MIRA INFORM REPORT

Report Date :

11.06.2011

IDENTIFICATION DETAILS

Name :		RISHICHEM DISTRIBUTORS PRIVATE LIMITED

Registered Office :		65 Atlanta Nariman Point, Mumbai – 400021, Maharashtra

Country :		India

Financials (as on) :		31.03.2010

Date of Incorporation :		03.07.1998

Com. Reg. No.:		11-115640

Capital Investment / Paid-up Capital :		Rs. 8.065 millions

CIN No.: [Company Identification No.]		U51900MH1998PTC115640

TAN No.: [Tax Deduction & Collection Account No.]		MUMR14845F

Legal Form :		Private Limited Liability Company

Line of Business :		Distributor of Specialty Chemicals

No. of Employees :	50 Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 460000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is an established company having fine track. Financial position of the company is good. Trade relations are reported as fair. Payments are reported to be correct and as per commitments. The company can be considered good for normal 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. Arvind Kapoor
Designation :	Director
Contact No.:	91-22-40952000
Date :	21.04.2011

LOCATIONS

Registered Office :	65 Atlanta Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-40952000
Fax No.:	91-22-22872796
E-Mail :	sbaiwar@rishiroop.com info@rishichem.com akapoor@rishiroop.com
Website :	www.rishichem.com

Head Office:	B 104 / 105, Citi Point, Next to Kohinoor Continental, J B Nagar, Andheri Kurla Road, Andheri (East), Mumbai 400059, Maharashtra, India
Tel. No.:	91-22-40403200
Fax No.:	91-22-28266817

DIRECTORS

AS ON 27.08.2010

Name :	Mr. Arvind Kapoor
Designation :	Director
Address :	12, Manhar Oak, LD Ruparel, Cross Lane, Malabar Hill, Mumbai – 400006, India
Date of Birth/Age :	20.01.1954
Date of Appointment :	03.07.1998

Name :	Mr. Atul Shah
Designation :	Director
Address :	D – 405/2, Karachi Citizens Co-op Hos. Soc. , Juhu Versova Link Road, Mumbai
Date of Birth/Age :	26.10.1949
Date of Appointment :	03.07.1998

Name :	Mr. Gagreil Ruddan
Designation :	Director
Address :	20625 Via Augusto Yorba Linda, California, USA – 92887
Date of Birth/Age :	05.08.1953
Date of Appointment :	29.10.1988
Date of Ceasing:	23.05.2007

Name :	Mr. David Courtney
Designation :	Director
Address :	244, Gage Road, C T Burr Ridge, Illinois, USA – 60521
Date of Birth/Age :	24.11.1958
Date of Appointment :	23.02.2000
Date of Ceasing:	18.12.2001

Name :	Mr. William R Hough
Designation :	Director
Address :	215, Wildflower Lane, Willow Springs IL, USA – 60525
Date of Birth/Age :	11.07.1947
Date of Appointment :	1.12.2004
Date of Ceasing :	14.09.2005

Name :	Mr. Gerg Louis Scieszka
Designation :	Director
Address :	244, Gage Road, C T Burr Ridge, Illinois, USA – 60521
Date of Birth/Age :	24.11.1958
Date of Appointment :	18.12.2001
Date of Ceasing :	06.11.2007

Name :	Mr. John Yanney
Designation :	Director
Address :	8501, Timber Ridge Drive, Burr Ridge IL 60521 USA
Date of Birth/Age :	29.06.1949
Date of Appointment :	23.05.2007
Date of Ceasing :	11.09.2008

Name :	Mr. Normand Goyer
Designation :	Director
Address :	55 Purdy Crescent North York, Toronto, Ontario M9N3X7, Canada
Date of Birth/Age :	20.01.1955
Date of Appointment :	06.11.2007
Date of Ceasing :	11.09.2008

Name :	Mr. Gabriel Ruddan
Designation :	Director
Address :	20625 Via Augusto Yorba Linda, California, USA – 92887
Date of Birth/Age :	05.08.1953
Date of Appointment :	23.05.2007
Date of Ceasing :	11.09.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.08.2010

Names of Shareholders	No. of Shares
Rishiroop Holding Private Limited, Mumbai	40325
Rishiroop Polymers Private Limited, Mumbai	40325
Total	80650

EQUITY SHARES BREAK UP

AS ON 27.08.2010

Sr.No.

Category

Percentage

Bodies Corporate

100.00

Total

100.00

BUSINESS DETAILS

Line of Business :

Distributor of Specialty Chemicals

Products :

ITC Code No.	Product Description
28030010.00	Carbon Box
39069010.00	Resiflow
34029099.00	Silicon Resin

Agencies Held :

Dupont, USA
BNT Chemicals, Germany
Deltech Corporation, USA
Picassion Polymers, Spain

GENERAL INFORMATION

Customers :

End Users
OEM’s

No. of Employees :

50 Approximately

Bankers :

Citi Bank N A, Trent House, 2^nd Floor, G Block, Plot No. C60, Bandra Kurla Complex, Bandra East, Mumbai – 400051, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Banks
Working Capital Loan	16.199	7.820
Car Loans		0.236
TOTAL	16.199	8.056

Note :

Working Capital Loan is secured against first charge on all the present and future stock and book debts iof the company and corporate guarantee of Rishiroop Holding Private Limited and Rishiroop Polymer Private Limited and personal guarantee of director.
Car Loan is secured by hypothecation of vehicle.


Banking Relations :

Auditors :
Name :	Jayesh Dadia and Associates Chartered Accountant
Address :	422, Arun Chambers, Tardeo, Mumbai – 400034, Maharashtra, India

Associates/Subsidiaries :	Nil.

CAPITAL STRUCTURE

AS ON 27.08.2010

Authorised Capital :

No. of Shares

Type

Value

Amount

150000

Equity Shares

Rs. 100/- each

Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

80650

Equity Shares

Rs. 100/- each

Rs. 8.065 Millions

AS ON 27.08.2010

Authorised Capital :

No. of Shares

Type

Value

Amount

200000

Equity Shares

Rs. 100/- each

Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

161300

Equity Shares

Rs. 100/- each

Rs. 16.130 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		8.065	8.065	8.065
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		107.546	64.764	48.823
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		115.611	72.829	56.888
LOAN FUNDS
1] Secured Loans		16.199	8.056	33.114
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		16.199	8.056	33.114
DEFERRED TAX LIABILITIES		0.000	0.000	0.003

TOTAL		131.810	80.885	90.005

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		6.248	2.676	3.252
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.157	0.135	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	99.409	65.617	61.304
	Sundry Debtors	134.160	79.764	87.867
	Cash & Bank Balances	2.984	1.186	4.264
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	57.577	19.229	22.554
Total Current Assets		294.130	165.796	175.989
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	NA	68.391	65.518
	Current Liabilities	113.464	1.915	2.826
	Provisions	55.261	17.416	20.892
Total Current Liabilities		168.725	87.722	89.236
Net Current Assets		125.405	78.074	86.753

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		131.810	80.885	90.005

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	660.860	435.584	371.251
		Other Income	0.000	0.000	0.000
		TOTAL (A)	660.860	435.584	371.251

Less	EXPENSES
		Selling and Distribution Expenses
		Office Expenses	584.752	402.459	327.964
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	584.752	402.459	327.964

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		76.108	33.125	43.287

Less	FINANCIAL EXPENSES (D)		NA	NA	NA

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		76.108	33.125	43.287

Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	NA	NA

	PROFIT BEFORE TAX (E-F) (G)		76.108	33.125	43.287

Less	TAX (H)		25.778	11.522	15.422

	PROFIT AFTER TAX (G-H) (I)		50.330	21.603	27.865

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		44.564	33.622	16.418

Less	APPROPRIATIONS
		Transfer to General Reserve	6.500	5.000	5.000
		Dividend	6.452	4.839	4.839
		Tax on Dividend	1.096	0.822	0.822
	BALANCE CARRIED TO THE B/S		80.846	44.564	33.622

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	9.725	8.503	5.256
		Commission Earnings	0.000	0.469	0.168
	TOTAL EARNINGS		9.725	8.972	5.424

	IMPORTS
		Raw Materials	406.336	230.295	167.695

	Earnings Per Share (Rs.)		624.05	267.87	345.51

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.61	4.95	7.51

Net Profit Margin (PBT/Sales)	(%)	11.51	7.60	11.66

Return on Total Assets (PBT/Total Assets}	(%)	25.33	19.66	49.90

Return on Investment (ROI) (PBT/Networth)		0.65	0.45	0.76

Debt Equity Ratio (Total Liability/Networth)		1.59	1.31	1.57

Current Ratio (Current Asset/Current Liability)		1.74	1.89	1.97

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

Rs In Millions

Particulars

31.03.2010

31.03.2009

31.03.2008

Sundry Creditors

NA

68.391

65.518

Performance :

The Company has performed well during the year, the financial performance highlights are :

Net Earnings has increased by 133% to Rs. 50.33 Millions from Rs. 21.60 Millions last year

Sales Increased by 52.94% to Rs. 653.18 Millions from Rs. 427.08 Millions last year

Earning per share increased by 132.84% to Rs. 624/- versus Rs. 268/- last year.

The performance is the result of the initiative taken by the company in developing market for new product lines jointly with customers and suppliers.

During the year trading sales and other income has increased to Rs. 660.860 Millions as against 435.584 Millions last year registering a growth of 51.72% as compared to last year.

Fixed Assets :

Furniture and Fixture
Office Equipment
Computer
Motor Vehicles

FORM 8 :

Corporate identity number of the company	U51900MH1998PTC115640
Name of the company	RISHICHEM DISTRIBUTORS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	65 Atlanta Nariman Point, Mumbai – 400021, Maharashtra, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Citi Bank N A, Trent House, 2^nd Floor, G Block, Plot No. C60, Bandra Kurla Complex, Bandra East, Mumbai – 400051, Maharashtra, India Email: vlaxman@vsnl.com
Nature of instrument creating charge	Deed of Modification
Date of instrument Creating the charge	09.11.2010
Amount secured by the charge	Rs. 150.00 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest to be charged at such rate/s as may be determined by the Bank from time to time Terms of repayment On Demand Margin As may be stipulated by the Bank from time to time. Extent and operation of the charge The Current Assets to the Bank more particularly described in item No.15 below hypothecated by way of first exclusive charge, as security for the repayment of the loan of Rs.150 millions, together with all interest, liquidated damages, premia on prepayment or on redemption, costs, charges and other expenses payable by Company to the Bank.
Short particulars of the property charged (Including location of the property)	Hypothecation by way of first exclusive charge on Current Assets of the Company, both present and future.
Date of instrument modifying the charge	21.06.2010
Particulars of the present modification	The charge shall now stand increased from Rs.120 millions to Rs.150 millions, in favour of Citibank N.A.

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.72.92
Euro	1	Rs.64.72

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.