MIRA INFORM REPORT

Report Date :

03.03.2011

IDENTIFICATION DETAILS

Name :	SHYAM CHEMICALS PRIVATE LIMITED
Registered Office :	Jash Chambers, 5th Floor, Sir P M Road, Fort, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	07.05.1971
Com. Reg. No.:	11-171672
CIN No.: [Company Identification No.]	U24110MH1971PTC171672
TAN No.: [Tax Deduction & Collection Account No.]	MUMS5909B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Chemicals and Industrial Chemicals

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 268800
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. General financial position is good. 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.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	Jash Chambers, 5th Floor, Sir P M Road, Fort, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-40985000
Fax No.:	91-22-40985050 / 40985005
E-Mail :	Shyamchemicals@vsnl.com
Website :	http://www.Shyamchemicals.com
Factory :	Located at : Ahmedabad, Gujarat

DIRECTORS

As on 29.09.2010

Name :	Mr. Sharad Shreenarain Somani
Designation :	Director
Address :	6^th Floor, Shreeniketan, 86 A, A N S Road, Mumbai, Maharashtra, India
Date of Birth/Age :	14.10.1951
Date of Appointment :	11.08.2003
Din :	00137273
Name :	Mr. Sevantilal Jivanlal Parekh
Designation :	Director
Address :	72, Marine Drive, Mumbai, Maharashtra, India
Date of Birth/Age :	21.07.1932
Date of Appointment :	07.05.1971
Din :	00010767
Name :	Mr. Mahesh Madanlal Somani
Designation :	Director
Address :	Occeana 214, Marine Drive, A N S Road, Mumbai, Maharashtra, India
Date of Birth/Age :	13.10.1949
Date of Appointment :	23.11.1971
Din :	00137180
Name :	Mr. Rajesh Kumar Tapuriah
Designation :	Director
Address :	82, Sujata Malbar Hills, Mumbai, Maharashtra, India
Date of Birth/Age :	06.01.1965
Date of Appointment :	01.10.2005
Din :	00203841

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders	No. of Shares
Madanlal G Tapuriah	485
Praful Chandra D Contractor	55
Nand kumar Contractor	100
Mira P Contractor	95
Indra Devi Tapuriah	220
S S Tapuriah	475
Shantadevi Tapuriah	620
Sunil S Parekh and Sujata Parekh	200
Sarla S Parekh and S J Parekh	700
Sujata Parekh and S J Parekh	945
Sushilkumar Tapuriah	25
Sudeshan Kumar Tapuriah	25
Rekha Tapuriah	100
Kusum Tapuriah	25
Sashikant Tapuriah	25
Madanlala tapuriah and Indradevi tapuriah	500
Renuka Bhansali and S J Parekh	200
Sunil S Parekh and Sujata Parekh	100
S J Parekh and Sunil S Parekh	10
Sunil S Parekh and S J Parekh	1405
Dushyant Somani and M M Somani	2191
Sonpriya Investments Private Limited, Mumbai	1090
Kanchanben Choksi and Sujata Parekh	140
Visahal Somani and Ranajana Somani	565
Vishal Somani and Garima Somani	367
Sharad Somani and Poonam Somani	50
Poonam Somani and Sharad Somani	42
Ankit Somani and Poonam Somani	500
Vishal Somani and Ranajana Somani	750
Mahesh Somani and Manjushree	500
Vaikunth Trading Co Private Limited, Mumbai	2495
Total	15000

As on 29.09.2010

Category	Percentage
Bodies corporate	23.90
Directors or relatives of Directors	76.10
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Chemicals and Industrial Chemicals

Products :

Product Description	Item Code
Cuprous Chloride	28273904
Cupric Chloride Anhydrous	28273909
Copper Carbonate	28365000
Copper Oxychloride	38082050

PRODUCTION STATUS AS ON (31.03.2010)

Particulars	Unit	Licensed and Installed Capacity	Actual Production
Cuprous and Cupric Chloride	M.T.	3000	1820.542
Cuprous and Cupric Oxide	M.T.	100	--
Cupric Chloride Anhydrous	M.T.	--	120.630
Cupric Chloride Dihydrous	M.T.	--	8.450
Copper Oxycholride (OP)	M.T.	--	6.342
Copper Oxycholride (T)	M.T.	--	72.093
Copper Oxycholride (WP)	M.T.	--	584.190

GENERAL INFORMATION

Bankers :

• Bank of India, Mumbai Overseas Branch, 70-80, Mahatma Gandhi Road, Mezzaine Floor, Mumbai – 400023, Maharashtra, India
• ICICI Bank

Facilities :

Secured Loan	31.03.2010 (Rs.in million)	31.03.2009 (Rs.in million)
From Bank of India
Demand Loan	0.000	0.000
Cash Credit Account	73.711	24.784
Term Loan	5.250	7.500
ICICI Bank Car Loan	0.000	0.351
Total	78.961	32.635
Unsecured Loan
From Directors / a firm in which directors are interested	2.403	2.338
From Directors	1.164	1.164
From Shareholders	3.164	3.162
Intercorporate Deposits	1.601	1.799
Total	8.332	8.463
Note : All the facilities (existing and new) from Bank of India are secured by hypothecation of stocks, Book Debts, Plant and Machinery, Pledge of Bills / Import Trust Receipts / Margin TDR’s etc. and equitable mortgage of factory block situated at GICD, Ankleshwar and Premises situated at Centre point , Panchwati, Ahmedabad, Further all the facilities are jointly and severally guaranteed by three directors of the company.

Banking Relations :	--
Auditors :
Name :	S G Kabra and Company Chartered Accountant
Address :	Wavell House, 1^st Floor, 1^st Dhobi Talao Lane, Mumbai – 400002, Maharashtra, India
Tel. No.:	91-22-22010708 / 22004533
PAN No. :	AAVFS3160L

CAPITAL STRUCTURE

As on 29.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
25,000	Equity Shares	Rs.100/-each	Rs.2.500 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15,000	Equity Shares	Rs.100/-each	Rs.1.500 million

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		1.500	1.500	1.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		65.711	56.608	62.797
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		67.211	58.108	64.297
LOAN FUNDS
1] Secured Loans		78.961	32.635	86.167
2] Unsecured Loans		8.333	8.463	8.585
TOTAL BORROWING		87.294	41.098	94.752
DEFERRED TAX LIABILITIES		1.005	1.028	0.497
TOTAL		155.510	100.234	159.546
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		42.646	46.362	37.515
Capital work-in-progress		0.000	0.000	1.786
INVESTMENT		0.098	0.098	0.099
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	29.456	16.203	32.266
	Receivables	75.700	35.519	97.740
	Cash & Bank Balances	0.173	0.155	3.396
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	39.622	29.504	31.418
Total Current Assets		144.951	81.381	164.820
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.833	2.762
	Other Current Liabilities	11.566	9.936
	Provisions	15.786	14.909
Total Current Liabilities		32.185	27.607	44.674
Net Current Assets		112.766	53.774	120.146
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		155.510	100.234	159.546

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	532.586	506.830	536.740
		Other Income	0.411	0.125	0.028
		TOTAL (A)	532.997	506.955	536.768
Less	EXPENSES
	Raw Material Consumed		465.613	451.152	472.779
		Manufacturing Expenses	13.068	10.382	9.196
		Payment and Provisions for Employees	8.906	6.399	7.508
		Administrative and Other Expenses	8.851	2.939	3.538
		Selling and Distribution Expenses	14.833	18.809	20.485
		Excise Duty on Finished Goods	0.000	(0.503)	0.000
		Increase / Decrease in stock	(4.552)	7.506	(13.307)
		TOTAL (B)	506.719	496.684	500.199
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.278	10.271	36.569
Less	FINANCIAL EXPENSES (D)		10.970	11.148	11.212
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.308	(0.877)	25.357
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.341	4.781	4.843
	PROFIT BEFORE TAX (E-F) (G)		9.967	(5.658)	20.514
Less	TAX (I)		0.438	0.000	6.922
	PROFIT AFTER TAX (G-I) (J)		9.529	(5.658)	13.592
Add /Less	DEFERRED TAX LIABILITY / ASSET		(0.022)	0.531	0.057
Less	INCOME TAX OF EARLIER YEAR		0.010	--	--
	NET PROFIT		9.541	(6.189)	13.535
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		28.552	34.741	24.144
Less	APPROPRIATIONS
		Transfer to General Reserve	1.000	--	2.500
		Dividend	0.375	--	0.375
		Tax on Dividend	0.063	--	0.063
	BALANCE CARRIED TO THE B/S		36.655	28.552	34.741
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	361.486	377.245	NA
	TOTAL EARNINGS		361.486	377.245
	IMPORTS		291.429	282.294	Na
	Earnings Per Share (Rs.)		6.35	(3.77)	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.79	(1.12)	2.53
Net Profit Margin (PBT/Sales)	(%)	1.87	(1.12)	3.82
Return on Total Assets (PBT/Total Assets}	(%)	5.31	(4.43)	10.14
Return on Investment (ROI) (PBT/Networth)		0.15	(0.10)	0.32
Debt Equity Ratio (Total Liability/Networth)		1.78	1.18	2.17
Current Ratio (Current Asset/Current Liability)		4.50	2.95	3.69

LOCAL AGENCY FURTHER INFORMATION

Note : Registered office of the company has been shifted from Industry House Ahram Road, Ahmedabad, Gujarat, India to the present address w.e.f. – 07.05.2007

Operating Performance :

The Company’s Performance during the year has been better as compared to previous year because of the global economic recovery during the year and subsequent increase in the exports as well as domestic orders.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24110MH1971PTC171672
Name of the company	Shyam Chemicals Pvt Ltd
Address of the registered office or of the principal place of business in India of the company	Jash Chambers , 5th Floor , Sir P M Road , Fort , Mumbai – 400001, Maharashtra, India
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Bank of India, Mumbai Overseas Branch, 70-80, Mahatma Gandhi Road, Mezzaine Floor, Mumbai – 400023, Maharashtra, India Email – shyamchemicals@vsnl.com
Nature of instrument creating charge	Hypothecation cum Loan Agreement (Plant& Machinery , Stocks and Book Debts)
Date of instrument Creating the charge	06.09.2010
Amount secured by the charge	Rs.10.000 million
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - 9.50% p.a. with monthly rests or at such other rate/s of interest as may be notified by the Bank from time to time. Terms of Repayment - On Demand. Margin - 10% against raw material ,finished goods or as specified by the bank from time to time . Extent and Operation of the charge - Security and charge hereby created shall be by way of first charge on all the said hypothecated assets for due payment as provided in the deed of all monies including the principal sums, interest/commission costs charges and expenses and all other monies whatsoever due owing and payable by the Borrower to the Bank under or in respect of or in connection with or in any wise concerning or relating to the said facilities agreed to be granted and/or granted by the Bank to the borrower and also for due repayment of all present and future indebtedness and liabilities of the borrower to the Bank of any kind in any manner whether solely or jointly primary or collateral accrued or accruing with all relative interest/commission, charges , costs (between advocate & client) and expenses. Facility & Limit: Export Packing Credit : Rs.10.000 million.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	a) All tangible movable machineries and plant, both present and future situate at Ankleshwar or wherever else b)All tangible movable properties, assets, and stocks of whatsoever nature of the Borrower both present and future wheresoever situate at Ankleshwar or wherever else. c) All present and future book debts, outstanding, money receivables, claims, bills which are now due and owing or which may any time hereafter during the continuance of this security become due and owing to the Borrower.

FIXED ASSETS :

• Lease Hold Land
• Building Factory
• Building Office - Ahmedabad
• Building office -Mumbai
• Plant and machinery
• Furniture and Fixture
• Vehicles
• Office Equipments
• Technical Know-how

AS PER WEBSITE

Company Profile

They are manufacturing inorganic copper chemicals since 1972. They sell their products to various customers both in the domestic as well as the international markets across several countries.

Production was started at their plant located in Ahemdabad, Gujarat. In 2001 they set-up a new facility at ankleshwar, Gujarat and shifted all manufacturing operations here and closed the old plant.

Constant quality improvisations, technology upgrades and consistency in production and distribution have assisted Shyam's growth, making them one of the premier inorganic copper chemical manufacturers in India today.

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.45.12
UK Pound	1	Rs.73.43
Euro	1	Rs.62.32

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
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	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	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.