MIRA INFORM REPORT

Report Date :

11.06.2011

IDENTIFICATION DETAILS

Name :	SETCO CHEMICALS (INDIA) PRIVATE LIMITED (w.e.f. 28.06.1994)

Formerly Known As :	SETCO TILES PRIVATE LIMITED

Registered Office :	Sr. No. 72, Plot No. 64 to 73, Dewan and Shah Industrial Estate, Naliv Pada, Vasai (East), Thane – 401 208, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	03.06.1985

Com. Reg. No.:	11-36470

Capital Investment/ Paid-up Capital:	Rs. 20.000 Millions

CIN No.: [Company Identification No.]	U26933MH1985PTC036470

TAN No.: [Tax Deduction & Collection Account No.]	MUMS28661D

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturers of Industrial and Decorative Paints, Flexographic and Rotogravure Printing Inks, Resins, and Laminating Adhesives.

No. of Employees:	More than 150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 490000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established company having fine track. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Ameet
Designation :	Account Manager
Date :	10.06.2011

LOCATIONS

Registered Office/Factory :	Sr. No. 72, Plot No. 64 to 73, Dewan and Shah Industrial Estate, Naliv Pada, Vasai (East), Thane – 401 208, Maharashtra, India
Tel. No.:	91-250-3294750 / 51 / 3094750
Fax No.:	91-250-2480806
E-Mail :	setcochemicals@gmail.com info@setcochemicals.com
Website :	http://www.setcochemicals.net

DIRECTORS

As on 30.09.2010

Name :	Mr. Jayant Hariprasad Solanki
Designation :	Director
Address :	25A, Nalanda Building, 62, Peddar Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	28.04.1943
Date of Appointment :	01.04.1998
DIN No.:	00096850

Name :	Mr. Yogesh Hariprasad Solanki
Designation :	Director
Address :	C/302, Ashish Building, Tirupati Apartments, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	20.02.1949
Date of Appointment :	01.05.1998
DIN No.:	00096900

Name :	Mrs. Sangeeta Jayant Solanki
Designation :	Director
Address :	25A, Nalanda Building, 62, Peddar Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	17.10.1945
Date of Appointment :	01.12.2000
DIN No.:	00096919

Name :	Mrs. Rekha Yogesh Solanki
Designation :	Director
Address :	C/302, Ashish Building, Tirupati Apartments, Bhulabhai Desai Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	06.06.1952
Date of Appointment :	01.12.2000
DIN No.:	00096949

KEY EXECUTIVES

Name :	Mr. Ameet
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders		No. of Shares

Jayant H. Solanki Huf		7000
Jayant H. Solanki Joint With Sangeeta		30000
Tapan J Solanki Joint With Sangeeta		32000
Sangeeta J. Solansi Joint With Jayant		20000
Vandana T. Solanki Joint With Tapan		11000
Yogesh H. Solanki Joint With Rekha		33000
Rekha Y. Solanki Joint With Yogesh		32000
Grishma Y. Solanki Joint With Yogesh		15500
Reshma Y. Solanki Joint With Rekha		15500
Yogesh H. Solanki Huf		4000

Total		200000

Equity shares Breakup (percentage of total equity)

(As on 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Industrial and Decorative Paints, Flexographic and Rotogravure Printing Inks, Resins, and Laminating Adhesives.

Products :	· Rotogravure and Flexographic Printing Inks · Industrial and Decorative Paints · Laminating Adhesives · Synthetic Resins · Chemicals

Terms :
Selling :	Cash and Credit

Purchasing :	Cash and Credit

GENERAL INFORMATION

No. of Employees :

More than 150 (Approximately)

Bankers :

Bassien Catholic Co-Bank Operative Limited, Manickpur Branch, Lawrence Shopping Centre, 1^st Floor, Manickpur, Vasai, Thane – 401 202, Maharashtra, India
HDFC Bank Limited
ICICI Bank Limited

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From Non Non Scheduled Bank
Term Loan
Bassein Catholi Co Op. Bank Limited (On Hypothecation Of Land And Building Personally Guaranteed By The Directors)	0.000	0.526
Bassein Catholi Co Op. Bank Limited (On Hypothecation Of Land And Building Personally Guaranteed By The Directors)	14.195	0.000
Bassein Catholic Co-Operative Bank Limited A/C # 43079 on Hypothecation of Land and Building personally guarantee by the directors	8.972	0.000
Bassein Catholic Co-Operative Bank Limited A/C # 42115 on Hypothecation of Plant and Machinery personally guarantee by the directors	1.157	1.425
Bassein Catholic Co-Operative Bank Limited A/C # 42660 on Hypothecation of Plant and Machinery personally guarantee by the directors	3.312	3.883
ICICI Bank- on Hypothecation of cars- fiesta personally guaranteed by the directors	0.000	0.044
Cash Credit
Bassein Cathooic Co Operating Bank – CC Secured against hypothecation of stocks of raw materials, semi finished and finished goods, collaterally secured by factory building and book debts personally guanranteed by the directors	26.174	20.238
From Finance Companies
Kotak Mahindra Primus Limited- on Hypothecation of car Honda City Personally guaranteed by the directors	0.000	0.139
Kotak Mahindra Primus Limited- on hypothecation of car Honda Civic	0.034	0.800
HDFC Bank Limited- on hypothecation of car- indigo	0.000	0.177
Kotak Mahindra Primus Limited- on hypothecation of car verna	0.697	1.147
Total	54.541	28.379

Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From Directors	4.785	11.307
From Shareholders	1.375	3.478
Total	6.160	14.785


Banking Relations :	-

Auditors :
Name :	M M Jhaveri and Company Chartered Accountants
Address:	A-5, Apsara Building, Road No. 5, Daulat Nagar, Borivali (East), Mumbai – 400 066, Maharashtra, India

Subsidiaries :	Aquathane Chemicals Private Limited U24100MH1998PTC113414

CAPITAL STRUCTURE

(As on 31.03.2010)

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

200000	Equity Shares	Rs. 100/- each	Rs. 20.000 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		20.000	10.000	10.000
2] Share Application Money		0.000	2.375	0.000
3] Reserves & Surplus		102.525	76.411	48.746
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		122.525	88.786	58.746
LOAN FUNDS
1] Secured Loans		54.541	28.379	28.440
2] Unsecured Loans		6.160	14.785	18.662
TOTAL BORROWING		60.701	43.164	47.102
DEFERRED TAX LIABILITIES		0.521	0.197	0.412

TOTAL		183.747	132.147	106.260

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		97.080	58.000	52.734
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		12.954	12.944	12.325
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	40.951	32.070	34.944
	Sundry Debtors	70.104	70.368	57.116
	Cash & Bank Balances	17.942	27.768	6.268
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	63.870	48.425	38.423
Total Current Assets		192.867	178.631	136.751
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	64.682	69.487	62.736
	Other Current Liabilities	3.464	4.356	5.431
	Provisions	51.008	43.583	27.383
Total Current Liabilities		119.154	117.426	95.550
Net Current Assets		73.713	61.203	41.201

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		183.747	132.147	106.260

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales and Services	315.671	327.113	228.186
		Other Income	2.490	3.282	0.555
		TOTAL (A)	318.161	330.395	228.741

Less	EXPENSES
		Material Consumed	213.927	229.486	192.717
		Pavement and Provision for employees	22.833	19.822	0.000
		Extraordinary Items	0.000	0.000	[0.053]
		Other Direct expenses	5.393	4.703	0.000
		Sales and Administrative expenses	21.169	21.786	0.000
		Prior Period Adjustment	0.664	[0.316]	0.000
		TOTAL (B)	263.986	276.113	192.664

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		54.175	54.282	36.077

Less	FINANCIAL EXPENSES/ INTEREST (D)		4.894	2.939	2.826

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		49.281	51.343	33.251

Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.368	5.695	5.749

	PROFIT BEFORE TAX (E-F) (G)		41.913	45.648	27.502

Less	TAX (H)		14.547	16.813	10.143

	PROFIT AFTER TAX (G-H) (I)		27.366	28.835	17.359

Less:	Excess Provision for tax		0.148	0.000	0.000

Add/ Less	Prior period adjustment		0.000	0.000	0.001

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		64.862	42.197	28.007

Less	APPROPRIATIONS
		Transfer to General Reserve	5.000	5.000	2.000
		Interim Dividend	0.944	1.000	0.000
		Proposed Dividend	0.000	0.000	1.000
		Tax on Distributed Profits	0.160	0.170	0.170
	BALANCE CARRIED TO THE B/S		85.976	64.862	42.197

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	21.354	33.490	16.901
	TOTAL EARNINGS		21.354	33.490	16.901

	IMPORTS
		Import Value	28.999	18.984	17.401
	TOTAL IMPORTS		28.999	18.984	17.401

	Earnings Per Share (Rs.)		144.19	288.35	173.59

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	8.59	8.73	7.58

Net Profit Margin (PBT/Sales)	(%)	13.27	13.95	12.05

Return on Total Assets (PBT/Total Assets}	(%)	14.46	22.05	13.62

Return on Investment (ROI) (PBT/Networth)		0.34	0.51	0.46

Debt Equity Ratio (Total Liability/Networth)		1.47	1.81	2.42

Current Ratio (Current Asset/Current Liability)		1.62	1.52	1.43

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
Total Outstanding dues to creditors other than micro small and medium enterprises as defined under MSMED Act, 2006	64.682	69.487	62.736
Total	64.682	69.487	62.736

Note

The Registered office of the company has been shifted from Plot No. 24/I, Shangrilla Industrial Estate, Chinchpada, Vasai (East), District: Thane – 401 208, Maharashtra, India to the present address w.e.f. 15.01.2005.

HISTORY

Subject has come a long way since its modest beginning in 1994, having its registered office and manufacturing facilities located in Vasai, at Thane District - 60 Kms from Mumbai. It has two manufacturing plants for Printing Inks, Resins, Paints and Adhesives, located at Vasai and Vapi. Over the years the company has significantly changed its product mix from that of paint and printing inks to resins, coatings and speciality products. The credit of the company rapid progress is largely attributed to the most valued customers for patronizing the products and the unprecedented support given by all the employees of the company.

Initiatives in R and D have propelled the company as an innovator in modern resins and coatings technologies providing a significant leverage over its competitors. They provide the right solution for surface treatment problems, offering outstanding combinations of physical and chemical properties.

Operation:

The company’s sales turnover (including other income was reduced from Rs. 330.400 Millions to Rs. 318.200 Millions to overall reduction of 3.70% and there by reducing the profit after tax from Rs. 29.100 Millions to Rs. 27.400 Millions net decrease of 5.09%.

Contingent liabilities:

Particulars	31.03.2010 Rs. in Millions
Guarantee provided against pledge	0.006
Disputed income tax liability claim against the company not acknowledged as debts	0.379

Form No. 8

Corporate identity number of the company	U26933MH1985PTC036470
Name of the company	SETCO CHEMICALS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Sr. No. 72, Plot No. 64 to 73, Dewan and Shah Industrial Estate, Naliv Pada, Vasai (East), Thane – 401 208, Maharashtra, India
This form is for	Creation of charge
Type of charge	Others
Particular of charge holder	Bassien Catholic Co-Bank Operative Limited, Manickpur Branch, Lawrence Shopping Centre, 1^st Floor, Manickpur, Vasai, Thane – 401 202, Maharashtra, India
Nature of instrument creating charge	Agreement of hypothecation of vehicles
Date of instrument Creating the charge	05.12.2010
Amount secured by the charge	Rs. 0.588 Million
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of interest @ 11.5% p.a. · Terms of repayment 80 installments of Rs. 0.013 Million amount of Rs. 0.588 Million with interest shall be fully paid off within a period of 66 months form the date of this agreement · Margin as per sanction terms · Extent and operation of the charge as per sanction terms
Short particulars of the property charged	Hypothecation of car

Name of the company	SETCO CHEMICALS (INDIA) PRIVATE LIMITED
Presented By	Bassein Catholic Co-Op Bank Limited, Manickpur Branch, Vasai
1) Date and description of instrument creating the change	Hypothecation of Tangible Movable Property dated 16.11.2003
2) Amount secured by the charge/amount owing on the securities of charge	Rs.2.500 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Stock of raw material semi finished and finished products, both present and future, lying at the premises machinery hereabove and /or at any other place / places.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of interest : 13.5% p.a.
5) Name and Address and description of the person entitled to the charge.	Bassien Catholic Co-Bank Opp. Limited Manickpur Branch, Vasai, Thane – 401 202, Maharashtra, India
6) Date and brief description of instrument modifying the charge	N.A.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	N.A.

Fixed Assets:

Land
Building
Plant and Machinery
Electrical Fittings
Furniture and Fixtures
Office Equipments
Computer
Vehicles
Intangible Assets

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.72.93
Euro	1	Rs.64.72

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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		51

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

40.951

32.070

34.944

70.104

70.368

57.116

17.942

27.768

6.268

0.000

0.000

0.000

63.870

48.425

38.423

192.867

136.751

64.682

62.736

3.464

5.431

51.008

27.383

119.154

95.550

73.713

41.201

8.59

8.73

7.58

13.27

13.95

12.05

14.46

22.05

13.62

0.34

0.51

0.46

1.47

1.81

2.42

1.62

1.52

1.43

Unit