MIRA INFORM REPORT

Report Date :

18.08.2011

IDENTIFICATION DETAILS

Name :	GUJARAT BORON DERIVATIVES PRIVATE LIMITED
Registered Office :	Synergy House, Subhanpuragorva Road, Baroda – 390023, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	25.11.1988
Com. Reg. No.:	04-011552
Capital Investment / Paid-up Capital :	Rs.1.600 Millions
CIN No.: [Company Identification No.]	U24231GJ1988PTC011552
TAN No.: [Tax Deduction & Collection Account No.]	BRDG00332D
PAN No.: [Permanent Account No.]	AAACG6865E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Boron Product like Boric Acid
No. of Employees :	48 (In Office 18 and In Factory 30) (Approximately)

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 119000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track records. 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. Shetal Jagtap
Designation :	Accounts Manager
Contact No.:	91-9825037853
Date :	16.08.2011

LOCATIONS

Registered Office :	Synergy House, Subhanpuragorva Road, Baroda – 390023, Gujarat, India
Tel. No.:	91-265-2284002
Mobile No.:	91-9825037853 (Mr. Shetal Jagtap)
Fax No.:	91-265-2284008
E-Mail :	info@gbdpl.com cccl@wilnetonline.net
Website :	http://www.bdpl.com indianborx@igara.net
Area :	8000 sq. ft.
Location :	Owned
Factory :	Pratappura Halol, Dist Panchmahal, India
Area :	50000 sq. ft. (Approximately)
Location :	Owned

DIRECTORS

AS ON : 27.09.2010

Name :	Mr. Kishor Amritlal Shah
Designation :	Director
Address :	3, Neha Apartment, R.C. Dutt Road, Vadodara, Gujarat, India
Date of Birth/Age :	30.10.1950
Date of Appointment :	28.11.1988
Din No.:	00918674
Name :	Mr. Ashwin Amritlal Shah
Designation :	Director
Address :	66, Suvernapuri Soc, Chikuwadi, Jatalpur Road, Vadodara, Gujarat, India
Date of Birth/Age :	30.10.1954
Date of Appointment :	04.01.1997
Din No.:	00450940
Name :	Mr. Kamlesh Kantilal Shah
Designation :	Director
Address :	8/B, Varsha Soc Ajwa Road, Vadodara, Gujarat, India
Date of Birth/Age :	30.10.1950
Date of Appointment :	01.01.2002
Din No.:	00838969

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON : 27.09.2010

Names of Shareholders	No. of Shares
Kishor Amritlal Shah	116000
Meena Kishor Shah	44000
Total	160000

AS ON : 27.09.2010

Category	Percentage
Bodies corporate	3.75
Directors or relatives of Directors	96.25
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Boron Product like Boric Acid
Brand Names :	Gujarat Boron
Exports :
Products :	Boron Products
Countries :	· Singapore · China
Imports :
Products :	Raw Material
Countries :	Turkey
Terms :
Selling :	L/C, Cash, Credit (TT)
Purchasing :	L/C, Cash, Credit

GENERAL INFORMATION

Customers :

· Dealers

· Distributors

No. of Employees :

48 (In Office 18 and In Factory 30) (Approximately)

Bankers :

Bank of Baroda, Halol, Dist. Panchmahal, Halol – 391510, Gujarat, INDIA

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Working Capital Facilities (Bank of Baroda, Halol Branch)	27.553	22.277
Total	27.553	22.277
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Directors, Shareholders	0.4636	0.571
Others	0.500	0.500
Total	0.963	1.071

Banking Relations :	---
Auditors :
Name :	P.S. Jamdar Chartered Accountant
Address :	FF 9-13, nilkanth Complex, Opposite Govind Bhuvan, Dandia Bazar, Vadodara – 390001, Gujarat, India
Tel. No.:	91-265-2435407
Sister Concern :	· Consoladated Cobalt Chemicals Limited, Kandla, India · KRP Vinijya Private Limited, Halal, India

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
160000	Equity Shares	Rs.10/- each	Rs.1.600 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		1.600	1.600	1.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		28.245	24.271	13.703
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		29.845	25.871	15.303
LOAN FUNDS
1] Secured Loans		27.553	22.277	22.213
2] Unsecured Loans		0.964	1.071	1.618
TOTAL BORROWING		28.517	23.348	23.831
DEFERRED TAX LIABILITIES		0.196	0.057	0.064
TOTAL		58.558	49.276	39.198
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.385	6.402	6.480
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.161	0.161	0.160
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	18.291	19.078	13.898
	Sundry Debtors	47.027	37.593	28.795
	Cash & Bank Balances	5.703	22.969	3.748
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.461	7.866	2.755
Total Current Assets		76.482	87.506	49.196
Less : CURRENT LIABILITIES & PROVISIONS
	Other Current Liabilities	0.465	0.000	5.093
	Sundry Creditors	19.520	38.619	11.545
	Provisions	7.485	6.236	0.000
Total Current Liabilities		27.470	44.855	16.638
Net Current Assets		49.012	42.651	32.558
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
STATITORY LIABILITIES		0.000	0.062	0.000
TOTAL		58.558	49.276	39.198

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	208.667	226.024	176.510
		Income from Processing		0.943	1.468
		Other Income	8.379	0.939	1.934
		Deferred Tax Assets		0.006	0.000
		TOTAL (A)	217.046	227.912	179.912
Less	EXPENSES
		Raw Material Consumed		110.160	82.623
		Cost of Traded Goods		61.927	56.120
		Manufacturing Selling and Other Expenses		26.879	22.605
		Exchange rate Difference Expenses		5.900	0.000
		Increase in Stock		1.477	0.699
		TOTAL (B)		206.343	162.047
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		197.250	21.569	17.865
Less	FINANCIAL EXPENSES (D)			3.719	3.885
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			17.850	13.980
Less/ Add	DEPRECIATION/ AMORTISATION (F)			1.141	0.518
	PROFIT BEFORE TAX (E-F) (G)		11.417	16.709	13.462
Less	TAX (I)		3.575	6.097	6.520
	PROFIT AFTER TAX (G-I) (J)		7.842	10.612	6.942
	PROVISION FOR INCOME TAX PREVIOUS YEAR		0.000	0.000	0.400
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	12.646	5.708
	BALANCE CARRIED TO THE B/S		NA	23.259	12.646
	IMPORTS
		Raw Materials	99.420	76.203	59.205
		Traded Goods	15.422	32.531	26.788
	TOTAL IMPORTS		114.842	108.734	85.993
	Earnings Per Share (Rs.)		49.01	66.33	--

Particulars	31.03.2011
Sales Turnover (Approximately)	230.000

The above information has been parted by Mr. Shetal Jagtap.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.61	4.65	3.85
Net Profit Margin (PBT/Sales)	(%)	5.47	7.39	7.62
Return on Total Assets (PBT/Total Assets}	(%)	13.29	17.79	24.17
Return on Investment (ROI) (PBT/Networth)		0.38	0.64	0.87
Debt Equity Ratio (Total Liability/Networth)		1.87	2.63	2.64
Current Ratio (Current Asset/Current Liability)		2.78	1.95	2.95

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS :

Particulars	31.03.2010	31.03.2009	31.03.2008
Creditors For Goods	16.851	38.063	10.809
Creditors For Expenses	2.669	0.556	0.736
Total	19.520	38.619	11.545

OPERATIONS AND FUTURE PROSPECTS :

The business during the year increased substantially as compared to last year despite tight competitive edge from cheap imports. All expenses, save incidence of interest cost, have been controlled. During the current year so far the situation is adversely affected with steep fall in exchange rates. However the market L has taken its position of stabilization. Since the Company's products are well accepted on quality base by their customers, it is expected that the working in the second half of the year, with stabilizing market condition, will remain better. The directors for a long run project a better performance both in terms of operation and working results. The drop in profit is mainly due to increased cost of Raw Material and decrease in sales prices of Finished Goods

FORM : 8

Corporate identity number of the company	U24231GJ1988PTC011552
Name of the company	GUJARAT BORON DERIVATIVES PVT LTD
Address of the registered office or of the principal place of business in India of the company	Synegy House Subhanpuragorva Road, Baroda Gujarat, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Bank of Baroda, Halol, Dist. Panchmahal, Halol – 391510, Gujarat, INDIA
Nature of instrument creating charge	Fifth Supplemental Composite Agreement of Hypothecation of Goods, Book - Debts, Moveable Machineries and Vehicles
Date of instrument Creating the charge	20.01.2011
Amount secured by the charge	Rs. 54.250 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Cash Credit: 3.25% above base rate i.e. 12.25% (base rate 9.00 % ) at present Baroda SME Gold Card: 3.25% above base rate i.e. 12.25% Terms of repayment Repayable on demand. Margin Stocks / Inventory - 25% Book - Debts - 30% Misc Bank Guarantee : 15% Extent and operation of the charge First Charge on all movable assets of the company. Other Nil
Short particulars of the property charged (Including location of the property)	All the stocks of Raw - Materials, Stocks-in Process, Finished goods, Consumable spares and Packing Material All the present and future Book - debts outstanding, Monies, Receivables, Claims. All the Moveable Machinery including all stores and spare parts, both present and future.
Date of instrument modifying the charge	24.12.2009
Particulars of the present modification	The existing charge of Rs. 52.000 millions (Break up Cash Credit Rs. 42.500 millions, Bank Guarantee Rs. 2.000 millions, Working capital Demand Loan Rs. 7.500 millions ) has been enhanced to Rs. 54.250 millions to cover the additional finance facilities of Rs. 2.250 millions.(Break up of Rs. 54.250 millions is Cash Credit of Rs. 47.500 millions, Bank Guarantee of Rs. 2.000 millions, Baroda SME Gold Card of Rs. 4.750 millions).

TRADE REFERENCES :

· Multi Chem Corporation – Ahmadabad

· Nipro Glass India Private Limited – Baroda

FIXED ASSETS :

· Freehold Land

· Factory Building

· New Shed

· Office Building

· Plant and Machinery

· Furniture and Fixtures

· Electrical Installation

· Tools and Equipments

· Cycle

· Motor Car

· Software

· Data processing Equipments

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] 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. 45.36
UK Pound	1	Rs. 74.55
Euro	1	Rs. 65.33

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	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	Yes
--AFFILIATION	YES/NO	Yes
--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.