MIRA INFORM REPORT

Report Date :

13.04.2011

IDENTIFICATION DETAILS

Name :	SIKKO INDUSTRIES LIMITED (w.e.f. 16.03.2010)
Formerly Known As :	SIKKO SPRAYERS PRIVATE LIMITED
Registered Office :	310-311, Circle –P, Vejalpur, S.G. Highway, Ahmedabad-380051, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	08.02.2000
Com. Reg. No.:	04-37329
CIN No.: [Company Identification No.]	U51909GJ2000PLC037329
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Agro Chemicals and Fertilizers.

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 24000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Ms. Reena
Designation :	Accounts Department
Date :	08.04.2011

LOCATIONS

Registered Office :	310-311, Circle –P, Vejalpur, S.G. Highway, Ahmedabad-380051, Gujarat, India
Tel. No.:	91-79-40062350 / 32922969
Fax No.:	91-79-40064350
E-Mail :	sikkosprayer@rediffmail.com
Website :	http://www.sikkoindia.com
Area :	2500 sq. ft. (Owned)
Factory :	55-A, Ambica Industrial Estate, Near Supper Atta, Sanad- Viramgam Highway, Iyava, Sanad, District Ahmedabad-380081, Gujarat, India
Tel. No.:	91-2717-284210

DIRECTORS

As on 29.09.2010

Name :	Mr. Jayantibhai Mohanbhai Kumbhani
Designation :	Director
Address :	8, Pooja Bungalows, Nandan Park Society, Opposite Inductotherm Company, Bopal, Ahmedabad-380058, Gujarat, India
Date of Birth/Age :	10.04.1967
Qualification :	B.Sc.
Pan No.:	AFYPK 8106 Q
Name :	Mr. Pravin Mohanbhai Kumbhani
Designation :	Director
Address :	8, Pooja Bungalows, Nandan Park Society, Opposite Inductotherm Company, Bopal, Ahmedabad-380058, Gujarat, India
Date of Birth/Age :	01.04.1969
Qualification :	B.Sc.
Pan No.:	AFMPK 3572 N
Name :	Mr. Ghanshyam Mohanbhai Kumbhani
Designation :	Director
Address :	9, Ekta Bunglows, Near Panchawati Bung, Bopal, Ahmedabad-380058, Gujarat, India
Date of Birth/Age :	12.08.1963
Date of Appointment :	01.01.2010
Pan No.:	ADTPK 7058 E
Name :	Mrs. Alpaben Kumbhani
Designation :	Director
Date of Birth/Age :	37 Years
Qualification:	B. Com

KEY EXECUTIVES

Name :	Ms. Reena
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Alpaben J Kumbhani	79460
Bhavnaben Kumbhani	192575
Ghanshyam Kumbhani	14150
Jayantibhai M Kumbhani	59621
Mohanbhai Kumbhani	31870
Pravin M Kumbhani	12400
Arvindbhai D Vaghasiya	20
Nandaben G Kumbhani	70000
Total	460096

As on 29.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Agro Chemicals and Fertilizers.
Products :	· Bio Products · Pesticides and Fungicides · Fertilizers · Other Products · Sprayers
Exports :
Products :	Fertilizer
Countries :	China South Africa
Imports :
Products :	Chemical
Countries :	China
Terms :
Purchasing :	Depends

GENERAL INFORMATION

Suppliers :

· Ajmera Stationery and Gift

· Ashok K Bhatt and Company

· Pawan Plywood and Hardware

· Rhulbhai Contractors

· Sangam bio Dynamic

· Shohag Agro and Farm Equipments

· Sikko Bio-tech, Ahmedabad

· Sikko Sprayers Private Limited

· Spectrum Either Limited

Customers :

OEM’s

· Aamitya Agro Seeds

· Akash Agro Cenmtre

· Amar Agro Centre

· Anand Agro Chemicals

· Avadh Agro Centre

· Balmukund Agro Centre

· lBapasitaram Agro Centre

· Bhaliya Agro

· Bhaskar Agro Chemicals

· Bhavanil Traders

· Chourasia Krishi Kendra

· Darbar Krushi Seva Kendra

· Deep Krishi Sewa Kendra

No. of Employees :

150 (Approximately)

Bankers :

Bank of India, Sarkhej Gandhi Nagar Highway Branch, 6-7 Ground Floor, Shapath IV, Opposite Karnavati Club, S.G. Highway, Ahmedabad-380051, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Bank of India CC A/C (Secured by hypothecation of stocks)	0.000	4.815
Bank of India (Term Loan) (Secured by factory building and machinery)	6.339	8.239
Total	6.339	13.054

Banking Relations :	--
Auditors :
Name :	Ashok K Bhatt Chartered Accountant
Address :	401, Ashram Avenue, Behind Kochrab Ashraml, Paldi, Ahmedabad-380006, Gujarat, India
Tel. No.:	91-79-26581529/ 66311529
Email:	ca_akb@yahoo.co.in

CAPITAL STRUCTURE

As on 29.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
460096	Equity Shares	Rs.10/- each	Rs.4.600 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250096	Equity Shares	Rs.10/- each	Rs.2.501 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		2.501	2.001	0.513
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3.545	2.415	2.513
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6.046	4.416	3.026
LOAN FUNDS
1] Secured Loans		6.339	13.054	1.052
2] Unsecured Loans		0.000	0.000	4.010
TOTAL BORROWING		6.339	13.054	5.062
DEFERRED TAX LIABILITIES		0.045	0.002	0.097
TOTAL		12.430	17.472	8.185
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.540	10.607	8.073
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.009	0.009	0.009
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.886	4.262	1.964
	Sundry Debtors	6.522	3.091	3.256
	Cash & Bank Balances	0.057	0.114	0.359
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.068	4.158	3.906
Total Current Assets		13.533	11.625	9.485
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.166	1.865
	Other Current Liabilities	2.961	2.372	8.931
	Provisions	0.525	0.578	0.451
Total Current Liabilities		10.652	4.815	9.382
Net Current Assets		2.881	6.810	0.103
MISCELLANEOUS EXPENSES		0.000	0.046	0.000
TOTAL		12.430	17.472	8.185

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	21.911	15.972	20.311
		Other Income	0.187	0.042	0.025
		TOTAL (A)	22.098	16.014	20.336
Less	EXPENSES
		Manufacturing Expenses	16.075	15.228	18.193
		Increase/(Decrease) in Finished Goods	2.274	(1.675)	0.493
		TOTAL (B)	18.349	13.553	18.686
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.749	2.461	1.650
Less	FINANCIAL EXPENSES (D)		0.804	0.773	0.104
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.945	1.688	1.546
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.342	1.292	0.350
	PROFIT BEFORE TAX (E-F) (G)		1.603	0.396	1.196
Less	TAX (H)		0.473	0.298	0.548
	PROFIT AFTER TAX (G-H) (I)		1.130	(0.098)	0.648
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.415	2.513	1.865
	BALANCE CARRIED TO THE B/S		3.545	2.415	2.513
	Earnings Per Share (Rs.)		6.41	1.98	12.64

Expected Sales (2010-2011): Rs.30.000 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.11	(0.61)	3.19
Net Profit Margin (PBT/Sales)	(%)	7.32	2.48	5.89
Return on Total Assets (PBT/Total Assets}	(%)	6.95	1.78	6.81
Return on Investment (ROI) (PBT/Networth)		0.27	0.09	0.40
Debt Equity Ratio (Total Liability/Networth)		2.81	4.05	4.77
Current Ratio (Current Asset/Current Liability)		1.27	2.41	1.01

LOCAL AGENCY FURTHER INFORMATION

Operation:

During the year the company has earned profit of Rs.1.621 millions as compared to profit of Rs.0.395 millions during the previous year. They hope to perform better in the current year as well as will be in future years.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10104299
Corporate identity number of the company	U51909GJ2000PLC037329
Name of the company	SIKKO INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	310-311, Circle –P, Vejalpur, S.G. Highway, Ahmedabad-380051, Gujarat, India
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	Bank of India, Sarkhej Gandhi Nagar Highway Branch, 6-7 Ground Floor, Shapath IV, Opposite Karnavati Club, S.G. Highway, Ahmedabad-380051, Gujarat, India
Email	sghighway.ahmedabad@bankofindia.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental deed of hypothecation executed by the company in favour of bank of India to secure the modified, revised & increased working capital & term loan aggregate limits of Rs. 15.964 millions
Date of instrument Creating the charge	22.02.2011
Amount secured by the charge	Rs.15.964 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC - STKS / BK DTS - 3.25% OVER BR presently 12.25% P.A. with monthly rests TL I and II - 4% over Br Presently 13.50% p.a. With monthly rests or such other rate as may be prescribed by BK fm time to time Terms of Repayment Cash credit - stocks - on demand / annual review Cash credit - book debts - on demand / annual review Term loan i - 60 monthly installments each of Rs.0.158 millions commencing from after six months from first disbursement Term loan ii - 60 monthly installments each of Rs.0.085 millions commencing from after three months of first disbursement Margin Cash credit - stocks - 25% Cash credit - book debts -40% Term loan i - 28.20% Term loan ii - 26.76% Extent and Operation of the charge First and Exclusive Hypothecation Charge On All Tangible Movable Properties Being Plant and Machinery, Stocks Of Materials and Book Debts and All Other Movable Assets Of The Company To Secure Modified, Revised and Increased Working Cap and Term Loan Aggregate Limit Of Rs 15.964 Millions Alongwith Interest, Addl Int, Penal Int, Liquidated Damages, Costs, Charges, Commission and All Other Amt Due To The Bank From Time To Time Of What So Ever Nature Others Revised limits Rs in millions Cc stock - 5.000 Cc BK dts -(3.000) max cc 5.000 Term in i - 5.864 Term in ii - 5.100 Total aggregate limits – 15.964
Short particulars of the property charged	I) All that mov plant and machinery, equipments whether installed or not and whether lying loose or in cases lying at FAC PREM at Iyava Sanand and office PREM at AHD or else where II) All STK of raw mat / semi fin goods / finished goods / STK in process whether lying at borrower's at FAC PREM at Iyava Sanand and Office Prem at AHD and / or in transit and /or where ever situate III) All the present and future book debts, outstanding, money receivables, claims, bills
Date of latest modification prior to the present modification	15.05.2008
Particulars of the present modification	BK granted new TL ii Rs 5.100 millions , can EPC/ FBP s/l Rs 2.000 millions , Grantd new cc BK dt s/l Rs. 3.000 millions , reviewed TL i fm Rs 9.500 millions to Rs. 5.864 millions and thereby tot agg limits are modified, revised and increased fm Rs. 14.500 millions to Rs. 15.964 millions . Thus first and exclusive hypo CH on all mov prop of company being plant and mach, stks of mat, book debts and all other mov assets has been extended and will operate for Rs. 15.964 Millions w. e. f. 22.02.2011.

Trade References:

• Jinendra Agro Products

Fixed Assets:

• Land
• Factory Building
• Office Building
• Plant and Machinery
• Furniture
• Air Conditioner
• Computer
• Scooter
• EPABX
• Fax Machine
• Trade Marks
• Tempo

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.44.20
UK Pound	1	Rs.72.26
Euro	1	Rs.63.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		47

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.