MIRA INFORM REPORT

Report Date :

24.05.2011

IDENTIFICATION DETAILS

Name :	HERANBA INDUSTRIES LIMITED

Registered Office :	Plot No. 1505 / 1506, GIDC, Phase 3, Vapi, District Valsad – 396195, Gujarat

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	17.03.1992

Com. Reg. No.:	04-17315

Capital Investment / Paid-up Capital :	Rs.39.232 Millions

CIN No.: [Company Identification No.]	U24231GJ1992PLC017315

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer of Synthetic Pyrethroids and its intermediates

No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 1200000

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.

INFORMATION PARTED BY

Name :	Mr. Anantha G. Krishnan
Designation :	Senior Manager – Purchase
Contact No.:	91-9819892748
Date :	20.05.2011

LOCATIONS

Registered Office/Factory 1 :	Plot No. 1505 / 1506, GIDC, Phase 3, Vapi, District Valsad – 396195, Gujarat, India
Tel. No.:	91-260-2401644 / 2400536
Mobile No.:	91-9819892749 (Mr. Anantha Krishnan)
E-Mail :	sales@heranba.com heranba@vsnl.com
Website :	www.heranba.co.in
Area :	10000 Sq. ft.
Location :	Owned

Head Office :	101/102, Kanchanganga Factory Lane, Borivali (West), Mumbai – 400092, Maharashtra, India
Tel. No.:	91-22-28987912 / 14 / 28982133 / 44 / 28984439
Fax No.:	91-22-28993948

Marketing Office :	A-201/202, Dwarkesh, Above Tribhovandas Bhimji Zaveri, L.T. Road, Borivali (West), Mumbai – 400092, Maharashtra, India
Tel. No.:	91-22-28338443 / 44
Fax No.:	91-22-28338445

Factory 2 :	Plot No. A-2-2214/15, GIDC, Phase 3, Vapi, District Valsad – 396195, Gujarat, India
Tel. No.:	91-260-6534510 / 6537965
Area :	15000 Sq. ft.
Location :	Owned

Factory 3 :	Plot No. 1503, GIDC, Phase 3, Vapi, District Valsad – 396195, Gujarat, India
Tel. No.:	91-260-6544411
Area :	5000 Sq. ft.
Location :	Owned

Regional Offices :	Located at : New Delhi Haryana Punjab Lucknow Uttarakhand Rajasthan Jaipur Chennai Vijaywada Hyderabad Indore Akola Pune Ahmedabad Karnataka Raipur Orissa Kolkata

DIRECTORS

As on 30.09.2010

Name :	Mr. Sadashiv Pakeera Shetty
Designation :	Managing Director
Address :	18/A, Tower D, Viceroy Park, Opp. Thakur Cinema, Thakur Village, Kandivali (East), Mumbai – 400101, Maharashtra, India
Date of Birth/Age :	13.06.1954
Date of Appointment :	29.09.1994
DIN No. :	00038681

Name :	Mr. Raghuram Pakeera Shetty
Designation :	Whole-time Director
Address :	1601/B, Shantivan, Devidas Lane, Near Club Aquaria, Eksar Village, Borivali (West), Mumbai – 400013, Maharashtra, India
Date of Birth/Age :	25.03.1959
Date of Appointment :	29.09.1994
DIN No. :	00038703

Name :	Mrs. Sujata Sadashiv Shetty
Designation :	Director
Address :	18/A, Tower D, Viceroy Park, Opp. Thakur Cinema, Thakur Village, Kandivali (East), Mumbai – 400101, Maharashtra, India
Date of Birth/Age :	08.05.1960
Date of Appointment :	27.12.2001
DIN No. :	00632563

Name :	Mr. Jiten Zaverchand Gala
Designation :	Additional Director
Address :	25-2502, M.H. No. 9-21, Panchratna Building, Mama Parmanand Road, Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	15.11.1969
Date of Appointment :	12.07.2007
DIN No. :	00654647

Name :	Mrs. Priti Jiten Gala
Designation :	Additional Director
Address :	25-2502, M.H. No. 9-21, Panchratna Building, Mama Parmanand Road, Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	18.05.1970
Date of Appointment :	12.07.2007
DIN No. :	02101935

Name :	Mrs. Vanita Raghuram Shetty
Designation :	Director
Address :	1601/B, Shantivan, Devidas Lane, Near Club Aquaria, Eksar Village, Borivali (West), Mumbai – 400013, Maharashtra, India
Date of Birth/Age :	14.11.1969
Date of Appointment :	27.12.2001
DIN No. :	02493401

KEY EXECUTIVES

Name :	Mr. Anantha G. Krishnan
Designation :	Senior Manager – Purchase

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders		No. of Equity Shares
Sadashiv Pakeera Shetty		1636766
Raghuram Pakeera Shetty		965135
Sujata Sadashiv Shetty		317290
Vanita Raghuram Shetty		141800
Babu K. Shetty		22500
Shanta B. Shetty		7500
R. K. Shetty		90027
Vithal Bhandary		15000
Bhupendra D. Patel		100
Jagdish P. Patel		100
Shreya Sadashiv Shetty		10000
Sadashiv Pakeera Shetty HUF		32060
Raghuram Pakeera Shetty HUF		138000
Buniyad Chemicals Limited (India)		7500
Talent Infoway Limited (India)		18500
Jaihind Synthetics Limited (India)		9000
Haranba Tradelink Private Limited (India)		50000
Prishna Tradelink Private Limited (India)		25000
Mihir Agencies Private Limited (India)		2500
Alpha Chemie Trade Agencies Private Limited (India)		2500
Hetu Investment and Trading Private Limited (India)		10000
Highland Industries Limited (India)		31250
Supreme Communications Limited (India)		25000
Nimbus Industries Limited (India)		13750
Innovative Print Form Limited (India)		38750
Pet Plastics Limited (India)		24750
Alpha Graphic India Limited (India)		10000
Milenium Cypertech Limited (India)		10000
Stocknet International Limited (India)		5000
Artillegence Bio-innovations Limited (India)		12250
Total		3672028

Names of Shareholders		No. of Preference Shares
Sadashiv Pakeera Shetty		10100
Raghuram Pakeera Shetty		6621
Sujata Sadashiv Shetty		4800
Vanita Raghuram Shetty		3600
Total		25121

As on 30.09.2010

Category	Percentage
Bodies corporate	8.05
Directors or relatives of Directors	91.95
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Synthetic Pyrethroids and its intermediates

Products :

Particulars	ITC Code
Cyphermethric Acid Chloride	291600
Deltamethrin	380810

Exports :

Products :

Chemicals

Countries :

Vietnam
Iran
Indonesia
Germany
Colombia
Italy
Korea
Malaysia
Singapore
Belgium
Jordan
Taiwan
Kenya
South Africa

Terms :

Selling :

L/C, Cash and Credit (30 / 60 / 90 days)

Purchasing :

Cash and Credit (30 / 60 / 90 days)

PRODUCTION STATUS As on 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Pesticides and Herbicides	M.T.	NA	7032.000	5416.000

GENERAL INFORMATION

Customers :

End users and OEM’s

No. of Employees :

150 (Approximately)

Bankers :

Corporation Bank, 68/72, Babu Genu Road, New Hanuman Galli, Kalbadevi, Mumbai – 400002, Maharashtra, India
Axis Bank

Facilities :

Secured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
Loans from Corporation Bank :
Term Loans	48.969	76.478
Demand Loan	130.273	157.577
Cash Credit	131.363	81.783
Packing Credit	233.166	196.392
Loans from Other Bank :	0	0
Vehicle Loan from Axis Bank	0.438	0.576
Total	544.209	512.806

Notes :

Term Loan and Demand Loan from Corporation Bank are secured by :

Equitable mortgage of factory buildings :
Hypothecation of all moveable assets ; both present and future (save and except book debts) subject to prior charge of banks on inventories
Joint and several guarantee by all directors of the Company in individual capacity.

Cash Credit and Packing Credit facilities from Corporation Bank are secured by:

First charge on the current assets of the Company ;
Equitable Mortgage on land buildings and plant and machinery at factory at Vapi ;
Joint and several guarantee by all directors of the Company in individual capacity.

Unsecured Loans	31.03.2010 (Rs. in Millions)	31.03.2009 (Rs. in Millions)
Short Term Loans and Advances
From Directors	3.390
From other financial institution	9.035
From others – Security Deposit	13.274
Total	25.699	6.994


Banking Relations :	--

Auditors :
Name :	Anay Gogle and Company Chartered Accountant
Address :	1/F-6, Krishna Nagar, Chandawarkar Road, Borivali (West), Mumbai – 400092, Maharashtra, India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

4500000	Equity Shares	Rs.10/- each	Rs.45.000 Millions
50000	Preference Shares	Rs.100/- each	Rs.5.000 Millions
	Total		Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

3672028	Equity Shares	Rs.10/-each	Rs.36.720 Millions
25121	Preference Shares	Rs.100/- each	Rs.2.512 Millions
	Total		Rs.39.232 Millions

Notes :

Of the above 700,000 (Previous year 700,000) equity shares were allotted as fully paid-up by way of bonus shares by capitalisation of profits.
Preference Shares redeemable at par at the option of the company at any time, but not Later than 20 yrs from the date of issue i.e. 20.2.2002.

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		39.232	36.870	36.870
2] Share Application Money		0.000	43.796	34.957
3] Reserves & Surplus		250.938	166.987	61.570
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		290.170	247.653	133.397
LOAN FUNDS
1] Secured Loans		544.209	512.806	525.141
2] Unsecured Loans		25.699	6.994	5.389
TOTAL BORROWING		569.908	519.800	530.530
DEFERRED TAX LIABILITIES		16.464	9.734	13.723

TOTAL		876.542	777.187	677.650

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		280.788	284.222	234.849
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.228	0.224	0.185
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	359.008	276.591	253.433
	Sundry Debtors	519.923	328.670	310.498
	Cash & Bank Balances	69.760	87.214	93.279
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	547.768	332.345	171.257
Total Current Assets		1496.459	1024.820	828.467
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	533.447	477.882	358.348
	Other Current Liabilities	332.931	36.134	21.440
	Provisions	34.555	18.063	6.063
Total Current Liabilities		900.933	532.079	385.851
Net Current Assets		595.526	492.741	442.616

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		876.542	777.187	677.650

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1690.145	1563.183	1234.130
		Other Income	49.725	48.961	58.462
		TOTAL (A)	1739.870	1612.144	1292.592

Less	EXPENSES
		Consumption of Raw Material and Packaging Material	1211.858	1187.101	924.602
		Direct Manufacturing Overheads	123.104	97.759	100.613
		Personnel Cost	63.667	60.727	53.441
		Administration Cost	52.200	50.157	43.816
		Selling and Distribution Cost	91.418	51.117	50.373
		Increase / (Decrease) in stock	23.364	(1.015)	(3.380)
		TOTAL (B)	1565.611	1445.846	1169.465

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		174.259	166.298	123.127

Less	FINANCIAL EXPENSES (D)		75.435	77.898	69.223

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		98.824	88.400	53.904

Less/ Add	DEPRECIATION/ AMORTISATION (F)		31.437	33.256	37.917

	PROFIT BEFORE TAX (E-F) (G)		67.387	55.144	15.987

Less	TAX (I)		20.732	3.211	4.241

	PROFIT AFTER TAX (G-I) (J)		46.655	51.933	11.746

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		77.720	39.070	35.589

Less	APPROPRIATIONS
		Transfer to General Reserve	7.500	6.500	2.000
		Equity Dividend	6.184	5.497	5.497
		Tax on Equity Dividend	1.051	0.934	0.416
		Preference Dividend	0.301	0.301	0.301
		Tax on Preference Dividend	0.051	0.051	0.051
	BALANCE CARRIED TO THE B/S		109.288	77.720	39.070

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	6296.911	663.164	556.128
	TOTAL EARNINGS		6296.911	663.164	556.128

	IMPORTS
		Raw Materials	271.380	396.040	269.255
	TOTAL IMPORTS		271.380	396.040	269.255

	Earnings Per Share (Rs.)		12.71	15.01	3.32

Particulars

31.03.2011

Sales Turnover

1850.000

(Approximately)

Expected Sales ( 2011-2012 ) : Rs.2000.000 Millions

The above information has been parted by Mr. Anantha G. Krishnan

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.68	3.22	0.91

Net Profit Margin (PBT/Sales)	(%)	3.99	3.53	1.29

Return on Total Assets (PBT/Total Assets}	(%)	3.79	4.21	1.50

Return on Investment (ROI) (PBT/Networth)		0.23	0.22	0.12

Debt Equity Ratio (Total Liability/Networth)		5.07	4.25	6.87

Current Ratio (Current Asset/Current Liability)		1.66	1.93	2.15

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	533.447	477.882	358.348
Total	533.447	477.882	358.348

FINANCIAL RESULT

During the year, the company has earned income of Rs. 1823.661 Millions and earned profit of Rs. 67.386 Millions (Previous year Rs. 55.114 Millions). It has performed well in spite of recessionary trends. The current fiscal continues to be promising.

FORM 8

Corporate identity number of the company	U24231GJ1992PLC017315
Name of the company	HERANBA INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 1505 / 1506, GIDC, Phase 3, Vapi, District Valsad – 396195, Gujarat, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90095381
Type of charge	Immovable property Book debts Movable property Others
Particular of charge holder	Corporation Bank, 68/72, Babu Genu Road, New Hanuman Galli, Kalbadevi, Mumbai – 400002, Maharashtra, India
Nature of instrument creating charge	1.Supplemental common deed of hypothecation of moveables/assets/debts
Date of instrument Creating the charge	27.04.2010
Amount secured by the charge	Rs.1117.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : As stipulated by Bank from time to time. Terms of repayment : As stipulated by Bank from time to time. Margin : As stipulated by Bank from time to time. Extent and operation of the charge : First charge (present and future)=Total Limit Rs.1117.500 Millions (Cash Credit – Rs.310.000 Millions, PCL/PDFC = 140.000 Millions, FDBP/FDBN/FDBD/PSCFC = 150.000 Millions, Term Loan Rs.30.000 Millions, New Term Loan Rs.82.500 Millions, FCTL = Rs.45.000 Millions, FCTL = Rs.80.000 Millions, Import LC/Inland LC = 250.000 Millions, Corp Instant Service = Rs.30.000 Millions). Others : As stipulated by Bank from time to time and as per agreement attached and as per sanction letter of the Bank.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First charge(present and future)-exclusive first charge by way of hypothecation of stock/book debts and receivables and current assets exclusive first charge by way of hypothecation of entire fixed/movable assets of the company comprising of plant and machineries and furniture and other assets of the company exclusive first charge on the entire net block value of the company including hypothecation of all movable assets hypothecation of all current ,movable and fixed assets
Particulars of the present modification	By this modification limit enhanced to Rs.1117.500 Millions (Cash Credit – Rs.310.000 Millions, PCL/PDFC = 140.000 Millions, FDBP/FDBN/FDBD/PSCFC = 150.000 Millions, Term Loan Rs.30.000 Millions, New Term Loan Rs.82.500 Millions, FCTL = Rs.45.000 Millions, FCTL = Rs.80.000 Millions, Import LC/Inland LC = 250.000 Millions, Corp Instant Service = Rs.30.000 Millions), securities are continued as given by original charge as well as by modification, terms and conditions as per agreement attached and as per sanction letter of the bank.

FIXED ASSETS

Land
Building
Plant and Machinery
Electrical Installation
Piping
Laboratory Equipments
Canteen Equipments
Office Equipments
Computers
Vehicles
Furniture and Fixtures

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.45.28
UK Pound	1	Rs.73.30
Euro	1	Rs.63.61

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	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		49

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

359.008

519.923

69.760

0.000

547.768

1496.459

533.447

332.931

34.555

900.933

595.526

2.68

3.99

3.79

0.23

5.07

1.66

533.447

533.447

Unit