MIRA INFORM REPORT

Report Date :

24.12.2007

IDENTIFICATION DETAILS

Name :	ASIATIC COLOUR CHEM INDUSTRIES LIMITED
Registered Office :	Plot No. 1503, GIDC, Phase I, Naroda, Ahmedabad – 382 330, Gujarat
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	09.01.1995
Com. Reg. No.:	04-24128
CIN No.: [Company Identification No.]	U2411GJ1995PLC024128
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Dyes and Dye Intermediates.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established company having fine track. Financial position is good. Payments are correct and as per commitments. Trade relations are fair. The company is doing well. It can be considered good for any normal business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long – run.

LOCATIONS

Registered Office/Factory :	Plot No. 1503 , GIDC, Phase I, Naroda, Ahmedabad – 382 330, Gujarat, India
Tel. No.:	91-79-22821066 / 66305941 / 66305928
Fax No.:	91-79-22820766 / 66305950
E-Mail :	mahesh@asiaticcolour.com, export@asiaticcolour.com , ceo@asiaticcolour.com info@asiaticcolour.com
Website :	http://www.asiaticcolour.com
Overseas offices / Branches	RM 1013, Novel Building, 887, Huai Hui Rd. (M), Shanghai – 200020, P. R. China Tel. 0086-21-64673821 / 64669438 Fax 0086-21-64715502 P. O. Box. No. 137, Mombassa, Kenya

DIRECTORS

Name :	Mr. Rajesh Kashiram Agrawal
Designation :	Chairman
Date of Birth/Age :	29.04.1965
Name :	Mr. Mahesh Kashiram Agrawal
Designation :	Director
Address :	A-101, Shilalekh, Shahibaug, Ahmedabad – 380 004, Gujarat
Date of Birth/Age :	03.12.1962
Qualification :	B. Com.
Experience :	20 years
Name :	Mr. Kashiram Banduram Agrawal
Designation :	Director
Address :	9, Subhash Nagar, Shahibaug, Ahmedabad – 380 004, Gujarat
Date of Birth/Age :	01.01.1940
Qualification :	S.S.C.
Experience :	45 years
Name :	Mr. Taru M. Agrawal
Designation :	Director
Address :	A-101, Shilalekh, Shahibaug, Ahmedabad – 380 004, Gujarat
Date of Birth/Age :	40 years
Qualification :	M. Sc.
Experience :	20 years
Name :	Mr. Ashok Kumar S Gupta
Designation :	Director
Address :	203, New Cloth Market, 1^st Floor, Ahmedabad – 380002
Name :	Mr. Anil Kumar Arora
Designation :	Director
Address :	Opp. Moti Vilas, 3RAD A Raod, Sardarpura, Jodhpur – 342003, Rajasthan
Date of Birth/Age :	11.09.1979

KEY EXECUTIVES

Name :	Ashokkumar S Gupta and Company
Designation :	Company Secreatary
Address :	5/B, Nilkanth Colony, Ved Mandir Road, Kankaria, Ahmedabad – 380022
Tel No.:	91-79-25452883
Mobile No.:	91-9824144823
E-Mail :	kalpesh3@rediffmail.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Mahesh Kashiram Agrawal	289500
Mr. K H Agarwal	5000
Ms. Savitridevi Agarwal	350
Mr. Taru M Agarwal	28200
Mr. Vibhor Agarwal	350
Mr. Baby Ujjwala Agarwal	350
Category	Percentage of Holding
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of Dyes and Dye Intermediates.
Exports :
Countries :	USA, Italy, Germany, UK, Switzerland, Mexico, Bangladesh, Brazil, Taiwan, Pakistan, Korea, Belgium, Singapore, Greece, Indonesia, Turkey, Nigeria, The Netherlands and Kenya.
Imports :
Products :	ACID ( M.W. 319 ), PARA NITRO ANILINE (PNA), SODIUM NITRITE, BROMAMINE ACID, META BASE ESTER, META PHENYL DIAMINE (MPD), ACETO ACETANILIDE (AAA), PMP, SPMP, CYANURIC CHLORIDE, BETA NAPHTHOL, SALICYLIC ACID, J – ACID, MIXED CLEVE'S ACID, ORTHONILIC ACID, TOBIAS ACID, DCDA, PARA CRESIDINE, ORTHO ANISIDINE, ACETYL J – ACID, M - ACID
Countries :	USA, UK, Middle East, China and Europe
Terms :
Selling :	L/C or Credit (30 / 60 days) terms
Purchasing :	L/C or Credit (90 days) terms

GENERAL INFORMATION

Customers :	Wholesalers and End Users
No. of Employees :	50
Bankers :	State Bank of India, GIDC Branch, Naroda, Ahmedabad – 382 330, Gujarat

Banking Relations :	Satisfactory
Auditors :
Name :	Ashokkumar S. Gupta & Company Chartered Accountants
Address :	203 / 1, New Cloth Market, Ahmedabad – 380 002, Gujarat
Tel. No.:	91-79-26466215 / 26468714 / 28121039
Fax No.:	91-79-22165881
Associates/Subsidiaries :	Orio Shanghai Colours Private Limited 306/B, GIDC, Phase I, Naroda, Ahmedabad – 382 330, Gujarat Line of Business : Manufacturer of S. O. Dyes

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10 each	Rs. 10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
323750	Equity Shares	Rs.10 each	Rs. 3.237 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		3.237	3.237	3.237
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		173.640	140.914	130.963
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		176.877	144.151	134.200
LOAN FUNDS
1] Secured Loans		195.669	143.841	148.774
2] Unsecured Loans		16.799	13.263	0.549
TOTAL BORROWING		212.468	157.104	149.323
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		389.345	301.255	283.523
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		79.731	69.734	61.445
Capital work-in-progress		2.142	4.066	0.489
INVESTMENT		0.001	0.001	0.001
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	82.586	94.364	73.824
	Sundry Debtors	276.651	212.804	173.436
	Cash & Bank Balances	14.759	16.106	38.114
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	34.022	48.570	36.780
Total Current Assets		408.018	371.844	322.154
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	100.547	143.423	99.200
	Provisions	0.000	0.967	1.370
Total Current Liabilities		100.547	144.390	100.570
Net Current Assets		307.471	227.454	221.584
MISCELLANEOUS EXPENSES		0.000	0.000	0.004
TOTAL		389.345	301.255	283.523

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		645.893	532.121	510.951
Other Income		6.369	0.022	0.047
Total Income		652.262	532.143	510.998
Profit/(Loss) Before Tax		36.114	10.703	8.669
Provision for Taxation		3.019	0.395	(9.011)
Profit/(Loss) After Tax		33.095	10.308	17.680
Export Value		NA	411.814	412.102
Expenditures :
	Raw Material Consumed	470.495	383.873	357.774
	Purchases made for re-sale	5.803	14.250	15.285
	Salaries, Wages, Bonus, etc.	6.847	6.721	7.204
	Managerial Remuneration	1.298	0.941	0.600
	Payment to Auditors	0.065	0.066	0.064
	Insurance Expenses	0.542	0.862	0.820
	Power & Fuel	27.785	19.757	21.563
	Other Expenditure	84.237	77.765	85.208
Total Expenditure		597.072	504.235	488.518

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	5.07	1.93	3.45
Net Profit Margin (PBT/Sales)	(%)	5.53	2.01	1.69
Return on Total Assets (PBT/Total Assets}	(%)	7.40	2.42	2.25
Return on Investment (ROI) (PBT/Networth)		0.20	0.07	1.86
Debt Equity Ratio (Total Liability/Networth)		1.76	2.09	1.86
Current Ratio (Current Asset/Current Liability)		4.05	2.57	3.20

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

Ø Factory Land

Ø Electrical Instillation

Ø Plant & Machinery

Ø Ancillary Plant

Ø Furniture & Fixture

Ø Office Equipment

Ø Vehicles

Form 8:

Name of the company	ASIATIC COLOUR CHEM INDUSTRIES LIMITED
Presented By	Mr. Mahesh K. Agrawal
1) Date and description of instrument creating the change	No instrument was executed. Memorandum of entry on equitable mortgage dated 29.08.2000
2) Amount secured by the charge/amount owing on the securities of charge	Rs.87.000 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	Equitable mortgage charge over the immovable property of the company situated at Plot No. 1503, GIDC, Phase I, Naroda, Ahmedabad – 382 330, Gujarat, India by way of equitable mortgage. The whole of the company immovable properties, fittings, electrical installations, erections, structures, godowns, present and or future.
4) Gist of the terms and conditions and extent and operation of the charge.	First charge over the entire immovable property of the company to cover the aggregate credit limits of Rs.87.000 millions sanctioned by the Bank as under: Facility Limit FBO Rs.70.000 millions Export Packing Credit Rs.15.000 millions Import L/C Rs.15.000 millions Bank Guarantee Rs.1.000 million Medium Term Loan Rs.1.000 million Rate of Interest: As Per Bank / RBI guidelines in force from time to time
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Naroda Industrial Estate Branch, GIDC, Naroda, Ahmedabad – 382330
6) Date and brief description of instrument modifying the charge	NA
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.	NA

Corporate identity number (CIN) Foreign company registration number	U2411GJ1995PLC024128
Name of the Company	ASIATIC COLOUR CHEM INDUSTRIES LIMITED
Address	Plot No. 1503, GIDC, Phase I, Naroda, Ahmedabad – 382 330, Gujarat, India
This form is for	Creation of charges
Type of Charge	Immovable property, Book Debts, Movable Property (not being pledge) and others
Particulars of the charge holder	State Bank of India NIE branch, Naroda, Ahmedabad – 382330, Gujarat E-Mail: sbi.01045@sbi.co.in
Amount secured by the charge	Rs.340.600 millions
Brief of the principal terms and conditions	Rate of Interest: As per gold card rates of State Bank of India Terms of Repayments: Annually Margin: 25% on raw material 40% on SIP and FG 50% on book debts 20% on FOB For EPC 15% for BG Extent and operation of the charge First charge
Description of the property charged indicating	Mortgage of Plot No. 1503, GIDC, Phase I, Naroda, Ahmedabad – 382 330, Gujarat, India Plant and machinery
Brif description of the instrument modifying the charge under section
Date of Instrument creating charges	24.01.2007

As Per Web Details

Company Profile:

Subject has grown manifold under the dynamic stewardship of the visionary, Mr. Mahesh Agrawal, The Chairman & Managing Director.

Today Subject with a multi-crore turnover stands tall on a solid foundation. Pioneering has been a major obsession with the Company. Reason why the company registered a rapid growth comparable to the overall industry growth in the past 2 years.

It took 24 hard, perspiring years for the company to scale new heights and achieve a respectable position in the Indian Chemical Industry.

• Team Spirit
• Quality Consciousness
• Constant Innovative Approch
• Market Awareness
• Foresightedness

Subject has its plant set up in the industrial and chemical zone of Western India, Naroda, Ahmedabad, Gujarat. Fully equipped with the most modern and sophisticated machinery, state-of-the-art technology like Spray Dryers and Reverse Osmosis processes.

The Company has a technically qualified, experienced, young and energetic staff, brimming with brilliant vision, whose belly-fires have not been put off, running the various departments - Production, Purchase, R & D, Quality Control, Packing & Forwarding, Marketing, Export Information Technology, Finance Accounts, etc.

Environment:

Subject has committed to "Environment Care". “Never betray the Mother Nature & destroy its natural beauty" is the motto of Subject. And towards achieving this goal, the Company has set up a well equipped ETP (Effluent Treatment Plant) with the help of Reverse Osmosis System, taking advantage of most modern Membrane Technology, to recycle the discharged water in to a re-usable form. The ETP plant is competent enough to cope up with the Company's future expansion plans for several years to come.

Towards a Clean & Green Environment, Subject is contributing its mite and trying to fulfill its social responsibility. Subject has also started its preparations to take ISO 14000 Certification

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.39.57
UK Pound	1	Rs.78.93
Euro	1	Rs.56.85

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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.	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