MIRA INFORM REPORT

Report Date :

06.08.2011

IDENTIFICATION DETAILS

Name :	PON PURE CHEM PRIVATE LIMITED

Formerly Known As :	PURE CHEMICALS AND SOLVENT PRIVATE LIMITED

Registered Office :	No. 77, Perambur High Road, Chennai-600012, Tamilnadu

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	24.07.1998

Com. Reg. No.:	18-040872

Capital Investment / Paid-up Capital :	Rs.36.752 Millions

CIN No.: [Company Identification No.]	U24111TN1998PTC040872

TAN No.: [Tax Deduction & Collection Account No.]	CHEP02576A

PAN No.: [Permanent Account No.]	AACCP3026E

Legal Form :	Private Limited Liability Company.

Line of Business :	Trader, Distributor and Importer of Industrial Chemicals, Solvents for use in Leather, Textile, Paints, Pharmaceutical Industries etc.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 2300000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established company having fine track. Financial positions is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment. 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

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

LOCATIONS

Registered Office :	No. 77, Perambur High Road, Chennai – 600012, Tamilnadu, India
Tel. No.:	91-44-26161803 to 13
Fax No.:	91-44-26161813 / 814
E-Mail :	pcc77@md3.vsnl.net.in compsec@pure-chemical.com
Website :	http://www.pure-chemical.com

Administrative / Corporate Office :	No. 32, H-Block, 15^th Main Road, Anna Nagar, Chennai – 600 040, Tamilnadu, India
Tel. No.:	91-44-26161803 to 26161811/ 13 (9 lines)
Fax No.:	91-44-26161813/ 814
E-Mail :	pcc77@md3.vsnl.net.in chennai@pure-chemical.com mkt_chennai@pure-chemical.com info@pure-chemical.com basicchemicals@pure-chemical.com speciality_south@pure-chemical.com exports@pure-chemical.com
Website :	http://www.pure-chemical.com

Branch:	Plot No. 1894, Door No. 32, 15^th Main Road, H Block, Anna Nagar, Chennai-600040, Tamilnadu, India
Tel. No.:	91-44-26161803/4/5/6/7/8/9/10/11/12/13
Fax No.:	91-44-26161814
E-Mail :	pcc@77md3.vsnl.net.in

DIRECTORS

As on 16.08.2010

Name :	Mr. M. Ponnusami
Designation :	Managing Director
Address :	45 VII Cross Street, Shenoy Nagar, Chennai – 600 030, Tamilnadu, India
Date of Birth/Age :	08.10.1954
Date of Appointment	24.07.1998

Name :	Mr. P. Manaoranjitham
Designation :	Whole Time Director
Address :	45 VII Cross Street, Shenoy Nagar, Chennai – 600 030, Tamilnadu, India
Date of Birth/Age :	15.06.1961
Date of Appointment	24.07.1998

Name :	Mr. M P Suryaprakas
Designation :	Whole Time Director
Address :	AA 23, 3^rd Street, Anna Nagar, Chennai – 600040, Tamilnadu, India
Date of Birth/Age :	21.12.1980
Date of Appointment	01.04.2008

Name :	Mr. M P Lakhmipathy
Designation :	Whole Time Director
Address :	AA 23, 3^rd Street, Anna Nagar, Chennai – 600040, Tamilnadu, India
Date of Birth/Age :	25.09.1982
Date of Appointment	01.04.2008

KEY EXECUTIVES

Name :	Ms. Khusboo Singhvi
Designation :	Director
Address :	Old No. 30, New No. 6, Govindappa Naicken Street, 3^rd Floor, Girnar Apartment, (Back Side), Chennai-600001, Tamilnadu, India
Date of Birth/Age :	24.09.1985
Date of Appointment :	01.06.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 16.08.2010

Names of Shareholders		No. of Shares
M. Ponnusami		243937
P. Manoranjitham		45075
M. P. Suryaprakas		16700
M. P. Lakshmipathy		16700
M. Ponnusami HUF		45110
S. Nithyasree		2

Total		367524

As on 16.08.2010

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

BUSINESS DETAILS

Line of Business :

Trader, Distributor and Importer of Industrial Chemicals, Solvents for use in Leather, Textile, Paints, Pharmaceutical Industries etc.

GENERAL INFORMATION

Bankers :

Karnataka Bank, Kodambakkam Branch, Kodambakkam High Road, Chennai – 600034, Tamilnadu, India
The Lakshmivilas Bank Limited, Triplicane Branch, Chennai-600002, Tamilnadu, India
State Bank of India, Overseas Branch, No. 86, Rajaji Salai, Chennai-600001, Tamilnadu, India
Axis Bank Limited, Trishul, 3^rd Floor, Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad-380006, Gujarat, India
Axis Bank Limited, SME Centre, Ground Floor, Karumuthu Nilayam, No.192, Anna Salai, Chennai-600002, Tamilnadu, India
ICICI Bank
UCO Bank Limited
Standard Chartered Bank, 19, Rajaji Salai, Chennai-600001, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term loan from Banks Indian Rupee	7.311	12.372
Other loans form banks
Indian rupee	237.593	176.960
Foreign currency	724.421	355.365
Total	969.325	544.697

Unsecured Loan
Short term loans and advances
From Managing Directors	21.400	21.400
Total	21.400	21.400

Note:

Term loans from banks includes

Term Loan from Axis Bank whirl, is secured by

i) First charge on the immovable properties located as Bangalore. Coimbatore and Tirunelveli and Plant and Machineries and

ii) Personal guarantees of ill the Directors.

(b) Car Loan from HDFC Bank and Axis Bank air secured by way of charge on the Vehicles

Other Loans from Banks represents

Working capital loan from State Bank of India, Axis Bank, Standard Chartered Bank, ICICI Bank, Bank of Baroda, ING Vysya Bank and Punjab National Bank. These loans are secured by way of

i) Hypothecation of Stock-in-trade, book debts and other movable insets.

ii) First pari passu charge by way of mortgage of the immovable properties of the Company located at Chennai, Mumbai

iii) Second pari passu charge on the immovable properties located at Bangalore, Coimbatore and Tirurselveli.

iv) All these loans except loan from Standard Chartered Bank are also secured bf personal guarantees of all the Directors of the company. Working capital loan from Standard Chartered Bank is secured by personal guarantees of Mr. M. Ponnuswaami, Managing Director, Mr. M. P. Surya Prakas and Mr. M.P. Lakshmipathy, directors of the company.


Banking Relations :	--

Auditors :
Name :	Suri and Company Chartered Accountant
Address :	No.4 (Old No.55-A), Chevaliar Sivji Ganesan Road, (South Boag Road), Thiyagarayar Nagar, Chennai – 600017, Tamilnadu, India
Tel. No.:	91-44-24341140/ 24341150
Fax No.:	91-44-24341170
E-Mail :	suriche@eth.net

Associates/Subsidiaries :	Pon Pure Chemm FZE, Dubai

CAPITAL STRUCTURE

As on 16.08.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
700000	Equity Shares	Rs.100/- each	Rs.70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
367524	Equity Shares	Rs.100/- each	Rs.36.752 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		36.752	36.752	36.752
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		549.368	372.187	429.030
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		586.120	408.939	465.782
LOAN FUNDS
1] Secured Loans		969.325	544.697	325.259
2] Unsecured Loans		21.400	21.400	22.311
TOTAL BORROWING		990.725	566.097	347.570
DEFERRED TAX LIABILITIES		8.841	0.000	9.970

TOTAL		1585.686	975.036	823.322

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		344.712	345.296	355.386
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		22.680	10.000	10.000
DEFERREX TAX ASSETS		0.000	17.180	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	823.811	228.445	371.841
	Sundry Debtors	1110.940	601.083	492.467
	Cash & Bank Balances	151.942	108.330	56.117
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	52.861	45.733	32.304
Total Current Assets		2139.554	983.591	952.729
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	910.766	375.638
	Other Current Liabilities	7.974	5.214	492.935
	Provisions	2.520	0.179	1.858
Total Current Liabilities		921.260	381.031	494.793
Net Current Assets		1218.294	602.560	457.936

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		1585.686	975.036	823.322

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income			2907.360
		Other Income			36.030
		TOTAL	5760.302	4083.950	2943.390

Less	EXPENSES
		Office Expenses
		Administrative Expenses	5488.601	NA	2851.591
		Advertising Expenses
		TOTAL	5488.601	NA	2851.591

	PROFIT BEFORE TAX		271.701	17.515	91.799

Less	TAX		94.520	NA	33.107

	PROFIT AFTER TAX		177.181	NA	58.692

	EARNINGS IN FOREIGN CURRENCY		222.486	97.556	63.960

	IMPORTS		2964.584	1580.479	802.198

	Earnings Per Share (Rs.)		482	NA	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.08	NA	1.99

Net Profit Margin (PBT/Sales)	(%)	NA	NA	3.16

Return on Total Assets (PBT/Total Assets}	(%)	10.94	1.32	7.02

Return on Investment (ROI) (PBT/Networth)		0.46	0.04	0.20

Debt Equity Ratio (Total Liability/Networth)		3.26	2.32	1.81

Current Ratio (Current Asset/Current Liability)		2.32	2.58	1.93

LOCAL AGENCY FURTHER INFORMATION

STATE OF AFFAIRS:

The company was able to achieve very creditable results during the year. the turnover leaped from Rs.4083.950 millions for the year 2008-09 to Rs.5760.300 millions for the year 2009-10, resulting in a growth of 41.05% with an operating profit of Rs.271.701 millions for the year 2009-10 as compared to the year 2008-09.

The company performances during the current financial year (2010-11) promises to be excellent.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10159095
Corporate identity number of the company	U24111TN1998PTC040872
Name of the company	PON PURE CHEM PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 77, Perambur High Road, Chennai – 600012, Tamilnadu, India
Type of charge	Book Debts Movable Property Immovable Property
Particular of charge holder	Standard Chartered Bank, 19, Rajaji Salai, Chennai-600001, Tamilnadu, India
Email	ramachandran.nagasubramanian@sc.com
Nature of description of the instrument creating or modifying the charge	Declaration for extending mortgage by deposit of title deeds by way of constructive delivery with State Bank of India, Overseas Branch, No.86, Rajaji Salai, Chennai - 600 001.
Date of instrument Creating the charge	20.01.2011
Amount secured by the charge	Rs.650.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be negotiated and agreed to by the Bank from time to time. Terms of Repayment Loan against Import Letter of Credit, pre-shipment financing under Export Orders, Export Invoice Financing, Shipping guarantees and short term money market loans, financial guarantees/standby letter of credit- Maximum up to 180 days Overdraft-Maximum for 1 day Commercial Standby letter of Credit-Maximum up to 360 days. Margin As may be negotiated and agreed by the Bank from time to time. Extent and Operation of the charge 1. First pari passu Hypothecation charge on stocks and book debts 2. First pari passu EM on Madhavaram, Khalina and Puthencruz Village immovable properties by deposit of title deed with SBI. 3.First pari passu EM on Madhavaram,Tirunelveli, Bangalore and Coimbatore properties by deposit of title deeds with AXIS Bank to cover the enhanced limit of INR 650.000 Millions Others Loan against import letter of credit- Rs.650.000 Millions Sub-limits: Shipping Guarantees, Financial Guarantees/Standby letter of credit, Commercial Standby letter of Credit- Upto Rs.650.000 Millions each Pre-shipment financing under export orders, Export Invoice financing, short term money market loans- Upto Rs.300.000 Millions each Overdraft - Upto Rs.100.000 Millions
Short particulars of the property charged	I) Stock in trade - raw materials, finished goods, goods in the process of manufacturing and other merchandise, at all locations. Book debts, outstandings, moneys receivable, claims and bills. II) 20.23 acres land with building (restroom cum godown) at S.No.919/1A/6 and R.S.No.531/2, Block 38, Kunnathunadu Taluk, Puthencruz Village, Ernakulam District. III) 1 acre 58 cents agricultural land in 34, Madhavaram Village, Saidapet Taluk, Chengai MGR District, 59 cents land in S.No.704, 50, Madhavaram II Village, Ambattur Taluk, Tiruvellore District. IV) 4 acres 94 cents property in S.Nos.705/1Aand 1B, 711/1and 2, 712/2, 713, 759/1and 2 in Madhavaram Village, Ambattur Taluk, Tiruvellore District, Chennai - 600 110. V) Gala 128 (337.5 sq.ft.), 129 (607.5 sq.ft.) and 130 (438.75 sq. ft.) aggregating 1383.75 sq.ft. built-up in first floor of 'Creative Industrial' building at Sunder Nagar Road, 2, Khalina, Mumbai-400 098. VI) 1.07 acres agricultural land in Nanja S.No.703 of Madhavaram Township, Madras Saidapet Taluk, Chengleput MGR District. VII) 3 acres- S No.24/2 and 3-A, Chikkabidarakaallu Village , Bangalore Dt., less 303.5 sq mts and 844.48 sq mt. and property at S.No.153/5C4, Irugur Village, Coimbatore Dt. VIII) 1.13 acres agricultural land in Karungulam Village, Tirunelveli Dt IX) 77 cents industrial land and shed S.No.760/1-B, and 75 cents land in S.No.760/2-B at Madhavaram Village, Chennai Dt. X) 78 cents punja land in S.No.760/2A of No.30 Madhavaram Village, Ambattur Taluk, Thiruvallur Dist.
Date of latest modification prior to the present modification	18.01.2011
Particulars of the present modification	1. First pari passu equitable mortgage on Madhavaram, Khalina and Puthencruz Village immovable properties by deposit of title deeds with SBI extended to cover the enhanced limit of Rs.650.000 Millions. 2. Charge amount unchanged

FIXED ASSETS:

· Land (Free Hold)

· Building

· Plant and Machinery

· Furniture and Fixture

· Vehicles

WEBSITE DETAILS:

PROFILE:

Subject group with the core business of Chemical distribution has been built on strong values such as Integrity, Customer Satisfaction, Ethical Business Practice and commitment to SHE (Safety, Health & Environment). Mr. M. Ponnuswami, a first generation entrepreneur, has built the company with a strong vision and Pan India presence. The passion for customized service catalyzed the growth of the company. Over the last 27 Years, the commitment to business and goodwill earned brought the company new agencies of domestic and International manufacturers and the new agencies brought avenues to provide basket of product to different segment of the industry. The company exports chemicals, as part of the growth strategy, by leveraging on the benefit of SEZ established in Kandla.

The group provides value addition in the supply chain by offering infrastructure such as, Network of Branches with ware house, Qualified Sales Team, Underground Storage Tanks with barrel filling station for solvents in strategically important places, Quality control lab, Technical service lab for specialty chemicals and Ethical work culture. With the support of Customers and Suppliers, today the company finds place in the list of leading distribution companies in India. The group has diversified in to renewable Energy.

OPERATIONS

The company has established Regional and Branch Managers to closely interact with end users and to serve them. Recognizing the service requirements, the company operates two broad SBU's, Basic Chemicals and Specialty Chemicals. The company meets the requirements both in bulk and standard packing. Agencies of Domestic and International manufacturers are being lined up aligning with the business need of the SBU's. Bulk imports are carried out in Kandla, Mumbai and Ennore ports while FCL lots are being imported in all leading ports to meet customer requirements with best possible cost to serve.

The bulk solvents, from Domestic and International manufacturers are repacked in standard packing size to meet the retail requirements of the consumers. SOP is set in place to monitor and to ensure quality parameters in line with the manufacturer.

All branches are connected by Oracle based ERP network to provide MIS data to give the Managers an edge to take decisions.

As a part of the growth plan, chemicals from India are being exported to countries like Srilanka, Nigeria, Bangladesh and Middle East. The warehouse established in Kandla Special Economic Zone operates in the same way as they are in Singapore and Middle East, by providing a competitive edge.

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.44.80
UK Pound	1	Rs.72.86
Euro	1	Rs.63.11

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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.

MIRA INFORM REPORT

823.811

371.841

1110.940

492.467

151.942

56.117

0.000

0.000

52.861

32.304

2139.554

910.766

7.974

492.935

2.520

1.858

921.260

494.793

1218.294

457.936

3.08

1.99

NA

3.16

10.94

7.02

0.46

0.20

3.26

1.81

2.32

1.93

Unit