MIRA INFORM REPORT

Report Date :

25.09.2013

IDENTIFICATION DETAILS

Name :	K P SOLVEX PRIVATE LIMITED (w.e.f. 30.03.2007)
Formerly Known As :	K P SOLVEX LIMITED
Registered Office :	Village Harshmau, Tehsil – Niwari, Tikamgarh – 472 442, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	25.01.1983
Com. Reg. No.:	10-002131
Capital Investment / Paid-up Capital :	Rs.13.440 millions
CIN No.: [Company Identification No.]	U15143MP1983PTC002131
PAN No.: [Permanent Account No.]	AAACK4840R
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is primarily engaged in the business of manufacturing of de-oiled cakes and edible oils through solvent extraction process.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 615000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The profit margin of the company is low. However, trade relations are reported as fair. Business is active. Payment terms are 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 – 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.

LOCATIONS

Registered Office/ Factory :	Village Harshmau, Tehsil – Niwari, Tikamgarh – 472 442, Madhya Pradesh, India
Tel. No.:	91-7680-232312/ 232313/ 232314/ 232334
Fax No.:	91-7680-232207
E-Mail :	kpsolvex@hotmail.com
Jhansi Office :	“Mayur Apartment”, Near Raskhan, Gwalior Road, Jhansi – 284 003, Uttar Pradesh, India
Tel. No.:	91-510-2331225/ 2332016

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Indra Kumar Kochar

Designation :

Managing Director

Address :

386/4-D, Civil Lines, Gwalior Road, Jhansi – 284 003, Uttar Pradesh, India

Date of Birth/Age :

14.11.1941

Date of Appointment :

25.01.1983

DIN No.:

00029254

PAN No.:

AAAHI3674L

Name :

Mr. Bal Kishan Trivedi

Designation :

Director

Address :

7, Sushil Enclave, Gwalior Road, Jhansi – 284 003, Uttar Pradesh, India

Date of Birth/Age :

26.11.1940

Date of Appointment :

25.01.2006

DIN No.:

00029294

PAN No.:

ACNPT8529Q

Name :

Mr. Khushal Chand Jain

Designation :

Director

Address :

40, Sushil Enclave, Gwalior Road, Jhansi – 284 003, Uttar Pradesh, India

Date of Birth/Age :

11.06.1950

Date of Appointment :

25.01.1983

DIN No.:

00032039

PAN No.:

AFXPK6752K

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	U15143MP1983PTC002131	K P SOLVEX PRIVATE LIMITED	Director	25/01/1983	25/01/1983	-	Active	NO
2	U70102UP2010PTC041069	VK INFRABUILD PRIVATE LIMITED	Director	18/06/2010	18/06/2010	-	Active	NO
3	AAB-1072	ORCHHA FARMS LLP	Designated Partner	30/03/2013	30/03/2013	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Khushal Chandra Jain	16016
Indra Kumar Kochar	24024
Bal Kishan Trivedi	17808
Raj Kumari Kochar	20720
Namita Kochar	9240
Harsh Kumar Kochar	6692
Saurabh Kumar Kochar	1820
Manohar Lal Jain	29120
Jaishri Jain	560
Kochar Kumar Indra (HUF)	3920
Jain Das Jin and I K Kochar (HUF)	4480
Total	134400

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Subject is primarily engaged in the business of manufacturing of de-oiled cakes and edible oils through solvent extraction process.

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity	Installed Capacity	Utilized Capacity
Solvent Extraction Plant	MT	100000	100000	67434
Refinery Unit	MT	15000	15000	1738

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Punjab National Bank, Jhansi City, Jhansi – 284 002, Uttar Pradesh, India

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG-TERM BORROWINGS
Term loans from banks [Term loans are from Punjab National Bank, City Branch, Jhansi of Rs.2.978 millions (Previous year: Rs.8.700 millions) of which Rs.2.799 millions has been classified as long term borrowing and Rs.0.179 million as current maturities of long term borrowing and are secured by first charge on all present and future tangible/intangible moveable and immovable assets of the Company and negative lien on assets acquired therefrom.]	2.799	2.034
SHORT-TERM BORROWINGS
Working capital loans from banks [Working capital loans are obtained from Punjab National bank and are secured by: a. First charge on the fixed/block assets and mortgage of immovable property and hypothecation of all moveable properties both present and future. b. Working capital loans from bank aggregating Rs.229.615 millions (Previous year : Rs.229.615 millions) are secured by hypothecation of present and future stock of raw materials, stock-in-process, finished goods, stores and spares (not relating to plant and machinery), book debts, outstanding monies, receivables, claims, bills, material in transit, etc.,. All securities mentioned above are also extended to working capital facilities.]	229.615	178.507
Total	232.414	180.541

Banking Relations :	--
Auditors :
Name :	J.P. Associates Chartered Accountants
Address :	Triveni Kunj, Prem Ganj, SIPRI, Jhansi – 284 003, Uttar Pradesh, India
PAN No.:	AAAFJ8660R
Associates :	Kapex Agro Oils Private Limited, India (CIN No.: U15143MP1997PTC012039) J K Minerals

CAPITAL STRUCTURE

AS ON 29.09.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
134400	Equity Shares	Rs.100/- each	Rs.13.440 millions

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	13.440	13.440
(b) Reserves & Surplus	140.248	138.054
(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)	153.688	151.494
(3) Non-Current Liabilities
(a) Long-term borrowings	2.799	2.034
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) Long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	2.799	2.034
(4) Current Liabilities
(a) Short term borrowings	229.615	178.507
(b) Trade payables	0.579	0.384
(c) Other current liabilities	1.927	11.845
(d) Short-term provisions	6.330	5.316
Total Current Liabilities (4)	238.451	196.052
TOTAL	394.938	349.580
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	72.504	71.323
(ii) Intangible Assets	0.039	0.012
(iii) Capital work-in-progress	0.000	2.484
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	4.332	4.111
(c) Deferred tax assets (net)	12.104	12.186
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	88.979	90.116
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	212.266	215.057
(c) Trade receivables	54.417	17.476
(d) Cash and cash equivalents	25.067	12.086
(e) Short-term loans and advances	14.209	14.845
(f) Other current assets	0.000	0.000
Total Current Assets	305.959	259.464
TOTAL	394.938	349.580

Particulars		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		13.440
2] Share Application Money		0.000
3] Reserves & Surplus		139.380
4] (Accumulated Losses)		0.000
NETWORTH		152.820
LOAN FUNDS
1] Secured Loans		198.499
2] Unsecured Loans		0.000
TOTAL BORROWING		198.499
DEFERRED TAX LIABILITIES		0.000
TOTAL		351.319
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		75.548
Capital work-in-progress		0.000
INVESTMENT		5.145
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	206.705
	Sundry Debtors	27.598
	Cash & Bank Balances	10.262
	Other Current Assets	11.730
	Loans & Advances	22.210
Total Current Assets		278.505
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.585
	Other Current Liabilities	3.024
	Provisions	4.270
Total Current Liabilities		7.879
Net Current Assets		270.626
MISCELLANEOUS EXPENSES		0.000
TOTAL		351.319

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1767.057	1484.380	1094.849
		Other Income	NA	NA	5.307
		TOTAL	NA	NA	1100.156
Less	EXPENSES
		Office Expenses	NA	NA	1125.469
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	1125.469
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		28.399	24.547	(25.313)
Less	INTEREST		19.327	19.620	9.153
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		9.072	4.927	(34.466)
Less/ Add	DEPRECIATION/ AMORTISATION		2.732	2.694	2.773
	PROFIT/ (LOSS )BEFORE PRIOR PERIOD ITEMS AND TAX		6.340	2.233	(37.239)
Add	PRIOR PERIOD INCOME/ (EXPENSES)		0.151	0.059	0.992
	PROFIT/ (LOSS) BEFORE TAX		6.491	2.292	(36.247)
Less	TAX		1.261	0.222	(11.697)
	PROFIT/ (LOSS) AFTER TAX		5.230	2.070	(24.550)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.500	2.500	2.500
Less	APPROPRIATIONS
		Transfer to General Reserve	5.230	2.070	(24.550)
	BALANCE CARRIED TO THE B/S		2.500	2.500	2.500
	EARNINGS IN FOREIGN CURRENCY		628.584	436.634	122.439
	Earnings/(Loss) Per Share (Rs.)		38.91	15.40	(182.66)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	(2.23)
Net Profit Margin (PBT/Sales)	(%)	0.37	0.15	(3.31)
Return on Total Assets (PBT/Total Assets}	(%)	1.71	0.69	(10.24)
Return on Investment (ROI) (PBT/Networth)		0.04	0.02	(0.24)
Debt Equity Ratio (Total Debt/Networth)		1.51	1.19	1.30
Current Ratio (Current Asset/Current Liability)		1.28	1.32	35.35

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	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	No

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10417592	22/03/2013	1,000,000.00	PUNJAB NATIONAL BANK	JHANSI CITY, JHANSI, UTTAR PRADESH - 284002, INDIA	B72548944
2	10388935	05/11/2012	1,500,000.00	PUNJAB NATIONAL BANK	JHANSI CITY, JHANSI, UTTAR PRADESH - 284002, INDIA	B62924998
3	10385242	26/09/2012	1,026,800.00	PUNJAB NATIONAL BANK	JHANSI CITY, JHANSI, UTTAR PRADESH - 284002, INDIA	B61648705
4	10044877	10/11/2012 *	420,000,000.00	PUNJAB NATIONAL BANK	JHANSI CITY, JHANSI, UTTAR PRADESH - 284002, INDIA	B63408488

* Date of charge modification

CORPORATE INFORMATION

The Company is a private limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956 (the "Act"). The Company is primarily engaged in the business of manufacturing of de-oiled cakes and edible oils through solvent extraction process.

YEAR IN RETROSPECT

Early rains in the month of June during 2011-12 season led to on time sowing of soya and therefore, harvesting was concluded by second week of October. Crop outcome was satisfactory.

Processing gained thrust for soya for its earlier availability at competitive rates. An increase, though insignificant as a whole, in capacity utilization in the Solvent Extraction Plant from 67,434 MT in 2010-11, comprised of 59,850 MT soya seed and 7,584 MT mustard cake, to 67,682 MT, comprised of 67,012 MT soya seed and 670 MT mustard cake, during the year. Processing in refinery unit of the Company registered a marginal gain from 2,465 MT in 2010-11 to 3,003 MT during the year.

FINANCE

The Company paid off Rs.5.922 millions during the year in term loans from Punjab National Bank.

FUTURE PROSPECTS

Forecast says there will be adequate monsoonal rains in central part of India. Hope so, the crop pattern and outcome, would help the Company to procure raw materials from nearby areas at competitive value.

Trading activities would further be widened with add-on of other agricultural produce.

FIXED ASSETS:

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipments

· Livestock

Intangible Assets

· Computer Software

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.62.65
UK Pound	1	Rs.100.46
Euro	1	Rs.84.60

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.