MIRA INFORM REPORT

Report Date :

02.04.2013

IDENTIFICATION DETAILS

Name :	KANNU ADITYA (INDIA) LIMITED

Registered Office :	Flat No. 9, B-16, Bhagwan Dass Nagar, New Delhi - 110026

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	17.03.1999

Com. Reg. No.:	55-098882

Capital Investment / Paid-up Capital :	Rs. 62.141 Millions

CIN No.: [Company Identification No.]	U74899DL1999PLC098882

PAN No.: [Permanent Account No.]	AABCK5230C

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Exporter and Processor of all varieties of Rice, Spices, Wheat, Gram and Other Grains and Cereals, etc.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

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

Satisfactory

Maximum Credit Limit :	USD 1510000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is a part of “Lal Mahal Group”. It is an established company having a satisfactory track record. The company has performed well in the year 2011-2012. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal business dealings at usual trade terms and condition.

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

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

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 :	Flat No. 9, B-16, Bhagwan Dass Nagar, New Delhi – 110026, India
Tel. No.:	91-11-42787714
Fax No.:	91-11-42787721
E-Mail :	pratima@lalmahal.in md@lalmahal.in

Administrative Office :	B-6, 1^st Floor, Bhagwan Dass Nagar, New Delhi – 110026, India
Tel. No.:	91-11-45650588
Fax No.:	91-11-45650599
E-Mail :	info@kannuaditya.com

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Har Narain Aggarwal
Designation :	Chairman cum Managing director
Address :	A-8, Bhagwan Dass Nagar, New Delhi – 110026, India
Date of Birth/Age :	05.05.1940
Qualification :	Matriculate
Date of Appointment :	19.09.2009
DIN No.:	00335481

Name :	Mr. Prem Chand Garg
Designation :	Director
Address :	A-8, Bhagwan Dass Nagar, New Delhi – 110026, India
Date of Birth/Age :	19.09.1963
Qualification :	Graduate
Date of Appointment :	19.09.2009
PAN No.:	AAPPG0695Q
DIN No.:	00335568

Name :	Mr. Sushil Kumar Valecha
Designation :	Additional director
Address :	8-D, Vikrant Appartment, Sector-13, Rohini, New Delhi – 110085, India
Date of Birth/Age :	05.02.1949
Qualification :	MSC, LLB, CAIIB
Date of Appointment :	06.12.2011
DIN No.:	01159350

Name :	Mr. Subhash Chander Bhatia
Designation :	Additional director
Address :	55B, GH-10, Sunder Apartment, Paschim Vihar, New Delhi – 110087, India
Date of Birth/Age :	03.05.1950
Qualification :	CAIIB M Com, MBA
Date of Appointment :	02.01.2012
DIN No.:	05161629

KEY EXECUTIVES

Name :	Mr. Ram Lal
Designation :	Export Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders		No. of Shares
Mahavir Prasad Gupta		100
Mulk Raj Sabharwal		100
Hemant Suri		100
Ram Avtar Aggarwal		15100
Raj Bala		100
Harnarain Aggarwal		3974600
Ram Kumar Gupta		100
P.C.GARG (HUF)		20000
Isha Garg		85000
Sushil Kumar Valecha		10000
Triveni Infrastructure Development Company Limited, India		100000
Sidh Housing Development Company Limited, India		100000
Gyaneshwar Trading And Finance Company Limited, India		50000
Cliftons Pearson Export & Agencies Limited, India		50000
Parijat Tie-Up Private Limited, India		50000
Sanyam Merchants Private Limited, India		50000
Kissan Impex Private Limited, India		395000
Bindra Sales Private Limited, India		500000
Fernadale Limited, India		1561043

Total		6961243

AS ON 29.09.2012

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		41.03
Directors or relatives of directors		58.75
Other top fifty shareholders		0.22
Total		100.00

BUSINESS DETAILS

Line of Business :

Exporter and Processor of all varieties of Rice, Spices, Wheat, Gram and Other Grains and Cereals, etc.

Products :

ITC Code	Product Descriptions
10063020	Rice/ Paddy

Exports :

Products :

Ø Rice

Ø Spices

Ø Wheat

Ø Gram

Ø Other Grains and Cereals, etc.

Countries :

Ø African Countries

Ø Middle East

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of Mysore, 4101-4157, Naya Bazar, Delhi - 110006, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Working capital loans from banks	299.358	57.976
Total	299.358	57.976


Banking Relations :	--

Auditors :
Name :	S C Verma and Associates Chartered Accountants
Address :	A-3, 183, 1^st Floor, Paschim Vihar, New Delhi – 110063, India
Income-tax PAN of auditor or auditor's firm :	AAJFS7555H

Associates :	Ø Shri Lal Mahal Limited [U74999DL1997PLC087205] Ø Shri Lal Mahal Agro Products Private Limited [U01549DL2006PTC156118] Ø Polaris Overseas Private Limited [U51909DL1999PTC098874] Ø Kannu Footwear Private Limited Ø Kannu Exports Ø Gulmarg Ice Factory and Cold Storage Ø Lal Mahal Retail Limited [U52100DL2008PLC172940]

CAPITAL STRUCTURE

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

10,000,000	Equity Shares	Rs. 10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

6,961,243	Equity Shares	Rs. 10/- each	Rs. 69.612 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

10,000,000	Equity Shares	Rs. 10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

6,214,069	Equity Shares	Rs. 10/- each	Rs. 62.141 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		62.141	54.002	54.002
2] Share Application Money		15.621	0.000	0.000
3] Reserves & Surplus		299.316	148.009	130.950
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		377.078	202.011	184.952
LOAN FUNDS
1] Secured Loans		299.358	57.976	12.422
2] Unsecured Loans		153.348	94.200	0.000
TOTAL BORROWING		452.706	152.176	12.422
DEFERRED TAX LIABILITIES		1.870	0.237	0.100

TOTAL		831.654	354.424	197.474

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		167.559	129.830	45.298
Capital work-in-progress		0.000	31.296	0.000

INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	521.405	220.169	103.829
	Sundry Debtors	390.146	232.123	192.567
	Cash & Bank Balances	192.760	91.878	55.355
	Other Current Assets	0.155	0.311	0.000
	Loans & Advances	40.187	56.617	47.121
Total Current Assets		1144.653	601.098	398.872
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	412.241	396.820	239.168
	Other Current Liabilities	37.513	10.980	8.655
	Provisions	30.804	0.000	0.000
Total Current Liabilities		480.558	407.800	247.823
Net Current Assets		664.095	193.298	151.049

MISCELLANEOUS EXPENSES		0.000	0.000	1.127

TOTAL		831.654	354.424	197.474

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	4572.337	3858.813	1391.657
		Other Income	72.491	45.477	1.069
		TOTAL (A)	4644.828	3904.290	1392.726

Less	EXPENSES
		Purchases of stock-in-trade	4645.145	3956.833
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(301.236)	(116.340)
		Employee benefit expense	3.868	3.857
		Other expenses	165.139	11.640
		TOTAL (B)	4512.916	3855.990	1375.052

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		131.912	48.300	17.674

Less	FINANCIAL EXPENSES (D)		48.800	20.581	9.967

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		83.112	27.719	7.707

Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.336	0.824	0.276

	PROFIT BEFORE TAX (E-F) (G)		80.776	26.895	7.431

Less	TAX (H)		27.133	9.836	2.522

	PROFIT AFTER TAX (G-H) (I)		53.643	17.059	4.909

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2518.424	1219.172	240.615

	Earnings Per Share (Rs.)		8.72	3.16	0.91

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.15	0.44	0.35

Net Profit Margin (PBT/Sales)	(%)	1.77	0.70	0.53

Return on Total Assets (PBT/Total Assets}	(%)	6.16	3.68	1.67

Return on Investment (ROI) (PBT/Networth)		0.21	0.13	0.04

Debt Equity Ratio (Total Debt/Networth)		1.20	0.75	0.07

Current Ratio (Current Asset/Current Liability)		2.38	1.47	1.61

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Loans and advances from related parties	153.348	94.200
Total	153.348	94.200

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U74899DL1999PLC098882
Name of the company	KANNU ADITYA (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	Flat No. 9, B-16, Bhagwan Dass Nagar, New Delhi – 110026, India Email: lalmahal@lalmahal.in
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Others [All Current Assets]
Particular of charge holder	State Bank of Mysore, 4101-4157, Naya Bazar, Delhi - 110006, India Email: nayabazar@sbm.co.in
Nature of description of the instrument creating or modifying the charge	Working capital consortium agreement, joint deed of hypothecation and inter se agreement
Date of instrument Creating the charge	18.06.2012
Amount secured by the charge	Rs. 2250.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per rates prescribed by individual bank from time to time Terms of Repayment As per sanction letter Margin As prescribed by bank from time to time Extent and Operation of the charge The charge operates as security as first pari passu charge with other consortium member banks Others This is to secure various fund and non fund based limits aggregating Rs. 2250.000 Millions in consortium

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:-

(Rs. in millions)

Particulars	31.03.2012	31.03.2011
a. Letters of Credit issued by the bank on behalf of the company	751.600	253.200
b. Capital Commitments	0.000	5.300

FIXED ASSETS:

Ø Land

Ø Buildings

Ø Plant and Machinery

Ø Factory building

Ø 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 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 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. 54.39
UK Pound	1	Rs. 82.32
Euro	1	Rs. 69.54

INFORMATION DETAILS

Report Prepared by :

BVA

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	4
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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

521.405

390.146

192.760

0.155

40.187

1144.653

412.241

37.513

30.804

480.558

664.095

1.15

1.77

6.16

0.21

1.20

2.38

Unit