MIRA INFORM REPORT

Report Date :

21.06.2011

IDENTIFICATION DETAILS

Name :	MEMBA CHEM INDUSTRIES PRIVATE LIMITED
Registered Office :	19 M J Co-Operative Society, 187, Princess Street, Mumbai – 400002, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	28.07.1994
Com. Reg. No.:	11-79918
Capital Investment / Paid-up Capital :	Rs.4.925 Millions
CIN No.: [Company Identification No.]	U24110MH1994PTC079918
TAN No.: [Tax Deduction & Collection Account No.]	MUMM11225E
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer and Importer of chemicals, Solvents, Intermediates and Acrylates
No. of Employees :	20 (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 140000
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.

INFORMATION PARTED BY

Name :	Mr. Sunil Bari
Designation :	Accounts Manager
Contact No.:	91-9223432457
Date :	15.06.2011

LOCATIONS

Registered Office :	19, M J Co-operative, Society 187, Princess Street, Mumbai – 400002, Maharashtra, India
Tel. No.:	91-22-66312457
Mobile No.:	91-9223432457 (Mr. Sunil Bari)
Fax No.:	91-22-22062416/ 22061955
E-Mail :	membachem_2007@yahoo.co.in
Area :	2000 sq.fts
Location :	Owned
Corporate Office/ Factory :	17/16, MIDC Area, Taloja, Raigad – 410208, Maharashtra, India
Tel. No.:	91-22-27410197
Fax No.:	91-22-27401651
Location :	Owned
Godown :	Gala No. 1 and 2, Purna Village, Bhiwandi, Mumbai, Maharashtra, India
Location	Owned

DIRECTORS

As on : 30.09.2010

Name :	Mr. Anil Bhailal Valia
Designation :	Director
Address :	501, Anand Mansion, 5^th Floor, Gulmohar Road, Juhu, Mumbai – 400040, Maharashtra, India
Date of Birth/Age :	21.09.1959
Qualification :	BSC
Date of Appointment :	28.07.1994
Name :	Mrs. Heena Anil Valia
Designation :	Director
Address :	501, Anand Mansion, 5^th Floor, Gulmohar Road, Juhu, Mumbai – 400040, Maharashtra, India
Date of Birth/Age :	26.02.1964
Date of Appointment :	28.07.1994

KEY EXECUTIVES

Name :	Mr. Sunil
Designation :	Accounts

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 30.09.2010

Names of Shareholders	No. of Shares
Anil Valia	315000
Heena Anil Valia	78000
Nirupama Valia	6000
Anil Valia HUF	1000
Niyati Industries Limited, India	50000
Arpan Enterprises Limited, India	30000
Pan India Drugs and Chemicals Limited, Indore	10000
Rider Finance Limited, India	2500
Total	492500

As on : 30.09.2010

Category	Percentage
Bodies corporate	18.79
Directors or relatives of directors	81.21
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Importer of chemicals, Solvents, Intermediates and Acrylates
Imports :
Products :	Chemicals
Countries :	China Abu Dabi
Terms :
Selling :	Cheque
Purchasing :	L/C, Cash

GENERAL INFORMATION

Customers :

• Wholesalers
• Retailers

No. of Employees :

20 (Approximately)

Bankers :

Union Bank of India, Princess Street Branch, Devkaran Mansion, Shamaldas Gandhi Marg, Princess Street, Mumbai – 400002, Maharashtra, India

Facilities :

Particulars	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Unsecured Loan
Anil B Valia	1.553	2.767
Heena A Valia	0.288	0.165
Nirupama Valia	0.000	0.034
Total	1.841	2.966

Banking Relations :	--
Auditors :
Name :	R. V. Rajgopat Chartered Accountant
Address :	Office No.3, 1^st Floor, Devkaran Mansion, Bilg No.3, 43 Princess Road, Mumbai – 400002, Maharashtra, India
Tel No.:	91-22-22061431
Mobile No.:	91-9833106861
Email :	rajeev_rajpopat@rediffmail.com
Associates/Subsidiaries :	· Memba Chem Corporation Address: 19, M J Co-operative, Society 187, Princess Street, Mumbai – 400002, Maharashtra, India Line of business: Trader of Chemicals · Quality Salochem India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
492500	Equity Shares	Rs.10/- each	Rs.4.925 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		4.925	4.925	4.925
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		29.013	23.394	18.073
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		33.938	28.319	22.998
LOAN FUNDS
1] Secured Loans		7.753	4.901	7.070
2] Unsecured Loans		1.841	2.966	6.802
TOTAL BORROWING		9.594	7.867	13.872
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		43.532	36.186	36.870
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		19.998	19.082	19.632
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	11.212	6.501	6.228
	Sundry Debtors	36.645	19.809	23.439
	Cash & Bank Balances	0.292	0.051	0.018
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.833	2.509	1.766
Total Current Assets		53.982	28.870	31.451
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	23.230	8.244	13.909
	Provisions	7.218	3.522	0.304
Total Current Liabilities		30.448	11.766	14.213
Net Current Assets		23.534	17.104	17.238
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		43.532	36.186	36.870

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	167.962	162.828	121.693
		Other Income	0.579	0.888	0.893
		TOTAL (A)	168.541	163.716	122.586
Less	EXPENSES
		TOTAL (B)	159.225	152.671	NA
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9.316	11.045	122.586
	DEPRECIATION/ AMORTISATION		NA	2.201	2.204
	PROFIT BEFORE TAX		9.316	8.844	4.299
	TAX		3.696	3.522	0.304
	PROFIT AFTER TAX		5.619	5.322	3.995
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18.769	13.447	9.453
	BALANCE CARRIED TO THE B/S		24.388	18.769	13.447

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.33	3.25	3.26
Net Profit Margin (PBT/Sales)	(%)	5.54	5.43	3.53
Return on Total Assets (PBT/Total Assets}	(%)	12.59	18.44	8.42
Return on Investment (ROI) (PBT/Networth)		0.27	0.31	0.19
Debt Equity Ratio (Total Liability/Networth)		1.17	0.69	1.22
Current Ratio (Current Asset/Current Liability)		1.77	2.45	2.21

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
Sundry Creditors	21.069	7.346
Business Creditors	1.589	0.555
Outstanding Received	0.051	0.021
Deposits Received	0.000	0.120
Commission Brokerage Receivable	0.210	0.198	13.909
Professional Fees Payable	0.008	0.003
Service Tax Collected	(0.001)	(0.001)
Vat Collected in Sales	0.190	0.000
CST Dues	0.114	0.000
TOTAL	23.230	8.244	13.909

FORM 8:

Corporate identity number of the company	U24110MH1994PTC079918
Name of the company	MEMBA CHEM INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	19 M J Co Op Society 187 Princess Street, Mumbai – 400002, Maharashtra, India
This form is for	Modification of charge
Type of charge	Book Debts Movable Property
Particular of charge holder	Union Bank Of India
Nature of instrument creating charge	Supplementary Agreement to SD-06 Hypothecation Agreement [SD-06(S)]
Date of instrument Creating the charge	16/02/2010
Amount secured by the charge	Rs.15.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest At The Rate Of 11.75% Per Annum With Monthly Rests r Such Other Rate As May Be Revised By The Bank From Time To Time. Terms of Repayment On Demand Margin As Per Sanction Terms. Extent and Operation of the charge To Secure The Cash Credit (Hypothecation) Limit OF RS.15.000 millions Granted By The Bank To The Company. Others
Short particulars of the property charged	Hypothecation By Way Of First Charge In Favour Of The Bank :- Raw Materials, Semi Finished and Finished Goods, Consumable Stores, Spares and Movable Property Of Any Kind Now Or At Any Time Hereafter Belonging to or at The Disposal of The Borrower And Which Are Now Stored Or Being Stored or Which Hereafter May From Time To Time Be Brought Into or Stored or Be In or About The Borrower's Premises At M.I.D.C. Taloja and at Other Places Hired By The Borrower or Wherever Else The Same May Be. (2) The Borrower's Book-Debts, Outstanding, Monies, Deposits, Receivables, Claims, Bills, Contracts, Securities, Investments Which Are Now Due and owing or Which May At Any Time Hereafter During The Continuance of This Security Becoming Due and Owing To The Borrower In The Course Of Its Business By Any Person or Party Including Any Government or Any Local Or Public Body or Authority. (3) The Borrower's Plant and Machinery Present And Future.
Particulars of the present modification	The Cash Credit (Hypothecation) Limit Has Enhanced From Rs.8.000 millions To Rs.15.000 Millions And The Hypothecated Goods, Book Debts and Movable Property Covered By The Principal Hypothecation Agreement Shall Continue To Be A Security For The Bank For The Enhanced Limit of Rs.15.000 Millions Together With Interest, Additional Interest, Expenses, Costs And All Other Monies Payable By The Borrower To The Bank.

TRADE REFERENCES :

· Venus Petrochemical Private Limited – Shewari

· Deepak Fertilizers

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. 44.99
UK Pound	1	Rs. 72.59
Euro	1	Rs. 64.01

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.