MIRA INFORM REPORT

Report Date :

22.07.2008

IDENTIFICATION DETAILS

Name :	CALIBRE CHEMICALS PRIVATE LIMITED
Registered Office :	703 Dalamal House, 206 Nariman Point, Mumbai - 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	20.10.1983
Com. Reg. No.:	11-31128
CIN No.: [Company Identification No.]	U24100MH1983PTC031128
IEC No.:	0388099917
TAN No.: [Tax Deduction & Collection Account No.]	MUMC10102B
PAN No.: [Permanent Account No.]	AAACC1952G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Inorganic Chemicals and also makes Wind Power Generation for Captive Consumption

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having fine track. Financial position is good. Payments are correct and as per commitments. The company is doing well. It can be considered good for any normal business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Annaji Rao
Designation :	Finance Executive
Date :	22.07.2008

LOCATIONS

Registered Office/ Corporate Office :	703 Dalamal House, 206 Nariman Point, Mumbai - 400021, Maharashtra, India
Tel. No.:	91-22-2282 3148 / 22844335 / 22871797
Mobile No.:	91-9820050285
Fax No.:	91-22-2283 2087
E-Mail :	mail@calibrechem.com
Website :	www.calibrechem.com
Area :	2200 Sq. ft.
Location :	Owned
Chemical Factory:	901-907, 1002 and 1006, GIDC Sarigam, Umbergaon Taluka, District Valsad – 396155, Gujarat, India
Tel. No.:	91-260-2780116
Fax No.:	91-260-2781336
Area :	22000 Sq. meter
Location :	Owned
Wind farm Factory :	Locations 5 and 6, Survey Number 384, Kurunga Village, Taluka Dwarka, District Jamnagar, Gujarat
Area :	15 Acres
Location :	Owned
Other Factory :	· R.B. Chemicals & Agro Ind. Private Limited D-57 MIDC TTC Area Off Turbhe Naka, Navi Mumbai-400 705. India · Igloo Cold Storage 46/6 APM Yard, Sector 18 Vashi Navi Mumbai-400 703. India · Imperial Cold Storage Private Limited. 46/5 APM Yard, Sector 18 Vashi Navi Mumbai-400 703. India · Calibre Wind Farm 5/6 Kurunga Village District Jamnagar, Gujarat. India · R.B. ChemAgro Wind Farm G-355 Dhalgaon Site District Sangli, Maharashtra, India.

DIRECTORS

Name :	Mr. Ranjit H. Bhavnani
Designation :	Group Chairman and Managing Director
Address :	3, Buckley Court, 5 Wodehouse Road, Mumbai - 400001, Maharashtra, India
Date of Birth/Age :	02.11.1951
Qualification :	B. Tech, M. Tech, M.B.A.
Date of Appointment :	20.10.1983
Name :	Mrs. Mala R. Bhavnani
Designation :	Executive Director
Address :	3, Buckley Court, 5 Wodehouse Road, Mumbai - 400001, Maharashtra, India
Date of Birth/Age :	02.11.1954
Qualification :	B. Sc.
Date of Appointment :	20.10.1985
Name :	Mr. Dhanesh C. Bhagia
Designation :	Executive Director
Address :	C-403, Ganga Estate, Behind Alur Park, Chembur, Mumbai - 400071, Maharashtra, India
Date of Birth/Age :	08.12.1953
Qualification :	B. Tech
Date of Appointment :	20.03.1991

KEY EXECUTIVES

Name :	Mr. T V Issac
Designation :	Executive Director
Name :	Mr. Parshotam R Barwal
Designation :	Commercial Executive
Name :	Mr. N Annaji Rao
Designation :	Finance Executive
Name :	Mr. P R Yashodharan
Designation :	Supplier Accounts
Name :	Mr. M K Swami
Designation :	Export Documentation
Name :	Mr. Ravi Niar
Designation :	Tax Documentation

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Ranjit H. Bhavnani	1271
Mr. Rikhil Bhavnani	1100
Mr. Trivik Bhavnani	1100
Mr. Ranjit H. Bhavnani (HUF)	5532
Mrs. Mala Bhavnani	4042
Imperial Cold Storage Private Limited	2300
Total	15345

Equity Share Break-Up	Percentage of Holding
Directors or relatives of Directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Inorganic Chemicals and also makes Wind Power Generation for Captive Consumption

Products :

Name	Item Code
Calcium Iodate	283340.00
Potassium Iodate	282990.30
Potassium Persulphate	283340.00

Exports :

Products :

• Persulfates
• Iodates
• Perchlorates

Countries :

• USA
• France
• Belgium
• Kenya
• Indonesia
• Japan
• UAE
• Germany
• Spain

Imports :

Products :

• Iodine
• Potassium Sulphate
• Sodium Chlorate

Countries :

• Finland
• Belgium
• Germany
• South Korea

Terms :

Selling :

Cash and Credit : 120 Days

Purchasing :

Cash and Credit : 60 Days

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Inorganic Chemicals	Kgs.	3.240	1.884
Wind Energy	MW	1.6	2.881

GENERAL INFORMATION

Customers :

Wholesalers, Distributors and End Users

No. of Employees :

102 (17 in Office and 85 in Factory)

Bankers :

• Citibank N.A.

Fort, Mumbai, Maharashtra

• SBI Commercial and International Bank Limited

Nariman Point, Mumbai, Maharashtra

• State Bank of India

Nariman Point, Mumbai, Maharashtra

• ING Vysya Bank Limited

Altamount Road, Mumbai, Maharashtra

• Bank of Baroda

Sarigam Branch

Facilities :

Particulars	As on 31.03.2007 [Rupees in Millions]
SECURED LOAN
Term Loans from SBI Commercial and International Bank Limited [against hypothecation of two wind turbine generators]	45.832
Term Loans from Citi Bank N.A. [against hypothecation of Chemical plant and machinery]	15.677
Cash Credit Facility from Citibank N. A. [against mortgage of leasehold land and hypothecation of Chemical plant, machinery, stocks and book debts]	5.284
UNSECURED LOAN
Sales Tax Loan	2.394
Less : Repaid During the year	[0.798]
Balance Outstanding	1.596

Banking Relations :

Satisfactory

Auditors :

Name :

Chag Pahwa and Shah

Chartered Accountants

Address :

404, Bhagyalaxmi, Kennedy Bridge, Opera House, Mumbai – 400004, Maharashtra, India

Tel. No.:

91-22-23873358

Mobile No.:

91-22-23814443

Associates/Subsidiaries :

1] Name	R. B. Chemicals and Agro Industries Private Limited
Address	703 Dalamal House, 206 Nariman Point, Mumbai – 400021, Maharashtra
Business	Manufacturer of Inorganic Chemicals and Milk processing
2] Name	Imperial Cold Storage Private Limited
Address	703 Dalamal House, 206 Nariman Point, Mumbai – 400021, Maharashtra
Business	Milk Processing
3] Name	Igloo Dairy Services Private Limited
Address	D -57, MIDC, TTC Turbhe Navi Mumbai , Maharashtra
Business	Manufacturer of Perchlorates

CAPITAL STRUCTURE

(As on 31.03.2008) :-

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs 100 /- each	Rs 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15345	Equity Shares	Rs 100 /- each	Rs 1.534 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		1.535	1.534	1.534
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		119.989	98.692	95.447
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		121.524	100.226	96.981
LOAN FUNDS
1] Secured Loans		142.253	66.793	71.492
2] Unsecured Loans		0.798	1.596	36.970
TOTAL BORROWING		143.051	68.389	108.462
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		264.575	168.615	205.443
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		54.890	39.271	56.812
Capital work-in-progress		3.627	0.000	0.000
INVESTMENT		14.091	34.290	14.104
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	132.207	90.987	73.218
	Sundry Debtors	69.606	61.264	78.319
	Cash & Bank Balances	1.935	11.983	27.745
	Other Current Assets	0.018	0.091	1.024
	Loans & Advances	36.957	22.459	5.915
Total Current Assets		240.723	186.784	186.221
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	[43.131]	91.730	48.342
	Provisions	[5.625]	0.000	3.352
Total Current Liabilities		[48.756]	91.730	51.694
Net Current Assets		191.967	95.054	134.526
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		264.575	168.615	205.443

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Sales Turnover	457.350	434.310	406.141
Other Income	1.682	15.087	0.000
Total Income	459.032	449.397	406.141
Profit/(Loss) Before Tax	41.837	6.495	12.410
Provision for Taxation	13.135	2.300	2.325
Profit/(Loss) After Tax	28.702	4.195	10.085
Export Value	NA	228.589	227.939
Import Value	NA	311.809	224.025
Expenditure :
Raw material Consumed	320.708	328.797	0.000
Electricity and Fuel	30.665	30.185	0.000
Employee Cost	6.478	6.647	0.000
Operating and other Expenses	50.277	45.383	0.000
Financial charges	7.715	13.772	9.496
Depreciation	18.111	37.111	39.932
Increased and Decreased in Finished goods	[16.759]	[18.993]	344.303
Total Expenditure	417.195	442.902	393.731

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	6.25	0.94	2.49
Net Profit Margin (PBT/Sales)	(%)	9.15	1.50	3.06
Return on Total Assets (PBT/Total Assets}	(%)	13.35	2.88	5.11
Return on Investment (ROI) (PBT/Networth)		0.34	0.07	0.13
Debt Equity Ratio (Total Liability/Networth)		[0.78]	1.60	1.65
Current Ratio (Current Asset/Current Liability)		[4.94]	2.04	3.60

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCES :-

• Chemical International

26E Commerce Road, Fair Field, NJ - 07004 (USA)

• BASF India Limited

RBC, Mahindra Towers, 1^s Floor, A Wing, Doctor G. M. Bhosale Marg, Worli, Mumbai – 400018, Maharashtra, India

• GHCL Limited

Number 11, 4^th Street, Padmanabh Nagar, Adyur, Chennai -600020, Tamilnadu, India

• Century Chemicals

Satyakripa, Pandit Nehru Marg, Jamnagar - 361007, Gujarat, India

• Indian Acrylics Limited

S.C.O 49-50, Sector 26-D, Madhya Marg, Chandigarh - 160019, Punjab, India

• Arkema, France

• Unicef, Denmark

• Altichem, France

• Manali Chemicals , Mumbai

• Mr. Chen Fab Alkalies Limited, Pondicherry

• Mr. Nath Ind. Chemicals Limited, Vapi

Notes :-

Wind Power Project

A 1.6 MW wind power project was commissioned on 03.12.2005 in Gujarat. A long term agreement has been entered into with GETCO for banking and wheeling the wind power for captive consumption at their chemical plants in Gujarat.

Insurance

Buildings, plants, machineries and stocks have been adequately and appropriately insured

FORM 8 :-

Bankers Charges Report as per Registry

This Form is for	Modification of Charge
Charge identification number of the charge to be modified	90242701
Corporate identity number of the company	U24100MH1983PTC031128
Name of the company	CALIBRE CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	703 Dalamal House, 206 Nariman Point, Mumbai - 400021, Maharashtra, India
Type of charge	Immovable Property
Particular of charge holder	Citi Bank NA Wockhardt Tower, West Wing, Ground Floor, Bandra Kurla Complex, Bandra (East), Mumbai 400 051, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Constructive Memorandum of Entry
Date of instrument Creating the charge	09.07.2007
Amount secured by the charge	Rs. 190.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	[a] Rate of Interest The Borrower shall pay interest at such rate as may be determined by Bank from time to time. [b] Terms of Repayment Demand [c] Margin As may be stipulated by the Bank from time to time. [d] Extend and operation of the Charge Equitable mortgage created by deposit of title deeds [by way of constructive delivery] in respect of immovable properties including land and building more particularly described in Column No. 14 as security for repayment of credit facilities together with interest, charges, costs and expenses and other monies due and payable by the Company to the bank.
Short particulars of the property charged	Equitable Mortgage on property including land and building situated at Plot No. 901 and 903 and 905 Revenue Survey No. 342/P, Sarigam, Taluka Umbergaon, District Valsad.
Date of latest modification prior to the present modification	04.05.2005
Particulars of the present modification	The Bank has now increased credit facilities from Rs. 100 Millions to Rs. 190 Millions together with all interest, costs, charges, expenses and other monies payable under or in respect of said credit facilities.

Name of the company	CALIBRE CHEMICALS PRIVATE LIMITED
Presented By	Mr. Ranjit Bhavnani
1) Date and description of instrument creating the change	Goods Security Agreement dated 27.11.2004 executed by Calibre Chemicals Private Limited (hereinafter referred to as “the Company’ ) in favour of Citibank N. A. ( hereinafter referred to as “the Lender”)
2) Amount secured by the charge/amount owing on the securities of charge	Total Working Capital Facilities of Rs. 70.000 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	The whole of movable assets, including plant and machinery, both present and future, stocks of raw materials, goods in process of manufacture goods and articles together with all stores, components and spares which now belongs to and pertain to or may hereafter from time to time during the continuance of this security belong to and pertains to the company and which are or shall or may be brought into stored or be in or upon or about. The company’s factory, godowns and/or their premises wherever else the same may be situated, stored or lying or being including any such raw materials, inventories, articles or goods, any stores spares and components or other similar moveable assets in course of transit or delivery to the Company and all of the company’s present and future book debts, outstanding monies, receivables, claims, bills, investments, rights to or on moveable properties and moveable assets forming part of current and movable fixed assets which are now due owing or payable or belonging to or pertaining to the Company or which may at any time hereafter during the continuance of this security become due, owing payable or belonging to or pertaining to the Company in the course of its business and together with all benefits, advantages and legal incidence thereof.
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of the lender having agreed to lend advance to the Company credit facilities aggregating to Rs. 70 Millions the Company covenants interalia as follows : 1. Covenant by the Company to repay the facility at [2] above and pay interest and all other monies in the manner set out in the said agreement between the Company and the Lender and to comply with the terms and conditions of the said Agreement. 2. The said current assets and fixed assets hypothecated to the Lender by way of first exclusive charge created in favour of the Bank, as security for and be charged with the repayment of the loan with all interest liquidated damages, on prepayment or on redemption, costs, charges and other expenses payable by the Company to the lender in respect thereof. Presently margin of 28% is maintained on insured stocks and receivable from top corporates and margin of 46% on other receivables. 3] The Company to keep the said assets in marketable and good condition and also insured as provided therein 4] Power of entry, power to take charge and/or possession of seize, recover, receive, appoint and sell, contract, dispatch for realization or otherwise dispose of or deal with all or any part of the said goods etc. as provided therein.
5) Name and Address and description of the person entitled to the charge.	Citi Bank NA Wockhardt Tower, West Wing, Ground Floor, Bandra Kurla Complex, Bandra (East), Mumbai 400 051, Maharashtra, India
6) Date and brief description of instrument modifying the charge	Deed of Modification dated 05.09.2005 for enhancement in credit facilities.
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.	The original charge was created on 27.11.2004 for securing Rs. 70 Millions hypothecated by way of first exclusive charge on stocks, book debts, plant and machinery etc. forming part of current and fixed assets both present and future. The bank has now extended additional facilities to the Company and executed a new Deed of Modification dated 05.09.2005 for Rs. 100 Millions which is an increase of Rs. 30 Millions against the said current and fixed assets [including stock, book debts, plant and machinery] hypothecated by way of first exclusive charge to the Lender both present and future. Other terms and conditions will remain same as per original goods security agreement except margin of 32% is maintained on insured stocks and receivables from top corporates and margin of 41% on other receivables.

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. 42.71
UK Pound	1	Rs. 85.11
Euro	1	Rs. 67.73

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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		72

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, 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