MIRA INFORM REPORT

Report Date :

26.04.2011

IDENTIFICATION DETAILS

Name :	SHUBHAM STARCH CHEM PRIVATE LIMITED
Registered Office :	59/17, New Rohtak Roadkarol Bagh, New Delhi – 110005, Delhi
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	19.06.1995
Com. Reg. No.:	55-069903
CIN No.: [Company Identification No.]	U74899DL1995PTC069903
PAN No. :	AAECS2076D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Trader of Starch Powder And Chemicals

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 131000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business 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 :	Mr. Anand Aggarwal
Designation :	Chief Executive Officer
Contact No.:	91-9811084658
Date :	19.04.2011

LOCATIONS

Registered Office :	59/17, New Rohtak Roadkarol Bagh, New Delhi – 110005, Delhi, India
E-Mail :	Cs.faridabad@gmail.com efiling.2007@gmail.com
Website :	http://www.shubhamstarch.com
Location :	Owned
Corporate Office :	B-6,Lower Ground Floor, Kalkaji, New Delhi – 110005, India
E-Mail :	subashgupta_cs@yahoo.co.in
Factory 1 :	287-C, Hsidc Industrial Estate, Sector 59, Faridabad – 121004, Haryana, India
Tel. No.:	91-129-4155358 / 4036358 / 4031869 / 4061869
Mobile No.:	91-9811084658 (Mr. Anand Aggarwal)
Fax No.:	91-129-4154358
E-Mail :	info@shubhamstarch.com md@shubhamstarch.com
Area :	11000 Sq.ft.
Location :	Owned
Factory 2 :	B-214, Butibori, MIDC, Nagpur, Maharashtra, India
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Mrs. Neeta Aggarwal
Designation :	Director
Address :	H. No. 414, Sector – 8, Faridabad - 121006, Haryana, India
Date of Birth/Age :	25.10.1964
Qualification :	M.A.
Experience :	15 Years
Date of Appointment :	30.01.2009
DIN :	00038707
Name :	Mr. Shubham Aggarwal
Designation :	Director
Address :	H. No. 414, Sector – 8, Faridabad - 121006, Haryana, India
Date of Birth/Age :	25 Years
Qualification :	M.B.A
Experience :	4 Years
Date of Appointment :	09.01.2009
DIN :	01938865

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Mr. Aditya Goyal	7480
Mr. Anandd Aggarwal	112444
Anandd Aggarwal HUF	125405
Mrs. Anju Bansal	1700
Anubha Aggarwal	280
Mr. Atul Goyal	6900
Akash Aggarwal	2180
Basant Kumar	6880
Mrs. Beena Aggarwal	1500
Mrs. Chanchal Aggarwal	1280
Janak Narula	3360
Kaushal Krishna	1800
Manoj Gupta	8400
Manju	280
Mannjul Bansal	3100
Mrs. Neeta Aggarwal	27467
Neela Narula	4950
Prem Lata Aggarwal	31075
P K Aggarwal	1500
Poonam Kapoor	4700
Ranjana Gupta	64395
Rakesh Gupta	18925
R K Aggarwal	2700
Rachna Gupta	6100
Seema Goyal	1500
Suresh Kumar	1500
Sumit Kumar	1500
Shubham Aggarwal	15425
Sudhir Bansal	1900
Savita Goyal	1900
Tista Kapoor	1600
Tannu Aggarwal	3750
Tara Gupta	1425
Vipin Aggarwal	3200
Mr. V K Gupta	1500
Mr. Vijay Gupta	3375
Total	483376

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of Starch Powder And Chemicals
Products :	Raw Starch (Maize Starch, Tapioca Starch, Potato Starch) U.F. Resin Electronic Weighing Scales Computers Photocopiers Office Automation equipments Software Development Paper Textile Pharma Adhesive Food Applications.
Exports :
Products :	Cationic Starch
Countries :	Bangladesh
Imports :
Products :	Quat 188
Countries :	USA
Terms :
Selling :	Cash / Credit
Purchasing :	L/C / Credit

GENERAL INFORMATION

Supplier :

• Dow Chemical

Customers :

• End Users
• Wholesalers

No. of Employees :

70 (Approximately) In office – 20 / In Factory – 30 / In Branches - 20

Bankers :

· Union Bank of India, Sector– 7, Faridabad – 121006, Haryana, India

· IDBI Bank Limited, 1^st Floor, Videocon Tower, E-1, Jhandewalan Extension, New Delhi – 110055, Delhi, India

Facilities :

Cash Credit / Term Loan

Secured Loan (Rs.in million)	31.03.2010	31.03.2009
Cash Credit Limit
IDBI bank (Prior of Union bank of india )	40.453	15.099
[Secured by hypothecation of Stock, Work in progress, book debts both present and future lying and guaranteed by the directors of the company]
Total	40.453	15.099

Banking Relations :	Satisfactory
Auditors :
Name :	Manoj Singla and Associates Chartered Accountant
Address :	B-58, 1^st Floor, Nehru Ground NIT, Faridabad – 121001, Haryana, India
Tel. No. :	91-129-2410270 / 2283418
PAN NO. :	AEZPS4808K
Related Party :	Tirupati Industrial Chemicals Private Limited Akash Industrial Kartik Industries Tirupati Traders

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500,000	Equity Share	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
483,376	Equity Share	Rs.10/- each	Rs.4.834 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500,000	Equity Share	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
383,376	Equity Share	Rs.10/- each	Rs.3.834 Millions
	Share Application Money		Rs.17.000 millions
	Total		Rs.20.834 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		20.834	6.223	8.969
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		11.932	8.522	5.574
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		32.766	14.745	14.543
LOAN FUNDS
1] Secured Loans		40.453	15.099	10.465
2] Unsecured Loans		5.787	9.434	9.068
TOTAL BORROWING		46.240	24.533	19.533
DEFERRED TAX LIABILITIES		0.627	0.468	0.228
TOTAL		79.633	39.746	34.304
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12.967	11.914	9.293
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	14.190	22.316	25.853
	Sundry Debtors	57.363	5.188	4.979
	Cash & Bank Balances	0.714	1.857	0.303
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.366	4.145	0.317
Total Current Assets		73.633	33.506	31.452
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.402	3.207	6.024
	Other Current Liabilities	0.282	2.387	0.356
	Provisions	0.300	0.105	0.095
Total Current Liabilities		6.984	5.699	6.475
Net Current Assets		66.649	27.807	24.977
MISCELLANEOUS EXPENSES		0.017	0.025	0.034
TOTAL		79.633	39.746	34.304

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	150.180	83.102
		Other Income	0.017	0.010
		TOTAL (A)	150.197	83.112
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	142.669	78.429
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7.528	4.683
Less	FINANCIAL EXPENSES (D)		5.491	3.366
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.037	1.317
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.572	0.474
	PROFIT BEFORE TAX (E-F) (G)		1.465	0.843
Less	TAX (I)		0.460	0.145
	PROFIT AFTER TAX (G-I) (J)		1.005	0.698
	Earnings Per Share (Rs.)		2.67	1.43

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.67	0.84	NA
Net Profit Margin (PBT/Sales)	(%)	0.98	1.01	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.69	1.86	NA
Return on Investment (ROI) (PBT/Networth)		0.04	0.06	NA
Debt Equity Ratio (Total Liability/Networth)		1.62	2.05	1.79
Current Ratio (Current Asset/Current Liability)		10.54	5.88	4.86

LOCAL AGENCY FURTHER INFORMATION

Trade References :

• HBR Chemicals
• Triveni Starch and Chemicals

BACKGROUND :

Shubham Starch Chem Private Limited company is a private limited company the company manufacture and trade in starch powder and chemicals

Form 8:

Corporate identity number (CIN) Foreign company registration number	U74899DL1995PTC069903
Name of the Company	SHUBHAM STARCH CHEM PRIVATE LIMITED
Address	59/17, New Rohtak Road, Karol Bagh, New Delhi – 110005, India
This form is for	Modification of Charge
Charge identification (ID) number of the charge to be modified	10171952
Type of Charge	Book Debts Floating Charge Others Immovable Property Movable Property (Not Being Pledge) Floating Charge
Particulars of the charge holder	IDBI Bank Limited, 1^st Floor, Videocon Tower, E-1, Jhandewalan Extension, New Delhi – 110055, Delhi, India Email : sameer.kumar@idbi.co.in
Nature or description of the instrument(s) creating or modifying the charge	Loan Cum Hypothecation agreement dated 26th Day of November 2010 for enhancement of its existing CC limit of Rs.37.500 Million to Rs.47.500 Million and Fresh Term Loan of Rs.2.500 Million, thus total grant of loan is Rs.50.000 Million ( Cc limit -47.500Million + Term Loan 2.500 Million )
Date of the instrument creating or modifying the charge	26.11.2010
Amount secured by the charge	Rs.50.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest: on Cash Credit : Base Rate +5%payable monthly on Term Laon : Base Rate +5%payable monthly Terms of Repayment: Cash Credit Limit : Repayable on demand/On due date Term Loan Limit : Repayable in 36 equally monthly installments each of Rs.0.069 million Margin: on Cash Credit Limit : 25% on stocks and 30 % on book debts upto 90days on Term Loan : 25% Extent and Operation of the charge: on Cash Credit Limit : Primary on Hypothecation of stock present and future and book debts upto 90 days on Term Loan: Exclusive charge over plant and machinery collateral :extension of equitable mortgage of factory property at B-214, Kinhi, Hinga, Nagpur and plot no.287-C,HSIDC Indl area , sector-59, faridabad. and personal guarantee of Shubham Agarwal, Smt Neeta Aggarwal ,Anand Aggarwal Rakesh Kumar Gupta to secure the entire loan of Rs.50.000 million.
Short particulars of the property charged (including location of the property)	Hypothecation of stock present and future and book debts upto 90 days situated at Plt no. 287-C,HSIDC Indl area , sector-59, faridabad personal guarantee of Shubham Agarwal, Smt Neeta Agarwal ,Anand agarwal Rakesh Kumar Gupta extension of equitable mortgage of factory property at B-214, Kinhi, Hinga, Nagpur,Maharastra in the name of the Company extension of equitable mortgage of plot no.287-C,HSIDC Indl area , sector-59, faridabad, Haryana in the name of the Co. extension of equitable mortgage of House no.213, Sector-7A, faridabad, Haryana in the name of Rakesh Kr Gupta equitable mortgage of factory shed no. 14, Ground Floor, Block B Industrial Estate, sector-59, faridabad, Haryana in the name of the Company
Date of instrument modifying the charge	22.08.2009
Particular of the present modification	Cash Credit Limit has been enhanced from Rs.37.500 Million to Rs.47.500 Million and Term Loan of Rs.2.500 Million.

FIXED ASEETS :

• Land
• Building
• Furniture and Fixture
• Office Equipment
• Computer
• Vehicle
• Plant and Machinery
• Measuring Instrument
• Boiler

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.44.45
UK Pound	1	Rs.73.35
Euro	1	Rs.64.78

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		30

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.