MIRA INFORM REPORT

Report Date :

23.11.2011

IDENTIFICATION DETAILS

Name :	SALTS AND CHEMICALS PRIVATE LIMITED
Registered Office :	P.O. Sugandhachuchra Hooghly – 712102, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	07.04.1994
Com. Reg. No.:	21-62873
Capital Investment / Paid-up Capital :	Rs.0.500 Million
CIN No.: [Company Identification No.]	U24297WB1994PTC062873
TAN No.: [Tax Deduction & Collection Account No.]	CALS17110C
PAN No.: [Permanent Account No.]	AAICS6135M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Industrial Chemicals.
No. of Employees :	50 (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 140000
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 condition.

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 :	Mr. K. Sarkar
Designation :	Marketing Manager
Contact No.:	91-9433464149
Date :	22.11.2011

LOCATIONS

Registered Office / Factory:	P.O. Sugandhachuchra Hooghly – 712102, West Bengal, India
Tel. No.:	91-33-22137490 / 26861091 / 2113
Mobile No.:	91-9433464149 (Mr. Sarkan)
Fax No.:	91-33-22137294
E-Mail :	sharmasmitacs@gmail.com chemi_cals@vsnl.net crosscem@vsnl.net
Website :	http://www.saltsandchemicals.com
Area :	2100 Sq. Ft.
Location :	Owned
Sales Office :	Centre Point, 21, Hemant Basu Sarani, Suite No.320, 3^rd Floor, Kolkata-700001, West Bengal, India
Tel. No.:	91-33-22137490 / 91/ 22138649 / 22137294/ 26861091
Fax No.:	91-33-22137294
Email:	chemi_cals@vsnl.net info@saltsandchemicals.com
Area :	100 Sq. Ft.
Location :	Owned

DIRECTORS

AS ON 29.09.2011

Name :	Mr. Sumit Kumar Biswas
Designation :	Managing Director
Address :	27/13, N.K Banerjee Street, Rishra, Hooghly-712248, West Bengal, India
Date of Birth/Age :	07.11.1952
Qualification :	Engineer
Date of Appointment :	14.04.1944
DIN No.:	00545377
Name :	Mrs. Jaysri Biswas
Designation :	Director
Address :	27/13, N.K Banerjee Street, Rishra, Hooghly-712248, West Bengal, India
Date of Birth/Age :	19.11.1956
Qualification :	BSC
Date of Appointment :	07.04.1994
Din No.:	00601775
Name :	Mr. Debdeep Biswas
Designation :	Director
Address :	27/13, N.K Banerjee Street, Rishra, Hooghly-712248, West Bengal, India
Date of Birth/Age :	22.03.1982
Qualification :	Engineer
Date of Appointment :	01.04.2000
Din No.:	00545216
Name :	Mr. Debarati Biswas
Designation :	Director
Address :	27/13, N.K Banerjee Street, Rishra, Hooghly-712248, West Bengal, India
Date of Birth/Age :	21.04.1984
Qualification :	MSC
Date of Appointment :	01.05.2002
Din No.:	00603622

KEY EXECUTIVES

Name :	Mr. K. Sarkar
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2011)

Names of Shareholders	No. of Shares
Sumit Kumar Biswas	22520
Jaysri Biswas	7510
Debdeep Niswas	7510
Debarati Biswas	5000
Kajal Chakraborty	2000
Arati Naskar	2000
Minati Chowdhuri	3000
Chinmoyee Majumder	500
Total	50040

(AS ON 30.09.2011)

Equity Share Breakup

Category	Percentage
Directors or relatives of directors	85.01
Other top fifty shareholders	14.99
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Industrial Chemicals.

Products :

Product Description	Items Code
Metal Treatment Chemicals	320890
Heat Treatment Chemicals	283500
Phosphates	283529

Exports :

Products :

Chemicals

Countries :

· Africa

· Bangladesh

· Pakistan

Imports :

Products :

Fhuric Acide

Countries :

· China

· Curia

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Chemlub Group	MT	216	3275
Phosphate Salts	MT	204	79802
Metal Treatment Chemicals	MT/Ltr.	942	1219115 Kg
Heat Treatment Chemicals	MT	318	98201
Water Treatment Chemicals	MT	120	19325
Electroplating Salts	MT	60	410

NOTE:

· Installed capacity is as per a certificate issued by the management and is not verified by the auditors being a technical matter.

· Licensed capacity has not been disclosed as the company products are exempt from licensing agreement.

GENERAL INFORMATION

Customers :

End Users

· Ordins Factories

· Rotelar Steel Plants

· Chinetic Engineering’s

· Telka

No. of Employees :

50 (Approximately)

Bankers :

· State Bank of India,

Manicktala Branch, 294/2/1, A.P.C Road, Kolkata-700009, West Bengal, India

· HDFC Bank,

Hooghly, Kolkata, India

Facilities :

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From directors and share holders	0.030	0.030
Total	0.030	0.030

Banking Relations :	--
Auditors :
Name :	S. K. Gangoli Chartered Accountant
Address :	Mirza Ghalib Street, Kolkata – 700021, West Bengal, India
PAN No.:	AACFG0979N

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50040	Equity Shares	Rs.10/- each	Rs.0.500 Million

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		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		33.465	27.057	20.189
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		33.965	27.557	20.689
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.030	0.030	0.030
TOTAL BORROWING		0.030	0.030	0.030
DEFERRED TAX LIABILITIES		0.043	0.000	0.000
TOTAL		34.038	27.587	20.719
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.323	4.225	3.908
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.338	0.338	0.338
DEFERREX TAX ASSETS		0.000	0.000	0.008
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.356	4.116	2.719
	Sundry Debtors	18.726	13.624	9.243
	Cash & Bank Balances	10.056	10.511	8.466
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.010	1.785	1.251
Total Current Assets		37.148	30.036	21.679
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	0.651	0.997	2.278
	Other Current Liabilities	6.947	4.612	2.723
	Provisions	0.173	1.403	0.213
Total Current Liabilities		7.771	7.012	5.214
Net Current Assets		29.377	23.024	16.465
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		34.038	27.587	20.719

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	69.058	59.082	39.792
		Other Income	2.222	1.885	0.871
		TOTAL (A)	71.280	60.967	40.663
Less	EXPENSES
		Raw Material and Components Consumed	41.412	34.712	25.236
		Operating Expenses	8.019	6.073	4.091
		Administrative and Selling	11.254	8.868	6.639
		TOTAL (B)	60.685	49.653	35.966
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		10.595	11.314	4.697
Less	FINANCIAL EXPENSES (D)		0.074	0.040	0.028
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.521	11.274	4.669
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.680	0.625	0.652
	PROFIT BEFORE TAX (E-F) (G)		9.841	10.649	4.017
Less	TAX (H)		3.143	3.608	1.523
	PROFIT AFTER TAX (G-H) (I)		6.698	7.041	2.494
	Prior Period Income Tax		0.116	0.000	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.557	3.189	2.845
Less	APPROPRIATIONS
		Proposed Dividend	0.150	0.150	0.130
		Tax on Dividend	0.023	0.023	0.020
		General Reserve	6.000	6.500	2.000
	BALANCE CARRIED TO THE B/S		3.966	3.557	3.189
	EARNINGS IN FOREIGN CURRENCY		9.370	4.481	1.976
	Earnings Per Share (Rs.)		131.52	140.71	49.84

Expected Sales (2011-12): Rs.100.000 Millions

The above information has been parted by Mr. K. Sarkar.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	9.40	11.55	6.13
Net Profit Margin (PBT/Sales)	(%)	14.25	18.02	10.09
Return on Total Assets (PBT/Total Assets}	(%)	23.73	31.08	15.70
Return on Investment (ROI) (PBT/Networth)		0.29	0.39	0.19
Debt Equity Ratio (Total Liability/Networth)		0.23	0.26	0.25
Current Ratio (Current Asset/Current Liability)		4.78	4.28	4.16

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	--------
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	--------
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	--------
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	--------
Litigations that the firm/ Promoters Involved in	--------
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	--------
Buyer visit details	--------
Financials, if provided	No
Incorporation details is applicable	--------
Last Accounts filed at ROC	--------
Major Shareholders, if available	--------

BUSINESS PERFORMANCE:

The total Sales during of the company during the year has increased marginally compared to that for previous year, the profit came down by about 8% in the face of stiff competition and uncertain market economy.

The Company looked for expansion of market all over India and initiated exploration of market abroad.

However, the company engaging in new customers and the control on continuing previous growth.

CONTINGENT LIABILITIES ARE IN RESPECT OF: (AS ON 31.03.2011)

Sales tax against which appeal is pending – Rs.0.017 Million

TRADE REFERENCES:

· Ordins Factories

· Rotelar Steel Plants

· Chinetic Engineering’s

· Telka

Bankers Charges Report as per Registry

Name of the company	SALTS AND CHEMICALS PRIVATE LIMITED
Presented By	S.D. Basu, Company Secretary in WIP
1) Date and description of instrument creating the change	Hypothecation of debts and assets dated 02.06.2000
2) Amount secured by the charge/amount owing on the securities of charge	Rs.0.500 Million
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All the borrowers’ present and future book debts outstanding moneys receivable claims bills contracts engagements securities investments rights and assets by way of first charge.
4) Gist of the terms and conditions and extent and operation of the charge.	The borrower shall not do or allow anything which may prejudice the security and shall comply with the terms and conditions of the agreement. Interest @ 13.77%p.a. with quarterly rests and / or as may be current from time to time for the credit facility according to banking norms and RBI guidelines.
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Manicktala Branch, 294/2/1, A.P.C Road, Kolkata-700009, West Bengal, India
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

FIXED ASSETS

· Building

· Plant and Machinery

· Furniture

· Vehicles

· Electricals Installation

· Computer

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.52.70
UK Pound	1	Rs.82.44
Euro	1	Rs.71.08

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--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.