009	Active	NO
6	U99999MH1986PLC134021	FERMENTA BIOTECH LIMITED	Director	03/03/1987	03/03/1987	19/03/2010	Active	NO
7	L24223MH1946PLC005434	KOKUYO CAMLIN LIMITED	Director	16/03/1988	16/03/1988	28/07/2008	Active	NO
8	U02411KA1980PTC004053	FOSROC CHEMICALS (INDIA) PRIVATE LIMITED	Director	09/08/1989	09/08/1989	30/11/2007	Active	NO
9	U74999MH1987PTC044849	CLASSIC STRIPES PRIVATE LIMITED	Director	01/01/1997	01/01/1997	29/06/2011	Active	NO
10	L15520MH1982PLC028415	INDAGE RESTAURANTS AND LEISURE LIMITED	Director	14/02/1998	14/02/1998	09/12/2009	Active	NO
11	U24100MH1981PTC025661	CENTAUR CHEMICALS PRIVATE LIMITED	Director	06/02/2001	06/02/2001	-	Amalgamated	NO
12	U65910MH1991PLC063461	ALTA LEASING AND FINANCE LIMITED	Director	30/04/2001	30/04/2001	-	Active	NO
13	L99999MH1951PLC008485	DIL LIMITED	Director	29/11/2001	29/11/2001	-	Active	NO
14	U45200MH1995PLC084766	AEGEAN PROPERTIES LIMITED	Director	27/02/2002	27/02/2002	-	Active	NO
15	U28933MH2004PTC148152	DURABUILD TECHNOLOGIES PRIVATE LIMITED	Director	05/05/2005	05/05/2005	08/06/2011	Active	NO
16	U24110MH1962PLC012526	LONA INDUSTRIES LIMITED	Director	30/09/2005	30/09/2005	-	Active	NO
17	U36930MH1994PTC082020	PRO-TECH SPORTS AND SAFETY PRODUCTS PRIVATE LIMITED	Director	24/06/2006	24/04/2006	08/06/2011	Active	NO
18	U25208MH1995PTC093753	FORMA SPORTS PRIVATE LIMITED	Director	24/06/2006	24/04/2006	08/06/2011	Active	NO
19	L65910MH1998PLC115967	IRB INFRASTRUCTURE DEVELOPERS LIMITED	Director	07/09/2007	03/08/2007	-	Active	NO
20	U24230MH1980PTC023291	CENTAUR PHARMACEUTICALS PRIVATE LIMITED	Director	23/10/2008	23/10/2008	-	Active	NO
21	U74130MH2004PTC145141	EVOTEC (INDIA) PRIVATE LIMITED	Additional director	20/02/2009	20/02/2009	31/08/2009	Active	NO

Name :

Mr. Premanand Anandrao Narvekar

Designation :

Director

Address :

396/8, North Avenue, Santacruz (West), Mumbai – 400 054, Maharashtra, India

Date of Birth/Age :

17.06.1975

Date of Appointment :

21.08.1991

DIN No.:

00387203

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U65990MH1974PTC017293	KUMAR INVESTMENTS PRIVATE LIMITED	Director	17/09/1978	17/09/1978	-	Active	NO
2	U74200MH1979PTC021044	SARDESAI CONSULTANTS PRIVATE LIMITED	Director	22/02/1979	22/02/1979	-	Active	NO
3	U67120MH1980PTC023062	SARDESAI HOLDINGS PRIVATE LIMITED	Director	04/09/1980	04/09/1980	-	Active	NO
4	L24223MH1946PLC005434	KOKUYO CAMLIN LIMITED	Director	16/03/1988	16/03/1988	28/07/2008	Active	NO
5	U24110MH1962PLC012526	LONA INDUSTRIES LIMITED	Director	21/08/1991	21/08/1991	-	Active	NO
6	U34300MH1990PTC058356	VIBRANT AUTO COMPONENTS PRIVATE LIMITED	Director	04/09/1991	04/09/1991	-	Active	NO
7	U65910MH1991PLC063461	ALTA LEASING AND FINANCE LIMITED	Director	15/10/1991	15/10/1991	-	Active	NO
8	U51900MH1993PLC075140	CAMLIN INTERNATIONAL LIMITED	Director	16/11/1993	16/11/1993	-	Active	NO
9	U74140MH2001PTC132727	GAJANAN CONSULTANCY SERVICES PRIVATE LIMITED	Managing director	16/07/2001	16/07/2001	-	Active	NO

Name :

Mr. Jayant Ramhari Dhote

Designation :

Director

Address :

11, A/B, Hilltop Apartments, 49, Pali Hill, Bandra, Mumbai – 400 050, Maharashtra, India

Date of Birth/Age :

13.08.1954

Date of Appointment :

09.08.1978

DIN No.:

00548607

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24110MH1962PLC012526	LONA INDUSTRIES LIMITED	Director	09/08/1978	09/08/1978	-	Active	NO
2	U85190MH1954PLC009215	ALTA LABORATORIES LIMITED	Managing director	01/04/2011	11/08/1978	-	Active	NO
3	U65993MH1978PTC020524	J AND S INVESTMENTS PRIVATE LIMITED	Director	26/08/1978	26/08/1978	-	Active	NO
4	U65990MH1983PTC029940	ALTONA INVESTMENTS PRIVATE LIMITED	Director	10/05/1983	10/05/1983	-	Active	NO
5	U23239MH1978PTC020722	ALTAROMA CHEMICALS PRIVATE LIMITED	Director	06/11/1984	06/11/1984	-	Active	NO
6	U65910MH1991PLC063461	ALTA LEASING AND FINANCE LIMITED	Managing director	01/04/2011	03/10/1991	-	Active	NO
7	U26960MH1993PTC071714	BROWNSTONE INTERNATIONAL PRIVATE LIMITED	Managing director	10/05/1994	10/05/1994	-	Active	NO
8	U67120MH1997PLC112504	ALTA SECURITIES LIMITED	Director	16/12/1997	16/12/1997	-	Active	NO

Name :

Dr. Saroj Yeshwant Kale

Designation :

Director

Address :

B/1, Asavari, 214, Veer Savarkar Marg, Mahim (West), Mumbai - 400 016, Maharashtra, India

Date of Birth/Age :

15.09.1944

Date of Appointment :

15.07.1974

DIN No.:

00548744

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U85190MH1954PLC009215	ALTA LABORATORIES LIMITED	Director	27/02/1969	27/02/1969	-	Active	NO
2	U24110MH1962PLC012526	LONA INDUSTRIES LIMITED	Director	15/07/1974	15/07/1974	-	Active	NO
3	U24222MH1970PTC014654	ANZAC IMPEX PRIVATE LIMITED	Director	31/01/1981	31/01/1981	-	Active	NO
4	U24240MH1968PTC014165	EASTERN AROMATICS PRIVATE LIMITED	Director	31/01/1981	31/01/1981	-	Active	NO
5	U67120MH1997PLC112504	ALTA SECURITIES LIMITED	Director	13/09/2010	09/06/2010	-	Active	NO

Name :

Mr. Ken Saburo Okura

Designation :

Director

Address :

2-23-11, Denenchofu, Otaku, Tokyo, 1038383, Japan

Date of Birth/Age :

04.06.1936

Date of Appointment :

17.06.1996

DIN No.:

02666435

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2011

Names of Shareholders	No. of Shares
Tarabai R. Dhole	300440
R.K. Dhote Big HUF	127167
Jayant R. Dhole	363230
Geeta J. Dhote	283733
Aditya J. Dhote	233333
Rohan R. Dhote	233333
Sanchit J. Dhote	233333
Radhika J. Dhote	233333
Altona Investments Private Limited, India	1491001
Jayan R. Dhote (HUF)	217933
Sanjay R. Dhote	468230
Vaishali S. Dhote	280000
Rohit R. Dhote	711667
Saroj Y. Kale	41160
J and S Investments Private Limited, India	1480174
Sanjay R. Dhote (HUF)	299600
Kumudini Dhamankar	2333
Dainichiseika Colour and Chemicals Manufacturing Company Limited, Japan	618925
Total	7618925

As on 26.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	8.12
Bodies corporate	39.00
Directors or relatives of directors	44.42
Others	8.46
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Phthalocyanine Dyes and Pigments.

Products :

ITC CODE	PRODUCTS
312209002	Phthalcoyannie Green 3G
312209002	Phthalcoyannie Alpha Blue RB
--	Phthalcoyannie Brilliant Blue IBN

v Copper Phthalocyanine Pigments

v Dyes derived from Phthalocyanines

v Phthalocyanines Allied Products

v Quinacridone Pigments

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Synthetic Organic Dyes	M.T.	1400	969
Pigments	M.T.	7702	5960

Note:

Installed capacity has been certified by the management and has been accepted by the Auditors without verification, this being a technical matter.

GENERAL INFORMATION

No. of Employees :

275 (Approximately)

Bankers :

v The Cosmos Co-operative Bank Limited, Dadar Branch, 36A, Maru Niketan, D.L. Vaidya Road, Dadar (West), Mumbai – 400 028, Maharashtra, India

v The United Western Bank Limited, Prabhadevi Branch, Mumbai - 400 028, Maharashtra, India

v Punjab National Bank, Brady House, Fort, Mumbai – 400 001, Maharashtra, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Rupee term loans banks secured [Repayable within a Year Rs.15.641 millions (Previous Year: Rs.10.000 millions)]	56.074	41.093
Working capital loans banks secured	238.167	201.423
Loans taken for vehicles secured	4.192	6.427
Total	298.433	248.943

Notes:

1. Working Capital limits are secured by hypothecation of Inventory and Book Debts.

2. Term Loans, Working Capital Term Loans from the Banks are secured by Equitable Mortgage of Land, Factory Buildings, and Hypothecation of Plant and Machinery and R and D Equipments

3. The Bank Loans are also Guaranteed by Directors Mr. S.R. Dhote and Mr. J.R. Dhote in their Personal Capacities.

Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Public deposits unsecured	48.984	33.795
Deposits related parties unsecured	2.434	2.448
Total	51.418	36.243

Banking Relations :	--
Auditors :
Name :	B.K. Khare and Company Chartered Accountants
Address :	706-708, Sharda Chambers, New Marine Lines, Mumbai - 400 020, Maharashtra, India
Tel. No.:	91-22-22000607/ 7318/ 6360/ 66315835/ 36
Fax No.:	91-22-22003476
Email:	info@bkkhareco.com
PAN No.:	AAAFB0265E
Related Parties :	v Alta Laboratories Limited, India CIN No.: U85190MH1954PLC009215 PAN No.: AAACA1012B v Alta Leasing and Finance Limited, India CIN No.: U65910MH1991PLC063461 PAN No.: AACCA7117P v Sanjay Sales Corporation, India PAN No.: AAMFS3154P

CAPITAL STRUCTURE

As on 26.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7618925	Equity Shares	Rs.10/- each	Rs.76.189 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		76.189	76.189	76.189
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		258.477	174.584	106.008
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		334.666	250.773	182.197
LOAN FUNDS
1] Secured Loans		298.433	248.943	228.874
2] Unsecured Loans		51.418	36.243	30.287
TOTAL BORROWING		349.851	285.186	259.161
DEFERRED TAX LIABILITIES		19.435	18.338	14.196
TOTAL		703.952	554.297	455.554
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		218.328	222.252	137.531
Capital work-in-progress		19.304	5.975	75.253
INVESTMENT		0.418	0.418	0.418
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	223.648	183.220	181.928
	Sundry Debtors	480.225	374.792	193.098
	Cash & Bank Balances	21.013	27.743	18.889
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	231.525	180.856	92.555
Total Current Assets		956.411	766.611	486.470
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	311.064	299.141	158.016
	Other Current Liabilities	25.346	17.819	11.562
	Provisions	154.099	123.999	74.540
Total Current Liabilities		490.509	440.959	244.118
Net Current Assets		465.902	325.652	242.352
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		703.952	554.297	455.554

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating revenue, net	1931.449	1492.662	1376.985
		Other Income	48.504	27.426	31.781
		TOTAL (A)	1979.953	1520.088	1408.766
Less	EXPENSES
		Consumption materials changes inventories	1321.300	995.522	1282.973
		Manufacturing service costs	227.226	171.262
		Employee related expenses	86.983	74.967
		Administrative selling other expenses	134.948	97.265
		Prior period items	(1.793)	(1.299)
		TOTAL (B)	1768.664	1337.717	1282.973
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		212.289	182.371	125.793
Less	INTEREST FINANCIAL CHARGES (D)		31.847	28.370	34.392
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		179.442	154.001	91.401
Less/ Add	DEPRECIATION/ AMORTISATION (F)		24.455	25.312	18.704
	PROFIT BEFORE TAX (E-F) (G)		154.987	128.689	72.697
Less	TAX (H)		57.723	46.742	28.156
	PROFIT AFTER TAX (G-H) (I)		97.264	81.947	44.541
Less	APPROPRIATIONS
		Proposed Dividend	63.371	11.428	9.143
		Tax on Proposed Dividend		1.943	1.554
		General Reserve		50.000	20.000
	BALANCE CARRIED TO THE B/S		33.893	18.576	13.844
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on FOB Basis	1493.175	1024.961	1068.729
	TOTAL EARNINGS		1493.175	1024.961	1068.729
	IMPORTS
		Raw Materials	NA	291.367	237.402
	TOTAL IMPORTS		NA	291.367	237.402
	Earnings Per Share (Rs.)		12.77	10.76	5.85

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.91	5.39	3.16
Net Profit Margin (PBT/Sales)	(%)	8.02	8.62	5.28
Return on Total Assets (PBT/Total Assets}	(%)	13.19	13.01	11.65
Return on Investment (ROI) (PBT/Networth)		0.46	0.51	0.40
Debt Equity Ratio (Total Liability/Networth)		2.51	2.90	2.76
Current Ratio (Current Asset/Current Liability)		1.95	1.74	1.99

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes
31) Date of Birth of Proprietor/Partner/Director, if available	Yes
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	Yes

OPERATIONS:

The sales during the year were Rs.1931.449 millions as compared to Rs.1492.662 millions for the preceding year showing an increase of 29.40%. The operations have resulted in Pre-Tax profit of Rs.154.987 millions against Rs.128.689 millions of the preceding year. The performance of the company can be considered satisfactory in the midst of highly competitive business scenario.

CONTINGENT LIABILITIES: (AS ON 31.03.2011)

v Guarantees given by Bank - Rs.21.885 Millions

v Tax Matters disputed in Appeal - Rs.9.499 Millions

FORM 8

Corporate identity number of the company	U24110MH1962PLC012526
Name of the company	LONA INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	532, Alta Bhavan, Senapati Bapat Road, Dadar (West), Mumbai – 400 028, Maharashtra, India E-Mail: lonaind@vsnl.com
This form is for	Creation of charge
Type of charge	Others (Vehicle)
Particular of charge holder	The Cosmos Co-operative Bank Limited, Dadar Branch, 36A, Maru Niketan, D.L. Vaidya Road, Dadar (West), Mumbai – 400 028, Maharashtra, India E-Mail: njbhatia@rediffmail.com
Nature of instrument creating charge	Letter of Hypothecation of vehicle
Date of instrument Creating the charge	14.07.2011
Amount secured by the charge	Rs.2.150 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 1^st year: 11% p.a. (fixed) 2^nd year: 11.5% p.a. (fixed) 3^rd to 5^th year: 12.5% p.a. (fixed) Terms of repayment 60 months ( 5 years) Margin 10.01% in bank's favour Extent and operation of the charge This is vehicle Term loan facility
Short particulars of the property charged (Including location of the property)	Hypothecation of Chevrolet Captiva AWD to be purchased and registered with Regional Transport office Mumbai

FIXED ASSETS:

v Land

v Factory Buildings

v Plant and Machinery

v Computer and Office Equipments, Electrical Appliances

v Vehicles

v Furniture and Fixtures

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 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.53.66
UK Pound	1	Rs.86.37
Euro	1	Rs.69.24

INFORMATION DETAILS

Report Prepared by :

SMN

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	NO
--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.