MIRA INFORM REPORT

Report Date :

15.11.2007

IDENTIFICATION DETAILS

Name :	INDIAN OXIDES AND CHEMICALS LIMITED
Registered Office :	Liberty Building, Sir Vithaldas Thackersey Marg, Mumbai – 400 020, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	07.06.1989
Com. Reg. No.:	11-52085
CIN No.: [Company Identification No.]	U24300MH1989PLC052085
TAN No.: (Tax Deduction & Collection Account No.)	PNEI04304G
PAN No.: (Permanent Account No.)	AAACU0797M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Masterbatch and Antimony Trioxide.

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 180000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part of Neterwala Group, a medium size industrial house. The Group which was not faring well has improved its performances. Trade relations are fair. Payments are reported as slow and delayed by average 30 days. The company can be considered normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Liberty Building, Sir Vithaldas Thackersey Marg, Mumbai – 400 020, Maharashtra, India
Tel. No.:	91-22-22066231 / 22015895 / 22017130 / 6017
Fax No.:	91-22-22082113 / 22096976
E-Mail :	daiichi@bom8.vsnl.net.in, lvguniabex@vsnl.net.in iocl@pn2.vsnl.net.in
Factory :	Plot No. 11, F-II Block, MIDC, Pimpri, Pune – 411 018, Maharashtra, India
Tel. No.:	91-20-27475461 / 27470110/27477873
Fax No.:	91-20-27470110
E-Mail :	iocl@pn2.vsnl.net.in
Website :	http://www.iocl.india.com

DIRECTORS

Name	Mr. Dhunjishaw Maneckji Neterwala
Designation	Chairman
Address	16D, 1L, Palazza Little Gibbs Road, Malabar Hill, Mumbai – 400 006
Date of Birth	11.10.1919
Date of Appointment	07.06.1989
Election Commission Identity Card No. :	MT/04/024/045842
Name	Mr. Feroze Dhunjishaw Neterwala
Designation	Director
Address	16D, 1L, Palazza Little Gibbs Road, Malabar Hill, Mumbai – 400 006
Date of Birth	14.05.1952
Date of Appointment	07.06.1989
Election Commission Identity Card No. :	MT/04/024/042290
Name	Mr. Dinshaw Shapoorji Anklesaria
Designation	Director
Address	372 - A/1-2, North Main Road, Koregaon Park, Pune – 411 001, Maharashtra
Date of Birth	27.06.1932
Date of Appointment	07.06.1989
Name	Mrs. Shernaz Firoze Vakil
Designation	Director
Address	Flat 301, Shahiana, 67, E & H, Walkeshwar Road, Mumbai – 400 006
Date of Birth	16.06.1950
Date of Appointment	07.06.1989
Election Commission Identity Card No. :	MT/04/019/261866
Name	Mr. Homi Kaikhushru Bilpodiwala
Designation	Director
Address	6C, Crystal, Altamount Road, Mumbai – 400 026
Date of Birth	05.11.1928
Date of Appointment	25.10.1990
Election Commission Identity Card No. :	MT/04/024/252331
Name	Mr. Kavas Dara Patel
Designation	Director
Address	C-33, River Nest, 311, North Main Road, Koregaon Park, Pune – 411 001, Maharashtra
Date of Birth	02.02.1947
Date of Appointment	27.06.1997
Name	Mr. Hendrick Joseph Berghmans
Designation	Director
Name	Mr. Friedrick Wilhelm Hempel
Designation	Director
Name	Mr. Richard Probert Pearson
Designation	Director

KEY EXECUTIVES

Name :	Mr. H. J. Gazdar
Designation :	President

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	Percentage of holding
Bodies Corporate	59.99
Directors or relatives of directors	40.01
Total	100.00

Names of Shareholders	No. of Shares
Mr. Dhunjishaw Maneckji Neterwala	100
Mr. Feroze Dhunjishaw Neterwala	216000
Universal Ferro and Allied Chemicals Limited	1295800
Ms. Perin Dhunjishaw Neterwala	216000
Mrs. Shernaz Firoze Vakil	216000
Ms. Perin Dhunjishaw Neterwala / Mrs. Ms. Shernaz Firoze Vakil	216000

BUSINESS DETAILS

Line of Business :	Manufacturer of Masterbatch and Antimony Trioxide.
Products :	Product Description Item Code No. Antimony Trioxide - 2825.8000 Master Batch - 3902.9000

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Antimony Trioxide	Mts.	N.A.	1000	646.34
Antimony Compounds and Blends	Mts.	N.A.	0	11.44
Master Batch Products & Compounds	Mts.	N.A.	1200	52.68

GENERAL INFORMATION

Suppliers :

* Tushavi Polysacks

* General Pharmaceuticals Limited

* Agarwao Ispat Udyog

No. of Employees :

Around 50

Bankers :

The Zoroastrian Co-operative Bank Limited, Pune Branch, Modern House, 634, Sachapir Street, Pune – 411 001, Maharashtra

State Bank of India

Industrial Finance Branch, Pimpri, Pune, Maharashtra

Facilities :

Secured Loans

(Rs. In millions)

	31.03.2005
Borrowings from Banks n Term Loans n Cash Credit and Packing Credit Facilities	-- 21.457

Unsecured Loans

(Rs. In millions)

	31.03.2005
From Chemical and Ferro Alloys Private Limited	3.000

Banking Relations :	Satisfactory
Auditors :
Name :	Jagtiani and Naik Chartered Accountants
Address :	12-13, Esplanade, 3^rd Floor, 3, Amrit Keshav Nayak Marg, Fort, Mumbai-400001, Maharashtra, India
Ultimate Holding Company :	Chemical Ferro & Allied Chemicals Private Limited
Associates :	Dai Ichi Karkaria Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity shares	Rs. 10/- each	Rs. 30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2160000	Equity shares	Rs. 10/- each	Rs. 21.600 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital	21.600	21.600	21.600
2] Reserves & Surplus	22.759	14.493	11.723
NETWORTH	44.359	36.093	33.323
LOAN FUNDS
1] Secured Loans	32.441	20.299	21.456
2] Unsecured Loans	39.596	12.691	3.000
TOTAL BORROWING	72.037	32.990	24.456
DEFERRED TAX LIABILITIES	4.145	0.000	4.108
TOTAL	120.541	69.083	61.887
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	22.045	23.721	25.726
Capital work-in-progress	0.000	0.000	0.000
INVESTMENTS	0.100	0.100	0.100
CURRENT ASSETS, LOANS & ADVANCES
Inventories	41.474	20.568	21.634
Sundry Debtors	50.645	40.256	31.720
Cash & Bank Balances	34.973	18.568	11.610
Other Current Assets	0.514	0.199	0.915
Loans & Advances	9.337	8.525	4.669
Total Assets	136.943	88.116	70.548
Less: CURRENT LIABILITIES & PROVISIONS
Current Liabilities	34.647	31.460	28.275
Provisions	3.900	11.394	6.212
Total Current Liabilities	38.547	42.854	34.487
Net Current Assets	98.396	45.262	36.061
TOTAL	120.541	69.083	61.887

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		273.550	183.882	138.263
Other Income		4.471	3.226	2.526
Total Income		278.021	187.108	140.789
Profit/(Loss) Before Tax		13.046	10.145	8.781
Provision for Taxation		0.000	3.682	3.081
Profit/(Loss) After Tax		13.046	6.463	5.700
Earnings in Foreign Currency :
	Export Earnings	NA	NA	34.574
	Commission Earnings	NA	NA	1.147
	Other Earnings	NA	NA	0.990
Total Earnings		NA	NA	36.711
Imports :
	Raw Materials	NA	NA	77.356
	Stores & Spares	NA	NA	1.585
	Capital Goods	NA	NA	10.151
Total Imports		NA	NA	89.092
Expenditures :
	Raw Material Consumed	175.581	127.783	98.017
	Purchases made for re-sale	50.114	17.642	14.945
	Consumption of Stores and Spare Parts	1.833	3.078	0.000
	Increase/(Decrease) in Finished Goods	3.692	1.124	NA
	Salaries, Wages, Bonus, etc.	8.920	7.881	6.583
	Payment to Auditors	0.162	0.157	0.140
	Interest	8.631	5.444	4.458
	Insurance Expenses	0.540	0.284	0.444
	Power & Fuel	2.618	2.468	1.955
	Depreciation & Amortization	2.354	2.331	NA
	Other Expenditure	10.528	8.948	5.464
Total Expenditure		264.973	177.14	132.008

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	4.69	3.45	4.05
Net Profit Margin (PBT/Sales)	(%)	4.77	5.42	6.24
Return on Total Assets (PBT/Total Assets}	(%)	8.20	9.07	9.12
Return on Investment (ROI) (PBT/Networth)		0.29	0.28	0.26
Debt Equity Ratio (Total Liability/Networth)		3.58	2.10	1.77
Current Ratio (Current Asset/Current Liability)		3.55	2.06	2.04

LOCAL AGENCY FURTHER INFORMATION

The company is engaged in manufacturing of masterbatch and antimony trioxide.

Subject also acts as traders of brominated compounds.

The company’s trademark is “IND-STAR”.

The company’s fixed assets of important value include leasehold land, buildings, plant & machinery, computers and furniture, fixtures and equipments, Research Capital Equipments, Technical Know how Fees and Motor Car.

Form 8 Particular for creation or modification of charges

Corporation identity number or foreign company registrations number of the company	U24300MH1989PLC052085
Name of the company	INDIAN OXIDES AND CHEMICALS LIMITED
Address	Liberty Building, Sir Vithaldas Thackersey Marg, Mumbai – 400 020, Maharashtra
This Form is for	Creation of charge
Type of Charges	Hypothecation
Particular of the charge holder	The Zoroastrian Co-operative Bank Limited Pune Branch, Modern House, 634, Sachapir Street, Pune Camp, Pune – 411001, Maharashtra, India E – mail : zoropune@yahoo.com
Nature or description of the instrument creating charge	Agreement Hypothecation of vehicles
Date of the instrument creating charge	17.04.2006
Amount Secure by the charge	Rs. 0.530 million
Brief of the principal terms and conditions and extent and operation of the charge	Loan of Rs. 0.530 million repayable in 36 equal monthly installments & shall carry interest @9.00% p.a. with monthly rests
Description of the property charge whether it is a charge on	Vehicles
Particulars of the Property charged	Maruti Esteem VXI BS – III / ICY BLUE METALLIC, ENGINE NO. : 282675; CHESIS NO. : MA3EBE41500455317; REG. NO. : MH – 14/AM - 7376

Name of the company	INDIAN OXIDES AND CHEMICALS LIMITED
Presented By	INDIAN OXIDES AND CHEMICALS LIMITED
1) Date and description of instrument creating the change	Hypothecation agreement dated 09.03.2004.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.50.000 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	Stocks and Book debts of Trading division pf the company.
4) Gist of the terms and conditions and extent and operation of the charge.	Margin 30% of Trading stocks 40% on trading book debts Under 90 days Interest @ 12.5% p.a.
5) Name and Address and description of the person entitled to the charge.	The Zeroastrian Co-operative Bank 634, Sechapir Street, Pune-411001, Maharashtra
6) Date and brief description of instrument modifying the charge	N.A.
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.	N.A.

Corporation identity number or foreign company registrations number of the company	U24300MH1989PLC052085
Name of the company	INDIAN OXIDES AND CHEMICALS LIMITED
Address	Liberty Building, Sir Vithaldas Thackersey Marg, Mumbai – 400 020, Maharashtra
This Form is for	Creation of charge
Type of Charges	Immovable Property
Particular of the charge holder	Axis Bank Limited Pimpri Chinchwad Branch, Pune – 411 019, Maharashtra, India
Nature or description of the instrument creating charge	Memorandum of entry of equitable mortgage by deposit of title deeds.
Date of the instrument creating charge	27.08.2007
Amount Secure by the charge	Rs. 90.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest: Term Loan – PLR 2%, presently 12% p.a. Cash Credit – PLR 2%, presently 12% p.a. Inland / Import L/C – PLR 2%, presently 12% p.a. Terms of Repayment: Term Loan – in 54 monthly installments of Rs. 0.463 millions each with first installments falling due to the end of 7^th month from the date of first disbursement. Cash Credit – 12 months, payable on demand Inland / Import L/C – maximum 90 days Margin: Term Loan – 15.25% of project cost Cash Credit – stocks 25% and book debts 30% Inland / Import L/C – 10% Extent and operation of the charge: Charge on borrower immovable property situated at Plot No. 9 and 11, Block F-II, MIDC, Pimpri, Pune – 411 018, Maharashtra, India, together with the buildings and structures constructed / to be constructed thereon and all borrowers plant and machinery attached to the earth or permanently fastened, by way of an equitable mortgage by deposit of title deeds to secure the repayment by borrower to the bank of aggregate of various credit facilities of Rs. 90.000 millions
Description of the property charge whether it is a charge on	--
Particulars of the Property charged	Plot No. 9 and 11, Block F-II, MIDC, Pimpri, Pune – 411 018, Maharashtra, India, together with the buildings and structures constructed / to be constructed thereon and all borrowers plant and machinery attached to the earth or permanently fastened.

Contingent Liabilities :

Bank Guarantees Outstanding – Rs. 0.070 millions (2004-2005)

Letter of Credit Outstanding – Rs. 35.852 millions (2004-2005)

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.39.35
UK Pound	1	Rs.80.52
Euro	1	Rs.57.56

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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		46

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