MIRA INFORM REPORT

Report Date :

10.06.2011

IDENTIFICATION DETAILS

Name :	CONNELL BROS COMPANY (INDIA) PRIVATE LIMITED
Registered Office :	13, Padam – 1, 4B Peddar Road, Gamdevi, Mumbai-400026, Maharashtra
Country :	India
Financials (as on) :	31.12.2009
Date of Incorporation :	18.05.1999
Com. Reg. No.:	11-119904
Capital Investment / Paid-up Capital :	Rs. 53.900 millions
CIN No.: [Company Identification No.]	U24110MH1999PTC119904
TAN No.: [Tax Deduction & Collection Account No.]	MUMC07445E MUMC10633A MUMC11797C
PAN No.: [Permanent Account No.]	AAACC9611004C
Legal Form :	Private Limited Liability Company
Line of Business :	Distributors of Chemicals
No. of Employees :	100 (Approximately)

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 680000
Status :	Satisfactory
Payment Behaviour :	Clear
Litigation :	Usually Correct
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 dealing 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 (GENERAL DETAILS)

Name :	Mr. Raju
Designation :	Accounts Department
Date :	08.06.2011

LOCATIONS

Registered Office :	13, Padam – I, 4B Peddar Road, Gamdevi, Mumbai – 400026, Maharashtra, India
Tel. No.:	91-22-56644483/ 22815060
Fax No:	91-22-22818060
E-Mail :	admin@abcind.com vrodrigu@cbcind.com ymathur@cbcind.com
Website :	http://www.connellbrothers.com http://www.clocind.com
Area:	1600 sq.ft. (Owned)
Warehouse:	Located At: v Bhiwandi v Panvel v Delhi
Branch Office 1 :	3rd Floor, Bansilal Building, 9/15, Homy Mody Street, Fort, Mumbai, 400 023, Maharashtra, India
Tel. No.:	91 22 2281 5060
Fax No.:	91 22 2281 8060
E-Mail :	ymathur@cbcind.com
Area:	3500 sq.ft. (Rented)
Branch Office 2 :	1112, Kailash Building, 26, Kasturba Gandhi Marg, New Delhi, 110 001,Delhi, India
Tel. No.:	91-11-2371 3691
Fax No.:	91-11-2371 3692
Area:	1200 sq.ft. (Rented)
Branch Office 3:	15 Kamal Ataturk Avenue, Bashati Condominium, Apartment # C/11-12, Road # 17, Banani, Dhaka, - 1213
Tel. No.:	88 044 746 50728
Fax No.:	88 044 768 02517
Area:	500 sq.ft. (Rented)

DIRECTORS

As on 25.05.2010

Name :	Mr. Thacher Pomeroy John
Designation :	Directors
Address :	2482/ Spring Mountain Road, St. Helen, California-94574, USA
Date of Birth/Age :	01.10.1954
Date of Appointment :	11.02.2008
Name :	Mr. Theodore Eliot (Foreign)
Designation :	Managing Director
Address :	401, Golden Gate, Avenue Belvedere, California – 94920, USA
Date of Birth/Age :	17.10.1953
Date of Appointment :	18.05.1999
Din No.:	02353500
Name :	Mr. Dayal Prasad Dhanda
Designation :	Director
Address :	R-245, Greater Kailash – I, New Delhi – 110048, India
Date of Birth/Age :	19.11.1929
Date of Appointment :	18.05.1999
Din No.:	01355188
Name :	Mr. Parthiv T. Kilachand
Designation :	Chairman
Address :	95, Nepean sea Road, Malabar Hill, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	27.03.1967
Date of Appointment :	18.05.1999
E mail:	ptk@kilachand.com
Din No.:	00005516
Name :	Mr. Nandish Kilachand
Designation :	Director
Address :	95, Nepean Sea Road, Malabar Hill, Kilachand House, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	23.07.1972
Din No.:	00005530
Name :	Jaffrey Francis Streblow
Designation :	Director
Address :	5137, Commbsville Road, California, USA – 94558
Date of Birth/Age :	04.06.1959
Date of Appointment :	17.05.2009

KEY EXECUTIVES

Name :	D. J. Vyas and Associates
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.05.2010

Names of Shareholders	No. of Shares
Rasayani Traders Private Limited, India	269500
Wilbur Ellis Company NA (USA)	269500
Total	539000

As on 25.05.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Distributors of Chemicals
Products :	· Pigments – 32.04 · Acylic Polymers – 39.06 · Styrene Polymer – 39.03 · Paper Chemicals – 38.24.90 · Adhesive and Sealants · Agriculture · Construction · Detergents · Electronic and Semiconductor · Food Processing · Fuel and Lubricants · Glass and Ceramics · Ink and Graphic Arts · Personal Care · Pharmaceutical · Plastic and Compounding · Paint and Coatings · Paper · Rubber Processing · Textile and Leather · Water Treatment · Organic Chemicals · Resins · Coatings and Inks
Exports :
Products :	Chemical
Countries :	Bangladesh
Imports :
Products :	Chemical
Countries :	Taiwan China Japan
Terms :
Purchasing :	Depend

PRODUCTION STATUS (AS ON 31.12.2008)

Particulars	Unit	Actual Production
Celacryl – 95	Kgs.	-
Celacryl – 50	Kgs.	-
Cross Linked Polystyrene	Kgs.	18575
Process Chemicals	Kgs.	927174

GENERAL INFORMATION

Customers :

· End Users

· OEM’s

· Pharmaceutical Company

No. of Employees :

100 (Approximately)

Bankers :

• ABN Amro Bank NV, 7^TH Floor, Sakhar Bhavan, Nariman Road, Mumbai – 400 021, Maharashtra, India
• Royal Bank of Scotland, Fort, Mumbai

Facilities :

Secured Loans :	As on 31.12.2009 Rs. In millions	As on 31.12.2008 Rs. in Millions
Loans from Banks Short term credit facility from bank (Repayable within a year, Rs.69.000 millions) (Short term facility from bank is secured by sole charge over movable fixed assets like Plant and Machinery, Equipments etc. stocks and Book Debts both present and future)	21.000	69.000
Total	21.000	69.000

Banking Relations :	-
Auditors :
Name :	S. R. Batliboi and Associates Chartered Accountants
Address :	Jalan Mill Compound,95 Ganpatrao Kadam Marg, Lower Parel, Mumbai-400 013, Maharashtra, India
Tel. No.:	91-22-22876485/6
Fax No.:	91-22-22876401
Associates/Subsidiaries :	Connell Bros. Bangladesh (Private) Limited

CAPITAL STRUCTURE

As on 31.12.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
800000	Equity Shares	Rs.100/- each	Rs.80.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
539000	Equity Shares	Rs.100/- each	Rs.53.900 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2009	31.12.2008	31.12.2007
SHAREHOLDERS FUNDS
1] Share Capital		53.900	53.900	53.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		134.392	117.685	89.427
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		188.292	171.585	143.327
LOAN FUNDS
1] Secured Loans		21.000	69.000	64.986
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		21.000	69.000	64.986
DEFERRED TAX LIABILITIES		0.000	0.000	1.071
TOTAL		209.292	69.585	209.384
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		42.703	44.123	42.376
Capital work-in-progress		0.000	0.269	0.055
INVESTMENT		0.700	0.700	0.700
DEFERREX TAX ASSETS		6.245	5.387	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	127.624	133.754	115.131
	Sundry Debtors	180.749	140.495	171.435
	Cash & Bank Balances	78.243	38.054	10.356
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	17.766	13.002	8.205
Total Current Assets		404.382	325.305	305.127
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	23.746	9.012	25.149
	Sundry Creditors	150.996	88.351	79.042
	Provisions	69.996	37.836	34.683
Total Current Liabilities		244.738	135.199	138.874
Net Current Assets		159.644	190.106	166.253
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		209.292	240.585	209.384

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2009	31.12.2008	31.12.2007
	INCOME FROM OPERATION		1014.570	838.450	669.470
Less	EXPENSES
		Office Expenses
		Administrative Expenses	868.900	718.740	560.030
		Advertising Expenses
		TOTAL (B)	868.900	718.740	560.030
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		145.670	119.710	109.440
Less	FINANCIAL EXPENSES (D)		6.550	11.090	8.840
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		139.120	108.620	100.600
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.330	6.160	5.130
	PROFIT BEFORE TAX (E-F) (G)		132.790	102.460	95.470
Less	TAX (I)		46.090	36.370	33.690
	PROFIT AFTER TAX (G-I) (J)		86.700	66.090	61.780
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		93.680	72.330	51.530
Less	APPROPRIATIONS
		Transfer to General Reserve	8.700	5.550	5.040
		Dividend	59.820	32.340	29.640
		Tax on Dividend	10.170	6.900	6.300
	BALANCE CARRIED TO THE B/S		101.690	93.680	72.330
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	75.690	87.870	NA
	TOTAL EARNINGS		75.690	87.870	NA
	Earnings Per Share (Rs.)		160.86	122.62	-

KEY RATIOS

PARTICULARS		31.12.2009	31.12.2008	31.12.2007
PAT / Total Income	(%)	8.54	7.91	9.23
Net Profit Margin (PBT/Sales)	(%)	13.08	12.27	14.26
Return on Total Assets (PBT/Total Assets}	(%)	29.70	27.74	27.47
Return on Investment (ROI) (PBT/Networth)		0.70	0.60	0.67
Debt Equity Ratio (Total Liability/Networth)		1.41	1.19	1.42
Current Ratio (Current Asset/Current Liability)		1.65	2.41	2.20

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS :

(Rs. In millions)

Particulars	31.12.2009	31.12.2008	31.12.2007
Sundry Creditors
Total outstanding dues of Micro and Small Enterprises	0.479	1.602	1.665
Others	150.517	86.749	77.377
Total	150.996	88.351	79.042

FINANCIAL RESULTS

In year of operation ended on 31^st December 2009, the company has made a profit before tax of INR 132.790 millions. In view of satisfactory operations of the company, directors are pleased to recommend a dividend of INR 111/- per equity shares of Rs. 100/- each amounting to Rs. 59.829 millions.

FORM : 8

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10029028
Corporate identity number of the company	U24110MH1999PTC119904
Name of the company	CONNELL BROS COMPANY (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	13, Padam – I, 4B Pedder Road, Gamdevi, Mumbai – 400026, Maharashtra, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	ABN Amro Bank NV 7^thFloor, Sakar Bhavan, Nariman Road, Mumbai – 400 021, Maharashtra, India Vaibhav.taimni@in.abnamro.com
Nature of description of the instrument creating or modifying the charge	Supplementary Deed of Hypothecation of Movable Assets.
Date of instrument Creating the charge	29.10.2008
Amount secured by the charge	Rs.150.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest/ Commissions – As agreed by and with the Bank from time to time. Terms of Repayment As agreed by and with the Bank from time to time. Margin As applicable, if any Extent and Operation of the charge The Bank is having sole charge on the security offered by the company.
Short particulars of the property charged	Hypothecation by way of sole charge over Stocks and Book Debts, both present and future. Hypothecation by way od sole charge over movable fixed assets like plant, machinery, Equipment etc. both present and future.
Particulars of the present modification	By present modification, the existing charge of Rs.100.000 millions enhanced to Rs.150.000 millions

FIXED ASSETS:

• Software
• Leasehold Improvements
• Plant and Machinery
• Laboratory Equipments
• Office Equipments
• Furniture and Fixtures
• 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. 44.72
UK Pound	1	Rs. 73.47
Euro	1	Rs. 65.38

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	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.