MIRA INFORM REPORT

Report Date :

08.06.2011

IDENTIFICATION DETAILS

Name :	VANSHI CHEMICALS PRIVATE LIMITED (w.e.f. 10.08.2006)
Formerly Known As :	VINAY DYECHEM INDUSTRIES PRIVATE LIMITED
Registered Office :	B/48, Baria apartment, Marwadi Chawl, S. V. Road, Malad (West), Mumbai – 400 064, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	06.07.1984
Com. Reg. No.:	11-33089
Capital Investment / Paid-up Capital :	Rs. 1.382 millions
CIN No.: [Company Identification No.]	U24241MH1984PTC033089
TAN No.: [Tax Deduction & Collection Account No.]	MUMV10102B
PAN No.: [Permanent Account No.]	AABCV2713K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Synthetic organic Dyes.
No. of Employees :	19 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 4000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company with moderate track. There appears some accumulated losses being recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

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. Harshad Shah
Designation :	Director
Contact No.:	91-9223230555
Date :	07.06.2011

LOCATIONS

Registered Office :	B/48, Baria apartment, Marwadi Chawl, S. V. Road, Malad (West), Mumbai – 400 064, Maharashtra, India
Mobile No. :	91-9223230555 (Mr. Harshad Shah)
E-Mail :	vanshichemicals@yahoo.co.in hpshah@yahoo.co.in
Website :	www.vanshichemicals.com
Factory :	F 4/10, M. I. D. C. Tarapur, Boisar, Thane - 401 506, Maharashtra, India
Tel. No.:	91-2525-278381
Fax No.:	91-2525-278381
Area :	1000 Sq. meter
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Mr. Harshad Pravinchandra Shah
Designation :	Director
Address :	B/48, Baria apartment, Marwadi Chawl, Malad (West), S V Road, Mumbai – 400 064, Maharashtra
Date of Birth/Age :	20.10.1973
Qualification :	B.E.
Date of Appointment :	25.03.2006
DIN No. :	01627590
Name :	Mrs. Sapna Harshad Shah
Designation :	Director
Address :	B/48, Baria apartment, Marwadi Chawl, Malad (West), S V Road, Mumbai – 400 064, Maharashtra
Date of Birth/Age :	02.09.1974
Qualification :	B. Com.
Date of Appointment :	05.05.2006
DIN No. :	01627597

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders		No. of Shares
Mrs. Sapna Harshad Shah		6510
Mr. Harshad P Shah		4770
Mr. Harshad P Shah (HUF)		2545
	Total	13825

AS ON 30.09.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Synthetic organic Dyes.
Products :	· Hair Colors and Dyes · Antihalation Dyestuffs · Electroplating Chemicals · Biological Stain · Antihalation Dyestuff · Lab Chemicals
Exports :
Products :	Chemical, Hair Colours
Countries :	Canada Japan Vietnam China
Imports :
Products :	Basic Chemicals
Countries :	China
Terms :
Selling :	Advance
Purchasing :	Credit (30-60 days)

PRODUCTION STATUS As on 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Methalyne Zinc Treo	Tonnes/year	NA	NA	30

GENERAL INFORMATION

Customers :

Traders and End users

No. of Employees :

19 (Approximately)

Bankers :

· Bank of Baroda, BFS Branch, Matru Ashish, S.V. Road, Kandivali (west), Mumbai – 400 067, Maharashtra, India

· The City Co-op Bank Limited, Borivali Branch, Mumbai, Maharashtra, India

Facilities :

Bank of Baroda

Term Loan and Cash Credit

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
Bank Overdraft	1.636	0.922
Term Loan	0.958	1.458
Total	2.594	2.380

Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. In Millions)
From Directors	2.659	1.070
From Members	0.148	0.158
Total	2.807	1.228

Notes:

Term Loan above is secured against hypothecation of plant and machinery and other movable assets present and future and against mortgage of land.

Of the above

· Working Capital loan above is secured against hypothecation of stocks and book debts

· Rs.0.500 Million repayable within the period of Twelve Months.

· The above secured loans are personally guaranteed by the Directors

Banking Relations :

--

Auditors :

Name :

Paresh Kapasi and associates

Chartered Accountants

Address :

A-30, Kailash Nagar, Shankar Lane, Kandivali (West), Mumbai – 400 067, Maharashtra

Tel. No. :

91-22-32433031 / 28663031

CAPITAL STRUCTURE

As on: 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares	Rs. 100/- each	Rs. 2.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13825	Equity Shares	Rs. 100/- each	Rs. 1.382 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		1.382	1.382	1.382
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.027	0.027	0.027
4] (Accumulated Losses)		(0.489)	(0.636)	(0.723)
NETWORTH		0.920	0.773	0.686
LOAN FUNDS
1] Secured Loans		2.594	2.380	2.562
2] Unsecured Loans		2.807	1.228	0.760
TOTAL BORROWING		5.401	3.608	3.322
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		6.321	4.381	4.008
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.242	2.434	2.775
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	4.337	1.435	1.900
	Sundry Debtors	2.492	1.298	0.697
	Cash & Bank Balances	0.034	0.008	0.078
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.742	0.273	0.481
Total Current Assets		7.605	3.014	3.156
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.458	1.029	1.914
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.068	0.038	0.009
Total Current Liabilities		3.526	1.067	1.923
Net Current Assets		4.079	1.947	1.233
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		6.321	4.381	4.008

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income
		Other Income
		TOTAL (A)	16.394	3.938	4.843
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	15.745	3.192	4.074
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.649	0.746	0.769
Less	FINANCIAL EXPENSES (D)		0.199	0.319	0.364
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.450	0.427	0.405
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.299	0.340	0.374
	PROFIT BEFORE TAX (E-F) (G)		0.151	0.087	0.031
Less	TAX (I)		0.005	0.000	0.000
	PROFIT AFTER TAX (G-I) (J)		0.146	0.087	0.031
	Earnings Per Share (Rs.)		10.56	--	2.24

Particulars	31.03.2011
Sales Turnover (Approximately)	12.500

Expected Sales (2011-2012) : Rs.20.000

The above information has been parted by Mr. Harshad Shah

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.89	2.21	0.64
Return on Total Assets (PBT/Total Assets}	(%)	1.53	1.60	0.52
Return on Investment (ROI) (PBT/Networth)		0.16	0.11	0.05
Debt Equity Ratio (Total Liability/Networth)		9.70	6.05	7.65
Current Ratio (Current Asset/Current Liability)		2.16	2.82	1.64

LOCAL AGENCY FURTHER INFORMATION

change of address:-

The Registered Office of the company was C-5 Royal Garden Carter Road, No. 2, Borivali (East), Mumbai – 400 066, Maharashtra, India shifted to present registered Address w.e.f 20.05.2006.

trade references:-

· Belame Chemical Private Limited

· GSP Enterprise

· K. Patel

form 8:-

Corporate identity number of the company	U24241MH1984PTC033089
Name of the company	VANSHI CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B/48, Baria apartment, Marwadi Chawl, Malad (West), Mumbai – 400 064, Maharashtra
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10024814
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	Bank of Baroda, BFS Branch, Mathru Ashish Building, S V Road, Mumbai – 400 067, Maharashtra, India E-mail: intmum@bankofbaroda.com
Nature of instrument creating charge	Supplemental composite agreement of hypothecation of goods, book debts, movable machinery and vehicles and supplemental memorandum of entry where the company's property is mortgaged.
Date of instrument Creating the charge	07.07.2010
Amount secured by the charge	Rs. 4.334 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: To pay interest on the cash credit limit @ 0.75% below prime lending rate of the bank per annum with monthly rests. Margin Stock – 25% Book Debts – 40% Moveable Machinery – 25% Extent and operation of the charge As per agreement
Short particulars of the property charged (Including location of the property)	Supplemental Composite Agreement of Hypothecation of goods, book - debts, moveable machinery and vehicles. Equitable Mortgage of Immovable properties at F-4/10,Tarapur Industrial Area, admeasuring area of plot 368 Sq.mtrs. and open 362 sq.mtrs. Total area 1000 square metres. Tarapur in the state of Maharashtra.
Date of instrument modifying the charge	18.12.2009
Particulars of the present modification	Enhancement of Cash Credit from Rs. 1.500 million to Rs. 3.500 million and reduction of Term Loan from Rs.1.125 Millions to Rs.0.834 million..

fixed assets:-

· Leasehold Land

· Air Conditioner

· Building

· Plant and Machinery

· Computer and Printer

· Electrical Ins

· Motor Cars

website details:-

Company Profile

Established in the year 2006, subject has emerged as one of the leading manufacturers and exporters of hair dyes, and hair colors. These are known to enhance hair texture along with providing it good nourishment and protection. In addition, they also offer dyestuff that is environment friendly and is used in different applications.

Under the able guidance of their CEO Mr. Harshad Shah, they have carved out a niche for theirselves for providing quality dyestuffs, hair dyes and hair colors. He continuously guides their employees who ensure that they offer only the qualitative products to their clients’ within the specified time. They are able to deliver their hair dyes and hair colors to clients spread across various countries. These include UK, USA, Spain, Japan, and Italy.

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.44.74
UK Pound	1	Rs.73.25
Euro	1	Rs.65.48

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		29

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.