MIRA INFORM REPORT

Report Date :

10.04.2008

IDENTIFICATION DETAILS

Name :	MAHARASHTRA ALDEHYDES AND CHEMICALS LIMITED
Registered Office :	Chandramukhi Basement, Nariman Point, Mumbai, 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	13.05.1982
Com. Reg. No.:	027136
CIN No.: [Company Identification No.]	U24100MH1982PLC027136
TAN No.: [Tax Deduction & Collection Account No.]	MUMM20605E
PAN No.: [Permanent Account No.]	AAACM3766
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	Manufacturer and Exporter of D.E.P. 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 128124
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and reputed Company having Satisfactory track. Trade relations are fair. Financial Position is Satisfactory. Payments are usually correct and as per commitments. Nothing adverse reported. The concern can be considered has for normal business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Jayesh Shah
Designation :	Manager
Contact No.:	91-98670 15939

LOCATIONS

Registered Office :	Chandramukhi Basement, Nariman Point, Mumbai, 400021, Maharashtra, India.
Tel. No.:	91-22-2285 1316 / 6089 / 6090
Mobile No.:	91-98670 15940
Fax No.:	91-22-2285 0033 / 3752
E-Mail :	loil@laxmiorganic.co.in jayesh@laxmiorganic.co.in agl@dayalandlohia.com
Website :	http://www.laxmiorganic.co.in
Area :	1500 Sq.ft.
Location :	Owned
Factory :	A-17, M.I.D.C. , Mahada, Raigarh
Area :	27000 Sq. ft.
Location :	Leased

DIRECTORS

Name :	Mr. Rajeev Goenka
Designation :	Director
Address :	242-C, Grand Paradi Apartments, A. K. Marg, Mumbai, Kemps Corner, 400036, Maharashtra, India.
Date of Birth/Age :	04/08/1967
Qualification :	M.B.A.
Date of Appointment :	09.03.2002
Name :	Mr. Vasudeo Goenka
Designation :	Director
Address :	242-C, Grand Paradi Apartments, A. K. Marg, Mumbai, Kemps Corner, 400036, Maharashtra, India.
Date of Birth/Age :	14/01/1940
Qualification :	B.com
Date of Appointment :	09.03.2002
Name :	Mr. Ravi Vasudeo Goenka
Designation :	Director
Address :	242-C, Grand Paradi Apartments, A. K. Marg, Mumbai, Kemps Corner, 400036, Maharashtra, India.
Date of Birth/Age :	11/02/1962
Qualification :	Engineer
Date of Appointment :	09.03.2002
Name :	Mr. Sunil Gupta
Designation :	Director
Address :	242-C, Grand Paradi Apartments, A. K. Marg, Mumbai, Kemps Corner, 400036, Maharashtra, India.
Date of Birth/Age :	43 Years
Qualification :	B.com
Date of Appointment :	23.03.1993

KEY EXECUTIVES

Name :	Mr. Anil Lohia
Designation :	Director
Address :	404 A, Meghdoot, New D.P. Road, Lokhandwala Complex, Andheri (West), Mumbai, 400053, Maharashtra, India.
Date of Birth/Age :	07/04/1956
Date of Appointment :	05.01.1994
Name :	Mrs. Aditi Rajeev Goenka
Designation :	Director
Address :	242-C, Grand Paradi Apartments, A. K. Marg, Mumbai, Kemps Corner, 400036, Maharashtra, India.
Date of Birth/Age :	26/08/1970
Date of Appointment :	15.05.2007
Name :	Mr. Vishwas Kunte
Designation :	Director
Address :	403, Purshottam Niwas, Plot No. 6, Park Road, Vile Parle (East)
Date of Birth/Age :	27/01/1961
Date of Appointment :	09.03.2002
Name :	Mr. Kailash Chandra Jhavar
Designation :	Director
Address :	501, Samadhan, Chandavarkar Road Extn., Vazira Naka, Borivali (West), Mumbai, 400091, Maharashtra, India.
Date of Birth/Age :	13/01/1954
Date of Appointment :	09.03.2002

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 29.09.2003

Names of Shareholders	No. of Shares
Mr. Radhe Shayam Goenka	50
Mr. Nand Kishore Goenka	50
Mr. Vasudeo Goenka	3500
Mr. Ram Avtar Goenka	50
Mr. Desh Varma	50
Mr. Madan Mohan Lohia	500
Mr. Rajeev Goenka	6500
Mr. V. D. Goenka HUF	87000
Miss Niharika Goenka	9000
Mr. Ravi Goenka HUF	105950
M/s Brady Investment Private limited	79250
M/s Laxmi Capital Service Private Limited	166500
Mr. Ravi Goenka	10000
M/s Tirupati Trading Company	5000
Mrs. Avantika Goenka	1250
Mr. Sunil Gupta	25
Mr. Kailash C. Jhavar	25
Mr. Anil Lohia	25
Mr. Vishwas Kunte	25

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of D.E.P. Products.
Products :	v Organic Acids v their anhydrides and acid halides v Esters and Salts of Organic acids. v Raw Materials for Pharmaceuticals v Chemicals for Cosmetics v Perfumery v Detergent and Soaps v Aroma Compounds v Essential Oils v Tri Methyl Hydro Quinone v Di Ethyl Oxalate v Laboratory Rea Gents
Exports :
Countries :	v Singapore v United States v United Kingdom v Italy v Spain v Talwan v Indonesia v Malaysia v Vietnam v Sri Lanka v Bangladesh v Australia v New Zealand v United Arab Emirates v Thailand v Europe v Far East v Middle East and South East Asia v Dubai
Terms :
Selling :	Credit (30 days)
Purchasing :	Credit (60 days)

GENERAL INFORMATION

Customers :	v Wholesalers v Retailers v End Users
No. of Employees :	50 Employees
Bankers :	State Bank of India, Industrial Finance Branch,
	Cuffe Parade, World Trade Centre, Mumbai, 400005, Maharashtra, India

Banking Relations :	Satisfactory
Auditors :
Name :	Parekh Shah and Lodha, Chartered Accountants
Address :	118, Andheri Industrial Estate, Veera Desai Road, Andheri (West), Mumbai, 400053, Maharashtra, India
Associates/Subsidiaries :	Laxmi Organic Industries Limited

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
494750	Equity Shares	Rs. 10/- Each	Rs. 4.497 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		4.947	4.947	4.947
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.084	25.252	24.965
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		32.031	30.199	29.912
LOAN FUNDS
1] Secured Loans		30.818	38.643	14.379
2] Unsecured Loans		1.989	1.926	2.066
TOTAL BORROWING		32.807	40.569	16.445
DEFERRED TAX LIABILITIES		4.245	4.707	5.231
TOTAL		69.083	75.475	51.588
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		35.939	38.144	33.419
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.569	15.631	8.672
	Sundry Debtors	24.569	24.409	10.330
	Cash & Bank Balances	0.325	0.281	0.256
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	7.698	6.453	5.530
Total Current Assets		46.161	46.774	24.788
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	12.565	9.393	5.469
	Provisions	0.452	0.050	1.150
Total Current Liabilities		13.017	9.443	6.619
Net Current Assets		33.144	37.331	18.169
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		69.083	75.475	51.588

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		216.158	130.983	108.544
Other Income		3.165	1.473	2.044
Total Income		219.323	132.456	110.588
Profit/(Loss) Before Tax		2.982	0.577	2.514
Provision for Taxation		1.149	0.000	1.199
Profit/(Loss) After Tax		1.833	0.577	1.315
Earnings in Foreign Currency :
	Other Earnings	0.000	0.000	20.864
Total Earnings		0.000	0.000	20.864
Expenditures :
	Raw Material Consumed	167.333	98.768	73.206
	Consumption of stores and spares parts	0.000	0.000	13.042
	Salaries, Wages, Bonus, etc.	3.502	2.672	2.767
	Payment to Auditors	0.030	0.025	0.021
	Interest	5.528	3.271	1.630
	Insurance Expenses	0.183	0.077	0.178
	Power & Fuel	3.992	5.041	1.997
	Depreciation & Amortization	5.145	4.344	4.116
	Other Expenditure	30.628	17.681	10.452
	Increase/(Decrease) in Finished Goods	0.000	0.000	0.665
Total Expenditure		216.341	131.879	108.074

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	0.84	0.44	1.19
Net Profit Margin (PBT/Sales)	(%)	1.38	0.44	2.32
Return on Total Assets (PBT/Total Assets}	(%)	1.38	0.44	2.27
Return on Investment (ROI) (PBT/Networth)		0.09	0.01	0.08
Debt Equity Ratio (Total Liability/Networth)		0.41	0.31	0.22
Current Ratio (Current Asset/Current Liability)		3.55	4.95	3.74

LOCAL AGENCY FURTHER INFORMATION

Trade References

v N. Rangrao and Sons (Mysore)

v Charkit Chemicals Corp[oration Limited (USA)

v Mysore Deep (Hyderabad)

Website Details Attached:

Group Companies 

Maharashtra Aldehydes and Chemicals Limited (MACL)

Subject is the subsidiary company of LOIL and is located in MIDC Mahad. MACL makes pharmaceutical intermediates and perfumery chemicals. Its product range includes trimethyl hydroquinone (TMHQ) and lichrosolv grade solvents such as methanol, acetonitrile, hexane and ethyl acetate. The company has a toll manufacturing agreement with Merck Limited.

MACL started manufacturing of DEP with 16% to 18% of Indian market.

Incorporated in 1982, the company later diversified into other ethyl alcohol products like diethyl phthalate and ethyl benzoate to strengthen its market position and cater to the needs of the perfumery and plastics industry in India and abroad.

MACL specialises in reactions like sulfonation, oxidation, reduction, nitration and the process of distillation. It has world-class production facilities and an R&D laboratory equipped with HPLC and other equipment to adhere to the highest standards of quality and efficiency. The company also has adequate handling and warehousing facilities and explosive licenses required for the storage of chemicals.

 Among the company’s plant and equipment are glass line reactors, SS 304 reactors, SS 316 mixing vessels, SS 316 receivers, glass feeders, glass condensers, SS 316 condensers, SS 316 centrifuges, SS 316 fluid bed dryers etc.

MACL has excellent infrastructure and technical backup facilities and is looking for new toll manufacturing opportunities. They are also willing to consider investing the resources in a mutually beneficial partnership with leading companies in India and abroad.

Zenith Distributors

Subject deals with paper products and has offices and warehouses in Mumbai, Ahmedabad, Baroda, Surat and Pune. It has been the official wholesale distributor for C.K. Birla Group companies Orient Paper Mills and Sirpur Paper Mills for over three decades, and currently markets more than 20,000 TPA of products in Western India.

Alumi Profiles

Subject is a pioneer in the manufacture of punched and expanded aluminium meshes in India, and markets its products under the brand name Alumigrille.

Alumigrille has a 35% share of the market for aluminium meshes in India, and is marketed through a chain of 120 dealers countrywide.

Wintech Systems

Subject is an exporter of writing and printing paper. The company exported 3,000 MT of paper to West Africa last year, and recently exported 1,200 tonnes of plain paper to Egypt.

The company also imported about 1,500 tonnes of synthetic alcohol into India from Brazil.

Ecole Mondiale

Subject is a school in Mumbai that provides international-quality education to its students. The school is located in the elite suburb of Juhu and offers curricula that include International Baccalaureate (IB) and the International General Certificate of Secondary Education (IGCSE) of the University of Cambridge.

The co-educational school – which offers programmes from nursery to Grade 12 – is progressive, forward-thinking and child-centred, using an integrated, interactive approach. Facilities include an auditorium, two multipurpose halls, swimming pool, gym, five state-of-the-art science laboratories, two libraries etc. Ecole Mondiale is associate member of CIS/ECIS, a body recognised the world over.

Visit the Ecole Mondiale web site for more details.

Shree Tirupati Trading Company

Subject is an exporter of fermentation grade Ethyl Alcohol. The company has also exported more than 10 thousand tones of ethanol to Asian and European ports in the last 2 to 3 years

History

Established in 1982, Maharashtra Aldehydes & Chemicals Ltd. (MACL) is a reliable partner to companies in the Aromatic & Specialty Chemical Industries. MACL is a company built on enduring relationships. They are committed to deliver value as a complementary partner. By delivering on this commitment, they have earned the respect & recognition of leading companies around the world.

In line with the expressed mission, MACL is backed by a world class manufacturing facility, highly functional R&D department & stringent quality assurance systems. The products, dominantly heterocyclic compounds, are manufactured in the state of the art facility, multipurpose in character, located at Mahad, 175kms from Mumbai.

MACL is currently manufacturing Diethyl Phthalate (DEP) for the Aroma industry. The Company is in the process of introducing several Acetaldehyde based value added products to meet the growing demand of the Aroma industry.

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 :

The 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.

The 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. 39.94
UK Pound	1	Rs. 78.81
Euro	1	Rs. 63.05

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	NO
--AFFILIATION	YES/NO	NO
--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.	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, they 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