MIRA INFORM REPORT

Report Date :

26.09.2011

IDENTIFICATION DETAILS

Name :	STERLING AUXILIARIES PRIVATE LIMITED
Registered Office :	30/31, Marol Co-Operative, Industrial Estate. M.V Road, Andheri – East, Mumbai – 400059, Maharasahtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	25.07.1985
Com. Reg. No.:	11-036959
Capital Investment / Paid-up Capital :	Rs. 9.816 Millions
	U74999MH1985PTC036959
CIN No.: [Company Identification No.]
TAN No.: [Tax Deduction & Collection Account No.]	MUMS42830E
PAN No.: [Permanent Account No.]	AAAC5916Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Chemical Auxiliaries

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 833000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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 :	30/31, Marol Co-Operative, Industrial Estate. M.V Road, Andheri – East, Mumbai – 400059, Maharasahtra
Tel. No.:	91-22-40320198/40320000
Mobile No.:	91-22-28597892
E-Mail :	gksalian@artekchemicals.com
PLANT 1:	L-3, Navapur Road, M.I.D.C, Tarapur , Boisar – 401506 , India
Tel. No.:	91-952525-325557
Fax No.:	91-952525-271317
PLANT 2:	Plot No. 12/A-2, G.I.D.C., At PO: Dahej, Taluka – Vagra, Dist: Bharuch, Gujarat – 392130, India

DIRECTORS

As on 30.09.2010

Name :

Mr. Anish Rajendra Goenka

Designation :

Director

Address :

20, Vinayak Kunj, 12^th Road, Jai Hind Society, JVPD Scheme, Vile Parle (West) , Mumbai - 400049 , India

Date of Birth/Age :

06.06.1977

Date of Appointment :

05.10.2000

DIN No.:

00016688

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	U72100MH1999PTC121051	AG TECHNOLOGIES PRIVATE LIMITED	Director	29/07/1999	29/07/1999	-	Active	NO
2	U51900MH1999PTC122297	SARANG PROPERTY DEVELOPERS PRIVATE LIMITED	Director	27/10/1999	27/10/1999	08/12/2008	Active	NO
3	U74999MH1985PTC036959	STERLING AUXILIARIES PVT LTD	Director	05/10/2000	05/10/2000	-	Active	NO
4	U52190MH2006PTC160089	VIVAAN FASHIONS PRIVATE LIMITED	Director	28/02/2006	28/02/2006	-	Active	NO
5	U45400MH2007PTC170309	SARANG CONSTRUCTIONS PRIVATE LIMITED	Director	25/04/2007	25/04/2007	-	Active	NO
6	U45400MH2007PTC170316	SARANG REALTY PRIVATE LIMITED	Director	26/04/2007	26/04/2007	-	Active	NO
7	U63090MH1990PTC058297	SHRI DHANYA TRAVELS PRIVATE LIMITED	Director	19/09/2009	19/09/2009	-	Active	NO
8	U24110MH1991PTC063138	ARTEK EXPORTS PRIVATE LIMITED	Whole-time director	30/09/2010	22/03/2010	-	Active	NO

Name :

Mr. Ajit Kantilal Parekh

Designation :

Director

Address :

E-Asamit, Bajaj Road, Vile Parle – West, Mumbai- 400056, Maharasahtra, India

Date of Birth/Age :

30.12.1949

Date of Appointment :

24.06.1986

DIN No.:

00163710

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	U74999MH1985PTC036959	STERLING AUXILIARIES PVT LTD	Director	24/06/1986	24/06/1986	-	Active	NO
2	U24100MH1987PTC044811	TRIUMPH NON IONICS PVT LTD	Director	18/08/2003	18/08/2003	-	Active	NO
3	U24247MH2002PTC136494	ARTEK HOME CARE PRIVATE LIMITED	Director	16/03/2005	16/03/2005	-	Active	NO
4	U24296MH2007PTC175631	KAWAKEN STERLING SURFACTANTS PRIVATE LIMITED	Director	02/11/2007	02/11/2007	15/01/2010	Active	NO

Name :

Mr. Sandeep Omprakash Chokhani

Designation :

Director

Address :

24, Chandabala, M.G.Road, Vile Parle – East, Mumbai – 400057, Maharasahtra, India

Date of Birth/Age :

03.05.2010

Date of Appointment :

17.01.2010

DIN No.:

02346782

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	U65990MH1981PTC024711	OM-KAILASH FINANCE AND INVESTMENTS PVT LTD	Additional director	30/09/2008	30/09/2008	20/06/2009	Active	NO
2	U45200MH1983PTC030375	NARPOLI INDUSTRIAL ESTATE PVT LTD	Additional director	23/03/2009	23/03/2009	-	Active	NO
3	U24296MH2007PTC175631	KAWAKEN STERLING SURFACTANTS PRIVATE LIMITED	Whole-time director	30/09/2010	28/11/2009	-	Active	NO
4	U74999MH1985PTC036959	STERLING AUXILIARIES PVT LTD	Whole-time director	30/09/2010	17/01/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Goenka Gangabux Beniprasad	591
Goenka Beniprasad Rajendra	7547
Goenka Rajendra Anish	9167
Goenka Sushil Anuj	8937
Goenka Beniprasad Rajendra	6197
Goenka Rajendra Amit	9267
Artek Surfin Chemicals Limited	15667
Goenka Sunil Anjanadevi	8913
Goenka Sushil Sushila	6167
Parekh Kantilal Ajit	1
Goenka Rajendra Asha	6167
Goenka Vishal Sejal	6167
Goenka Amit Payal	6167
Goenka Anuj Smriti	5833
TOTAL	96788

As on 24.01.2011

List Of Allot tees	No. of Shares Allotted
Mr. Sushil Beniprasad Goenka	460
Mr. Rajendra Beniprasad Goenka	459
Mr. Sunil Beniprasad Goenka	460
TOTAL	1379

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
EBodies corporate	16.19
Directors or relatives of Directors	40.20
Other top fifty shareholders	43.61
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Chemical Auxiliaries

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Oxide Condensates	Mtrs	20000	30000	22300669

GENERAL INFORMATION

No. of Employees :

(Approximately)

Bankers :

• Citi Bank N.A, Citi Group Center , Bandra Kurla Complex, G-Block, Bandra – East, Mumbai – 400051, Maharasahtra, India
• Royal Bank of Scotland N.V, 7^th Floor, Sakhar Bhavan, Nariman Point, Mumbai – 400021, Maharasahtra, India
• HDFC Bank

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loan From HDFC Bank	10.877	15.565
Credit Facilities From Citi Bank N.A Pre Shipment Export Credit Post Shipment Export Credit Cash Credit	155.227 19.256 66.868	174.457 53.474 28.429
Credits Facilities From the Hong Kong and Shanghai Banking Corporation Limited Pre Shipment Export Credit Post Shipment Export Credit Pre Shipment Export Credit Loan – Yes Bank	58.226 17.542 19.104	32.968 13.992 0.000
Total	347.100	318.885
Notes : Secured Loan a) Term Loan from HDFC Bank Limited is secured by - 1) Secured against property of a group company. b) Credit Facilities from Citi Bank N.A. is secured by :- i) First Charge on Stock and Book Debts ii) Personal Guarantees of major shareholders / relatives of a Director iii) Corporate Guarantees of a Company holding ,shares in this company c) Credits facilities from The Hongkong & Shanghai Banking Corporation Limited. is secured by i) Personal Guarantees of major shareholders / relatives of a Director ii) Corporate Guarantee of a Company holding shares in this company iii) First Pan Passu charge on present and future stocks and receivables. iv) First Pan Passu charge by way of equitable mortgage on the Tarapur Factory property v) First Pan Passu charge on all Fixed Assets including Land & Building and Plant & Machinery at Dahej. d) Credits facilities from YES Bank Limited is secured by :- i) First Pan Passu charge on present and future current assets. ii) Second pan passu charge on movable fixed assets iii) Corporate Guarantee of a Company holding shares in this company iv) Personal Guarantees of major shareholders / relatives of a Director.
Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Loans From Corporate and others	224.073	111.246
Sales Tax Defement Loan	12.981	13.576
Total	237.054	124.822

Banking Relations :
Auditors :
Name :	ASL AND COMPANY Chartered Accountant
Address :	102, Gauresh Apartment, Agarkar Chowk, Old Police Lines , Andheri – East, Mumbai – 400069, Maharasahtra, India
PAN.:	AAAFC1257B
Subsidiary :	KAWAKEN STERLING SURFACTANTS PRIVATE LIMITED
Cin Number :	U24296MH2007PTC175631

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
96788	Equity Shares	Rs.100/- each	Rs. 9.678 Millions

After 30.09.2010

Authorized Capital : Rs. 50.000 Millions

Paid up Capital : Rs. 9.816 Millions

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		9.679	1.100	1.000
2] Share Application Money		0.000	0.000	94.000
3] Reserves & Surplus		198.759	116.930	43.104
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		208.438	118.030	138.104
LOAN FUNDS
1] Secured Loans		347.100	318.885	237.434
2] Unsecured Loans		237.054	124.822	138.712
TOTAL BORROWING		584.154	443.707	376.146
DEFERRED TAX LIABILITIES		26.998	20.217	9.496
TOTAL		819.590	581.954	523.746
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		278.599	280.229	255.569
Capital work-in-progress		46.825	1.406	7.488
INVESTMENT		29.430	11.130	0.030
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	170.894	91.430	166.412
	Sundry Debtors	382.639	203.720	187.469
	Cash & Bank Balances	24.680	17.313	8.158
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	140.230	144.471	106.167
Total Current Assets		718.443	456.934	468.206
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	146.116	71.755	76.919
	Other Current Liabilities	100.062	92.629	130.628
	Provisions	7.529	3.361	0.000
Total Current Liabilities		253.707	167.745	207.547
Net Current Assets		464.736	289.189	260.659
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		819.591	581.954	523.746

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1875.367	1780.959	921.808
		Other Income	47.102	2.007	2.687
		TOTAL	1922.469	1782.966	924.495
Less	EXPENSES
		Increase / Decrease in Stock	(23.417)	55.434	(76.622)
		Labour Charges	1.193	7.800	6.768
		Other Expenses	1773.485	1582.486	951.235
		TOTAL	1751.261	1645.72	881.381
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		171.208	137.246	43.114
Less	Interest		21.647	24.437	19.577
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		149.561	112.809	23.537
Less/ Add	DEPRECIATION/ AMORTISATION		13.517	11.714	4.559
	PROFIT BEFORE TAX		136.044	101.095	18.978
Less	TAX		47.481	30.669	12.347
	PROFIT AFTER TAX		88.563	70.426	6.631
	Earnings Per Share (Rs.)		915.02	727.63	68.51

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.60	3.95	0.072
Net Profit Margin (PBT/Sales)	(%)	7.25	5.68	2.05
Return on Total Assets (PBT/Total Assets}	(%)	13.63	13.71	2.62
Return on Investment (ROI) (PBT/Networth)		0.65	0.86	0.14
Debt Equity Ratio (Total Liability/Networth)		4.02	5.18	4.23
Current Ratio (Current Asset/Current Liability)		2.83	2.72	2.26

LOCAL AGENCY FURTHER INFORMATION

JOINT VENTURE WITH KAWAKEN FINE CHEMICALS COMPANY LIMITED AND FORMATION OF SUBSIDIARY COMPANY.

The Company has infused more funds in to a joint venture agreement with Kawaken Fine Chemicals Company limited (Japan), Manufacturers of Surfactants, Catalysis and Speciality Chemicals, Accordingly a Joint Venture Company named as Kawaken Sterling Surfactants Private limited has been incorporated with total authorised capital of Rs 49.000 Millions divided in to 49,00,000 equity shares of Rs. 10/- each. With need for further development of the subsidiary Company has further subscribed by the Company are worth Rs.18.300 Millions divided in to 18,30,000 equity shares of Rs.10/- each (60.00% of the paid up capital of the joint venture company) and that of Kawaken Fine Chemicals Company limited is Rs.12 .000 Millions divided in to 12,00,000 equity shares of Rs.10/- each (40.00% of the paid up Capital of the joint venture company). Thus the joint venture company is formed as a subsidiary of the Company (Sterling Auxiliaries Private limited )

The joint venture has taken all necessary statutory approvals and it has been set up for manufacture, Exports or other wise deal in domestic and international brands of specialty chemicals, surfactants, auxiliaries and allied chemicals and chemical products. The Company has provided its plot at Dahej Gujarat for setting up of a manufacturing unit of Kawaken Sterling Surfactants Private limited. and full fledged manufacturing has been started as planed from June 2009 .

FORM 8

Corporate identity number of the company	U74999MH1985PTC036959
Name of the company	STERLING AUXILIARIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	30/31, Marol Co-Operative, Industrial Estate. M.V Road, Andheri – East, Mumbai – 400059, Maharasahtra, India Email ld : gksalian@artekchemicals.com
This form is for	Creation of charge
Type of charge	Books Debts Movable Property ( not being pledge) Floating Charge
Particular of charge holder	Foreign Bank : Royal Bank of Scotland N.V, 7^th Floor, Sakhar Bhavan, Nariman Point, Mumbai – 400021, Maharashtra, India Email ID – reenabang@rediffmail.com
Nature of instrument creating charge	Deed of hypothecation of movable Assets
Date of instrument Creating the charge	19.05.2011
Amount secured by the charge	Rs. 100.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest : As agreed and with the Bank From time to time Terns of Repayment : As agreed by and with the Bank from time to time Margin : As applicable , if any. Extent and operation of the charge : The Bank is having first pari passu charge on the security given by the Company, as described in sr. no15 below.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation by way of first pari passu charge on a) entire current assets ( stock and book debts) of the borrower, both present and future, b) entire movable fixed assets of the borrower , both present and future. (as more described in attached agreement)

FIXED ASSETS:

• Lease Hold Land
• Factory Building
• Electrical Fittings
• Plant and Machinery
• Electrical Installation
• Furniture and Fixture
• Air Conditioners
• Computers
• Equipment
• Vehicles

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.49.67
UK Pound	1	Rs. 76.57
Euro	1	Rs.66.98

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	6
--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	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.