MIRA INFORM REPORT

Report Date :

28.04.2011

IDENTIFICATION DETAILS

Name :	DECCAN FINE CHEMICALS (INDIA) PRIVATE LIMITED (w.e.f. 23.04.2010)
Formerly Known As :	DECCAN FINE CHEMICALS (INDIA) LIMITED
Registered Office :	8-2-293-82/A/74A, Road No.9, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	24.08.2006
Com. Reg. No.:	01-50967
CIN No.: [Company Identification No.]	U24117AP2006PTC050967
TAN No.: [Tax Deduction & Collection Account No.]	HYDD03907B
PAN No.: [Permanent Account No.]	AACCD9205D
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Importer of Agro Chemicals.

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 1700000
Status :	Recently Commenced Business
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Though the company was incorporated in the year 2006, the company has started its commercial activities recently in the year June 2010. The company achieve sizable turnover in its very first year of operation. Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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. Gayatri
Designation :	Manager of EXIM
Date :	27.04.2011

LOCATIONS

Registered Office :	8-2-293-82/A/74A, Road No.9, Jubilee Hills, Hyderabad - 500033, Andhra Pradesh, India
Tel. No.:	91-40-23601035
Mobile no.:	91-9000333746 (Ms. Gayatri Sharma)
Fax No.:	91-40-23601071
E-Mail :	l.d.reddy@gmail.com gayatri@deccanchemicals.com aspardhasaradhi@nagarjunaagrichem.com hemanath@deccanchemicals.com
Website :	http://www.deccanchemicals.com
Location :	Owned
Factory :	Located at: · Vishakhapatnam

DIRECTORS

(AS ON 03.09.2010)

Name :	Mr. Datla Venkata Satyanarayana Raju
Designation :	Managing Director
Address :	H. No.M-5, Srila Park Pride, Near Chaitanya Junior Collage, Hydernagar, Hyderabad – 500049, Andhra Pradesh, India
Date of Appointment :	04.12.2008
DIN No.:	01641921
Name :	Mr. Kanumuri Venkata Lakshmipathi Raju
Designation :	Director
Address :	Flat No.101, Block – A, KSR Green Valley, Madhavadhara, Vishakhapatnam, India
Date of Appointment :	24.12.2007
DIN No.:	02000929
Name :	Mr. Vamsi Gokaraju
Designation :	Director
Address :	Plot No.211, Street 14, Road 72, Prashasan Nagar, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India
Date of Appointment :	04.12.2008
DIN No.:	02479839
Name :	Mr. Shinichi Fujii
Designation :	Director
Address :	3-1, Marunouchi 2 Chome, chioyoda – KU, Tokyo – 100-8086, Japan
Date of Appointment :	30.07.2009
DIN No.:	02271847
Name :	Mr. Stanislas Andre Therese Leon Lanckriet
Designation :	Director
Address :	55, Alfred Van Campenhoutlaan, 1860 Meise, Belgium
Date of Birth/Age :	30.01.1974
Date of Appointment :	25.10.2009
DIN No.:	02750331
Name :	Mr. Makoto Okabe
Designation :	Director
Address :	4-26-1-6303, Shimomaruko, Ota-Ku, Tokyo 1460092
Date of Birth/Age :	29.08.1960
Date of Appointment :	10.02.2011

KEY EXECUTIVES

Name :	Ms. Gayatri
Designation :	Manager of EXIM

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 03.09.2010)

Names of Shareholders	No. of Shares
Gokaraju Padma Raju	400000
SBVR Prasad	366380
Suryadevara Mani Padma	118800
Kanumuri Venkata Lakshmipati Raju	1250000
Datla Venkata Satyanarayana Raju	600000
Vamsi Gokaraju	15000000
Mitsubishi Corporation, Japan	8385000
Kanumuri Raghu Rama Raju	1250000
Kalidindi Sandeep	400000
Katari Vijayaramraju	280000
Dandu Padmavathi	370000
Dandu Ramesh Raju	230000
Tadiparthi Harshavardhan	250000
Surya R. Kalidindi	131750
Lankapothu Nirmala	180000

(AS ON 30.09.2010)

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	46.89
Directors or relatives of directors	39.19
Others	13.92
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Agro Chemicals.
Exports :
Products :	Agro Chemicals
Countries :	· Taiwan · USA · Japan · Korea · UK
Imports :
Products :	Raw Materials
Countries :	· Japan · Korea · China
Terms :
Selling :	Credit (30 days), Depend
Purchasing :	Credit (30 days), Depend

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

130 (Approximately)

Bankers :

· Canara Bank (Lead Bank) and Andhra Bank

Overseas Branch, Resapuvanipalem, Vishakapatnam – 530001, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In millions)
From Scheduled Banks:
Term Loans – Andhra Bank	337.304	--
Term Loans – Canara Bank	363.525	--
	700.829	--
Working Capital
Andhra Bank	9.629	--
Canara Bank	9.632	--
	19.261
Total	720.090	--
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In millions)
Short Term Loans and Advance
- From Banks	--	--
- From Others	--	41.452
Total	--	41.452

Banking Relations :	--
Auditors :
Name :	Saranga Pani and Company Chartered Accountant
Address :	1-1-719, Gandhi Nagar, Hyderabad – 500080, Andhra Pradesh, India
Tel No.:	91-40-65979525
Mobile No.:	91-9989991515
Email :	cacspani@gmail.com

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
65000000	Equity Share	Rs.10/- each	Rs.650.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
43000000	Equity Share	Rs.10/- each	Rs.430.000 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		430.000	163.816	0.900
2] Share Application Money		0.000	159.805	64.308
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		430.000	323.621	65.208
LOAN FUNDS
1] Secured Loans		720.090	0.000	0.000
2] Unsecured Loans		0.000	41.452	0.000
TOTAL BORROWING		720.090	41.452	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1150.090	365.073	65.208
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		52.417	48.132	28.637
Capital work-in-progress		922.566	281.772	22.405
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	109.924	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	24.577	5.264	0.439
	Other Current Assets	0.000	0.000	0.056
	Loans & Advances	81.519	57.161	9.306
Total Current Assets		216.020	62.425	9.801
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	113.937	42.028	0.249
	Other Current Liabilities	26.236	0.996	0.066
	Provisions	3.367	0.465	0.000
Total Current Liabilities		143.540	43.489	0.315
Net Current Assets		72.480	18.936	9.486
MISCELLANEOUS EXPENSES		102.627	16.233	4.680
TOTAL		1150.090	365.073	65.208

KEY RATIOS

PARTICULARS	31.03.2010	31.03.2009	31.03.2008
Debt Equity Ratio (Total Liability/Networth)	2.01	0.26	0.00
Current Ratio (Current Asset/Current Liability)	1.50	1.44	31.11

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered Office of the company has been shifted from Plot No.211, Road No.14, Prashasan Nagar, Hyderabad – 5200033, Andhra Pradesh, India, to the present address w.e.f. 20.08.2008.

OPERATIONS

The production facilities at Tuni have been constructed with modern technology meeting international standards. The Company has successfully completed green field project execution. Trial production process is running smoothly thereby coming up with consistent quality of the product meeting the standard norms. The company is planning for an additional line of manufacture to meet the customers demand.

FORM 8:

Corporate identity number of the company	U24117AP2006PTC050967
Name of the company	DECCAN FINE CHEMICALS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	8-2-293/82/A/74A, Road No.9, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India l.d.reddy@gmail.com
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Canara Bank (Lead Bank) and Andhra Bank Overseas Branch, Resapuvanipalem, Vishakapatnam – 530001, Andhra Pradesh, India vsp2377@canbank.co.in
Nature of instrument creating charge	Letter Evidencing Deposit of Title Deeds dated 01.10.2010 for additional limit EM Facility Agreement (Consortium Term Loan-Second) Interse Agreement between Canara Bank and Andhra Bank
Date of instrument Creating the charge	01.10.2010
Amount secured by the charge	Rs.1235.200 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Term Loan: Canara Bank: BASE Rate +4.50% +1.00% (Term Premia) =13.50% Working Capital: Canara Bank Re.exp. Credit- 9.50% P.A PCFC / BRD - Libor+ 200BPS Andhra Bank: Term Loan base Rate + 4.75%TP Terms of Repayment: Canara Bank – Additional Term Loan: Repayable in 72 months with repayment holiday till march 2012 as under: Rs.0.1262 Cr.x 71 Months Rs.0.1298 Cr.x 1 Month (Last Installment) Interest to be recovered as and when due, including the moratorium period. Andhra Bank – Additional Term Loan repayable in 24 quarterly installments with moratorium period of 19 months from the date of first disbursement Margin: Canara Bank For Additional Term Loan: 30.17% Andhra Bank: For Additional Term Loan: 30.17% Extent and Operation of the charge: 1. Pari-Passu first charge on over land and building, plant and machinery, furniture and fixtures and all other mislenatious fixed assets of the company present and future 2.Pari-Passu first charge on over chargeable current assets of the company present and future]
Particulars of the property charged	Andhra Bank: Term Loan: First Charge on Entire Block, Existing and Proposed, for Existing Term Loans of consortium as well as proposed TL II on pari-passu basis with Canara Bank. Andhra Bank: PC/FUDB: Hypothecation of Stocks and Receivables on pari-passu basis Andhra Bank: FLC/ILC/BG: LC- Raw Material Imported Under LC BG- Counter Guarantee of the company and its directors Canara Bank: Term Loan: P and M other fixed assets created out of present Tl Rs.257.000 Millions Project Cost PP I Charge Term Loan: Existing Prime Security for TL I to continue - L and B; P and M and other fas created out of TL Rs.959.700 Millions Project Cost PP I Charge Canara Bank: L and B, P and M Other Fixed Assets acquired at estimated cost of Rs.959.700 Millions (Project Cost) Entire Factory Land and Building belonging to the company at Rajavaram and Kesavaram (v) Payakarao pet(m) Vishakapatnam Dist. Plant and Machinery Furniture and Fixtures and all other fixed assets of Co Chargeable Current Assets of the company consisting of stock of Raw Materials, Semi-Finished Goods, Finished Goods, Consumables Stores and Spares and receivables.
Particulars of the present modification	Enhancement of Overall Limit from Rs.1058.500 Millions to Rs.12365.200 Millions.

FIXED ASSETS

· Land

· Furniture and Fixtures

· Office equipments

· Computers and Peripherals

· Lab Equipment

· Vehicles

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 :

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.44.40
UK Pound	1	Rs.73.26
Euro	1	Rs.65.17

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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		26

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.