MIRA INFORM REPORT

Report Date :

28.05.2011

IDENTIFICATION DETAILS

Name :	KEMIT CHEMICALS PRIVATE LIMITED
Formerly Known As :	RKM MACHINERY MANUFACTURING AND TRADING PRIVATE LIMITED
Registered Office :	41, 4^th Floor, Empire Tower, Panchvati C. G. Road, Near Associated Petrol Pump, Ellis Bridge, Ahmedabad – 382006, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	04.11.1993
Com. Reg. No.:	04-020592
Paid-up Capital :	Rs. 4.555 Millions
CIN No.: [Company Identification No.]	U24231GJ1993PTC020592
TAN No.: [Tax Deduction & Collection Account No.]	AHMK00202G
PAN No.: [Permanent Account No.]	AAACK5879N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Special Chemical are Prepared for Textile, Leather, Construction Chemical and Pesticides.
No. of Employees :	32 ((approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 310000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Financial position of the company is improving. The company has been successful in the wiping off the accumulated losses of previous year. Trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Keyur Desai
Designation :	Director
Contact No.:	91-9824548070

LOCATIONS

Registered Office :	41, Empire Tower, Panchvati C. G. Road, Near Associated Petrol Pump, Ellis Bridge, Ahmedabad – 382006, Gujarat, India
Tel. No.:	91-79-65215206/ 65418659/ 65418659/ 26430726
Fax No.:	91-79-26421388
E-Mail :	roopalcs2001@gmail.com info@kemitchemicals.com kemit@icenet.net yogesh@kemitchemicals.com info@kemitchemicals.com keyur@kemitchemicals.com
Website :	www.kemitchemicals.com
Factory :	78/12, Near Special Refractories, Phase I, GIDC Vatwa, Ahmedabad – 382445, Gujarat, India
Tel No.:	91-79-25830382/65215208
Mobile :	91-9824548070 (Mr. Kuyer Desai)

DIRECTORS

As On 30.09.2010

Name :	Mr. Yogesh Kantilal Desai
Designation :	Chairman and Managing Director
Address :	85 Tapovan Society, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	19.06.1946
Qualification :	B. Sc.
Date of Appointment :	14.11.1993
DIN No.:	01287725
Name :	Mr. Keyur Yogesh Deshi
Designation :	Director
Address :	85 Tapovan Society, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	07.01.1974
Qualification :	M. BA
Date of Appointment :	29.12.2001
DIN No.:	01948902
Name :	Ms. Ruju Keyur Desai
Designation :	Director
Address :	RH/4, Punyashree, B/H, Jahanvee Restaurant, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	07.10.19795
Date of Appointment :	30.09.2010
DIN No.:	03036488

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.09.2010

Names of Shareholders	No. of Shares
Yogeshbhai Kantilal Shah	9540
Yogeshbahi Kantilal Shah (HUF)	1230
Keyurbhai Y. Desai	9040
Gopiben Yogeshbhai Desai	10074
Mital Yogeshbhai Desai	5610
Raju Keyurbhai Desai	9
Mansi M. Desai	0
Rupal Kantibhai Desai	4924
Krishnakant K. Desai	1470
Ramdatt T. Shah	464
Rakeshbahi K. Desai	1110
Alpaben D. Shah	269
Dipalbhai T. Shah	1340
Rashmikant B. Shah	220
Dipikaben R. Shah	250
Total	45550

As On 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Special Chemical are Prepared for Textile, Leather, Construction Chemical and Pesticides.
Products :	· Textile Auxiliaries · Dispersing Agent

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Actual Production
Dispersing Agents/ Textile Auxiliaries	Kgs.	1779062

GENERAL INFORMATION

No. of Employees :

32 (approximately)

Bankers :

· Bank of India, Ahmedabad Main Branch, Mezza Nine Floor, BOI Building Bhadra, Ahmedabad – 380001, Gujarat, India

· HDFC Bank Limited, HDFC Senapati Bapat Marg, Lower Parel W, Mumbai – 400013, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. in Millions)
From Bank o India
Working Capital Loans
Cash Credit Facilities	0.459	4.159
Bills Discounting/Purchase Facilities	3.558	0.000
Export Packing Credit	0.000	0.804
Term Loan	0.418	0.501
HDFC Bank – Car Loan (Purchase under the hire purchase agreement)	0.446	0.000
Total	4.881	5.464
Note: Secured by way of First charge on hypothecation of Raw -materials, stock in process, Finished goods, stores and spares, packing materials, book debts and a second charge on the immovable properties of the Company)
Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. in Millions)
From Directors	2.663	2.134
From Shareholders	4.795	1.204
Total	7.458	3.338

Banking Relations :	--
Auditors :
Name :	Rajesh Dudhara and Company Chartered Accountant
Address :	601/B, 6^th Floor, Harekrishna Complex, Pritamnagar Bus Stand, Ellisbridge, Ahmedabad – 380020, Gujarat, India
Tel. No.:	91-79-26675189
Mobile No.:	91-9427509685
Email :	sachnam@dataone.in rajesh_1917@yahoo.co.in
Pan No.:	AAJPD4324P

CAPITAL STRUCTURE

As On 31.03.2010

Authorised Capital:

No. of Shares	Type	Value	Amount
55000	Equity Shares	Rs.100/- each	Rs.5.500 Millions
45000	12% Non Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.4.500 Millions
	Total		Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
45550	Equity Shares	Rs.100/- each	Rs.4.555 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		4.555	9.000	9.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4.971	0.281	0.281
4] (Accumulated Losses)		0.000	(1.080)	(1.282)
NETWORTH		9.526	8.201	7.999
LOAN FUNDS
1] Secured Loans		4.881	5.464	6.879
2] Unsecured Loans		7.458	3.338	3.388
TOTAL BORROWING		12.339	8.802	10.267
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		21.865	17.003	18.266
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.549	2.001	2.588
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.005	0.005	0.005
DEFERREX TAX ASSETS		0.212	0.133	0.079
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.818	4.153	4.638
	Sundry Debtors	23.853	15.993	18.716
	Cash & Bank Balances	0.745	1.496	1.348
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.486	5.797	5.184
Total Current Assets		40.902	27.439	29.886
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.597	11.739	13.611
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	4.206	0.836	0.699
Total Current Liabilities		22.803	12.575	14.310
Net Current Assets		18.099	14.864	15.576
MISCELLANEOUS EXPENSES		0.000	0.000	0.018
TOTAL		21.865	17.003	18.266

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	77.911	48.523	46.177
		Job work Charge Received	0.000	0.881	1.891
		Other Income	0.965	3.056	0.355
		TOTAL (A)	78.876	52.460	48.423
Less	EXPENSES
		Manufacturing Expenses	51.251	36.077	36.681
		Payments to Employees	3.305	1.639	1.429
		Selling Administrative and Other Expenses	14.942	12.877	7.808
		Increase/(Decrease) in Finished Goods	(0.605)	0.426	0.447
		Preliminary Expenditure Written off	0.000	0.019	0.018
		TOTAL (B)	68.893	51.038	46.383
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9.983	1.422	2.040
Less	FINANCIAL EXPENSES (D)		1.023	0.678	0.606
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.960	0.744	1.434
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.569	0.576	0.836
	PROFIT BEFORE TAX (E-F) (G)		8.391	0.168	0.598
Less	TAX (I)		2.622	(0.034)	0.171
	PROFIT AFTER TAX (G-I) (J)		5.769	0.202	0.427
Add	EXCESS PROVISION WRITTEN BACK		0.000	0.000	0.013
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1.080)	(1.282)	(1.722)
Less	APPROPRIATIONS
		Transfer to Capital Redemption Reserve	4.445	0.000	0.000
	BALANCE CARRIED TO THE B/S		0.244	(1.080)	(1.282)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	56.200	41.600	34.172
	TOTAL EARNINGS		56.200	41.600	34.172
	Earnings Per Share (Rs.)		29.07	4.45	9.67

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.31	0.39	0.88
Net Profit Margin (PBT/Sales)	(%)	10.77	0.35	1.30
Return on Total Assets (PBT/Total Assets}	(%)	18.88	0.57	1.84
Return on Investment (ROI) (PBT/Networth)		0.88	0.02	0.07
Debt Equity Ratio (Total Liability/Networth)		3.69	2.61	3.07
Current Ratio (Current Asset/Current Liability)		1.79	2.18	2.09

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF BUSINESS:

Increase in the turnover and registering profit after tax of Rs.5.769 millions which was made possible through inserting capital equipment last year and better production planning. Directors are exploring various other opportunities to further improve the working results during the current year.

FORM 8:

Corporate identity number of the company	U24231GJ1993PTC020592
Name of the company	Kemit Chemicals Private Limited
Address of the registered office or of the principal place of business in India of the company	41 Empire Tower Panchvati, C G Road Near Associated Petrol Pump Ellisbridge, Ahmedabad, Gujarat, India
This form is for	Modification Charge
Type of charge	Immovable Property Any interest in immovable property
Particular of charge holder	Bank of India Ahmedabad Main Brach, Mezzanine Floor, BOI Building Bhadra, Ahmedabad – 380001, Gujarat, India ahmedabad.ahmedabad@bankofindia.co.in
Nature of instrument creating charge	Supplementary Mem. of Title Deeds for extension of equitable mortgage charge on immovable property of the company by const del of title deeds on 18.06.2009 to secure the modified, revised and increased fund based max facilities of Rs.12.675 Millions registered with sub registrar ahd-4 paldi on 19.06.2009 at Sr. No 5265 having 14 (fourteen) pages.
Date of instrument Creating the charge	18.06.2009
Amount secured by the charge	Rs.12.675 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: CC STK, CC BK DTS, Term Loan - 0.50% over BPLR presently 12.50% p. A. on monthly rest basis or such other rate as may be prescribed by the bank from time to time. EPC - 9.25% at present subject to changes as advised by the bank FBP / FBN - as per Bank's / FEDAI/ RBI rules, subject to changes from time to time. Terms of repayment: CC STK - On Demand/ Annual Review CC BK DTS - On Demand/ Annual Review EPC - On Demand/ Annual Review FBP / FBN - On Demand/ Annual Review Term Loan -Repayable in 60 EMI of Rs.24,000/- W. E. F. 31.03.2007 Margin: CC STK - 25% CC BK DTS - 40% EPC - 10% FBP / FBN - NIL Term Loan - 25% Extent and Operation of the charge: First and Exclusive Equitable mortgaged Ch on all immovable property i.e. Land and Building, sheds structures and fixed plant to the earth to further secure the fund based modified and increased credit facilities of Rs.12.675 Millions along with Interests, Penal Interests, liquidated damages, costs, charges and commission and all other amt due to the bank from time to time of what so ever nature.
Particulars of the property charged	All that Piece and Parcel of Lease Hold Land bearing Survey No. 151 and Plot No.78/12 Adm. 827.64 sq mtrs situated at GIDC, Phase i, Vatva Industrial Estate, Mouje Vinzol Village, Ta Dascroi, Ahd with all Building, Const, Sheds, Struc. and Fixed Plant to the earth or permanently fastned to earth both Present and Future.
Particulars of the present modification	Bank Granted Addl Working Cap Limits of Rs.6.000 Millions and realigned term loan and thereby modifying, revising and increasing max aggregate limits from Rs.6.900 Millions to Rs.12.675 Millions. Thus Equitable Mortgage charge on all Immovable Properties of the company being land, bldg, sheds, structures and Fixed Plant and Machineries, has been extended and will operate for Rs.12.675 Millions W. E. F. 18.06.2009.

FIXED ASSETS:

· Leasehold Land

· Building

· Electric Installation

· Furniture and Fixture

· Plant and Machinery and equipments

· Motor Vehicles

· Computers

WEBSITE DETAILS:

PROFILE:

Subject began its manufacturing operations in 1978 with Textile Chemicals range. The company focussed mainly on new Research and Development activities to expand product range and to cater to specific customer demands. The company gained a reputation of being a quality supplier in no time.

After having a strong presence in textile industry, the company continued to expand its product range for other industries. Subject is a progressive company having a very strong presence in Leather, Textile, Paper, Construction, Pesticides Formulations and Speciality Chemicals sectors.

With more than 30 years of manufacturing experience, company is manned by strong technocrats who have sufficient experience to serve customers world over. Company has its presence in more than 25 countries world wide with its wide variety of products.

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.45.21
UK Pound	1	Rs.74.30
Euro	1	Rs.64.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		34

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.