MIRA INFORM REPORT

Report Date :

17.08.2011

IDENTIFICATION DETAILS

Name :	SWATI MENTHOL AND ALLIED CHEMICALS LIMITED (w.e.f 15.09.2001)
Formerly Known As :	SWATI MENTHOL AND ALLIED CHEMICALS PRIVATE LIMITED
Registered Office :	Opposite Radio Station, Bareilly Road, Rampur-244901, Uttar Pradesh.
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	27.03.1990
Com. Reg. No.:	20-011773
Paid-up Capital :	Rs. 44.595 Millions
CIN No.: [Company Identification No.]	U15326UP1990PLC011773
Legal Form :	A closely held Public Limited Liability Company.
Line of Business :	Manufacturers and Exporters of Menthol and Allied Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 990000
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

LOCATIONS

Registered Office :	Opposite Radio Station, Bareilly Road, Rampur-244901, Uttar Pradesh, India
Tel. No.:	91-595-2357042/2357043/2357044/2357045
Mobile No.:	91-9837848871 (Mr. S. K Gupta)
Fax No.:	91-595-2357046
E-Mail :	gauravnishantmca@yahoo.com info@swatimenthol.com
Website :	www.swatimenthol.com

DIRECTORS

As On 30.09.2010

Name :	Mr. Sanchit Gupta
Designation :	Director
Address :	Rah-E-Razanear Ishwar Nursing Home, Rampur, Uttar Pradesh, India.
Date of Appointment :	10.05.2000
DIN No.:	01611817
Name :	Mr. Surendra Kumar Gupta
Designation :	Managing Director
Address :	Rah-E-Razanear Ishwar Nursing Home, Rampur, Uttar Pradesh, India.
Date of Appointment :	27.03.1990
DIN No.:	01639980
Name :	Ms. Geeti Rakesh Gupta
Designation :	Director
Address :	Opposite Central Near Ishwar Nursing Home, Rampur, Uttar Pradesh, India.
Date of Birth/Age :	28.12.1980
Date of Appointment :	01.09.2008
DIN No.:	02109039
Name :	Mr. Nitin Kumar Gupta
Designation :	Director
Address :	Opposite Central Bank, Rampur, Uttar Pradesh, India.
Date of Appointment :	30.04.1996
DIN No.:	00807771
Name :	Ms. Sudha Gupta
Designation :	Director
Address :	Opposite Central Bank, Rampur, Uttar Pradesh, India.
Date of Appointment :	30.04.1996
DIN No.:	02645686
Name :	Ms. Sushma Rani Gupta
Designation :	Director
Address :	Rahe Raja, Civil Lines, Rampur, Uttar Pradesh, India.
Date of Appointment :	27.03.1990
DIN No.:	02564325

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.09.2010

Names of Shareholders	No. of Shares
Surendra Kumar Gupta	1305790
Sushma Rani Gupta	505100
Rajni Gupta	32000
Nitin Gupta	138340
Najakat Ali	9200
Sanchit Gupta	541990
Sudha Gupta	60000
S.K. Gupta HUF	126180
D.K. Agarwal	30000
Usha Agarwal	15000
Jitendra Kumar Gupta	16000
Mukul Saxsena	12000
Subodh Kumar Agarwal	13000
Prabhat Mgt. Services Private Limited - India	60000
RRP Mgt. Services Private Limited – India	100000
Priti Merchantile Company – India	1040000
Sangeeta Manglam	94000
Usha Kumar Trust – India	20000
Sumati Transport Private Limited – India	148750

As On 31.03.2011

List of Aloottees	No. of Shares
Swati Frangrances Private Limited – India	170000
Sumati Transport Private Limited – India	30000
Deepika Coal Carriers Private Limited – India	20000
Total	220000

As On 30.09.2010

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

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Menthol and Allied Products.

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Actual Production
Menthol	MT	1047.580
DMO	MT	436.532
CIS 3 Hexanol	MT	8.906
Pipermint Oil	MT	110.045
Pine Oil	MT	358.646
Pinetar	MT	38.140
Terpineol	MT	208.739
Dipentene	MT	305.674
CIS – 3 Hexenyl Acetate	MT	0.602
Pitch	MT	65.569
Terpene	MT	61.911
DD Turpentine	MT	0.000
Rectified Mentha Piperita	MT	8.720
Recitified Anethol	MT	23.390
Menthone	MT	0.000
Menthyl Acetate	MT	0.100
Menthe Oil ID	MT	15.840
Terpinyle Acetate	MT	17.030
Rectified Dipentine	MT	33.756
Rectified Eucalyptus Oil	MT	17.021
Rectified Alpapinen	MT	0.900
Eucalyptol	MT	4.145
Rectified Eucalyptol	MT	12.170
Rectified Spearmint Oil	MT	1.620
Octanol	MT	0.340
Cincol	MT	1.800
CIS 3 Hexenyle Butyrate	MT	0.025

GENERAL INFORMATION

Suppliers :

· Aar Bee Industries, Jammu

· Archana Trading Company, Lucknow

· Arun Kumar Vaish Group

· Dev Aeromatics Private Limited

· Sharda Industries, Haldwani

· Sanjay Gupta Group

· Silver Line Chemicals

· Sunil Kumar Gupta Group

· Necto Life Science Limited, Mohali

Customers :

· Anhui Provisions Yifan Spice Company Limited, China

· Colgage Palmolive Ind E. Com Limited, Brazil

· Emanuele Centonze SA Genove

· Green Planet Industries, UAE

· International Flavours and Fragrances IFF (GB) Limited, China

· International Flavours and Fragrances INC USA New

· PHU Bart Pharma, Poland

· Symris GMBH and Company KG, Germany

No. of Employees :

Not Available

Bankers :

• Bank of Baroda, International Business Branch, Basant Vihar, Civil Lines, Moradabad-244001, Uttar Pradesh, India.

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Cash credit limit against hypothecation of raw material, finished goods, work in progress and book debts from -
Bank of Baroda IBB, Moradabad	61.836	51.264
Bank of Baroda C/C, Rampur	1.866	0.860
Term loan against plant and machinery and factory building from Bank of Baroda IBB, Moradabad T/L 084	24.517	33.363
T/L 016	3.206	5.366
T/L 135	21.241	27.290
T/L 180	19.975	0.000
Packing credit from bank of Baroda, IBB, Maradabad	373.617	314.327
PSDL, IBB Moradabad 41	55.078	31.060
Foreign bill purchase (FBP) from bank of baroda, IBB, Moradabad	61.114	37.131
Term loan against hypothecation of car from bank of baroda	0.097	0.185
Term loan against hypothecation of car from ICICI Bank	0.000	0.199
Demand loan against FDR	0.000	3.506
Global Trade Finance Limited	5.823	0.000
Total	602.372	504.551

Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
From Directors
S. K Gupta	4.567	3.521
Sanchit Gupta	2.430	6.975
Giti Gupta	0.018	0.052
Sudha Gupta	0.001	0.850
Sushma Rani Gupta	0.000	3.193
Swati Fragrences Private Limited	0.208	0.000
Ram Kumar Jagdish Saran	1.900	1.715
Madhu Gupta	0.039	0.039
Nitin Gupta	0.000	0.154
Total	9.163	16.499

Banking Relations :	--
Financial Institute :	SBI Global Factors Limited – 6^th Floor, Metropolitan Building, Bandra-Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Auditors :
Name :	Raj Agarwal and Company Chartered Accountant
Address :	Ashirwad, 10 – C, V.I.P colony, Civil Lines, Rampur – 244901, Uttar Pradesh, India
Tel. No.:	91-595-2351375
Mobile No.:	91-9997021273/9412251273
Fax No.:	91-595-2350058
E-Mail :	ca_rkagarwal@yahoo.co.in
Pan No.:	ACXPA4618E

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs. 10/- each	Rs.80.000 Millions

Issued, Subscribed

No. of Shares	Type	Value	Amount
4026980	Equity Shares	Rs. 10/- each	Rs.40.270 Millions
865000	Equity Shares	Rs. 10/- each	Rs. 8.650 Millions
	Total		Rs. 48.920 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
4026980	Equity Shares	Rs. 10/- each	Rs.40.270 Millions
865000	Equity Shares	Rs. 10/- each	Rs. 4.325 Millions
	Total		Rs. 44.595 Millions

After 30.09.2010

Authorised Capital : Rs. 125.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 102.180 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		44.595	40.269	35.769
2] Share Application Money		17.121	0.000	0.000
3] Reserves & Surplus		186.292	121.582	63.852
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		248.008	161.851	99.621
LOAN FUNDS
1] Secured Loans		620.372	504.551	298.963
2] Unsecured Loans		9.163	16.499	8.979
TOTAL BORROWING		629.535	521.050	307.942
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		877.543	682.901	407.563
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		193.895	154.883	93.239
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		15.040	40.142	15.584
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	434.541	290.705	199.042
	Sundry Debtors	271.896	173.606	124.335
	Cash & Bank Balances	0.436	2.433	0.589
	Other Current Assets	2.302	0.735	0.684
	Loans & Advances	88.511	58.091	64.880
Total Current Assets		797.686	525.570	389.530
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	105.141	27.343	84.308
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	23.937	10.351	6.482
Total Current Liabilities		129.078	37.694	90.790
Net Current Assets		668.608	487.876	298.740
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		877.543	682.901	407.563

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1335.499	916.756	700.987
		Other Income	4.548	2.200	0.880
		TOTAL (A)	1340.047	918.956	701.867
Less	EXPENSES
		Material consumed	1072.833	680.332	497.851
		Personnel	11.218	9.633	6.349
		Manufacturing, Administrative and other expenses	140.022	121.793	129.675
		Increase/Decrease in Finished Goods	(17.213)	14.941	8.437
		TOTAL (B)	1206.860	826.699	642.312
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		133.187	92.257	59.555
Less	FINANCIAL EXPENSES (D)		62.736	44.532	25.519
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		70.451	47.725	34.036
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.152	7.143	3.847
	PROFIT BEFORE TAX (E-F) (G)		60.299	40.582	30.189
Less	TAX (H)		20.863	13.470	6.612
	PROFIT AFTER TAX (G-H) (I)		39.436	27.112	23.577
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6.887	4.775	(13.802)
Less	APPROPRIATIONS
		General Reserve	40.000	25.000	5.000
	BALANCE CARRIED TO THE B/S		6.323	6.887	4.775

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.94	2.95	3.36
Net Profit Margin (PBT/Sales)	(%)	4.52	4.43	4.31
Return on Total Assets (PBT/Total Assets}	(%)	6.08	5.96	6.25
Return on Investment (ROI) (PBT/Networth)		0.24	0.25	30.30
Debt Equity Ratio (Total Liability/Networth)		3.06	3.45	4.00
Current Ratio (Current Asset/Current Liability)		6.18	13.94	4.29

LOCAL AGENCY FURTHER INFORMATION

Form 8

Corporate identity number of the company	U15326UP1990PLC011773
Name of the company	SWATI MENTHOL AND ALLIED CHEMICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	Opposite Radio Station, Bareilly Rode, Rampur-244901, Uttar Pradesh, India
This form is for	Modification of charge
Type of charge	Book debts Movable property Stock
Particular of charge holder	Bank of Baroda, International Business Branch, Basant Vihar, Civil Lines, Moradabad-244001, Uttar Pradesh, India. e-mail id: intmor@bankofbaroda.com
Nature of instrument creating charge	Sanction Letter ,General Form Of Guarantee, , Board Resolution, Demand Promissory Note
Date of instrument Creating the charge	14.03.2011
Amount secured by the charge	Rs. 1001.600 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - As applicable to export credit as per credit rating/prevailing guidelines of the Bank, subject to change from time to time. Terms of Repayment - 60 days from the date of sanction Margin – 25% Extent and Operation of the charge – Rs. 1001.600 Millions
Particulars of the property charged	Property bearing title deed no. 4948, dated 20.08.2009, bearing khasra no. 175,176 and 177 admeasuring 0.695 hectare. Property situated at village Durg Nagla, Rampur bearing title deed no. 901 in book no. 1, volume no. 4164, pages 309/376 dated 10.02.2010 bearing khasra no. 8/1 admeasuring1.404 hectare. plot no. 169 belonging to swati menthol and allied chemical Private Limited situated at Bareilly road, Rampur plot no. 134b, situated at Bareilly road, opp. modi xerox training center, village durg nagla, belonging to swati menthol and allied chemical Private Limited land and building,situated at opp.radio station, bareilly road, rampur admeasuring 0.56 acre, belonging to m/s Rampur paper and straw products
Date of instrument modifying the charge	27.10.2010
Particulars of the present modification	Sanction of adhoc post shipment credit facility for 90 days by earmarking the limit of bills discounting of Rs. 50.000 millions.

Fixed Assets:

• Plant and machinery
• Building
• Air conditioner
• Car
• Cellular
• Computer
• Cooler
• Cycle
• Door phone and lock
• Drums and container
• EPBX
• Fax
• Fire equipment
• Fixture and fittings
• Furniture
• Generator
• Scooter
• Telephone instrument
• Television
• Telex
• Nestle D/o machine
• Transformer
• Type writer
• UPS and batteries
• Water coolers
• Truck
• Refrigerator
• Lab equipment

As Per Web site Details:

Profile:

WHO GMP and ISO 9001:2000 certified company, they are one of the leading manufacturers and exporters of natural menthol, essential oil, peppermint oil, crude menthol oil, peppermint essential oil and terpene chemicals from India. There reputation as a noteworthy supplier in global supply chain can be credited to there technically advanced production facilities, international quality standards, extensive R and D and customer oriented approach.

There working objective is to achieve total customer satisfaction. At the same time, they also strive to offer effective and reliable products at most competitive prices within scheduled time. The driving force behind this enthusiastic approach is there quest to serve clients with the most dedicated and professionally. In addition, they have a countrywide sales and marketing network in India with a vibrant team of trained and motivated professionals.

The company is promoted by Mr. S. K. Gupta, a Chemical Engineer, who has vast experience in the same industry. He started the first production division i.e. natural menthol manufacturing unit in the year 1977 at Rampur (UP, India).

Awards and Certificates :

• A Government of India Recognized “Star Export House”.
• An ISO 9001-2000 Certified Company.
• Process is as per the standards of HACCP and GMP License.
• Kosher and Halal Certified.
• “State Export Award” winner for year 2000-01.
• One of the largest in Mint Business – Globally.
• Swiss Technology Sulzer Fractional Distillation Column.

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	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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		45

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.