MIRA INFORM REPORT

Report Date :

28.09.2011

IDENTIFICATION DETAILS

Name :	SALVI CHEMICAL INDUSTRIES LIMITED
Registered Office :	214, Blue Rose Industrial Estate, Western Express Highway, Borivali (East), Mumbai – 400066, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	10.10.2005
Com. Reg. No.:	11-156633
Capital Investment / Paid-up Capital :	Rs. 77.170 millions
CIN No.: [Company Identification No.]	U24230MH2005PLC156633
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter of Chemical and Pharmaceutical Products.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 590000
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 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. Ravi Nair
Designation :	Company Secretary
Contact No.:	91-22-28701438
Date:	27.09.2011

LOCATIONS

Registered Office :	214, Blue Rose Industrial Estate, Western Express Highway, Borivali (E), Mumbai – 400066, Maharashtra, India
Tel. No.:	91-22-28701438
Mobile No.:	91-9322272321 (Mr. Vijayan)
Fax No.:	91-22-28703656
E-Mail :	info@salvichem.com salvi@bom3.vsnl.net.in accounts@salvichem.com
Website :	www.salvichem.com
Area :	700 Sq. Fts
Location :	Owned
Unit 1 :	E – 93/94, MIDC, Tarapur, Boisar, Maharashtra, India
Tel. No.:	91-2525-728585
Area :	5000 Sq. Meters
Location :	Owned
Unit 2 :	E – 90, MIDC, Tarapur, Boisar, Maharashtra, India
Tel. No.:	91-2525-728585
Area :	5000 Sq. Meters
Location :	Owned

DIRECTORS

As On: 30.09.2010

Name :	Mr. Kantilal. N. Salvi
Designation :	Director
Address :	B 108, Ashoka Tower, Kulupwadi Road, Borivali (E), Mumbai – 400066, Maharashtra, India
Date of Birth/Age :	11.03.1945
Qualification :	B. Sc
Date of Appointment :	10.10.2005
DIN No :	00535466

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	U24230MH2005PLC156633	Salvi Chemical Industries Limited	Whole-time director	01/08/2006	10/10/2005	-	Active	NO
2	U51900MH2008PTC186057	Ferrox Chemicals Private Limited	Director	21/08/2008	21/08/2008	-	Active	YES

Name :	Mr. Nirav Salvi
Designation :	Director
Address :	B 108, Ashoka Tower, Kulupwadi Road, Borivali (E), Mumbai – 400066, Maharashtra, India
Date of Birth/Age :	30.03.1974
Qualification :	B. Sc
Date of Appointment :	10.10.2005
DIN No :	00535510

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	U24230MH2005PLC156633	Salvi Chemical Industries Limited	Managing director	01/08/2006	10/10/2005	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Mani
Designation :	Account Manager
Name :	Mr. Ravi Nair
Designation :	Company Secretary
Name :	Mr. Vijay
Designation :	Senior Manager in Accounts and Finance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Mr. Kantilal. N. Salvi	2588250
Mr. Nirav Salvi	2195025

AS ON 30.09.2010

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

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer and Exporter of Chemical and Pharmaceutical Products.

Products :

ITC Code No.	Product Description
29171940	Ferrous Fumarate
29051490	Methyl Iodide
29339900	3,5 Di-iodo Salicylic Acid

• Nutrition
• Intermediates
• Bulk Drugs
• Veterinary

Exports :

Products :

Chemicals and Pharmaceuticals

Countries :

· Indonesia

· USA

Imports :

Products :

Chemicals

Countries :

· European Countries

· China

· Japan

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

L/C, Cash, Credit

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

No. of Employees :

250 (Approximately)

Bankers :

· The Saraswat Cooperative Bank Limited (Lead Banker), SME Vile Parle Branch, Bholanath Cooperative Housing Society, Subhash Road, Vile Parle (East), Mumbai-400057, Maharashtra, India

· Bank of India

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
The Saraswat Co-operative Bank Limited (Term Loan)	10.074	3.418
The Saraswat Co-operative Bank Limited (Cash Credit)	35.986	32.581
The Saraswat Co-operative Bank Limited (P.C./FBN/Bill Discounting)	32.806	12.137
Bank of India (Cash Credit)	52.758	25.018
Bank of India (Term Loan)	36.672	46.668
TMl Finance Services Limited	0.000	0.168
HDFC Haallmark – Motor Car Loan	1.431	0.000
Total	169.727	119.990

Note:

All the above loans are secured by hypothecation of company’s plant and machinery for which term loan is taken and the cash credit is secured against the inventories and receivables. The aforesaid secured loans are personally guaranteed by the directors.

Banking Relations :	--
Auditors :
Name :	Patel and Kruup Chartered Accountant
Address :	6, Cresent Chambers, 1^st Floor, Tamrind Lane, Fort, Mumbai – 400023, Maharashtra, India
Tel. No.:	91-22-22670815
Sister Concern :	Nutra Care International Limited Address : Borivali – (W), Mumbai, Maharashtra, India Line of Business : Manufacturer and Exporter of Chemicals and Pharmaceuticals Products

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Share	Rs. 10 /- each	Rs. 75.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7497000	Equity Share	Rs. 10 /- each	Rs. 74.970 Millions
	Share Application Money- From Promoters		Rs. 2.200 millions
	Total		Rs. 77.170 millions

Notes:

Of the above 7497000 Equity Shares of Rs. 10 /- each fully paid up, 2590000 Equity Shares were issued and allotted pursuant to the Business Purchase Agreement dated 01.08.2006 and 994000 Shares were issued and allotted by conversion of Unsecured Loan without payment being received in cash in Financial Year 2006-07 to the erstwhile partners of Salvi Chemicals Industries and their family member.

As on 30.09.2010

Authorised Capital : Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.79.432 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		77.170	71.400	66.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		71.995	34.715	28.623
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		149.165	106.115	94.623
LOAN FUNDS
1] Secured Loans		169.727	119.990	63.697
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		169.727	119.990	63.697
DEFERRED TAX LIABILITIES		7.575	4.117	0.922
TOTAL		326.467	230.222	159.242
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		121.877	76.496	26.199
Capital work-in-progress		4.525	7.213	16.783
INVESTMENT		0.025	0.025	0.025
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	99.128	116.009	71.191
	Sundry Debtors	309.693	207.123	119.811
	Cash & Bank Balances	1.334	6.147	5.016
	Other Current Assets	13.465	3.519	18.404
	Loans & Advances	45.505	43.030	30.104
Total Current Assets		469.125	375.828	244.526
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	240.504	207.761	111.038
	Other Current Liabilities	6.237	5.672	3.298
	Provisions	22.703	16.415	14.591
Total Current Liabilities		269.444	229.848	128.927
Net Current Assets		199.681	145.980	115.599
MISCELLANEOUS EXPENSES		0.359	0.508	0.636
TOTAL		326.467	230.222	159.242

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	615.541	550.298	349.238
		Other Income	35.984	18.118	12.144
		TOTAL (A)	651.525	568.416	361.382
Less	EXPENSES
		Manufacturing Expenses	29.059	18.428	14.559
		Administrative Expenses	13.478	13.375	11.382
		Raw Material Consumed	514.284	460.130	282.217
		Other Manufacturing Expenses	6.317	3.573	2.652
		Export Expenses	8.305	8.425	6.695
		Increase/(Decrease) in Finished Goods	(5.172)	0.567	(3.125)
		Selling Expenses	8.384	5.475	6.611
		Loss doe to fire and Explosion Goods	0.000	0.000	1.378
		Loss doe to fire and Explosion Fixed Assets	0.000	0.000	2.889
		Prior Period Adjustment	0.000	5.564	0.000
		Foreign Exchange Fluctuation	0.000	15.444	0.000
		TOTAL (B)	574.655	530.981	325.258
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		76.870	37.435	36.124
Less	FINANCIAL EXPENSES (D)		18.292	18.728	7.976
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		58.578	18.707	28.148
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.377	4.047	1.709
	PROFIT BEFORE TAX (E-F) (G)		51.201	14.660	26.439
Less	TAX (H)		9.746	5.152	9.423
	PROFIT AFTER TAX (G-H) (I)		41.455	9.508	17.016
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		31.714	23.206	7.190
Less	APPROPRIATIONS
		Transfer to General Reserve	2.000	1.000	1.000
		Dividend Tax Paid	0.605	0.000	0.000
		Interim Dividend Paid	3.570	0.000	0.000
	BALANCE CARRIED TO THE B/S		66.994	31.714	23.206
	EXPORT VALUE		NA	150.079	153.024
	Earnings Per Share (Rs.)			1.33	2.58

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.36	1.67	4.71
Net Profit Margin (PBT/Sales)	(%)	8.32	2.66	7.57
Return on Total Assets (PBT/Total Assets}	(%)	8.66	3.24	9.77
Return on Investment (ROI) (PBT/Networth)		0.34	0.14	0.28
Debt Equity Ratio (Total Liability/Networth)		2.99	3.30	2.04
Current Ratio (Current Asset/Current Liability)		1.74	1.64	1.90

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	240.504	207.761	111.038

Note : Registered Office of the company has been shifted from B 108, Ashoka Tower Skulupwadi Road, Borivali (East), Mumbai – 400 066, Maharashtra, India to the present address w.e.f. 01.08.2006

NOTE : company was actually started in 1978 as a partnership concern with Name “ Savi Chemical Industries”. Mr. Kantilal N. Salvi was one of the partner of that firm. In year 10^th October 2005. This company was formed and taken over that partnership firm and company started activity from 01.08.2006

Form 8

Corporate identity number of the company	U24230MH2005PLC156633
Name of the company	SALVI CHEMICAL INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	214, Blue Rose Industrial Estate, Western Express Highway, Borivali (E), Mumbai – 400066, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	The Saraswat Cooperative Bank Limited (Lead Banker), SME Vile Parle Branch, Bholanath Cooperative Housing Society, Subhash Road, Vile Parle (East), Mumbai-400057, Maharashtra, India
Nature of instrument creating charge	Second Supplemental Joint Deed of Hypothecation Memorandum of Deposit for Creation of Further Charge for Term Loan/ Overall limit (where the initial charge created by way of Mortgage by Deposit of Title Deeds)
Date of instrument Creating the charge	19.06.2010
Amount secured by the charge	Rs. 332.801 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Saraswat Bank:14% p. a., Bank of India: 12%p.a. or at such rate as maybe determined by the consortium bankers from time to time Terms of repayment Term Loan: 66 months or as determined by the consortium bankers from time to time Cash Credit: On demand or as determined by the consortium bankers from time to time Margin 25% or as determined by the consortium bankers Extent and operation of the charge Saraswat Bank: Rs 17,79,01,000( cash credit : Rs 35.000 millions, standby limit of credit: Rs 3.500 millions, Term loan I Rs 0.479 million, Term Loan II Rs 1.176 millions, Term loan III: Rs 2.065 millions, Term loan IV: Rs 1.806 millions, Term loan New: Rs 0.075 million, Term Loan New Rs 1.125 millions, Term loan new : Rs 11.500 millions, Bank Guarantee: Rs 0.500 million, L/ C Rs 120.000 millions) Bank of India: Rs 15,49,00,000 (cash credit: Rs25.000 millions, Term loan I: Rs 38.300 millions, Term Loan II Rs 16.600 millions, L/C Rs 75.000 millions) Other The Saraswat Co-op Bank Limited are the lead bankers. Saraswat Bank and Bank of India have pari passu charge .
Short particulars of the property charged (Including location of the property)	Hypothecation by way of first charge on pari passu basis all the current assets of the borrower namely stocks for Raw materials, stock in process, semi finished and finished goods bills receivables book debts and all other movable both present and future at Plot no E90,93,94 and 95 and 131 MIDC Tarapur Boisar Dist at Plot no E90,93,94 and 95 and 131 MIDC Tarapur Boisar Dist Mortgage by deposit of title deed all that piece or parcel of factory land and building situated on E-90,E-93, E-94, E-95 at MIDC, Tarapur Boisar Thane District solely belonging to the company
Charge identification number of the charge to be modified	10082737
Date of instrument modifying the charge	25.03.2009
Particulars of the present modification	The present limit is Rs 33,28,01,000/-(Saraswat Bank: Rs 177901000( cc Rs 35.000 millions, standby limit of credit: Rs 3.500 millions, TLI Rs 0.479 million, TL II Rs 1.176 millions, TL III: Rs 2.065 millions, TL IV:Rs 1.806 millions, TL New: RS 0.075 millions, TL New Rs 1.125 millions, TL new : Rs 11.500 millions, Bank Guarantee: Rs 0.500 millions, L/C Rs 120.000 millions) Bank of India: Rs 154.900 millions (cc: Rs25.000 millions, TL I: Rs 38.300 millions, TL II Rs 16.600 millions, L/CRs 75.000 millions)

Fixed Assets:

• Land
• Factory Building
• Plant and Machinery
• Furniture and Fixtures
• Laboratory Equipment
• Computer
• Motor Cycle
• Scooter
• Air Conditioner
• Tata 407
• Cycle
• Office Equipment

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	NO
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

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.46.05
UK Pound	1	Rs.75.20
Euro	1	Rs.66.47

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.