MIRA INFORM REPORT

Report No. :	328911
Report Date :	25.06.2015

IDENTIFICATION DETAILS

Name :	KANAN DEVAN HILLS PLANTATIONS COMPANY PRIVATE LIMITED
Registered Office :	Door No. IX/ 2226 DHP House NH 49, Munnar Post, Devicolam Taluk, Idukki - 685612, Kerala
Tel. No.:	91-4868-255000
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	15.03.2005
Com. Reg. No.:	09-018014
Capital Investment / Paid-up Capital :	Rs. 139.411
CIN No.: [Company Identification No.]	U01132KL2005PTC018014
IEC No.:	1005002860
TAN No.: [Tax Deduction & Collection Account No.]	CHNK01744B
PAN No.: [Permanent Account No.]	AACCK5399M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing, Growing and Marketing of Tea.
No. of Employees :	12500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 2750000
Status :	Goods
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track record. For the financial year ended 2014, company has reported healthy operational and achieved topline growth of 10.05% and it has maintained profitability margins at 5.24%. Rating also takes into consideration company’s healthy financial risk profile backed by adequate net worth base and healthy operating efficiencies of the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. The company can be considered good for normal 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, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. George Varghese
Designation :	Finance Manager
Contact No.:	91-4868-255000
Date :	24.06.2015

LOCATIONS

Registered Office :	Door No. IX/ 2226 DHP House NH 49, Munnar Post, Devicolam Taluk, Idukki - 685612, Kerala, India
Tel. No.:	91-4868-255000/ 255999
Fax No.:	91-4868 255555
E-Mail :	kdhptea@gmail.com marketing.munnar@kdhptea.co.in srikrishnan.pm@kdhptea.co.in
Website :	http://kdhptea.com

DIRECTORS

AS ON 23.08.2014

Name :

Kasi Santhanam Srinivasan

Designation :

Additional Director

Address :

Flat No. D2/D3, 4th Floor, Amalfi Building, 15, L D Ruparel Marg, Malabar Hill, Mumbai - 400006, Maharashtra, India

Date of Birth/Age :

20.11.1958

Date of Appointment :

14.05.2015

DIN No.:

06882414

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	U01132WB2007PTC112852	Amalgamated Plantations Private Limited	Nominee director	28/05/2014	28/05/2014	Active	NO
2	U01132KL2005PTC018014	KANAN DEVAN HILLS PLANTATIONS COMPANY PRIVATE LIMITED	Additional director	14/05/2015	14/05/2015	Active	NO

Name :

Mr. Mohamed Hamid Ashraf

Designation :

Nominee Director

Address :

No 52 Dodsworth Layout, Whitefield, Bangalore - 560066, Karnataka, India

Date of Birth/Age :

02.01.1945

Date of Appointment :

23.02.2009

DIN No.:

00042833

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	L01131KA1943PLC000833	TATA COFFEE LIMITED	Managing director	01/04/2007	08/08/2000	03/01/2010	Active	NO
2	U01132KA2005PLC065039	ALLIANCE COFFEE LIMITED	Nominee director	11/07/2006	11/07/2006	03/01/2010	Amalgamated	NO
3	U01132KL2005PTC018014	KANAN DEVAN HILLS PLANTATIONS COMPANY PRIVATE LIMITED	Nominee director	23/02/2009	23/02/2009	-	Active	NO
4	U01132WB2007PTC112852	AMALGAMATED PLANTATIONS PRIVATE LIMITED	Director	24/07/2009	29/04/2009	06/10/2011	Active	NO

Name :

Mr. Venkataramanan Krishnamoorthy

Designation :

Nominee Director

Address :

2 D Polaris Aquila Heights No. 27, Hmt Factory, Main Road, Near Hmt School Peenya Plantation B, Bangalore - 560013, Karnataka, India

Date of Birth/Age :

30.07.1961

Date of Appointment :

24.02.2012

DIN No.:

01728072

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	U01132KL2005PTC018014	KANAN DEVAN HILLS PLANTATIONS COMPANY PRIVATE LIMITED	Nominee director	24/02/2012	25/06/2007	Active	NO
2	U67190MH2008PTC187767	TATA TEA HOLDINGS PRIVATE LIMITED	Director	24/10/2008	24/10/2008	Active	NO
3	U01132WB2007PTC112852	AMALGAMATED PLANTATIONS PRIVATE LIMITED	Nominee director	22/07/2011	20/05/2011	Active	NO
4	U74900MH2011PTC222589	TATA STARBUCKS PRIVATE LIMITED	Director	27/09/2014	30/09/2011	Active	NO
5	U99999MH1942PLC003573	TATA HOUSING DEVELOPMENT COMPANY LIMITED	Director	19/09/2013	26/06/2013	Active	NO
6	U45201MH2007PLC171985	TRIL CONSTRUCTIONS LIMITED.	Director	25/09/2014	29/07/2013	Active	NO
7	U01132KA2005PLC065039	ALLIANCE COFFEE LIMITED	Additional director	25/10/2014	25/10/2014	Amalgamated	NO
8	L01131KA1943PLC000833	TATA COFFEE LIMITED	Whole-time director	25/10/2014	25/10/2014	Active	NO

Name :

Mr. Shamsher Singh Dogra

Designation :

Director

Address :

Flat No C 402, Amar Ambience Housing Society, Sopan Baug Ghorpadi, Pune - 411001, Maharashtra, India

Date of Birth/Age :

16.01.1946

Date of Appointment :

24.02.2012

DIN No.:

05226538

Name :

Percy Temurasp Siganporia

Designation :

Director

Address :

Woodland Syndicate, Flat No 17, 8th Floor, 8/7 Alipore Road, Kolkata - 700027, West Bengal, INDIA

Date of Birth/Age :

25.02.1951

Date of Appointment :

30.10.2012

DIN No.:

00035330

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	L15491WB1962PLC031425	TATA GLOBAL BEVERAGES LIMITED	Managing director	01/07/2009	16/06/2000	30/06/2012	Active	NO
2	U70100WB1946GAP014545	WOODLANDS MEDICAL CENTRE LIMITED	Director	20/09/2002	20/09/2002	23/06/2008	Amalgamated	NO
3	L01131KA1943PLC000833	TATA COFFEE LIMITED	Nominee director	20/10/2004	20/10/2004	11/07/2012	Active	NO
4	U01132WB2007PTC112852	AMALGAMATED PLANTATIONS PRIVATE LIMITED	Nominee director	20/07/2012	29/01/2007	-	Active	NO
5	L15543HP1991PLC019065	MOUNT EVEREST MINERAL WATER LIMITED	Director	27/08/2008	22/08/2007	04/08/2012	Amalgamated	NO
6	U67190MH2008PTC187767	TATA TEA HOLDINGS PRIVATE LIMITED	Director	24/10/2008	24/10/2008	03/11/2009	Active	NO
7	U01132KL2005PTC018014	KANAN DEVAN HILLS PLANTATIONS COMPANY PRIVATE LIMITED	Director	30/10/2012	20/07/2012	-	Active	NO

Name :

Jaya Pandiyammal

Designation :

Director

Address :

Kadugumudi Division, Gundumalay Estate, Munnar, 685612, Kerala, India

Date of Birth/Age :

01.07.1972

Date of Appointment :

23.08.2014

DIN No.:

02489068

Name :

Mr. Manoharan Raghavan

Designation :

Director

Address :

House No-319a(20/588a), Naymakkad Estate, West Division, Munnar - 685612, Kerala, India

Date of Birth/Age :

10.08.1965

Date of Appointment :

23.08.2014

DIN No.:

06916188

Name :

Mr. Thomas Purackal Chacko

Designation :

Managing Director

Address :

660a (11/673A), Ailsa Graig Bungalow 5, Grahamsland, Munnar Panchayath, Munnar - 685612, Kerala, India

Date of Birth/Age :

09.04.1970

Date of Appointment :

02.03.2015

PAN No.:

ACNPT4007B

DIN No.:

05215974

Name :

Mr. Pallipuram Mahadevan Srikrishnan

Designation :

Whole-Time Director

Address :

Munnar Bungalow, Kdhp House,, Munnar - 685612, Kerala, India

Date of Birth/Age :

26.10.1959

Date of Appointment :

28.03.2015

PAN No.:

ANCPS8667E

DIN No.:

00419489

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	U01132KL2005PTC018014	KANAN DEVAN HILLS PLANTATIONS COMPANY PRIVATE LIMITED	Whole-time director	28/03/2015	15/03/2005	-	Active	NO
2	U15141KA2010PTC052578	NESSO GREEN TEA PRIVATE LIMITED	Director	16/08/2011	16/11/2010	30/09/2011	Active	NO

KEY EXECUTIVES

Name :	Manoj Prabhakaran Pillai
Designation :	Secretary
Address :	Grahamsland Bunglow, Madupatty Estate, Munnar, 685612, Kerala, India
Date of Birth/Age :	31.05.1976
Date of Appointment :	16.07.2014
PAN No.:	ATVPM6272A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 23.08.2014

NOTE: SHAREHOLDING DETAILS FILE ATTACHED

AS ON 23.08.2014

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	38.08
Directors or relatives of directors	2.05
Other top fifty shareholders	27.26
Others	32.61
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing, Growing and Marketing of Tea.

Products :

ITC Code No.	Product Descriptions
90230000	Black Tea

Brand Names :

RIPPLE TEA

Agencies Held :

--

Exports :

Products :

Finished Goods

Countries :

· UK

· Russia

Imports :

--

Terms :

Selling :

Cash, Cheque and Credit

Purchasing :

Cash, Cheque and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

12500 (Approximately)

Bankers :

Bank Name:	ICICI Bank Limited
Branch:	Agri Business Group, Sales Hub, First Floor, Potanickal Building , Market Road, Edappally, Kochi - 682024, Kerala, India
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Rupee term loans from others	246.956	250.408
SHORT TERM BORROWINGS
Working capital loans from banks	72.30	70.148
Total	319.256	320.556
NOTE: LONG-TERM BORROWINGS Nature of security: Term loan from Tata Global Beverages limited secured by second charge on company's immovable assets. Term loan from Tea Board of India - United States Dollar denmominated and secured by a second charge on the company's specified immovable properties. SHORT TERM BORROWINGS Nature of security: Secured by hypothecation of raw materials, finished products, stores and spares, crop, book debts and moveable assets and availed at market rate of interest and part of the facility was availed against pledge of fixed deposits with bank at interest rate of 1% over deposit interest rate.

Banking Relations :	--
Auditors :
Name :	PKF Sridhar and Santhanam Chartered Accountants
Address :	9 1 / 9 2 , Radhakrishnan Salai, Mylapore, Chennai – 600004, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AAOFS2783G
Associates :	Tata Global Beverages Limited, India (CIN No.: L15491WB1962PLC031425)
joint ventures :	Natural And Essential Oils Private Limited (CIN No.: U15143KA1979PTC003541)

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
25,000,000	Equity Shares	Rs. 10/- each	Rs. 250.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13,941,085	Equity Shares	Rs. 10/- each	Rs. 139.411 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	139.411	139.411	139.411
(b) Reserves & Surplus	824.819	693.816	595.263
(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)	964.230	833.227	734.674
(3) Non-Current Liabilities
(a) Long-term borrowings	246.956	250.408	262.036
(b) Deferred tax liabilities (Net)	17.654	21.403	8.145
(c) Other long term liabilities	23.208	22.256	23.406
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	287.818	294.067	293.587
(4) Current Liabilities
(a) Short term borrowings	72.340	70.148	5.391
(b) Trade payables	96.693	97.596	81.110
(c) Other current liabilities	396.395	267.736	304.819
(d) Short-term provisions	26.097	26.043	17.687
Total Current Liabilities (4)	591.525	461.523	409.007
TOTAL	1843.573	1588.817	1437.268
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	522.791	490.714	491.874
(ii) Intangible Assets	74.864	78.528	83.308
(iii) Capital work-in-progress	23.694	8.670	2.090
(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)	0.000	0.000	0.000
(d) Long-term Loan and Advances	94.764	68.965	47.907
(e) Other Non-current assets
Total Non-Current Assets	716.113	646.877	625.179
(2) Current assets
(a) Current investments	0.000	80.178	20.008
(b) Inventories	417.507	278.409	266.164
(c) Trade receivables	334.903	196.614	135.073
(d) Cash and cash equivalents	292.473	307.966	291.287
(e) Short-term loans and advances	82.577	78.773	99.557
(f) Other current assets	0.000	0.000
Total Current Assets	1127.460	941.940	812.089
TOTAL	1843.573	1588.817	1437.268

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		TOTAL	2868.000	2606.000	1982.300
Less	EXPENSES		2528.200	2336.600	1776.700
	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		339.800	269.400	205.600
Less	FINANCIAL EXPENSES		50.900	47.400	37.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		288.900	222.000	168.600
Less/ Add	DEPRECIATION/ AMORTISATION		49.500	46.300	45.700
Less	EXCEPTIONAL ITEMS		0.000	0.000	(69.300)
	PROFIT / (LOSS) BEFORE TAX		239.400	175.700	53.600
Less	TAX		83.900	52.700	20.400
	PROFIT / (LOSS) AFTER TAX		155.500	123.000	33.200
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		616.900	524.500	507.500
Less	APPROPRIATIONS
		Transfer to General Reserve	7.700	6.100	0.000
		Dividend	20.900	20.900	13.900
		Tax on Dividend	3.600	3.600	2.300
	BALANCE CARRIED TO THE B/S		740.200	616.900	524.500
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	319.014	193.490	115.234
	IMPORTS
		Raw Materials
		Stores & Spares	0.000	0.102	0.000
		Capital Goods	0.273	2.301	0.791
	TOTAL IMPORTS		0.273	2.403	0.791
	Earnings Per Share (Rs.)		0.11	0.09	0.02

PARTICULARS	31.03.2015
Sales Turnover (Approximately)	3000.000

The above information has been parted by Mr. George Varghese (Finance Manager).

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	4.572	12.496	35.291
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	5.42	4.72	1.67
Operating Profit Margin (PBDIT/Sales)	(%)	11.85	10.34	10.37
Return on Total Assets (PBT/Total Assets}	(%)	13.15	11.12	3.73
Return on Investment (ROI) (PBT/Networth)		0.25	0.21	0.07
Debt Equity Ratio (Total Liability/Networth)		0.34	0.40	0.41
Current Ratio (Current Asset/Current Liability)		1.91	2.04	1.99

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	139.411	139.411	139.411
Reserves & Surplus	595.263	693.816	824.819
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	734.674	833.227	964.230
Long-term borrowings	262.036	250.408	246.956
Short term borrowings	5.391	70.148	72.340
CURRENT MATURITIES OF LONG-TERM DEBTS	35.291	12.496	4.572
Total borrowings	302.718	333.052	323.868
Debt/Equity ratio	0.412	0.400	0.336

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	1982.300	2606.000	2868.000
		31.463	10.054

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Total Income	1982.300	2606.000	2868.000
Profit	33.200	123.000	155.500
	1.67%	4.72%	5.42%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10526807	08/10/2014	100,000,000.00	STATE BANK OF TRAVANCORE	MUNNAR BRANCH, POST BOX NO. 1, MUNNAR - 685612, KERALA, INDIA	C30386981
2	10198411	12/01/2010	14,830,633.00	TEA BOARD OF INDIA	NO.14, BIPLABI TRAILOKYA MAHARAJ SARANI, KOLKATA - 700001, WEST BENGAL, INDIA	A78126083
3	10020742	09/09/2006	350,000,000.00	TATA TEA LIMITED	NO 1 BISHOP LEFROY ROAD, KOLKATA - 70  0020 WEST BENGAL, INDIA	A05153440
4	10002051	08/10/2014 *	100,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA	C30372569

* Date of charge modification

GENERAL INFORMATION

Subject is a private limited company incorporated under Companies Act, 1956. The Company is mainly engaged in growing, manufacturing and marketing of tea.

OPERATING RESULTS

The year ended 31 st March 2014 experienced an unprecedented rainfall with the South-west monsoon setting in at May end and continuing vigorously till the first week of August, with heavy winds during most days during the period. The rainfall recorded during June and July, it is said, was only the second highest since 1935. This, coupled with the dry conditions that prevailed during the last quarter of the year substantially affected production, though mitigated to a large extent by favourable growing conditions that prevailed in September 2013. This in turn limited the crop loss for the year and brought the production nearer to that of last year. The produce of your Company, on an average, fetched the highest prices in the tea auctions in South India for the second consecutive year, with many of your Companys auction marks coming within the first ten ranks, based on the prices fetched.

OVERVIEW OF OPERATIONS

The turnover of the Company for the year at Rs.286.80 Crores was 9.96% higher than the previous year. The higher turnover compared to the previous year was mainly on account of improved price realization. The profit before tax for the year improved by 36% over the previous year to Rs.239.400 Million. The profit after tax at Rs.155.500 Million, after providing for taxation liabilities of Rs.8.39 Crores, was also higher by 26% compared to the previous year.

REVIEW OF ACTIVITIES

PRODUCTION

During the year, the Company produced 23.46 M.kg of tea against 23.72 M.kg produced last year. The production included teas produced from purchased green tea leaves.

EXPORTS

During the year, the exports at 3.28 M.kg was substantially higher than that of the previous year, with the increase coming from enhanced exports to United Kingdom and Russia. Exports to Iran, who were the major buyers of orthodox variety of teas at remunerative prices, which was expected to revive last year after it had remained suspended for a couple of years, had not improved during the year.

BOUGHT LEAF OPERATIONS

The Company’s bought leaf operations continued to perform satisfactorily. As bought leaf operations in the Company’s own factories in Munnar have not been witnessing any significant growth in the last couple of years due to limited availability of green leaves in the neighbourhood of the operations of the Company, manufacture of tea in third-party facilities in other tea growing areas in South-India is being vigorously pursued and, during the year, had achieved limited success in this regard. During the year, the Company produced 3.63 M.kg of tea through bought leaf operations, which was marginally higher than what was produced during the previous year.

BRANDED TEA OPERATIONS

The Company’s Ripple brand of teas saw strong growth during the year. Though the volume of branded tea operations is small, this segment of the Company’s operations will receive increasing attention of the management in the coming years as the Directors are of a strong view that the branded tea operations will have to grow and form a significant proportion of the Company’s business to capture full value for its produce.

NON-TEA OPERATIONS

The plantation tourism initiatives of your Company continues to remain suspended following the order issued by the District Administration restraining the Company from using its bungalows for tourism purposes despite that the State Government had brought about an amendment to land usage regulations permitting such initiatives. The matter is pending before the Court. Your Company was also not able to implement its other revenue enhancing initiatives as the necessary clearances required from the government for the purpose under the amended regulations were not forthcoming. The Retail Sales Outlet and the Tea Museum operated by your Company in Munnar continued to perform well.

COMMUNITY DEVELOPMENT, EMPLOYEE THEYLFARE AND ENVIRONMENT CONSERVATION

During the year, employees welfare programmes on community development, maternal and child welfare, immunization, potable water supply, environment conservation etc. were actively pursued by your Company. Health Exhibitions were conducted in all estates, and to increase the participation and thereby create higher awareness among employees and the surrounding community, estates organized novel campaigns like bike rallies to promote concepts of safety, amongst other awareness programmes on general, maternal and child health etc.

During the year, with assistance from Tea Board of India, your Company installed various medical equipments at the estate hospitals and dispensaries. This will go a long way in providing improved medical facilities to employees of the company engaged in the estate operations.

The Company also undertook an extensive training programme for its supervisors under the STAR Scheme of the Government of India for Tea Plantation Workers, promoted by the National Skill Development Council.

INDUSTRIAL RELATIONS

The Industrial Relations in your company generally remained peaceful. Your Company continued to maintain cordial relationship with Professional and Government bodies during the year.

The period from 1 st December 2013 to March 2015 was declared a Year of Safety by your Company and employee awareness was created on the same. The Directors are confident that the prevailing strong cordial industrial relations with the employees will be continuously maintained.

LAND MATTERS AND BTHEMINESS ENVIRONMENT

While the Company, which has always stood for preservation of the ecology and biodiversity of the Western Ghats, has generally welcomed the report of the Western Ghats Ecology Expert Panel (WEEGP) headed by Prof. Madhav Gadgil some matters dealt with in the report like migration to organic cultivation within 5 years, classification of area of the Company’s plantations into Ecologically Sensitive Zone etc will have severe adverse impact on the economical viability of the operations of the Company. Use of organic inputs in tea cultivation will not supply the required nutrients to the plants nor be effective in controlling pests and diseases to which the plants are prone resulting in lowering of yields, deterioration in the quality of the produce and consequentially higher cost of production rendering the entire operations uneconomical. The Central Government had thereafter set up the High Level Working Group on Western Ghats headed by Dr. K Kasturirangan. While the Group has suggested some relaxation to WEEGPs report including that 10 years be allowed for migration to organic cultivation, this will provide only a temporary relief to the operations of the Company. While the State Government is seized with the concerns of all stakeholders if the reports were to be implemented and have taken necessary steps to protect their interests, the views of the newly formed Central Government in the matter are eagerly awaited.

Though the District Administration has not supported the new initiatives of the Company in revenue generation, the Company has taken up these matters in the appropriate forums and is reasonably confident that considering that the company is well within its rights as well as legally on a sound ground these permissions will be granted without further delay.

The company has also been following up with the State Government for easier and single window system of clearance of projects which would aid in faster implementation. Though the business climate in the state is not as conducive for a robust growth, the Company is confident that if it perseveres this attitude could change.

OUTLOOK FOR THE CURRENT SEASON

During the current year, the dry spell of the previous year continued upto the first week of May, thereby affecting production during the period. However, good rains they are received since, and it is expected that the production lost during the initial period of the year will be made up in the next two months. On the price front, the year has started with prices substantially lower than what it was at the start of the previous year. It is hoped that the prices for the year will see an improvement over the average price for the previous year.

AWARDS

The Company bagged 6 awards at the prestigious Golden Leaf India Awards, Southern India Competition held in Dubai on 10 th April 2014.

The Company has also been awarded Rainforest Alliance Certification for its entire area and manufacture facilities. The RA certification is a recognition to the Company for its engagement in plantation operations, with minimum impact on environment and wildlife, promoting safe and good employee, community relations and implementing management systems that encourage sustainable operations. With this the company is probably the largest single tea company to have this certification. This is truly an unique achievement.

THE INDIAN TEA INDTHEMTRY

Total production of tea in the country during 2013 was 1200 M.kg, which was about 73.70 M.kg higher than the previous year. Both South India at 242.60 M.kg and North India at 957.40 M.kg reported higher production of 3.20 M.kg and 70.50 M.kg respectively, compared to the previous year. On the export front, the country exported 211.80 M.kg, compared to 208.20 M.kg during the previous year.

There was some improvement in the auction prices both in rupee and dollar terms, by 13% and 6% respectively. The average price realization in South India was Rs. 98.75 per kg, compared to Rs.87.55 per kg. During the previous year.

The Company continued to avail benefits under the Orthodox Tea Production Subsidy and Special Purpose Tea Fund Schemes of the Tea Board of India.

FIXED ASSETS:

· Buildings

· Plant and Equipment

· Factory Equipment’s

· Other plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Other Equipment’s

· Livestock

· Bridges Roads Ports Culverts

· Plantations

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.63.66
UK Pound	1	Rs.100.50
Euro	1	Rs.71.31

INFORMATION DETAILS

Information Gathered by :	SUP
Analysis Done by :	KAR
Report Prepared by :	ARC

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		54

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.