MIRA INFORM REPORT

Report Date :

19.04.2011

IDENTIFICATION DETAILS

Name :	GUJARAT DYES AND CHEMICALS COMPANY PRIVATE LIMITED UNITED CHEMIE (PROPRIETOR GUJARAT DYES AND CHEMICALS COMPANY PRIVATE LIMITED)
Registered Office :	Anupam No.2, 2^nd Floor, Swastik, Char Rasta, Navarangpura, Ahmedabad – 380 009, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.04.1981
Com. Reg. No.:	04-004283
CIN No.: [Company Identification No.]	U24110GJ1981PTC004283
TAN No.: [Tax Deduction & Collection Account No.]	AHMG01449A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Dealer of Chemicals, Synthetics, Coal Tar Dyes, Pharmaceuticals, Medicinal Preparation of all kinds and descriptions.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 203000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered good for normal 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

LOCATIONS

Registered Office :	Anupam No.2, 2^nd Floor, Swastik, Char Rasta, Navarangpura, Ahmedabad – 380 009, Gujarat, India
Tel. No.:	91-79-26445940/ 5962
Fax No.:	91-79-26300415/ 26406229
E-Mail :	unitedchemie@icenet.net info@unitedchemie.com
Website:	http://www.unitedchmie.com

DIRECTORS

As on 30.09.2010

Name :	Mr. Jaiprakash Anandilal Goenka
Designation :	Whole Time Director
Address :	9, Devangpark Society, Near Old Sachivalaya, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	28.10.1943
Date of Appointment :	23.04.1981
DIN No.:	01563886
Name :	Mr. Shreekant Jaiprakash Goenka
Designation :	Whole Time Director
Address :	9, Devangpark Society, Near Old Sachivalaya, Ahmedabad – 380 015, Gujarat, India
Date of Birth/Age :	16.02.1972
Date of Appointment :	11.05.2004
DIN No.:	01898799
Name :	Mr. Govindprasad Bhagwatiprasad Birla
Designation :	Director
Address :	7/163, Swaroop Nagar, Kanpur, Uttar Pradesh, India
Date of Birth/Age :	08.10.1949
Date of Appointment :	01.04.1986
DIN No.:	00204677
Name :	Mr. Laxmikant Jaiprakash Goenka
Designation :	Director
Address :	303, Totem Banjara, Beside Old Bhayaangar Studio, Banjara Hills, Road N, Hyderabad - 500 034, Andhra Pradesh, India
Date of Birth/Age :	12.02.1975
Date of Ceasing :	29.03.2008
DIN No.:	01928253

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Equity Shares	No. of Preference Shares
Goenka Jaipurakash Anandilal	2940	--
Goenka Laxmikant Jaiprakash	1010	7000
Goenka Shreekant Jaiprakash	1010	7000
Goenka Vijaya Jaiprakash	3020	--
G.J. Chemicals Private Limited, India	1000	8000
Vijayshree Impex Private Limited, India	1000	8000
Goenka Nupoor Sheekant	20	--
Total	10000	30000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	20.00
Directors or relatives of directors	80.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Dealer of Chemicals, Synthetics, Coal Tar Dyes, Pharmaceuticals, Medicinal Preparation of all kinds and descriptions.

Products :

Product Description	ITC Code
S O Dyes	3204.29

Acid Dyes

Direct/Direct Fast Dyes (Powder)

Leather Dyes

Liquid Dyes For Paper

Exports :

Countries :

Far East Countries like Thailand, Hong Kong, Taiwan, South Korea and Japan as well as to the Western Countries like Italy, Germany, United Kingdom, U.S.A. etc.

PRODUCTION STATUS (As on 31.03.2010)

Licenced Capacity: No licence is required

Installed Capacity: Not available as product mix keeps on changing as per local and export requirements which brings variation in capacity.

Particulars	Unit	Actual Production
Dyes	Kgs	72110
Liquid Dyes	Kgs	1755400

GENERAL INFORMATION

Bankers :

Central Bank of India, Gandhi Road, Ahmedabad

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Central Bank of India
Terms Loan	2.095	0.431
Cash Credit Facility	3.484	3.136
EPC	1.701	0.000
Usance bill (Aforsaid facilities are secured by all tangible movable property such as raw materials, finished goods work-in –progress and bills of exchange etc and land and building of the company and personal guarantee of two of the directors)	15.997	21.910
Total	23.277	25.477

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Directors	2.377	2.094
From Shareholders	1.978	1.772
Total	4.355	3.866

Banking Relations :	--
Auditors :
Name :	Kishan M. Mehta and Company Chartered Accountants
Address :	6, Premchand House Annexe, Old High Court Way, Ashram Road, Ahmedabad – 380 009, Gujarat, India
Tel No.:	91-79-66055570
Fax No.:	91-79-66311570
E-Mail:	kishanmmehtaco@indiatimes.com kishanmmehtaco@gmail.com

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15000	Equity Shares	Rs.100/- each	Rs.1.500 Millions
30000	12% Redeemable Preference Shares	Rs.100/- each	Rs.3.000 Millions
	Total		Rs.4.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares (Out of which 3580 Equity Shares were issued as fully paid for consideration than cash)	Rs.100/- each	Rs.1.000 Million
30000	12% Redeemable Preference Shares	Rs.100/- each	Rs.3.000 Millions
	Total		Rs.4.000 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		4.000	4.000	4.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		46.672	27.716	16.448
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		50.672	31.716	20.448
LOAN FUNDS
1] Secured Loans		23.277	25.477	32.284
2] Unsecured Loans		4.355	3.866	3.447
TOTAL BORROWING		27.632	29.343	35.731
DEFERRED TAX LIABILITIES		0.000	0.000	0.330
TOTAL		78.304	61.059	56.509
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.631	8.078	8.109
Capital work-in-progress		0.430	0.118	0.026
INVESTMENT		0.091	0.091	0.091
DEFERREX TAX ASSETS		0.338	0.453	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.653	10.509	11.174
	Sundry Debtors	51.358	38.156	41.619
	Cash & Bank Balances	14.565	5.142	5.184
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	15.317	12.250	7.681
Total Current Assets		90.893	66.057	65.658
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	20.646	8.845	13.985
	Other Current Liabilities	0.506	0.783	1.216
	Provisions	6.927	4.110	2.174
Total Current Liabilities		28.079	13.738	17.375
Net Current Assets		62.814	52.319	48.283
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		78.304	61.059	56.509

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	178.977	180.658	117.339
		Other Income	0.729	0.975	0.351
		TOTAL (A)	179.706	181.633	117.690
Less	EXPENSES
		Cost of Goods Sold	21.313	0.292	4.550
		Raw Material Consumed	75.261	124.659	67.348
		Manufacturing Expenses	19.710	14.906	14.312
		Payment to & Provisions for Employees	13.021	8.214	7.366
		Other Expenditure	20.606	14.016	13.478
		TOTAL (B)	149.911	162.087	107.054
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		29.795	19.546	10.636
Less	INTEREST (D)		2.230	3.324	1.878
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		27.565	16.222	8.758
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.069	1.818	2.037
	PROFIT BEFORE TAX (E-F) (G)		25.496	14.404	6.721
Less	TAX (H)		6.150	3.500	1.610
	PROFIT AFTER TAX (G-H) (I)		19.346	10.904	5.111
	EARNINGS IN FOREIGN CURRENCY
		Direct Export calculated on F.O.B.	140.772	168.036	98.019
	TOTAL EARNINGS		140.772	168.036	98.019
	Earnings Per Share (Rs.)		1934.56	1090.38	511.08

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	10.77	6.00	4.34
Net Profit Margin (PBT/Sales)	(%)	14.25	7.97	5.73
Return on Total Assets (PBT/Total Assets}	(%)	24.16	19.43	9.11
Return on Investment (ROI) (PBT/Networth)		0.50	0.45	0.33
Debt Equity Ratio (Total Liability/Networth)		1.10	1.36	2.60
Current Ratio (Current Asset/Current Liability)		3.24	4.81	3.78

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Name of the company

GUJARAT DYES AND CHEMICALS COMPANY PRIVATE LIMITED

Presented By

Mr. Jaiprakash Goenka

1) Date and description of instrument creating the change

Agreement of Hypothecation to Secure cash credit against goods dated 09.06.1983

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

Rs.0.350 Million

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

All tangible movable property such as products stock-in-trade and goods of the borrowers which now or here after from time to time during this security shall be brought in, store or be in or about the borrowers in Ahmedabad or any where else. Consisting of finished goods and work –in – process, ciz. Orange HZR, yellow H4G, Purple H8B, Direct Balck, Synthetics Coal Tar Dyes

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

1) All securities mentioned under column No. 3 will carry compound interest @ 16.5% p.a.

2) Borrower can not without charge, mortgage consent in writing create charge, mortgage pledge or lien or encumbrance on the assets hypothecated to the bank

3) the margin would be maintained at 40%

4) The borrower also agree to undertake to reimburse the amount mentioned under column No. 2 of the form together with interest, discount, charge, cost, commission etc. accrued thereon whenever demanded

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

Central Bank of India, Gandhi Road, Ahmedabad

6) Date and brief description of instrument modifying the charge

Supplementary deed of hypothecation dated 28.02.2005 and Memorandum of Entry dated 28.02.2005 fore extension of charge of immovable property by way of already deposited title deeds etc, by the company with central bank of India, Gandhi Road Branch, Ahmedabad

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 existing facilities have been increased form Rs. 14.410 Millions to Rs. 27.800 Millions by the charge of existing security including the extension of charge of immovable properties already given earlier as follows:

Nature of Facility	Amount (Rs. In Millions)
Cash Credit (Hypothecation)	1.200
EPC	1.000
EBP/ EBD	11.000
L/C (IMP/Inl/ DP/DA/ 90 Days)	14.000
Bank Guarantee	0.600
Total	27.800

Contingent liabilities not provided for:

Particulars	31.03.2010 (Rs. in millions)
(i) Excise duty and penalty thereon as per the order of the of Central Excise Appellate Tribunal along with proceedings for the offences not acknowledged by the company subject to quantification	1.595
(ii) Electricity charges (net of payment) as per demand letter of Ahmedabad Electricity Company Limited but not acknowledged by the company	0.142
(iii) Letter of credit	13.994

FIXED ASSETS:

· Leasehold Land

· Building

· Plant and Machinery

· Electrical Installation

· Furniture, Fixture

· Office Equipments

· Vehicles

· Capital work in progress

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.44.27
UK Pound	1	Rs.72.07
Euro	1	Rs.63.66

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	5
--PROFITABILIRY	1~10	5
--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	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.