MIRA INFORM REPORT

Report Date :

26.04.2008

IDENTIFICATION DETAILS

Correct Name :	ESKAY ENGICHEM PRIVATE LIMITED
Registered Office :	Plot No. - 3A, D-1, MIDC, Chinchwad, Pune - 411 019, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	13.07.2005
Com. Reg. No.:	21006
CIN No.: [Company Identification No.]	U29299PN2005PTC021006
TAN No.: [Tax Deduction & Collection Account No.]	PNEE01769F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Bulk Drugs, Pharmaceutical and Speciality Chemicals.

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 2094388
	Status :			Satisfactory
	Payment Behaviour :			Regular
	Litigation :			Clear
	Comments :			Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced 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. Management declined financial and business details recent interactions with them.

LOCATIONS

Registered Office/ Factory :	Plot No.-3A, D-1, MIDC, Chinchwad, Pune – 411 019, Maharashtra, India
Tel. No.:	91-20-27474519 /27479665 / 27479665 / 27474519
Mobile No.:	91-9371020676
E-Mail :	mailto:eskayindustries@vsnl.com cspunde@hotmail.com eskayindustries@vsnl.com
Website :	http://www.indiamart.com/eskayengichem http://www.eskayengichem.com
Area :	(10000 Sq.fts.) Built – up Area / Plot area + 70000 sq. fts.
Location :	Leased (Independent Building)

DIRECTORS

Name :	Mr. Deepak S. Munot
Designation :	Director
Date of Birth/Age :	46 years
Qualification :	Post Graduate
Experience :	24 years
Name :	Mr. Dinesh Munot
Designation :	Director
Date of Birth/Age :	39 years
Qualification :	Graduate
Experience :	16 years

BUSINESS DETAILS

Line of Business :	Manufacturer and Supplier of Bulk Drugs, Pharmaceutical and Speciality Chemicals.
Products :	Crown Ethers · 18-Crown-6 [17455-13-9] · 15-Crown -5 [33100-27-5] Bulk Drugs, Pharmaceutical Intermediates & Specialty Chemicals · 2-Phenoxyisobutyric Acid [943-45-3] · Clofibric Acid [882-09-7] · Fenofibric Acid [42017-89-0] · 2-Indolinone i.e. Oxindole [59-48-3] · Inorganic Acids and Anhydrides · Phenols, Polyphenols, Ethers, Aldehydes, Ketones, Quinones · Row Materials for Pharmaceuticals · Phthalide [87-41-2] · 2-Indolinone i.e. Oxindole [59-48-3] · 4-(Dimethylamino)benzophenone [530-44-9] · 1,2,3-Trichloro-5-nitrobenzene [20098-48-0] · 6-Bromo-2-naphthol [15231-91-1] · 2-Propoxybenzoic acid [2100-31-4] · 2-(4-Aminophenyl)ethylamine [13472-00-9] · 4-(2-Aminoethyl)morpholine [2038-03-1] · 4-(3-Aminopropyl)morpholine [123-00-2] · 2-Hydroxybenzimidazole [615-16-7] · 5-Chloro-2-benzimidazolone [2034-23-3] · 2-Mercaptobenzoxazole [2382-96-9] · 2-(Methylthio)benzoxazole [13673-62-6] · 4-(Benzyloxy)phenylacetic acid [6547-53-1] · Glycoluril [496-48-8] · Substituted Benzoic acids & other products by Air-Oxidation
Exports :
Products :	Bulk Drugs, Pharmaceutical Intermediates and Speciality Chemicals
Countries :	Japan, Europe, South-East Asia (Taiwan)
Import :
Countries :	China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Ø AMB And Company

Ø Amit P Punde

Ø Anand Industries

Ø Bora And Company

Ø BSNL

Ø Chemo Fab Industries

Ø Chemo Test Laboratories

Ø Deore Transport Service

Ø Dhananjay Traders

Ø Efficient Industrial Services

Ø Enopeck Security Seals (India)

Ø Esteem Enginnering Works

Ø Excel Engineering And Consultant

Ø Fine Lasercut Private Limited

Ø Fit Fast Engineering

Ø Geo Remedies

Ø H N Corporation

Ø Hari Trading Company

Ø Industrial Coating

Ø Jyoti Heat – Treat Industries

Ø Konark Technocomp Private Limited

Ø Krypton Powder Paints Private Limited

Ø Kunusha Steels

Ø Lakshmi Enterprises

Ø M M Traders

Ø M K Die Works

Ø Marpol Private Limited

Ø Mittal Precision Steel Tubes Private Limited

Ø New Star Chemicals

Ø Nutraplus Products (India) Limited

Ø Perfect Courier Services

Ø Phoenix Enterprises

Ø Precise Springs

Ø Pure Filter Systems

Ø Ravi Corporation

Ø Renuka Enterprises

Ø Rohit Engineering Works

Ø Roopali Coating

Ø Sai – Tech Scientific

Ø Sanjivani Enterprises

Ø Sankalp Steeltech Corp Private Limited

Ø Sapana Galvanizers

Ø Sharada Industries

Ø Shree Ajinkya Electrical Company

Ø Shree Sadguru Entp

Ø Shripad Lubricants

Ø Sigma Gases

Ø Star Delt Engineers

Ø Suresh Tukaram Gavhane

Ø Suttatti Enpt Private Limited

Ø SVS Chemical Corporation

Ø The Printing People

Ø TUV India Limited

Ø Venus Fabco

Ø Vishwakarma Engineering Works

Ø Yashwant Engineers

Customers :

Ø S Nihar Exports

Ø Lucy Switchgear

Ø Suzlon Energy Limited

Ø Suzlon Windfarm Services Private Limited, Tamilnadu

Ø Suzlon Windfarm Services Private Limited, Satara

Ø Alpha Foam Limited (Chakan Division)

Ø Automag India Private Limited Chakan Unit

Ø D Maniar And Brothers

Ø Force Motors Limited

Ø Force Motors Limited (Pithampur Unit)

Ø Thermax Limited – Chemical Division

Ø Sanket Pharmaceuticals Limited

Ø Panchsheel Organica Limited

Ø Deepak Nitrite Limited

Ø Hildose

No. of Employees :

20

Bankers :

Ø Bank of Maharashtra, Navi Peth, Pune-411030, Maharashtra, India

Ø Citibank N.A., Pune, Maharashtra, India

Ø Central Bank of India

Facilities:

SECURED LOANS

Particular	31.03.2006 (Rs. In Millions)
Bank of Maharashtra	1.112

UNSECURED LOAN

Particulars	31.03.2006 (Rs. In Millions)
Deepak Munot (HUF)	0.500
Dinesh Munot HUF)	1.448
Master Keyur Deepak Munot	0.340
Master Sanat Dinesh Munot	0.491
Mr. Deepak Munot	0.016
Mr. Deepak Munot (Rent)	0.042
Mr. Dinesh Munot (Rent)	0.042
Mr. Dinesh Munot	3.190
Mrs. Manju Deepak Munot	1.599
Mrs. Vaishali Dinesh Munot	0.892
Miss. Urvi Deepak Munot	0.171
Mr. Ramesh Firodiya	0.019
S L Munot (HUF)	1.146
Shree Investment	(0.009)
Total	9.805

Banking Relations :

Satisfactory

Auditors :

AMB & Company

Chartered Accountants

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		0.100
2] Share Application Money		0.000
3] Reserves & Surplus		0.423
4] (Accumulated Losses)		0.000
NETWORTH		0.523
LOAN FUNDS
1] Secured Loans		1.112
2] Unsecured Loans		9.805
TOTAL BORROWING		10.917
DEFERRED TAX LIABILITIES		0.000
TOTAL		11.441
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.723
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.097
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.530
	Sundry Debtors	5.261
	Cash & Bank Balances	1.869
	Other Current Assets	0.553
	Loans & Advances	0.866
Total Current Assets		13.081
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities
	Provisions	4.492
Total Current Liabilities		4.492
Net Current Assets		8.589
MISCELLANEOUS EXPENSES		0.030
TOTAL		11.441

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006
Sales Turnover		22.090
Other Income		0.094
Total Income		22.185
Profit/(Loss) Before Tax		0.573
Provision for Taxation		0.150
Profit/(Loss) After Tax		0.423
Expenditures :
	Other administrative expenses	2.301
	Commission on sale	0.000
	Bank interest	0.000
	Salary to others	0.000
	Interest to other	0.000
	Depreciation	0.203
	Purchases	11.917
	Direct expenses	4.908
	Other manufacturing expenses	2.280
Total Expenditure		21.611

KEY RATIOS

PARTICULARS		31.03.2006
PAT / Total Income	(%)	1.90
Net Profit Margin (PBT/Sales)	(%)	2.59
Return on Total Assets (PBT/Total Assets}	(%)	3.62
Return on Investment (ROI) (PBT/Networth)		1.09
Debt Equity Ratio (Total Liability/Networth)		29.46
Current Ratio (Current Asset/Current Liability)		2.29

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Originally started as Eskay Industries in year 1973 as a Proprietory Concern of Mr. S. L. Munot. Converted into a Private Limited Company on 13.07.2005 having Company Registration No. 021006.

TRADE REFERENCES – LOCAL:

· Dishman Pharmaceuticals

· Deepak Nitrite Limited, Mumbai

FIXED ASSETS:

Ø Plant and machinery

Ø Electric installation

Ø Building

Ø Vehicles

Ø Furniture and fixtures

Ø Computer

OTHER INFORMATION:

ESKAY INDUSTRIES (PROP. MR. DEEPAK S. MUNOT)

ABRIDGED BALANCE SHEET

[Rs. In millions]

SOURCES OF FUNDS		28.09.2005
SHAREHOLDERS FUNDS
1] Share Capital		0.000
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		0.000
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		8.890
TOTAL BORROWING		8.890
DEFERRED TAX LIABILITIES		0.000
TOTAL		8.890
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.242
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	4.006
	Cash & Bank Balances	0.838
	Other Current Assets	0.507
	Loans & Advances	4.558
Total Current Assets		9.909
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities
	Provisions	3.262
Total Current Liabilities		3.262
Net Current Assets		6.647
MISCELLANEOUS EXPENSES		0.000
TOTAL		8.890

PROFIT & LOSS ACCOUNT

[Rs. In millions]

PARTICULARS		28.09.2005
Sales Turnover		17.192
Other Income		0.000
Total Income		17.192
Profit/(Loss) Before Tax		1.180
Provision for Taxation		0.000
Profit/(Loss) After Tax		1.180
Expenditures :
	Audit and tax consultation fees	0.012
	Books and periodicals	0.005
	Advertisement	0.002
	Bank charges	0.012
	Telecommunication expenses	0.070
	Freight outward	2.150
	Courier expenses	0.003
	Entertainment expenses	0.010
	Legal and professional fees	0.020
	Bad debts	0.000
	Repairs and maintenance	0.132
	Other administrative expenses	0.131
	Commission on sale	0.316
	Bank interest	0.026
	Salary to others	0.333
	Interest to other	0.592
	Depreciation	0.182
Total Expenditure		4.178

KEY RATIOS

PARTICULARS		28.09.2005
PAT / Total Income	(%)	6.86
Net Profit Margin (PBT/Sales)	(%)	6.86
Return on Total Assets (PBT/Total Assets}	(%)	9.71
Return on Investment (ROI) (PBT/Networth)		0.00
Debt Equity Ratio (Total Liability/Networth)		0.00
Current Ratio (Current Asset/Current Liability)		3.03

WEBSITE DETAILS:

A professionally managed company, subject is a well known speciality chemicals manufacturers and suppliers of Pharmaceutical Chemicals, Bulk Drugs, Pharmaceutical Intermediates and Specialty Chemicals.

Company Profile

Subject is a leading manufacturer and supplier of Bulk Drugs, Pharmaceutical Chemicals and Specialty Chemicals.

With rudimentary understanding of the needs and wants of their clients, they offer products that suit both their requirements and budget. A thorough analysis of their clients' needs and provision of customized services sets them apart from their competitors. Their principal aim is to not only meet but exceed their clients' expectations through their expertise.

They have never compromised on quality and have successfully achieved a high level of customer satisfaction resulting in long-lasting relations. They have made an indelible imprint on the minds of their clients all over the country by offering pro-active services.

Strengths

Excellence

Quality consistency and excellent after sales service in best possible way their main concern. All the raw materials are inspected and regular checks are undertaken on the products. Their team of experts maintains a strict vigil on the manufacturing process to ensure that all the products are without any defects.

Infrastructure

The credit for their phenomenal growth goes to their sound infrastructure that is equipped with state-of-the-production unit. Their dedicated and diligent workforce helps them abreast with the newer trends in market. They possess requisite technology and hi-tech machines for yielding excellent results. Their team of chemists and professionals are engaged in coming out with high quality chemicals.

Laboratory

They possess a state-of-the-art laboratory. Their laboratories are equipped with sophisticated analytical and performance testing equipment to ensure their products meet the performance requirements needed by their customers. Considerable research is carried out, both in the development of existing products as well as into new chemical entities and products. Their scientists are pivotal in bringing forth authentic and pure chemicals.

Customer Satisfaction

They have maintained long lasting relations with their clients by offering them customized products of international standard. Their persistent efforts have earned them a loyal clientele across India and overseas.

Clients

They have been exporting to world's best markets and have created a worldwide presence. They have won the trust and confidence of their customers because of their customer friendly services and their ability to fulfil all their commitments on time.

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.40.18
UK Pound	1	Rs.79.25
Euro	1	Rs.62.90

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	YES
--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