MIRA INFORM REPORT

Report Date :

03.11.2006

IDENTIFICATION DETAILS

Name :	INDO AMINES LIMITED
Registered Office :	W-38/39, MIDC, Phase – II, Dombivili (East), Thane – 421 203, Maharashtra, India.
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	17.12.1992
Com. Reg. No.:	11-70022
CIN No.: [Company Identification No.]	L99999MH1992PLC070022
TAN No.: [Tax Deduction & Collection Account No.]	MUMI02235C
PAN No.: [Permanent Account No.]	AAACI1374A
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the stock exchanges.
Line of Business :	Manufacturer of Amines, Pharmaceuticals and Speciality Chemical.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Payments are reported as slow but correct. The company can be considered for small to mediocre business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	W-38/39, MIDC, Phase – II, Dombivili (East), Thane – 421 203, Maharashtra, India.
Tel. No.:	91-251-2871354/ 2870939
Fax No.:	91-251-2871635
Email:	ravbp@sancharnet.in ravbp@hotmail.com
Website:	http://www.technochemicals.com
Factory:	Ø Survey No. 1723, Tundav, Taluka Savli, Baroda, Gujarat, India Ø W-38/39, MIDC, Phase – II, Dombivili (East), Thane – 421 203, Maharashtra, India.

DIRECTORS

Name :	Mr. Vijay B. Palkar
Designation :	Chairman & Managing Director
Name :	Mr. Kirit H. Shah
Designation :	Whole Time Director ( Promoter )
Name :	Mrs. Bharati V. Palkar
Designation :	Non - Executive Promoter Director
Name :	Mr. Rahul V. Palkar
Designation :	Executive Promoter Director
Name :	Mr. N. G. Mane
Designation :	Executive Independent Director
Date of Appointment :	01.04.2005
Name :	Mr. Suresh Iyer
Designation :	Executive Independent Director
Date of Appointment :	01.04.2005
Name :	Mr. Milind P. Paul
Designation :	Executive Independent Director
Date of Appointment :	01.04.2005
Name :	Mr. R.Raghavendra Ravi
Designation :	Independent Non Executive Director
Date of Appointment :	01.08.2004
Name :	Mr. Dr. J. H. Shah
Designation :	Independent Non Executive Director

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Promoter
Indian Promoters	1337388	21.40
Non Promoter’s Holding
Financial Institution	100	0.00
Others
Private Corporate Body	500227	8.00
Indian Public	3648004	58.37
Share in Transit	5081	0.08
Foreign Nationals	759200	12.15
Total:	6250000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Amines, Pharmaceuticals and Speciality Chemical.

Products :

Products	ITC Code No.:
Fatty Amines & Derivaties	292119
Organic Surface Active Agents	340290
Artificial Waxes	340490

PRODUCTION STATUS

Particulars	Unit	Installed Capacity
Fatty Amines	MT	3000
Short Chain Amines	MT	250
Quaternary Ammonium Compounds	MT	250
Speciality Chemicals	MT	1500

GENERAL INFORMATION

No. of Employees :

200

Bankers :

Ø State Bank of India, Dadar Commercial Branch, Mumbai.

Ø State Bank of India, Baroda.

Ø State Bank of India, Alkapuri, Baroda

Ø Union Bank of India, Sayajigunj Branch, Baroda.

Ø State Bank of India, Ahmedabad

Ø State Bank of India, Baroda

Ø State Bank of India, Chennai

Ø State Bank of India, New Delhi

Ø State Bank of India - Pimpri

Ø State Bank of India - Hyderabad

Ø State Bank of India - Ankleshwar

Facilities :

Secured Loan	Amount (In Millions)
SBI Loan - Term Loan (Secured by equitable mortgage of factory premises at Baroda & personal guarantee of directors)	11.654
SBI - Cash Credit (Secured by hypothecation of stock & debtors)	3.890
SBI - Export Packing Credit (Secured by Hypothecation of stock & Debts )	7.545
SBI - OD (Secured by pledge of TDR )	4.862
SBI A/C. NO. 30003216323	0.016
SBI A/c. Short Term OD - SLOC -	8.087
SBI - Buyers Credit - Dadar Comm Branch	9.134
Maruti Countrywide (Hypothecation of Car )	0.209
Maruti Countrywide (Hypothecation of Car )	0.205
Unsecured Loan
Unsecured Loans – Alta Leasing & Finance	3.565
Slaes Tax Deferred Liability	1.697
Total:	50.864

Banking Relations :	Unknown
Auditors :	Kulkarni and Khanolkar Chartered Accountant
Address:	Mumbai
Associates:	Ø Flame Pharmaceuticals Private Limited Ø Versatile Chemicals Private Limited Ø Oleo Formulations Private Limited Ø Techno Holdings (I) Private Limited Ø Techno Securities (I) Private Limited Ø Palkar Finance & Consultancy Services Private Limited Ø Sheiraj Chemicals & Pharmaceuticals Private Limited Ø Marvel Indenting Private Limited Ø Mecham Engineers Ø Universal Distributor Ø Pure Organics Industries Limited Ø Unigroup Resources Private Limited Ø Market Creators Limited Ø J Harkishndas & Co.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs. 10/- each	Rs. 70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6250000	Equity Shares	Rs. 10/- each	Rs. 62.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		62.500	62.500	62.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7.839	0.780	(5.700)
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		70.339	63.280	56.800
LOAN FUNDS
1] Secured Loans		45.606	6.167	7.400
2] Unsecured Loans		5.263	5.550	4.700
TOTAL BORROWING		50.869	11.717	12.100
DEFERRED TAX LIABILITIES		2.240	0.880	0.000
TOTAL		123.448	75.877	68.900
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		61.279	40.194	36.300
Capital work-in-progress		0.820	4.229	5.200
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	60.169	23.243	15.600
	Sundry Debtors	53.870	50.071	29.600
	Cash & Bank Balances	11.880	9.766	5.300
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.987	2.999	8.500
Total Current Assets		134.906	86.079	59.000
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	73.557	55.064	32.500
	Provisions	0.000	0.000	0.000
Total Current Liabilities		73.557	55.064	32.500
Net Current Assets		61.349	31.015	26.500
MISCELLANEOUS EXPENSES		0.000	0.439	0.900
TOTAL		123.448	75.877	68.900

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	350.260	228.357	126.100
Profit/(Loss) Before Tax	12.145	11.053	2.900
Provision for Taxation	4.861	4.561	(3.100)
Profit/(Loss) After Tax	7.284	6.492	6.000
Export Value	120.690	52.888	NA
Import Value	59.713	23.692	NA
Total Expenditure	338.115	217.304	119.600

SUMMARISED RESULTS

PARTICULARS	31.03.2006 (Full Year)
Sales Turnover	454.200
Other Income	0.100
Total Income	454.300
Total Expenditure	419.600
Operating Profit	34.700
Interest	6.100
Gross Profit	28.600
Depreciation	13.200
Tax	5.700
Reported PAT	9.700
Dividend (%)	0.000

QUARTERLY RESULTS

PARTICULARS	30.06.2006 (1^st Quarter)
Sales Turnover	126.900
Other Income	0.000
Total Income	126.900
Total Expenditure	118.100
Operating Profit	8.800
Interest	2.000
Gross Profit	6.800
Depreciation	4.200
Tax	1.000
Reported PAT	1.600

200606 Quarter 1

Notes Tax Includes Provision for Current Tax Liability Rs 0.881 million Fringe Benefit Tax Rs 0.100 million EPS is Basic and Diluted 1. The above results have been taken on record by the Board of Directors of the Company at its meeting held on July 31, 2006. 2. Previous years figures have been regrouped wherever necessary. 3. The unaudited financial results for the 1st Quarter are subject to Limited Review by Auditor. 4. The unaudited financial results for the 4th Quarter and for the financial year ended on March 31, 2006 are subject to Limited Review by the auditor. 5. In the extra Ordinary General Meeting of the company held on April 22, 2006, the shareholders have given the approval for amalgamation of Flame Pharmaceuticals Pvt Ltd and Sheiraj chemicals & Pharmaceuticals Pvt Ltd with Indo Amines Ltd, subject to the approval of concern authorities. 6. The Management has not cumulated the figures of Flame Pharmaceuticals Pvt Ltd and Sheiraj Chemicals & Pharmaceuticals Pvt Ltd with Indo Amines Ltd Financial Results, since the final approval is still not received

KEY RATIOS

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Debt-Equity Ratio	0.47	0.20	0.22
Long Term Debt-Equity Ratio	0.24	0.09	0.08
Current Ratio	1.36	1.42	1.66
TURNOVER RATIOS
Fixed Assets	3.60	3.07	2.06
Inventory	7.98	11.21	10.00
Debtors	6.40	5.46	4.57
Interest Cover Ratio	3.65	5.40	3.07
Operating Profit Margin(%)	8.20	9.84	6.58
Profit Before Interest And Tax Margin(%)	5.05	6.21	3.58
Cash Profit Margin(%)	5.35	6.62	8.00

STOCK PRICES

Face Value	Rs. 10/-
High	Rs. 12.48/-
Low	Rs. 11.80/-

LOCAL AGENCY FURTHER INFORMATION

History:

Indo Amines Limited (IAL) was incorporated as a Public Limited Company in the State of Maharashtra. IAL is promoted by joining of promoters to Techno Group and Universal Group. The promoters of Techno Group are experienced in the field of manufacturing Oleo chemicals since 1982 and promoters of Universal Group are in the business of marketing chemicals since 1971.

 IAL manufacture Fatty Amines (installed capacity 330 mt), Short Chain Amines (installed capacity 60 mt). During the current year Quatemary Ammonium Compounds (installed capacity 150 mt) is installed at Savli, Dist. Baroda.

OPERATION:

The Financial Year 2004-05 has been a historical Year for the company, the sates has been around Rs.330.000 Millions a increase of around 53 % in sales & also the profit has been Rs. 12.100 Millions a growth of 9.00% as compare to last year. The turnaround in Company's performance is basically due to cost cutting measures & Marketing efforts done by the Management. The current Financial Year (2005-06) the company will be able to Increase its sales to a great extent because of launch of New product & exploring new marketing avenues; leading to accelerate growth.

Fixed Assets:

Leasehold Building, Factory Building, Plant & Machinery, Laboratory Equipments, Electrical Equipment, Furniture & Fixtures, Computers, Motor Vehicles, Bore Well, Mobile and Office Equipments, etc.

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 records 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 records 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. 44.86
UK Pound	1	Rs. 85.24
Euro	1	Rs. 56.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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