MIRA INFORM REPORT

Report Date :

19.08.2011

IDENTIFICATION DETAILS

Name :	PARAMOUNT MINERALS AND CHEMICALS LIMITED
Registered Office :	33, Old Hanuman Lane, 1^st Cross Lane, Kalbadevi Road, Mumbai - 400 002, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	14.02.1975
Com. Reg. No.:	11-18144
Capital Investment / Paid-up Capital :	Rs.22.100 millions
CIN No.: [Company Identification No.]	U24110MH1975PLC018144
TAN No.: [Tax Deduction & Collection Account No.]	MUMP16380A
PAN No.: [Permanent Account No.]	AAACP2721Q
Legal Form :	A closely held public limited liability company.
Line of Business :	Manufacturer of Spray Dried Optical Brightening Agents and Dye Intermediates.
No. of Employees :	69 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 840000
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.

INFORMATION PARTED BY

Name :	Mr. Yogal Kishor Tiwari
Designation :	Accountant
Contact :	91-9869400741
Date :	17.08.2011

LOCATIONS

Registered/Head Office :	33, Old Hanuman Lane, 1^st Cross Lane, Kalbadevi Road, Mumbai - 400 002, Maharashtra, India
Tel. No.:	91-22-40982500 / 22408562 / 22018562
Mobile No. :	91-9869400741 (Y K Tiwari)
Fax No.:	91-22-40982590 / 22414108 / 22403690
E-Mail :	info@pmclindia.com whitener@vsnl.com
Website :	http://www.pmclindia.com
Area :	1000 Sq. ft
Location :	Rented
Factory :	Plot No. C-6, MIDC Area, Chemical Zone, Ambernath, Maharashtra, India
Tel. No.:	91-22-22682190
Area :	6000 Sq. ft
Location :	Leased

DIRECTORS

As on 24.07.2010

Name :	Mr. Prabhas J. Sanghai
Designation :	Director
Address :	211, Neelambar, 37-A, Pedder Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	14.11.1961
Qualification :	Chemical Engineer
Date of Appointment :	19.11.1988
DIN No. :	00302947
Name :	Mr. Rahul N Sanghai
Designation :	Director
Address :	211, Neelambar, 37-A, Pedder Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	26.11.1973
Qualification :	B.Com
Date of Appointment :	01.01.1997
DIN No. :	00181745
Name :	Mr. Dharaprasad Ramrikhdas Poddar
Designation :	Director
Address :	85, Mount Unique, Peddar Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	02.09.1926
Qualification :	SSC
Date of Appointment :	25.01.2003
DIN No. :	00160138
Name :	Mr. Brijkishore Radhakishan Tambi
Designation :	Director
Address :	205, Satyanarayan Bhavan, 7/1 R G Thadani Marg, Worli, Mumbai – 400 018, Maharashtra, India
Date of Birth/Age :	08.10.1942
Date of Ceasing :	11.02.2008
DIN No. :	00930409

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.07.2010

Names of Shareholders	No. of Shares
Davesh Sanghai	8367
Rahul Kumar Sanghai	12000
Udit Sanghai	12000
Pankaj Kumar Sanghai	12000
Ramesh D. Poddar	3000
Shrikrishan D. Poddar	3000
Pawan Kumar D. Poddar	3000
Rishabh S. Poddar and Arvind Kumar Poddar	11000
Usha Devi Sanghai	5000
Manjula Devi Sanghai	4000
Pritam Kumar Sanghai HUF	4000
Pankaj Kumar Sanghai HUF	5100
Vasudha Sahghai	4000
Gaurav P. Poddar and Sangeeta Poddar	4360
Ankit P. Poddar and Sangeeta Poddar	4300
Rahul V. Poddar and Sunita V. Poddar	7140
Asha Devi Poddar and Ramesh Kumar D. Poddar	5660
Vijaylaxmi A. Poddar and Arvind Kumar M. Poddar	9000
Siyaram Polycote Limited, India	20610
Oxemberg Clothing Limited, India	20610

As on 24.07.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	18.65
Directors or relatives of directors	43.13
Other top fifty shareholders	38.22
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Spray Dried Optical Brightening Agents and Dye Intermediates.

Products :

ITC Code	Products Descriptions
3053	Optical Whitening Agent
3009	DASDA

Brand Names :

Para White

Exports :

Products:

Spray Dried Optical Brightening Agents

Countries :

· Sweden

· Germany

· France

· UAE and etc.

Imports :

Products :

Raw Materials (Chemicals)

Countries :

· China

· Thailand

· Germany

Terms :

Selling :

L/C and Credit (30 days)

Purchasing :

L/C and Credit (90 days)

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity
Optical Whitening Agent	Kg.	4500000	3000000
Dasda	Kg.	1500000	500000

GENERAL INFORMATION

Customers :

Manufacturers

No. of Employees :

69 Approximately

Bankers :

· Central Bank of India

Corporate Banking Finance Branch, Central bank of India Building, 1^st Floor, M. G. Road, Mumbai-400 023, Maharashtra, India

· The Zoroastrian Co-operative Bank Limited

Hanuman Circle, Fort, Mumbai, Maharashtra, India

· Export Import Bank of India

Central One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

Facilities :

Secured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
FROM BANK
Cash Credit / Working Capital Loan
Rupee Loan (Secured by hypothecation of stock and book debts, collateral security by extension of charge on the Fixed Assets of the company and personally guaranteed by the present and ex-director of the company)	32.839	45.531
Packing Credit Loan
Rupee Loan (Against export orders)	27.320	0.000
FROM INSTITUTIONS
Term Loan
Foreign Currency Loan	49.944	61.774
Rupee Loan (Secured against pari passu first charge on all existing and proposed immoveable and moveable assets of the company and personally guaranteed by the Directors of the company)	10.500	0.000
Packing Credit Loan
Foreign Currency Loan Against export orders / LC’s)	46.138	62.031
FROM OTHERS
Rupee Loan
(Against hypothecation of vehicle and personally guarantee by Director)	0.631	1.622
(From Life Insurance Corporation of India against hypothecation keyman policies)	1.170	0.000
Total	168.542	170.958

Unsecured Loans	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Intercorporate loan	30.100	39.155
Loans from shareholders, Directors and their relatives	44.299	62.350
Trade deposits	8.211	7.332
Total	82.610	108.837

Banking Relations :	--
Auditors :
Name :	A. K. Sonthalia and Company Chartered Accountant
Address :	384 M, Kalbadevi Road, Mumbai – 400 002, Maharashtra, India
PAN No :	AORPS3132E
Tel No :	91-22-66332328

CAPITAL STRUCTURE

As on 24.07.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
221000	Equity Shares	Rs.100/- each	Rs.22.100 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
221000	Equity Shares	Rs.100/- each	Rs.22.100 millions

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		22.100	22.100	22.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		187.589	229.433	200.312
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		209.689	251.533	222.412
LOAN FUNDS
1] Secured Loans		198.442	168.542	170.958
2] Unsecured Loans		73.233	82.610	108.837
TOTAL BORROWING		271.675	251.152	279.795
DEFERRED TAX LIABILITIES		37.809	0.000	0.000
TOTAL		519.173	502.685	502.207
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		347.021	367.584	386.252
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.100	0.100	0.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	105.422	77.277	91.680
	Sundry Debtors	103.184	90.224	70.262
	Cash & Bank Balances	8.220	6.789	6.507
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	55.327	53.012	30.094
Total Current Assets		272.153	227.302	198.543
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	100.101	83.023	81.739
	Other Current Liabilities		0.087	0.299
	Provisions		9.191	0.650
Total Current Liabilities		100.101	92.301	82.688
Net Current Assets		172.052	135.001	115.855
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		519.173	502.685	502.207

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales and Receipts	887.875	793.046	654.422
		Other Income	5.881	3.749	2.840
		TOTAL (A)	893.756	796.795	657.262
Less	EXPENSES
		Payments and Benefits to Employees	17.520	13.533	12.662
		Manufacturing and Other Expenses	811.516	676.813	630.013
		Increase / (Decrease) in Stock	4.521	8.343	(16.472)
		TOTAL (B)	833.557	698.689	626.203
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		60.199	98.106	31.059
Less	INTEREST (D)		31.717	29.513	30.930
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		28.482	68.593	0.129
Less/ Add	DEPRECIATION/ AMORTISATION (F)		25.695	24.738	24.247
	PROFIT/LOSS BEFORE TAX (E-F) (G)		2.787	43.855	(24.118)
Less	TAX (H)		0.510	7.250	0.650
	PROFIT/LOSS AFTER TAX (G-H) (I)		2.277	36.605	(24.768)
Add	DEFERRED TAX		1.776	0.000	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		17.259	1.946	11.512
Add	PRIOR YEAR ADJUSTMENT (EXCESS/(SHORT) PROVISION OF INCOME TAX		0.058	0.000	0.202
Less /Add	APPROPRIATIONS
		Transferred to General Reserve	1.085	20.000	0.000
		Transferred from General Reserve	0.000	0.000	15.000
		Interim Dividend	0.000	1.105	0.000
		Tax on Interim Dividend	0.000	0.186	0.000
	BALANCE CARRIED TO THE B/S		20.285	17.259	1.946
	EARNINGS IN FOREIGN CURRENCY		NA	469.396	357.501
		Export Earnings
	Earnings Per Share (Rs.)		10.30	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.25	4.59	(3.77)
Net Profit Margin (PBT/Sales)	(%)	0.31	5.53	(3.69)
Return on Total Assets (PBT/Total Assets}	(%)	0.45	7.37	(4.12)
Return on Investment (ROI) (PBT/Networth)		0.01	0.17	(0.11)
Debt Equity Ratio (Total Liability/Networth)		1.77	1.37	1.63
Current Ratio (Current Asset/Current Liability)		2.72	2.46	2.40

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	31.03.2011 Rs. in millions	31.03.2010 Rs. in millions	31.03.2009 Rs. in millions
For Goods	Details are not available	74.337	73.395
For Expenses		7.875	7.819
For Others		0.811	0.525
Total		83.023	81.739

TRADE REFERENCES

· Rohit Surfactants Private Limited

· Procter and Gamble

FORM 8

Corporate identity number of the company	U24110MH1975PLC018144
Name of the company	PARAMOUNT MINERALS AND CHEMICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	33, Old Hanuman Lane, 1^st Cross Lane, Kalbadevi Road, Mumbai - 400 002, Maharashtra, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90187100
Type of charge	· Immovable property · Movable property (not being pledge) · Floating charge
Particular of charge holder	Export Import Bank of India Central One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India
Nature of instrument creating charge	Letter of Confirmation dated 17th June, 2011 executed by Paramount Minerals and Chemicals Limited (the Borrower) in favour of Export- Import Bank of India (Exim Bank) and agreeing that security created for the Loan of USD 2.20 Million shall continue for the further period of one year upon renewal.
Date of instrument Creating the charge	17.06.2011
Amount secured by the charge	Rs.94.600 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest USD: LIBOR (6 months) + 400 bps p.a. (all inclusive), payable quarterly. INR: subject to reset 11.50% p.a. payable at monthly rests. Terms of repayment Each advance relating to preshipment credit shall be repaid by the company within 180 days from the date of such advance or out of relative export proceeds or equivalent advance from postshipment credit, whichever is earlier. Each advance relating to postshipment credit shall be repaid by the company within 180 days from the date of such advance or out of relative export proceeds, whichever is earlier. Margin Pre-shipment credit: Min. 15% of individual export order Post-shipment credit: Min. 10% of individual export bill Extent and operation of the charge The charge created under the deed of hypothecation shall operate as a continuing security by way of a first pari passu charge over the company's fixed assets and current assets including receivables as security for repayment of loan upto the renewed limit of us $ 2.20mn (equiv to Rs.94.600 millions to be availed in dollars or equivalant rupees), together with interest and all other monies payable by the company to exim bank under the dual currency pre/post-shipment loan agreement.
Short particulars of the property charged (Including location of the property)	· Book-debts, receivables, outstanding moneys, claims, demands, bills, contracts, engagements and securities. · Stocks of raw materials, finished and semi finished goods, goods in process and consumable stores. · Movable plant and machinery, equipment, appliances, furniture, vehicles, machinery spares and stores, tools and accessories. · Related movables in transit or delivery. · Immovable property situated at Plot No. C-6 in the Ambernath Ind. Area, Village Kansai, Tal and Sub-District Ulhasnagar, Dist. Thane of 6348 sq. mtr. with Bldg and structures and Plant and Machinery thereon
Particulars of the present modification	Charge created by the Principal DOH dated 15/10/04 over its movable assets and modified under supplemental DOH dated 18/05/06, 07/07/07, 05/05/08and 24/07/08 and further modified by mortgage created by deposit of title deeds dated 30/03/09 and further modify by Letter of confirmation dated 23/07/10 shall continue to secure the loan of Rs.94.600 millions (equiv to USD 2.20mn) for a further period of one year on terms and conditions contained in the letter of confirmation dated 17/06/11.

FIXED ASSETS

· Leasehold Land

· Factory Building

· Plant and Machinery

· Electric Installation, Lab Equipments and Air Conditioners

· Water Pollution Control Equipment

· Computer and Peripherals

· Furniture and Office Equipments

· Motor Car

· Cycle

· Trade Mark

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.45.61
UK Pound	1	Rs.75.32
Euro	1	Rs.65.68

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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.