MIRA INFORM REPORT

Report Date :

23.06.2011

IDENTIFICATION DETAILS

Name :	KHYATI CHEMICALS PRIVATE LIMITED
Registered Office :	A/7, 4^th Floor, Safal Profitaire, Opposite Auda Garden, Prahlad Nagar, Corporate Road, Satellite, Ahmedabad – 380015, Gujarat
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	25.07.1994
Com. Reg. No.:	04- 22598
Capital Investment / Paid-up Capital :	Rs.9.931 Millions
CIN No.: [Company Identification No.]	U24231GJ1994PTC022598
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Dyes, Optical Whitening Agent.
No. of Employees :	300 (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 571000
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 are to be usually correct and as per commitments. The company can be considered 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 INFORMATION)

Name :	Mr. Manish Shah
Designation :	Accounts Manager
Contact No. :	91-79-40373880
Date :	20.06.2011

LOCATIONS

Registered Office :	A/7, 4^th Floor, Safal Profitaire, Opposite Auda Garden, Prahlad Nagar, Corporate Road, Satellite, Ahmedabad – 380015, Gujarat, India
Tel. No.:	91-79-40373880 / 81 / 82
Fax No.:	91-79-40373887
E-Mail :	khyatichemicals@yahoo.co.in khyatiad1@sancharnet.in
Website :	www.khyatichemicals.com
Factory 1 :	243/4/5, GIDC Estate, Phase-II, Vatva, Ahemdabad
Tel. No.:	91-79-25830486
Factory 2 :	C-1, 412/6, GIDC Estate, Phase-II, Vatva, Ahemdabad
Tel. No.:	91-79-25891748

DIRECTORS

As on 27.09.2010

Name :	Mr. Rajiv Narpatmal Bhandari
Designation :	Director
Address :	14B, Ashok Vatika, B/H. Islok Temple, Ambali- Bopat Road, Ahmedabad – 380058, Gujarat
Date of Birth/Age :	17.08.1957
Date of Appointment :	24.07.1994
DIN No. :	00159783
Name :	Mrs. Shubha Rajiv Bhandari
Designation :	Director
Address :	14B, Ashok Vatika, B/H. Islok Temple, Ambali- Bopat Road, Ahmedabad – 380058, Gujarat
Date of Birth/Age :	17.06.1965
Date of Appointment :	02.04.1998
DIN No. :	00159813

KEY EXECUTIVES

Name :	Mr. Manish Shah
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2010

Names of Shareholders	No. of Shares
Rajiv Narpatmal Bhandari	846660
Shubha Rajiv Bhandari	101460
Siddhant Rajiv Bhandari	43000
Sonal Rajiv Bhandari	2000
Total	993120

As on 27.09.2010

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Dyes, Optical Whitening Agent.

Products :

Product Description	Item Code
S O Dyes	3204.29
Whitening Agent	3204.30

• Dyes
• Direct Dyes
• Basic Dyes
• Acid Dyes

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Installed Capacity	Actual Production
S O Dyes	210000	167360
Optical Whitening Agent	12000000	5876220

GENERAL INFORMATION

No. of Employees :

300 (Approximately)

Bankers :

Ø State Bank of India, GIDC Industrial Estate, Vatva-382445, Ahmedabad, Gujarat, India

Ø ICICI Bank

Ø HDFC Bank

Ø Citi Bank

Ø Bank of India

Ø Bank of Baroda

Ø State Bank of India, Sales Hub, Laghu Udhyog Branch, Premises, Opposite Gandhigram Railway Station, Ahmedabad-380009, Gujarat, India.

Facilities :

Secured Loan	As on 31.03.2010 (Rs. In Millions)	As on 31.03.2009 (Rs. In Millions)
State Bank of India (Secured by first hypothecation charges over raw materials, semi-finished goods, finished goods and consumable items.)	132.894	43.227
ICICI Bank Car Loan Honda CRV	0.000	0.044
Kotak Mahindra Car Loan Tata indigo	0.071	0.255
Kotak Mahindra Car Loan Honda CIVIC (secured by the hypothecation of the motor car)	0.163	0.517
Total	133.128	44.043
Unsecured Loan
From directors and shareholders	20.580	18.389
From business constituents	2.223	2.057
Total	22.803	20.446

Banking Relations :	--
Auditors :
Name :	Deepak Soni and Associates Chartered Accountant
Address :	5, Jayshree Aank Partments, Udhyan Marg, Near Law Garden, Ahmedabad, Gujarat – 380006
Tel. No.:	91-79-26425150/26652784
Associates/Subsidiaries :	Khyati Chemical Industries Shubh Industries

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Share	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
993120	Equity Share	Rs.10/- each	Rs.9.931 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		9.931	9.931	9.931
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		132.779	86.609	63.202
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		142.710	96.540	73.133
LOAN FUNDS
1] Secured Loans		133.128	44.043	35.157
2] Unsecured Loans		22.803	20.446	19.850
TOTAL BORROWING		155.931	64.489	55.007
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		298.641	161.029	128.140
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		72.172	60.207	41.585
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		13.210	13.880	3.313
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	70.158	27.002	55.208
	Sundry Debtors	215.032	101.935	67.220
	Cash & Bank Balances	10.095	7.744	5.223
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	71.991	37.936	16.966
Total Current Assets		367.276	174.617	144.617
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	132.030	75.368	57.550
	Other Current Liabilities	0.798	1.119	0.636
	Provisions	21.189	11.188	3.189
Total Current Liabilities		154.017	87.675	61.375
Net Current Assets		213.259	86.942	83.242
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		298.641	161.029	128.140

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	777.509	519.236	277.658
		Other Income	0.008	0.105	0.412
		TOTAL (A)	777.517	519.341	278.070
Less	EXPENSES
		Manufacturing and other expenses	704.499	463.776	263.342
		Increase or decrease in stock	(14.459)	7.652	(2.168)
		TOTAL (B)	690.040	471.428	261.174
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) I		87.477	47.913	16.896
Less	FINANCIAL EXPENSES/ INTEREST (D)		9.825	7.157	4.464
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		77.652	40.756	12.433
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.482	7.349	5.890
	PROFIT BEFORE TAX (E-F) (G)		66.170	33.407	6.542
Less	TAX (H)		20.000	10.000	2.000
	PROFIT AFTER TAX (G-H) (I)		46.170	23.407	4.542
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		86.609	63.202	58.660
	BALANCE CARRIED TO THE B/S		132.779	86.609	63.202
	EARNINGS IN FOREIGN CURRENCY		577.159	288.500	116.671
	IMPORTS		168.617	63.408	65.504
	Earnings Per Share (Rs.)		46.49	23.57	4.57

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.94	4.51	1.63
Net Profit Margin (PBT/Sales)	(%)	8.51	6.43	2.36
Return on Total Assets (PBT/Total Assets}	(%)	15.06	14.23	3.51
Return on Investment (ROI) (PBT/Networth)		0.46	0.35	0.09
Debt Equity Ratio (Total Liability/Networth)		2.17	1.57	1.59
Current Ratio (Current Asset/Current Liability)		2.38	1.99	2.36

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Creditors for expenses	4.826	5.440	3.411
Creditors for goods	127.204	69.928	54.139
Total	132.030	75.368	57.550

Bankers Charges Report as per Registry

Corporate identity number of the company	U24231GJ1994PTC022598
Name of the company	KHYATI CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	A/7, 4^th Floor, Safal Profitaire, Opposite Auda Garden, Prahlad Nagar, Corporate Road, Satellite, Ahmedabad – 380015, Gujarat, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80006658
Type of charge	Book debts Movable property Others
Particular of charge holder	State Bank of India, Sales Hub, Laghu Udhyog Branch, Premises, Opposite Gandhigram Railway Station, Ahmedabad-380009, Gujarat, India.
Nature of instrument creating charge	Supplemental Agreement of Loan-Cum-Hypothecation.
Date of instrument Creating the charge	16.02.2011
Amount secured by the charge	Rs.270.900 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : 13.60% p.a. Terms of repayment : One year subject to review every 12 months. Margin : RM(imported)-15%,RM(indigenous)-25%,SFI-30%,FG-30%,RECEIVALES-35%,EPC-10%,LC-20%,BG-20% Extent and operation of the charge : The Agreement shall operate as Security for repayment of Loan Amount together with interest, penal interest, charges and expenses. Others : Other terms and conditions as per Agreement.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of Raw Materials, Stocks- in- process, Finished Goods, Book Debts and all Current Assets of the Company. Hypothecation of all the Plant and Machinery of the Company.
Date of instrument modifying the charge	24.05.2010
Particulars of the present modification	By Supplemental Agreement of Loan-Cum-Hypothecation dated 16.02.2011, the present Credit Limit of Rs.221.500 millions is extended upto Rs.270.900 millions.

Fixed Assets:

• Land
• Buildings
• Plant and Machinery
• ETP Plant
• Vehicles
• Office Premises
• Bicycles
• Electric Fittings
• Furniture and Fixtures
• Laboratory Equipments
• Office Equipments

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.44.82
UK Pound	1	Rs.72.84
Euro	1	Rs.64.58

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	YES
--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.