MIRA INFORM REPORT

Report Date :

23.04.2012

IDENTIFICATION DETAILS

Name :	BALAJI SOURCINGS PRIVATE LIMITED
Registered Office :	Balaji Bhavan , 165 A, Railway Lines, Solapur – 413 001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.04.2006
Com. Reg. No.:	11-128357
Capital Investment / Paid-up Capital :	Rs. 30.000 Millions
CIN No.: [Company Identification No.]	U51434PN2006PTC128357
IEC No.:	3106002085
TAN No.: [Tax Deduction & Collection Account No.]	PNEB04979C
PAN No.: [Permanent Account No.]	AACCB8454E
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Methanol, Di Methyl Formamide, Di Methyl, Sulphoxide, Dicyandiamide (DCDA), Tetrahydrofuran, Propionic Acid, Toluene Di Isocyanide.
No. of Employees :	10 (5 in Office, 5 in Branch) (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 230000
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.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	Balaji Bhavan , 165 A, Railway Lines, Solapur – 413 001, Maharashtra, India
Tel. No.:	91-217-3090274
Mobile No.:	91-9819807073 (Mr. Vikas Shah)
Fax No.:	91-217-2310821
E-Mail :	info@balajisourcings.com info@balajisourcing.com finance@balajisourcinggs.com
Website :	www.balajisourcings.com
Location :	Rented
Administrative Office:	205, The Chambers, W.E. Highway, Vile Parle (East), Mumbai 400057, Maharashtra, India
Branch Office :	Located at: Mumbai Solapur Hyderabad Ahmedabad Gandhidham (Kandla) Bangalore Delhi Kolkata Jodhpur

DIRECTORS

AS ON 29.09.2011

Name :	Mr. Dundurapu Ram Reddy
Designation :	Managing Director
Address :	A /1 Gangadhar Housing Society, Opposite Hotel Kinara, Hotagi Road, Solapur – 413 003, Maharashtra, India
Date of Birth/Age :	20.10.1961
Qualification :	HSC
Date of Appointment :	20.04.2006
DIN No.:	00003864

Other Directorship:

.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	U45400MH1985PTC037464	BALAJI GREENFIELD TECHNO VENTURES PRIVATE LIMITED	Managing director	11-09-85	11-09-85	-	Active	NO
2	L24132MH1988PLC049387	BALAJI AMINES LIMITED	Whole-time director	01-04-10	15-01-89	-	Active	NO
3	U51503MH1994PTC082790	THIRUMALA PRECICASTS PRIVATE LIMITED	Whole-time director	10-11-94	10-11-94	-	Active	NO
4	U24230AP2005PLC045891	BALAJI GREENTECH PRODUCTS LIMITED	Director	15-04-05	15-04-05	28-03-08	Active	NO
5	U51434PN2006PTC128357	BALAJI SOURCINGS PRIVATE LIMITED	Managing director	15-03-08	20-04-06	-	Active	NO
6	U74999AP2005PTC046416	SVS PRODUCTS PRIVATE LIMITED	Director	25-05-06	25-05-06	-	Active	NO
7	U34300PN2008PTC131462	BALAJI ACCU-PRECI PARTS PRIVATE LIMITED	Director	21-02-08	21-02-08	-	Active	NO
8	U85100PN2010PTC135282	LOKMANGAL HOSPITALS PRIVATE LIMITED	Director	07-01-10	07-01-10	-	Active	NO
9	U24290PN2010PTC137138	SVS MEDICARE PRIVATE LIMITED	Director	18-08-10	18-08-10	17-09-10	Active	NO
10	U24299PN2010PTC137162	BALAJI BENZOCHEM PRIVATE LIMITED	Director	20-08-10	20-08-10	-	Active	NO
11	U24117PN2011PTC141818	BALAJI SPECIALITY FINE CHEM PRODUCTS PRIVATE LIMITED	Director	30-12-11	30-12-11	-	Active	NO
12	U15400AP2012PTC079358	SVS FOOD PROCESSORS PRIVATE LIMITED	Director	24-02-12	24-02-12	-	Active	NO

Name :	Mr. Vikas Mabgilal Shah
Designation :	Whole Time Director
Address :	B -1, Blue Heaven , Opposite Meghalaya, Flat Narayanpura, Ahmedabad – 380 013, Gujarat, India
Date of Birth/Age :	18.10.1981
Qualification :	M .Sc
Date of Appointment :	20.04.2006
DIN No.:	00036542

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24100MH2005PTC150735	OC SPECIALITIES PRIVATE LIMITED	Director	19-01-05	19-01-05	Active	NO
2	U51434PN2006PTC128357	BALAJI SOURCINGS PRIVATE LIMITED	Whole-time director	15-03-08	20-04-06	Active	NO

Name :	Mr. Virendra Bherumal Mehta
Designation :	Director
Address :	B-2, Blue Heaven, Opposite Meghalaya Flats, Naranpura, Ahmedabad-3800013, Gujarat, India
Date of Birth/Age :	14.04.1961
Date of Appointment :	01.09.2010
DIN No.:	00036579

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24100GJ2008PTC053898	OSWAL CHEM (INDIA) PRIVATE LIMITED	Director	15-05-08	15-05-08	Active	NO
2	U51434PN2006PTC128357	BALAJI SOURCINGS PRIVATE LIMITED	Director	24-09-10	01-09-10	Active	NO

Name :	Mr. Surjan Reddy Gaddam
Designation :	Director
Address :	H No10-106, Plot No.106, Near Water Tank, Meinakshi Estates Jeedimetla, Old Dheewan Dhaba, Hyderabad-500055, Andhra Pradesh, India
Date of Birth/Age :	26.07.1981
Date of Appointment :	01.09.2010
DIN No.:	03144985

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24290PN2010PTC137138	SVS MEDICARE PRIVATE LIMITED	Director	18-08-10	18-08-10	Active	NO
2	U51434PN2006PTC128357	BALAJI SOURCINGS PRIVATE LIMITED	Director	24-09-10	01-09-10	Active	NO
3	U24299PN2010PTC137162	BALAJI BENZOCHEM PRIVATE LIMITED	Additional director	15-09-10	15-09-10	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2011

Names of Shareholders	No. of Shares
Pratap Narayan Reddy	240000
Rajeshwar Reddy	87500
D Ram Reddy	390000
Vikas Mangilal Shah	600000
A Shankuladevi	10000
Eeshan Reddy	87500
Dipti Reddy	87500
D Vandana	10000
Balaji Amines Limited, India	900000
G Reddy	100000
N Saritha	37500
G Madhumathi	50000
Ande Reddy	50000
Virendra Mehta	150000
D Tanmai Reddy	25000
G Srujan Reddy	25000
Ocean Chemicals, India	150000
Total	3000000

AS ON 29.09.2011

Equity Shares Break Up	Percentage
Bodies corporate	35.00
Directors or relatives of Directors	65.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Methanol, Di Methyl Formamide, Di Methyl, Sulphoxide, Dicyandiamide (DCDA), Tetrahydrofuran, Propionic Acid, Toluene Di Isocyanide.
Products :	Mathanol Dicyandiamide Dimethyal Formamide

GENERAL INFORMATION

No. of Employees :

10 (5 in Office, 5 in Branch) (Approximately)

Bankers :

• ING Vysya Bank Limited, 182, East Mangal Warpet, P.B. No. 187, Solapur – 413 002, Maharashtra, India
• AXIS Bank Limited
• IDBI Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee term loans secured
Rupee term loans banks secured	113.933	51.986
Total	113.933	51.986
Notes: (A) AXIS Bank Limited, C.C. A/c. 266010300000286. : 47.412 Millions ING Vysya Bank Limited, Mumbai (CC.A/c)-552044004724. : 66.520 Millions (B) AXIS Bank Limited, C.C. A/c. 266010300000286. : 19.897 Millions ING Vysya Bank Limited, Mumbai (CC.A/c)-552044004724. : 32.089 Millions
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee term loans unsecured
Rupee term loans others unsecured	14.217	3.247
Total	14.217	3.247
Notes: (A) Balaji Cement Products Private Limited, Solapur. : 8.369 Millions D. Ram Reddy, Solapur. : 4.283 Millions D. Tanmai Reddy, Solapur. : 1.566 Millions (B) Balaji Cement Products Private Limited, Solapur. : 3.247 Millions D. Ram Reddy, Solapur. : 0 D. Tanmai Reddy, Solapur. : 0

Banking Relations :	--
Auditors :
Name :	Aherkar and Company Chartered Accountants
Address :	Battin Complex, 35, Ganesh Peth, Solapur – 413 005, Maharashtra, India
Tel. No.:	91-22-2600003
Fax No.:	91-22-2620223
E-Mail :	spr_aherkar@sancharnet.in

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		30.000	25.000	20.000
2] Share Application Money		0.000	0.000	1.050
3] Reserves & Surplus		29.442	21.196	10.401
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		59.442	46.196	31.451
LOAN FUNDS
1] Secured Loans		113.933	51.986	13.727
2] Unsecured Loans		14.217	3.247	1.752
TOTAL BORROWING		128.150	55.233	15.479
DEFERRED TAX LIABILITIES		0.024	0.026	0.051
TOTAL		187.616	101.455	46.981
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.249	0.119	0.189
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	32.635	13.779	30.804
	Sundry Debtors	281.534	218.186	190.410
	Cash & Bank Balances	2.179	11.971	29.232
	Other Current Assets	27.022	20.487	19.152
	Loans & Advances	3.803	7.345	3.369
Total Current Assets		347.173	271.768	272.967
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	155.695	164.270	222.336
	Other Current Liabilities	0.000	0.000	1.973
	Provisions	4.111	6.200	1.940
Total Current Liabilities		159.806	170.470	226.249
Net Current Assets		187.367	101.298	46.718
MISCELLANEOUS EXPENSES		0.000	0.038	0.074
TOTAL		187.616	101.455	46.981

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1026.695	664.326	704.770
		Direct Income		27.798	18.495
		Other Income		1.567	2.223
		TOTAL (A)	1026.695	693.691	725.488
Less	EXPENSES
		Cost of Sales	NA	650.285	698.114
		Selling, Administrative & General Expenses	1014.216	18.013	15.004
		Preliminary Expenses	0.046	0.054	0.037
		TOTAL (B)	NA	668.352	713.155
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	25.339	12.333
Less	FINANCIAL EXPENSES (D)		NA	8.278	6.320
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.479	17.061	6.013
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.061	0.074	0.094
	PROFIT BEFORE TAX (E-F) (G)		12.372	16.987	5.919
Less	TAX (H)		4.125	6.193	2.128
	PROFIT AFTER TAX (G-H) (I)		8.247	10.794	3.791
	EARNINGS IN FOREIGN CURRENCY		0.000	1.399	0.000
	Earnings Per Share (Rs.)		2.75	1.90	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.80	1.56	0.52
Net Profit Margin (PBT/Sales)	(%)	NA	2.56	0.84
Return on Total Assets (PBT/Total Assets}	(%)	3.56	6.25	2.17
Return on Investment (ROI) (PBT/Networth)		0.21	0.37	0.19
Debt Equity Ratio (Total Liability/Networth)		4.84	4.89	7.69
Current Ratio (Current Asset/Current Liability)		2.17	1.59	1.21

LOCAL AGENCY FURTHER INFORMATION

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

FORM 8

Corporate identity number of the company	U51434PN2006PTC128357
Name of the company	BALAJI SOURCINGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Balaji Bhavan , 165 A, Railway Lines, Solapur – 413 001, Maharashtra, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	ING Vysya Bank Limited, 182, East Mangal Warpet, P.B. No. 187, Solapur – 413 002, Maharashtra, India
Nature of instrument creating charge	Supplemental Deed of Hypothecation.
Date of instrument Creating the charge	22.03.2011
Amount secured by the charge	Rs. 170.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest CC :IVBR+4.25%p.a. WCDL(Sublimit to CC) :As negotiated from time to time ILC/FLC :As per bank norms LuT(Sublimit to ILC/FLC) :As per bank norms/As negotiated for specific transactions from time to time Terms of repayment CC : One Year WCDL(Sublimit to CC) : Maximum 181 days. ILC/FLC : Maximum 90 days LuT(Sublimit to ILC/FLC) : Maximum 90 days Margin CC : 25% on Inventory and receivables. WCDL(Sublimit to CC) : 25% on Inventory and receivables. ILC/FLC : 10% LuT(Sublimit to ILC/FLC) : 10% Extent and operation of the charge First pari passu charge on the entire current assets of the company both present and future along with Axis Bank under Multiple Banking Arrangement.
Short particulars of the property charged (Including location of the property)	Entire current assets of the company both present and future along with Axis Bank under Multiple Banking Arrangement.
Charge identification number of the charge to be modified	10022972
Particulars of the present modification	The limit has been enhanced from Rs.120.000 Millions to Rs.170.000 Millions as follows : Limit Existing Modified (Amount in Millions) CC 30.000 50.000 WCDL(Sublimit to CC) (30.000) (40.000) LC 90.000 120.000 LuT(Sublimit to LC) (50.000) (60.000) The hypothecation on the current assets of the company extended to the enhanced limit.

FIXED ASSETS

· Computer

· Furniture

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. 51.99
UK Pound	1	Rs. 83.53
Euro	1	Rs. 68.39

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	NO
--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.