MIRA INFORM REPORT

Report Date :

09.11.2011

IDENTIFICATION DETAILS

Name :	LALITHA CHEM INDUSTRIES PRIVATE LIMITED
Registered Office :	G-42, ‘D’ Wing, Dewan Apartments No.2, Navghar Vasai (East), Thane – 401 210, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	11.12.1990
Com. Reg. No.:	11-059381
Capital Investment / Paid-up Capital :	Rs.38.400 millions
CIN No.: [Company Identification No.]	U24100MH1990PTC059381
TAN No.: [Tax Deduction & Collection Account No.]	MUML01728G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of PVC Compound, Stabilisers.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 606000
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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	Ms. Harshala
Designation :	Import Manager
Contact No.:	91-250-2392429

LOCATIONS

Registered Office :	G-42, ‘D’ Wing, Dewan Apartments No.2, Navghar Vasai (East), Thane – 401 210, Maharashtra, India
Tel. No.:	91-250-2392429/ 2390625/ 2392428
Mobile No.:	91-9820054643 (Mr. Subray Hosmane)
Fax No.:	91-250-2390117
E-Mail :	lalithachemind@gmail.com subray@vsnl.com
Website :	http://www.subray.com
Factory :	Plot No.32P, Nanji Industrial Estate, Kharar Pada, Silvassa, Dadra and Nagar Haveli, India

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Subray Sadashiv Hosmane

Designation :

Director

Date of Appointment :

19.03.1993

DIN No.:

00047127

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24100MH1990PTC059381	LALITHA CHEM INDUSTRIES PRIVATE LIMITED	Director	19-03-93	19-03-93	Active	NO
2	U24100MH1988PTC050207	SUBRAY CATALCHEM PRIVATE LIMITED	Director	21-09-94	21-09-94	Active	NO

Name :

Mrs. Veena Subray Hosmane

Designation :

Director

Address :

Bungalow No.1, Suvilas, Dewan and Shah Housing, Enclave Ambadi Road, Vasai Road, Vasai (West), Thane - 401 202 Maharashtra, India

Date of Birth/Age :

26.07.1963

Date of Appointment :

25.03.2009

DIN No.:

00047190

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	U24100MH1988PTC050207	SUBRAY CATALCHEM PRIVATE LIMITED	Director	20-01-89	20-01-89	-	Active	NO
2	U25201MH2001PTC132987	IMPERIAL VINYL PRIVATE LIMITED	Director	07-08-01	07-08-01	05-10-08	Active	YES
3	U93090MH2007PTC167169	MODSTAT ANALYSTS PRIVATE LIMITED.	Director	22-01-07	22-01-07	-	Strike off	NO
4	U24100MH1990PTC059381	LALITHA CHEM INDUSTRIES PRIVATE LIMITED	Director	25-03-09	25-03-09	-	Active	NO

Name :

Mrs. Lalitha Sadashiv Hosmane

Designation :

Director

Date of Appointment :

11.12.1993

DIN No.:

00047270

KEY EXECUTIVES

Name :	Ms. Harshala
Designation :	Import Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Lalitha Hosmane	1890000
Veena Hosmane	458200
Subray Hosmane	1353200
Subra Catal Chem Private Limited	60000
Gajanan Bhat	17200
Lalitha Hosmane Jointly Subray Hosmane	60000
Ambalal Patel	200
Navin A. Patel	200
Geeta Sudhakar	1000
Total	3840000

(AS ON 30.09.2011)

Equity Shares Break – Up

Category	Percentage
Bodies corporate	1.56
Directors or relatives of directors	98.44
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of PVC Compound, Stabilisers.
Products :	v PVC Stabilisers v PVC Compounds v Master Batches v PVC Plasticisers v Metallic Stearates v One Pack Stabiliser for Pipes v Cables v Injection Moulding v Organo Tin Stabilisers v Mixed Metal Stabilisers v Expoxidised Oils v Organo Phosphites v Lubricants, etc.
Exports :
Products :	PVC Compound, PVC Stabilisers
Countries :	Saudi Arabia
Imports :
Products :	PVC Compound, PVC Stabilisers
Countries :	China, Malaysia, Singapore
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2009)

Particulars	31.03.2009
Installed Capacity (as certified by a director based on single basis)
PVC Stabiliser Metalic Stearates, Plasticisers and PVC Compound	9300 MT per year

Particulars	Unit	Actual Production
1) PVC Stabilisers and Metallic Stearates	Kg.	17761399
ii) Plasticisers	Kg.	6324723
iii) Fatty Acid, Waxes and Others	Kg.	1214614

GENERAL INFORMATION

Customers :

Wholesalers

No. of Employees :

25 (Approximately)

Bankers :

v State Bank of India, Bhayander (West)

v ICICI Bank

v Bassein Catholic Co-Operative Bank Limited

v Syndicate Bank,

Valiv Naka, Jayesh Building, Valiv, Vasai Road East – 401208, Maharashtra, India

v Bank of India,

Bhayandar Branch, Bharati Apartments, 1^st Floor, Balaram Patil Road, Bhayandar (East), District Thane, Bhayandar – 401105, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
TERM LOANS
ICICI Bank (Vehicle Loan) (Secured Against Vehicle purchased under the loan)	0.000	0.473
ICICI Bank (Property Loan Account) (Secured Against Property Purchase under loan)	1.403	0.000
Bassein Catholic Bank (Vehicle Loan) (Secured Against Vehicle purchased under the loan)	1.354	1.402
Bassein Catholic Co-Operative Bank Limited (Secured Against Property Purchase under loan)	0.750	1.671
Bassein Catholic Co-Operative Bank Limited (Secured Against Car purchased under the loan)	0.545	2.956
WORKING CAPITAL LOANS
Syndicate Bank Valiv Branch: Overdraft A/c (Secured against hypothecation Stock in Trade, Books Debts and guaranteed by Directors and Second charge on Fixed Assets at Tarapur Factory, Two flats and some of the F.D with the Bank)	28.020	92.203
Bank of India CC A/C	35.004	24.664
Foreign Currency Loan Syndicate Bank	50.000	0.000
ECB (Guaranteed by Bank of India)	43.672	35.083
ECB (Guaranteed by Syndicate Bank) (ECB facility for Bills payable for import of goods secured against the Letter of Credit opened by Syndicate Bank)	72.680	70.340
LESS-CASH MARGIN
Bank of India VCC	22.500	10.326
Syndicate Bank VCC	23.838	24.492
Syndicate Bank Valiv CA	15.009	10.011
Syndicate Bank Eefc	12.034	2.511
Bank of India (EEFC)	34.438	2.355
Total	125.609	179.097

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Relatives and Associates	1.916	5.733
Deferred Sales Tax	9.878	9.878
Total	11.794	15.611

Banking Relations :	--
Auditors :
Name :	Keshav Chaubey and Company Chartered Accountants
Address :	124/2, Ostval Ornate, Jesal Park, Near Jain Derasar, Bhayandar (East), Thane – 401 105, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAPC9359C

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3840000	Equity Shares	Rs.10/- each	Rs.38.400 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		38.400	19.200	19.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		88.355	91.898	86.796
4] Loan from Directors		24.699	31.502	24.032
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		151.454	142.600	130.028
LOAN FUNDS
1] Secured Loans		125.609	179.097	65.307
2] Unsecured Loans		11.794	15.611	21.232
TOTAL BORROWING		137.403	194.708	86.539
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		288.857	337.308	216.567
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		49.070	45.471	46.714
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		20.965	5.965	5.965
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	160.593	197.140	150.721
	Sundry Debtors	172.485	148.219	166.361
	Cash & Bank Balances	1.282	1.198	0.597
	Other Current Assets	5.569	4.168	3.634
	Loans & Advances	56.858	73.559	56.399
Total Current Assets		396.787	424.284	377.712
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	174.287	135.065	208.644
	Other Current Liabilities	3.678	3.347	5.180
	Provisions	0.000	0.000	0.000
Total Current Liabilities		177.965	138.412	213.824
Net Current Assets		218.822	285.872	163.888
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		288.857	337.308	216.567

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	1075.999	944.351	836.519
		Other Income	3.714	3.486	4.006
		TOTAL (A)	1079.713	947.837	840.525
Less	EXPENSES
		Raw Material Consumed	841.452	699.868	632.921
		Other Manufacturing Expenses	34.431	33.710	33.212
		Excise Duty & Educational Cess	85.947	88.222	95.280
		Increase/Decrease in stocks	(5.093)	23.493	(27.733)
		Administrative, Selling & Others Expenses	81.683	64.501	55.026
		TOTAL (B)	1038.420	909.794	788.706
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		41.293	38.043	51.819
Less	INTEREST (D)		15.584	19.618	18.955
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		25.709	18.425	32.864
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.623	5.741	6.352
	PROFIT BEFORE TAX (E-F) (G)		20.086	12.684	26.512
Less	TAX (H)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-H) (I)		20.086	12.684	26.512
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		86.311	81.094	61.530
	Less: Utilised For Bonus Share		19.200	--	--
	Add : Income Tax adjustment of earlier Year		(4.556)	(7.467)	(6.948)
	BALANCE CARRIED TO THE B/S		82.641	86.311	81.094
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	NA	177.529	170.929
	TOTAL EARNINGS		NA	177.529	170.929
	IMPORT VALUE		NA	206.523	165.483
	Earnings Per Share (Rs.)		5.23	NA	NA

Particulars	31.03.2011 (Approximately)
Sales Turnover	2350.000

Expected Sales (2011-2012): Rs.2500.000 millions

The above information has been parted by Ms. Harshala (Import Manager).

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.86	1.34	3.15
Net Profit Margin (PBT/Sales)	(%)	1.87	1.34	3.17
Return on Total Assets (PBT/Total Assets}	(%)	4.51	2.70	6.25
Return on Investment (ROI) (PBT/Networth)		0.13	0.09	0.20
Debt Equity Ratio (Total Liability/Networth)		2.08	2.34	2.31
Current Ratio (Current Asset/Current Liability)		2.23	3.07	1.77

LOCAL AGENCY FURTHER INFORMATION

SALES:

The sales for the year 2009-10 are Rs.1075.999 millions as against Rs.944.351 millions in previous year including export sales of Rs.150.945 millions, against last year’s export sales of Rs.177.529 millions.

The growth in sales during the year 2009-10 is approximately 14% compared to the previous year.

FINANCE:

They have achieved substantial growth in net worth and export turn over during the year and they have managed their finance according to the need. The company has managed its finance so well that the recognition and registration received from CRISIL during the last year still continues.

FUTURE PROSPECTS:

As the market is continuously growing, the demand for their products will remain very high. They may achieve tremendous growth in domestics as well as export sales.

They are planning to start manufacturing of CPVC Resin. CPVC Resin is a monopoly item worldwide, which is manufactured only in Japan and China. The application of this product is in the PVC industry to which they have been supplying regularly since the past 25 years. They are currently importing this product and marketing the end- product manufactured from it locally as well as exporting to other countries since past 2-3 years. Now they intend to go in for backward integration and start manufacturing CPVC Resin.

FORM 8:

Corporate identity number of the company	U24100MH1990PTC059381
Name of the company	LALITHA CHEM INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	G-42, ‘D’ Wing, Dewan Apartments No.2, Navghar Vasai (East), Thane – 401 210, Maharashtra, India E-Mail: subray@vsnl.com
This form is for	Creation of charge
Type of charge	Others (New Ford-Endeavour car financed by the Bank.)
Particular of charge holder	· Bank of India Bhayandar Branch, Bharati Apartments, 1^st Floor, Balaram Patil Road, Bhayandar (East), District Thane, Bhayandar – 401 105, Maharashtra, India E-Mail: Bhayandar.RaigadThane@bankofindia.co.in
Nature of description of the instrument creating or modifying the charge	Agreement of Hypothecation for consumer loan in respect of vehicles.
Date of instrument Creating the charge	20.11.2010
Amount secured by the charge	Rs.2.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 3.50% above Base Rate with a minimum of 12% p.a. or at such other rate/s of interest as may be notified by the Bank from time to time. Terms of Repayment: 60 EMI's of Rs.0.044 million each. First installment payable on 20th day of December 2010 and the subsequent installments being payable on the 20^th day of each succeeding month until the entire loan is repaid. Margin: As specified by the Bank from time to time. Extent and Operation of the charge: Hypothecation by way of first charge as security for the loan and also for all indebtedness or liabilities of the Borrower to the Bank together with interest, commission, costs, charges and expenses payable or incurred by the Bank.
Short particulars of the property charged	Hypothecation of New FORD-ENDEAVOUR 4*4-A/T (Hurricane) Car.

FIXED ASSETS:

v Land

v Factory Building

v Plant and Machinery

v Pipe Fittings and Valves

v Storage Tank

v Fire Extinguisher

v Bore Well

v Electrical Fittings

v Furniture and Fixture

v Laboratory/Testing Equipment

v Office Equipment

v Office Premises (Siddhi)

v Office Premises (Prabhu)

v Computer Systems

v Delivery Van

v Air Conditioners

v Transformer

v Bicycle

v Canteen Equipment

v Motor Car

v Shop Premises (Pramukh)

v Scooter

v Shop Premises (E-61)

v Shop Premises (E-30)

v Weighing Bridge

v Weighing Scale

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	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	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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.