MIRA INFORM REPORT

Report Date :

10.03.2011

Note: The registered office of the company has been shifted from 40 GIDC Chitra, Bhavnagar-364004, Gujarat, India to the present address w.e.f. 05.05.2008

IDENTIFICATION DETAILS

Name :	AQUAGEL CHEMICALS PRIVATE LIMITED
Registered Office :	53, 55, 56-B, G.I.D.C, Chitra Industrial Estate, Bhavnagar-364004, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	04.12.1990
Com. Reg. No.:	04-014727
CIN No.: [Company Identification No.]	U24110GJ1990PTC014727
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of Soaps and Detergents of Popular Brands.

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 1400000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be 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

INFORMATION DECLINED BY

Management Non Co-Operative.

LOCATIONS

Registered Office :	53, 55, 56-B, G.I.D.C, Chitra Industrial Estate, Bhavnagar-364004, Gujarat, India
Tel No.:	91-278-2445415/2446362
Fax No.:	91-278-2446159
E-Mail :	madhusilica@madhusilica.com
Factory:	251, Navagaon (Karde), Bhavnagar-364060, Gujarat, India
Tel No.:	91-278-2540206/2540294/95
Fax No.:	91-278-2540293

DIRECTORS

As on 10.06.2010

Name :	Mr. Rameshchandra Vinaychand Shah
Designation :	Director
Address :	1890-A/1, Vasudha Opposite Akash Ganga Flats, New Rupani Circle, Bhavnagar-364002, Gujarat, India
Date of Birth/Age :	14.08.1945
Date of Appointment :	08.09.1998
Name :	Mr. Girishbhai Vinaychand Shah
Designation :	Director
Address :	201,Panch Kutir, Kalubha Road, Bhavnagar-364002, Gujarat, India
Date of Birth/Age :	15.12.1952
Date of Appointment :	08.09.1998
Name :	Mr. Darshak Rameshchandra Shah
Designation :	Director
Address :	1890-A/1, Vasudha Opposite Akash Ganga Flats, New Rupani Circle, Bhavnagar-364002, Gujarat, India
Date of Birth/Age :	02.01.1974
Date of Appointment :	01.09.2002

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 10.06.2010

Names of Shareholders	No. of Preferences Shares	No. of Equity Shares
Ramesh V. Shah	--	85217
Ramesh V. Shah (HUF)	--	125926
Kalpanaben R. Shah	--	113650
Darshak R shah	--	81112
Darshak R shah (HUF)	--	15000
Darshak Finstock Private Limited	--	31482
Bharat P. Raut	--	37925
Bharat P. Raut (HUF)	--	12630
Vidyaben B. Raut	--	22939
Manas B. Raut	--	10693
Jayee B. Raut	--	10000
Girishbhai Vinaychand Shah	--	5000
Girishbhai Vinaychand Shah HUF	--	5000
Deepikaben P. Shah	--	17000
Nikita G. Shah	--	2000
Nidhi G. shah	--	2000
Udaykant L Mehta J W	--	454
Udaykant L Mehta J W	--	454
Udaykant L Mehta J W	--	456
Udaykant L Mehta J W	--	456
Udaykant L Mehta J W	--	475
Ragini A Dhru J W Avanish V Dhru	--	10000
Jhankhana V. Vora J W	--	10000
Kalyani P. Vohra J W Dr. Prakash A Vohra	--	10000
Shivani T Mehta J W Tushar H Mehta	--	10000
Neepa U. Mefrta J W	--	10000
Dattara A Vartak	--	25629
Ajita D Vartak	--	834
Prasad D. Vartak	--	834
Shardaben Shastry	--	23773
Ramesh R. Shastrv	--	16735
Nalini S. Shatry	--	4184
Vaibhav S. Shastrv	--	4184
Chetana S. Shastrv	--	4184
Hindustan Lever Limited, India	913000	284040
Motilal M Shah J W	--	16389
Motilal M Shah J W	--	16389
Chandramohan M. Shah	--	32778
M.M.S. Holding Private Limited	--	32778
Total	913000	1092600

As on 10.06.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	31.88
Directors or relatives of directors	41.36
Other top fifty shareholders	26.76
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of Soaps and Detergents of Popular Brands.

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

Standard Chartered Bank, Abhijeet II, Ground Floor, Near Mithakhali Six Roads, Ahmedabad-380006, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loan
From Bank
Bhavnagar Unit: State Bank of India	30.499	39.940
From Bank of Cash Credit A/c
Bhavnagar Unit: State Bank of India CC	0.000	1.752
State Bank of India UBD	0.000	4.804
Gandhidham Unit: HDFC Bank CC	0.000	216.206
Total	30.499	262.702
Unsecured Loan
Gandhidham Unit: From Directors and Shareholders	132.000	132.000
Total	132.000	132.000

Note:

• The term loan from State Bank of India, secured by company all fixed assets (movable and immovable at Bhavnagar) both present and future assets of the company.
• The cash credit / C.D./ O.D loans from HDFC is secured by hypothecation of all tangible movable property of the company at Gandhidham such as goods, book debts and other assets, present and future, lying, stored and kept with premises of the company or elsewhere.
• The cash credit / C.D./ O.D loans from State Bank of India is secured by hypothecation of all tangible movable property of the company at Bhavnagar such as goods, book debts and other assets, present and future, lying, stored and kept with premises of the company or elsewhere.

Banking Relations :	--
Auditors :
Name :	V.M. Shah and Company Chartered Accountant
Address :	103, Radha Apartment, Above Gujarat Travels, Waghavadi Road, Bhavnagar-364002, Gujarat, India
Tel. No.:	91-278-2430052/2421767
Fax No.:	91-278-3001196

CAPITAL STRUCTURE

As on 10.06.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1100000	Equity Shares	Rs.100/- each	Rs.110.000 Millions
1000000	Preferences Shares	Rs.100/- each	Rs.100.000 Millions
	Total		Rs.210.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1092600	Equity Shares	Rs.100/- each	Rs.109.260 Millions
913000	Preferences Shares	Rs.100/- each	Rs.91.300 Millions
	Total		Rs.200.560 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		200.560	200.560	200.560
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		172.654	141.615	104.941
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		373.214	342.175	305.501
LOAN FUNDS
1] Secured Loans		30.499	262.702	202.023
2] Unsecured Loans		132.000	132.000	132.000
TOTAL BORROWING		162.499	394.702	334.023
DEFERRED TAX LIABILITIES		0.000	0.000	8.604
TOTAL		535.713	736.877	648.128
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		535.544	646.395	670.273
Capital work-in-progress		1.491	3.482	0.000
INVESTMENT		50.024	0.013	3.031
DEFERREX TAX ASSETS		31.824	15.955	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	470.989	569.074	545.164
	Sundry Debtors	100.677	279.384	89.594
	Cash & Bank Balances	44.238	34.715	112.662
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	269.412	221.299	213.747
Total Current Assets		885.316	1104.472	961.167
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		659.880	719.094
	Other Current Liabilities	671.626	149.908	94.423
	Provisions	296.860	223.652	172.826
Total Current Liabilities		968.486	1033.440	986.343
Net Current Assets		(83.170)	71.032	(25.176)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		535.713	736.877	648.128

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	4758.300	4966.400	4879.300
		Other Income	1.500	3.600	8.200
		TOTAL (A)	4759.800	4970.000	4887.500
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	4421.400	4571.800	4532.900
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		338.400	398.200	354.600
Less	FINANCIAL EXPENSES (D)		77.400	116.700	102.700
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		261.000	281.500	251.900
Less/ Add	DEPRECIATION/ AMORTISATION (F)		140.300	175.400	173.000
	PROFIT BEFORE TAX (E-F) (G)		120.700	106.100	78.900
Less	TAX (H)		37.500	36.800	28.000
	PROFIT AFTER TAX (G-H) (I)		83.200	69.300	50.900
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		90.900	61.100	41.900
Less	APPROPRIATIONS
		Transfer to General Reserve	7.900	6.900	5.000
		Proposed Dividend	44.600	28.200	22.800
		Tax on Proposed Dividend	7.600	4.800	3.900
	BALANCE CARRIED TO THE B/S		114.000	90.500	61.100
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	8.144	6.232
	IMPORTS
		Raw Materials	NA	1227.582	713.132
	Earnings Per Share (Rs.)		41.48	56.62	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.75	1.39	1.04
Net Profit Margin (PBT/Sales)	(%)	2.54	2.14	1.62
Return on Total Assets (PBT/Total Assets}	(%)	8.49	6.06	4.84
Return on Investment (ROI) (PBT/Networth)		0.32	0.31	0.26
Debt Equity Ratio (Total Liability/Networth)		3.03	4.17	4.32
Current Ratio (Current Asset/Current Liability)		0.91	1.07	0.97

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)
Sundry Creditors
Sundry Creditors fro Goods Supplied Gandhidham Unit	NA	649.808	706.011
Sundry Creditors Others Bhavnagar Unit	NA	4.754	1.579
Sundry Creditors Others Gandhidham Unit	NA	5.318	11.504
Total	NA	659.880	719.094

OPERATION:

The production of Precipitated Silica manufacturing at Bhavnagar Unit was satisfactory as compared to previous financial year. The production in terms of MT has increased from 4274 MT to 6230 MT during the year under report.

The production of soap, detergent powder and other by-product manufacturing at Gandhidham Unit has been maintained at satisfactory level during the year under report.

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U24110GJ1990PTC014727
Name of the company	AQUAGEL CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	53, 55, 56-B, G.I.D.C, Chitra Industrial Estate, Bhavnagar-364004, Gujarat, India
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	Standard Chartered Bank, Abhijeet II, Ground Floor, Near Mithakhali Six Roads, Ahmedabad-380006, Gujarat, India
Email	avinash.bahutule@sc.com
Nature of description of the instrument creating or modifying the charge	Unattested memorandum of hypothecation
Date of instrument Creating the charge	17.07.2010
Amount secured by the charge	Rs.50.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As agreed by and with the bank from time to time Terms of Repayment As prescribed by the Bank Margin As agreed by and with the bank from time to time Extent and Operation of the charge First exclusive charge on all current assets including stocks and book debts of company more particularly described in schedule of the attached unattested memorandum of hypothecation dated 17.07.2010.
Short particulars of the property charged	I) all present & future: 1. Book debts, outstandings, money receivables, claims, bills due and owing to the company. 2. Stock in trade consisting of raw materials, finished goods, goods in process and other merchandise, being movable properties of the company, wheresoever lying / situated / stored etc.

Fixed Assets:

• Land
• Building
• Plant and Machinery
• Computer
• Office Equipment
• Furniture
• Vehicles

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.45.02
UK Pound	1	Rs.72.70
Euro	1	Rs.62.54

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	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	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.