MIRA INFORM REPORT

Report Date :

04.01.2011

IDENTIFICATION DETAILS

Name :	ROYAL CASTOR PRODUCTS LIMITED

Formerly Known As :	ROYAL CASTOR PRODUCTS PRIVATE LIMITED

Registered Office :	Unjha-Sidhpur State Highway, At Ahali, Sidhpur – 384151, Gujarat

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	22.08.1994

Com. Reg. No.:	04-022829

CIN No.: [Company Identification No.]	U74999GJ1994PLC022829

TAN No.: [Tax Deduction & Collection Account No.]	AHMR02889F

PAN No.: [Permanent Account No.]	AABCR3051J

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of Oily Chemical and Castor Derivatives

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 662000

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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Baldeep
Designation :	Chief Accountant
Date :	30.12.2010

LOCATIONS

Registered Office/Factory :	Unjha-Sidhpur State Highway, At Ahali, Sidhpur – 384151, Gujarat, India
Tel. No.:	91-2767-222905/6
Fax No.:	91-2767-221833
E-Mail :	rcplsdh@sancharnet.in rcpl@icenet.net baldircpl@yahoo.co.in

Administrative Office :	101, Ketan Apartment, 233, R.B. Mehta Marg, Ghatkoper, Mumbai – 400077, Maharashtra, India

Factory :	At. Khali, Mehsana – Sidhpur Highway, Taluka Sidhpur, District Patan – 384151, Gujarat, India

DIRECTORS

As on 15.09.2010

Name :	Mr. Natvarbhai J. Patel
Designation :	Director
Address :	Virnagar Society, S.T. Workshop Road, Mehsana – 384002, Gujarat, India
Date of Birth/Age :	01.06.1951
Date of Appointment :	12.09.1994

Name :	Mr. Mohanbhai M. Patel
Designation :	Director
Address :	4, Kapildev Society, Bindu Sarovar Road, Mehsana – 384151, Gujarat, India
Date of Birth/Age :	05.04.1939
Date of Appointment :	12.09.1994

Name :	Mr. Haresh S. Vyas
Designation :	Director
Address :	23, Sindhubaug Society, Tilak Road, Ghatkoper (East), Mumbai, Maharashtra, India
Date of Birth/Age :	05.11.1955
Date of Appointment :	15.12.1995

Name :	Mr. Durgesh S. Chandavarkar
Designation :	Director
Address :	502, Seanymph, Greenfield Estate, A.B. Nair Road, Juhu, Mumbai – 400049, Msaharashtra, India
Date of Birth/Age :	07.02.1942
Date of Appointment :	15.12.1995

Name :	Mr. Tulsibhai M. Patel
Designation :	Director
Address :	8, Shraddha Nagar Society, Radhanpur Road, Mehsana – 384002, Gujarat, India
Date of Birth/Age :	08.07.1946
Date of Appointment :	22.08.1994

Name :	Mr. Vinod S. Vyas
Designation :	Director
Address :	7 and 8, Jay Jawan Nagar Housing Society, Bhanushali Lane, Mumbai, Maharashtra, India
Date of Birth/Age :	15.03.1951
Date of Appointment :	15.12.1995

Name :	Mr. Jitendrakumar M. Patel
Designation :	Director
Address :	2, Pushpavati Society, Radhanpur Road, Mehsana – 384002, Gujarat, India
Date of Birth/Age :	01.06.1966
Date of Appointment :	22.08.1994

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 15.09.2010

Names of Shareholders		No. of Shares
Mr. Natvarbhai J. Patel		100001
Ms. Rekhaben L. Patel		189625
Ms. Kiranbhai M. Patel		224500
Ms. Vanitaben K. Patel		215500
Ms. Shantaben J. Patel		100000
Ms. Kokilaben N.Patel		100000
Mr. Mohanbhai M. Patel		520375
Mr. Vinodchandra J. Patel		100000
Ms. Shardaben V. Patel		100000
Ms. Chhaya V. Vyas		180400
Mr. Vinod S. Vyas		141000
Mr. Haresh S. Vyas		137400
Ms. Manjula S. Vyas and Dhruv S. Vyas		145900
Mr. Durgesh S. Chandavarkar		250800
Mr. Amrishkumar Patel		110000
Mr. Ankitbhai N. Patel		109999

Category	Percentage
Bodies corporate	25.00
Directors or relatives of Directors	75.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Oily Chemical and Castor Derivatives

Products :	Bleached Caster Oil Hydrogenated Caster Oil 12-Hydroxy Stearic Acid Ricinoleic Acid

Exports :
Products :	Oily Chemicals and Castor Derivatives
Countries :	Japan U.K. U.S.A. Germany

Imports :
Products :	Raw Materials
Countries :	Germany

Terms :
Selling :	L/C, Cash and Credit

Purchasing :	L/C, Cash and Credit

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
12 HSA	Kgs.	NA	NA	5315800
HCO	Kgs.	NA	NA	6608267

GENERAL INFORMATION

Customers :

Industries

No. of Employees :

80 (10 in office + 70 in factory) (Approximately)

Bankers :

State Bank of India

Sidhpur Branch, Opposite Railway Station, Sidhpur – 384151, Gujarat, India

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs.in Millions
Term Loan from Bank (Against 1^st charge over the assets of Windmill Project at Moti Suthri, Kuchchh)	12.835	18.128
Term Loan from the Bank (R.G.) (Against first charge over the construction of rural godown)	1.274	1.920
E.P.C. Limit from Bank (Against first charge by way of hypothecation of stock for export)	194.391	94.494
Total	208.500	114.542

Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs.in Millions
Deposits from shareholders and directors relatives.	34.469	29.603
Deposit from Director	1.344	1.344
E.C.B. Loan	19.853	19.853
Total	55.666	50.800


Banking Relations :	--

Auditors :
Name :	Virendra Chinubhai and Company Chartered Accountant
Address :	1-2-3, 1^st Floor, Vyapar Bhavan, Opp. Railway Station, Visnagar – 384315, Gujarat, India

Associates/Subsidiaries :	Standard Grease and Specialities Private Limited Kusumoto Chemicals India Private Limited Kiran Enterprise Navin Enterprise

CAPITAL STRUCTURE

As on 15.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

6150000	Equity Shares	Rs.10/- each	Rs.61.500 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		61.500	60.000	60.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		103.998	71.873	58.802
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		165.498	131.873	118.802
LOAN FUNDS
1] Secured Loans		208.500	114.542	165.311
2] Unsecured Loans		55.666	50.800	50.118
TOTAL BORROWING		264.166	165.342	215.429
DEFERRED TAX LIABILITIES		25.681	22.347	20.757

TOTAL		455.345	319.562	354.988

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		176.954	143.619	102.135
Capital work-in-progress		0.000	5.757	48.690

INVESTMENT		0.078	0.078	4.578
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	152.396	66.593	98.497
	Sundry Debtors	98.464	73.067	96.478
	Cash & Bank Balances	17.065	6.246	15.907
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	73.085	70.590	37.145
Total Current Assets		341.010	216.496	248.027
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	41.429	30.218	42.636
	Other Current Liabilities	0.076	0.618	0.000
	Provisions	21.708	16.240	5.806
Total Current Liabilities		63.213	47.076	48.442
Net Current Assets		277.797	169.420	199.585

MISCELLANEOUS EXPENSES		0.516	0.688	0.000

TOTAL		455.345	319.562	354.988

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1146.527	1202.660	824.352
		Other Income	0.684	1.389	0.600
		TOTAL (A)	1147.211	1204.049	824.952

Less	EXPENSES
		Increase / Decrease in stock	2.725	(6.200)	3.093
		Raw Materials and Other Consumption	962.795	1008.180	703.146
		Manufacturing and other expenses	100.524	126.497	68.170
		Personnel related Expenses	8.001	5.239	3.369
		TOTAL (B)	1074.045	1133.716	777.778

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		73.166	70.333	47.174

Less	FINANCIAL EXPENSES (D)		23.354	25.584	19.666

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		49.812	44.749	27.508

Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.500	18.045	12.822

	PROFIT BEFORE TAX (E-F) (G)		38.312	26.704	14.686

Less	TAX (I)		14.933	9.814	4.867

	PROFIT AFTER TAX (G-I) (J)		23.379	16.890	9.819

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		61.363	48.292	40.015

Add	PRIOR PERIOD ADJUSTMENT		(2.679)	(0.309)	(0.138)

Add	DEPRECIATION WRITTEN BACK		16.525	0.000	0.000

Less	APPROPRIATIONS
		Dividend
		Tax on Dividend	5.342	3.510	1.404
	BALANCE CARRIED TO THE B/S		93.246	61.363	48.292

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	828.966	869.714	592.352
	TOTAL EARNINGS		828.966	869.714	592.352

	Earnings Per Share (Rs.)		3.84	2.82	--

Expected Sales ( 2010-2011 ) : Rs.1700.000 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.04	1.40	1.19

Net Profit Margin (PBT/Sales)	(%)	3.34	2.22	1.78

Return on Total Assets (PBT/Total Assets}	(%)	7.40	7.41	4.19

Return on Investment (ROI) (PBT/Networth)		0.23	0.20	0.12

Debt Equity Ratio (Total Liability/Networth)		1.98	1.61	2.22

Current Ratio (Current Asset/Current Liability)		5.39	4.60	5.12

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS :-

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	41.429	30.218	42.636
Total	41.429	30.218	42.636

OPERATION :

In comparison to the previous year turn over the company has slightly decreased by 5% due to adverse economic conditions however the net profit of the company has increased in comparison to previous year due to cost control policy of the management. However the directors are hopeful and making efforts to improve the results in the years to come.

CONTINGENT LIABILITIES :-

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009
Foreign Bills Discounted	57.817	34.005
Total	57.817	34.005

TRADE REFERENCES :-

N.K. Industries

FORM 8 :-

This form is for	Modification of charge
Charge identification number of the modified	10131898
Corporate identity number of the company	U74999GJ1994PLC022829
Name of the company	ROYAL CASTOR PRODUCTS LIMITED
Address of the registered office or of the principal place of business in India of the company	Unjha-Sidhpur State Highway, At Ahali, Sidhpur – 384151, Gujarat, India
Type of charge	Immovable Property
Particular of charge holder	State Bank of India Sidhpur Branch, Opposite Railway Station, Sidhpur – 384151, Gujarat, India
Nature of description of the instrument creating or modifying the charge	No new instrument created but by Memorandum relating to Deposit of Title Deeds for creation of further charge for Term Loan Overall Limit where the initial charges is created by way of Mortgage by Deposit of Title Deeds dt. 26/10/2010
Date of instrument Creating the charge	26.10.2010
Amount secured by the charge	Rs.497.900 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : As per Hypothecation Deeds created, filed and registered earlier Terms of Repayment : As per Hypothecation Deeds created, filed and registered earlier Margin : As per Hypothecation Deeds created, filed and registered earlier Extent and Operation of the charge : The said charge shall extend and operate in favour of State Bank of India, Sidhpur Branch, Opp. Railway Station, Sidhpur - 384151 on first charge basis
Short particulars of the property charged	Land and Buildings thereon situated at Survey No. 500 admeasuring of 2556.05 Sq. Meters. in the seem of Khali, Tal. Sidhpur Land and Buildings thereon situated at Survey No. 499 admeasuring of 5263 Sq. Meters. in the seem of Khali, Tal. Sidhpur, Land and Buildings thereon situated at Survey No. 499 admeasuring of 5232 Sq. Meters. in the seem of Khali, Tal. Sidhpur, Land and Buildings thereon situated at Survey No. 494/P-2 admeasuring of 3000 Sq. Meters. in the seem of Khali, Tal. Sidhpur, Land and Buildings thereon situated at Survey No. 502/P-1 admeasuring of 16291 Sq. Meters. in the seem of Khali, Tal. Sidhpur Land and Buildings thereon situated at Survey No. 500 admeasuring of 2556.05 Sq. Meters. in the seem of Khali, Tal. Sidhpur
Particulars of the present modification	The lastly modified charge dt. 29/09/2010 for Rs. 497.900 Millions again modified by way of providing additional collateral security by E. Mortgage of the Immovable properties of the Company

FIXED ASSETS :-

Land
Land Development
Factory Building
Office Building
Plant and Equipments
Electric Installations
Furniture and Fittings
Laboratory Equipments
Computer and Software
Office Equipments
Vehicles
Utilities and Storage Installation
Tubewell
Effluent Treatment Plant
Hydrogen Gas Generation Plant
Shop at Dhanera
Fork Lift
Wind Power Project
Rural Godown
P and M Boiler

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.44.67
UK Pound	1	Rs.69.44
Euro	1	Rs.59.37

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	YES
--AFFILIATION	YES/NO	YES
--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.

MIRA INFORM REPORT

152.396

98.464

17.065

0.000

73.085

341.010

41.429

0.076

21.708

63.213

277.797

2.04

3.34

7.40

0.23

1.98

5.39

Unit