MIRA INFORM REPORT

Report Date :

01.10.2013

IDENTIFICATION DETAILS

Name :	KK INDIA PETROLEUM SPECIALITIES PRIVATE LIMITED
Registered Office :	706, Palm Spring Centre, Link Road, Malad (West), Mumbai – 400 064, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.03.1998
Com. Reg. No.:	11-113942
Capital Investment / Paid-up Capital :	Rs.0.500 Million
CIN No.: [Company Identification No.]	U23200MH1998PTC113942
TAN No.: [Tax Deduction & Collection Account No.]	MUMK07309B
PAN No.: [Permanent Account No.]	AAACK8544Q
Legal Form :	Private Limited Liability Company
Line of Business :	Indenting Agents and Trading in Petroleum and Specialties Chemicals and Trading and Investments into Securities.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 69000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Even though sales turnover of the company has increased, profit of the company decreased. However, trade relations are reported to be fair. Business is active. Payment terms are slow but 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 – 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.

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 PARTED BY

Name :	Mr. Kalpesh Manharlal Modi
Designation :	Director
Contact No.:	91-9820140450
Date :	26.09.2013

LOCATIONS

Registered Office :	706, Palm Spring Centre, Link Road, Malad (West), Mumbai – 400 064, Maharashtra, India
Tel. No. :	91-22-40949000
Mobile No.:	91-9820140450 [Mr. Kalpesh Manharlal Modi]
Fax No. :	91-22-40949099
E-Mail :	dkmroc@gmail.com kalpesh@kkindia.net mayur@kkindia.net kkindia@kkindia.net info@kkindia.net
Website :	http://www.kkindia.net
Corporate Office :	Unit # A/112-118, Synthofine Estate, Off. Aarey Road, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Tel. No.:	91-22-28764569/28764570
Fax No.:	91-22-28762563
E-Mail :	kkindia@kkindia.net

DIRECTORS

AS ON 18.09.2012

Name :	Mr. Kalpesh Manharlal Modi
Designation :	Director
Address :	B-305, Raj Residency-1, Mahavir Nagar, Dahanokarwadi, Kandivali (West), Mumbai – 400 067, Maharashtra India
Date of Birth/Age :	09.08.1961
Date of Appointment :	18.03.1998
DIN No.:	00443445
Name :	Mrs. Ketna Kalpesh Modi
Designation :	Director
Address :	B-305, Raj Residency-1, Mahavir Nagar, Dahanokarwadi, Kandivali (West), Mumbai – 400 067, Maharashtra India
Date of Birth/Age :	04.12.1963
Date of Appointment :	18.03.1998
DIN No.:	00443557

MAJOR SHAREHOLDERS

AS ON 18.09.2012

Names of Shareholders	No. of Shares
Kalpesh Manharlal Modi	20100
Ketna Kalpesh Modi	6100
DhanLaxmi Manharlal Modi	19660
Kalpesh Manharlal Modi HUF	1000
Manal Kalpesh Modi	1000
Priyam Kalpesh Modi	1000
Viral Kalpesh Modi	1000
Mayur Kalpesh Modi	10
Mayur Modi HUF	10
Manan Modi	10
Naman Modi	10
Manharlal V. Modi HUF	100
TOTAL	50000

Equity Share Break up (Percentage of Total Equity)

AS ON 18.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Indenting Agents and Trading in Petroleum and Specialties Chemicals and Trading and Investments into Securities.
Products :	· Speciality Petroleum Products · Lubricant Additives · Speciality Silicones · Intermediates · Surfactants · Other Industrial Chemicals

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Citi Bank N.A., Trent House, 2^nd Floor, G Block, Plot No. C-60, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India

· Vijaya Bank, Goregaon, Mumbai – 400 063, Maharashtra, India

· HDFC Bank

Facilities :

SECURED LOAN	31.03.2012 Rs. in Millions	31.03.2011 Rs. in Millions
Loan Repayable On Demand
From others (related parties)	19.004	9.850
From banks [secured against inventories]	10.319	3.860
TOTAL	29.323	13.710

Banking Relations :	--
Auditors :
Name :	Mukesh P. Shah and Company Chartered Accountants
Address :	12, Damodar Niwas, 2^nd Floor, 32/34, C. P. Tank Road, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-23886293
Fax No.:	91-22-23822633
E-Mail :	mpshah_co@yahoo.co.in
PAN No:	AAGFM5242C

CAPITAL STRUCTURE

AS ON 18.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs. 10/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs. 10/- each	Rs.0.500 Million

FINANCIAL DATA

[All figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.500	0.500
(b) Reserves & Surplus	16.798	15.381
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	17.298	15.881
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.067	0.471
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	1.587	0.189
Total Non-current Liabilities (3)	1.654	0.660
(4) Current Liabilities
(a) Short term borrowings	29.323	13.710
(b) Trade payables	17.265	17.098
(c) Other current liabilities	0.969	0.417
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	47.557	31.225
TOTAL	66.509	47.766
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4.320	4.286
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.496	0.289
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	4.816	4.575
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	45.770	26.139
(c) Trade receivables	9.255	12.651
(d) Cash and cash equivalents	5.774	3.598
(e) Short-term loans and advances	0.894	0.803
(f) Other current assets	0.000	0.000
Total Current Assets	61.693	43.191
TOTAL	66.509	47.766

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.500
2] Share Application Money		0.000
3] Reserves & Surplus		12.233
4] (Accumulated Losses)		0.000
NETWORTH		12.733
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		4.600
TOTAL BORROWING		4.600
DEFERRED TAX LIABILITIES		0.504
TOTAL		17.837
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.411
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.372
	Sundry Debtors	9.538
	Cash & Bank Balances	4.234
	Other Current Assets	0.000
	Loans & Advances	4.473
Total Current Assets		41.617
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.539
	Other Current Liabilities	0.000
	Provisions	3.652
Total Current Liabilities		28.191
Net Current Assets		13.426
MISCELLANEOUS EXPENSES		0.000
TOTAL		17.837

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
SALES
	Income
	Other Income
	TOTAL	155.556	145.583	91.041
EXPENSES
	TOTAL	153.158	141.181	89.171
PROFIT / (LOSS) BEFORE TAX		2.398	4.402	1.870
TAX		0.981	1.254	0.805
PROFIT / (LOSS) AFTER TAX		1.417	3.148	1.065
EARNINGS IN FOREIGN CURRENCY
	Export Earnings	1.264	1.099	2.930
	Indenting Commission	4.681	8.104	9.511
TOTAL EARNINGS		5.945	9.203	12.441
Earnings / (Loss) Per Share (Rs.)		28.34	62.96	21.41

Particulars	31.03.2013
Sales Turnover (Approximately)	160.000

Expected Sales (2013-2014): Rs.170.000 Millions

The above information has been parted by Mr. Kalpesh Manharlal Modi (Director)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.91	2.16	1.17
Return on Total Assets (PBT/Total Assets}	(%)	3.61	9.22	4.06
Return on Investment (ROI) (PBT/Networth)		0.14	0.28	0.15
Debt Equity Ratio (Total Liability/Networth)		2.84	1.97	2.58
Current Ratio (Current Asset/Current Liability)		3.14	2.45	1.48

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	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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

NOTE: Registered office address of the company has been shifted from A/118 Synthofine Estate, Off Aarey Road Goregaon (East), Mumbai – 400 063, Maharashtra, India to the present address w.e.f. 28.08.2008

INDEX OF CHARGE:

Sr.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10247684	16/01/2012 *	11,000,000.00	CITI BANK N. A.	TRENT HOUSE, 2ND FLOOR, G BLOCK, PLOT NO.C60, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI – 400 051, MAHARASHTRA, INDIA	B34495960

* Date of charge modification

OPERATIONS:-

During the year, several multinational companies has appointed subject as Indenting agents as well as distributors for their specialties products based on petroleum, etc in India.

During the year, Turnover of subject has been increased to Rs.155.556 Millions as compared to Rs.145.583 Millions in previous year. Profit of subject has been decreased to Rs.141.700 Millions as compared to Rs. 314.800 Millions in previous year. Profit of subject affect mainly due to Exchange rate fluctuations. During the year Exchange rate losses Rs.365.900 millions as compared to Rs.66.100 Millions in the previous year. Further subject had taken various steps to improve activities of subject. In view of various strategic steps, subject has continued with the trading activities. The management of subject is confident of a gradual and consistent increase in turnover for subject in the year ahead.

FIXED ASSETS:

· Computer

· Furniture

· Plant and Machinery

· Car

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.62.78
UK Pound	1	Rs.101.42
Euro	1	Rs.84.67

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.