MIRA INFORM REPORT

Report Date :

03.09.2011

IDENTIFICATION DETAILS

Name :	GARGI CHEMICALS PRIVATE LIMITED GARGI INDUSTRIES (PROPRIETOR - GARGI CHEMICALS PRIVATE LIMITED)
Registered Office :	2, Mercantile Apartments, Opposite Basant Studios, Chembur, Mumbai – 400 074, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	05.02.1977
Com. Reg. No.:	11-019480
Capital Investment / Paid-up Capital :	Rs.1.000 million
CIN No.: [Company Identification No.]	U24110MH1977PTC019480
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Foundry Chemicals and Additives.
No. of Employees :	Not Available

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 289000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Financial position of the company appears to be sound. 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	2, Mercantile Apartments, Opposite Basant Studios, Chembur, Mumbai – 400 074, Maharashtra, India
Tel. No.:	91-22-25201596/ 25563596/ 97/ 25201396/ 97
Fax No.:	91-22-25202706/ 25562706/ 25572080
E-Mail :	gargi@gargi-india.com vidhiconsultants@gmail.com gargi@bom2.vsnl.net.in
Website :	http://www.gargi-india.com

DIRECTORS

As on 09.09.2010

Name :	Mr. Vinod Vishwamitra Kapur
Designation :	Managing Director
Address :	18, Union Park, Chembur, Mumbai – 400 071, Maharashtra, India
Date of Birth/Age :	26.10.1943
Date of Appointment :	05.02.1977
DIN No.:	00474054
Name :	Mr. Vicky Vishwamitra Kapur
Designation :	Director
Address :	18, Union Park, Chembur, Mumbai – 400 071, Maharashtra, India
Date of Birth/Age :	30.10.1952
Date of Appointment :	05.02.1977
DIN No.:	00474210
Name :	Mr. Gaurav Vinod Kapur
Designation :	Director
Address :	18, Union Park, Chembur, Mumbai – 400 071, Maharashtra, India
Date of Birth/Age :	16.05.1979
Date of Appointment :	28.10.2003
DIN No.:	00034397
Name :	Ms. Namita Vicky Kapur
Designation :	Director
Address :	18, Union Park, Chembur, Mumbai – 400 071, Maharashtra, India
Date of Birth/Age :	22.01.1955
Date of Appointment :	01.09.2004
DIN No.:	00474641

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 09.09.2010

Names of Shareholders	No. of Equity Shares	No. of Preferences Shares
Vinod Kapur and Geeta Kapur	900	--
Vicky Kapur and Namita Kapur	900	--
Geeta Kapur and Vinod Kapur	1700	--
Namita Kapur and Vicky Kapur	1700	250
Gaurav Kapur and Vinod Kapur	850	225
Master Varun Kapur Through his Father Vicky Kapur	850	--
Vinod Kapur Karta Representing Vinod Kapur HUF	1300	--
Vicky Kapur Karta Representing Vicky Kapur HUF	1300	--
Gaurav Kapur, Veena Kapur and Sarla Natwarlal Shah	--	1
Gaurav Kapur	--	1
Gaurav Kapur, Gargi Ahluwalia, Jagjit Singh Ahluwalia and Rakita Nanda	--	1
Gaurav Kapur, Master Varun Kapur Through his Father Vicky Kapur	--	1
Gaurav Kapur	--	1
Gaurav Kapur, Sanjeev Ahluwalia and Sanjay Ahluwalia	--	1
Gaurav Kapur and Jatin Sial	--	1
Gaurav Kapur, Chandrakanta Malak and D.N. Malak HUF	--	1
Gaurav Kapur	--	1
Gaurav Kapur	--	1
Gaurav Kapur	--	1
Gaurav Kapur	--	1
Gaurav Kapur and Vibha Kapur	--	1
Gaurav Kapur and Radhika. S. Puri	--	1
Gaurav Kapur and Anisha Kapur	--	1
Gaurav Kapur and Meghna Kapur	--	1
Gaurav Kapur Jointly with Vinod Kapur	--	1
Gaurav Kapur Jointly with Vinod Kapur	--	1
Gaurav Kapur Jointly with Vinod Kapur, B.C. Paul and Sudeep Ahluwalia	--	1
Gaurav Kapur Jointly with Vinod Kapur	--	1
Gaurav Kapur Jointly with Vinod Kapur	--	1
Gaurav Kapur Jointly with Vinod Kapur	--	1
Gaurav Kapur Jointly with Vinod Kapur	--	1
Gaurav Kapur Jointly with Vinod Kapur	--	1
Gaurav Kapur Jointly with Vinod Kapur	--	1
Total	9500	500

As on 09.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Foundry Chemicals and Additives.

Products :

Item Code No. (ITC Code)	3824.9000
Product Description	Foundry Chemicals and Additives
Item Code No. (ITC Code)	3824.1000
Product Description	Prepared Binders for Moulds and Cores
Item Code No. (ITC Code)	3907.5000
Product Description	Alkyd Resins
Item Code No. (ITC Code)	3824.9090
Product Description	Metal Feeding Aids

PRODUCTION STATUS (AS ON 31.03.2010)

Licensed Capacity – N.A.

Installed Capacity – 3500 M.T.

Particulars	Unit	2009-10
Actual Production (Qty.)	Nos.	3353510
	Kgs.	4234563
	Ltrs.	249546

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v The Cosmos Co-Operative Bank Limited, Chembur Branch, Richmond Heights, Central Avenue Road, Ground Floor, Plot No.239, Chembur, Mumbai – 400 071, Maharashtra, India

v The Cosmos Co-Operative Bank Limited, Ed-El Building, 11^th Road, Beside Novel Shope, Central Avenue Road, Chembur, Mumbai – 400 071, Maharashtra, India

v Canara Bank, Chembur (Main), Mumbai – 400 071, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From The Cosmos Co-Operative Bank Limited:
- Cash Credit	3.247	3.370
- Packing Credit	0.000	0.524
- Term Loan	0.000	2.851
- Secured by Hypothecation of Stocks and Book debts All the aforesaid bank facilities are additionally secured by charge on company's office premises land and building and plant and machinery at D-136, M.I.D.C, Navi Mumbai and are guaranteed by the Managing and a sister concern
Total	3.247	6.745

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Directors	18.345	18.813
From Shareholders and Others:
Guaranteed by Directors
- On Fixed Deposits	8.321	7.197
- On Current Account	35.376	32.606
Total	62.042	58.616

Banking Relations :	--
Auditors :
Name :	J.V. Sanghvi and Company Chartered Accountants
Address :	Office No.1, Namrata-A, 90 Feet Road, Building No.4, Ghatkopar (East), Mumbai – 400 075, Maharashtra, India
Tel. No.:	91-22-32449541/ 25146937
E-Mail :	jvsanghviandco@yahoo.co.in
Income-tax PAN of auditor or auditor's firm :	AAGPS0434E
Gargi Group of Companies :	v Gargi Huttenes-Albertus Private Limited v Gargi Huttenes-Albertus Emirates LLC FZC v Gargi Engineering Enterprises Private Limited v Gargi Crystal Steelchem Private Limited v Gargi Magna Steelchem Private Limited v Western Refra-Cast Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
9500	Equity Shares	Rs.100/- each	Rs.0.950 million
500	11% Non-Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.0.050 million
	Total		Rs.1.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9500	Equity Shares	Rs.100/- each	Rs.0.950 million
500	11% Non-Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.0.050 million
	Total		Rs.1.000 million

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		1.000	1.000	1.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		71.132	57.617	52.558
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		72.132	58.617	53.558
LOAN FUNDS
1] Secured Loans		3.247	6.745	31.900
2] Unsecured Loans		62.042	58.616	43.371
TOTAL BORROWING		65.289	65.361	75.271
DEFERRED TAX LIABILITIES		0.341	0.515	0.196
TOTAL		137.762	124.493	129.025
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		32.485	31.003	30.714
Capital work-in-progress/ Assets under Construction/ Erection		19.487	8.683	5.278
INVESTMENT		1.559	1.559	0.265
DEFERREX TAX ASSETS		0.937	2.129	1.261
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	38.053	26.420	32.313
	Sundry Debtors	95.422	98.561	110.965
	Cash & Bank Balances	10.321	3.143	3.862
	Other Current Assets	0.000	0.000	0.000
	Loans, Advances & Deposits	10.134	11.459	17.857
Total Current Assets		153.930	139.583	164.997
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	63.868	53.524	65.840
	Other Current Liabilities	0.562	0.488	0.252
	Provisions	6.206	4.452	7.398
Total Current Liabilities		70.636	58.464	73.490
Net Current Assets		83.294	81.119	91.507
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		137.762	124.493	129.025

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	381.577	423.044	418.211
		Other Income	0.181	1.534	1.434
		TOTAL (A)	381.758	424.578	419.645
Less	EXPENSES
		Material Consumed	276.886	337.303	312.917
		Manufacturing Expenses	18.919	20.606	22.991
		Other Expenses	44.755	39.787	37.071
		TOTAL (B)	340.560	397.696	372.979
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		41.198	26.882	46.666
Less	INTEREST & CHARGES (D)		8.477	10.539	6.987
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		32.721	16.343	39.679
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.837	1.663	1.501
	PROFIT BEFORE TAX (E-F) (G)		30.884	14.680	38.178
Less	TAX (H)		10.168	5.176	13.481
	PROFIT AFTER TAX (G-H) (I)		20.716	9.504	24.697
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.317	14.508	3.756
	Excess Provision for Taxation		0.004	0.007	0.007
	Excess Provision for Expenses		0.009	0.000	0.000
Less	APPROPRIATIONS
		Proposed Dividend	4.280	3.805	3.805
		Interim Dividend	1.900	0.000	0.000
		Corporate Dividend Tax	1.034	0.647	0.647
		Transfer to General Reserve	15.200	14.250	9.500
	BALANCE CARRIED TO THE B/S		3.632	5.317	14.508
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	22.655	39.304	20.613
		Income from Services rendered	0.054	0.548	0.889
	TOTAL EARNINGS		22.709	39.852	21.502
	IMPORTS
		Raw Materials	84.352	64.815	67.042
		Resale Material	0.468	0.359	0.000
	TOTAL IMPORTS		84.820	65.174	67.042
	Earnings Per Share (Rs.)		2180.00	999.00	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.43	2.24	5.89
Net Profit Margin (PBT/Sales)	(%)	8.09	3.47	9.13
Return on Total Assets (PBT/Total Assets}	(%)	16.57	8.61	19.51
Return on Investment (ROI) (PBT/Networth)		42.82	0.25	0.71
Debt Equity Ratio (Total Liability/Networth)		1.88	2.11	2.78
Current Ratio (Current Asset/Current Liability)		2.18	2.39	2.25

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE:

The Sales Turnover was lower by about 11% as compared to earlier year mainly due to recessionary conditions in earlier part of the year. The gross and net margins improved mainly due to favourable raw material prices during the year.

There was substantial progress in building construction and electrical installation at Khopoli project, however directors are awaiting improvement in infrastructure to go fast forward in the project.

FORM 8:

Corporate identity number of the company	U24110MH1977PTC019480
Name of the company	GARGI CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	2, Mercantile Apartments Opposite Basant Studios, Chembur, Mumbai – 400 074, Maharashtra, India E-Mail: gargi@gargi-india.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	The Cosmos Co-Operative Bank Limited, Chembur Branch, Richmond Heights, Central Avenue, Road, Ground Floor, Plot No. 239 Chembur, Mumbai - 400 071, Maharashtra, India E-Mail: njbhatia@rediffmail.com
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation of stock, book debts and machinery
Date of instrument Creating the charge	25.11.2010
Amount secured by the charge	Rs.10.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Terms of Repayment 180 days Margin 10% in banks favour Extent and Operation of the charge This is one time Letter of credit facility
Short particulars of the property charged	Hypothecation of goods under L/C, stock in trade, book debts, raw materials, goods in process, semi manufactured and manufactured goods, semi finished products, at borrowers place of business at Shrivani, Navi Mumbai or wherever else the same maybe.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF: (AS ON 31.03.2010)

a] Letter of Credit-Purchase – Rs.33.585 millions

b] Bank Guarantee – Rs.1.242 millions

FIXED ASSETS:

v Goodwill

v M.I.D.C. Lease Land

v Land at Atkargaon

v Buildings

v CIDCO Flat

v Plant and Machinery

v Furniture and Fixtures

v Computers

v Vehicles

WEBSITE DETAILS:

PROFILE:

As Foundry Consumables manufacturers, they have been catering to the Metal Industry since 1960. The complete range of auxiliaries for ferrous and non ferrous metals, tailor made products are the hall-mark of Gargi’s relentless service to the industry. During this period, the technology of Gargi Foundry auxiliaries has been transferred to foreign lands too.

The Late Shri Vishwamitra Kapur, a well known foundryman and metallurgist started the company in November 1959 with a team of 7 in a small unit at Jogeswari, Mumbai.

The first production of C0₂ based Garcobond was taken up in March 1960 to make the first dispatch. Shri Vinod Kapur joined in June 1963 followed by Shri Vicky Kapur in 1971.

This strengthening of the family team efforts enriched the company and necessitated the move of the factory to a new location at Vashi, New Mumbai, to house a larger manufacturing unit.

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.45.90
UK Pound	1	Rs.74.31
Euro	1	Rs.65.41

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	YES
--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.