MIRA INFORM REPORT

Report Date :

09.11.2013

IDENTIFICATION DETAILS

Name :	KRISHANA PHOSCHEM LIMITED
Registered Office :	5-O-2, Basement Office, R.C. Vyas Colony, Bhilwara – 311001, Rajasthan
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	14.05.2004
Com. Reg. No.:	17-019288
Capital Investment / Paid-up Capital :	Rs.180.000 Millions
CIN No.: [Company Identification No.]	U24124RJ2004PLC019288
PAN No.: [Permanent Account No.]	AACCK4616K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Industrial Chemicals, Minerals and Ores.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1700000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Financial position of the company appears to be average. Trade relations are reported to be fair. Business is active. Payment terms are reported as usually correct. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB- (Long Term bank facilities)
Rating Explanation	Moderate credit quality and average credit risk.
Date	16.07.2013

Rating Agency Name	CARE
Rating	A3 (Short Term bank facilities)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	16.07.2013

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.

LOCATIONS

Registered Office :	5-O-2, Basement Office, R.C. Vyas Colony, Bhilwara – 311001, Rajasthan, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	secretarial@ostwal.in
Website :	http://www.krishnaphoschem.com
Correspondence Address:	A.K.V.N. Industrial Area, Plot. No. 115 to 118A, Meghnagar-457779, Dist. Jhabua, Madhya Pradesh, India
Tel. No.:	91-7390-284989

DIRECTORS

As on: 25.09.2013

Name :

Mr. Praveen Ostwal

Designation :

Managing director

Address :

S-O1, R.C. Vyas Colony, Bilwara – 311001, Rajasthan, India

Date of Birth/Age :

12.07.1980

Date of Appointment :

31.03.2013

DIN No.:

00412207

PAN No.:

AAFPO1733K

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	U24219RJ2004PTC019350	SEASONS AGRO CHEM INDIA PRIVATE LIMITED	Managing director	01/06/2004	01/06/2004	25/02/2009	Active	NO
2	U24121RJ1997PLC029126	MADHYA BHARAT AGRO PRODUCTS LIMITED	Managing director	24/09/2004	24/09/2004	16/08/2007	Active	NO
3	U24124RJ2004PLC019288	KRISHANA PHOSCHEM LIMITED	Managing director	31/03/2013	06/06/2007	-	Active	NO

Name :

Mr. Sunil Kothari

Designation :

Whole-time director

Address :

30/174, Amllon Kibari, Bhilwara – 311001, Rajasthan, India

Date of Birth/Age :

04.05.1976

Date of Appointment :

01.04.2009

DIN No.:

02056569

PAN No.:

AMWPK7365E

Name :

Mr. Basant Patwa

Designation :

Director

Address :

Urvarkabikaran, Veer Park Road, Neemuch – 458441, Madhya Pradesh, India

Date of Birth/Age :

05.11.1960

Date of Appointment :

06.06.2007

DIN No.:

01775553

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	U24124RJ2004PLC019288	KRISHANA PHOSCHEM LIMITED	Director	06/06/2007	06/06/2007	-	Active	NO
2	U01100MP2008PTC020674	PATWA AGRO PRIVATE LIMITED	Director	07/05/2008	07/05/2008	-	Active	NO

Name :

Mr. Pradeep Agarwal

Designation :

Director

Address :

45, Azad Nagar, Bilwara – 311001, Rajasthan, India

Date of Birth/Age :

16.10.1965

Date of Appointment :

18.04.2013

DIN No.:

06458531

KEY EXECUTIVES

Name :	Ms. Meenakshi Anchlia
Designation :	Secretary
Address :	E-11, Shastri Nagar, Bilwara – 311001, Rajasthan, India
Date of Birth/Age :	22.11.1975
Date of Appointment :	07.02.2013
PAN No.:	AIKPA8813H

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 25.09.2013

Names of Shareholders	No. of Shares
Sonali Garg	225000
Shailendra Garg	450000
Mahendra K Garg	225000
Pankaj Ostwal	540000
Parveen Ostwal	480000
Seasons Agro Chem India Private Limited, India	4011000
Basant Patwa	570000
Sudha Patwa	195000
Nilu Ostwal	472500
Ekta Jain	480000
Madhya Bharat Agro Products Limited, India	1785000
Chunri Prints Private Limited, India	919500
Paneri Textiles Private Limited, India	824250
M.K. Ostwal HUF (Karta Sh. Mahendra Kumar Ostwal)	382500
Pankaj Ostwal (Karta Sh. Pankaj Ostwal)	300000
Praveen Ostwal HUF (Karta Sh. Praveen Ostwal)	300000
Archid Products Private Limited, India	1771500
Shubhlaxmi Texfab Private Limited, India	765000
Suswanl Textiles Private Limited, India	507000
SwastIk Ctothtex Private Limited, India	1440000
Vesta Tex Private Limited, India	963750
Visualize Trade Com Private Limited, India	393000
Total	18000000

Equity Share Break up (Percentage of Total Equity)

As on: 25.09.2013

Category	Percentage
Bodies corporate	74.33
Directors or relatives of Directors	20.67
Other top fifty shareholders	5.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Industrial Chemicals, Minerals and Ores.

Products :

Product	ITC Code
Mineral or Chemical Fertilizers-Phosphatic	31030000

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of Bikanar and Jaipur, Diamond Hall, Veer Park Road, Neemuch - 458441, Madhya Pradesh, India
• HDFC Bank House, Sepapaati Bapat Marg, Lower Parel (West), Mumbai, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Rupee term loans from others	108.693	89.505
SHORT TERM BORROWINGS
Other loans and advances	116.080	16.309
Total	224.773	105.814

Banking Relations :	--
Financial Institution:	M.P Financial Corporation, A.B. Road, Indore, Madhya Pradesh, India
Auditors :
Name :	Ashok Kanther and Associates Chartered Accountants
Address :	90, Indira Market, Bhilwara, Rajasthan, India
PAN No.:	AIVPK0019N
Other Related Parties:	Madhya Bharat Agro Products Limited CIN No.: U24121RJ1997PLC029126 Ostwal Phoschem (India) Limited CIN No.: U26933RJ1989PLC032188

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.10/- each	Rs.180.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	180.000	180.000	60.000
(b) Reserves & Surplus	262.712	204.345	240.923
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	15.175
Total Shareholders’ Funds (1) + (2)	442.712	384.345	316.098
(3) Non-Current Liabilities
(a) long-term borrowings	181.247	150.670	34.506
(b) Deferred tax liabilities (Net)	0.000	6.829	9.862
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	181.247	157.499	44.368
(4) Current Liabilities
(a) Short term borrowings	116.080	16.309	24.342
(b) Trade payables	68.132	21.205	6.020
(c) Other current liabilities	18.789	16.974	16.091
(d) Short-term provisions	15.417	14.690	10.098
Total Current Liabilities (4)	218.418	69.178	56.551
TOTAL	842.377	611.022	417.017
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	449.287	298.632	306.965
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	90.532	150.792	1.071
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	9.299	0.000	0.000
(d) Long-term Loan and Advances	16.683	8.114	4.418
(e) Other Non-current assets	0.000	0.000	0.168
Total Non-Current Assets	565.801	457.538	312.622
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	185.158	48.689	16.114
(c) Trade receivables	57.344	79.640	73.339
(d) Cash and cash equivalents	0.535	2.883	0.445
(e) Short-term loans and advances	33.539	22.272	14.497
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	276.576	153.484	104.395
TOTAL	842.377	611.022	417.017

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	399.703	252.725	241.030
		Other Income	16.516	16.603	1.389
		TOTAL (A)	416.219	269.328	242.419
Less	EXPENSES
		Cost of materials consumed	210.188	104.637	82.325
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(95.438)	(18.520)	(2.489)
		Employee benefit expense	16.334	19.075	20.291
		Other expenses	168.488	91.254	88.326
		TOTAL (B)	299.572	196.446	188.453
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		116.647	72.882	53.966
Less	FINANCIAL EXPENSES (D)		19.801	8.924	8.654
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		96.846	63.958	45.312
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.093	13.723	13.312
	PROFIT BEFORE TAX (E-F) (G)		74.753	50.235	32.000
Less	TAX (H)		1.739	12.166	10.174
	PROFIT AFTER TAX (G-H) (I)		73.014	38.069	21.826
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		37.632	59.563	37.737
Less	OTHER DEDUCTIONS TO RESERVES		0.000	60.000	0.000
	BALANCE CARRIED TO THE B/S		110.646	37.632	59.563
	EARNINGS IN FOREIGN CURRENCY		0.019	0.000	0.000
	Earnings Per Share (Rs.)		4.06	2.54	1.82

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	17.54	14.13	9.00
Net Profit Margin (PBT/Sales)	(%)	18.70	19.88	13.28
Return on Total Assets (PBT/Total Assets}	(%)	10.07	10.92	7.69
Return on Investment (ROI) (PBT/Networth)		0.17	0.13	0.10
Debt Equity Ratio (Total Debt /Networth)		0.67	0.43	0.19
Current Ratio (Current Asset/Current Liability)		1.27	2.22	1.85

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

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2013	As on 31.03.2012
LONG TERM BORROWINGS
Other loans and advances	72.554	61.165
Total	72.554	61.165

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10306420	19/08/2011	100,000,000.00	MADHYA PRADESH FINANCIAL CORPORATION	FINAICE HOUSE, BOMBAY AGRA ROAD, INDORE, Madhya Pradesh - 452001, INDIA	B20609509
2	10211804	22/03/2010	45,000,000.00	MADHYA PRADESH FINANCIAL CORPORATION	FINANCE HOUSE, A B ROAD, INDORE, Madhya Pradesh - 452001, INDIA	A83317495
3	90071613	20/12/2012 *	120,000,000.00	STATE BANK OF BIKANAR AND JAIPUR	DIAMOND HALL, VEER PARK ROAD, NEEMUCH, Madhya Pradesh - 458441, INDIA	B65698920
4	80009211	24/10/2005	28,000,000.00	STATE BANK OF BIKANER AND JAIPUR	SHASTRI CIRCLE, UDAIPUR, Rajasthan - 313001, INDIA	-

* Date of charge modification

FIXED ASSETS:

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment

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.62.73
UK Pound	1	Rs.100.92
Euro	1	Rs.84.06

INFORMATION DETAILS

Report Prepared by :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.