MIRA INFORM REPORT

Report Date :

11.01.2013

IDENTIFICATION DETAILS

Name :	K.S. COMMODITIES PRIVATE LIMITED
Registered Office :	719, Indra Prakash Building, 21, Barakhamba Road, New Delhi – 110001
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.07.1998
Com. Reg. No.:	55-095261
Capital Investment / Paid-up Capital :	Rs. 25.000 Millions
CIN No.: [Company Identification No.]	U99999DL1998PTC095261
TAN No.: [Tax Deduction & Collection Account No.]	DELK04959D
Legal Form :	Private Limited Liability Company
Line of Business :	Trading in Commodities and Metals.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 130000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has been successfully in wiping off its accumulated losses of the previous years. However, the company is still improving. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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	FITCH
Rating	B(ind)- (Non Fund Based Limit)
Rating Explanation	This Rating denotes significantly weak credit risk.
Date	16.03.2012

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 :	719, Indra Prakash Building, 21, Barakhamba Road, New Delhi – 110001, India
Tel. No.:	91-11-23352070/ 71/ 72/ 43795555
Fax No.:	91-11-23352072
E-Mail :	akaggarwalca@gmail.com mail@ksc.co.in
Website :	http://www.ksc.co.in

DIRECTORS

AS ON 20.07.2012

Name :	Mr. Aatish Narang
Designation :	Director
Address :	E-219, II Floor, Greater Kailash, New Delhi – 110048, India
Date of Birth/Age :	29.11.11985
Date of Appointment :	20.10.2009
PAN No.:	ADOPN1854A
DIN No.:	00767025

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	U74899DL1994PTC062246	TRUST COMMODITIES PRIVATE LIMITED	Director	14/12/2006	14/12/2006	08/06/2009	Active	NO
2	U99999DL1998PTC095261	K.S. COMMODITIES PRIVATE LIMITED	Director	20/10/2009	20/10/2009	-	Active	NO

Name :	Mr. Narain Mohan Narang
Designation :	Director
Address :	E-219, II Floor, Greater Kailash – I, New Delhi – 110048, India
Date of Birth/Age :	08.11.1956
Date of Appointment :	29.07.1998
PAN No.:	AAHPN8631P
DIN No.:	00289988

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	U99999DL1998PTC095261	K.S. COMMODITIES PRIVATE LIMITED	Director	29/07/1998	29/07/1998	-	Active	NO
2	U74899DL1994PTC062246	TRUST COMMODITIES PRIVATE LIMITED	Director	09/03/2004	09/03/2004	26/12/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 20.07.2012

Names of Shareholders	No. of Shares
Narain Mohan Narang	900000
Rita Narang	332500
Trust Commodities Private Limited, India	250000
Aatish Narang	405000
Seema Verma	362500
Saumya Narang	250000
TOTAL	2500000

AS ON 14.12.2012

Names of Allottees	No. of Shares
Seema Verma	76923
TOTAL	76923

AS ON 20.07.2012

Equity Shares Break Up	Percentage of Holding
Bodies corporate	10.00
Directors or relatives of Directors	90.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Trading in Commodities and Metals.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of Baroda, International Business Branch, Parliament Street, New Delhi-110001, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Loans Taken for Vehicles	0.378	0.000
Working Capital Loans from Banks	104.681	54.613
TOTAL	105.059	54.613
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Other Loans and advances	8.800	0.784
TOTAL	8.800	0.784

Banking Relations :	--
Auditors :
Name :	Gopal Mittal and Associates Chartered Accountant
Address :	301 and 302, IIIrd Floor, 79, Shyam Lal Marg, Daryaganj, New Delhi – 110002, India
Tel. No.:	91-11-23282206
Fax No.:	91-11-23285390
PAN No.:	AAAFG9401F
Related Parties :	· K.S. Commodities (Proprietorship of Aatish Narang) · K.S. Intertrade Corporation (Proprietorship of Narain Mohan Narang) · Trust Commodities Private Limited (Director of Narain Mohan Narang) CIN No.:- U74899DL1994PTC062246

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs. 25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs. 25.000 Millions

AS ON 20.07.2012

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2576923	Equity Shares	Rs.10/- each	Rs. 25.769Millions

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		25.000	17.625	17.625
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7.733	(2.268)	0.218
4] (Accumulated Losses)		0.000	0.000	(3.339)
NETWORTH		32.733	15.357	14.504
LOAN FUNDS
1] Secured Loans		105.059	54.613	85.808
2] Unsecured Loans		8.800	0.784	0.000
TOTAL BORROWING		113.859	55.397	85.808
DEFERRED TAX LIABILITIES		0.026	0.030	0.046
TOTAL		146.618	70.784	100.358
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.111	1.473	1.215
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.005
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.871	0.000	73.985
	Sundry Debtors	107.341	45.840	1.391
	Cash & Bank Balances	0.584	0.302	10.405
	Other Current Assets	3.416	3.622	0.000
	Loans & Advances	38.337	26.191	19.804
Total Current Assets		164.549	75.955	105.585
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.264	6.345	3.291
	Other Current Liabilities	1.054	0.299
	Provisions	3.724	0.000	3.156
Total Current Liabilities		20.042	6.644	6.447
Net Current Assets		144.507	69.311	99.138
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		146.618	70.784	100.358

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1306.000	758.300	987.100
		Other Income
		TOTAL	1306.000	758.300	987.100
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		NA	NA	NA
Less/ Add	DEPRECIATION/ AMORTISATION		0.374	0.249	0.259
	PROFIT / (LOSS) BEFORE TAX		NA	NA	NA
Less	TAX		NA	NA	NA
	PROFIT / (LOSS) AFTER TAX		13.733	0.841	3.321
	Earnings Per Share (Rs.)		4.55	0.48	1.63

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.05	0.11	0.34
Debt Equity Ratio (Total Liability/Networth)		4.09	4.04	6.36
Current Ratio (Current Asset/Current Liability)		8.21	11.43	16.38

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	Yes

FINANCIAL RESULTS

During the year 2011-12, the total turnover was amounting to Rs 1306.000 Millions as against Rs.758.300 Millions in the previous year and the Profit and Loss Account shows a net Profit of Rs 13.733 Millions as against the profit of Rs 0.841 Million in the previous year after charging Depreciation of Rs. 0.374 Million as against Rs. 0.249 Million. No dividend is recommended to conserve resources.

FORM 8

Corporate identity number of the company	U99999DL1998PTC095261
Name of the company	K.S. COMMODITIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	719, Indra Prakash Building, 21, Barakhamba Road, New Delhi – 110001, India akaggarwalca@gmail.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Bank of Baroda International Business Branch, Parliament Street, New Delhi – 110001, India ca_rcg@yahoo.co.in
Nature of instrument creating charge	Composite Hypothecation Agreement dated 23.07.2011
Date of instrument Creating the charge	23.07.2011
Amount secured by the charge	Rs.35.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: At such rate(s) as are applicable to PC/CC limits from time to time. Terms of Repayments: Payable on demand Margin: PC -25%, CC - 30% Extend and Operation of the charge: 100% Others: To secure all amounts payable under Adhoc Packing Credit/CC limit of Rs. 35.000 Millions granted to the Company together with all interests, costs, charges, expenses etc.
Particulars of the property charged	Hypothecation of the following: a) The whole of the Borrower's stocks - both present and future and including but without prejudice to the generality of the foregoing words, all stocks of raw-materials, work-in-process, semi-finished goods and finished goods, packing materials, stores etc. such as stocks of raw-materials, stock-in-progress, semi-finished goods and finished goods whatsoever and wheresoever’s situate at and/or in transit whether now belonging to or that may at any time during the continuance of this security belong to the Borrower or that may be held by any party anywhere to the order and disposition of the Borrower. b) All the present and future book-debts, outstanding, monies receivables, claims, bills, contracts, engagements and securities which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing to the borrower in the course of its business by any person, firm, company or body corporate or by the Govt. of India or any State Govt. or Indian Railways or and Government Department or office or any municipal or local or public or semi government body or authority whatsoever including those relating to the assets leased out and/or given on hire purchased basis. c) All tangible moveable machinery and plant and cranes, boats and craft and the vehicles of the Borrower together with spares, tools and accessories and other moveable - both present and future and the furniture, fixtures and fittings and office equipment whether installed or not and whether lying loose or in case which are now lying or stored in or about or shall be brought into or be stored or be in or upon or about the borrower's premises and godowns or wherever else the same may be or be held by any party to the order and disposition of the Borrower (including those on lease or hire purchase) relating or pertaining to the Borrower M/s K.S. Commodities Private Limited having a regd. office at 719-720, Indraprakash Building, 21 Barakhamba Road, New Delhi, India

FIXED ASSETS

· Air Conditioner

· Furniture and Fixture

· Television

· Mobile

· Fax

· Computers

· Car

· Inverter

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. 54.63
UK Pound	1	Rs. 87.50
Euro	1	Rs. 71.32

INFORMATION DETAILS

Report Prepared by :

DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		29

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.