MIRA INFORM REPORT

Report Date :

10.09.2011

IDENTIFICATION DETAILS

Name :	HEXAGON NUTRITION PRIVATE LIMITED (w.e.f. 10.01.2006)
Formerly Known As :	HEXAGON CHEMOILS PRIVATE LIMITED
Registered Office :	404, Global Chamber, Adarsh Nagar, Link Road, Andheri (West), Mumbai - 400 053, Maharashtra
Country :	India
Financials (as on) :	31.03.2010 (Consolidated)
Date of Incorporation :	27.05.1993
Com. Reg. No.:	11-072189
Capital Investment / Paid-up Capital :	Rs.22.475 Millions
CIN No.: [Company Identification No.]	U24110MH1993PTC072189
TAN No.: [Tax Deduction & Collection Account No.]	MUMH04440C
PAN No.: [Permanent Account No.]	AAACH2359E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Vitamins Premixes, Soft Drink Concentrate and Veterinary Feeds Supplements
No. of Employees :	120 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 308192
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are 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.

INFORMATION PARTED BY

Name :	Mr. Makrand
Designation :	Accounts Manager
Contact No.:	91-9987672864
Date :	09.09.2011

LOCATIONS

Registered/ Corporate Office :	404, Global Chambers, Adarsh Nagar, Link Road, Andheri (West), Mumbai – 400 053, Maharashtra, India
Tel. No.:	91-22-26744742/ 43/ 28778529/ 40316722
Mobile No.:	91-9987672864 (Mr. Makrand)
Fax No.:	91-22-26744740/ 41/ 28778530
E-Mail :	marketing@hexagonnutrition.com arunkelkar@hexagonnutrition.com healthcare@hexagonnutrition.com hexagonc@vsnl.com accounts@hexagonnutrition.com hexagonc@vsnl.net
Website :	www.hexagonnutrition.com
Area :	1600 sq ft
Location :	Owned
Head Office/ Factory 1 :	22/ 23/ 20, 1^st Floor, SDF Building No.3, Phase MEPZ-SEZ, Tamsaram, Chennai – 600 045, Tamilnadu, India
Tel. No.:	91-44-22625252
Fax No.:	91-44-22625252
Area :	9000 sq ft
Location :	Leased
Factory 2 :	Plot No.92, Unanda Nagar, Taluka Dindori, District Nashik, Maharashtra, India
Tel. No.:	952557-250174
Fax No.:	952557-250015
Area :	2 Acre (Owned)
Administrative Office :	229, Oshiwara Centre, Opposite Bus Depot, Link Road, Goregaon, Mumbai – 400 104, Maharashtra, India
Tel. No.:	91-22-28778529 / 28778530 / 31
Fax No.:	91-22-28739404
Branch Office:	101 Global Chambers, Adarsh Nagar, Link Road, Andheri (West), Mumbai, Maharashtra, India

DIRECTORS

AS ON 10.09.2010

Name :	Mr. Arun Purshottam Kelkar
Designation :	Managing Director
Address :	1102, Dheeraj Gourav Height-1, Near Hundai Showroom, Adarsh Nagar, Andheri (East), Mumbai – 400 053, Maharashtra, India
Date of Birth/Age :	01.05.1950
Qualification :	B.E., DQM
Date of Appointment :	27.05.1993
DIN No.:	00171276
Name :	Mr. Subhash Purshottam Kelkar
Designation :	Director
Address :	Flat No. 3, Dharmraj Plaza, Old Gangapur Naka, Gangapur Road, Nashik – 422 005, Maharashtra, India
Date of Birth/Age :	28.07.1959
Qualification :	B. Pharma, DMS
Date of Appointment :	27.05.1993
DIN No.:	00177280
Name :	Mrs. Anuradha A. Kelkar
Designation :	Director
Address :	1102, Dheeraj Gourav Height-1, Near Hundai Showroom, Adarsh Nagar, Andheri (East), Mumbai – 400 053, Maharashtra, India
Date of Birth/Age :	24.05.1958
Qualification :	M. Sc., B. Ed.
Date of Appointment :	30.12.2005
DIN No.:	00177072
Name :	Mr. Vikram Arun Kelkar
Designation :	Director
Address :	1102, Dheeraj Gourav Height-1, Near Hundai Showroom, Adarsh Nagar, Andheri (East), Mumbai – 400 053, Maharashtra, India
Date of Birth/Age :	17.11.1981
Qualification :	M.I.B.
Date of Appointment :	01.09.2005
DIN No.:	02302364
Name :	Mr. Nikhil Arun Kelkar
Designation :	Director
Address :	1102, Dhiraj Gaurav, Adarsh Nagar, Andheri (East), Mumbai – 400 053, Maharashtra, India
Date of Birth/Age :	16.12.1978
Date of Appointment :	30.09.2008
DIN No.:	02302369

KEY EXECUTIVES

Name :	Mr. Makrand
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 10.09.2010

Names of Shareholders	No. of Shares
Arun P. Kelkar	5266000
Subhash P. Kelkar	5206000
Anuradha A. Kelkar	4150000
Nutan S. Kelkar	350000
Vikram A. Kelkar	5785000
Nikhil A. Kelkar	718000
Sanjivani S. Dhopeshwarkar	1000000
Total	22475000

 As on 01.01.2011

Names of Allottees	No. of Shares
Arun P. Kelkar	400000
Subhash P. Kelkar	400000
Anuradha A. Kelkar	300000
Vikram A. Kelkar	450000
Nikhil A. Kelkar	124000
Nutan S. Kelkar	25000
Sanjivani S. Dhopeshwarkar	85000
Total	1784000

AS ON 10.09.2010

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

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Vitamins Premixes, Soft Drink Concentrate and Veterinary Feeds Supplements
Products :	Blending of Vitamins and Minerals Vitamins and Minerals Premix for Food Products Nutritional Health Drinks, Dietary Supplements Food Products Pharmaceuticals Products Animal / Veterinary Feed Supplements Ready to use Premixes Types of Premixes Soft Drink Concentrate Protein Heath Drinks Dietary Supplements Multivitamin Tablets Nutraceuticals Sports Nutrition Supplements
Exports :
Products :	Vitamins Premixes
Countries :	South Africa, Bangladesh, Kenya, Uzbekistan
Imports :
Products :	Vitamin Powder
Countries :	China, Singapore
Terms :
Selling :	L/C, TT, DA (90 Days)
Purchasing :	L/C, Credit, CAD

GENERAL INFORMATION

Suppliers:

(As on 31.03.2009)

Ø Progressive Instruments

Ø Omkar Enterprises

Ø Ramesh Engineering Works

Ø Lab Aids

Ø Gaylord Pharma System

Ø Zebra Pharma

Ø Classic Scientific

Ø Skylab Instruments and Engineering Private Limited

Ø Silverson Machines Limited

Ø Bio-Technics India

Ø Metrohm India Limited

Customers:

Manufacturer

No. of Employees :

120 Approximately

Bankers :

• Corporation Bank SME Branch, Bonanza Sahar Plaza, Andheri- Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra, India

• Oriental Bank of Commerce
• Greater Bombay Co-Operative Bank Limited

• HDFC Bank
• Barclays Bank
• Axis Bank Limited

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loan from Corporation Bank (Secured against hypothecation of Premises)	4.670	2.966
Cash Credit from Corporation Bank (Secured against hypothecation of Stocks and Debtors)	35.467	21.860
Post Shipment Credit from Corporation Bank (secured against hypothecation of stocks and debtors)	0.000	10.108
Packing Cash Credit from Corporation Bank (secured against hypothecation of stocks and debtors)	14.450	19.050
HDFC Car Loan (Secured against hypothecation of Car)	0.061	0.231
Demand Loan from Corporation Bank (Secured against personal guarantee of Directors)	0.000	1.473
Total	54.648	55.688

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Mrs. Dhopeshwarkar (Director’s Sister)	0.000	1.000
Barclays Bank	1.613	2.533
Axis Bank Limited C/A O/D	0.000	0.083
Corporation Bank C/A O/D (CBCA0038)	0.000	2.098
Total	1.613	5.714

Banking Relations :

--

Auditors :

Name :

Agharkar and Company

Chartered Accountants

Address :

Ground Floor, Plot No.31-B, Jaiprkash Nagar, Road No.3, Goregaon (East), Mumbai – 400 063, Maharashtra, India

Tel. No.:

91-22-26862743

Tele Fax No.:

91-22-26865196

E-Mail :

agharkar.co@rediffmail.com

Sister Concern:

Nivia Biotech

Hexagon Chemie

CAPITAL STRUCTURE

AS ON 10.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Re.1/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22475000	Equity Shares	Re.1/- each	Rs.22.475 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		22.475	18.000	3.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		54.573	14.292	18.134
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		77.048	32.292	21.134
LOAN FUNDS
1] Secured Loans		54.648	55.688	36.656
2] Unsecured Loans		1.613	5.714	7.618
TOTAL BORROWING		56.261	61.402	44.274
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		133.309	93.694	65.408
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		20.874	16.346	11.790
Capital work-in-progress		8.360	0.000	0.000
INVESTMENT		4.255	4.680	1.868
DEFERREX TAX ASSETS		0.148	0.148	0.148
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	60.836	45.393	18.549
	Sundry Debtors	75.169	40.761	38.123
	Cash & Bank Balances	15.257	1.510	1.878
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.201	20.591	13.999
Total Current Assets		165.463	108.255	72.549
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	56.223	27.703	16.343
	Other Current Liabilities	0.750	0.950	1.750
	Provisions	8.818	7.082	2.854
Total Current Liabilities		65.791	35.735	20.947
Net Current Assets		99.672	72.520	51.602
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		133.309	93.694	65.408

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

Expected Sales (2010-2011) : Rs.486.500 millions

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	390.410	210.130	142.830
		Other Income	3.340	0.930	0.750
		TOTAL (A)	393.750	211.060	143.580
Less	EXPENSES
		Operating Cost and Expenses	338.320	188.590	130.720
		TOTAL (B)	338.320	188.590	130.720
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		55.430	22.470	12.860
Less	INTEREST (D)		7.980	6.030	3.350
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		47.450	16.440	9.510
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.120	2.120	1.990
	PROFIT BEFORE TAX (E-F) (G)		44.330	14.320	7.520
Less	TAX (H)		0.000	0.270	0.560
	PROFIT AFTER TAX (G-H) (I)		44.330	14.050	6.960
	EARNINGS IN FOREIGN CURRENCY
		Net realized value of Exports	169.095	78.776	39.346
	TOTAL EARNINGS		169.095	78.776	39.346
	Earnings Per Share (Rs.)		1.97	0.78	23.20

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	11.26	6.66	4.85
Net Profit Margin (PBT/Sales)	(%)	11.35	6.81	5.27
Return on Total Assets (PBT/Total Assets}	(%)	23.79	11.49	8.92
Return on Investment (ROI) (PBT/Networth)		0.58	0.44	0.36
Debt Equity Ratio (Total Liability/Networth)		1.58	3.01	3.09
Current Ratio (Current Asset/Current Liability)		2.51	3.03	3.46

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	56.223	27.703	16.343

REVIEW OF OPERATING RESULTS:

The Company continued to see profitable growth in the financial year 2009-10 across all market segments.

For the year ended 31^st March 2010 the company has earned total income of Rs.393.750 millions as per consolidated accounts, an increase of 86% over the previous year’s total income of Rs.211.060 millions.

The net profit of the company for the year increased to Rs.44.330 millions (11.26% of the total income) as compared to Rs.14.320 millions (6.78% of total income) in the previous year.

FORM 8:

Corporate identity number of the company	U24110MH1993PTC072189
Name of the company	HEXAGON NUTRITION PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	404, Global Chamber, Adarsh Nagar, Link Road, Andheri (West), Mumbai - 400 053, Maharashtra, India E-Mail: accounts@hexagonnutrition.com
This form is for	Modification of charge
Charge identification number of the modified	10011539
Type of charge	Immovable Property Book Debts Movable Property Others (Current Assets)
Particular of charge holder	Corporation Bank SME Branch, Bonanza Sahar Plaza, Andheri- Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra, India E-Mail: info@ca-adlalwani.com
Nature of description of the instrument creating or modifying the charge	1. Supplemental common deed of hypothecation 2. Letter of continuity (All the above agreement constitute a single charge)
Date of instrument Creating the charge	24.01.2011
Amount secured by the charge	Rs.180.900 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As stipulated by bank from time to time Terms of Repayment: As stipulated by bank from time to time Margin: As stipulated by bank from time to time Extent and Operation of the charge: First Charge (Present and Future) = Total Limit Rs.180.900 millions (Cash Credit Limit Rs.40.000 millions, Packing Credit = Rs.50.000 millions, FDBN/ FDBP/ FDBD = Rs.27.500 millions, B.G. = Rs.10.000 millions, Inland/ Import Letter of Credit = Rs.35.000 millions, Term Loan (Review) = Rs.1.900 millions, Term Loan (Sanction) = Rs.16.500 millions) and/ or as stipulated by bank from time to time Others: As Stipulated by bank from time to time and as per agreement and as per sanction letter of the bank
Short particulars of the property charged	First charge (present and future on following assets) (1) hypothecation of all goods/ inventories/ stocks/ products kept at borrower place/ premises/ factories/ godowns etc. and/ or in transit or whereverelse including all goods/ assets brought under L.C. (2) Hypothecation of book debts and receivables of the company (3) Hypothecation of all current, movable and fixed assets of the company including all the assets purchased out of bank finance (4) EMG of office property Bearing No 404 - 4TH Floor, Global Chambers, Oshiwara Village, Adarsh Nagar, Link Road, Andheri -West, Mumbai 400 053 with all fixed assets (5) EMG of Plot No.92 with Industrial Const. thereon at P.O. Unanda Nagar, Lakhmapur Village, Dindori Tq. Nashik, District Maharashtra with building and fixed assets (6) EMG of Plot No B-11, Phase I, MEPZ-SEZ, Chennai 600045 along with superstructure in the nature of building (ground+1^st floor aggregate area - 6600 sq.ft and structural shed with ac sheet roofing admeasuring about 28000 sq.ft with hypothecation of all plant and machinery and assets (7) Hypothecation of all lab equipment, furniture and fixture, plant and machinery for setting up research and development centre including purchased out of bank finance
Particulars of the present modification	By this modification limit stands to Rs.180.900 millions (Cash Credit Limit Rs.40.000 millions, Packing Credit = Rs.50.000 millions, FDBN/ FDBP/ FDBD = Rs.27.500 millions, B.G. = Rs.10.000 millions, Inland/ Import Letter of Credit = Rs.35.000 millions, Term Loan (Review) = Rs.1.900 millions, Term Loan (Sanction) = Rs.16.500 millions), securities are continued as given by original charge as well as by modifications, terms and conditions as per agreement and as per sanction letter of the bank

FIXED ASSETS:

· Land (Freehold)

· Factory Building

· Electrical Fittings

· Plant and Machinery

· Computer and Printer

· Equipment

· Fax Machine

· Furniture and Fixture

· Motor Car

· New Office Premises

TRADE REFERENCE:

· Industrial Metal Powder Private Limited, Mumbai

· Shah Chemicals, Vadodara

· Trans Pak Silox,

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.46.38
UK Pound	1	Rs.74.01
Euro	1	Rs.64.48

SCORE & RATING EXPLANATIONS

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