MIRA INFORM REPORT

Report Date :

14.10.2011

IDENTIFICATION DETAILS

Name :	TRANSPEK-SILOX INDUSTRY LIMITED
Formerly Known As :	TRANSPEK METALS AND OXIDES LIMITED
Registered Office :	Kalali Road, Atladra, Vadodara – 390 012, Gujarat
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	29.03.1996
Com. Reg. No.:	04-29188
Capital Investment / Paid-up Capital :	Rs.120.610 millions
CIN No.: [Company Identification No.]	U28999GJ1996PLC029188
TAN No.: [Tax Deduction & Collection Account No.]	BRDT00555C
Legal Form :	A Closely held public limited liability company
Line of Business :	Manufacturer of Zinc and Sulphur based Chemicals
No. of Employees :	750 Approximately (30 in Office and 720 in Factory)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 5700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. The company is doing well. General financial position is good. 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.

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. Ashish Tiwari
Designation :	Manager

LOCATIONS

Registered Office/ Warehouse: :	Kalali Road, Atladra, Vadodara – 390 012, Gujarat, India
Tel. No.:	91-265-2680401-2-3-4-5
Fax No.:	91-265-2680406 / 2680407 / 2680062
E-Mail :	info@transpek-silox.com dsmahajani@tsilbrd.com rajeevm@tsilbrd.com
Website :	http://www.transpek-silox.com
Location :	Owned
Factory :	Located at · Atladra · Ekalbara · Bhiwandi · Silvassa

DIRECTORS

As on 18.03.2010

Name :	Mr. Ashwin Champraj Shroff
Designation :	Chairman
Address :	B-15, Vasanta Theosophical Society, Juhu Road, Juhu, Mumbai – 400 049, Maharashtra, India
Date of Birth/Age :	22.01.1945
Date of Appointment :	18.01.2001
DIN No.:	00019952

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	L24200MH1960PLC011807	Excel Industries Limited	Managing director	01-02-10	15-07-75	Active	NO
2	L23205GJ1965PLC001343	Transpek Industry Limited	Director	02-05-80	02-05-80	Active	NO
3	U65990MH1983PLC030597	Kamaljyot Investments Limited	Director	09-11-84	09-11-84	Active	NO
4	U24110MH1991PTC063399	Phthalo Colours And Chemicals (India) Limited	Director	23-07-92	23-07-92	Active	NO
5	U91110DL1980GAP216937	Croplife India	Director	30-09-99	30-09-99	Active	NO
6	U28999GJ1996PLC029188	Transpek-Silox Industry Limited	Director	18-01-01	18-01-01	Active	NO
7	L74999MH1964PLC012878	Excel Crop Care Limited	Director	20-09-01	20-09-01	Active	NO
8	U65993MH2006PLC164038	ECCL Investments And Finance Limited	Director	24-08-06	24-08-06	Active	NO
9	U74140DL2006NPL151114	Centre For Bharatiya Management Development	Additional director	25-08-06	25-08-06	Active	NO
10	U01407MH2008NPL181505	Developmental and Eco-Friendly Enterprises	Director	24-04-08	24-04-08	Active	NO
11	U73100GJ2008NPL054708	Indian Centre For Climate And Societal Impacts Research	Director	07-08-08	07-08-08	Active	NO
12	L24230MH1960PLC011586	Anuh Pharma Limited	Director	17-09-10	30-10-09	Active	NO
13	U91990GJ2008NPL053876	Federation of Kutch Industries Association	Additional director	24-12-09	24-12-09	Active	NO

Name :	Mr. Paresh Manilal Saraiya
Designation :	Managing Director
Address :	18, Charotar Society, Old Padra Road, Vadodara – 390 020, Gujarat, India
Date of Birth/Age :	12.08.1953
Date of Appointment :	19.01.2001
DIN No.:	00063971

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	U24231GJ1987PLC009324	Parul Chemicals Limited	Director	19-01-87	19-01-87	14-12-09	Amalgamated	NO
2	U29259GJ1970PLC001800	Shroffs Engineering Limited	Director	24-09-99	24-09-99	-	Active	NO
3	U28999GJ1996PLC029188	Transpek-Silox Industry Limited	Managing director	19-01-11	19-01-01	-	Active	NO
4	U02412GJ2006PLC049495	Excel Genetics Limited	Director	30-11-06	30-11-06	-	Active	NO
5	L26100GJ1907PLC000033	ALEMBIC LIMITED	Director appointed in casual vacancy	31-01-07	31-01-07	31-03-11	Active	NO
6	U24230GJ2010PLC061123	Alembic Pharmaceuticals Limited	Director	29-08-11	31-03-11	-	Active	NO

Name :	Mr. Tigrane Mouchegh Djierdjian
Designation :	Director
Address :	26, Boulevard DV Tenao, Monaco, France
Date of Birth/Age :	02.09.1940
Date of Appointment :	19.01.2001
DIN No.:	00030676

Name :	Mr. Antonio Angelo Di Nallo
Designation :	Director
Address :	75 Avenue De Gaulle, F 78600, Maisons Laffitte, France
Date of Birth/Age :	29.09.1948
Date of Appointment :	19.01.2001
DIN No.:	00028439

Name :	Mr. Philippe Georges Renier
Designation :	Director
Address :	18, Rue Du Werihet, 4052, Beaufays, Belgium
Date of Birth/Age :	24.04.1960
Date of Appointment :	19.01.2001
DIN No.:	00028008

Name :	Mr. Robert Alfred De Coster
Designation :	Director
Address :	8 La Clairiere, B-5190 Onoz Jemeppe Sur Sambre, Belgium
Date of Birth/Age :	01.10.1943
Date of Appointment :	19.09.2002
DIN No.:	00030721

Name :	Mr. Lakshminarsimhachari Rajagopalan
Designation :	Director
Address :	A-3, Sahyog, Gorwa – Refinery Road, Vadodara – 390 016, Gujarat, India
Date of Birth/Age :	01.07.1937
Date of Appointment :	19.01.2001
DIN No.:	00063935

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	L51909GJ1991PLC015522	Haldyn Glass Gujarat Limited	Alternate director	12-11-08	04-10-95	-	Active	NO
2	U28999GJ1996PLC029188	Transpek-Silox Industry Limited	Director	19-01-01	19-01-01	-	Active	NO
3	L74999MH1964PLC012878	Excel Crop Care Limited	Alternate director	08-09-10	11-10-03	25-10-10	Active	NO

Name :	Mr. Robert Jasmin
Designation :	Director
Address :	Avenue Guillaume Macau, 8/001ER, Brussels 1050 , Belgium
Date of Birth/Age :	04.12.1950
Date of Appointment :	18.03.2010
DIN No.:	03024797

KEY EXECUTIVES

Name :	Mr. Ashish Tiwari
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 18.03.2010

Names of Shareholders	No. of Shares
Transpek Industry Limited, India	949313
L Rajagopalan	1
Shailesh K Solanki	1
Societe Industrielle Liegeoise Des Oxydes S.A. (Silox), Belgium	10044132
Tigrane Djierdjian	1
Antonio Angelo Di Nallo	1
Philippe Renier	1
Excel Industries Limited, India	1067450
Total	12060900

As on 17.03.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	83.28
Bodies corporate	16.72
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Zinc and Sulphur based Chemicals

Products :

Product Description	ITC Code
Zinc Dust	7903.10
Zinc Oxide	2817.10
Sodium Hydro Sulphite	283110.01

PRODUCTION STATUS 31.12.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Sulphoxylate Products	MT	NA	34700	30096
Zinc Based Products	MT	NA	28400	27148

Note

· Installed capacities are on an annual basis as certified by the Management and accepted by the auditors being a technical matter.

· Production quantities include captive consumption and production at job worker's site.

GENERAL INFORMATION

No. of Employees :

750 Approximately (30 in Office and 720 in Factory)

Bankers :

· Union Bank of India

Industrial Finance Branch, Union Bank Bhavan, Sayaji Gunj, Vadodara – 390 005, Gujarat, India

· State Bank of India Lead Bank

Specialised Commercial Branch, Trident, Race Course Circle, Vadodara – 390 007, Gujarat, India

· Bank of Baroda

Corporate Banking Branch, Vadodara, Gujarat, India

· Axis Bank Limited

Vardhaman Complex, Opposite GEB, Race Course Circle (North), Vadodara, Gujarat, India

Facilities :

Secured Loans	As on 31.12.2010 Rs. in millions	As on 31.12.2009 Rs. in millions
From Banks
Term Loan
From Union Bank of India (Repayable within one year Rs. Nil)	0.000	36.060
Total	0.000	36.060

Unsecured Loans	As on 31.12.2010 Rs. in millions	As on 31.12.2009 Rs. in millions
Deposit from Selling Agents and Others	107.650	99.110
Total	107.650	99.110

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	31, Nutan Bharat Society, Alkapuri, Vadodara – 390 007, Gujarat, India
Tel. No.:	91-265-2333776
Fax No.:	91-265-2339729

CAPITAL STRUCTURE

As on 17.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12060900	Equity Shares	Rs.10/- each	Rs.120.609 millions

As on 31.12.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13500000	Equity Shares	Rs.10/- each	Rs.135.000 millions
1439100	Less : Equity Shares bought back during the year 2002 (10044132 Equity Shares are held by M/s Societe Industrielle Liegeoise Des Oxydes SA (SILOX), a foreign company)		Rs.14.390 millions
	Total		Rs.120.610 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010	31.12.2009	31.12.2008
SHAREHOLDERS FUNDS
1] Share Capital		120.610	120.610	120.610
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1298.570	1084.280	883.960
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1419.180	1204.890	1004.570
LOAN FUNDS
1] Secured Loans		0.000	36.060	74.460
2] Unsecured Loans		107.650	99.110	85.990
TOTAL BORROWING		107.650	135.170	160.450
DEFERRED TAX LIABILITIES		102.760	90.550	79.600
TOTAL		1629.590	1430.610	1244.620
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		698.270	636.040	620.950
Capital work-in-progress		12.740	26.780	14.980
INVESTMENT		195.780	135.090	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	146.170	99.160	102.040
	Sundry Debtors	698.300	562.800	397.420
	Cash & Bank Balances	518.650	591.350	433.430
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	239.770	232.360	194.740
Total Current Assets		1602.890	1485.670	1127.630
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	170.560	131.780	113.820
	Other Current Liabilities	363.650	380.260	187.980
	Provisions	345.880	340.930	218.280
Total Current Liabilities		880.090	852.970	520.080
Net Current Assets		722.800	632.700	607.550
MISCELLANEOUS EXPENSES		0.000	0.000	1.140
TOTAL		1629.590	1430.610	1244.620

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Sales Turnover	3916.180	3217.540	3173.800
		Export Incentives	40.800	40.590	44.660
		Other Income	51.600	43.580	31.590
		TOTAL (A)	4008.580	3301.710	3250.050
Less	EXPENSES
		Manufacturing Expenses	2985.690	2293.500	2412.960
		Employee’s Remuneration and Benefits	246.420	263.850	204.510
		Administration and General Expenses	72.390	67.230	63.190
		Selling and Distribution Expenses	119.450	99.590	128.220
		Amortization of Expenses	0.000	1.140	2.490
		Increase/(Decrease) in Stocks	(12.390)	(3.850)	27.230
		TOTAL (B)	3411.560	2721.460	2838.600
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		597.020	580.250	411.450
Less	INTEREST AND FINANCE CHARGES (D)		31.480	33.110	41.370
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		565.540	547.140	370.080
Less/ Add	DEPRECIATION/ AMORTISATION (F)		45.970	42.880	38.680
	PROFIT/LOSS BEFORE TAX (E-F) (G)		519.570	504.260	331.400
Less	TAX (I)		157.610	165.660	93.740
	PROFIT/LOSS AFTER TAX (G-I) (J)		361.960	338.600	237.660
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		205.690	155.380	146.490
Less	APPROPRIATIONS
		Proposed Dividend	126.640	118.200	84.420
		Tax on Proposed Dividend	21.030	20.090	14.350
		Transferred to General Reserve	200.000	150.000	130.000
	BALANCE CARRIED TO THE B/S		219.980	205.690	155.380
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB basis	1222.380	1005.310	1122.770
		Others	6.810	6.010	34.450
	TOTAL EARNINGS		1229.190	1011.320	1157.220
	IMPORTS
		Raw Materials	64.470	64.500	29.520
		Capital Goods Purchase	20.130	10.160	7.520
		Stores & Spares	0.980	1.390	1.840
	TOTAL IMPORTS		85.580	76.050	38.880
	Earnings Per Share (Rs.)		30.01	28.07	19.70

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	9.03	10.26	7.31
Net Profit Margin (PBT/Sales)	(%)	13.27	15.67	10.44
Return on Total Assets (PBT/Total Assets}	(%)	22.58	23.77	18.95
Return on Investment (ROI) (PBT/Networth)		0.37	0.42	0.33
Debt Equity Ratio (Total Liability/Networth)		0.70	0.82	0.68
Current Ratio (Current Asset/Current Liability)		1.82	1.74	2.17

LOCAL AGENCY FURTHER INFORMATION

GLOBAL ECONOMIC SCENARIO AN OVERVIEW

Year 2010 saw all major economies worldwide struggling to get back on a comeback trail backed up by many government- sponsored growth initiatives and stimulus packages.

US economy, the largest in the world, harboured expectations of a sustained economic recovery with support from government-initiated stimulus package floated during early 2009. The stimulus package supported the demand to stabilize, and many companies ramped up production to replenish inventories expecting the demand stability to continue further. Unfortunately the demand pick up could not be sustained which has resulted in no significant growth during Y 2010. Insignificant improvement in unemployment rate also points in this direction. Some of the emerging key issues like renewed weakness in home prices following the expiration of tax credit for home buyers earlier this year, also posed risk of further deterioration in unemployment rate. The indications are that the growth will remain subdued during the first and second quarters of Y 2011.

In the Eurozone, the only countries which have shown some signs of recovery are Germany and France which are expected to clock growth rates of 1.5 % and 1.4 % in Y 2010 respectively. Spain and Italy continue to remain under recession and there are no signs of any significant improvement in economic activities from Eastern Europe as well as Nordic countries.

Japan, the third largest economy in the world is showing strong signs of growth at 1.7% during Y 2010 considering that in yesteryears the economy had practically clocked no growth continuously for many years.

In Asia, China continued with its growth thrust ably supported by the stimulus package aimed at kick starting the economy through increased domestic expenditure. However issues like trade imbalance with major trading partners like US, controlled exchange rate of RMB, geographical imbalance in wealth distribution etc. can become factors that are likely to rein in China's growth aspirations in future.

ECONOMIC SCENARIO IN INDIA IN THE GLOBAL CONTEXT

Closer home, the Indian economy is riding on a growth curve and is expected to clock a growth rate of 8.6 % during Y 2010-11. This growth is a result of the rebound in agriculture and momentum in manufacturing, though there was a deceleration in services caused mainly by deceleration in community, social and personal services, reflecting the base effect of fiscal stimulus of previous two years. The service industry of India which has been emerging as a global power house over the years continues to clock growth despite strong undercurrents in developed countries against outsourcing to India. However, the two macroeconomic concerns remain -- high inflation, particularly food prices, and high current account deficit.

REVIEW OF COMPANY'S OPERATIONS

In the above background the Company had a satisfying year in 2010, with growth in both top line as well as bottom line. The favourable factors that contributed towards this is the good spread that they have always enjoyed in terms of end use segments i.e Textile, Paper, Rubber and Tyre, Polymer, Paints etc and also a good geographical spread in markets between Domestic and Exports.

The Company's strong position as a market leader India for most of its products could be not only sustained but also leveraged to improve the Domestic business for all products. Export business also registered good growth notwithstanding the fact that all major global economies are still emerging from the slowdown that rocked the world in Y 2008. In the overseas markets, their products were exported to nearly 50 countries spread over five continents. Despite an appreciation in INR by over 4%, the export turnover increased by 28% in US Dollar terms and the export turnover stood at Rs.1251 Millions.

While the raw material prices remained volatile during the year, efforts were made by the Company to pass on the increase to the best extent possible. The Company continued its focus on maximizing the utilization of plant capacities.

Continued efforts made by the Company to optimize the resource utilization as well as technical improvements to contain bought out costs came in handy for improving the overall performance during the year. The continuation of anti-dumping duty (ADD) for key products also helped the Company to deal with unfair competition and sustain its business volumes.

R and D efforts aimed at process improvements as well as further optimization of bought out costs for key products continua throughout the year.

OUTLOOK

The Y 2011 beckons us with more challenging times, in the background of spiraling political strife in North Africa and West Asia, which is expected to push the global oil prices to a tizzy. This is sure to further dampen the business sentiments worldwide, which is already subdued due to no significant growth indications from major economies of the world.

The growth rate in US is expected to sputter at 2 % led by a downslide of Corporate Profitability and Market performance as the Fed Monetary Policy and Federal bailout dollars leave evaporative economic impacts.

The Eurozone is also expected to continue as a drag on global growth, with only Germany and France showing any signs of growth at 1.9 % and 1.7 % respectively.

Japan riding on a strong growth wave of Y 2010 when compared with no growth of yesteryears, is expected to grow at 2.2 % during Y 2011.

In the Asian subcontinent, China though jaw bowed by the entire world to provide level playing field by allowing their undervalued currency RMB to appreciate, is still expected to clock a robust growth in Y 2011. However there are signs of increase in costs in various areas of their manufacturing base, which can hamper their cost competitiveness in the long run.

In India, even though the regime of UPA - II Government appears to be under siege from a spate of corruption scandals, the economy is expected to clock over 8% growth in Y 2011-12. The possible dampeners for growth is the political uncertainty in West Asia that can lead to significant rise in Forex outgo to meet the higher oil bills fueling further the inflation, high interest rates and the delayed recovery of the global economy. The domestic demand is expected to be robust with agriculture supported by favourable monsoon and manufacturing driven by domestic consumption is expected to do well.

As the Y 2011 unfolds before them, the Company looks forward to the future with confidence gained from long experience as well as good understanding about its existing business profile. The growth aspirations in Zinc based products are sure to buttress the Company's efforts to maintain the growth momentum.

In terms of end use sectors, Textile sector in India is more of a domestic oriented industry, in spite of significant export exposure for Denim and garments. The continued growth story of the Indian economy during Y 2011 is expected to support growth of this segment.

As regards Rubber and Tyre sector the strong growth in automotive and other manufacturing segments is in turn expected to fuel strong growth of this segment, which offers good opportunities for the Company's products.

In the Paints and Coating sector, while the lower per capita consumption of Paints in India offers good growth opportunities for this segment, your Company's exposure to this sector is limited to Protective Coatings segment and the accelerating activities in the Industrial and Infrastructure segments is sure to spiral strong growth of this segment.

While the volatility in raw material prices and the unprecedented escalation In oil prices is an area of concern, their effort would be to pass on the cost increase to the market to the best possible extent, while protecting their market share of all products. The ADD for some of the Company's key products shall come during the coming year and the Company is working on various avenues for continuance of ADD for these products.

Acceleration in their efforts for improving their overall cost competitiveness, improving Zinc Valorisation and maximising the market share as well as price realization of the Company's products shall continue to receive focus during the coming year also.

FINANCE

During the year, the working capital requirement of the Company registered an increase due to the increase in the level of activity coupled with increase in the Zinc prices. This resulted in a lower net cash generation from Operations when compared with the previous year.

Despite the increase in the working capital requirement, the Company was able to achieve a net positive interest income for the year.

The Company continued to remain focused on managing its metal and forex risks through appropriate risk management tools.

During the year, the term loan availed from the Union Bank of India for part financing the Sodium Hydro Sulphite plant at Ekalbara site was fully repaid.

CRlSlL while re-affirming the P1+ rating (indicating very strong safety regarding timely payment) for the Commercial Paper Programme of the Company and for the short-term components of working capital facilities of the Company, upgraded the long term rating from to AA- to AA (Stable) (indicating High Safety regarding timely payment).

CONTINGENT LIABILITIES (As on 31.12.2010)

a. Claims against the Company not acknowledged as debts.

· Excise Duty and Service Tax : Tax and interest contested by the Company where no provision is considered necessary Rs.23.910 Millions

· Income Tax : Tax and interest on disallowances contested by the Company where no provision is considered necessary Rs.2.320 Millions

· Sales Tax : Demand raised by the authorities under the Gujarat and Central Sales Tax. Acts, which is contested by the Company and where no provision is considered necessary Rs.4.890 Millions

b. Letters Of Credit, Guarantees, Counter guarantees, etc. given to various parties and Government Departments/ Authorities amount to Rs.43.98 Millions

c. The Company has furnished a Corporate Guarantee to HDFC, a housing finance institution, in respect of housing loans taken by the employees. Balance amount of employees' loans outstanding is Rs.0.03 Million.

FORM 8

This form is for	Modification of charge
Corporate identity number of the company	U28999GJ1996PLC029188
Name of the company	TRANSPEK-SILOX INDUSTRY LIMITED
Address of the registered office or of the principal place of business in India of the company	Kalali Road, Atladra, Vadodara – 390 012, Gujarat, India
Type of charge	· Book Debts · Movable Property · Others o Hypothecation
Particular of charge holder	State Bank of India Lead Bank Specialised Commercial Branch, Trident, Race Course Circle, Vadodara – 390 007, Gujarat, India
Nature of description of the instrument creating or modifying the charge	(1) Supplemental joint deed of hypothecation
Date of instrument Creating the charge	25.06.2007
Amount secured by the charge	Rs.420.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Extent and Operation of the charge: The credit facilities are secured by way of 1st charge of hypothecation of tangible movables including Stocks of RM, WIP, FG, etc Bills And Receivables and Book Debts
Short particulars of the property charged	The credit facilities are secured by way of 1st charge of hypothecation of tangible movables including Stocks of RM, WIP, FG, etc Bills And Receivables and Book Debts
Date of latest modification prior to the present modification	29.04.2005
Particulars of the present modification	By this execution the consortium charge extended to cover revised credit facilities from Rs.320.000 Millions 420.000 Millions for the respective credit facilities granted by the participating banks

Fixed Assets

· Land (Freehold)

· Lease Hold Land

· Buildings

· Plant and Machinery

· Electrical Installations

· Research and Development Equipments

· Furniture and Fixtures

· Vehicles

WEB DETAILS

Corporate Profile

Silox S.A.

A Joint Venture of Prayon S.A and Cybelle S.A of Belgium specializes in Mineral Chemistry.

Silox, in addition to the Zinc Oxide and Sodium Hydrosulphite facilities in Belgium, is also a controlling partner in a Sodium Hydrosulphite / Zinc Oxide manufacturing facility in anada, M/S Hydro Technologies . It is also the 100% owner of SNCZ, France, who are one of the leaders in Phosphate and Chromatic Anti-Corrosion Pigments.

Silox Group also includes, M/S Jean Goldschmidt International and HYDRO METAL, who are involved in the business of Non-Ferrous Residue trading and Hydro Metallurgic treatment respectively.

Prayon S.A.

Prayon S.A traces its genesis to the 19th century and has a long Industrial experience and International recognition in Phosphate Chemicals. It has over the years emerged as a multinational entity with 20 companies spread across 10 countries. It commands the position of a world leader in Phosphates and Mineral Specialty Industry.

Cybelle.S.A.

Cybelle Group consists of many companies in the field of Chemicals and Plastics located across Europe and South America.

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.49.02
UK Pound	1	Rs.77.13
Euro	1	Rs.67.55

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		53

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.