MIRA INFORM REPORT

Report Date :

10.09.2008

IDENTIFICATION DETAILS

Name :	MIRACHEM INDUSTRIES
Registered Office :	B – 310/ BC 4, Virwani Industrial Estate, Off Western Express Highway Goregaon (East), Mumbai - 400 063 , Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	22.01.1976
IEC No.:	0388021233
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners.
Line of Business :	Manufacturer of Textiles Auxiliaries and Fine 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 265500
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is well – established concern having satisfactory track. Partners are experienced, respectable and having satisfactory means of their own. Their trade relations are fair. Payments are usually correct and as per commitments. The concern can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Anil K Murarka
Designation :	Partner
Date :	28.08.2008

LOCATIONS

Registered Office :	B - 310 Verwani Industrial Estate, Off Western Express Highway Goregaon (East), Mumbai – 400 026, Maharashtra
Tel. No.:	91-22-28797501/ 2879502/ 2879503
Fax No.:	91-22-28797504
E-Mail :	mirachem@bom5vsnl.net.in mirachem@vsnl.com
Website :	www.mirachemindustries.com
Location :	Owned
Branches / Factory / Warehouse :	W-6-9, MIDC Industrial Area, Kurkumbh Tal Daund District Pune - 413 802, Maharashtra
Location :	Leased
Corporate Office :	307 / 308, Shrikant Chambers, Nr. R K Studio, Sion Trombay Road, Mumbai – 400 071, Maharashtra, India
Tel. No.:	91-22-25209180 /25209379
Fax No.:	91-22-25209161

PARTNERS

Name :	Mr. Kashiprasad C Muraraka
Designation :	Proprietor
Address :	A -1203, Shikharkunj Co.operative Housing society Limited, Upper Govind Nagar , Malad (East), Mumbai – 400 098, Maharashtra
Qualification :	B.Sc
Experience :	35 years
Name :	Mr. Anil K Murarka
Designation :	Proprietor
Address :	A -1203, Shikharkunj Co.operative Housing society Limited, Upper Govind Nagar , Malad (East), Mumbai – 400 098, Maharashtra
Qualification :	B .Com
Experience :	15 years
Name :	Mrs. Sangeeta Murarka
Designation :	Proprietor
Address :	A -1203, Shikharkunj Co.operative Housing society Limited, Upper Govind Nagar , Malad (East), Mumbai – 400 098, Maharashtra
Qualification :	B Com
Experience :	2 years

BUSINESS DETAILS

Line of Business :	Manufacturer of Textiles Auxiliaries and Fine Chemicals.
Products :	· Dyeing and printing Auxiliaries · Textile Finishing auxiliaries · ABSORBENT – T · ACCENT – 100 · ACID SLURRY · ANTOX – NEB · BACOFINISH – C · CATALYST-DR · ELENTRA SOFT A · EMOIL · EMPOL – S2B · EMSEK – ET · EMSPRAY · MIRA ACID PD LIQUID · MIRAFINISH · MIRASET – DH · MIRASOZE – OZ · MIRAWET – OT · MONTSILK CONC · SEIKOGEM – MER · SILKINA – 60 · SILKYPEACH – 30 · TURBO – ZET · TOBLER – CSI · TURBULANT - 200
Agencies Held :	Novozymes South Asia Private Limited, Denmark
Exports :
Products :	v Textile Auxiliaries v Fine Chemicals
Countries :	v Asian Countries v African Countries v Middle East v Bangladesh v Srilanka v Nigeria v Indonesia
Imports :
Products :	v Intermediates
Countries :	v Singapore v Germany v China
Terms :
Selling :	L/C, Cash ,Credit (90 Days)
Purchasing :	L/C, Cash, Credit (30-90 Days)

PRODUCTION STATUS

Production during the year 2007-2008 4238.00 M.TS

GENERAL INFORMATION

Customers :	v Wholesalers v End Users
No. of Employees :	Total : 24 (Office: 13, Factory : 11)
Bankers :	v Bank of Baroda Sir P M Road, Fort, Mumbai Branch, Mumbai – 400 001, Maharashtra, India

Banking Relations :	Satisfactory
Associates/Subsidiaries :	S Kamal and Company Address – B – 310, Virwani Industrial Estate, Off Western Express Highway, Goregaon (East), Mumbai – 400001, Maharashtra

CAPITAL STRUCTURE

Capital Investment :
Owned :	Rs. 53.100 Millions
Borrowed :	--
Total :	Rs. 53.100 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Partners Capital		53.100	19.346
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		53.100	19.346
LOAN FUNDS
1] Secured Loans		0.400	0.506
2] Unsecured Loans		0.100	0.123
TOTAL BORROWING		0.500	0.629
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		53.600	19.975
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12.500	11.183
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.600	7.652
	Sundry Debtors	34.200	18.525
	Cash & Bank Balances	11.900	2.887
	Other Current Assets	0.000	0.106
	Loans & Advances	8.800	3.738
Total Current Assets		69.500	32.908
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	27.000	23.826
	Provisions	1.400	0.290
Total Current Liabilities		28.400	24.116
Net Current Assets		41.100	8.792
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		53.600	19.975

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		300.000	194.923
Total Income		300.000	194.923
Profit/(Loss) Before Tax		50.000	10.295
Provision for Taxation		17.000	0.000
Profit/(Loss) After Tax		33.000	10.295
Expenditures :
	Salaries, Wages, Bonus, etc.	3.278	3.232
	Interest	2.188	1.300
	Depreciation & Amortization	2.240	1.119
	Other Expenditure	242.294	178.977
Total Expenditure		250.000	184.628

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006
PAT / Total Income	(%)	11.00	5.28
Net Profit Margin (PBT/Sales)	(%)	16.67	5.28
Return on Total Assets (PBT/Total Assets}	(%)	16.67	5.28
Return on Investment (ROI) (PBT/Networth)		0.94	0.53
Debt Equity Ratio (Total Liability/Networth)		0.53	1.25
Current Ratio (Current Asset/Current Liability)		2.45	1.36

LOCAL AGENCY FURTHER INFORMATION

As Per Website Details

Profile

Their story started in 1975. They started as a small concern, Subject with a product line of detergents and stain removers, a suitably modest beginning, one might say.

Thirty years hence: They offer the entire gamut - from raw material to the final finished product. They produce and supply speciality chemicals to improve the processing of cotton, wool, natural and synthetic fibre / yarn / fabric to give an added value to finished knits / towels, woven and denim fabrics.

A network of established dealers markets their products throughout India, fully supported by their Technical Service Cell.

A perfect composition of strong business relationships - commitment to outstanding service and a wide application of knowledge has formed a perfect compound, making them the preferred partners by their delighted customers.

Certification

It is always their priority to recognize their responsibilities and commitments in order to provide their customers with products which are not only of best quality but also less harmful or hazardous to environment and human health. The concern in tune with the above policy has adopted the latest Global Organic Textile Standards (GOTS) in all its manufacturing activities and they are one of the few to get accredited by SKAL, Netherlands (Control Union Certifications) as per the above standards for textile processing chemicals.

They give utmost importance to environment that surrounds them and manufacture eco-friendly products. All their products are Non – Hazardous, Non – Toxic and Non – Corrosive.

Infrastructure - Lab

The Speciality chemicals are manufactured using latest production facilities with control systems for all operational processes and quality monitoring to ensure highly efficient manufacturing and precise compliance with product specifications. Newly developed products are adapted to large-scale production within a short time, after confirmation of performance results in their analytical lab.

Innovative solutions to problems are their Speciality – A competitive advantage for their customers.

A dedicated lab to provide instant solutions to their esteemed clientele. The lab is equipped with latest series of equipments required to meet the customer requirements.

Corporate Social Responsibility  

They take their responsibility as a corporate citizen seriously. Consistent environment - protection policies have been formulated and are adhered to, in spirit and law. A well equipped effluent treatment facility handles all discharge from the plant and treats it to keep it within required limits.

Solid wastes are either burnt or dumped in official control dumps according to appropriate work procedures. Thorough screening of the raw materials procured for production / formulations is done to ensure that none contain any of the globally banned or restricted substances, especially alkyl phenols and their ethoxylates, PVC and phthalates, Pentachlorophenol, tributyltin etc.  Products for resin finishes confirm to the relevant Oeko - Tex Standard 100 concerning formaldehyde.

With respect to the above policy they have adopted the latest Global Organic Textile Standards (GOTS) in all their manufacturing activities and at the same time their products have been accredited by SKAL, Netherlands (Control Union Certifications).

Their product range has been continuously updated and improved to meet the latest developments in the market – low toxicity, high biodegradability and easy - to-use. Also, proper training and education of the entire workforce regarding safety measures has resulted in safer handling of dangerous and hazardous chemicals. Their customers too are updated with technical inputs on toxicological issues with regards to the products supplied to them.

Infrastructure

Their heads office situates at Mumbai in Prime Commercial Zone controls operations along with the regional Offices in And around India. Activities such as purchase, Logistics, Finance and marketing and the needs of their clients are met through these offices 

Location

The production plant of the concern is located at  MIDC Pune, about 200 kms  south of Mumbai. The MIDC has good infrastructure and is well connected by rail and road to all parts of the country.

Operations are controlled from Mumbai Head Office which looks after Purchases, Logistics, Finance and Marketing for the Western region.

Regional Office in Banglore looks after sales in the Southern Region,whereas the Northern Region is serviced by its office in Amritsar. 

To keep abreast of the market needs and customer requirements, they constantly upgrade their processes through their R and D where existing product fine tuning towards betterment is a continuous effort. A well equipped quality control laboratory ensures that the production of high quality products are a routine affair.

Distribution Network:

Subject has a Sales and Distribution network in all the major Textile centers in India. Geographically segmented, the market is divided into four major regions, as highlighted in the map.

v Western Region

v Northern Region

v Southern Region   

v Eastern  Region

Majority of the sales are made on a direct basis to customers. Order bookings are through indents from their regional offices.

Marketing and logistic work together to ensure rapid and timely delivery to their customers.

Technical support to their customers is a key aspect of their marketing. 

International Business:

The concern has a strong export base for its Textile business with customers in all parts of the world. Their textile auxiliaries and chemicals has also found acceptance in a number of Middle East and Asian countries.

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 :

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. 45.12
UK Pound	1	Rs. 79.60
Euro	1	Rs. 63.83

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		54

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, they have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at the 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 the 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 the breach or non observance of any one, or more of these conditions