MIRA INFORM REPORT

Report Date :

09.04.2007

IDENTIFICATION DETAILS

Name :	K V FIRE CHEMICALS [INDIA] PRIVATE LIMITED
Registered Office :	Kamala Niwas, 2^nd Floor, Plot - 32, Lane - D, Sector - 8, Vashi, Navi Mumbai - 400 703
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	29.09.1995
Com. Reg. No.:	11-93237
SSI Reg. NO:	11611316 Dt. 19.04.2000
CIN No.: [Company Identification No.]	U29193MH1995PTC093237
IEC No.:	0388191155 Dt. 01.04.1988
TAN No.: [Tax Deduction & Collection Account No.]	MUMK06338D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers, Dealers, Exporters, Importers in fire fighting equipments, systems, fire extinguishing chemicals, spare parts, hardwares, assemblies and allied products.

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 175000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track records. Directors are reported as experience and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office / Sales Office :	Kamala Niwas, 2nd Floor, Plot - 32, Lane - D, Sector - 8, Vashi, Navi Mumbai - 400 703, India
Tel. No.:	91-22- 27820827 / 3901
Mobile No.:	91-98203  42062
Fax No.:	91-22- 27824712
E-Mail :	response@kvfire.com kvfc@mtnl.net.in pns1012@gmail.com
Website :	http://www.kvfire.com

DIRECTORS

Name :	Mr. Hiralal M. Sabadra
Designation :	Director
Address :	Plot 32, Lane – D, Kamala Niwas Sector – 8, Vashi, Navi Mumbai – 400703, Maharashtra, India
Date of Birth/Age :	19.09.1946
Date of Appointment :	29.09.1995
Name :	Mr. Rajesh H. Sabadra
Designation :	Director
Address :	Plot 32, Lane – D, Kamala Niwas Sector – 8, Vashi, Navi Mumbai – 400703, Maharashtra, India
Date of Birth/Age :	08.03.1969
Date of Appointment :	29.09.1995

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Mr. Hiralal M. Sabadra	100	39%
Mr. Rajesh H. Sabadra	100	15.5%
Kamala H. Sabadra		17 %
Diplali R. Sabadra		5%

BUSINESS DETAILS

Line of Business :

Manufacturers, Dealers, Exporters, Importers in fire fighting equipments, systems, fire extinguishing chemicals, spare parts, hardwares, assemblies and allied products.

Products :

	Brand Name	Name Of Product
(a) Protein Base	Shriform	Protein Foam 3% Concentrate.
	Shrifoam	Protein Foam 6% concentrate
	K-V- Lite Fp3%	Fluoro –Protein Foam 3 % Concentrate
	K-V-Lite Fp6%	Fluoro -Protein Foam 6% Concentrate
	KV- Lite FFFP 3%	Film Forming Fluoro –Protein Foam 3 % Concentrate
	KV – Lite FFFP 6%	Film Forming Fluoro –Protein Foam 6% Concentrate
	KV – LITE EP – AR 3x 6%	Fluoro – Protein Alchohol Resistant Foam 3x6 Concentrate
	KV-Lite FP – AR 3X3 %	Fluoro – Protein Alchol Resistant Foam 3X3 Concentrate
	KV – Lite FFFP – AR 3X6%	Film Forming Fluoro – Proein Alcohol Resistant Foan 3X6 Concentrate
	KV - Lite FFFP –AR 3X3 %	Film Forming Fluoro – Protein Alchohol Resistant Foam 3 X 3 Concentrate
(b)Synthetic base	Kv-Lite Heef 1 – 3 %	High Expansion Foam 1-3%
	KV-Lite Class –A	Class A Foan
	KV – LITE HF	Hazmat Form (Vapour Suppression )
	KV-Lite AFFF 3%	Aqueous film Forming Form (AFFF) 3%
	KV-Lite AFFF6%	Aqueous Film Forming Foan (AFFF) 6%
	KV - Lite AFFF 3%	Aqueous Film Forming Foam (AFFF) 3% (UL Listed)
	KV – Lite AFFF 6%	Aqueous Film Forming Foan (AFFF) 6% (UL Listed)
	KV – LITE AR –AFFF 3x3 %	Alchohol Resistant Aqueous Film Forming Foam 3X3 %
	KV _ Lite AR –AFFF 3X6 %	Alchohol Resistant Aqueous Film Forming Foam 3X6%

DRY Chemical Powders

Base	Brand Name	Name Of Product
(a) BC	KV –LITE SBC	Sodium Bi- Carbonate base
	KV –Lite PBC Stadard	Potassium Bi- Carbonate Base – 40 %
	KV- Lite PBC Super	Potassium Bi – Carbonate baase 90 %
(b) High Grade – BC	KV – OLRRX ABC 50	Mono- Ammonuum Phosphate Base – 50 %
(c) ABC	KV- Lite ABC 50	Mono- Ammonium Phosphate Base – 50 %
	KV- KV- Lite 70	Ono –Ammonium Phosphate base – 70 %
	KV – Lite ABC 90	Mono – Ammonium Phosphate Base – 90 %
(d)	KV – Lite Tec	Ternary Eutectic Chloride base

Refills

KV – Lite MFR 9	Mechanical Foam Refill 9 Liters Capacity
KV – Lite MFR 50	Mechanical Foam Refill 50 liters Capacity
KV – Lite MFR 150	Mechanical Foam Refill l150 Liters Capacity

Packaging

Foam Concentrates :	20 Ltrs. / 30 Ltrs. / 200 Ltrs. Blue /Black HM HDPE Jerry cans/ Barrels. Recommended 30 ltrs. Black UL approved Bulk packaging available on request.
Dry Chemical Powders :	5 Kg. / 10 Kg. 25 Kg / 50 Kg . HDPE Bags Special Rigidex (Water Proof packaging ) Available on Request and is recommended for longer shelf life.
Mechanical Foam Refills :	90 ML / 270 ML / 540 ML / 2.7 Ltr. / any other packaging available as per request. We recommend type 3 refill for 9 liters mechanical foan extinguisher i.e. 270 ML Charge .

Brand Names :

Product Range Enclosed

Agencies Held :

1. Angus Fire –UK

2. Kidde De Mexico.

Exports :

Products :

Fire Extingushing Chemicals

Countries :

USA , Singapore

Imports :

Products :

Raw Material

Countries :

Switzerland

Terms :

Selling :

L/C

Purchasing :

L/c

PRODUCTION STATUS

Particulars	Installed Capacity	Actual Production
Dry Powders	4000 MT	1000MT
Fiam Concentrates	5000KL	1000 KL

GENERAL INFORMATION

Customers :	Ø Type of Customer : Ø Air Force, Army & Navy Ø Airports Authority of India : Domestic & International Airports Ø Chemical Tank Terminals Ø Refineries & Pipeline Projects Ø Oil Fields - Off Shore & On Shore Ø Gas Fields Ø Port Trusts Ø Power Plants - Atomic, Hydro  & Thermal Ø Shipyards & Shipping Companies Ø Fertilizer Complexes Ø Chemical Industries Ø Fire Brigades Ø Steel Plants, Mines and Metallurgical  Industries Ø Original Equipment Manufacturers  ( OEM ) Project Consultants
No. of Employees :	66
Bankers :	The Saraswat Co-op Bank Ltd Vashi
Facilities :	Credit Limit : Rs. 20.000 Million.

Auditors :
Name :	P.K. Kumar and Company Chartered Accountants
Address :	105, Mathura Palace, Plot No. 449, 1^st Floor, Behind Kisan Vidyut, Vakilwadi, Nasik – 422001, Maharashtra, India
Name :	Mr. Prakash N. Sabadra Chartered Accountants
Address :	Office No. 9 Damie Chambers Above Hotel Pathik , Tilak Path , Nashik 422001
Tel. No.:	95253-462889

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs. 10/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs. 10/- each	Rs.20.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		20.000	20.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		23.823	11.060
4] (Accumulated Losses)		0.000	0.000
NETWORTH		43.823	31.060
LOAN FUNDS
1] Secured Loans		7.082	4.022
2] Unsecured Loans		8.947	9.200
TOTAL BORROWING		16.029	13.222
DEFERRED TAX LIABILITIES
TOTAL		59.852	44.282
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		25.314	24.515
Capital work-in-progress		0.000	0.000
INVESTMENT		0.013	0.013
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.311	12.219
	Sundry Debtors	24.829	21.748
	Cash & Bank Balances	20.117	9.899
	Other Current Assets	0.000	0.000
	Loans & Advances	8.229	4.002
Total Current Assets		70.486	47.868
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	13.276	12.865
	Provisions	8.160	3.733
	Sales Tax Defferral	14.576	11.576
Total Current Liabilities		36.012	28.174
Net Current Assets		34.474	19.694
MISCELLANEOUS EXPENSES		0.051	0.060
TOTAL		59.852	44.282

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005
Sales Turnover	123.094	81.104
Other Income	4.448	3.157
Total Income	127.542	84.261
Profit/(Loss) Before Tax	18.109	6.037
Provision for Taxation	5.346	1.710
Profit/(Loss) After Tax	12.763	4.327
Expenditures :
Total Expenditure	109.433	78.233

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	10.00	5.13
Net Profit Margin (PBT/Sales)	(%)	14.71	7.44
Return on Total Assets (PBT/Total Assets}	(%)	52.52	30.65
Return on Investment (ROI) (PBT/Networth)		0.41	0.19
Debt Equity Ratio (Total Liability/Networth)		0.82	0.90
Current Ratio (Current Asset/Current Liability)		1.95	1.69

LOCAL AGENCY FURTHER INFORMATION

Name of the company	K V FIRE CHEMICALS [INDIA] PRIVATE LIMITED
Presented By	Mr. H. M. Sabadra
1) Date and description of instrument creating the change	Agreement for Bank Guarantee Limit dated 15.10.1999
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 1.500 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All movable property, Book Debts, etc. and more particularly as shown in detail as per above referred agreement dated 15.10.1999.
4) Gist of the terms and conditions and extent and operation of the charge.	As per the above referred agreement dated 15.10.1999
5) Name and Address and description of the person entitled to the charge.	The Saraswat Cooperative Bank Limited Nasik Branch, Nasik
6) Date and brief description of instrument modifying the charge	Agreement to further charge dated 29.03.2004 and supplemental agreement of further charge dated 29.03.2004
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	On 14.03.2001 charge modified and enhanced from Rs. 1.500 Millions to Rs. 2.500 Millions [Filed on 12.04.2001 and registered at Sr. No. 22 dated 19.04.2001] By this modification Bank Guarantee limit enhanced from Rs. 2.500 Millions to Rs. 7.500 Millions [Addition of Rs. 5.000 Millions]

AS PER WEBSITE

Company Profile  :-

K.V. Fire Chemicals came into existence in 1988. From a small beginning of 19 lakhs turnover in 1991 reached 600 lakhs turnover in year 2001-01.

Largest Plant Area 2,00,000 Sq.ft. built up as under.

Administration	1250
Laboratories	1250
Foam Plant	3600
Powder Plant	4500
Test Ground	10000
Residence	5500
Garden	10000
Total	36000 Sq.ft.

Test facilities as per various National & International Standards like,  ISI, ISO, UL, US MIL, DIN, ICAO etc. exists. Professional organization managed by highly qualified and dedicated personnel handling each activity professionally and independently.

ENTREPRENEUR'S BACKGROUND :-

Mr. H.M. Sabadra Managing Director is a  Chemical Engineer from UDCT Mumbai.He has 3 decades of experience in the field of fire protection. Last 12 years, he is working exclusively, devoted in developing manufacturing and supplying fire fighting chemicals.

He is a recipient of Udyog Ratan Award at the hands of the President of India Shri Zali Singh. He has travelled very widely to USA, Europe, Africa, Asian Countries to study the manufacturing, testing and R & D facilities of the fire Industries.  He has built up rapport with many leading scientists all over the world for technology development. He is a member of Technical Committee of Indian Standards responsible for drafting  Indian Standards since last 25 years.

He has served as a Honorary Secretary of Fire Equipment Manufacturer's Association for nearly a decade.

He, besides being a successful industrialist, is a man of many interests, like Music, Poetry & Literature.
He heads Navi Mumbai Jain Community with very active participation social and religious activities.

VISION & MISSION STATEMENTS:-

VISION

The Vision of K.V. Fire Chemicals is " To be one of the world leader in manufacture of highest quality fire extinguishing chemicals, both Powders and Foams."

Mission

To obtain UL listing of all types of foams.
To obtain UL listing of powders.
To create customers awareness about importance of product quality by education and training.
To export the products.
To achieve ISO-14000 norms.
To obtain Products approvals as per European, U.K. Defence Standards and other International Standard.

LEADERSHIP STATEMENT :-

They are leader with respect to :

Factory Area	2,00,000 Sq.ft.
Foam Production	25,00,000 Ltr / year
Powder Production	1800 MT / Year
Product Range	Largest and versatile
Powders	5 Types
Foams	6 Types
Testing Facilities	Largest 10,000 sq.ft.
Sales Network	Widest covering entire India
Emergency Service	Supply of 100 MT of Fire chemicals off the shelf  delievery.

Leadership is proved by :-

Single largest order of 259 MT Dry Chemical Powder from Army Headquarters and repeat order of 59 MT.
Air Headquarters  order for 1,29,350 Ltrs of AFFF and repeat of  1,01,200 Ltrs. Single largest order for AFFF in history of India, for 2,87,000 Ltrs  valued at Rs. 16.700 Millions from BPCL. Only company to have Annual Rate Contract with Airports Authority  of India continuously since last 3 years servicing all National Airports.

ALWAYS THE FIRST  :-

To obtain ISI Licence for SBC powder in India first under Reliable 
brand and then Under Quality brand.
To obtain Foam Compatibility endorsement.
To obtain ISI Licence for Potassium Bicarbonate base Powder.
To obtain Mono Ammonium Phosphate base endorsement.
To obtain ISI Licence for ABC powder.
To obtain ISI Licence for Fluoro Protein Foam.
To obtain ISO-9002 accreditation for both powder & foam manufacturing.

TESTED AND CERTIFIED BY:-

BIS ( ISI MARKED )

Under Writer's Laboratory (UL)

Centre for Env. and Explosive Safety ( DIFR )

Lloyds Register of Shipping Limited

Det Norske Veritas  ( DNV ), Mumbai

Bureau Veritas, Mumbai

Engineers India Limited, Mumbai.

Superintendence Co. of India (Private) Limited, Mumbai.

Projects Development India Private Limited (PDIL) Delhi.

Gujarat Industrial Research and Development Agency (GIRDA), Baroda

Nuclear Power Corporation of  India Limited Mumbai.

Rail India Technical and Economic Service Limited (RITES) Mumbai

System Engineers & Advisory Services Pune Private Limited, Pune

National Test House, Mumbai, Kolkata

Exclusive Marketing Helpline – 91-22 - 2782 67 33

Works  :  91- 2553 - 231063

Fax : 91-2553-231062

MOBILE : 91-98220 52119

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.42.88
UK Pound	1	Rs.85.22
Euro	1	Rs.57.27

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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