MIRA INFORM REPORT

Report Date :

08.10.2008

IDENTIFICATION DETAILS

Name :	ADVANCE SURFACTANTS INDIA LIMITED
Formerly Known As :	Advance detchem limited
Registered Office :	511/21, Village Rajokari, New Delhi – 110 038
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	10.08.1998
Com. Reg. No.:	55-95458
CIN No.: [Company Identification No.]	U74899DL1998PLC095458
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter and Service provider of sophisticated chain of products like Linear Alkyl Benzene Sulphonic Acid (LABSA), Linear Alkyl Benzene Sulphonate (LAS) and Alum

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 1100000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company has wiped out previous losses. It’s payments are reported as slow but correct. However, the company can be considered for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	511/21, Village Rajokari, New Delhi – 110 038, India
Tel. No.:	91-11-25060802/3/4
Mobile No.:	91-9910333249 / 9910333249
Fax No.:	91-11-25060807/25063060 / 2506030
E-Mail :	advcorporate@advanceindia.com
Website :	www.advanceindia.com
Factory:	4-D, Local Shopping Centre, A - Block, Ring Road, Naraina, New Delhi-100 028, India
Tel. No.:	91-11-25777310 / 25777636
Fax No.:	91-11-25774224

DIRECTORS

Name :	Mr. Devendra Kumar Sharma
Designation :	Director
Address :	B -24, Tarang Apartment Patparganj, Delhi – 110 092, India
Date of Birth/Age :	17.04.1958
Date of Appointment :	15.11.2007
Name :	Mr. Anand Mahendroo
Designation :	Director
Address :	101-2, Prem Apartment , Amar Prem C H S Limited, J P Road, Versova, Andheri (West), Mumbai – 400 061, Maharashtra, India
Date of Birth/Age :	25.01.1955
Date of Appointment :	14.02.2008
Name :	Mr. Ashok Mahindru
Designation :	Director
Address :	351/5, Jacobpura, Gurgaon- 122 001, Haryana, India
Date of Birth/Age :	18.12.1953
Date of Appointment :	20.08.1998
Name :	Mr. Jugal Kishore
Designation :	Director
Address :	1280, Sector – 4, Gurgaon – 122 001, Haryana, India
Date of Birth/Age :	02.10.1947
Date of Appointment :	15.11.2002
Name :	Mr. P D Agrawal
Designation :	Director
Address :	Flat No. 1, Survey No. 348/2, Advance House,. Naroli Road, Silvassa – 396 230, India
Name :	Mr. Rajesh Jain
Designation :	Director
Address :	11/368, Sunder Vihar, New Delhi – 110 087, India
Date of Birth/Age :	02.06.1970
Date of Appointment :	01.07.2005
Name :	Mr. D K Sharma
Designation :	Director
Address :	B -24, Tarang Apartments, Patparganj, Delhi – 110 092, India
Name :	Mr. Amrit Prakasdh Malik
Designation :	Director
Address :	H No. 611, Sector -14, Gurgaon- 122 001, Haryana, India
Date of Birth/Age :	23.07.1937
Date of Appointment :	31.07.2002
Date of Ceasing :	21.03.2005
Name :	Mr. Vivek Goel
Designation :	Managing Director
Address :	Flat No. 348/2, Advance House, Naroli Road, Silvassa – 396 230, India
Date of Birth/Age :	18.11.1970
Date of Appointment :	09.08.2003
Date of Ceasing :	31.03.2005
Name :	Mr. Piyush Darshan Aggarwal
Designation :	Director
Address :	Flat No. 348/2, Advance House, Naroli Road, Silvassa – 396 230, India
Date of Birth/Age :	27.04.1952
Date of Appointment :	01.11.2004
Name :	Mr. K D Sharma
Designation :	Director
Address :	B -24, Tarang Apartment, Parparganj, Delhi – 110 092, India
Date of Birth/Age :	17.04.1958
Date of Appointment :	01.07.2005
Name :	Mr. Vikash Sethi
Designation :	Director
Address :	H No. 23, 1^st Floor, Model Basti , Near Filmistan, New Delhi – 110 005, India
Date of Birth/Age :	12.12.1975
Date of Appointment :	10.08.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Mr. Ashok Mahindru		1320000
Mr. Ashutosh Mahindru		880000
Advance Finvest Private Limited		1976000
Plus Finvest Private Limited		1976000
Crest Finvest Private Limited		1976000
Ace Detergents Private Limited		1976000
Aseem Detergents Private Limited		1976000
Mr. Purshottam Investofin Limited		1976000
Delhi Detergents Private Limited		1976000
AKS Credit Limited		1976000
Ace Stonecraft Limited		1182000
Advance Detergents Limited		810000
	Total	20000000

Names of Allottees (As on 06.03.2008) :-		No. of Shares
Mr. Ashok Mahindru		2595400
Mr. Atul Mahindru		2301000
Mr. Ashish Mahindru		43700
Mr. Aseem Mahindru		57500
Advance Finvest Private Limited		804000
Plus Finvest Private Limited		804000
Crest Finvest Private Limited		739000
Ace Detergents Private Limited		341000
Delhi Detergents Private Limited		838000
Aseem Detergents Private Limited		276000
	Total	8799600

Equity Share Breakup (Percentage of Total Equity):-

Category (As on 29.12.2007)	Percentage
Bodies Corporate	89.0
Directors or relative of directors	11.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter and Service provider of sophisticated chain of products like Linear Alkyl Benzene Sulphonic Acid (LABSA), Linear Alkyl Benzene Sulphonate (LAS) and Alum

GENERAL INFORMATION

No. of Employees :	Around 1200
Bankers :	· State Bank of India, Commercial Branch, Naraina -110 028, New Delhi-110 028, India · Citi Bank NA, Jeevan Vihar, 3Sansad Marg, New Delhi – 110 001, India · HDF C Bank Limited, HDFC Bank Senapti Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India
Banking Relations :	Satisfactory
Auditors :
Name :	Mr. Pawan Gupta Chartered Accountants
Address :	111, Sewak Bhawan, Arya Samaj Road, Karol Bagh, New Delhi – 110 005, India
Associates/Subsidiaries :	NIL

CAPITAL STRUCTURE

(As on 29.12.2007):-

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs. 10/- each	Rs.400.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs. 10/- each	Rs.200.000 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		200.000	200.000	200.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		9.848	335.659	0.000
4] (Accumulated Losses)		0.000	[22.857]	[50.285]
NETWORTH		209.848	512.802	149.715
LOAN FUNDS
1] Secured Loans		354.148	0.000	340.545
2] Unsecured Loans		57.945	54.445	54.445
TOTAL BORROWING		412.093	54.445	394.990
DEFERRED TAX LIABILITIES		25.751	28.953	36.120
TOTAL		647.692	596.200	580.825
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		307.615	349.656	397.647
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	61.973	115.680	104.063
	Sundry Debtors	295.403	184.492	123.098
	Cash & Bank Balances	1.349	0.940	0.495
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	34.329	13.426	14.109
Total Current Assets		393.054	314.538	241.765
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	45.940	64.929	58.587
	Provisions	7.037	3.065	0.000
Total Current Liabilities		52.977	67.994	58.587
Net Current Assets		340.077	246.544	183.178
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		647.692	596.200	580.825

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		2778.206	2267.319	1858.529
Other Income		0.408	3.065	2.446
Total Income		2778.614	2270.384	1860.975
Profit/(Loss) Before Tax		33.636	22.543	[29.067]
Provision for Taxation		[0.949]	4.885	[8.929]
Profit/(Loss) After Tax		34.585	17.658	[37.996]
Expenditures :
	Raw Material Consumed	2140.292	1761.543	1508.278
	Consumption of stores and spares parts	0.735	0.662	0.422
	Increase/(Decrease) in Finished Goods	31.596	8.466	[38.108]
	Salaries, Wages, Bonus, etc.	16.793	11.731	10.591
	Managerial Remuneration	1.959	1.698	0.699
	Payment to Auditors	0.020	0.020	0.020
	Interest	38.978	36.978	42.608
	Insurance Expenses	2.456	1.424	1.725
	Power & Fuel	11.704	12.213	11.192
	Depreciation & Amortization	44.296	50.697	58.326
	Other Expenditure	456.151	362.409	294.289
Total Expenditure		2744.979	2247.841	1890.042

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	1.24	0.78	[2.04]
Net Profit Margin (PBT/Sales)	(%)	1.21	0.99	[1.56]
Return on Total Assets (PBT/Total Assets}	(%)	4.80	3.39	[4.54]
Return on Investment (ROI) (PBT/Networth)		0.16	0.04	[0.19]
Debt Equity Ratio (Total Liability/Networth)		2.22	0.24	3.03
Current Ratio (Current Asset/Current Liability)		7.42	4.63	4.13

LOCAL AGENCY FURTHER INFORMATION

FORM 8:-

Name of the company

Advance det chem limited

Presented By

The Company and State Bank of Bikaner and Jaipur

1) Date and description of instrument creating the change

Hypothecation agreement for goods and asset dated 20.10.2005.

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 52.100 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

· First pari-passu charge on fixed assets

· Second pari-passu charge on entire current assets.

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of interest @ 10.25% p.a or as may be determined by the bank from time to time

The above is to secure the following :-

Term Loan	Rs. 44.400 millions
FITL	Rs. 7.700 millions
Total	Rs. 52.100 millions

Repayment

Term Loan – Repayment in 104 months w.e.f August 2005

FITL – Repayment in 18 months w.e.f August 2005

5) Name and Address and description of the person entitled to the charge.

State Bank of Bikaner and Jaipur, Connaught Circus, New Delhi, India

Corporate identity number of the company	U74899DL1998PLC095458
Name of the company	ADVANCE SURFACTANTS INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	511/21, Village Rajokri, New Delhi – 110 038, India
This form is for	Creation of charge
Type of charge	Immovable Property
Particular of charge holder	HDFC Bank Limited, HDFC Bank Senapti Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India E-Mail: RBBform8@hdfcbank.com
Nature of instrument creating charge	Memorandum recording past transaction of creation of mortgage by deposit or title deeds.
Date of instrument Creating the charge	21.04.2008
Amount secured by the charge	Rs. 85.464 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest : Interest at the rate as may be communicated by the bank from time to time. Terms of Repayment : On Demand Margin : Borrower shall at all times during the continuance of this security maintain a sufficient amount to provide the margin of security as may from time to time by the bank. Extent and Operation of the charge : The company created an equitable mortgage by way deposit of title deeds in respect of its immovable properties as stated below column as security for the due repayment / payment of the company dues including principal amount of the facility, interest, liquidated damages, costs, charges and expenses, etc.
Short Particulars of the property charged	Immovable property bearing (1) Plot No. 33, Industrial Area, Pitampur, MP (2) Plot No. 450, Baikamady Industrial Area, Mangalore

WEBSITE DETAILS:-

Company Profile

Advance Group of Companies is a diversified corporate enterprise with operations ranging from manufacture of industrial chemicals with hi-tech processes, consultancy in mining, engineering and environmental projects to production of entertainment software (TV Serials).

Leading in technology, the Advance Group, which is recognised primarily for its core business of industrial chemicals for detergent industry, has made giant leaps during last few years to emerge as India's largest manufacturer of surfactants used in formulation of detergents of all kind.

The Group achieved a combined turnover of USD 100 million during FY 2003-4 (including product value of job work done) with strong team of 350 people under the Chairmanship of Mr. Ashok Mahindru.

The Group has a strong R and D base both for the intermediary as well as finished detergents.

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.48.01
UK Pound	1	Rs.84.16
Euro	1	Rs.65.20

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	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	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, 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