MIRA INFORM REPORT

Report Date :

05.09.2011

IDENTIFICATION DETAILS

Name :	DESMO EXPORTS LIMITED
Registered Office :	C-108, TTC Industrial Area, Pawane MIDC, Navi Mumbai-400705, Maharashtra
Country :	India
Financials (as on) :	31.03.2010 (Consolidated)
Date of Incorporation :	04.02.1993
Com. Reg. No.:	11-070652
Paid-Up Capital :	Rs. 39.123 Millions
CIN No.: [Company Identification No.]	U51397MH1993PLC070652
TAN No.: [Tax Deduction & Collection Account No.]	MUMD11792E
PAN No.: [Permanent Account No.]	AABCD0271E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Chemicals and HMs
No. of Employees :	28 (approximately)

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 260000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established company having satisfactory track. Financial position of the company appears to be sound. Trade relations are fair. Business is active. Payments are reported to be regular 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/Factory :	C-108, TTC Industrial Area, Pawane MIDC, Navi Mumbai-400705, Maharashtra
Tel. No.:	91-22-27654062/27652473/27634390
Fax No.:	91-22-27801853
E-Mail :	info@desmoexports.com
Websites :	www.desmoexports.com
Area :	830 sq.ft
Location:	Owned
Corporate Office :	125, Arenja Arcade, Sector- 17, Vashi, Navi Mumbai- 400705, Maharashtra
Tel. No.:	91-22-61317500 upto 100 Lines / 27654062 / 24652473/27880365
Fax No.:	91-22-27801853
E-Mail :	info@desmoexports.com sales@desmoexports.com
Website :	http://www.desmoexports.com
Area :	275 sq. ft.
Location:	Owned
Branch Office :	Located at: · Ahmedabad · Delhi

DIRECTORS

As On 30.09.2010

Name :	Mr. Dilipkumar Mishrilal Jindal Jindal
Designation :	Director
Address :	J – 21, Rh – V, Sector – 6, Vashi, New Mumbai-400703, Maharashtra, India
Date of Birth/Age :	21.02.1964
Date of Appointment :	09.08.2002
Name :	Mr. Jitendra Devki Yadav
Designation :	Director
Address :	2B – 16, Sector – 10, Koperkhairne, Navi Mumbai-400708, Maharashtra, India
Date of Birth/Age :	10.01.1967
Date of Appointment :	01.07.2003
Name :	Mr. Jamir Supadu Shaikh
Designation :	Director
Address :	Near Jumma Masjid, Opposite Babakunj, Khairne Village, Belapur Road, Navi Mumbai, Maharashtra, India
Date of Birth/Age :	03.10.1977
Date of Appointment :	01.04.2003
Date of Cessation :	09.03.2009
DIN No.:	01677049
Name :	Mrs. Rachana Dilip Jindal
Designation :	Director
Address :	J – 21, Row House No. 5, Sector – 6, Vashi, New Mumbai-400703, Maharashtra, India
Date of Birth/Age :	11.11.1968
Date of Appointment :	07.07.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.09.2010

Names of Shareholders		No. of Shares
Dilip M Jindal		2467740
Rachna Dilip Jindal		861580
Krishna Jindal		44966
Mishrilal Jindal		448616
Shobha Agarwal		1000
Jitendra Yadav		1000
Dilip M Jindal (HUF)		87400
	Total	3912302

As On 30.09.2010

Category	Percentage
Directors or relatives of Directors	99.95
Other top fifty shareholders	0.05
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Chemicals and HMs
Product :	· Ammonium Chloride · Caustic Potash · Citric Acid · Acrylamide · Glycerine · Melamine · Phosphoric Acid · Propylene Glycol · Paraffin Wax · PVC Resin

PRODUCTION STATUS (As on : 31.03.2010):-

Particulars	Installed Capacity	Actual Production
Industrial Solvents	4000 (KL)	313.497 MT

GENERAL INFORMATION

Suppliers :

· Anuhi Garments Shoes and Caps Industrial (Groups) Company

· Hubei Shiyuan Chemicals Import and Export Company, Limited

· R.Z.B.C. Company, Limited

· Shandong Linghua Monosodium Glutamate Incorporated Company

· Jinhe Sodium Hydrosulphite Factory Company, Limited

· Shandong Shenghua Monosodium Glutamate Company, Limited

· Ningxia Xingping Fine Chemical Stock Company, Limited

No. of Employees :

28 (approximately)

Bankers :

· Bank of India, Ghatkopar Branch, Mumbai, Maharashtra, India

· Punjab National Bank, Vashi, Sector No. 1, Mumbai, Maharashtra, India

· Citi Bank

· HDFC Bank Limited

· Standard Chartered Bank

· Kotak Mahindra Bank Limited

· State Bank of India, Konkan Bhavan Branch CIDCO Bhavan (South Wing) , CBD Belapur, Navi Mumbai – 400 614, Maharashtra, India

· ICICI Bank Limited – Landmarkrace Cource Circle, Alkapuri, Vadodara – 390015, Gujarat, India

Facilities :

Secured Loans	(Consolidated) 31.03.2010 (Rs. In Millions)	(Consolidated) 31.03.2009 (Rs. In Millions)
Overdraft Facility from
Standard Chartered Bank (secured against FDR)	(0.495)	3.477
Standard Chartered Bank (Secured against Flats Situated at Devrata Soc. Limited, Vashi)	0.000	48.840
State Bank of India (secured against outstanding liabilities and all FDR)	15.366	0.000
Standard Chartered Bank	45.064	0.000
HDFC Bank Limited Loan (5 Loans) (secured against truck)	6.570	0.000
Total	66.505	52.317

Unsecured Loans	(Consolidated) 31.03.2010 (Rs. In Millions)	(Consolidated) 31.03.2009 (Rs. In Millions)
Bajaj Auto Finance Limited	0.105	0.000
Magama Finance Corporation Limited	0.681	0.000
Jindal Enterprises	0.527	0.030
Barclays Bank PLC	2.050	0.000
Cholamandalam DBS Finance	0.000	(0.008)
Citi Bank	0.179	0.000
Kotak Mahindra Bank Limited (7.500 million)	7.218	0.000
Kotak Mahindra Bank Limited (2.000 million)	0.180	0.000
Religare Finvest Limited	1.789	0.000
Total	12.729	0.022

Banking Relations :	--
Auditors :
Name :	Chaplot and Company Chartered Accountant
Address :	105, Shreeji Arcade, Above HDFC Bank, Tilak Raod, Dombivali (East), Thane-421201, Maharashtra, India
Tel. No.:	91-251-2420718
Pan No.:	AAMPC9697D
Associates :	· Spectrum Communication Private Limited · Mangal Jyoti Niket Private Limited · Divyaratna Agrotech Private Limited
Associates/Subsidiaries :	· Jindal Enterprises, Vashi

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs. 10/- each	Rs. 40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3912302	Equity Shares	Rs. 10/- each	Rs. 39.123 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET (CONSOLIDATED)

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		39.123	19.562	3.402
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		26.070	34.759	37.005
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		65.193	54.321	40.407
LOAN FUNDS
1] Secured Loans		66.505	52.317	(0.713)
2] Unsecured Loans		12.729	0.022	27.548
TOTAL BORROWING		79.234	52.339	26.835
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		144.427	106.660	67.242
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		20.984	5.158	5.557
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	4.923
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	112.235	43.957	27.298
	Sundry Debtors	92.488	66.411	62.608
	Cash & Bank Balances	7.883	5.065	[0.118]
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	53.449	25.621	10.155
Total Current Assets		266.055	141.054	99.943
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	133.887	24.628
	Other Current Liabilities	0.000	0.000	43.181
	Provisions	8.726	14.924	0.000
Total Current Liabilities		142.613	39.552	43.181
Net Current Assets		123.442	101.502	56.762
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		144.427	106.660	67.242

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	725.748	562.548	226.332
		Other Income	20.886	9.364	79.939
		TOTAL (A)	746.634	571.912	306.271
Less	EXPENSES
		Cost of Goods Sold	554.466	400.714	186.806
		Direct Expenses	58.374	69.844	27.964
		Sales and Administrative Expenses	12.666	11.157	4.564
		Other Expenditure	88.485	59.297	29.238
		TOTAL (B)	713.991	541.012	248.572
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		32.643	30.900	57.699
Less	FINANCIAL EXPENSES (D)		13.431	7.891	7.969
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		19.212	23.009	49.730
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.225	0.787	0.816
	PROFIT BEFORE TAX (E-F) (G)		16.987	22.222	48.914
Less	TAX (I)		6.115	8.309	16.012
	PROFIT AFTER TAX (G-I) (J)		10.872	13.913	32.902
	IMPORTS
		Raw Materials	NA	371.021	184.730
	TOTAL IMPORTS		NA	371.021	184.730
	Earnings Per Share (Rs.)		2.78	NA	NA

KEY RATIOS (CONSOLIDATED)

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.46	2.43	10.74
Net Profit Margin (PBT/Sales)	(%)	2.34	3.95	21.61
Return on Total Assets (PBT/Total Assets}	(%)	5.92	15.19	46.36
Return on Investment (ROI) (PBT/Networth)		0.26	0.41	1.21
Debt Equity Ratio (Total Liability/Networth)		3.40	1.69	1.73
Current Ratio (Current Asset/Current Liability)		1.87	3.57	2.31

LOCAL AGENCY FURTHER INFORMATION

form 8

Corporate identity number of the company	U51397MH1993PLC070652
Name of the company	DESMO EXPORTS LIMITED
Address of the registered office or of the principal place of business in India of the company	C-108, TTC Industrial Area, Pawane MIDC, Navi Mumbai-400705, Maharashtra
This form is for	Creation of Charge
Type of charge	Immovable Property Movable Property
Particular of charge holder	ICICI Bank Limited – Landmarkrace Cource Circle, Alkapuri, Vadodara – 390015, Gujarat, India E-mail: nabha.nirody@icicibank.com
Nature of instrument creating charge	Declaration for deposit of title deeds executed by Desmo Exports Limited in favor of ICICI Bank Limited dated 12.01.2011 and Memorandum of entry dated 13.01.2011 for creation on first and exclusive charge on land and building and movable property on plot c - 108, TTC Industrial Area, MIDC, Pawne, Thane Belapur road, Navi Mumbai - 400 705.
Date of instrument Creating the charge	13.01.2011
Amount secured by the charge	Rs. 310.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As per sanction terms Terms of Repayment: On demand Margin: As per sanction terms Extent and Operation of the charge: First and Exclusive Charge on land and building and movables on plot c - 108, TTC Industrial Area, MIDC Pawne, Thane Belapur road, Navi Mumbai - 400 705.
Short particulars of the property charged (Including location of the property)	First and Exclusive Charge on land and building and movables on plot c - 108, TTC Industrial Area, MIDC Pawne, Thane Belapur road, Navi Mumbai - 400 705.

FIXED ASSETS

· Tankers

· Air Conditioner

· Boiler

· Computer

· D G Set

· Electrical Installation

· Factory Building

· Fax Machine

· Fire Fighting Equipments

· Furniture and Fixture

· Lease Hold Land

· Photocopier Machine

· Plant and Machinery

· Storage Tank

· Office equipment

· Tea/Coffee Machine

· Motor Bike

· Aquaguard booster

· Board camera

· UPS

· Television

Business Description

Establishments primarily engaged in producing gasoline, kerosene, distillate fuel oils, residual fuel oils, and lubricants, through fractionation or straight distillation of crude oil, redistillation of unfinished petroleum derivatives, cracking or other processes. Establishments of this industry also produce aliphatic and aromatic chemicals as by-products.

Press Release:

CRISIL revises rating on cash credit of Desmo Exports

Equity Bites: 10.03.2011

10.03.2011 - Indian rating agency CRISIL yesterday downgraded the rating on a cash credit of Desmo Exports Limited to BB/"stable" from BB+/"stable" and reaffirmed the rating on a letter of credit of the company at P4+

The agency issued the following press release:

Rs.50.000 Millions Cash Credit BB/Stable (Downgraded from 'BB+/Stable')

Rs.200.000 Millions Letter of Credit P4+ (Reaffirmed)

CRISIL has downgraded its rating on the long-term bank facilities of Desmo Exports Limited (Desmo) to 'BB/Stable' from 'BB+/Stable'; the rating on the short-term facilities has been reaffirmed at 'P4+'.

The downgrade reflects CRISIL's belief that Desmo's financial risk profile will remain constrained over the medium term, due to more-than-expected debtor levels, and higher inventory levels, leading to larger-than-expected working capital requirements.

The ratings reflect the deterioration in Desmo's financial risk profile, marked by high total outside liabilities to tangible net worth ratio, due to larger-than-expected working capital requirements, and modest scale of operations and net worth. These weaknesses are partially offset by Desmo's strong sourcing capabilities and its diversified product and customer profile.

Outlook: Stable

CRISIL believes that Desmo will maintain its market position in the chemical trading business, on account of the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if the company is able to improve its working capital management and significantly increase its operating margin and cash accruals. Conversely, the outlook may be revised to 'Negative' in case of significant decline in business volumes, revenues or profitability, coupled with larger working capital requirements, or in case of more-than-expected deterioration in Desmo's liquidity.

About the Company

Established in 1993, Desmo, which is promoted and managed by Mr. Dilipkumar Jindal, is a closely held public limited company. It trades in 25 types of chemicals, including citric acid, phosphoric acid, paraffin wax and dicyandiamide. The company has marketing offices in China, from where it procures the majority of its supplies. Desmo's revenues increased at a compound annual growth rate of 95 per cent over the three years ended 31.03.2010.

Desmo reported a profit after tax (PAT) of Rs.11.000 millions on net sales of Rs.660.000 millions for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of Rs.14.000 millions on net sales of Rs.493.000 millions for 2008-09.

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	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--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	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.