MIRA INFORM REPORT

Report Date :

17.01.2008

IDENTIFICATION DETAILS

Name :	MAYUR DYECHEM INTERMEDIATES LIMITED
Registered Office :	A -1/108, Phase – II, GIDC Vatva, Ahmedabad – 382 445, Gujarat
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	13.02.1989
Com. Reg. No.:	04-11882
CIN No.: [Company Identification No.]	U24231GJ1989PLC011882
TAN No.: [Tax Deduction & Collection Account No.]	AHMM01934C
PAN No.: [Permanent Account No.]	AABCM6908M
Legal Form :	Public Limited Liability Company
Line of Business :	Manufacturer and Exporters of Dyes and Dye Intermediates like H .Acid, Para Base, Benzoyl H. Acid, Acetyl H Acid, Koch Acid, Oxy Koch Acid, Mixed Cleves Acid, Dasa and Reactive Black 5 / Hfgr / N -150.

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Sick Unit
Payment Behaviour :	Slow
Litigation :	Unknown
Comments :	Subject is a sick unit. Its networth has been eroded. General financial position is weak. Payments are reported as slow and delayed. The company can be considered for any business dealings on fully safe and secured trade terms and conditions.

LOCATIONS

Registered Office :	A -1/108, Phase – II, GIDC Vatva, Ahmedabad – 382 445, Gujarat
Tel. No.:	91-79-25831476
Fax No.:	91-79-25834681
E-Mail :	mayurdyechem@sify.com
Factory :	265- Birya House, Bazargate Street, Fort, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-2656536 / 2657420
Fax No.:	91-22-2666030

DIRECTORS

Name :	Mr. Babubhai S Patel
Designation :	Director
Address :	43 A, Tulip Bunglow, Nr Drive in , Thaltej, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	19.01.1943
Date of Appointment :	13.02.1989
Directorship in other companies:	CIN of the Company: U55101GJ1991PTC015381 Name of the Company: Shrunkhala Investment Private Limited Designation: Director
Name :	Mr. Rajubhai Patel
Designation :	Whole time Director
Address :	12, Radhanpur Society Maninagar, Ahmedabad – 380 008, Gujarat, India
Date of Birth/Age :	10.05.1959
Date of Appointment :	01.08.2006
Directorship in other companies:	CIN of the Company: U55101GJ1991PTC015381 Name of the Company: Shrunkhala Investment Private Limited Designation: Director
Name :	Mr. Mayurbhai Babubhai Patel
Designation :	Director
Address :	43 A, Tulip Bunglow, Nr Drive in , Thaltej, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	29.01.1967
Date of Appointment :	13.08.1989
Name :	Mr. Rajeshkumar Somabhai Patel
Designation :	Director
Address :	12, Radhanpur Society Bhairavnath Road, Ahmedabad – 380 008, Gujarat, India
Date of Birth/Age :	10.05.1959
Date of Appointment :	13.02.1989

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Mr. Babubhai S Patel	22162720	30.82
Mr. Rajeshbhai S Patel	12000540	16.69
Mr. Mayurbhai B Patel	16515490	22.97
Mr. Rameshbhai S Patel	1000	0.00
Mr. Paresh bhai Patel	400	0.00
Mr. Harshad D Patel	200	0.00
M/s Shrunkhala Investments Limited	17226000	23.96
Mrs. Hetal M Patel	2000000	2.78
Mr. Dharmendra L Patel	1998820	2.78
Total	71905170	100.00

Equity Shares Breakup (Percentage of Total Equity):

Sr No.	Category	Percentage
1	Bodies Corporate	24.00
2	Directors or relative of directors	76.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporters of Dyes and Dye Intermediates like H .Acid, Para Base, Benzoyl H. Acid, Acetyl H Acid, Koch Acid, Oxy Koch Acid, Mixed Cleves Acid, Dasa and Reactive Black 5 / Hfgr / N -150.

PRODUCTION STATUS as on 31.03.2005:-

Particulars	Unit	Installed Capacity	Actual Production
VS	MT	3600	2796.271
Reactive Dyes	MT	600	113.950
H – Acid	MT	2700	2542.978

GENERAL INFORMATION

Suppliers :

· A R Plastics Industries

· Amar Chemicals

· C J Polymer

· Dhanlaxmi Industries

· Jay Ranchodrai Industries

· Laxminarayan Ice Factory

· Sahajanand Ice Factory

· Shreenathji Polymers

· Shree Mahakali Ice Factory

· Shree Mahalaxmi Ice Factory

· Shree Neelkanth Ice Factory

· Shree Neelkanth Ice Industries

Bankers :

· Development Credit Bank

C G Road, Ahmedabad

· HDFC Bank

· Standard Chartered Bank

· Standard Chartered Bank Refinance

· SBI Term Loan

· SBI Cash Credit

· Vijaya Bank Term Loan

· SBI Term Loan

· SBI Cash Credit

· SBI EPC

· Vijaya Bank Term Loan 1

· Vijaya Bank Term Loan 2

· Vijaya Bank Cash Credit

· Vijaya Bank EPC

· Vijaya Bank L/C

· State Bank of India

Overseas Branch, Ahmedabad

Financial Institutions:

· M/s Fiat Sundaram Auto Finance Limited

No. 21 Patullos Road, Chennai – 600 002

· Sundaram Finance Limited

· Cholamandalam Investment Finance Company Limited

Facilities :

SECURED LOANS	31.03.2005	31.03.2004
	(Rs. in millions)
From Banks: Term Loan	51.346	64.214
Cash Credit / Export Packing Credit	47.111	94.478
Devolved L/C	5.350	5.854
Vehicle Loans	1.966	0.904
Total	105.773	165.450

UNSECURED LOANS	31.03.2005	31.03.2004
	(Rs. in millions)
From Shareholders	12.348	1.050
From Others	28.623	20.860
Total	40.971	21.910

Banking Relations :	---
Auditors :
Name :	Gatani and Associates Chartered Accountants
Address :	1003, Samundra Annexe, Near Classic Gold, Ellisbridge, Ahmedabad -380009, Gujarat, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity shares	Rs. 10/- each	Rs. 75.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7190517	Equity shares	Rs. 10/- each	Rs.71.905 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		71.905	71.905	71.905
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		[241.722]	[205.142]	[185.348]
NETWORTH		[169.817]	[133.237]	[113.443]
LOAN FUNDS
1] Secured Loans		107.417	105.774	165.452
2] Unsecured Loans		72.638	40.970	21.910
TOTAL BORROWING		180.055	146.744	187.362
DEFERRED TAX LIABILITIES		32.285	36.377	2.234
TOTAL		42.523	49.884	76.153
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		166.450	164.329	170.507
Capital work-in-progress		0.172	0.000	0.000
INVESTMENT		3.655	3.655	3.655
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	73.011	58.443	39.692
	Sundry Debtors	72.477	51.742	43.022
	Cash & Bank Balances	6.843	8.427	14.805
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	12.401	18.423	14.670
Total Current Assets		164.732	137.035	112.189
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	292.269	252.868	207.223
	Provisions	1.227	3.435	4.300
Total Current Liabilities		293.496	256.303	211.523
Net Current Assets		[128.764]	[119.268]	[99.334]
MISCELLANEOUS EXPENSES		1.010	1.168	1.325
TOTAL		42.523	49.884	76.153

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		801.657	848.555	759.354
Other Income		0.000	0.000	0.000
Total Income		801.657	848.555	759.354
Profit/(Loss) Before Tax		[39.630]	15.001	[48.816]
Provision for Taxation		0.000	0.000	[61.485]
Profit/(Loss) After Tax		[39.630]	15.001	12.669
Export Value		0.000	76.648	162.339
Expenditures :
	Raw Material Consumed	628.802	617.455	590.234
	Manufacturing Expenses	0.000	0.000	90.023
	Administrative Expenses	0.000	0.000	10.547
	Financial Overheads	0.000	0000	12.614
	Interest	2.913	5.056	0.000
	Increase/(Decrease) in Finished Goods	0.000	0.000	0.194
	Selling & Distributions Overheads	0.000	0.000	92.054
	Depreciation & Amortization	13.224	12.745	12.502
	Other Expenditure	196.348	198.298	0.000
Total Expenditure		841.287	833.554	808.168

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	[4.94]	1.76	1.66
Net Profit Margin (PBT/Sales)	(%)	[4.94]	1.76	[6.42]
Return on Total Assets (PBT/Total Assets}	(%)	[11.82]	[4.91]	[17.04]
Return on Investment (ROI) (PBT/Networth)		0.23	[0.11]	0.43
Debt Equity Ratio (Total Liability/Networth)		[2.78]	[3.02]	[3.51]
Current Ratio (Current Asset/Current Liability)		0.56	0.53	0.53

LOCAL AGENCY FURTHER INFORMATION

Form 8:-

Name of the company	MAYUR DYECHEM INTERMEDIATES LIMITED
Presented By	Mr. R S Patel
1) Date and description of instrument creating the change	28.05.1999 Hypothecation of tangible movable property.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 1.900 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	Stock of raw materials, finished goods, book debts, etc.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of interest as per RBI norms currently @ 11%
5) Name and Address and description of the person entitled to the charge.	Development Credit Bank C G Road Branch
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

Name of the company	MAYUR DYECHEM INTERMEDIATES LIMITED, Ahmedabad
Presented By	M/s Fiat Sundaram Auto Finance Limited, No. 21, Patullos road, Chennai – 600 002
1) Date and description of instrument creating the change	Loan Agreement Dated 31.12.2001 Loan Agreement No. HG0129
2) Amount secured by the charge/amount owing on the securities of charge	Amount Owing Rs. 0.467 millions inclusive of Finance Charges of Rs. 0.017 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	On the security of 1.o. 2001 Model Fiat Palio 1.6 GTX Car, Bearing E .No. 469248, Ch .No. 8014581 as mentioned in the 1^st schedule of the enclosed copy of the loan agreement.
4) Gist of the terms and conditions and extent and operation of the charge.	The total amount of Rs. 0467 millions is repayable in 12 equal monthly installments of Rs. 0.038 millions each. The 1st hire money falls due on 31.12.2001.
5) Name and Address and description of the person entitled to the charge.	M/s Fiat Sundaram Auto Finance Limited No. 21 Patullos Road, Chennai – 600 002
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

OTHER INFORMATION:

Contingent liabilities not provided for in the accounts in respect of :

Particular	31.03.2005 Rs. in millions	31.03.2004 Rs. in millions
Letter of Credit	12.499	10.294
Outstanding Bank guarantees	0.000	0.000
Foreign Bill Discounting	2.041	31.901
Unfulfilled Export Obligation	4.269	9.263

SECURED LOAN:

The Statues of secured loans of the Company as on 31.03.2005:

Secured Loans includes:

· Amount of Rs. 5.350 millions, being overdue in respect of the devolved letters of Credit

· Amount overdue fro payment as at 31.03.2005 being separately disclosed therein

· Amounts marked for which confirmations have not been provided and are therefore subject to confirmations and reconciliations.

· All dues to state Bank of India and Vijaya Bank are classified by them as non performing assets.

Excise under claims receivable on export made, are started as debtors:

The company has installed one of its manufacturing unit AT Padra, near Vadodara which was an eligible area for the Sales Tax incentives scheme 1995-2000, declared by the Government of Gujarat. The company had commenced production of the unit on 16.1.2008 and applied for the certificate of Sales Tax exemption. The request of the company was turned down and assessment was made for the Sales Tax payable by the company. The company has contested the rejection by way of appeal with Hon’ble Gujarat High Court vide petition no. 1158 /2004 which is still pending for decision. Impending the decision the company has written back unpaid amount of GST of Rs. 14.421 millions and CST of Rs. 2.406 millions in respect of the period from 17.01.1998 to 16.01.2003 of the Padra account during the year, as the same being no longer payable by it.

Since the networth of the Company has wiped out as per its balance Sheet as at 30.09.1999, the Company had made reference under section of 15 of the Stick Industrial Companies Act, 1985. The company has been registered as Sick Industrial Undertaking (Regn. No. 83/2000) by the board of Industrial Finance and Reconstruction however the final order is yet to be received, hence the same has not been considered for the finalization of the accounts.

FIXED ASSTES:

· Land

· Shed and Building

· Plant and machineries

· Furniture and Fixtures

· Vehicles

· Office Equipments

· Computer

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.39.27
UK Pound	1	Rs.77.33
Euro	1	Rs.57.51

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	1
PAID-UP CAPITAL	1~10	1
OPERATING SCALE	1~10	---
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	--
--CREDIT LINES	1~10	--
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	NO
TOTAL		6

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