MIRA INFORM REPORT

Report Date :

09.11.2011

IDENTIFICATION DETAILS

Name :	ENGINEERING AND CHEMICAL (INDIA) PRIVATE LIMITED
Registered Office :	206, Peninsula Centre, S. S. Rao Road, Parel, Mumbai – 400012, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.03.2003
Com. Reg. No.:	11-139423
Capital Investment / Paid-up Capital :	Rs.2.000 Millions
CIN No.: [Company Identification No.]	U51909MH2003PTC139423
TAN No.: [Tax Deduction & Collection Account No.]	MUME04549G
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Chemical.
No. of Employees :	24 (Approximately) (In Office + In Factory)

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 296000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
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 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.

INFORMATION PARTED BY

Name :	Mr. Anantrai Keshavji Kamdar
Designation :	Director
Contact No.:	91-9594083515
Date :	08.11.2011

LOCATIONS

Registered Office :	206, Peninsula Centre, S. S. Rao Road, Parel, Mumbai – 400012, Maharashtra, India
Tel. No.:	91-22-66608999
Mobile No.:	91-9594083515 (Mr. Anantrai Keshavji Kamdar)
Fax No.:	91-22-66603999
E-Mail :	info@engichem.co.in
Area :	2300 Sq. Ft.
Location :	Owned

DIRECTORS

As on 08.09.2011

Name :	Mr. Kalpesh Anant Dhami
Designation :	Director
Address :	10 Sadhana, 346 Telang Cross Road No.1, Matunga, Mumbai – 400 019, Maharashtra, India
Date of Birth/Age :	20.10.1970
Date of Appointment :	03.03.2003
DIN No.:	00240494

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51909MH2003PTC139423	Engineering and Chemical (India) Private Limited	Director	03-03-03	03-03-03	-	Active	NO
2	U24100MH2004PTC145698	Engichem Specialities Private Limited	Director	15-04-04	15-04-04	-	Active	NO

Name :	Mr. Anant Jayantilal Dhami
Designation :	Director
Address :	10, Sadhana, 346, Telang Cross Road No.1, Matunga, Mumbai – 400 019, Maharashtra, India
Date of Birth/Age :	17.07.1942
Date of Appointment :	03.03.2003
DIN No.:	00240553

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U51909MH2003PTC139423	Engineering and Chemical (India) Private Limited	Director	03-03-03	03-03-03	-	Active	NO
2	U24100MH2004PTC145698	Engichem Specialities Private Limited	Director	15-04-04	15-04-04	-	Active	NO

Name :	Mr. Anantrai Keshavji Kamdar
Designation :	Director
Address :	110/2, Shakuntal, Sion (West), Mumbai – 400 022, Maharashtra, India
Date of Birth/Age :	10.11.1943
Date of Appointment :	01.04.2007
DIN No.:	00239909

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24231GJ1987PTC010007	Rosalee Colours Private Limited	Director	22-09-87	22-09-87	-	Active	NO
2	U67120GJ1995PTC025494	Finco Trade-Link Private Limited	Managing director	18-04-95	18-04-95	-	Active	NO
3	U51900MH1988PTC045956	Alchemie Agencies Private Limited	Director	29-12-01	29-12-01	-	Active	NO
4	U24220MH2003PTC138969	Aroma Chemical Agencies (India) Private Limited	Director	03-02-03	03-02-03	-	Active	NO
5	U51909MH2003PTC139423	Engineering and Chemical (India) Private Limited	Director	01-04-07	01-04-07	-	Active	NO
6	U63040MH2007PTC176214	Grin Travels Private Limited	Director	27-11-07	27-11-07	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 08.09.2011

Names of Shareholders	No. of Shares
Anant Jayantilal Dhami	37780
Kalpesh Anant Dhami	143600
Bhardra Anant Dhami	10000
Anant Jayantilal Dhami (HUF)	1000
Leena Kalpesh Dhami	5000
Priyal Kalpesh Dhami	100
Rasiklal G. Shah (HUF)	10
K. A. Dhami (HUF)	10
Anantrai Keshavji Kamdar	2500
	0
Total	200000

Equity Share Break up (Percentage of Total Equity)

As on 08.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader and Importer of Chemical.
Products :	· Aliphatic Polyisocynates · Aluminium Hydroxide · Aluminum Pigments · Aromatic Polyisocynates · Chemicals · Iron Oxide Pigments · Metal Complex Dyes · Synthetic Silicates
Imports :
Products :	Chemical
Countries :	USA Germany Taiwan
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

• BASF, Germany
• HALOX, USA
• Lytec, Northland

Customers :

End Users

• Asian Paints Limited
• Burger
• Micro Limited

No. of Employees :

24 (Approximately) (In Office + In Factory)

Bankers :

• CITI Bank N. A., Trent House, 2^nd Floor, G Block, Plot No.C60, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India
• HDFC Bank Limited
• Union Bank of India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loan From Banks
CITI Bank – Buyers Credit A/c (On security of Company’s Assets)	18.220	7.746
CITI Bank – Term Loan (On Security of Company’s Assets)	23.333	0.000
Total	41.553	7.746

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loan From Directors	20.014	10.995
Loan From shareholders and Relatives	15.210	19.289
Inter Corporate Deposit	2.250	0.000
Total	37.474	30.284

Banking Relations :	--
Auditors :
Name :	Kirti H. Doshi and Company Chartered Accountants
Address :	Nalani Building, 1^st Floor No.10, Bhavani Shankar Road, Dadar (West), Mumbai – 400 028, Maharashtra, India
Tel. No.:	91-22-24362894 / 23434211 / 23434138
PAN.:	AABOD7084Q
Associates / Subsidiaries :	Engichem Specialities Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.10/- each	Rs.2.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		2.000	2.000	2.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		72.049	46.478	35.785
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		74.049	48.478	37.785
LOAN FUNDS
1] Secured Loans		41.553	7.746	7.622
2] Unsecured Loans		37.474	30.284	28.309
TOTAL BORROWING		79.027	38.030	35.931
DEFERRED TAX LIABILITIES		6.300	0.336	0.307
TOTAL		159.376	86.844	74.023
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		56.895	11.349	10.805
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	50.591	35.436	26.590
	Sundry Debtors	51.753	63.620	41.082
	Cash & Bank Balances	2.454	0.371	0.398
	Other Current Assets	5.153	0.640	1.377
	Loans & Advances	21.094	13.450	8.487
Total Current Assets		131.045	113.517	77.934
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.810	22.364	4.838
	Other Current Liabilities	0.777	0.622	1.030
	Provisions	14.977	15.036	8.848
Total Current Liabilities		28.564	38.022	14.716
Net Current Assets		102.481	75.495	63.218
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		159.376	86.844	74.023

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	325.606	300.111	204.304
		Other Income	21.704	7.086	2.975
		Increase / (Decrease) In stock	15.156	8.846	(11.230)
		TOTAL	362.466	316.043	196.049
Less	EXPENSES
		Office Expenses	322.632	299.119	183.564
		Administrative Expenses
		Advertising Expenses
		TOTAL	322.632	299.119	183.564
	PROFIT BEFORE TAX		39.834	16.924	12.485
Less	TAX		14.264	6.230	4.538
	PROFIT AFTER TAX		25.570	10.694	7.947
	Earnings Per Share (Rs.)		127.850	53.47	39.73

Expected Sales (2011-2012) : Rs.380.000 Millions

The above information has been parted by Mr. Anantrai Kamdar.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.05	3.38	4.05
Net Profit Margin (PBT/Sales)	(%)	12.23	5.64	6.11
Return on Total Assets (PBT/Total Assets}	(%)	21.20	13.55	14.07
Return on Investment (ROI) (PBT/Networth)		0.54	0.35	0.33
Debt Equity Ratio (Total Liability/Networth)		1.45	1.57	1.34
Current Ratio (Current Asset/Current Liability)		4.59	2.99	5.30

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
- For Goods	11.988	21.602	4.296
- For Expenses	0.822	0.762	0.542
Total	12.810	22.364	4.838

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	YES
2) Locality of the firm	YES
3) Constitutions of the firm	YES
4) Premises details	YES
5) Type of Business	YES
6) Line of Business•	YES
7) Promoter’s background	--
8) No. of employees	YES
9) Name of person contacted	YES
10) Designation of contact person	YES
11) Turnover of firm for last three years	YES
12) Profitability for last three years	YES
13) Reasons for variation <> 20%	NO
14) Estimation for coming financial year	YES
15) Capital in the business	YES
16) Details of sister concerns	YES
17) Major suppliers	YES
18) Major customers	YES
19) Payments terms	YES
20) Export / Import details (if applicable)	YES
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	YES
24) Banking facility details	NO
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	NO
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

OPERATIONS AND OUTLOOK:

During the year the company made a sales of Rs.325.606 Millions (Previous year – Rs.300.111 Millions). After offsetting the expenses the company made during the year an profit of Rs.39.834 Millions (Before Tax) (Previous year – 16.924 Millions). The directors are optimistic about the future of the company.

FORM 8

Corporate identity number of the company	U51909MH2003PTC139423
Name of the company	ENGINEERING AND CHEMICAL (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	206, Peninsula Centre, S. S. Rao Road, Parel, Mumbai – 400012, Maharashtra, India E-Mail : info@engichem.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80009727
Type of charge	Immovable property
Particular of charge holder	CITI Bank N. A., Trent House, 2nd Floor, G Block, Plot No.C60, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India
Nature of instrument creating charge	Modification to Memorandum of Entry
Date of instrument Creating the charge	03.05.2011
Amount secured by the charge	Rs.64.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest to be charged at such rates as may be determined by the Bank from time to time. Terms of repayment On Demand Margin As may be stipulated by the Bank from time to time. Extent and operation of the charge The Company accorded and gave oral consent to Bank to continue to hold and retain the title deeds (by way of Constructive delivery) in respect of its immovable properties as security for repayment of credit facilities of Rs.64.000 Millions with interest, liquidated damages, costs, charges and expenses and all other money whatsoever due and payable thereon.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Equitable Mortgage on property including land and building located at Unit No.206 and 206A, Peninsula Center, Parel, Mumbai, Maharashtra, India
Date of instrument modifying the charge	14.12.2010
Particulars of the present modification	The Mortgage/charge shall now stand increased upto Rs.64.000 Millions against the security of Unit No.206 and 206A, Peninsula Center, Parel, Mumbai, Maharashtra, India in favour of the Bank.

FIXED ASSETS:

· Air conditioner

· Godown Premises

· Computer and Computer Software

· Furniture and Fixtures

· Motor Cars

· Mobile Instruments

· Office Premises

· Office Equipments

· Telephone System

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.49.38
UK Pound	1	Rs.79.20
Euro	1	Rs.67.84

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--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.