MIRA INFORM REPORT

Report Date :

17.08.2011

IDENTIFICATION DETAILS

Name :	BALAJI AMINES LIMITED
Registered Office :	165 /A, Balaji Bhavan, Railway Lines, Solapur – 413001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.10.1988
Com. Reg. No.:	049387
Capital Investment / Paid-up Capital :	Rs.64.802 Millions
CIN No.: [Company Identification No.]	L24132MH1988PLC049387
TAN No.: [Tax Deduction & Collection Account No.]	PNEB02668B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturing of Speciality Chemicals, Aliphatic Amines and Derivatives
No. of Employees :	700 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 4500000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Directors are reported to be experienced and respectable businessmen. 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.

INFORMATION PARTED BY

Name :	Mr. Arun Mashal
Designation :	Accounts Manager
Contact No.:	91-9822750421
Date :	16.08.2011

LOCATIONS

Registered Office :	165 /A, Balaji Bhavan, Railway Lines, Solapur – 413001, Maharashtra, India
Tel. No.:	91-217-2620825 / 2721182 / 2620822/ 2310822/ 2310823/ 2310824/ 2310828
Mobile No.:	91-9822750421 (Mr. Arun Mashal)
Fax No.:	91-217-2620821/2310821/ 2310828
E-Mail :	amines@pn2.vsnl.net.in info@balajiamines.com spr_amines@sanchanet.in cs@balajiamines.com mktg@balajiamines.com
Website :	http://balajiamines.com/
Area :	3000 sq. ft.
Location :	Rented
Administrative Office :	3^rd Floor, KPR House, Sardar Patel Road, Secunderabad – 500 003, Andhra Pradesh, India
Tel. No.:	91-40-27847122/ 27898206/ 27814490/ 66336121/ 66337121
Fax No. :	91-40-27816171
E-Mail :	amines@hd2.vsnl.net.in infohyd@balajiamines.com infohyd@balajiamines.com unit2mktg@balajiamines.com psmani@balajiamines.com
Factory 1 :	Tamalwadi Village, Tuljapur (TQ), Osmanabad District, Maharashtra – 413 623, India
Tel. No.:	91-2471-265013/265014/265015
Fax No.:	factoryoffice@balajiamines.com osd_aminefac@sancharnet.in works1@balajiamines.com
Factory 2 :	Plot No. 4 and 5, Beside Apseb Sub Station 2, IDA, Bollaram – 502325, Medak District, Andhra Pradesh, India
Tel. No.:	91-8458-279240
Fax No.:	91-8458-329660
Email :	works2@balajiamines.com
Factory 3 :	Plot No. E-7 and 8 MIDC, Chincholi, Solapur-413255, Maharashtra, India
Email :	unit3works@balajiamines.com

DIRECTORS

AS ON 31.03.2011

Name :	Mr. M. R. Krishnaiah
Designation :	Chairman
Name :	Mr. A. Prathap Reddy
Designation :	Managing Director
Name :	Mr. N. Rajeshwar Reddy
Designation :	Whole Time Director
Name :	Mr. D. Ram Reddy
Designation :	Whole Time Director
Name :	Mr. G. Hemanth Reddy
Designation :	Whole Time Director
Name :	Mr. T. Naveena Chandra
Designation :	Independent Director
Name :	Mr. S. Vishnu Rao
Designation :	Independent Director
Name :	Mr. S. V. Pattabhiraman
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Arun Mashal
Designation :	Accounts Manager
Name :	Mr. Hemish Purushotiam
Designation :	Company Secretary
AUDIT COMMITTEE:
Name :	Mr. T. Naveena Chandra
Designation :	Chairman
Name :	Mr. M R Krishnajah
Designation :	Member
Name :	Mr. S Vishnu Rao
Designation :	Member
Name :	Mr. S V Pattabhi Raman
Designation :	Member
SHARE HOLDERS’ / INVESTORS’:
Name :	Mr. T. Naveena Chandra
Designation :	Chairman
Name :	Mr. S Vishnu Rao
Designation :	Member
Name :	Mr. A Prathap Reddy
Designation :	Member
RESEARCH AND DEVELOPMENT COMMITTEE:
Name :	Me. Prathap Reddy
Designation :	Chairman
Name :	Mr. N Rajeshwar Reddy
Designation :	Member
Name :	Mr. G Heamanth Reddy
Designation :	Member
REMUNERATION COMMITTEE:
Name :	Mr. M R Krishnaiah
Designation :	Chairman
Name :	Mr. S Vishnu Rao
Designation :	Member
Name :	Mr. T Naveena Chandra
Designation :	Member

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.06.2011)

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	12,775,783	39.43
Bodies Corporate	4,712,415	14.54
Sub Total	17,488,198	53.97
(2) Foreign	--	--
Total shareholding of Promoter and Promoter Group (A)	17,488,198	53.97
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	203	-
Financial Institutions / Banks	5	-
Sub Total	208	-
(2) Non-Institutions
Bodies Corporate	1,536,670	4.74
Individuals
Individual shareholders holding nominal share capital up to Rs. 1 lakh	6,265,944	19.34
Individual shareholders holding nominal share capital in excess of Rs. 1 lakh	6,402,908	19.76
Any Others (Specify)	707,072	2.18
NRIs/OCBs	695,314	2.15
Clearing Members	11,758	0.04
Sub Total	14,912,594	46.03
Total Public shareholding (B)	14,912,802	46.03
Total (A)+(B)	32,401,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	32,401,000	100.00

SHAREHOLDING BELONGING TO THE CATEGORY

"Promoter and Promoter Group"

Name of the Shareholder	Total Shares held
	Number	As a % of grand total (A)+(B)+(C)
Saritha Reddy	5,000	0.02
A Annapurna Devi	314,850	0.97
Ande Prathap Reddy	5,538,050	17.09
N Rajeshwar Reddy	594,895	1.84
D Ram Reddy	466,905	1.44
Gaddam Raj Reddy	436,870	1.35
A Meena Devi	144,110	0.44
Nomula Deepti	302,000	0.93
Nomula Sarita	398,000	1.23
Gaddam Hemanth Reddy	705,020	2.18
A Shakunthala Devi	2,876,450	8.88
Dundurapu Vandana	217,000	0.67
Gaddam Madhumathi	594,150	1.83
Eeshan Reddy	99,500	0.31
Tanmai Reddy Ram Reddy Dundurapu	82,983	0.26
APR Holdings Investment Pvt Ltd	4,712,415	14.54
Total	17,488,198	53.97

"Public" and holding more than 1% of the Total No.of Shares

Name of the Shareholder	No. of Shares	Shares as % of Total No. of Shares
Bhagyanagar Wood Plast Limited	753,420	2.33
Vinitha Nalla	958,440	2.96
Kishan Reddy Nalla	1,148,000	3.54
Vijaya Nalla	798,500	2.46
Vineel Reddy Nalla	1,184,220	3.65
Digvijay Singh Puar	486,650	1.50
Reddy V Y	695,887	2.15
Total	6,025,117	18.60

BUSINESS DETAILS

Line of Business :

Manufacturing of Speciality Chemicals, Aliphatic Amines and Derivatives

Products :

Product Description	Item Code
Methyl Amines	292111
Ethyl Amines	292111
Derivatives	292111

Amines

• Mono-Methylamine (MMA)

• Di-Methylamine (DMA)

• Tri-Methlylamine (TMA)

• Mono-Ethylamine (MEA)

• Di-Ethylamine (DEA)

• Tri-Ethylamine (TEA)

• Mono-Methyl Amino Ethanol (MMAE)

• Di-Methyl Amino Ethanol (DMAE)

• Di-Ethyl Amino Ethanol (DEAE)

Specialty Chemicals

• N-Methyl Pyrrolidone (NMP)

• Morpholine

• 2-Pyrrolidone (2-P)

• N-Ethyl-2-Pyrrolidone

• Gamma-Butyrolactone

• Poly-Vinylpyrrolidone K 30

Derivatives

• Di-Methyl Acetamide (DMAC)

• Di-Methyl Amine Hydrochloride (DMA-HCl))

• Tri-Methyl Amine Hydrochloride (TMA-HCl)

• Di-Ethyl Amine Hydrochloride (DEA-HCL)

• Tri-Ethyl Amine Hydrochloride (TEA-HCL)

• Di-Methyl Urea (DMU)

• Choline Chloride

Exports :

Products :

Chemicals

Countries :

· Italy

· Spain

· France

Imports :

Products :

Raw Materials

Countries :

Saudi Arabia

Terms :

Selling :

Cash and Credit

Purchasing :

L/C and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity (TPA)	Actual Production
Aliphatic Amines and Derivatives of Amines	(MT)	70,000	53176.262
Electricity	(KWH)	--	349.75
Furnace Oil	(Liters)	--	--

GENERAL INFORMATION

Customers :

End Users

· ACETO

· Alliance Chemicals

· Altana

· Aurobindo

· Auto Oil

· Cipla

· Clariant

· BASF

· Fermion

· Dynamit Nobel

· Elantas

· DVA

· Fisher Scientific

· FRP Services and Company

· Godrej

· Inno Chem

· Kores

· Kosco

· Kenko

· Indian oil

· Gharda

· Molex

· Ranbaxy Laboratories Limited

· Reliance Industries Limited

· Orchid Chemicals Pharmaceutical Limited

· Tyche Chem

Suppliers :

· Madhuban Drums and Barrels

· Universal Containers Private Limited

· Technostar Engineering Private Limited

· K.T. Plastic Industries

· Kapila Industries

· Khetan Plastopack Private Limited

· Royal Fiber Containers Industries

· Money Packers Private Limited

· Navkar Fittings and Forgings Private Limited

· Chembond Chemicals Limited

· Metriplex Pumps Private Limited

· Eureka Engineering Enterprises

· S.S. Enterprises

· G.P.C. Flow Instruments (Private) Limited

· Super Industries

· Laxmi Hydrualics Private Limited

· Jaysons Chemical Industries

· Borolab Scientifi c Glass (Private) Limited

· Sungov Engineering P Private Limited

· Ecomak Environmental and Industrial Systems Private Limited

· Sudhir Switchgears Private Limited

· Nav Gases and Chemicals

· Instrumentation Engineers Private Limited

No. of Employees :

700 (Approximately)

Bankers :

· State Bank of Hyderabad, Overseas Branch, Hyderabad, India

· State Bank of India, IFB, Hyderabad, India

· ING Vysya Bank, Opera House, Mumbai, India

· Bank of Baroda

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
State Bank of Hyderabad	678.288	383.425
State Bank of India (Term Loan secured by first charge on fixed assets of the company, both present and future and mortgage by deposit of the land title deeds)	31.573	45.598
Bank of Baroda (Term loan secured by first charged on wind electric generator)	59.888	25.000
Bank of Baroda (Hotel Division) (Term loan secured by first charged on Land and Building of Hotel project)	48.975	0.000
State Bank of Hyderabad	420.925	285.811
State Bank of India	349.160	213.966
ING Vysa Bank Limited (Towards working capital limits, secured by way of hypothecation of stocks and book debts and second charge on all fixed assets of the company, both present and future) The above borrowings are also supported by personal guarantee of directors of the company Viz. Mr. A Prathap Reddy, Mr. N Rajeshwar Reddy, Mr. D Ram Reddy and Mr. G Hemanth Reddy Hire Purchase Loans	65.891	43.074
Total	1654.700	996.874

Banking Relations :	--
Auditors :
Name :	V. Sridhar and Company Chartered Accountants
Address :	Hyderabad, Andhra Pradesh, India
Subsidiaries :	Bhagyanagar Chemicals Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
45000000	Equity Shares	Rs.2/- each	Rs.90.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
32401000	Equity Shares	Rs.2/- each	Rs.64.802 Millions

NOTE:

A share of the face value of Rs.10 has been sub divided into five shares of Rs.2 each vide the resolution of the members passed under section 94 of the Companies Act 1956 at the Annual General Meeting held on 8.09.2010.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		64.802	64.802	64.802
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1070.663	827.196	639.656
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1135.465	891.998	704.458
LOAN FUNDS
1] Secured Loans		1654.700	996.874	1017.857
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		1654.700	996.874	1017.857
DEFERRED TAX LIABILITIES		336.597	268.496	212.345
TOTAL		3126.762	2157.368	1934.660
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1596.719	1203.182	770.150
Capital work-in-progress		118.386	23.585	357.292
INVESTMENT		85.528	44.028	42.949
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	705.976	319.989	330.993
	Sundry Debtors	737.499	667.310	585.095
	Cash & Bank Balances	90.304	36.206	23.687
	Other Current Assets	6.694	9.650	6.771
	Loans & Advances	322.528	249.439	116.833
Total Current Assets		1863.001	1282.594	1063.379
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	408.375	317.760	232.909
	Other Current Liabilities	10.288	6.308	17.917
	Provisions	118.209	71.953	48.284
Total Current Liabilities		536.872	396.021	299.110
Net Current Assets		1326.129	886.573	764.269
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3126.762	2157.368	1934.660

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3570.955	2618.958	2516.868
		Other Income	19.314	14.563	28.707
		TOTAL (A)	3590.269	2633.521	2545.575
Less	EXPENSES
		Raw material consumed	2141.119	1464.185	1562.360
		Manufacturing, selling and administrative expenses	922.080	657.528	528.622
		Sales tax / value added tax	103.259	61.580	60.176
		Prior period items	0.000	(3.640)	0.000
		Increase / decrease in stocks	(224.158)	(27.195)	(4.637)
		TOTAL (B)	2942.300	2152.458	2146.521
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		647.969	481.063	399.054
Less	FINANCIAL EXPENSES (D)		135.581	97.059	101.860
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		512.388	384.004	297.194
Less/ Add	DEPRECIATION/ AMORTISATION (F)		82.610	68.360	48.156
	PROFIT BEFORE TAX (E-F) (G)		429.778	315.644	249.038
Less	TAX (H)		163.642	109.149	95.772
	PROFIT AFTER TAX (G-H) (I)		266.136	206.495	153.266
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000	0.000	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	26.614	21.000	12.000
		Dividend	19.440	16.200	12.960
		Tax on Dividend	3.229	2.753	1.836
	BALANCE CARRIED TO THE B/S		216.853	166.542	126.470
	Earnings Per Share (Rs.)		8.21	31.87	23.65

QUARTERLY RESULTS

PARTICULARS	30.06.2011
Type	1^st Quarter
Net Sales	1145.200
Total Expenditure	969.260
PBIDT (Excl OI)	175.940
Other Income	9.460
Operating Profit	185.400
Interest	49.570
Exceptional Items	0.000
PBDT	135.830
Depreciation	25.490
Profit Before Tax	110.340
Tax	38.660
Provisions and contingencies	0.000
Profit After Tax	71.680
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	71.680

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.41	7.84	6.02
Net Profit Margin (PBT/Sales)	(%)	12.04	12.05	9.89
Return on Total Assets (PBT/Total Assets}	(%)	12.42	12.70	13.58
Return on Investment (ROI) (PBT/Networth)		0.38	0.35	0.35
Debt Equity Ratio (Total Liability/Networth)		1.93	1.56	1.87
Current Ratio (Current Asset/Current Liability)		3.47	3.24	3.55

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(RS. IN MILLIONS)
Creditors for Raw Materials	330.722	272.195	193.291
Creditors fro Expenses	77.653	45.565	39.618
Total	408.375	317.760	232.909

OPERATING RESULTS AND BUSINESS

The company has achieved a Gross turnover of Rs.3850.500 Millions as compared to the turnover of Rs.2771.400 Millions during the previous year. The company registered an impressive year on year growth of 38.94%, Profit After Tax is Rs.266.100 Millions in the current year as compared to Rs.206.400 Millions recording a growth of 28.92%.

The Company’s excellent performance is primarily attributed to the product mix, increase in value chain and increase in plant efficiencies which has optimized the consumption co-efficient of materials compared to previous year and stringent cost control measures implemented by the management across the plants.

EXPORTS:

The net exports have increased by 12.30% over the previous year figures of Rs.671.700 Millions to Rs.754.300 Millions. The Company’s products are well placed in the Global Market. The company has registered under “REACH” for supplying one of the products to EU countries which go through stringent Quality checks. The company is the first company to register under REACH from India for this product.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Industry Structure, Development and Outlook

The company is a leading manufacturer of aliphatic amines in India and the only manufacturer of 100 % import substitute specialty chemicals such as N-Methyl- 2- Pyrrolidone (NMP), Morpholine, 2- Pyrrolidone (2-P) Gamma Butyrolactone (GBL), Poly Vinyl Pyrrolidone (and PVPK 30), N-Ethyl-2- Pyrrolidone (NEP), all of which are widely accepted by customers the world over. The company caters to various Industries which are backbone of Indian economy and has market presence in the following growth oriented areas;

• Active Pharmaceutical Ingredients (APIs)

• Agro-chemicals and pesticide formulations

• Refi neries

• Water treatment chemicals

• Rubber chemicals

• Electronics

• Photographic chemicals

• Dye stuffs and paint industries

The Indian economy has emerged with remarkable rapidity from the slowdown caused by the global crisis, with growth of 8.6 percent (advance estimate) in 2010-11 and is expected to grow 9 percent next year as per Indian Economy Survey 2010-11. As the growth momentum remains strong and broad based, the company is expected to continue its excellent performance in the coming years.

CONTINGENT LIABILITIES:

Disputed Income Tax Liability Rs.15.200 Millions for AY 2007-08. The Company has preferred an appeal against the demand. The amounts paid against the disputed demand are included in Loans and Advances.

TRADE REFERENCE:

· Arvindo Pharma limited

· Dr Reddgs Laboratories Limited

FIXED ASSETS:

· Land

· Building

· Wind Electric Generator

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· Vehicles

UN-AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED JUNE 30, 2011

RS. IN MILLIONS

Particular	Quarter Ended (Un-Audited) 30.06.2011
a) Net Sales / Income from operations	1145.201
b) Other operating Income	0.000
Total	1145.201
Total Expenditure
a) (Increase)/Decrease in stockin-trade	65.059
b) Consumption of Raw Materials	683.266
c) Employees Cost	34.282
d) Depreciation	25.485
e) Other expenditure (Manufacturing, Selling & admin. Expenses, ST/VAT)	186.654
Total	994.746
Profit from Operations before other income, interest and exceptional items (1-2)	150.455
Other Income	9.455
Profit before Interest and Exceptional items (3+4)	159.910
Interest	49.566
Profit after Interest but before Exceptional items (5-6)	110.344
Exceptional items	0.000
Profit(+) / Loss(-) from Ordinary activities before tax(7+8)	110.344
Tax expense
a) Current tax	34.354
b) Deffered tax	4.310
Net Profit(+) / Loss(-) from Ordinary activities after tax(9-10)	71.680
Extraordinary items (Net of tax expense)	0.000
Net Profit(+) / Loss(-) for the period (11-12)	716.80
Paid up Equity share Capital ( face value of each share Rs.10/-)	64.802
Reserves excluding revaluation reserves as per Balance sheet of previous accounting year	1407.260
Earnings per share (EPS) (in Rs.)
a)Basic & Diluted EPS before Extraordinary items for the period, for the Yr to date and for the prv yr	2.21#
b)Basic & Diluted EPS after Extraordinary items for the period, for the year to date and for the previous year	2.21#
Public shareholding
Number of Shares	14912802
Percentage of Shareholding	46.03%
Promoters and Promoters group shareholding
a) Pledged/ Encumbered*
Number of Shares	6732000
Percentage of Shares(as a % of the total shareholding of promoter and promoter group)	38.50%
Percentage of Shares(as a % of the total share capital of the Company)	20.78%
b) Non- encumbered
Number of Shares	10756198
Percentage of Shares(as a % of the total shareholding of promoter and promoter group)	61.50%
Percentage of Shares(as a % of the total share capital of the Company)	33.19%

NOTE:

1. The above Results have been reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on July 25, 2011.

2. During the quarter ended 30th June, 2011, the company has received 9 investor complaints. No complaint was pending at the beginning of the quarter or lying unresolved at end of the quarter.

3. Corresponding figures in previous year have been regrouped wherever considered necessary.

4. Company has only single reportable segment hence AS-17 "Segment reporting" is not applicable.

5. The Company's Equity shares have been subdivided from the face value of Rs.10/- each to Rs.2/-. The corresponding EPS on Equity shares is accordingly revised

# EPS worked out on Equity Shares of face value of Rs.2/-

WEBSITE DETAILS

Subject is one of the manufacturers of Aliphatic Amines in India was set up in the year 1988 to cater to the growing requirements of value based Specialty Chemicals. Subject commenced manufacture of Methyl Amines in the year 1989 and subsequently added facilities for manufacture of Ethyl Amines and other derivatives of Methyl Amines and Ethyl Amines.

Subject has been consistently adding capacities and fine tuning process to provide quality products at lowest cost to the customers. World over, Amine technology is a closely guarded process with only a few handful companies having access to such technology. Subject for the first time in India tested on an indigenously developed technology and developed it further over a period of time. Today, subject‘s products are accepted in international markets and have gained the distinct export quality status, which makes it one of the few companies in India having the potential to match the stringent international quality standards for which they have been awarded ISO-9001: 2000 Certification apart from appreciation and continuous orders from global majors for their product range.

Subject’s state-of-the-art manufacturing facility is located at Tamalwadi Village, near Solapur (Maharashtra State, India) The facility is fully equipped with latest technology like digital computerized controlled systems, which facilitates the control of operations from the control room in addition, subject possesses an excellent R and D facilities and laboratory, which helps in conducting basic research and also to fine tune the process.

NEWS:

Balaji Amines Limited is an ISO 9001 – 2008 accredited company with a unique positioning in the field of Manufacture of specialty chemicals, Aliphatic amines and its derivatives, addressing to the needs of API’s, Agrochemicals, Rubber chemicals, Water treatment chemicals, Refineries and other industries in the Domestic and Global markets.

The Company operates from 3 manufacturing complexes, with 2 facilities in Solapur, Maharashtra and one at Hyderabad, Andhra Pradesh. BAL has a dedicated Research and Development center which is continuously engaged in reduction of manufacturing costs through process improvements. The Company has been instrumental in introducing new products and expanding existing facilities every year.

Key Operating Highlights:

1. Recorded net sales of Rs.3571.000 Millions for the year 2010-11. Net Sales increased by around 36.35% for the year 10-11 from Rs.2619.000 Millions of previous year.

2. Profit After Tax increased by around 28.92 % over previous year’s Rs.206.400 Millions to Rs.266.100 Millions

3. Exports during the year ending 31/03/2011 have gone up by 10.80.% from Rs.671.700 Millions of FY 2009-10 to Rs.744.300 Millions for FY 2010-11.

Additional information:

During the current year the following expansion projects have been commissioned.

1) New project of 15000 MT per annum capacity of GBL, NMP/ 2P at MIDC, Chincholi, Solapur.

2) Commissioned 1.5 mw capacity of wind mill at Satara which has started generating power from September 2010.

The following Expansion/ Diversification Projects have been taken up during the year and expected to be commissioned during FY 2011-12 and FY 2012-13.

1) New plant for manufacture of Methylamines and Ethylamines is proposed with an installed capacity of 30000 MT per annum at MIDC, Chincholi which will be commissioned mid of FY 2011-12.

2) Construction is in full swing for development of 100 Room Hotel property at Solapur to be operational by mid 2013. A formal agreement with SAROVAR Group of Hotels has been entered for operating / managing the Hotel property in the name of Balaji Sarovar Portico

ACHIEVEMENTS AND AWARDS:

1) BAL has been awarded by FIEO as “Niryat Shree” in the Chemicals, drugs, pharma and allied products-MSME Category by Shri Jyotiraditya Madhavrao Scindia – Hon’ble Minister of State for Commerce and Industry in a function held on 16th November, 2010 at Hotel Le Meridien, New Delhi.

2) BAL has been awarded The CHEMEXCIL “First Award” for Export Performance by Shri. Srikant Kumar Jena - Hon’ble Minister of State for Chemicals & Fertilizers, Govt. of India in a function held on 6th January, 2011 at The Leela Kempinski, Mumbai.

3) `REACH’ Certification under E.U. norms: BAL is the only Indian company to register under E.U. Norms for REACH certification for supply of NMP to E.U countries. This will enable BAL to target exports of maximum capacity of the new facility which is being commissioned.

4) The PVP K-30 manufacturing facility has achieved WHO GMP Certification that enables BAL to export PVP K-30 to regulated markets. The said plant has also been successfully audited by multiple multinational auditing agencies as well as customers.

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.45.25
UK Pound	1	Rs.73.88
Euro	1	Rs.65.06

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.