MIRA INFORM REPORT

Report Date :

09.08.2013

IDENTIFICATION DETAILS

Name :	KAKINADA SEAPORTS LIMITED
Registered Office :	8-2-418, Meenakshi House, 3^rd Floor, Road No.7, Banjara Hills, Hyderabad - 500 034, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012 (Profit and Loss A/c)
Date of Incorporation :	16.12.1998
Com. Reg. No.:	01-030697
Capital Investment / Paid-up Capital :	Rs.524.122 millions
CIN No.: [Company Identification No.]	U24239AP1998PLC030697
PAN No.: [Permanent Account No.]	AABCC2006Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in the business of development and maintenance of port.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 10981000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company promoted by “Kakinada Infrastructure Holdings Private Limited”. It is an established company having a fine track record. The latest balance sheet statement of F.Y. 2012 is not available with us. The company has seen a dip in its net profitability but the profit margin appears to be good during 2012. As per available, the financial position and capital structure of the company seems to be strong and healthy. Trade relations are fair. Business is active. Payment terms are regular and as per commitment. The company can be considered good for 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Ratings: BBB+
Rating Explanation	Moderate degree of safety ad moderate credit risk.
Date	June 10, 2013

Rating Agency Name	CRISIL
Rating	Short Term Ratings: A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	June 10, 2013

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.

INFORMATION DECLINED BY

Name :	Mr. Ramkrishna
Designation :	Finance Department
Contact No.:	91-40-23357733
Date :	08.08.2013

LOCATIONS

Registered Office/ Corporate Office :	8-2-418, Meenakshi House, 3^rd Floor, Road No.7, Banjara Hills, Hyderabad - 500 034, Andhra Pradesh, India
Tel. No.:	91-40-23357733/ 23357744/ 23357711
Fax No.:	91-40-23357755
E-Mail :	mailhyd@kakinadaseaports.in
Website :	http://www.kakinadaseaports.in
Operations Office/ Port Office :	2^nd Floor, Port Administrative Building, Beach Road, Kakinada – 533 007, Andhra Pradesh, India
Tel. No.:	91-884-2365089/ 2365889 (Office) 91-884-2368246/ 2349619 (Jetty)
Fax No.:	91 884 - 2385402/ 03/ 04
E-Mail :	mailkkd@kakinadaseaports.in

DIRECTORS

AS ON 28.09.2012

Name :

Mr. Karnati Venkateswara Rao

Designation :

Managing Director

Address :

Flat No.3A, Sri Durga Palm Springs Apartments, Road No.7, Banjara Hills, Hyderabad, Andhra Pradesh, India

Date of Birth/Age :

10.07.1961

Qualification :

Graduate in Commerce

Experience :

29 Years

Date of Appointment :

01.08.2008

PAN No.:

AGLPK5772C

DIN No.:

00012584

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	U72200AP1994PLC018633	BELAIR LOGISTICS LIMITED	Director	27/10/1994	27/10/1994	-	Active	NO
2	U45200AP1987PTC007198	VEDA INFRA PROJECTS (INDIA) PRIVATE LIMITED	Director	10/10/1996	10/10/1996	01/10/2008	Active	NO
3	U35111AP1998PLC030797	ANDHRA SEA PORTS LIMITED	Director	29/12/1998	29/12/1998	22/02/2006	Strike off	NO
4	U24110AP2000PTC034168	POLYGON ENTERPRISES PRIVATE LIMITED	Director	03/04/2000	03/04/2000	18/03/2011	Active	NO
5	U92111AP2000PTC034391	MELODY MULTI MEDIA PRIVATE LIMITED	Director	08/05/2000	08/05/2000	28/11/2001	Active	NO
6	U51909MH2002PTC137737	I-PAY CLEARING SERVICES PRIVATE LIMITED	Director	30/10/2002	30/10/2002	-	Active	NO
7	U40200AP2003PTC041740	KAKINADA POWER PRIVATE LIMITED	Director	23/09/2003	23/09/2003	-	Active	NO
8	U24239AP1998PLC030697	KAKINADA SEAPORTS LIMITED	Managing director	01/08/2008	27/09/2004	-	Active	NO
9	U45200AP2003PTC041961	KAKINADA SEZ PRIVATE LIMITED	Director	11/11/2004	11/11/2004	-	Active	NO
10	U40200AP2005PLC046138	KAKINADA MARINE AND OFFSHORE COMPLEX LIMITED	Director	05/05/2005	05/05/2005	04/10/2008	Active	NO
11	U23209AP2005PTC047372	KAKINADA REFINERY AND PETROCHEMICALS PRIVATE LIMITED	Director	06/09/2005	06/09/2005	-	Active	NO
12	U67120AP2006PTC050760	KAKINADA INFRASTRUCTURE HOLDINGS PRIVATE LIMITED	Director	31/07/2006	31/07/2006	-	Active	NO
13	U74999AP2007PTC056788	KSEZ PORTS PRIVATE LIMITED	Director	20/12/2007	20/12/2007	-	Active	NO
14	U67190AP2008PTC057278	KAKINADA INFRA INVESTMENTS PRIVATE LIMITED	Director	22/01/2008	22/01/2008	-	Active	NO
15	U74930TN2006PTC061098	CUDDALORE PORT COMPANY PRIVATE LIMITED	Director	30/09/2011	29/02/2008	-	Active	NO
16	U29110TN2008PTC067881	SAMUDRA MARITIME COMPANY PRIVATE LIMITED	Director	26/05/2008	26/05/2008	-	Active	NO
17	U45209DL2008PTC211165	MEENAKSHI ENERGY AND INFRASTRUCTURE HOLDINGS PRIVATE LIMITED	Director	30/09/2009	07/08/2009	30/03/2010	Active	NO
18	U74900AP2009PLC065785	SEMBMARINE KAKINADA LIMITED	Director	11/11/2009	11/11/2009	-	Active	NO
19	U40101AP1996PTC054239	MEENAKSHI ENERGY PRIVATE LIMITED	Additional director	30/12/2009	30/12/2009	30/03/2010	Active	NO
20	U51909AP1991PLC012474	UNITED PORTSERVICES LIMITED	Director	28/09/2010	01/04/2010	-	Active	NO
21	U40200AP2008PTC061442	KAKINADA LNG PRIVATE LIMITED	Director	29/09/2011	25/04/2011	-	Active	NO

Name :

Mr. Mirzan Bin Mahathir

Designation :

Director

Address :

26, LRG, Kota 2, Bukit Ledang, 50480 Kulalumpur

Date of Birth/Age :

26.11.1958

Qualification :

Post Graduate

Date of Appointment :

15.07.1999

DIN No.:

00063574

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	U24239AP1998PLC030697	KAKINADA SEAPORTS LIMITED	Director	15/07/1999	15/07/1999	-	Active	NO
2	U63011HR2001PTC034761	KONSORTIUM LOGISTIK INDIA PRIVATE LIMITED	Director	12/10/2001	12/10/2001	20/03/2012	Strike off	NO
3	U40200AP2005PLC046138	KAKINADA MARINE AND OFFSHORE COMPLEX LIMITED	Director	05/05/2005	05/05/2005	08/09/2008	Active	NO
4	U45200AP2003PTC041961	KAKINADA SEZ PRIVATE LIMITED	Additional director	31/12/2006	31/12/2006	06/12/2007	Active	NO
5	U74930TN2006PTC061098	CUDDALORE PORT COMPANY PRIVATE LIMITED	Director	09/01/2007	09/01/2007	-	Active	NO
6	U29110TN2008PTC067881	SAMUDRA MARITIME COMPANY PRIVATE LIMITED	Director	30/09/2009	02/07/2008	-	Active	NO

Name :

Mrs. Karnati Navatha

Designation :

Director

Address :

Flat No.3A, Sri Durga Palm Springs Apartments, Road No.7, Banjara Hills, Hyderabad, Andhra Pradesh, India

Date of Birth/Age :

16.07.1967

Qualification :

MA

Date of Appointment :

29.09.2011

DIN No.:

00782691

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	U51909AP1991PLC012474	UNITED PORTSERVICES LIMITED	Director	18/03/1991	18/03/1991	-	Active	NO
2	U72200AP1994PLC018633	BELAIR LOGISTICS LIMITED	Director	27/10/1994	27/10/1994	-	Active	NO
3	U45200AP1987PTC007198	VEDA INFRA PROJECTS (INDIA) PRIVATE LIMITED	Director	26/09/1996	26/09/1996	-	Active	NO
4	U24110AP2000PTC034168	POLYGON ENTERPRISES PRIVATE LIMITED	Director	03/04/2000	03/04/2000	-	Active	NO
5	U72200TN2000PTC044292	TXN SERVICES PRIVATE LIMITED	Director	01/05/2005	01/05/2005	-	Active	NO
6	U67120AP2006PTC050760	KAKINADA INFRASTRUCTURE HOLDINGS PRIVATE LIMITED	Director	31/07/2006	31/07/2006	-	Active	NO
7	U24239AP1998PLC030697	KAKINADA SEAPORTS LIMITED	Director	29/09/2011	08/03/2011	-	Active	NO

Name :

Mr. Vijaya Sekhar Vellanki

Designation :

Director

Address :

42015, Pepperbush Place, Aldie, VA

Date of Birth/Age :

26.06.1966

Qualification :

Bachelors degree in Mechanical Engineering

Date of Appointment :

29.09.2011

DIN No.:

02900669

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	U40200AP2005PLC046138	KAKINADA MARINE AND OFFSHORE COMPLEX LIMITED	Additional director	23/01/2010	23/01/2010	31/12/2011	Active	NO
2	U24239AP1998PLC030697	KAKINADA SEAPORTS LIMITED	Director	29/09/2011	08/03/2011	-	Active	NO

Name :

Venkata Satyanarayana Murthy Pydi

Designation :

Additional Director

Address :

Flat No.101, Sai Manasa Residency, Shiv Bagh Colony, Balkampet, Hyderabad – 500 016, Andhra Pradesh, India

Date of Birth/Age :

02.09.1945

Date of Appointment :

15.02.2013

DIN No.:

06500081

KEY EXECUTIVES

Name :	Ms. Vibha Jain
Designation :	Secretary
Address :	Flat No.302, Markaz Sadan, Road No.10, Banjara Hills, Hyderabad, Andhra Pradesh, India
Date of Appointment :	22.02.2006
PAN No.:	AGUPJ8387K
Name :	Mr. Ramkrishna
Designation :	Finance Department
E-Mail :	accounts@kakinadaseaports.in

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Konsortium Ports Pte. Limited, Mauritius	9093205
Southindia Infrastructure Development Company Private Limited, India	5833100
Kakinada Infrastructure Holdings Private Limited, India	21550905
K.V. Rao	20
Karnati Navatha	20
Polavarapu Jayadev	10
Kari Ramesh Babu	10
Madala Rajendra	10
VR Investments Pte. Limited, Singapore	15934959
Total	52412239

AS ON 28.09.2012

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]	47.75
Others	52.25
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of development and maintenance of port.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

• Bank of India, Chennai Large Corporate Branch, IV Floor, Tarapore Towers, 826 Annasalai, Chennai – 600 002, Tamilnadu, India
• Axis Bank Limited, #6-3-879/B, G. Pullareddy Building, 1^st Floor, Begumpet, Hyderabad – 500 016, Andhra Pradesh, India
• Union Bank of India, Industrial Financial Branch, "Riaz Garden", 12, Kodambakkam High Road, Nungambakkam, Chennai – 600 034, Tamilnadu, India
• Development Credit Bank Limited, No.61; Nungambakkam High Road, Chennai – 600 034, Tamilnadu, India
• Bank of India, Star House, C-G,'G' Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks	3930.132	1713.380
Total	3930.132	1713.380

Banking Relations :	--
Auditors :
Name :	Brahmayya and Company Chartered Accountants
Address :	48, Masilamani Road, Balaji Nagar, Royapettah, Chennai – 600 014, Tamilnadu, India
PAN No.:	AADFB8032G
Subsidiaries (As on 31.03.2011) :	Kakinada Power Private Limited (Formerly known as Kakinada LPG Private Limited)
Associates (As on 31.03.2011) :	Bhagyanagar Gas Limited Sembmarine Kakinada Limited, India (CIN No.: U74900AP2009PLC065785)
Enterprises over which key Managerial personnel are able to exercise significant influence (As on 31.03.2011) :	United Port Services Limited (UPSL), India (CIN No.: U51909AP1991PLC012474) Kakinada Infrastructure Holdings Private Limited, India (CIN No.: U67120AP2006PTC050760)
Other Related parties (As on 31.03.2011) :	Southindia Infrastructure Development Company Private Limited, India (CIN No.: U45204TN1999PTC042562) Samudra Maritime Company Private Limited, India (CIN No.: U29110TN2008PTC067881) Kakinada Security Services Private Limited, India (CIN No.: U93000AP2008PTC061952) Kakinada Marine and Offshore Complex Limited, India (CIN No.: U40200AP2005PLC046138)

CAPITAL STRUCTURE

AS ON 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000000	Equity Shares	Rs.10/- each	Rs.1000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
52412239	Equity Shares	Rs.10/- each	Rs.524.122 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		524.122	524.122
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		2221.007	1689.128
4] (Accumulated Losses)		0.000	0.000
NETWORTH		2745.129	2213.250
LOAN FUNDS
1] Secured Loans		3930.132	1713.380
2] Unsecured Loans		1187.469	75.921
TOTAL BORROWING		5117.601	1789.301
DEFERRED TAX LIABILITIES		198.821	93.320
TOTAL		8061.551	4095.871
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5851.937	2797.679
Capital work-in-progress		1449.813	1076.714
INVESTMENT		737.000	244.300
DEFERRED TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.726	1.716
	Sundry Debtors	293.255	127.589
	Cash & Bank Balances	298.636	190.488
	Other Current Assets	0.000	0.000
	Loans & Advances	718.158	465.622
Total Current Assets		1314.775	785.415
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	858.409	499.596
	Other Current Liabilities	117.490	103.811
	Provisions	316.075	204.830
Total Current Liabilities		1291.974	808.237
Net Current Assets		22.801	(22.822)
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		8061.551	4095.871

Note: Balance Sheet for the year 2012 is not available only Profit & Loss A/c is available.

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	1848.612	1623.407	1285.881
		Other Income	29.070	54.615	29.692
		TOTAL (A)	1877.682	1678.022	1315.573
Less	EXPENSES
		Employee benefit expense	30.465	26.031	22.352
		Other expenses	479.100	442.574	325.605
		TOTAL (B)	509.565	468.605	347.957
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1368.117	1209.417	967.616
Less	FINANCIAL EXPENSES (D)		377.780	277.129	214.981
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		990.337	932.288	752.635
Less/ Add	DEPRECIATION/ AMORTISATION (F)		388.926	290.671	157.459
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		601.411	641.617	595.176
Less	TAX (H)		114.743	109.737	96.593
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		486.668	531.880	498.583
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2221.008	1689.128	1190.545
	BALANCE CARRIED TO THE B/S		NA	2221.008	1689.128
	EARNINGS IN FOREIGN CURRENCY		10.479	42.955	147.776
	CIF VALUE OF IMPORTS		NA	118.894	Nil
	Earnings / (Loss) Per Share (Rs.)		9.29	10.15	9.51

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	25.92	31.70	37.90
Net Profit Margin (PBT/Sales)	(%)	32.53	39.52	46.29
Return on Total Assets (PBT/Total Assets}	(%)	NA	8.95	16.61
Return on Investment (ROI) (PBT/Networth)		NA	0.23	0.27
Debt Equity Ratio (Total Debt/Networth)		NA	1.86	0.81
Current Ratio (Current Asset/Current Liability)		NA	1.02	0.97

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	No
9) Name of person contacted	Yes
10) Designation of contact person	Yes
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	No
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	Yes

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Foreign currency loans banks	1187.469	0.000
Working capital loans banks	0.000	75.921
Total	1187.469	75.921

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10015673	02/05/2013 *	5,211,833,266.00	Bank of India	Chennai Large Corporate Branch, IV Floor, Tarapore Towers, 826 Annasalai, Chennai, Tamilnadu - 600002, India	B76194349

* Date of charge modification

FINANCIAL RESULTS:

There has been an increase of 12% in the revenues, over the previous year, despite no significant changes in cargo volumes. Consequent to commencement of operations interest costs relating to NRW Berths and 5^th and 6^th Berths which are charged off from the date of commencement of operations and consequently there has been an increase in Depreciation due to capitalisation of 5^th and 6^th berths during the year and cumulatively all the above factors resulted in lower Net profit compared to previous year.

FIXED ASSETS:

Tangible Assets

· Buildings/ Berths

· Plant and Machinery

· Furniture and Fittings

· Office Equipment and Vehicles

· Channel Dredging

· Railway Siding

· Land – Leasehold Premium and Improvements

· Tugs and Pilot Launch

Intangible Assets

· Software

WEBSITE DETAILS:

PRESS RELEASES/ NEWS:

VIGILANCE RAID IN KAKINADA SEAPORT

Posted on 27-October-2012

Illegitimate storage of 8,715 metric tonnes of rice worth Rs.14.89 was taken into the custody of Vigilance department officers in a raid at Kakinada Seaport. This raid was conducted as they received information that Ration Rice is being exported. Vigilance DSP Mr. Rama Chandra Rao said that from Morning till Night they have inspected three godowns in which two of them are consisting of storage more than what is shown in the. Exporter of Rice Mr. Arun Chabiya has brought rice from Satyam Balaji Rice Industroies Private Limited in Raipur and stored rice in two godowns of Neelhath Logistics and Shipping Agent of Kakinada Seaport, he added.  

As there was no receipt shown for these storages and as major variation was found between the records and storage, Vigiliance department has taken into their custody and handed over the whole storage along with the sample taken for testing to the Civil Supplies department. He also said that they are going to investigate on how they have got the permission for this storage.  

SEMBCORP MARINE’S SEMBAWANG SHIPYARD AND KAKINADA SEAPORTS SIGN JOINT VENTURE TO ESTABLISH A MARINE AND OFFSHORE FACILITY IN INDIA’S EAST COAST

Singapore, November 25, 2009: Sembawang Shipyard, a wholly-owned subsidiary of Sembcorp Marine, and Kakinada Seaports Limited (Kakinada Seaports), will sign an agreement to form a joint venture (JV) company, Sembmarine Kakinada Limited (SKL), to establish and operate a marine and offshore facility catering to offshore drilling units and merchant vessels trading or operating in Indian waters.

SKL is strategically located in the East Coast of India between Vishakhapatnam and Chennai Port. The East Coast of India is one of the world’s key oil and gas exploration areas. The investment in this facility is a strategic fit and is in line with Sembcorp Marine’s Indian hub strategy to cater to the growing needs of customers operating in India. Well supported by the Indian government and the oil and gas industry, SKL will boost the business of Sembcorp Marine and further promote the Kakinada Port area.

Sembcorp Marine through Sembawang Shipyard will hold 19.9% share of the JV’s initial investment of US$50 million, with an option to increase to 40%. The joint venture partner, Kakinada Seaports is the first private port to operate in the East Coast of India and it is currently one of India’s busiest ports. Kakinada Seaports serves more than 3,500 ship-calls annually and plays an important role in the efficient turnaround of vessels requiring replenishment, bunkering and ancillary services.

Stages of Development

SKL will operate this new marine and offshore facility within the vicinity of Kakinada Seaports. SKL is to be developed in stages. SKL will initially provide riser/equipment repairs, afloat repairs and modules fabrication. Within 3 to 5 years, SKL will become a one-stop integrated offshore service facility catering to offshore vessels and merchant ships including the repairs and servicing of offshore vessels and ships, new-building of offshore vessels and ships, riser/equipment repairs and modules fabrication.

Sembmarine Kakinada will commence operations immediately by using the available pier at the Kakinada port.

Signing of Joint Venture Contract

The joint venture contract will be signed by Mr. K.V. Rao, Chairman and Managing Director of Kakinada Seaports and Mr. Ong Poh Kwee, Deputy President of Sembcorp Marine and Managing Director of Sembawang Shipyard, in a ceremony in New Delhi. The event which will also mark the achievement of another milestone in the long-standing excellent cooperation between Singapore and India, will be attended by more than 250 guests from all over the world, governmental dignitaries from India and Singapore, and key representatives from major oil and offshore companies such as ONGC, Oil India, Reliance, Aban Offshore, Transocean, BG India, Essar, Cairn Energy, Jindal, etc.

Signing of Favoured Customer Contracts

Major offshore companies operating in the East Coast of India are expected to use the facilities of the newly established SKL to support their growing offshore oil and gas activities in India’s East Coast. At today’s ceremony held in New Delhi, Transocean Offshore International Ventures Limited, India, subsidiary of Transocean Inc. USA, will sign a “Favoured Customer Contract” with the newly established SKL to use its facilities to support its ongoing offshore drilling units. At the same ceremony, SKL will also sign a similar contract with Aban Offshore Limited, Asia’s largest private drilling company to repair/upgrade its drilling units and, with MARCAS, which includes V-Ships, the world’s largest ship-management company, to repair its fleet of vessels trading to India.

Barring unforeseen circumstances, Sembcorp Marine expects positive contributions to its earnings from the Joint-Venture facility in the future. However, the above investment is not expected to have a material impact on Sembcorp Marine’s earnings and net tangible assets per share for the current financial year ending 31 December 2009. The investment will be funded from Sembcorp Marine’s own internal resources.

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.61.12
UK Pound	1	Rs.94.77
Euro	1	Rs.81.54

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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		63

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.