MIRA INFORM REPORT

Report Date :

09.08.2012

IDENTIFICATION DETAILS

Name :	MONACHEM ADDITIVES PRIVATE LIMITED
Registered Office :	401/A, 4^th Floor, Synergy Square, Krishna Industrial Estate, Opposite BIDC, Gorwa, Vadodara - 390016, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.10.2007
Com. Reg. No.:	04-052058
Capital Investment / Paid-up Capital :	Rs.12.600 Millions
CIN No.: [Company Identification No.]	U24100GJ2007PTC052058
IEC No.:	3407004834
TAN No.: [Tax Deduction & Collection Account No.]	BRDM02948B
PAN No.: [Permanent Account No.]	AAFCM2739M
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Polymer Additives and Speciality Chemicals
No. of Employees :	40 (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 150000
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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	SE1B
Rating Explanation	Performance capacity of the company is highest and financial strength is moderate.
Date	29.09.2011

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office / Head Office :	401/A, 4^th Floor, Synergy Square, Krishna Industrial Estate, Opposite BIDC, Gorwa, Vadodara - 390016, Gujarat, India
Tel. No.:	91-265-3028999/ 3028900
Mobile No.:	91-9376236949 (Mr. Shamik Shah)
Fax No.:	91-265-3028990
E-Mail :	anant_shah@monachem.com shamil_shah@monachem.com dilip_shah@monachem.com sales@monachem.com
Website :	http://www.monachem.com
Area :	2000 sq. ft.
Location :	Owned

DIRECTORS

As on: 20.09.2011

Name :

Mr. Dilip Govindlal Shah

Designation :

Director

Address :

9/10, Sarswati Society, B/h Sevashray Society, Vasna Road, Vadodara – 390015, Gujarat, India

Date of Birth/Age :

23.01.1950

Qualification :

BSC

Date of Appointment :

25.10.2007

DIN No.:

01843830

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24100GJ2007PTC052058	MONACHEM ADDITIVES PRIVATE LIMITED	Director	25/10/2007	25/10/2007	-	Active	NO
2	U24119GJ2008PTC053734	ADDPOL CHEMSPECIALITIES PRIVATE LIMITED	Director	29/04/2008	29/04/2008	-	Active	NO

Name :

Mr. Shamik Dilipkumar Shah

Designation :

Director

Address :

9/10, Sarswati Society, B/h Sevashray Society, Vasna Road, Vadodara – 390015, Gujarat, India

Date of Birth/Age :

24.07.1978

Qualification :

BE, Petro Chemical, MBA from USA

Date of Appointment :

25.10.2007

DIN No.:

01843803

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24100GJ2007PTC052058	MONACHEM ADDITIVES PRIVATE LIMITED	Director	25/10/2007	25/10/2007	-	Active	NO
2	U24119GJ2008PTC053734	ADDPOL CHEMSPECIALITIES PRIVATE LIMITED	Director	29/04/2008	29/04/2008	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 20.09.2011

Names of Shareholders	No. of Shares
Dilip G. Shah	1105000
Shamik D. Shah	155000
Total	1260000

As on: 20.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader and Importer of Polymer Additives and Speciality Chemicals

Products :

Production Description	ITC Code
DE 83 R Speciality Chemical	2903 69 90
Lithopone DS 30 %	3206 42 00
Lowlite 77	2933 39 90

· Adhesives

· Coated Fabrics

· Coatings

· Composites

· Elastomers

· Inks

· Lubricants

· Optical Lens

· Petrochemical

· Plastics (Masterbatch and Compounds)

· Polyurethane

· PVC Conveyor Belts

· PVC Leather Cloth

· Refinery

· Rubber

· Wire and Cable

· Adsorbent

· Anti-oxidants

· Catalysts

· Catalyst Bed Supports

· Clarifying Agent

GENERAL INFORMATION

Suppliers :

· Lubrizol Advanced Materials India Private Limited

· Monachem Corporation

· Power System Infotech

· Shamik D Shah

· Kraton Polymers Japan Limited

· Kraton Polymers Nederland Bv

· Axel Polymers Limited,.(Purchase)

· Loxim Industries Limited,.(Purchase)

· Star Chemicals And Catalyst Company Limited

· Acomon Ag.

· Chemtura Sales Europe Gmbh

· Nantong Italmatch Chemicals Company Limited

· Ahuja Corporation

· Ajanta Road Carriers

· Amal Electricals

· Classic Plywood

· Dilip A. Goplani

· Easyway Services

· First Flight Couriers Limited

· Galav Chambers User's Association

· Gayatri Electricals

· Gms Express Private Limited (Nilkanth Enterprises)

· G. R. Enterprise

· Heart To Heart

Customers :

· Ace Chemical Corp

· Acomon Ag (Comm.)

· Advance Textile and Materials Private Limited

· Atul Limited (Commi)

· Catalyst Recovery of Singapore

· Chemtura Hong Kong Limited (Comm)

· Chemtura Sales Europe Gmbh (Commission)

· Faciasia Pacific Private Limited -Singapore (Commission)

· Gch Technologies Company Limited

· Intermediate Chemicals Company Limited (K.S.A)

· Italmatch Chemicals (Commission)

· Liaoyang Guanghua Chemical Company Limited (Comm.)

· Porocei Industries Llc (Commission)

· Sachtleben Chemie Gmbh.(Comm.)

· Star Chemicals And Catalysts Company Limited

· Wacker Cheme Ag (Commi)

· Pcc Chemax Inc.

· Asva Corporation

· Bhagyashree Colours Private Limited

· Bhagyashree Colours Private Limited

· Flexituff International Limited – Uttrakhand (Kashipur)

· Gujarat Craft Industries Limited

· Kaival Plast Industries

· Kandui Fillerteknik

No. of Employees :

40 (Approximately)

Bankers :

· HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel, West, Mumbai - 400013, Maharashtra, India

· ICICI Bank

· Kotak Mahindra Bank

· Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
From Bank	38.843	32.191
Total	38.843	32.191
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
From entities other than bank i.e. Director Loans repayable within one year)	5.212	(2.178)
Total	5.212	(2.178)

Banking Relations :	--
Auditors :
Name :	Lalpuria Patel and Associates Chartered Accountant
Address :	318/ 319/ 320, Saffron Tower, Opposite Camp’s Corner, Fatehgunj, Vadodara – 390002, India
Tel. No.:	91-265-2786759/ 2794070
Fax No.:	91-265-2794070
E-Mail :	iqabaroda@gmail.com
PAN.:	AAAFL5406B
Relative Parties :	Monachem Corporation Addpol Chemspecialities Private Limited G. C. Shah and Company

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1260000	Equity Shares	Rs.10/- each	Rs.12.600 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		12.600	12.600	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		25.033	11.355	0.000
4] (Accumulated Losses)		0.000	0.000	(3.734)
NETWORTH		37.633	23.955	(3.634)
LOAN FUNDS
1] Secured Loans		38.843	32.191	0.000
2] Unsecured Loans		5.212	(2.178)	50.741
TOTAL BORROWING		44.055	30.013	50.741
DEFERRED TAX LIABILITIES		0.185	0.207	0.019
TOTAL		81.873	54.175	47.126
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.578	8.909	0.212
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.060	0.000	0.700
DEFERREX TAX ASSETS		0.034	0.051	1.643
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	33.058	33.573	29.052
	Sundry Debtors	49.248	56.519	38.831
	Cash & Bank Balances	1.426	0.846	5.848
	Other Current Assets	0.000	0.000	0.005
	Loans & Advances	11.378	6.193	6.607
Total Current Assets		95.110	97.131	80.343
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.316	44.899	34.778
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	9.593	s7.017	0.994
Total Current Liabilities		24.909	51.916	35.772
Net Current Assets		70.201	45.215	44.571
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		81.873	54.175	47.126

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	412.581	292.478	187.358
		Other Income
		TOTAL (A)	412.581	292.478	187.358
Less	EXPENSES
		Office Expenses
		Administrative Expenses	387.368	264.644	189.323
		Advertising Expenses
		TOTAL (B)	387.368	264.644	189.323
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		25.213	27.834	(1.965)
Less	FINANCIAL EXPENSES (D)		3.702	4.933	3.321
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		21.551	22.901	(5.286)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.728	0.312	0.031
	PROFIT BEFORE TAX (E-F) (G)		20.783	22.589	(5.317)
Less	TAX (H)		7.105	7.499	1.583
	PROFIT AFTER TAX (G-H) (I)		13.678	15.090	(3.734)
	BALANCE CARRIED TO THE B/S		25.033	11.355	(3.734
	EARNINGS IN FOREIGN CURRENCY		5.909	4.098	0.837
	TOTAL IMPORTS		156.615	76.829	13.273
	Earnings Per Share (Rs.)		10.86	11.98	(373.46)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.32	5.16	(1.99)
Return on Total Assets (PBT/Total Assets}	(%)	19.48	21.30	(6.60)
Return on Investment (ROI) (PBT/Networth)		0.55	0.94	(1.46)
Debt Equity Ratio (Total Liability/Networth)		1.83	3.42	(23.81)
Current Ratio (Current Asset/Current Liability)		3.82	1.87	2.25

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	(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	(Yes)
17]	Major suppliers	(Yes)
18]	Major customers	(Yes)
19]	Payments terms	(No)
20]	Export / Import details (if applicable)	(No)
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
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)
31]	Date of Birth of Proprietor/Partner/Director, if available	(Yes)
32]	PAN of Proprietor/Partner/Director, if available	(No)
33]	Voter ID No of Proprietor/Partner/Director, if available	(No)
34]	External Agency Rating, if available	(Yes)

CONTINGENT LIABILITY:

Company has given guarantee on behalf of its one of the Director to Kotak Mahindra Bank for availing personal loan by Director, during the year under Audit.

Gross amount of Loan sanctioned is Rs.3.000 Millions as on 31.09.10 till 10.10.12.

Amount outstanding as at 31.03.11 Rs.2.227 Millions

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U24100GJ2007PTC052058
Name of the company	MONACHEM ADDITIVES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	401/A, 4^th Floor, Synergy Square, Krishna Industrial Estate, Opposite BIDC, Gorwa, Vadodara - 390016, Gujarat, India E-mail: dilip_shah@monachem.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10177678
Type of charge	Book Debts Movable Property Floating charges
Particular of charge holder	HDFC Bank HDFC Bank House, Senapati Bapat Marg, Lower Parel, West, Mumbai-400013, Maharashtra, India E-mail: RBBform8@hdfcbank.com
Nature of instrument creating charge	Supplementary Letter of Hypothecation.
Date of instrument Creating the charge	10.12.2011
Amount secured by the charge	Rs.53.300 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest at the rate as may be communicated by the bank from time to time Terms of Repayment On demand Margins As may be stipulated by the Bank from time to time. Extent and operation of the charge Hypothecation by way of First Charge on Company's Stocks and Book Debts etc, as a continuing security as mentioned in Column No.15 to secure below for the repayment of Rs.53.300 Millions together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Stock in Trade, consisting of raw materials, goods in process of manufacturing finished goods, and other merchandise whatsoever being movable properties All the debts, that is, all the book debts, outstanding, monies receivables, claims, bills, invoice documents, contracts, guarantees, and rights
Date of instrument modifying the charge	25.06.2010
Particulars of the present modification	The Charge shall now stand increased from Rs.45.250 Millions to Rs.53.300 Millions against the security of Stocks and Book Debts of the Company.

FIXES ASSETS:

• Air Conditioner
• Computer Lan System
• Computer Printer
• Furniture
• Office Equipment
• Hyundai i-10
• Skoda Laura
• Bicycle
• Maruti Swift
• Computer Software

AS PER WEBSITE DETAILS:

PROFILE

They are distinct, all-inclusive providers of polymer additives and speciality chemicals to Masterbatch, Compounds, PVC, Thermoset/Composites, Inks, Coatings, Adhesives, Sealants, Refinery, Petrochemical, Elastomers, Pharma and Cosmetics/Personal Care industries across India. A leading speciality chemicals solution provider with over 500 customers all over the country, they offer an all encompassing product portfolio sustained by the manufacturing expertise of their business partners like Chemtura, Sachtleben, FACI, PCC Chemax, Italmatch Chemicals etc.

CERTIFICATIONS

NSIC CRISIL Performance and Credit Rating for Small Scale Industries

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.55.14
UK Pound	1	Rs.86.00
Euro	1	Rs.68.31

INFORMATION DETAILS

Report Prepared by :

NTH

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.