MIRA INFORM REPORT

Report Date :

09.03.2007

IDENTIFICATION DETAILS

Name :	NAPTHA RESINS & CHEMICALS PRIVATE LIMITED
Registered Office :	No. 491, 4^th Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	30.05.1974
Com. Reg. No.:	08-2571
CIN No.: [Company Identification No.]	U24231KA1974PTC002571
TAN No.: [Tax Deduction & Collection Account No.]	BLRN00157D
PAN No.: [Permanent Account No.]	44-156-CQ
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Polyester Resins, Pigments, Paints, Thinners 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 :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Their 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 / Factory :	No. 491, 4^th Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka
Tel. No.:	91-80-28361716 / 51177642 / 28362473 / 22205214 / 28360119
Fax No.:	91-80-28390119
E-Mail :	nrclwork@bom9.vsnl.net.in nrcl@bgl.vsnl.net.in
Website :	http://www.naptharesins.com [under construction]
Area :	5.5 Acres (Owned)
Branches :	Located at: Chennai, Kochi, Hyderabad and Delhi

DIRECTORS

Name :	Mr. Narinder Malik
Designation :	Director
Address :	188, 1^st Block, III Cross, II Main, Koramangala, Bangalore – 560034, India
Date of Birth/Age :	25.12.1943
Qualification :	B. Tec.
Date of Appointment :	30.05.1974
Name :	Mr. Shantilal Malik
Designation :	Director
Address :	No. 8, Anderson Road, Nawab Habibulla Avenue, Chennai – 600006
Date of Birth/Age :	03.06.1911
Date of Ceasing :	30.05.1974
Date of Appointment :	25.03.2005
Name :	Ms. Sushma Arora
Designation :	Director
Address :	A-31, No. 08, Palace Cross Road, Bangalore – 560034, Karnataka, India
Date of Birth/Age :	26.10.1946
Date of Ceasing :	30.05.1974
Date of Appointment :	25.03.2005
Name :	Mr. Siddharth Malik
Designation :	Executive Director
Address :	“Sai Kripa”, 188, 1^st Block, III Cross, II Main, Koramangala, Bangalore – 560034, India
Date of Birth/Age :	16.10.1974
Qualification :	B. Com., M. B. A.
Date of Appointment :	10.01.2002
Name :	Mr. Arjun Malik
Designation :	Director
Address :	“Sai Kripa”, 188, 1^st Block, III Cross, II Main, Koramangala, Bangalore – 560034, India
Date of Birth/Age :	02.02.1978
Qualification :	B. E.
Date of Appointment :	25.03.2005

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Shantilal Malik	50,800
Narinder Malik	87,228
Rakesh Arora	4,784
Sushma Arora	12,600
Sudesh Arora	10,200
Neena Malik	24,800
Ashok Malik	7,600
Siddarth Malik	44,000
Arjun Malik	54800
Narinder Malik and Others	88
C. Srinivas	1,000
Ariegcla Satyanarayan	1,000
V. Ramamurthy	250
K. G. Menon	250
Narinder Malik	600
Total	300,000

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Polyester Resins, Pigments, Paints, Thinners and Allied Products
Exports :
Countries :	Middle East
Imports :
Countries :	Holland and Sweden
Terms :
Selling :	L/C (60-90 days Credit)
Purchasing :	L/C

GENERAL INFORMATION

Suppliers :	Lantor BV, Holland Parabeam Industries, Holland Aplicator System AB, Sweden Abhishek, Bangalore Toshniwal, Bangalore Beacon, Bangalore NGEF Usha Armour
Customers :	Ashok Leyland Limited Fosroc Chemicals Limited Anderson Marine Private Limited Chemical Process Equipments Private Limited Concord Arai Private Limited
No. of Employees :	85
Bankers :	Indian Bank, Malleswaram Branch, Bangalore ICICI Bank, M. G. Road Branch, Bangalore Syndicate Bank, 204-205, North Block, Manipal Centre, Dicknson Road, Bangalore – 560042, Karnataka, India
Facilities :	--

Banking Relations :	Satisfactory
Auditors :
Name :	Kumbhat and Company Chartered Accountants
Address :	10, 6^th Cross, Victoria layout, Bangalore – 560047, Karnataka, India
Group Company :	Empee Corporation Private Limited Empee Trading Corporation

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
300,000	Equity Shares	Rs. 100/- each	Rs. 30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300,000	Equity Shares	Rs. 100/- each	Rs. 30.000 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		30.000	30.000	24.310
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		15.989	13.952	13.258
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		45.989	43.952	37.568
LOAN FUNDS
1] Secured Loans		91.911	57.972	60.826
2] Unsecured Loans		12.534	21.750	17.166
TOTAL BORROWING		104.445	79.722	77.992
DEFERRED TAX LIABILITIES		3.864	4.579	4.958
TOTAL		154.298	128.253	120.518
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		34.215	33.417	34.096
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.101	0.101	0.101
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	99.125	69.966	47.399
	Sundry Debtors	78.761	71.407	80.315
	Cash & Bank Balances	4.585	1.955	6.082
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	7.627	13.993	13.925
Total Current Assets		190.098	157.321	147.721
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	71.627	64.349	62.659
	Provisions
Total Current Liabilities		71.627	64.349	62.659
Net Current Assets		118.471	92.972	85.062
MISCELLANEOUS EXPENSES		1.511	1.763	1.259
TOTAL		154.298	128.253	120.518

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2004
Sales Turnover	189.269
Other Income
Total Income	189.269
Profit/(Loss) Before Tax	0.573
Provision for Taxation	0.045
Profit/(Loss) After Tax	0.528
Imports :
Total Imports	8.309
Expenditures :
Total Expenditure	188.696

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	NA	NA	0.28
Net Profit Margin (PBT/Sales)	(%)	NA	NA	0.30
Return on Total Assets (PBT/Total Assets}	(%)	NA	NA	0.31
Return on Investment (ROI) (PBT/Networth)		NA	NA	0.01
Debt Equity Ratio (Total Liability/Networth)		3.83	3.28	3.74
Current Ratio (Current Asset/Current Liability)		2.65	2.44	2.35

LOCAL AGENCY FURTHER INFORMATION

History:

Subject was incorporated on 30^th May, 1974 as a “Private Limited” than it became “Deemed Public Limited” w.e.f. July 1995. It was again changed to “Private Limited” w.e.f. 5^th February, 2001.

Bankers Charges Report as per Registry

Name of the company

NAPTHA RESINS & CHEMICALS PRIVATE LIMITED

Presented By

Syndicate Bank, IF Branch , Manipal Centre, Dicknson Road, Bangalore – 560042

1) Date and description of instrument creating the change

22.08.2005

Composite Hypothecation – Agreement

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 109.900 Millions

Facility	Limit Rs. In Millions
SOD	80.000
WCTL	4.900
ILC / FLC	25.000
Total	109.900

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 the goods, stocks, raw materials, finished goods, unfinished goods, movable property of the any kind, plant, machinery, fixture, implements, fittings and other installations, furniture, vehicles, computers and all other articles and things both present and future, whether installed or not, whether lying loose or in cases, at site or in transit or which may at any time security be installed or lying loose or in cases at site or in transit or which may at any time hereinafter during the continuance of this security the installed or lying loose or in cases or being in or upon which now or hereinafter time to time during this security shall be brought into stores or be in or about the Borrower’s premises.

Raw Materials Work in progress and Finished goods

Existing Machineries numbering 1 to 72 as indicated in Annexure. Storages Tank, Pollution Control Equipments, Generators Transformers, Panels and cables, Misc, Plant and Machinery.

Ass stored at # 491 / 492, 4^th Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India

Book debts existing in the books of accounts of the company both present and future.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest @ 11 % p.a. Compounded Monthly

Margin

25 % on SOD and

10 % on ILC / FLC

Repayment :

The WCTL is repayable in 22 installments. The first ten installment are payable at the rate of Rs. 0.259 Millions and the subsequent 12 installments are payable at the rate of Rs. 0.193 Millions each and the entire WCTL shall be closed on or before 31.03.2007. the interest shall be paid as and when due on monthly basis.

5) Name and Address and description of the person entitled to the charge.

Syndicate Bank

Industrial Finance Branch

Manipal Centre

Dicknson Road

Bangalore – 560042

6) Date and brief description of instrument modifying the charge

24.11.2005

Confirmation of Deposit of Title Deeds.

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.

No enhancement in limits only additional security provided by way of deposit of title deeds pertaining to the following properties

Property bearing the protion of Corporation No. 13 situated at Sampangi Ramaswamy Road Corporation division No. 72, Bangalore and bounded on the East By : Millers Tankbund Road measuring on that side 178 feet, West by Portion of property No. 13 retained by the Vendor measuring on that side 174 feet, North By : Private property measuring on that side 100 feet 9 inches and South by : Sampangi Ramaswamy Road Corporation division No. 72, Bangalore

Premises bearing no 510presently bearing BMP Khatha No. 13/63 in 3^rd Floor of Multi stored building known as “West Minister” measuring 1715 sq. ft. together with 1715/49000^th undivided share right title and interest in item no: 1 property works out to 699.72 sq.ft. and share in plinth area of the old building works out to 34.3 sq. ft.

Property bearing plot no : 491 situated at Peenya, 4^th Phase, Industrial Area, formed in Sy. No. 45 of Nallakadaranahally Village, Yeshwanthpur, Hobli, Bangalore North Taluk, presently within the limits of Dasarahalli CMC, containing by adm. 16202 sq. mtrs or thereabouts, Bounded By :

East by : Private lands / Part of Plot No : 478-A

West by : Plot No : 490 G to L

North by : H. T. Line

South by : 60.00 wide road and plot no : 478-A.

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.44.44
UK Pound	1	Rs.85.89
Euro	1	Rs.58.54

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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