MIRA INFORM REPORT

Report Date :

08.12.2011

IDENTIFICATION DETAILS

Name :	LORD INDIA CHEMICAL PRODUCTS PRIVATE LIMITED
Formerly Known As :	UNILOK ADHESIVES AND CHEMICALS PRIVATE LIMITED
Registered Office :	A/401-404, 4^th Floor, 215-Atrium, Chakala, Andheri Kurla Road, Andheri (East), Mumbai – 400 093, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.09.1985
Com. Reg. No.:	11-37482
Capital Investment / Paid-up Capital :	Rs.8.750 Millions
CIN No.: [Company Identification No.]	U24295MH1985PTC037482
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers, Exporters, Importers, Suppliers of Industrial Adhesives.
No. of Employees :	45 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 870000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be 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. Samir
Designation :	Finance Manager
Contact No.:	91-22-61316500
Date :	07.12.2011

LOCATIONS

Registered Office :	A/401-404, 4^th Floor, 215-Atrium, Chakala, Andheri Kurla Road, Andheri (East), Mumbai – 400 093, Maharashtra, India
Tel No.:	91-22-61316500 / 67251912
Fax No.:	Not Available
E-Mail :	balan_mahadevan@lord.com sameer_phatak@lord.com vilas_dhavale@lord.com
Area :	5000 Sq. ft.
Location :	Rented
Administrative Office :	Unit No. 411, 4^th Floor, Brigade Tower, Brigade Road, Bangalore – 560 025, Karnataka, India
Tel No.:	91-80-22112382
Location :	Rented
Factory :	Plot No. 26, MIDC Satpur, Nashik – 422 007, Maharashtra, India
Location :	Owned

DIRECTORS

As on 05.08.2011

Name :	Mr. Vilas Vaman Dhavale
Designation :	Managing Director
Address :	703, Solitude CHS, Bhogoji Keer Marg, Mahim, Mumbai - 400 016, Maharashtra, India
Qualification :	B. Sc. (Hons.), D.S.C.T.
Date of Appointment :	07.06.2007
DIN No.:	01642505
Name :	Mr. Edward Charles Gustin II
Designation :	Director
Address :	3B, 127 Repulse Bay Road, Repulse Bay ABDABD45
Date of Birth/Age :	08.11.1952
Date of Appointment :	25.09.2009
DIN No.:	02646265

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24295MH1985PTC037482	Lord India Chemical Products Private Limited	Director	25-09-09	21-01-09	Active	NO

Name :	Jonathan Douglas Oechsle
Designation :	Director
Address :	1115, Grogans Mill Drive Cary North Caronline Cary, 27519
Date of Birth/Age :	23.10.1964
Date of Appointment :	25.09.2009
DIN No.:	02488956

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24295MH1985PTC037482	Lord India Chemical Products Private Limited	Director	25-09-09	21-01-09	Active	NO

Name :	Mr. David Erwin Siporin
Designation :	Director
Address :	Flat No. A 46/F AIG Burth, 12 Tregenter Path, Mid Levels, Hong Kong
Date of Appointment :	16.11.2005
DIN No.:	02488938
Name :	Tesa Lynn Oechsle
Designation :	Director
Address :	1115 Grogans Mill Drive Cary North Caronline 27519
Date of Birth/Age :	25.04.1966
Date of Appointment :	25.09.2009
DIN No.:	02609395

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24295MH1985PTC037482	Lord India Chemical Products Private Limited	Director	25-09-09	21-01-09	Active	NO

KEY EXECUTIVES

Name :	Mr. Samir
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 05.08.2011

Names of Shareholders	No. of Shares
Lord Corporation, USA	87499
Lord Far East Inc., Japan	1
Total	87500

As on 05.08.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers, Exporters, Importers, Suppliers of Industrial Adhesives.

Product Description :

Product Description	ITC Code
Prepared glues and other prepared adhesives	3506.00

Exports :

Products :

Industrial Adhesives

Countries :

Sri Lanka

Imports :

Products :

Raw Materials

Countries :

USA

Terms :

Selling :

Credit (30 days)

Purchasing :

Credit (30 days)

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity*	Actual Production
Special Bonding Adhesive and Diluents	Ltrs.	1208000	1121198

* As certified by the management and accepted by the auditors.

GENERAL INFORMATION

Customers :

Wholesalers

· Avik Polychem Private Limited

· Sigma Vibracoustic Private Limited

· R. R. Agencies

No. of Employees :

45 (Approximately)

Bankers :

HDFC Bank, Nashik, Maharashtra, India

Facilities :

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Deferred Sales Tax Loan	5.979	6.112
Total	5.979	6.112

Due within one year Rs.0.062 million (Previous year Rs.0.133 million) The Company has availed of interest free Sales Tax Deferral Loans under following

said schemes:

1. Part I of the 1983 Package Scheme of Government of Maharashtra, deferred for period of 12 years and repayable in six annual installments, and

2. Part I of the 1988 Package Scheme of Government of Maharashtra, deferred for a period of 10 years and repayable in five annual installments.

Banking Relations :	--
Financial Institutions :	The Maharashtra State Financial Corporation New Excelsior Building, A.K Nayak Marg, Fort, Mumbai – 400001, Maharashtra, India
Auditors :
Name :	S. V. Ghatalia and Associates Chartered Accountants
Address :	Jalan Mill Compound, 95, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India
PAN No.:	AACFS6921Q
Holding Company :	Lord Corporation, USA
Fellow Subsidiaries :	· Lord Far East Inc., Japan · Lord Germany GmbH · Lord Asia Pacific Limited, Hong Kong

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
87500	Equity Shares	Rs.100/- each	Rs.8.750 Millions

Notes

· 87500 Equity shares are held by Lord Corporation, USA the holding company.

· 2880 Equity shares were allotted as fully paid-up in consideration other than cash in terms of the scheme of amalgamation of Material Testing Machines Private Limited with the Company sanctioned by the High Court of Judicatures of Bombay on 13^th March, 1987.

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		8.750	8.750	8.750
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		209.835	138.902	131.206
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		218.585	147.652	139.956
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		5.979	6.112	6.305
TOTAL BORROWING		5.979	6.112	6.305
DEFERRED TAX LIABILITIES		1.547	1.668	2.192
TOTAL		226.111	155.432	148.453
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		62.710	57.536	56.923
Capital work-in-progress		2.285	8.776	0.000
INVESTMENT		0.000	0.000	15.142
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	66.283	48.026	37.640
	Sundry Debtors	101.386	90.048	61.039
	Cash & Bank Balances	23.964	22.852	10.636
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	35.663	18.932	9.962
Total Current Assets		227.296	179.858	119.277
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	42.478	26.617	8.578
	Other Current Liabilities	21.502	41.792	30.804
	Provisions	2.200	22.329	3.507
Total Current Liabilities		66.180	90.738	42.889
Net Current Assets		161.116	89.120	76.388
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		226.111	155.432	148.453

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales (Net)	641.569	484.211	366.312
		Other Income		2.879	2.174
		TOTAL (A)	641.569	487.090	368.486
Less	EXPENSES
		Consumption of raw materials	375.889	196.390	137.927
		(Increase)/decrease in inventory		(2.284)	5.959
		Personnel Expenses		26.649	23.725
		Other Operating Expenses		44.872	30.513
		TOTAL (B)	375.889 (Including Financial Expenses)	265.627	198.124
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			221.463	170.362
Less	FINANCIAL EXPENSES (D)			0.724	0.442
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		265.680	220.739	169.920
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.235	7.718	6.979
	PROFIT BEFORE TAX (E-F) (G)		257.445	213.021	162.941
Less	TAX (H)		85.479	72.538	55.913
	PROFIT AFTER TAX (G-H) (I)		171.966	140.483	107.028
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.559	7.695	39.847
Less	APPROPRIATIONS
		Interim dividend	86.188	95.813	109.812
		Proposed Final Dividend	0.000	17.500	0.000
		Tax on Dividend	14.648	19.257	18.663
		Transfer to General Reserve	17.197	14.049	10.705
	BALANCE CARRIED TO THE B/S		55.492	1.559	7.695
	EARNINGS IN FOREIGN CURRENCY		76.328	44.102	31.949
	IMPORTS
		Raw Materials	175.298	122.583	78.816
		Capital Items	0.771	0.000	1.104
		Computer Software	0.000	0.000	0.207
	TOTAL IMPORTS		176.069	122.583	80.127
	Earnings Per Share (Rs.)		1965.33	1606.00	1223.00

Expected Sales (2011-2012) : Rs.720.000 millions

The above information has been parted by Mr. Samir

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	26.80	28.84	29.05
Net Profit Margin (PBT/Sales)	(%)	NA	43.99	44.48
Return on Total Assets (PBT/Total Assets}	(%)	88.77	89.73	92.48
Return on Investment (ROI) (PBT/Networth)		1.18	1.44	1.16
Debt Equity Ratio (Total Liability/Networth)		0.33	0.66	0.35
Current Ratio (Current Asset/Current Liability)		3.43	1.98	2.78

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Dues of Micro, Medium and Small Enterprises	1.187	1.038	0.589
Others	41.291	25.579	7.989
Total	42.478	26.617	8.578

Sr. No.	Check List by Info Agents
1.	Year of Establishment	YES
2.	Locality of the firm	YES
3.	Constitutions of the firm	YES
4.	Premises details	YES
5.	Type of Business	YES
6.	Line of Business	YES
7.	Promoter’s background	--
8.	No. of employees	YES
9.	Name of person contacted	YES
10.	Designation of contact person	YES
11.	Turnover of firm for last three years	YES
12.	Profitability for last three years	NO
13.	Reasons for variations <> 20%	--
14.	Estimation for coming financial year	YES
15.	Capital in the business	YES
16.	Details of sister concerns	--
17.	Major Suppliers	--
18.	Major Customers	YES
19.	Payment terms	YES
20.	Export / Import details (is applicable)	YES
21.	Market information	--
22.	Litigation that the firm / promoter involved in	--
23.	Banking Details	YES
24.	Banking facility details	--
25.	Conduct of the banking account	--
26.	Buyer visit details	--
27.	Financials, if provided	NO
28.	Incorporation details, if applicable	--
29.	Last accounts filed at ROC	--
30.	Major Shareholders, is available	--

NATURE OF OPERATIONS

The company was incorporated in India as a Private Limited Company under the Companies Act, 1956 on September 12, 1985. The Company is engaged in manufacture and supply of Industrial Adhesives.

BUSINESS PERFORMANCE

On the back of recovery of business sentiments, the sales growth picked up further during the year and enabled the Company to show an impressive growth for the full year. The Company continued to maintain its market share and the sales of Chemlok products registered a growth over 32% as compared to previous year and the profits before tax and depreciation, before extra ordinary items were grown by 20%.

The Company expects the economic climate to be stable in the coming months in spite of high inflation prevalent in the country and regular increase in the interest rates by Reserve Bank of India as part of its monitory policy

CONTINGENT LIABILITIES NOT PROVIDED FOR (As on 31.03.2011)

1. Sales tax demand of Rs.2.096 millions for financial year 2000-01 in respect of which the Company has gone into an appeal with Sales Tax Tribunal.

2. During the financial year 200-10, the Company had received Demand Notice from Sales Tax Department for A.Y. 2005-06 for an amount of Rs.0.441 million. Company has already filed rectification letter against the same which has been accepted by the Dy. Commissioner and no further order has been issued on the company.

TRADE REFERENCES

· Avik Polychem Private Limited

· Sigma Vibracoustic Private Limited

· R. R. Agencies

FIXED ASSETS

· Leasehold Land

· Leasehold Improvements

· Buildings

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· Computers

· Vehicles

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.51.45
UK Pound	1	Rs.80.38
Euro	1	Rs.69.12

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.