MIRA INFORM REPORT

Report Date :

17.07.2014

IDENTIFICATION DETAILS

Name :	SUKHJIT STARCH AND CHEMICALS LIMITED SUKHJIT STARCH MILLS A DIVISION OF SUKHJIT STARCH AND CHEMICALS LIMITED
Registered Office :	Sarai Road, Phagwara, District Kapurthala – 144401, Punjab
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	16.03.1944
Com. Reg. No.:	16-001925
Capital Investment / Paid-up Capital :	Rs.73.798 Millions
CIN No.: [Company Identification No.]	L15321PB1944PLC001925
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 Manufacture of Starch and Starch Derivatives.
No. of Employees :	Not Divulged

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

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are fair. Business is active. Payment terms are reported as 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Sandeep Arora
Designation :	Account Department
Contact No.:	91-9848414892
Date :	15.07.2014

LOCATIONS

Registered Office :	Sarai Road, Phagwara, District Kapurthala – 144401, Punjab, India
Tel. No. :	91-1824-260314, 260216
Mobile No. :	91-9848414892 (Mr. Sandeep Arora)
Fax No. :	91-1824-261669, 262077
E-Mail :	sukhjit@sukhjitgroup.com
Website :	www.sukhjitgroup.com

DIRECTORS

As on 06.08.2013

Name :

Mr. Inder Krishan Sardana

Designation :

Managing Director

Address :

Phagwara, Punjab, India

Date of Birth/Age :

02.08.1946

Date of Appointment :

01.07.2013

DIN No. :

00398202

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	U91110MH1955GAT009658	THE ALL INDIA STARCH MANUFACTURERS' ASSOCIATION PRIVATE LIMITED	Nominee director	19/10/1955	19/10/1955	-	Active	NO
2	L15321PB1944PLC001925	SUKHJIT STARCH AND CHEMICALS LTD	Managing director	01/07/2013	29/09/1977	-	Active	NO
3	U19113PB1945PLC001956	THE VIJOY STEEL AND GENERAL MILLS CO LTD	Director	09/11/1980	09/11/1980	09/03/2011	Active	NO
4	U65921PB1995PLC015742	SUKHJIT FINANCE LTD	Director	06/02/1995	06/02/1995	20/03/2010	Active	NO
5	U18101PB1997PLC020568	SCOTT INDUSTRIES LIMITED	Director	08/10/1997	08/10/1997	-	Active	NO
6	U65110PB1999PLC022634	CAPITAL LOCAL AREA BANK LIMITED	Director	03/04/2013	01/09/2007	-	Active	NO

Name :

Mr. Kuldip Krishan Sardana

Designation :

Managing director

Address :

Phagwara, Punjab, India

Date of Birth/Age :

02.02.1948

Date of Appointment :

01.09.1990

DIN No. :

00398376

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	U19113PB1945PLC001956	THE VIJOY STEEL AND GENERAL MILLS CO LTD	Director	13/03/1980	13/03/1980	12/03/2011	Active	NO
2	L15321PB1944PLC001925	SUKHJIT STARCH AND CHEMICALS LTD	Managing director	01/09/1990	01/09/1990	-	Active	NO
3	U65921PB1995PLC015742	SUKHJIT FINANCE LTD	Director	06/02/1995	06/02/1995	-	Active	NO
4	U18101PB1997PLC020568	SCOTT INDUSTRIES LIMITED	Director	08/10/1997	08/10/1997	-	Active	NO
5	U65110PB1999PLC022634	CAPITAL LOCAL AREA BANK LIMITED	Director	05/06/1999	05/06/1999	06/07/2007	Active	NO

Name :

Mr. Shyam Manohar Jindal

Designation :

Whole-time Director

Address :

Phagwara, District Kapurthala – 144401, Punjab, India

Date of Birth/Age :

0.06.1932

Date of Appointment :

01.09.1990

DIN No. :

00398435

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	U19113PB1945PLC001956	THE VIJOY STEEL AND GENERAL MILLS CO LTD	Director	13/03/1980	13/03/1980	-	Active	NO
2	L15321PB1944PLC001925	SUKHJIT STARCH AND CHEMICALS LTD	Whole-time director	01/09/1990	01/09/1990	-	Active	NO
3	U65921PB1995PLC015742	SUKHJIT FINANCE LTD	Director	06/02/1995	06/02/1995	-	Active	NO
4	U18101PB1997PLC020568	SCOTT INDUSTRIES LIMITED	Director	08/10/1997	08/10/1997	-	Active	NO

Name :

Mr. Verinder Kumar Sardana

Designation :

Director

Address :

5-B, Meghdoot, 12, Rowland Road, Kolkata, West Bengal, India

Date of Birth/Age :

21.12.1929

Date of Appointment :

02.06.1994

DIN No. :

00528271

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	U15491WB1971PLC028144	TEA-MA CONSORTIUM INDIA LTD	Director	17/04/1990	17/04/1990	-	Active	NO
2	L15321PB1944PLC001925	SUKHJIT STARCH AND CHEMICALS LTD	Director	02/06/1994	02/06/1994	-	Active	NO

Name :

Mr. Shiv Kumar Anand

Designation :

Director

Address :

68, Ajit Nanagr, Patiala, Punjab, India

Date of Birth/Age :

01.09.1942

Date of Appointment :

26.12.2005

DIN No. :

00528532

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	L15321PB1944PLC001925	SUKHJIT STARCH AND CHEMICALS LTD	Director	26/12/2005	26/12/2005	-	Active	NO
2	U00000PB2004NPL026873	NIMBUA GREENFIELD (PUNJAB) LIMITED	Managing director	19/05/2011	19/05/2007	19/05/2012	Active	NO
3	U36940PB2011PTC034590	ANANDA TOYS PRIVATE LIMITED	Director	11/01/2011	11/01/2011	-	Active	NO

Name :

Mr. Anand Kumar Sardana

Address :

3/17, Shanti Niketan, New Delhi, India

Date of Birth/Age :

24.08.1925

Date of Appointment :

28.11.1989

DIN No. :

00957682

Name :

Mr. Vinod Pal Kapahi

Designation :

Director

Address :

V.P.O. Majitha, district – Amritsar – 143601, Punjab, India

Date of Birth/Age :

08.11.1948

Date of Appointment :

26.12.2005

DIN No. :

00957729

Name :

Mr. Satish Chandra Jindal

Designation :

Director

Address :

Ram Kumar jagdish Saran, Mestonganj, Rampur, Uttar Pradesh, India

Date of Birth/Age :

26.01.1932

Date of Appointment :

23.06.1971

DIN No. :

01173299

Name :

Mr. Naresh Sardana

Designation :

Director

Address :

143, Falcon Crest, Tata Colony, G. D. Ambekar Marg, Parel, Mumbai – 400012, Maharashtra, India

Date of Birth/Age :

16.10.1939

Date of Appointment :

28.02.2007

DIN No. :

01213955

KEY EXECUTIVES

Name :	Mr. Sandeep Arora
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2014

Category of Shareholder	Total No. of Shares	% of Total No. of Shares)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	4150322	56.24
Bodies Corporate	2087	0.03
Sub Total	4152409	56.27
(2) Foreign
Individuals (Non-Residents Individuals / Foreign Individuals)	290706	3.94
Sub Total	290706	3.94
Total shareholding of Promoter and Promoter Group (A)	4443115	60.21
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	28314	0.38
Sub Total	28314	0.38
(2) Non-Institutions
Bodies Corporate	234340	3.18
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	1769634	23.98
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	813342	11.02
Any Others (Specify)	91075	1.23
Non Resident Indians	9002	0.12
Hindu Undivided Families	64156	0.87
Clearing Members	17917	0.24
Sub Total	2908391	39.41
Total Public shareholding (B)	2936705	39.79
Total (A)+(B)	7379820	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	7379820	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the Manufacture of Starch and Starch Derivatives.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· Punjab National Bank, G T Road, Phagwara, Punjab India

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Rupee term loans from banks	248.750	211.085
SHORT TERM BORROWINGS
Working capital loans from banks	468.313	392.079
Total	717.063	603.164

Banking Relations :	--
Auditors :
Name :	Y K Sud and Company Chartered Accountants
Address :	Ambika Towers, 4^th Floor Police Line Road, Jalandhar, Punjab - 144001 - India
PAN No. :	ABNPS7871D
Subsidiaries :	¨ The Vijoy Steel and General Mills Company Limited ¨ Sukhjit Finance Limited ¨ Sukhjit Finance Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7379820	Equity Shares	Rs.10/- each	Rs.73.798 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	73.798	73.798	73.798
(b) Reserves & Surplus	1608.763	1436.143	1253.749
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1682.561	1509.941	1327.547
(3) Non-Current Liabilities
(a) long-term borrowings	745.134	555.517	302.906
(b) Deferred tax liabilities (Net)	111.178	78.178	75.878
(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)	856.312	633.695	378.784
(4) Current Liabilities
(a) Short term borrowings	718.313	542.079	601.417
(b) Trade payables	258.839	158.899	159.981
(c) Other current liabilities	172.519	118.546	27.110
(d) Short-term provisions	43.170	38.596	41.767
Total Current Liabilities (4)	1192.841	858.120	830.275
TOTAL	3731.714	3001.756	2536.606
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1799.648	1124.398	1059.494
(ii) Intangible Assets	1.093	0.987	1.038
(iii) Capital work-in-progress	145.659	512.016	92.620
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	112.516	102.506	92.516
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	13.670	24.370	25.370
(e) Other Non-current assets	26.815	23.435	19.490
Total Non-Current Assets	2099.401	1787.712	1290.528
(2) Current assets
(a) Current investments	95.208	106.293	127.400
(b) Inventories	834.090	585.628	591.851
(c) Trade receivables	478.932	344.635	335.405
(d) Cash and cash equivalents	33.073	15.653	51.783
(e) Short-term loans and advances	180.224	149.500	117.327
(f) Other current assets	10.786	12.335	22.312
Total Current Assets	1632.313	1214.044	1246.078
TOTAL	3731.714	3001.756	2536.606

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	4187.159	3534.519	3383.282
		Other Income	13.881	14.980	10.825
		TOTAL	4201.040	3549.499	3394.107
Less	EXPENSES
		Cost of Materials Consumed	2787.546	2388.131
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(30.610)	(54.792)
		Employees benefits expense	211.182	185.820
		Other expenses	719.634	570.450
		TOTAL	3687.752	3089.609	2763.517
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		513.288	459.890	630.590
Less	FINANCIAL EXPENSES		141.202	111.938	69.734
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		372.086	347.952	560.856
Less/ Add	DEPRECIATION/ AMORTISATION		88.538	71.330	66.397
	PROFIT/ (LOSS) BEFORE TAX		283.548	276.622	494.459
Less	TAX		67.758	55.632	106.692
	PROFIT/ (LOSS) AFTER TAX		215.790	220.990	387.767
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB basis	74.196	69.515	17.878
	TOTAL EARNINGS		74.196	69.515	17.878
	IMPORTS
		Components, Spare Parts and Consumables	6.211	0.879	0.924
		Capital Goods	21.248	62.943	3.619
	TOTAL IMPORTS		27.459	63.822	4.543
	Earnings / (Loss) Per Share (Rs.)		29.24	29.95	52.54

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	5.14	6.23	11.42
Net Profit Margin (PBT/Sales)	(%)	6.77	7.83	14.61
Return on Total Assets (PBT/Total Assets}	(%)	8.16	11.59	21.03
Return on Investment (ROI) (PBT/Networth)		0.17	0.18	0.37
Debt Equity Ratio (Total Debt/Networth)		0.87	0.73	0.68
Current Ratio (Current Asset/Current Liability)		1.37	1.41	1.50

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	73.798	73.798	73.798
Reserves & Surplus	1253.749	1436.143	1608.763
Net worth	1327.547	1509.941	1682.561
long-term borrowings	302.906	555.517	745.134
Short term borrowings	601.417	542.079	718.313
Total borrowings	904.323	1097.596	1463.447
Debt/Equity ratio	0.681	0.727	0.870

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	3383.282	3534.519	4187.159
		4.470	18.465

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	3383.282	3534.519	4187.159
Profit	387.767	220.990	215.790
	11.46%	6.25%	5.15%

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	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Deferred sales tax loan	63.983	63.983
Deposits from directors	28.435	17.728
Public deposits	354.360	217.945
Deposits from others	13.336	13.506
Other loans and advances	36.270	31.270
SHORT TERM BORROWINGS
Working capital loans from banks	250.000	150.000
Total	746.384	494.432

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10477518	30/12/2013	100,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	B96334131
2	10415622	23/09/2013 *	150,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	B85465995
3	10293295	07/06/2011	340,000,000.00	PUNJAB NATIONAL BANK	G.T. ROAD, PHAGWARA, Punjab - 144401, INDIA	B15385867
4	10171093	18/08/2009	3,000,000.00	DIRECTOR OF INDUSTRIES (HIMACHAL PARDESH) THROUGH G.M DISTRICT INDUSTRIES CENTRE	UNA, UNA, Himachal Pradesh - 174303, INDIA	A67923292
5	90167571	23/11/2013 *	1,140,000,000.00	PUNJAB NATIONAL BANK	G.T. ROAD, PHAGWARA, PHAGWARA, Punjab - 144401, INDIA	B91732610

* Date of charge modification

PERFORMANCE

The Sales and other income of the company have increased from Rs.3549.500 millions for the year ended 31/03/2012 to Rs.4201.000 millions for the year ended 31/03/2013 registering an increase of over 18% (year over year). The interest cost has continued to take a heavy toll on the profits of the Company due to high rates of interest prevailing throughout the year. The prices of the finished goods also remained under pressure due to addition of new capacities in the industry and having operationalised during the current year. The earnings before depreciation, interest and tax have increased from Rs.45.98 Crores to Rs.513.200 millions for the current year which after providing financial cost Rs.141.200 millions (Rs.111.900 millions), depreciation of Rs.88.500 millions (Rs.71.300 millions) and tax expense including deferred tax of Rs.67.800 millions (Rs.55.600 millions) leave a net profit of Rs.215.800 millions (Rs.221.000 millions).

FUTURE PROSPECTUS

As required under the Corporate Governance, Management Discussion and Analysis, forming part of this report annexed hereto, reflects the current state of affairs of business.

A higher capacity utilization of the expansion of Malda Unit during the running year is expected to contribute to the Sales of the Company significantly with reasonable increase in profits. The overall turnover of the company may further show a growth of about 20% during the running year.

MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS SEGMENT:

The sector of Starch and Starch derivatives, in which the Company is engaged, continues to grow at a higher rate of about 20% per annum. It.has invariably grown at a multiple of more than 2 of the GDP growth rate of country in the last decade. However, the size of the industry is still very small and per capita consumption has not even reached 1/3 rd of the global average. Per Capita consumption is

also lower than 1/4 th of the per capita consumption of Starch in the neighbouring economy of China where consumption of starch has increased four folds in the last decade. The similar replay in the Indian economy is expected to increase the growth of Starch & its derivatives manifolds in the coming decade.

There is a direct co-relation of sugar consumption and starch consumption pattern in a number of emerging economies where use of sugar has substantially declined in the past years with a corresponding increase in the consumption of Starch and Starch Sweetners. Their economy still continues with a wide gap of Per Capita consumption of sugar viz-a-viz Starch / Starch Sweetners. The industry needs to grow at a much higher pace to bridge the gap to some an extent and reach near the global average.

OUTLOOK:

The expansion of Malda Unit was fully operationalized in the second half of the year due to which the Company has clocked an increase of over 18% in its turnover in the financial year under reference. The capacity utilization of this expansion for full year is expected to further push up its turnover / sales in the running year and the company is expected to show a growth of about 20% in its overall turnover with reasonable profits. The Company has achieved a export turnover of Rs.7.5 crores during the current year and the efforts are on to expand exports to other markets / regions to achieve higher level of exports in the coming years.

FIXED ASSETS

œ Land

œ Buildings

œ Plant and equipment

œ Furniture and fixtures

œ Vehicles

œ 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 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.60.19
UK Pound	1	Rs.103.17
Euro	1	Rs.81.66

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUB
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
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	YES
--AFFILIATION	YES/NO	NO
--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.