MIRA INFORM REPORT

Report Date :

17.12.2011

IDENTIFICATION DETAILS

Name :	DOVE CHEMICALS LIMITED
Registered Office :	SCO 144 Sector 28 D, Chandigarh- 160002
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.05.2003
Com. Reg. No.:	53-026029
Capital Investment / Paid-up Capital :	Rs. 0.814 Million
CIN No.: [Company Identification No.]	U24231CH2003PLC026029
TAN No.: [Tax Deduction & Collection Account No.]	PTLD11565B
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Marketing organization with specialization in chemicals for pharmaceutical and cosmetic industries.
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 24000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company has incurred a loss in the current year. However, networth appears to be satisfactory. 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	SCO 144 Sector 28 D, Chandigarh- 160002, India
Tel. No.:	91-172-2651606 / 2651876
Fax No.:	91-172-2637650
E-Mail :	dovechemicals@gmail.com
Website :	http://www.dovechemicals.com

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Anil Arya
Designation :	Managing Director
Address :	SCO 144 Sector 28 D, Chandigarh- 160002, India
Date of Birth/Age :	30.06.1956
Date of Appointment :	21.05.2003
DIN No.:	00740382
Name :	Mr. Chander Mohan Taluja
Designation :	Director
Address :	SCO 144 Sector 28 D, Chandigarh- 160002, India
Date of Birth/Age :	02.04.1957
Date of Appointment :	21.05.2003
DIN No.:	00740228
Name :	Mr. Shyam Singh
Designation :	Director
Address :	SCO 144 Sector 28 D, Chandigarh- 160002, India
Date of Birth/Age :	11.05.1966
Date of Appointment :	21.05.2003
DIN No.:	00740480

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Anil Arya	19600
Chander Mohan Taluja	24500
Vibha Taluja	3000
V P Seth	1200
Payal Sharma	1000
Satish Kumar	1500
Rajesh Gopalan	500
Sanjiv Malik	3000
Anup Kumar Pandey	2000
Akshay Malhotra	500
Abha Malhotra	500
Yadav Raj Singh Bhati	500
Usha Pandey	1000
Baldev Rai Kohli	1000
Vanita Advani	1000
Ravindra Kumar Goyal	1000
K K Kalyan	1000
J N Advani	1000
Sawahan Lata Arya	8000

AS ON 30.09.2011

Equity Shares Break Up	Percentage
Directors or relatives of Directors	77.00
Other top fifty shareholders	23.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Marketing organization with specialization in chemicals for pharmaceutical and cosmetic industries.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Canara Bank, SCO 167-168, Sector 8-C, Chandigarh – 160018, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Canara Bank Against
Hypothecation of Stock and Book Debts	4.400	1.346
Against hypothecation of Vehicles	0.771	0.953
Total	5.172	2.300
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Directors Relatives	0.150	0.157
Total	0.150	0.157

Banking Relations :	----
Auditors :
Name :	Kumar Nohria and Company Chartered Accountant
Address :	SCO 2470, Sector 22-C, Chandigarh – 160022, India
PAN No.:	AARPN5971C

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.10/- each	Rs. 1.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
81400	Equity Shares	Rs.10/- each	Rs. 0.814 Million

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		0.814	0.814	0.814
2] Share Application Money		0.045	0.045	0.045
3] Reserves & Surplus		5.215	5.228	3.258
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6.074	6.087	4.117
LOAN FUNDS
1] Secured Loans		5.172	2.300	3.649
2] Unsecured Loans		0.150	0.157	0.000
TOTAL BORROWING		5.322	2.457	3.649
DEFERRED TAX LIABILITIES		0.331	0.331	0.045
TOTAL
		11.727	8.875	7.811
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.625	11.924	0.613
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.200	3.125	1.741
	Sundry Debtors	31.705	19.663	23.035
	Cash & Bank Balances	0.371	0.045	0.007
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.446	2.653	0.646
Total Current Assets		40.722	25.486	25.429
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	33.772	25.144	15.390
	Other Current Liabilities	5.746	2.765	2.022
	Provisions	0.102	0.626	0.819
Total Current Liabilities		39.620	28.535	18.231
Net Current Assets		1.102	(3.049)	7.198
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		11.727	8.875	7.811

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	104.293	119.088	87.286
		Misc. Income	6.930	2.033	0.223
		TOTAL (A)	111.223	121.121	87.509
Less	EXPENSES
		Cost of Goods Sold	97.378	108.986	79.617
		Freight and Cartage Inward	1.366	3.030	2.015
		Marketing Expenses	2.938	2.621	1.020
		Other Administrative Expenses	6.563	2.860	1.818
		TOTAL (B)	108.245	117.497	84.470
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.978	3.624	3.039
Less	FINANCIAL EXPENSES (D)		0.754	0.496	0.426
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.224	3.128	2.613
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.135	0.247	0.023
	PROFIT BEFORE TAX (E-F) (G)		0.089	2.881	2.590
Less	TAX (H)		(13.383)	0.911	0.867
	PROFIT AFTER TAX (G-H) (I)		(13.472)	1.970	1.723
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.228	3.258	1.534
	BALANCE CARRIED TO THE B/S		5.215	5.228	3.258
	Earnings Per Share (Rs.)		Nil	24.20	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(12.11)	1.62	1.96
Net Profit Margin (PBT/Sales)	(%)	(0.08)	2.41	2.96
Return on Total Assets (PBT/Total Assets}	(%)	0.17	7.70	9.94
Return on Investment (ROI) (PBT/Networth)		0.01	0.47	0.62
Debt Equity Ratio (Total Liability/Networth)		7.39	5.09	5.31
Current Ratio (Current Asset/Current Liability)		1.02	0.89	1.39

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS :

During the year the company had a turnover of Rs. 111.223 millions (Rs. 121.122 millions). After taking into consideration the various expenses there was a net profit of Rs. 0.089 millions (Rs. 2.881 millions) after providing depreciation of Rs. 2.135 millions (Rs. 0.247 millions). During the year the company started trading of writing pens and also set up Research Lab. In order to build inventory for increasing the turnover and repayment of creditors the directors are unable to recommend any dividend.

FORM 8

Corporate identity number of the company	U24231CH2003PLC026029
Name of the company	DOVE CHEMICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	SCO 144, Sector 28 D, Chandigarh – 160002, India
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Canara Bank, SCO 167-168, Sector 8-C, Chandigarh, - 160018, India
Nature of instrument creating charge	Deed Of Hypothecation Vehicles
Date of instrument Creating the charge	29/03/2010
Amount secured by the charge	Rs. 0.620 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 12% P.A. Terms of repayment Repayable In 36 Monthly Installments of RS.20803/- Each. The First of Such Installment Shall Commence From 29.04.2010 Margin Not Mentioned Extent and operation of the charge 100% Other
Short particulars of the property charged (Including location of the property)	Hypothecation of Tata LPT 709/38 Model 2010 Engine No. 497TC93AZY805P20 Chassis No. MAT386561ABA04361

FIXED ASSETS :

· Books

· Computer

· Office Equipments

· Scooter

· Water Cooler

· Vehicle Tata

· Fax Machine

· Air Conditioners

· Furniture and Fixtures

· Lab Equipments

· Television

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. 52.81
UK Pound	1	Rs. 82.00
Euro	1	Rs. 68.80

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.