MIRA INFORM REPORT

Report Date :

07.04.2007

IDENTIFICATION DETAILS

Name :	NATIONAL PEROXIDE LIMITED
Registered Office :	Neville House, Ballard Estate, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	16.03.1954
Com. Reg. No.:	11-9254
CIN No.: [Company Identification No.]	L24299MH1954PLC009254
TAN No.: [Tax Deduction & Collection Account No.]	MUMN09912A
PAN No.:	AAAAN0020C
Legal Form :	Public Limited Liability Company. Its shares are listed on the stock exchange.
Line of Business :	Manufacturing and marketing of Hydrogen Peroxide (50)%, Sodium Perborate and Plastics Additives.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 2010000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an old and well established Company jointly promoted by The Bombay Dyeing and Manufacturing Company Limited and Laporte Industries, UK, engaged in manufacturing and marketing Hydrogen Peroxide and Sodium Perborate. The Company’s business has been growing satisfactorily. Financial position is good. Trade relations are reported as fair. Payments are correct and as per commitments. Your proposed business dealings of GBP 50000 can be considered against D/A or D/P terms.

LOCATIONS

Registered/Head Office :	Neville House, Ballard Estate, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-2618071
Fax No.:	91-22-2665966/2613519
E-Mail :	secretarial@naperol.com
Factory 1 :	N.R.C. Road, P.O. Atali, Via Mohone, Kalyan 421 102, District Thane, Maharashtra
Tel. No.:	91-251-2270094/ 2270670/ 2270673
Fax No.:	91-251-2270669/ 2270671
E-Mail :	mktg@naperol.com

DIRECTORS

Name :	Mr. P V Kuppuswamy
Designation :	Chairman
Name :	Mr. H. C. Bijawat
Designation :	Director
Name :	Mr. R. K. Pitamber
Designation :	Director
Name :	Mr. K. N. Suntook
Designation :	Director
Name :	Mr. Ness N. Wadia
Designation :	Director
Name :	Mr. C. De Sloover
Designation :	Director
Name :	Mr. E. Mignonat
Designation :	Director
Name :	Mr. D. B. Engineer
Designation :	Alternate Director
Name :	Mr. A. K. Hirjee
Designation :	Director
Name :	Mr. R. N. Sethna
Designation :	Director
Name :	Mr. A. L. Cumming
Designation :	Director
Name :	Mr. S. R. Lohokare
Designation :	Managing Director
Age :	55 years
Qualification :	B. Tech. (Hons) (Chemical Engineering), P.G.D.I.M, M.F.M. (Mumbai University)
Experience :	33 years
Date of Appointment :	29.04.1997
Name :	Mr. R Batra
Designation :	Director

KEY EXECUTIVES

Name :	Mr. S A Gaikwad
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No of Shares	Percentage of Holding
Indian Promoters	92732	40.34
Foreign Promoters	57700	25.10
Banks	33	0.01
Mutual Funds	0	0.00
Private Corporate Bodies	14595	6.35
Indian Public	58807	25.58
NRI/OCB	5599	2.44
Clearing Members	414	0.18
Total	229880	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and marketing of Hydrogen Peroxide (50)%, Sodium Perborate and Plastics Additives.

Products :

Generic Names of Principal Products/Services of the Company are as under:

Item Code	Product Description
284700	Hydrogen Peroxide
252890	Sodium Perborate

Imports from :

Europe and Far East

Terms :

Purchasing :

L/C, D/A or D/P

PRODUCTION STATUS

Subject’s production status as on 31.03.2004 were as under

Products	Unit	Licensed Capacity	Installed Capacity	Actual Production
Hydrogen Peroxide (50%)	MT	59000	35000	34382
Sodium Perborate	MT	1500	1500	452
Hydrogen	MT	23.45	17.6	12961407

GENERAL INFORMATION

No. of Employees :

121

Bankers :

· State Bank of India

· Canara Bank

· State Bank of Indore

Facilities :

(Figures are in millions)

Facilities	31.03.2006
SECURED LOANS
From Banks :
Term Loans	215.000
Cash Credits	8.685
Total	223.685
UNSECURED LOANS
Fixed Deposits	0.284
Short Term Loans and Advances: Intercorporate Deposits	3.000
Total	3.284

Banking Relations :	Satisfactory
Auditors :	S B Billimoria and Company Chartered Accountants
Associates/Subsidiaries :	Naperol Investments Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs. 100/- each	Rs.250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,29,880	Equity Shares	Rs. 100/- each	Rs.22.988 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		22.988	22.983	22.983
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		481.085	420.710	296.313
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		504.073	443.693	319.296
LOAN FUNDS
1] Secured Loans		223.685	0.096	66.335
2] Unsecured Loans		3.284	1.517	0.370
TOTAL BORROWING		226.969	1.613	66.705
DEFERRED TAX LIABILITIES		106.622	118.632	137.132
TOTAL		837.664	563.938	523.133
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		373.539	415.313	449.719
Capital work-in-progress		341.213	31.743	2.098
INVESTMENT		14.837	14.877	14.877
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	64.398	44.544	33.965
	Sundry Debtors	106.169	113.748	87.680
	Cash & Bank Balances	0.804	1.148	1.040
	Other Current Assets	0.047	0.047	--
	Loans & Advances	222.563	154.025	57.507
Total Current Assets		393.981	313.512	180.192
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	78.366	61.261	66.890
	Provisions	211.945	157.898	67.984
Total Current Liabilities		290.311	219.159	134.874
Net Current Assets		103.670	94.353	45.318
MISCELLANEOUS EXPENSES		4.405	7.652	11.121
TOTAL		837.664	563.938	523.133

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		700.615	753.728	586.422
Other Income		19.059	6.028
Total Income		719.674	759.756	586.422
Profit/(Loss) Before Tax		152.649	214.250	115.239
Provision for Taxation		53.000	71.500	41.000
Profit/(Loss) After Tax		99.649	142.750	74.239
Total Earnings		3.522	3.212	NA
Imports :
	Raw Materials	19.945	36.052
	Stores & Spares	0.205	2.022	22.803
	Capital Goods	0.000	3.152
	Others	25.820	17.368
Total Imports		45.970	22.542	22.803
Expenditures :
	Manufacturing Expenses	520.503	497.232
	Interest	0.424	2.569	471.405
	Depreciation & Amortization	46.098	45.705
Total Expenditure		567.025	545.506	471.405

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2006 (1^st Qtr.)	30.09.2006 (2^nd Qtr.)	31.12.2006 (3^rd Qtr.)
Sales Turnover	75.200	125.200	197.100
Other Income	3.000	3.700	2.700
Total Income	78.200	128.900	199.800
Total Expenditure	72.200	103.200	146.400
Operating Profit	6.000	25.700	53.400
Interest	0.200	0.600	6.300
Gross Profit	5.800	25.100	47.100
Depreciation	11.600	11.600	16.900
Tax	1.800	7.400	(3.300)
Reported PAT	(4.800)	9.400	20.100

200606 Quarter 1

Notes:-

1. During the current quarter, the Company had undertaken work relating to expansion of its plant capacity to 49,000 metric tons per annum. As a result, the plant was shut from 17th April, 2006 till the end of the quarter. The results of the current quarter are, therefore, not comparable to the corresponding quarter of the previous year. 2. Pursuant to the Accounting Standard (Revised) on 'Employee Benefits' (AS-15) issued by the Institute of Chartered Accountants of India being mandatory with effect from 1st April, 2006, the Company has charged an additional amount of Rs.4 lacs to the revenue account for the quarter ended June 30, 2006. The additional obligation of the Company as on March 31, 2006 amounting to Rs.20.73 tacs (net of deferred tax), has in accordance with the transitional provisions of AS-15 been debited to the General Reserve. 3. During the quarter ended June 30, 2006, the Company subdivided its equity share capital from its existing face value of Rs.100 each into 10 shares of Rs. 10 each and issued fully paid up bonus shares in the proportion of 3 equity shares for every 2 equity shares held. 4. In accordance with the requirements of the Accounting Standard on'Earings Per Share (AS-20) issued by the Institute of Chartered Accountants of India, the basic and diluted earnings per share of the corresponding previous periods have been adjusted to reflect the increased number of shares consequent to the bonus issue of 3 shares for every 2 shares held and the share split from the face value of ks.100/- each into 10 shares of the face value of Rs.10/-each. 5. No investor's complaints were pending at the beginning of the quarter. Three complaints received during the quarter were satisfactorily resolved during the quarter. 6. In the context of the Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India, the Peroxygen business, being the only business which the Company is engaged in, is considered as the only Business Segment. 7. The figures for the previous year/ period have been regrouped/ reclassified, wherever necessary to conform to the classifications of the current quarter. 8. The above results were scrutinised by the Audit Committee of the Board and were thereafter approved and taken on record by the Board of Directors at its meeting held on 28th July, 2006. These results have been subjected to a ' Limited Review by the Auditors.

200609 Quarter 2

Notes:

1. As a part of the expansion project of the Company, a planned shutdown was taken from 17th April, 2006 to 31st July, 2006. The then existing capacity was operated from 1st August, 2006 to 15th October, 2006. After a brief shut down of about 5 days, the expanded capacity has since been brought on line and is under stabilisation. The benefits of the expanded capacity are expected to be available by the end of the third quarter. The results of the current quarter and half year are, therefore, not strictly comparable to those of the corresponding earlier periods. 2. Pursuant to the Accounting Standard(Revised) on Employee Benefits' (AS-15) issued by the Institute of Chartered Accountants of India being mandatory with effect from 1st April, 2006, the Company has charged an additional amount of Rs.11 lacs to the revenue account for the period ended September 30, 2006. The additional obligation of the Company as on March 31, 2006 amounting to Rs.20.73 lacs (net of deferred tax), has in accordance with the transitional provisions of As-15 been debited to the General Reserve. 3. during the half year ended September 30, 2006, the Company subdivided its equity share capital from its existing face value of Rs.100each into 10 shares of Rs.10 each and issued fully paid up bonus hares in the proportion of 3 equity shares for every 2 equity shares held. 4. In accordance with the requirements of the Accounting Standard on Earnings Per Share (AS-20) issued by the Institute of Chartered Accountants of India, the basic and diluted earnings per share of the corresponding previous periods ave been adjusted to reflect the increased number of shares consequent to the bonus issue of shares for every 2 shares held and the share split from the face value of Rs.100/- each into 10 shares of the face value of Rs.10/- each. 5. There were no investor's complaints pending at the beginning of the quarter. Three complaints received during the quarter were satisfactorily resolved during the quarter. 6. In the context of the Accounting Standard on Segment Reporting (As-17) issued by the Institute of Chartered Accountants of India, Peroxygen business, the only business which the Company is engaged in, is considered as the only Business Segment. 7. The figures for the previous year/period have been regrouped/ reclassified, wherever necessary to conform to the classifications of the current quarter. 8. The above results were scrutinised by the Audit Committee of the Board and were there after approved and taken on record by the Board of Directors at its meeting held on 31st October, 2006. These results have been subjected to Limited Review' by the Auditors.

200612 Quarter 3

Notes

EPS is Basic & Diluted Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 05 Complaints disposed off during the quarter 05 Complaints unresolved at the end of the quarter Nil 1. As a part of the expansion project of the Company, a planned shutdown was taken from April 17, 2006 to July 31, 2006. The then existing capacity was operated from August 01, 2006 to October 31, 2006. The expanded capacity has since been brought on line and commercial production has commenced from 1st November, 2006. The results of the current quarter and nine months are, therefore, not strictly comparable to those of the corresponding earlier periods. 2. Pursuant to the Accounting Standard (Revised) on Employee Benefits (AS-15) issued by the Institute of Chartered Accountants of India being mandatory with effect from April 01, 2006, the Company has charged an additional amount of Rs 1.80 million to the revenue account for the period ended December 31, 2006. The additional obligation of the Company as on March 31, 2006 amounting to Rs 2.073 million (net of deferred tax), has in accordance with the transitional provisions of AS-15 been debited to the General Reserve. 3. During the half year ended September 30, 2006, the Company subdivided its equity share capital from its existing face value of Rs 100 each into 10 shares of Rs 10 each and issued fully paid up bonus shares in the proportion of 3 equity shares for every 2 equity shares held. 4. In accordance with the requirements of the Accounting Standard on Earning Per Share (AS-20) issued by the Institute of Chartered Accountants of India, the basic and diluted earnings per share of the corresponding previous periods have been adjusted to reflect the increased number of shares consequent to the bonus issue of 3 shares for every 2 shares hold and the share split from the face value of Rs 100/- each into 10 shares of the face value of Rs 10/- each. 5. In the context of the Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India, Peroxygen business, the only business which the Company is engaged in, is considered as the only Business Segment. 6. The figures for the previous year / period have been regrouped / reclassified, wherever necessary to conform to the classifications of the current quarter. 7. The above results were reviewed by the Audit Committee of the Board and were thereafter approved and taken on record by the Board of Directors at its meeting held on January 30, 2007. These results have been subjected to a Limited Review by the Auditors.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	0.24	0.09	0.43
Long Term Debt-Equity Ratio	0.23	0.07	0.31
Current Ratio	0.95	0.79	0.63
TURNOVER RATIOS
Fixed Assets	0.73	0.79	0.63
Inventory	14.78	22.02	21.79
Debtors	7.33	8.59	7.90
Interest Cover Ratio	382.50	83.42	15.05
Operating Profit Margin(%)	24.69	30.34	25.56
Profit Before Interest And Tax Margin(%)	18.97	25.06	18.30
Cash Profit Margin(%)	18.07	21.78	18.27
Adjusted Net Profit Margin(%)	12.35	16.50	11.00
Return On Capital Employed(%)	26.28	53.38	30.68
Return On Net Worth(%)	21.02	37.43	25.53

STOCK PRICES

Face Value	Rs.10.00/-
High	Rs.226.00
Low	Rs.209.00

LOCAL AGENCY FURTHER INFORMATION

History

Subject was jointly promoted by The Bombay Dyeing & Manufacturing Company and Laporte Industries, UK. The peroxygens division of the company manufactures hydrogen peroxide and persalts. And the other plastic additives division produces, litharge and PVC stabilisers.

The first plant, manufacturing hydrogen peroxide using the electrolytic process, was set up in 1956. In 1972, NPL adopted the latest auto oxidation technology. A captive hydrogen gas plant was set up in 1987. After a series of expansions, the capacity of the hydrogen peroxide plant has increased to 15,000 tpa. In 1970, Laporte joined hands with Solvay, Belgium, and formed a joint venture known as Interox Coordination. In 1992, Solvay took over Interox Coordination and became a shareholder of NPL with a 25.10% stake.

Subject established a plant in Dewas, Madhya Pradesh, to manufacture litharge and plastic additives (inst. cap.: 4800 tpa) in 1989, in collaboration with Akzo Chemie, Germany. Subject produces litharge, lead stabilisers, solid metal complexes, liquid metal complexes, epoxidised soya bean oil and one-pack stabiliser systems in Dewas. In June 2000, NPL sold it's Dewas division to Barlocher India Additives Private Limited, an Indian arm of Barlocher GmbH. The company handed over the plant on June 30, 2000 as per the conciliation agreement with the M/s Barlocher Gmbh, Germany. The sale proceeds were used to pay off high cost loans. 

It established an integrated research centre in Kalyan in 1979, (cost : Rs 15 millions) to promote the applications of hydrogen peroxide and persalts in various industries, to carry out process development and to provide technical services required for plastic additives.  

Subject's real estate project, named Naperol Tower was completed and the company sold 121 flats during the year 2000-01 and the remaining 38 flats were to be sold.

Business:

The company also manufactures Hydrogen for captive consumption.

The financial results for the year under review were affected due to the following reasons :

During the year, production of Hydrogen Peroxide was 34,382 MT which is 115% of the nameplate capacity. The production was affected due to massive floods during July 2005, leading to a production loss of 1,500 MT.

During 4he year, the prices were under pressure as a result of reduction in customs duty and also imports.

OPERATIONS

During the year under review, sale of Hydrogen Peroxide in domestic market including imports was 34,533 MT as compared to 35,443 MT in the previous year. Stock was built up during the 4th quarter of the year in order to meet the requirement of key customers during the planned shutdown in April and May 2006 so as to bring the expanded capacity in line from June 2006. This resulted in a shutdown of 8 weeks leading to a loss of production of 6,000 MT. The expansion will result in an increase in the nameplate capacity from 30,000 MT to 49,000 MT. With this, the Company expects to increase its market share. The increased capacity will be achieved with marginal increases in fixed costs.

The sales were affected during the year due to loss of 1,500 MT of production as a result of massive floods during July 2005.

Had this production been available, they would have ended the year with marginally higher sales as compared to previous year, inspite of building up stocks for the shutdown. The prices continue to be under pressure during the year due to substantial imports from China and Turkey.

From 1st March, 2006, customs duty has been reduced from 15% to 12Va% with an additional CVD @ 4% and hence the prices are expected to remain unchanged. The overall prices are expected to remain under pressure during the coming year due to reduction in international prices.

During the year, substantial investments took place in major textile centres such as Tirupur/ Karur/ Erode in the South and Panipat/ Faridabad/ Ludhiana in the North as a prelude to abolition of textile quota system under WTO in January 2005.

This will generate additional demand for their products.

The demand for their products from the paper industry is also expected to be strong.

During the second half of the year, the crude oil prices increased significantly leading to substantial increase in Naphtha and Fuel oil prices. The increase in the variable cost could not be neutralized by way of higher price in the market and margins were under pressure. During the current year, the trend of high oil prices is expected to continue.

The Company entered into a long term settlement with the Union on 28th October, 2005 which will expire on 30th September, 2009. Industrial relations continued to be cordial during the year.

INDUSTRY STRUCTURE AND DEVELOPMENTS

Subject is the largest producer of Hydrogen Peroxide in the country and commands a market share of 36%. In addition to being well known in the industry as a pioneer, its product commands a strong brand image.

Subject has been in the forefront in new applications development.

Due to these efforts, the domestic market has significantly developed over the years.

During the year, the Company announced its expansion from its nameplate capacity of 30,000 MTPA to 49,000 MTPA per annum. The plant has undergone shutdown in April and May 2006 to bring the increased capacity in line. Additional capacity of one of the competitors is expected to go on stream in April 2007.

OPPORTUNITIES AND THREATS

The availability of natural gas from GAIL (India) Limited, presently expected in April 2007 would result in reduction in cost of production. This would open up opportunities for exporting to the neighboring countries. The company's expansion would also result in lower fixed cost, thereby making it competitive.

Investments took place in major textile industries like Tirupur/ Karur/ Erode in the South and Panipat/ Faridabad/ Ludhiana in the North leading to expectation of increased demand for their products.

Threat from imports, particularly from China and Turkey, is foreseen in future and having- regard to their large capacities, is likely to put some pressure on the prices in the domestic market.

As far as Indian market is concerned, a healthy growth of 10% in volume is seen during 2006-07.

OUTLOOK

In Indian market besides subject there are three other manufacturers. One of them is setting up a plant at Dahej which is expected to be operational in April 2007. They will use Hydrogen generated from their caustic chlorine plant.

Subject is also expanding its plant from its nameplate capacity of 30,000 MTPA to 49,000 MTPA. The Company has resorted to imports during the last two years to seed the domestic market.

With these additional capacities, the gap in the market which is currently met by imports, can be met by domestic producers.

Other companies are presently using their capacities fully.

Domestic competition is likely to be keen after both expansions are complete. However, market growth and right pricing which will help in reduced imports provides an opportunity to obtain a significant increase in volumes for the industry as a whole.

Significant quantities of Hydrogen Peroxide are available in international market particularly in China and Turkey who are willing to export the same at very low prices to run their plant at full capacities. Thus they expect the Hydrogen Peroxide prices to be under pressure in the months to come. To tackle competition from imports the Company continues to increase the proportion of supplies in naked form and in recycled carboys. As a result, benefits are likely to accrue to the domestic consumers by way of lower costs and better prices for local producers of Hydrogen Peroxide. The domestic prices will be guided by the GIF price of imports.

The concern for Environment has also resulted in the use of Hydrogen Peroxide, known as "Mr. Clean" for environmental application as it leaves environmental friendly residues. It is expected that, in the long term, the Hydrogen Peroxide market will continue to grow significantly.

The outlook of the business can be viewed with cautious optimism.

Company’s fixed assets include Freehold Land, Buildings, Plant and Machinery, Furniture and Fixtures, Office Equipments and Vehicles.

Website Details :

They are the Manufacturers of Chemicals "Hydrogen Peroxide" and "Sodium Perborate".

Company Profile:

Subject is a public limited Company, established in 1954.

Subject is the largest manufacturer of Hydrogen Peroxide in India, with an installed capacity of 49,000 MTPA on 50% w/w. basis. The plant is located at Kalyan in Maharashtra (India) with fully integrated facility for hydrogen peroxide, in collaboration with world leader, solvay S.A of Belgium. NPL is a Pioneer in India for peroxygen Chemicals.

NPL is accredited with ISO 9001:2000

Introduction:

Hydrogen Peroxide is a most versatile chemical used in various industries for bleaching, chemical synthesis, environmental control/effluent treatment, sterilisation etc. The single most important constituent of Hydrogen Peroxide is the “active oxygen” that it provides in the aforementioned end-uses. The “active oxygen” is obtained by the controlled decomposition of Hydrogen Peroxide, with water as the by-product. Hence, whether it is bleaching, or chemical synthesis, the use of Hydrogen Peroxide provides a very “clean” process without the production of any harmful or environmentally unsafe products.

In India, Hydrogen Peroxide is manufactured to international standards by National Peroxide Limited, using the auto-oxidation process, at its most modern and up-to-date plant near Kalyan, Maharashtra.

NPL’s Hydrogen Peroxide is a concentrated aqueous solution containing 50% Hydrogen Peroxide by weight and is commonly referred to as Hydrogen Peroxide 50%w/w. It is especially stabilised for Indian climatic conditions.

HYDROGEN PEROXIDE 50.0 % w/w ( CONCENTRATED)

Specifications:

Molecular Wt.	34.02
Equivalent Wt.	17.002.
Molecular Formula	H --- O --- O --- H.
General Appearance	Clear colorless liquid, free from suspended matter, with slightly sharp odor.
Strength in Volume @ 20.0 °C	59.8 % w/v.
Density @ 25.0 °C.	1.20 g/cc.
Freezing point ( Onset )	-52.0 °C.
Boiling point	114.0 °C.
Viscosity @ 25.0 °C.	1.06 Centipoises.
Refractive Index @ 25.0 °C.	1.366.
Approx Oxygen liberated @N.P.T.	197 v/v.
Available Oxygen	23.5 % w/w.
Miscibility @ 20.0 °C	Miscible in all

No.	PROPERTIES	SPECIFICATIONS	Method
1	Strength.	50.0 % w/w.MIN	QAM-FP-01
2	Acidity.	£1.5-6.0 mEq/lit.	QAM-FP-05
3	Stability. O2/min./25mls @100 °C.	£0.3 mls. Of  O2/min./25mls @100 °C.	QAM-FP-02
4	Phosphate Content. (As PO4).	100-250ppm	QAM-FP-06
5	Non-Volatile Matter @ 105 °C.	£ 2000.0 ppm.	QAM-FP-14
6	Iron Content (as Fe.).	£1.0 ppm.	QAM-FP-10
7	Residue On Ignition @ 800 °C.	£500.0 ppm.	QAM-FP-18

SODIUM PERBORATE MONOHYDRATE

Specifications:

Molecular Wt.	99.80.
Molecular Formula	NaBO3 H2O
General Appearance	White free flowing Odorless powder with bulk density of about 0.5-0.6 gms/cc without any lumps.
Melting Point	142  °C(with decomposition above 65 °C )
PH (1% solution)	10.4 to 10.6.
Solubility:
Solubility in water @20.0 °C	15.0 gpl.
Solubility in water @30.0 °C	40.0 gpl.

No.	PROPERTIES	SPECIFICATIONS	Method
1	Available Oxygen.	15-15.9 % w/w.	DQA105
2	Bulk Density.	0.5-0.6gms/cc.	DQA105
3	Na2O Content	29.3-30.8 %w/w.	DQA105
4	B2O3 Content.	33.0-34.8 %w/w.	DQA105
5	Particle Size Distribution:
	On BSS 20 Mesh.	£1.0 %w/w.	DQA105
	On BSS 35 Mesh.	15.0-80.0 %w/w.
	Through BSS 100 Mesh.	£5.0 %w/w.

Applications:

Sodium Perborate have application in detergent industry as bleach activator for stain removal. They are also used in denture cleaner, hair dye as fixer, oxidation of vat dyes as well as in laundry.

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 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.43.15
UK Pound	1	Rs.85.22
Euro	1	Rs.57.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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		52

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