MIRA INFORM REPORT

Report Date :

29.04.2011

IDENTIFICATION DETAILS

Name :	SUBRAY CATAL CHEM PRIVATE LIMITED
Registered Office :	G-44, D Wing Dewan Apartment, 1^st Co-Operative Housing Society, Vasai East, Thane – 401210, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	29.12.1988
Com. Reg. No.:	11-050207
CIN No.: [Company Identification No.]	U24100MH1988PTC050207
TAN No.: [Tax Deduction & Collection Account No.]	MUMS43538F
PAN No.: [Permanent Account No.]	AAACS9934Q
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of fine chemicals, specialty chemicals and resins.

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 350000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established 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 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 :	Mr. S.S. Hossmane
Designation :	Director
Contact No.:	91-9820032308
Date :	28.04.2011

LOCATIONS

Registered Office :	G-44, D Wing Dewan Apartment, 1^st Co-Operative Housing Society, Vasai East, Thane – 401210, Maharashtra, India
Tel. No.:	91-250-2392414
Mobile No.:	91-9820032308 (Mr. S.S. Hossmane)
Fax No.:	91-250-2390117
E-Mail :	subray@vsnl.com
Area :	2500 sq. ft.
Location :	Owned
Factory :	Plot No. 31 B, Nanji Industrial Areas, No. 200/1/2, Village, kharadpada Naro, Mumbai, India

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Subray Hosmane
Designation :	Director
Date of Appointment :	29.12.1995
Name :	Mrss. Veena Hosmane
Designation :	Director
Date of Appointment :	20.01.1989

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Mrs. Lalita Hosmane	42020
Mrs. Veena Hosmane	850650
Mr. Subray Hosmane	772500
M/S. Lalita Chem Industries Private Limited	1939000
Mrs. Veena Hosmane Jointly with Mr. Subray Hosmane	120000
Mrs. Veena Hosmane. Jointle with Mr. Subray Hosmane	41000
Mr. Ambalal Patel	20500
H A Patel	61450
Mr. Navin Patel	102500
Mr. Dinesh Shastry	100
Vidya Shastry	40
Geeta Sudhakar	100
Divya Sudhakar	40
Mr. G L Bhatt	100
Total	3950000

AS ON 30.09.2010

Category	Percentage
Bodies corporate	49.08
Directors or relatives of Directors	46.76
Other top fifty shareholders	4.16
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of fine chemicals, specialty chemicals and resins.
Imports :
Products :	Polyethylene War
Countries :	· Hong Kong · Malaysia · Taiwan · Europe
Terms :
Selling :	Cash, Credit (30 days, 60 days)
Purchasing :	Cash, Credit (30 days, 60 days)

PRODUCTION STATUS (AS ON 31.03.2009)

Particulars	31.03.2009
Licensed Capacity	N.A.
Installed Capacity
Rubber Chemicals	Nil
PVC Stabilizer, Metallic Stearates, Tin Stabilizers and Fatty Acids and Salts	6000 MT
Actual Production
PVC Stabilizer, Metallic Stearates	2465593
Fatty Acid, Waxes and Others	152740
Plasticizers	2704229

GENERAL INFORMATION

Customers :

· End Users

· OEM’s

· Others

· Manufacturer

No. of Employees :

50 (Approximately)

Bankers :

· Bank of India, Bhayandar Br. Bharati Apartments, 1st Floor, Off. B. P. Road, Bhayandar (East), Dist. Thane, Bhayandar – 401105, Maharashtra, INDIA

· ICICI Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Overdraft from syndicate Banks	(0.041)	7.177
Ban of India CC A/c (secured against hypothecation / pledge of stock in trade guaranteed by some of directors, seconds charge on building and plant and machinery)	65.046	0.000
ECB (Guaranteed by Bank of India)	56.448	72.533
Bassein Catholic (VH Loan)	1.232	1.601
ICICI Bank Vehicle Loan	0.000	0.101
ICICI Property Loan	0.568	0.677
Total	123.253	82.089
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Shareholders	16.018	19.018
Differed sales tax	7.359	7.776
Total	23.377	26.794

Banking Relations :	--
Auditors :
Name :	Keshav Chaubay and Company Chartered Accountant
Address :	124/2, Ostwal Ornate, Jesal Park, Bhayender (East), Mumbai – 401105, Maharashtra, India

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3950000	Equity Shares	Rs.10/- each	Rs.39.500 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		39.500	19.500	12.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		48.344	43.338	40.716
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		87.844	62.838	53.216
LOAN FUNDS
1] Secured Loans		123.253	82.089	21.677
2] Unsecured Loans		23.377	26.794	19.392
TOTAL BORROWING		146.630	108.883	41.069
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
Loan from Directors		28.311	21.547	24.415
TOTAL		262.785	193.268	118.700
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.962	13.974	15.695
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		25.425	25.422	25.425
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	93.634	91.465	90.066
	Sundry Debtors	65.151	56.947	59.772
	Cash & Bank Balances	134.503	19.312	0.755
	Other Current Assets	9.752	9.782	12.605
	Loans & Advances	13.198	11.601	19.447
Total Current Assets		316.238	189.107	182.645
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	90.865	33.500	102.832
	Other Current Liabilities	0.000	0.000	2.235
	Provisions	1.976	1.735	0.000
Total Current Liabilities		92.841	35.235	105.067
Net Current Assets		223.397	153.872	77.578
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		262.784	193.268	118.700

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	431.508	422.202	354.032
		Other Income	1.004	1.823	1.492
		TOTAL (A)	432.512	424.025	355.524
Less	EXPENSES
		Raw material consumed	325.925	335.624	256.213
		Increase / Decrease in stock	15.538	(19.932)	(8.674)
		Other manufacturing expenses	14.748	14.655	13.313
		Excise Duty and Cess	34.312	46.777	51.684
		Administrative and other expenses	22.543	23.763	16.223
		Selling expenses	5.938	7.316	11.317
		TOTAL (B)	419.004	408.203	340.076
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13.508	15.822	15.448
Less	FINANCIAL EXPENSES (D)		5.102	8.572	6.368
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.406	7.250	9.080
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.895	2.077	2.127
	PROFIT BEFORE TAX (E-F) (G)		6.511	5.173	6.953
Less	TAX (I)		1.502	2.547	2.025
	PROFIT AFTER TAX (G-I) (J)		5.009	2.626	4.928
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		36.079	33.457	28.532
	BALANCE CARRIED TO THE B/S		41.085	36.079	33.457
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	NA	4.328	4.420
	TOTAL EARNINGS		NA	4.328	4.420
	IMPORTS
		C.I.F. Value of Imports	NA	95.489	53.602
	TOTAL IMPORTS		NA	95.489	53.602
	Earnings Per Share (Rs.)		1.26	0.66	1.24

Particulars	31.03.2011
Sales Turnover (Approximately)	450.000

Expected Sales (2011-2012) : Rs.500.000 millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.58	0.61	1.38
Net Profit Margin (PBT/Sales)	(%)	1.50	1.22	1.96
Return on Total Assets (PBT/Total Assets}	(%)	1.97	2.54	3.50
Return on Investment (ROI) (PBT/Networth)		0.07	0.08	0.13
Debt Equity Ratio (Total Liability/Networth)		2.72	2.29	2.74
Current Ratio (Current Asset/Current Liability)		3.40	5.36	1.73

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details :

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
For Materials	89.191	30.951	98.827
For Others	1.674	2.549	4.005
Total	90.865	33.500	102.832

SALES

The sales for the year 2009-10 are Rs.431.508 Millions as against Rs.422.202 millions in previous year. So the overall growth in the sales was 2.20 %.( Rs.9.306 millions). They have achieved this in the last year even though there was huge crisis in the market. The margin on the sales were under pressure during the year also due to high competition and financial cost. The fluctuation in the import prices of raw materials also affected the margins. In spite of these adverse impacts, the Company has earned profit of Rs 5.006 millions during the year Considering the performance that we had made in this year, they hope, they can achieve a turnover of Rs. 500.000 millions during the year 2010-11. They have number of orders in our hand including export orders and they hope that we can execute those orders in time with the help of their bankers.

FINANCE

They have increased their Authorized share capital from Rs.19.500 millions to Rs. 40.000 millions and Paid-up share capital from Rs.19.500 millions to Rs.39.500 millions during the year 2009-10 to meet the fund requirements. Further they have not declared any dividends in the last year and current year and the profits have been ploughed back in the business to have a stable and healthy financial position.

FORM : 8

Corporate identity number of the company	U24100MH1988PTC050207
Name of the company	SUBRAY CATALCHEM PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	G-44 D WING DEWAN APARTMENTS1I CO OP HSG SOCIETY VASAI EAST THANE Maharashtra INDIA 401210
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Others
Particular of charge holder	Bank of India, Bhayandar Br. Bharati Apartments, 1st Floor, Off. B. P. Road ,Bhayandar (East),Dist. Thane, Bhayandar – 401105, Maharashtra, INDIA
Nature of instrument creating charge	Record Equitable Mortgage (EM) by deposit of title deeds
Date of instrument Creating the charge	23/08/2010
Amount secured by the charge	RS. 229.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest CC (St. and BD),EPC/FBP:0.50% below BPLR presently12% p.a. with monthly. Rests ; LC, Buyer Credit, BG:As per Bank's extant guidelines or at such other rate/s of int. as may be notified by Bank from time to time. Terms of repayment L/C I/F(DP/DA) 90 days: On due date , Other facilities : On demand. Margin CC(Stocks):15%,CC(BD 90 days),EPC/FBP:25%; LC : Upto limit Rs.100.000 millions-10% by way of TDR and Above Rs.100.000 millions-15% by way of TDR; Bank Guarantee: 25% by way of TDR or as specified by the bank from time to time. Extent and operation of the charge The Bank shall have the First charge on all assets& property charged to secure the repayment together with interest , penal interest , costs , charges and expenses secured and all liabilities and indebtedness whatsoever of the company to the Bank . Other Revised Facilities and Limits (Rs. in millions):A)WCFBL Rs.870, i)CC(Stock) Rs.70.000, ii) CC(Book debts 90 days) Rs.60.000, iii)EPC/FBP Rs.5.000, B)NFBL Rs.142.500 : i) LC Rs.140.000, ii) Buyer Credit (Rs.90.000) C) Bank Guarantee Rs.2.500 Aggregate Rs.229.500.
Short particulars of the property charged (Including location of the property)	1.Hypothecation of Stock, Book Debts, Plant & Machinery at Plot No.71,Tarapur Industrial Area, MIDC Boisar and at Plot No. 32,S No.200/1/2, B.Nanji Industrial Estate,. 2. Village Kharpada, Dadra Nagar Haveli, Silvassa, EM of Immovable property. Details of plant & machinery as per valuation report. 3. EM of all land and buildings , plant, machinery, furniture’s, fixtures and fittings and structures erected or installed thereon and to be erected or installed thereon and 4. situated at-1)Plot No.N -71,Tarapur Industrial Area, MIDC Boisar ,within village limits of Pamtembhi and outside the limits of Municipal Council in rural area,Taluka and Regstration Sub district Palghar, 5. District and Registration District Thane containing by admeasuring 1800 Sq.mtrs or thereabouts. 2) Plot No.31, S No.200/1/2, B. Nanji Industrial Estate, Village Kharpada, Dadra and Nagar Haveli, Silvasa, 6. admeasuring 1402.65 Sq.mtrs. 3) Shop No.44, Dewan Aptt.II CHS Ltd.,D Wing.Vasai (East), Dist.Thane, admeasuring 330 Sq.ft. B/U Plot No.181to 183 S. No.37 Village Navghar Tal. Vasai Dist. Thane.
Particulars of the present modification	1st Modification. Additional security of EM of immovable properties of company situated at 1)Plot No.N -71,Tarapur Industrial Area, Boisar 2) Plot No.31, S No.200/1/2, B. Nanji Industrial Estate,Village Kharpada, Dadra and Nagar Haveli,3) Shop No.44, Dewan Aptt.II CHS Limited, D Wing. Vasai (East), is created to secure the existing aggregate limit of Rs.229.500 millions.

FIXED ASSETS :

· Land

· Factory Building

· Plant and Machinery

· Storage Tank

· Generator Set

· Computer Systems

· Motor Vehicles

· Fire Extinguishers

· Borewell

· Electronically Fittings

· Motor Car

· Furniture and Fixtures

· Office Equipments

· Office Premises

· Air Conditioners

· Bicycle

· Weighing Scale

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. 44.33
UK Pound	1	Rs. 74.13
Euro	1	Rs. 65.78

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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	NO
--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.