MIRA INFORM REPORT

Report Date :

05.01.2013

IDENTIFICATION DETAILS

Name :	EMMSONS INTERNATIONAL LIMITED
Registered Office :	2637, 1^st Floor, Naya Bazar, Delhi – 110 006
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.04.1993
Com. Reg. No.:	55-053060
Capital Investment / Paid-up Capital :	Rs. 51.480 Millions
CIN No.: [Company Identification No.]	L74899DL1993PLC053060
TAN No.: [Tax Deduction & Collection Account No.]	DELE02927B
PAN No.: [Permanent Account No.]	AAACE0442K
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged in the trading of commodities like rice, sugar, wheat, steel, cotton, soya meal, metals, etc., and has business interests in travel and tourism.
No. of Employees :	78 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (43)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 3100000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject belongs to the EMMSONS GROUP. It is an established company having satisfactory track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered 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	ICRA
Rating	Fund Based : BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	August 2011

Rating Agency Name	ICRA
Rating	Term Loans : BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	August 2011

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 :	2637, 1^st Floor, Naya Bazar, Delhi – 110 006, India
Tel. No.:	91-11-22929341/ 22922810
Fax No.:	91-11-22924234
E-Mail :	shailesh@emmsons.com corporate@emmsons.com
Website :	http://www.emmsons.com
Administrative Office :	101, South Delhi House 12, Zamarudpur Community Center Kailash Colony, New Delhi – 110048, India
Tel. No.:	91-11-29247721 to 28
Fax No.:	91-11-29247730/ 41632081
E-Mail :	corporate@emmsons.com
Foreign Offices :	Ø Emmsons SA., Place du March 3, CP 156, 1860 Aigle, Switzerland Ø Emmsons Gulf DMCC, 3406, 1- Lake Plaza Plot No. T2, Jumeirah Lakes Towers, Dubai, U.A.E.

DIRECTORS

AS ON 31.03.2011

Name :	Mr. Anil Monga
Designation :	Managing Director
Name :	Mr. Rajesh Monga
Designation :	Whole-time Director
Name :	Mr. Shivaz Monga
Designation :	Executive Director
Name :	Mr. Vijay Kumar Kakkar
Designation :	Professional and Independent Director
Name :	Mr. Viresh Shankar Mathur
Designation :	Professional and Independent Director
Name :	Mr. Satish Chandra Gupta
Designation :	Professional and Independent Director

KEY EXECUTIVES

Name :	Mr. Hamant Paul
Designation :	General Manager [Finance] and Chief Finance Officer
Name :	Mr. Suvindra Kumar
Designation :	Company Secretary (w.e.f. 06^th July, 2009)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2868244	47.82
Bodies Corporate	230250	3.84
Sub Total	3098494	51.66
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	10230	0.17
Sub Total	10230	0.17
Total shareholding of Promoter and Promoter Group (A)	3108724	51.83
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	473174	7.89
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	702128	11.71
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	1466128	24.44
Any Others (Specify)	247866	4.13
Clearing Members	9139	0.15
Non Resident Indians	238727	3.98
Sub Total	2889296	48.17
Total Public shareholding (B)	2889296	48.17
Total (A)+(B)	5998020	100.00
© Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0
(2) Public	0	0
Sub Total	0	0
Total (A)+(B)+(C)	5998020	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the trading of commodities like rice, sugar, wheat, steel, cotton, soya meal, metals, etc., and has business interests in travel and tourism.

Products :

ITC Code	Product Descriptions
10060	Rice
170100	Sugar
27011920	Coal

GENERAL INFORMATION

No. of Employees :

78 (Approximately)

Bankers :

Ø Oriental Bank of Commerce, Overseas Branch, M-33, Greater Kailash-II, New Delhi-110048, India

Ø Allahabad Bank, International Branch, 3rd Floor, 17, Parliament Street, New Delhi – 110001, India

Ø Indian Overseas Bank, A-19/22, Moolchand Shopping Complex, Defence Colony, New Delhi-110024, India

Ø Bank of Baroda, 1st Floor, 16, Parliament Street, New Delhi-110001, India

Ø HDFC Bank

Ø ICICI Bank

Ø Standard Chartered Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Long Term Secured Loan
Vehicle Loans from HDFC Bank (Secured against hypothecation of Cars)	0.382	0.000
Vehicle Loans from ICICI Bank (Secured against hypothecation of Cars)	0.112	2.993
Vehicle Loans from Kotak Mahindra Prime Limited (Secured against hypothecation of Cars)	6.732	2.593
Vehicle Loans from Tata Capital Limited (Secured against hypothecation of Cars)	0.162	0.555
Corporate Loan from Indian Overseas Bank (Secured against the personal gurantees of Directors)	267.660	0.000
ECB from Allahabad Bank, Hongkong Branch (Secured against the personal gurantees of Directors, immovable property of the company and pledge of the Shares)	89.220	0.000
Short Term Secured Loan
Packing Credit with Oriental Bank of Commerce (Secured against hypothecation of Stocks and advances, equitable mortgage of Properties and Personal guarantees of Directors )	177.134	614.080
Packing Credit with Indian Overseas Bank (Secured against hypothecation of Stocks and advances, equitable mortgage of Properties and Personal guarantees of Directors )	238.623	262.640
Packing Credit with Bank of Baroda (Secured against hypothecation of Stocks, equitable Mortgage of Properties and Personal guarantees of Directors)	243.692	0.000
Packing Credit with Allahabad Bank (Secured against hypothecation of current assets ,equitable Mortgage of Properties and Personal guarantees of Directors )	376.314	216.735
PCFC with Standard Chartered Bank (Secured against hypothecation of current assets ,equitable Mortgage of Properties and Personal guarantees of Directors )	0.000	444.659
Buyer's Credit through Oriental Bank of Commerce (Secured against hypothecation charge over the goods, equitable mortgage of Properties and Personal guarantees of Directors )	198.078	38.954
Buyer's Credit through Indian Overseas Bank (Secured against hypothecation charge over the goods, equitable mortgage of Properties and Personal guarantees of Directors )	91.128	34.225
Buyer's Credit through Bank of Baroda (Secured against hypothecation charge over the goods, equitable mortgage of Properties and Personal guarantees of Directors )	214.128	0.000
Total	1903.365	1617.434
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Purchase Bill Finance from Standard Chartered Bank	0.000	43.413
Total	0.000	43.413

Banking Relations :	--
Financial Institution :	Kotak Mahindra Prime Limited
Auditors :
Name :	Suresh and Associates Chartered Accountants
Address :	3A Bigjo's Tower, Netaji Subhash Place, Pitampura, Delhi-110034, India
Subsidiaries :	Ø Emmsons S.A. Ø Emmsons Gulf DMCC

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs. 10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5148020	Equity Share	Rs.10/- each	Rs. 51.480 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		51.480	51.480	51.480
2] Share Application Money		0.000	0.000	0.000
3] Share Warrants		2.250	0.000	19.500
4] Reserves & Surplus		728.686	622.904	485.270
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		782.416	674.384	556.250
LOAN FUNDS
1] Secured Loans		1903.365	1617.434	1312.453
2] Unsecured Loans		0.000	43.413	0.000
TOTAL BORROWING		1903.365	1660.847	1312.453
DEFERRED TAX LIABILITIES		2.109	2.483	2.542
TOTAL		2687.890	2337.714	1871.245
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		105.359	81.461	70.334
Capital work-in-progress		6.724	4.875	0.000
INVESTMENT		62.305	64.697	35.712
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	994.583	1891.445	1201.562
	Sundry Debtors	2818.128	506.735	457.739
	Cash & Bank Balances	492.854	123.215	58.572
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1350.348	1149.465	1213.500
Total Current Assets		5655.913	3670.860	2931.373
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3041.662	1365.373	857.614
	Other Current Liabilities	41.181	45.105	277.904
	Provisions	59.568	73.701	30.656
Total Current Liabilities		3142.411	1484.179	1166.174
Net Current Assets		2513.502	2186.681	1765.199
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2687.890	2337.714	1871.245

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	13098.824	6386.827	6752.123
		Other Income	325.844	545.459	(199.118)
		TOTAL (A)	13424.668	6932.286	6553.005
Less	EXPENSES
		Cost of Goods Sold	12257.953	6065.084	5478.252
		Direct Expenses	628.398	343.649	740.932
		Office and Administrative Expenses	81.588	80.920	62.519
		Selling & Distribution Expenses	6.895	6.781	9.029
		Other Expenses	19.268	21.129	21.185
		TOTAL (B)	12994.102	6517.563	6311.917
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		430.566	414.723	241.088
Less	FINANCIAL EXPENSES (D)		277.752	208.411	130.215
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		152.814	206.312	110.873
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.894	4.997	4.618
	PROFIT BEFORE TAX (E-F) (G)		146.920	201.315	106.255
Less	TAX (H)		49.599	71.592	42.387
	PROFIT AFTER TAX (G-H) (I)		97.321	129.723	63.868
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		286.069	181.935	138.264
Less/ Add	Short/ (Excess) Provision of Income Tax for earlier Years		4.323	[0.457]	4.174
Less	APPROPRIATIONS
		Transfer to General Reserve	7.300	14.000	10.000
		Dividend	10.296	10.296	5.148
		Tax on Dividend	1.670	1.750	0.875
	BALANCE CARRIED TO THE B/S		359.801	286.069	181.935
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Export Earnings	3955.300	3054.400	4635.900
	CIF VALUE OF IMPORT		930.000	2665.100	1267.900
	Earnings Per Share (Rs.)		18.90	25.20	12.41

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012	30.06.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	5^th Quarter
Sales Turnover	3252.420	2969.950	7973.050	4802.600	5576.070
Total Expenditure	3128.990	2846.880	7768.450	4654.370	5377.430
PBIDT (Excl OI)	123.430	123.070	204.600	148.230	198.640
Other Income	0.000	0.030	0.020	51.190	22.340
Operating Profit	123.430	123.100	204.620	199.420	220.980
Interest	100.730	94.200	137.240	159.430	153.100
Exceptional Items	0.000	0.000	0.000	20.000	0.000
PBDT	22.700	28.900	67.380	59.990	67.880
Depreciation	1.710	1.750	1.870	1.970	2.030
Profit Before Tax	20.980	27.150	65.510	58.010	65.840
Tax	5.000	7.000	23.000	15.000	22.000
Provisions and contingencies	0.000	0.000	0.000	0.000	0.000
Reported PAT	15.980	20.150	42.510	43.010	43.840
Extraordinary Items	0.000	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000	0.000
Net Profit	15.980	20.150	42.510	43.010	43.840

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.72	1.87	0.97
Net Profit Margin (PBT/Sales)	(%)	1.12	3.15	1.57
Return on Total Assets (PBT/Total Assets}	(%)	2.55	5.37	3.54
Return on Investment (ROI) (PBT/Networth)		0.19	0.30	0.19
Debt Equity Ratio (Total Liability/Networth)		6.45	4.66	4.46
Current Ratio (Current Asset/Current Liability)		1.80	2.47	2.51

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	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	No
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

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Overview

The financial statements have been prepared in compliance with the requirements of the Companies Act, 1956, guidelines issued by the Securities and Exchange Board of India (SEBI) and the Generally Accepted Accounting Principles (GAAP) in India.

The Management accepts responsibilities for the integrity and objectivity of these financial statements, as well as for the various estimates and judgments used therein. The estimates and Judgments relating to the financial statements have been made on prudent and reasonable basis, so that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably present our state of affairs, profit and cash flows for the year.

Industry Structure and Developments

Last year the Company raised its targets to higher levels to be achieved in due course. The plans were made and efforts were put in to achieve the set targets. The efforts turned this year into a remarkable year for the Company, as the Company have achieved the significant increase in the terms of Turnover and crossed the rupees thousand crore milestone first time in its history.

This was achieved inspite of considerably high levels of inflation in the country and the continued ban on export of major agri product. The management remained positive, and put all its effort to achieve the higher targets, which was significantly accomplished in this year.

When the performance improves, certain recognition also follows. The Company has been ranked on 18th position amongst the 'India's Fastest Growing Companies' in the Middleweight segment, as noted in BUSSINESSWORLD Magazine of 23rd May, 2011.

This year has been the year of achievements, however we will not rest on our laurels, and look forward to a further improved performance in the years to come.

Future Directions

The Company's focus was shifted towards imports and third country trade in the last year, which took the Company in the next phase of growth and the results are noteworthy. Further impetus was provided by its UAE subsidiary, which added more commodities and markets and contributed significantly to the growth of the group. The company also expects substantial contribution to its growth trajectory from Ukraine based agricultural farming projects, with appointment of local professionals and experts. With these initiatives the Company is very positive towards achieving greater heights in the times to come and expects to be reckoned as a reputed multinational Company.

Financial and Operational Performance

Emmsons delivered superior financial performance with improvements across key parameters and the turnover achieved for the year ended March 31, 2011 was Rs. 13424.700 Millions as compared to Rs. 6932.300 Millions for the last financial year.

SUBSIDIARY COMPANIES

The Company has now presence in various countries of the world through its subsidiaries and associates. The Management has very clear vision to make the Company a global multinational in years to come. At present the Company has following overseas presence through its subsidiaries:

UNITED ARAB EMIRATES:

In the year 2009, the Company had established its subsidiary, Emmsons Gulf DMCC in Dubai, UAE, The main activity of this Company is International trading of various commodities and fertilizers.

In a short span of time, the subsidiary has been able to establish itself well with focus on the Middle-East markets. The company has emerged as mainstay of Emmsons Group in the lucrative Middle-East Markets.

SWITZERLAND:

The Emmsons SA, was established in the year 2007 in Switzerland as a subsidiary of the Company with its main activity of International Trading and Shipping, The Swiss subsidiary could not make much headway during the year. However the Company visualizes to recover in current financial year.

INTERNATIONAL PROJECTS

INDONESIA:

The Company had entered into a Joint Venture in the year 2008, for the purpose of acquiring Coal Mine(s) in Indonesia. Finally Emmsons Group has acquired 25% stake in a coal mining project in Indonesia through Emmsons Gulf DMCC. Your management considers the stake as a strategic asset, which will lead our entry into the power sector.

UKRAINE:

During the year farming project in Ukraine has shown the major progress, with appointment of local professionals and experts and expect the fruitful outcomes from current financial year. Steps have been taken to complete the structuring process and are likely to be completed in the coming months.

AUDITED STANDALONE FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2012

(Rs. In Millions)

Particular	Year Ended
	31.03.2012 (Audited)
Income from Operations
Net Sales	19067.316
Other Operating Income	[100.579]
Total Income from operations (net)	18966.737
Expenses
(a) Cost of material consumed	--
(b) Purchase of stock in trade	18421.695
(c) Change in inventories of finished goods, work in progress and stock in trade	[2007.190]
(d) Employee benefit expenses	83.261
(d) Depreciation and amortization expenses	7.297
(e) Other Expenses
Freight and Cartage	1473.018
Other Expenses	399.462
Total Expenses	18377.543
Profit from Operations before Other Income, Finance costs and Execeptional item	589.194
Other Income	86.007
Profit/ Loss from Ordinary Activities before Finance costs and Execeptional item	675.201
Finance costs	524.136
Profit/ Loss from Ordinary Activities after Finance costs but Execeptional item	151.065
Execeptional item	20.573
Profit/ Loss from Ordinary Activities before tax	171.638
Tax Expenses	49.916
Net Profit/ Loss from Ordinary Activities after tax	121.722
Extraordinary Items	--
Net Profit for the period	121.722
Share of profit/ Loss of associates	--
Minority interest	--
Net Profit/ Loss after taxes, minority interest and share of profit/ loss of associates	121.722
Paid- up Equity Share Capital (Face value of the share – Rs. 10)	59.980
Reserves excluding revaluation reserves as per balance sheet of Previous Accounting Year	898.828
Earnings per share (before extraordinary items) (of Rs. 10/- each) (not annualized) - Basic	23.31
- Diluted	23.31
Earnings per share (after extraordinary items) (of Rs. 10/- each) (not annualized) - Basic	23.31
- Diluted	23.31
PARTICULARS OF SHAREHOLDING
1. Public shareholding
Number of Shares	2889296
Percentage of Shareholding	48.17%
2. Promoters and promoter group shareholding
a) Pledged/Encumbered
- Number of Shares	1586990
- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	51.05%
- Percentage of Shares (as a % of the Total Share Capital of the Company)	26.46%
Non - encumbered
- Number of Shares	1521734
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	48.95%
- Percentage of Shares (as a % of the total share capital of the company)

NOTES:

1. The above results have been reviewed by the audit committee and taken on record at the meeting of the Board of Directors held on 14^th, August, 2012.

2. The EPS has been computed in accordance with the Accounting Standard 20, issued by the ICAI.

3. The figures of previous year/ quarter have been regrouped, rearranged wherever necessary to confirm with this year/ quarter classification.

4. The Company has global trading operation covering wide range of commodities like agro, Minerals and others. In view of its integrated nature of business it is necessary to view the business in its entirely and therefore, there are no separate segment within the company as defined by Accounting Standard 17 [Segmenting Reporting] issued by the ICAI.

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Rs. in Millions)

Particulars		31.03.2012
A. EQUITY AND LIABILITIES		Audited
1. Shareholders Funds
a] Share Capital		59.980
b] Reserves and Surplus		898.828
c] Money received against share warrants		--
2. Minority Interest		--
3. Non-current Liabilities
a] Long term Borrowings		234.482
b] Deferred Tax Liabilities		--
c] Other long term liabilities		1.425
d] Long term provisions		21.494
4. Current Liabilities
a] Short term Borrowings		5014.129
b] Trade Payables		1255.288
c] Other Current Liabilities		192.040
d] Short Term Provision		57.665
TOTAL		7735.331
B ASSETS
1. Non-current assets
a] Fixed assets
1. Tangible assets		133.617
2. Intangible assets		0.303
3. Capital work in progress		0.742
b] Non-current investments		59.594
c] Deferred tax assets		1.164
d] long Term loans and Advances		142.098
e] Other non-current assets		20.588
2. CURRENT ASSETS
	Current Investments	21.567
	Inventories	3001.773
	Trade Receivables	2425.363
	Cash & Bank Balances	557.690
	Short Term loans and advances	1024.355
	Other Current Assets	346.477
TOTAL		7735.331

CONTINGENT LIABILITIES:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
a) Guarantees to sales tax authorities	0.590	0.590
b) Corporate Guarantees for Credit facilities to subsidiary	1525.404	289.350
c) Letter of Credit issued for purchases	742.757	86.250
d) Other Guarantees	352.363	82.743

e) The Entry Tax demands Rs. 1.143 Millions raised by the authorities have been protested by the company and final determination is yet to be made by the appellate authorities. The company has however made the payment against these demands under protest and the same is included in the list of Loans and advances. In the event case is finally decided against the Company the said amount of Rs. 1.143 Millions shall be required to be charged as an expense to Profit and Loss account.

f) Tax Demand totaling Rs. 0.860 Millions for Assessment year 2004-2005 raised by the Income Tax Department is being contested by the Company in appeal. No provision has been made for the liability in the accounts under report. Other Tax demand of Rs. 1.011 Millions for Assessment Year 2008-2009 raised by Income Tax Department is under rectification for apparent error.

FIXED ASSETS:

Ø Land

Ø Building

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Vehicles

Ø Computers

Ø Office Equipments and Fittings

Ø Generator

Ø Website Development Charges

Ø Trade Mark

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 convicte, 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. 54.85
UK Pound	1	Rs. 88.16
Euro	1	Rs. 71.54

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
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

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.