MIRA INFORM REPORT

Report Date :

30.05.2014

IDENTIFICATION DETAILS

Name :	KVN IMPEX PRIVATE LIMITED
Registered Office :	23/880 B, KVN Arcade, Meenchanda, Calicut – 673018, Kerala
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	08.01.1999
Com. Reg. No.:	09-012733
Capital Investment / Paid-up Capital :	Rs. 39.023 Millions
CIN No.: [Company Identification No.]	U51909KL1999PTC012733
TAN No.: [Tax Deduction & Collection Account No.]	CHNK01659A
PAN No.: [Permanent Account No.]	AABCK5684J
Legal Form :	Private Limited Liability Company
Line of Business :	Trader, Importer and Dealer of Petrol Chemicals and Chemical Products.
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 438000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has taken huge external borrowing, which acts as threatening to the liquidity position of the company. Further profitability of the company is low. However, trade relations are 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, 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

US investment bank Goldman Sachs has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	B+ (Long Term Rating)
Rating Explanation	Risk of prone credit quality and high risk of default.
Date	October 10, 2013

Rating Agency Name	CRISIL
Rating	A4 (Short Term Rating)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	October 10, 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.

INFORMATION PARTED BY

Name :	Mr. Anil Kumar
Designation :	Marketing Manager
Contact No.:	91-9645096900
Date :	24.05.2014

LOCATIONS

Registered Office :	23/880 B, KVN Arcade, Meenchanda, Calicut – 673018, Kerala, India
Tel. No.:	91-495-2321492
Mobile No.:	91-9645096900 (Mr. Anil Kumar)
Fax No.:	91-495-2320532
E-Mail :	kvnimpex@gmail.com
Area :	1500 Sq. ft.
Location :	Owned
Warehouse :	Located at: · Cochin, Kerala
Location :	Owned

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Ramesh

Designation :

Managing director

Address :

Archana, Meenchanda, Calicut – 673018, Kerala, India

Date of Birth/Age :

23.10.1965

Date of Appointment :

08.01.1999

PAN No.:

ACTPR2726H

Voter ID No.:

KL/04/025/205001

DIN No.:

00801691

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	Company/ LLP Status	Defaulting status
1	U51909KL1999PTC012733	KVN IMPEX PRIVATE LIMITED	Managing director	08/01/1999	08/01/1999	Active	NO
2	U25204KL2004PTC016778	KVN POLYTECH PRIVATE LIMITED	Director	15/01/2004	15/01/2004	Active	NO

Name :

Mr. Rajesh

Designation :

Whole-time director

Address :

Archana, Meenchanda, Calicut – 673018, Kerala, India

Date of Birth/Age :

15.05.1967

Date of Appointment :

08.01.1999

PAN No.:

ACTPR2724F

Voter ID No.:

KL/04/025/205005

DIN No.:

00801685

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	Company/ LLP Status	Defaulting status
1	U51909KL1999PTC012733	KVN IMPEX PRIVATE LIMITED	Whole-time director	08/01/1999	08/01/1999	Active	NO
2	U25204KL2004PTC016778	KVN POLYTECH PRIVATE LIMITED	Managing director	15/01/2004	15/01/2004	Active	NO

Name :

Sindhu Ramesh

Designation :

Director

Address :

Archana, Meenchanda, Calicut – 673018, Kerala, India

Date of Birth/Age :

20.12.1974

Date of Appointment :

08.01.1999

PAN No.:

ABLPN0448H

DIN No.:

03400830

Name :

Ms. Rashmi Nair

Designation :

Director

Address :

Archana, Meenchanda, Calicut – 673018, Kerala, India

Date of Birth/Age :

07.09.1973

Date of Appointment :

01.01.2000

PAN No.:

ACVPR7520D

DIN No.:

03400882

KEY EXECUTIVES

Name :	Mr. Anil Kumar
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares
M. K. Ramesh	82889
M. K. Rajesh	60626
Sindhu Ramesh	36743
M. K. Savithri	17765
Rashmi Rajesh	52270
M. K. Rajasree	16586
K. P. Damodaran	16044
K. P. Rajagopal	11497
Pushpa Rajagopal	11613
Radha Damodaran	13575
Rajath Rajesh	15843
Reshma Ramesh	14971
Rishi Rajesh	15917
Swetha Ramesh	15842
Balakrishnan T P	8047
Total	390228

AS ON 30.09.2013

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

BUSINESS DETAILS

Line of Business :	Trader, Importer and Dealer of Petrol Chemicals and Chemical Products.
Imports :
Products :	Raw Material
Countries :	· South Arabia Korea
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

GENERAL INFORMATION

Suppliers :

· Bharuch India Private Limited

Sabik Petro Chemicals

Customers :

Manufacturer

· Paper Product India Private Limited

No. of Employees :

40 (Approximately)

Bankers :

· Federal Bank Limited

Cherootty Road, Calicut - 673032, Kerala, India

· State Bank of Travancore

Main Branch Kozhikode, Y M C A Road, Calicut - 673001, Kerala, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	1.722	3.026
SHORT TERM BORROWINGS
Term loans from banks	519.666	266.209
Term loans from others	4.434	1.984
Total	525.822	271.219

Banking Relations :	--
Auditors :
Name :	U Parasurama Iyer and Company Chartered Accountants
Address :	6/1125, Near Gandhi Park, Cherooty Road, Calicut, Kerala, India
Income-tax PAN of auditor or auditor's firm :	ABOPV6220G
Related Party :	Reliance Petroleum Private Limited

CAPITAL STRUCTURE

AFTER 30.09.2013

Authorised Capital : Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 59.023 Millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
500,000	Equity Shares	Rs. 100/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
390,228	Equity Shares	Rs. 100/- each	Rs. 39.023 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	39.023	36.523	29.723
(b) Reserves & Surplus	70.550	54.004	41.749
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	1.650
Total Shareholders’ Funds (1) + (2)	109.573	90.527	73.122
(3) Non-Current Liabilities
(a) long-term borrowings	1.722	3.026	0.123
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	1.722	3.026	0.123
(4) Current Liabilities
(a) Short term borrowings	524.100	268.193	258.649
(b) Trade payables	487.139	472.508	213.471
(c) Other current liabilities	22.643	20.457	11.350
(d) Short-term provisions	4.012	1.933	4.355
Total Current Liabilities (4)	1037.894	763.091	487.825
TOTAL	1149.189	856.644	561.070
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	27.983	23.283	7.806
(ii) Intangible Assets	0.332	0.553	0.000
(iii) Capital work-in-progress	0.000	0.051	5.573
(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)	0.327	0.231	0.000
(d) Long-term Loan and Advances	10.763	8.694	8.684
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	39.405	32.812	22.063
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	668.645	464.947	305.917
(c) Trade receivables	179.886	146.771	93.490
(d) Cash and cash equivalents	182.020	149.054	95.994
(e) Short-term loans and advances	77.918	58.648	40.314
(f) Other current assets	1.315	4.412	3.292
Total Current Assets	1109.784	823.832	539.007
TOTAL	1149.189	856.644	561.070

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2296.182	1624.032	1043.101
		Other Income	101.499	76.592	52.123
		TOTAL (A)	2397.681	1700.624	1095.224
Less	EXPENSES
		TOTAL (B)	2278.464	1634.765	1067.254
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		119.217	65.859	(Including Financial Expense)
Less	FINANCIAL EXPENSES (D)		89.851	44.926
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		29.366	20.933	27.970
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.255	2.917	1.498
	PROFIT BEFORE TAX (E-F) (G)		25.111	18.016	26.472
Less	TAX (H)		8.565	5.761	8.999
	PROFIT AFTER TAX (G-H) (I)		16.546	12.255	17.473
	CIF VALUE OF IMPORTS		1753.813	NA	NA
	Earnings Per Share (Rs.)		42.40	33.55	58.79

Particulars	31.03.2014
Sales Turnover (Approximately)	2990.000

The above information has been parted by Mr. Anil Kumar (Marketing Manager)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.69	0.72	1.60
Net Profit Margin (PBT/Sales)	(%)	1.09	1.11	2.54
Return on Total Assets (PBT/Total Assets}	(%)	2.19	2.10	4.77
Return on Investment (ROI) (PBT/Networth)		0.23	0.20	0.36
Debt Equity Ratio (Total Debt/Networth)		4.80	3.00	3.54
Current Ratio (Current Asset/Current Liability)		1.07	1.08	1.10

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	29.723	36.523	39.023
Reserves & Surplus	41.749	54.004	70.550
Share Application money pending allotment	1.650	0.000	0.000
Net worth	73.122	90.527	109.573
long-term borrowings	0.123	3.026	1.722
Short term borrowings	258.649	268.193	524.100
Total borrowings	258.772	271.219	525.822
Debt/Equity ratio	3.539	2.996	4.799

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	1043.101	1624.032	2296.182
		55.693	41.388

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	1043.101	1624.032	2296.182
Profit	17.473	12.255	16.546
	1.68%	0.75%	0.72%

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
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	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes
34]	External Agency Rating, if available	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10113234	02/11/2012 *	777,500,000.00	STATE BANK OF TRAVANCORE	MAIN BRANCH KOZHIKODE, YMCA ROAD, CALICUT - 673001, KERALA, INDIA	B64391758
2	90023136	14/03/2005	7,500,000.00	STATE BANK OF TRVANCORE	KOZHIKODE MAIN BRANCH, KOZHIKODE - 673032, KERALA,  INDIA	-

* Date of charge modification

FIXED ASSETS:

· Buildings

Furniture and fixtures

Vehicles

Motor vehicles

Office equipment

Copyrights, patents and other operating rights

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. 58.84
UK Pound	1	Rs. 98.41
Euro	1	Rs. 80.03

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAR
Report Prepared by :	BVA

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	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

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.