MIRA INFORM REPORT

Report Date :

10.08.2012

IDENTIFICATION DETAILS

Name :	DESMO EXPORTS LIMITED
Registered Office :	C-108, TTC Industrial Area, Pawane MIDC, Navi Mumbai-400705, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.02.1993
Com. Reg. No.:	11-070652
Capital Investment/ Paid-up Capital:	Rs.39.123 Millions
CIN No.: [Company Identification No.]	U51397MH1993PLC070652
TAN No.: [Tax Deduction & Collection Account No.]	MUMD11792E
PAN No.: [Permanent Account No.]	AABCD0271E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Chemicals and HMs
No. of Employees:	28 (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 283000
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	A4+ (Short Term Bank loan)
Rating Explanation	This rating are considered to have minimal degree of safety regarding timely payment of financial obligation. Such instrument carry very high credit risk and are susceptible to default
Date	December 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/Factory :	C-108, TTC Industrial Area, Pawane MIDC, Navi Mumbai-400705, Maharashtra, India
Tel. No.:	91-22-27654062/27652473/27634390
Fax No.:	91-22-27801853
E-Mail :	info@desmoexports.com
Websites :	www.desmoexports.com
Area :	830 sq.ft
Location:	Owned
Corporate Office :	125, Arenja Arcade, Sector- 17, Vashi, Navi Mumbai- 400705, Maharashtra, India
Tel. No.:	91-22-61317500 (100 Lines) / 27654062 / 24652473/27880365
Fax No.:	91-22-27801853
E-Mail :	info@desmoexports.com sales@desmoexports.com
Website :	http://www.desmoexports.com
Area :	275 sq. ft.
Location:	Owned
Administration office:	204, Swasti House, 70, Kazi Sayed Street, Mumbai – 400033, Maharashtra, India
Branch Office :	Located at: · Ahmedabad · Delhi · Chennai

DIRECTORS

As on 16.09.2011

Name :

Mr. Jitendra Devki Yadav

Designation :

Director

Address :

2B – 16, Sector – 10, Koperkhairne, Navi Mumbai-400708, Maharashtra, India

Date of Birth/Age :

10.01.1967

Date of Appointment :

01.07.2003

Din No.:

00632185

Name :

Mrs. Rachana Dilip Jindal

Designation :

Director

Address :

J – 21, Row House No. 5, Sector – 6, Vashi, New Mumbai-400703, Maharashtra, India

Date of Birth/Age :

11.11.1968

Date of Appointment :

07.07.2007

Din No.:

00632366

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	U64100MH1986PTC041768	SPECTRUM COMMUNICATION PRIVATE LIMITED	Director	01/04/1997	01/04/1997	-	Active	NO
2	U70101WB1991PTC051429	MANGAL JYOTI NIKET PRIVATE LIMITED	Director	01/04/1997	01/04/1997	-	Not Available for eFiling	NO
3	U70101MH1991PTC148731	MANGALJYOTI NIKET PRIVATE LIMITED	Director	14/02/2001	14/02/2001	-	Active	NO
4	U65990MH1994PTC080773	DESMO CAPITAL AND FINANCE PRIVATE LIMITED	Director	12/10/2003	12/10/2003	-	Active	NO
5	U51397MH1993PLC070652	DESMO EXPORTS LIMITED	Director	07/07/2007	07/07/2007	-	Active	NO
6	U51101MH2000PTC125076	DIVYARATNA AGROTECH PRIVATE LIMITED	Director	22/12/2007	22/12/2007	-	Active	NO

Name :

Mr. Dilipkumar Mishrilal Jindal Jindal

Designation :

Director

Address :

J – 21, Rh – V, Sector – 6, Vashi, New Mumbai-400703, Maharashtra, India

Date of Birth/Age :

21.02.1964

Date of Appointment :

09.08.2002

Din No.:

01093009

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	U70101WB1991PTC051429	MANGAL JYOTI NIKET PRIVATE LIMITED	Director	01/04/1997	01/04/1997	-	Not Available for eFiling	NO
2	U64100MH1986PTC041768	SPECTRUM COMMUNICATION PRIVATE LIMITED	Director	01/04/1997	01/04/1997	-	Active	NO
3	U70101MH1991PTC148731	MANGALJYOTI NIKET PRIVATE LIMITED	Director	14/02/2001	14/02/2001	-	Active	NO
4	U51397MH1993PLC070652	DESMO EXPORTS LIMITED	Managing director	31/08/2011	09/08/2002	-	Active	NO
5	U65990MH1994PTC080773	DESMO CAPITAL AND FINANCE PRIVATE LIMITED	Director	12/03/2003	12/03/2003	-	Active	NO
6	U24110MH2000PTC127401	AINA CHEM PRIVATE LIMITED	Director	26/05/2003	26/05/2003	12/03/2012	Active	NO
7	U51101MH2000PTC125076	DIVYARATNA AGROTECH PRIVATE LIMITED	Director	22/12/2007	22/12/2007	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 16.09.2011

Names of Shareholders	No. of Shares
Dilip M Jindal	2467740
Rachna Dilip Jindal	861580
Krishna Jindal	44966
Mishrilal Jindal	448616
Shobha Agarwal	1000
Jitendra Yadav	1000
Dilip M Jindal (HUF)	87400
Total	3912302

As on 31.03.2012

Names of Allottees	No. of Shares
Desmo Exports limited	4

As on 16.09.2011

Category	Percentage
Directors or relatives of directors	99.98
Other top fifty shareholders	0.02
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Chemicals

Product:

PRODUCT DESCRIPTION	ITEM CODE NUMBER
Citic Acid	241
DCDA	241
Glycer	241
Gum Rosin	241
Hydrogen Peroxide	241
Maliec Anhydride	241
N-Butanol	241
Paraffin Wax	241
Phosphoric Acid	241
Potassium Hydroxide	241
Propylene Glycol	241
Soda Ash	241
Soduim Sulphate Anhydrous	241
STPP	241

PRODUCTION STATUS (As on : 31.03.2010):-

Particulars	Installed Capacity	Actual Production
Industrial Solvents	4000 (KL)	313.497 MT

GENERAL INFORMATION

No. of Employees :

28 (approximately)

Bankers :

· ICICI Bank Limited – Landmarkrace Cource Circle, Alkapuri, Vadodara – 390015, Gujarat, India

· HDFC Bank Limited, HDFC Bank Senapathi Bapat Marg, Lower Parel (West) Mumbai – 400013, Maharashtra, India

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2011	31.03.2010
Rupee term loans banks secured	51.079	51.634
Foreign currency loans banks secured	(A)215.639	0.000
Total	266.718	51.634

(A) (Secured against Hypothication of current Assets , Movable properties & receivables with personal Gute of Dir)

[100400]

UNSECURED LOAN	31.03.2011	31.03.2010
Rupee term loans banks unsecured	7.974	9.627
Rupee term loans financial institutions unsecured	5.844	2.575
Other debt unsecured	(A)7.254	0.527
Total	21.072	12.729

(A) Loan taken from Jindal Enterprise, an Associate Company

Banking Relations :	--
Auditors :
Name :	Chaplot and Company Chartered Accountants
Address :	105, Shreeji Arcade, Above HDFC Bank, Tilak Raod, Dombivali (East), Thane-421201, Maharashtra, India
Tel. No.:	91-251-2420718
Pan no..:	AAMPC9697D
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives:	Mangaljyoti Niket Private Limited U70101MH1991PTC148731 Spectrum Communication Private Limited U64100MH1986PTC041768 Jindal Enterprises Divyaratna Agrotech Private Limited U51101MH2000PTC125076

CAPITAL STRUCTURE

After 16.09.2011

Authorised Capital : Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.100.000 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs.10/- each	Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3912302	Equity Shares	Rs.10/- each	Rs.39.123 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		39.123	39.123	19.562
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		31.557	26.070	34.759
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		70.680	65.193	54.321
LOAN FUNDS
1] Secured Loans		266.718	51.634	52.318
2] Unsecured Loans		21.072	12.729	0.022
TOTAL BORROWING		287.790	64.363	52.340
DEFERRED TAX LIABILITIES		1.440	1.617	0.000
TOTAL		359.910	131.173	106.661
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		22.249	20.984	5.159
Capital work-in-progress		9.426	0.000	0.000
INVESTMENT		0.100	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	153.707	112.235	43.957
	Sundry Debtors	161.137	92.488	66.411
	Cash & Bank Balances	66.119	28.425	5.065
	Other Current Assets	32.181	18.492	0.000
	Loans & Advances	24.099	14.333	25.621
Total Current Assets		437.243	265.973	141.054
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	73.105	133.887
	Other Current Liabilities	24.327	17.441	24.628
	Provisions	11.850	4.539	14.924
Total Current Liabilities		109.282	155.867	39.552
Net Current Assets		327.961	110.106	101.502
MISCELLANEOUS EXPENSES		0.175	0.083	0.000
TOTAL		359.910	131.173	106.661

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1066.463	699.720	562.548
		Other Income	12.032	16.692	9.364
		TOTAL (A)	1078.495	716.412	571.912
Less	EXPENSES
		Consumption materials changes inventories	843.456	540.862
		Manufacturing service costs	164.756	127.604
		Employee related expenses	4.887	2.939
		Administrative selling other expenses	17.618	12.364
		TOTAL (B)	1030.717	683.769	541.012
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		47.778	32.643	30.900
Less	FINANCIAL EXPENSES (D)		21.178	13.431	7.891
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		26.600	19.212	23.009
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.221	2.225	0.787
	PROFIT BEFORE TAX (E-F) (G)		21.379	16.987	22.222
Less	TAX (H)		11.329	6.115	8.309
	PROFIT AFTER TAX (G-H) (I)		10.050	10.872	13.913
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		26.069	34.759	NA
	APPROPRIATIONS
		Transfer to General Reserve
		Dividend	4.562	NA	NA
		Tax on Dividend
	BALANCE CARRIED TO THE B/S		31.557	29.069	NA
	Earnings Per Share (Rs.)		2.57	2.78	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.93	1.52	2.43
Net Profit Margin (PBT/Sales)	(%)	2.00	2.43	3.95
Return on Total Assets (PBT/Total Assets}	(%)	4.65	5.92	15.20
Return on Investment (ROI) (PBT/Networth)		0.30	0.26	0.40
Debt Equity Ratio (Total Liability/Networth)		5.62	3.38	1.69
Current Ratio (Current Asset/Current Liability)		4.00	1.71	3.57

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	Yes
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes
Date of Birth of Proprietor/Partner/Director, if available	Yes
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if available	Yes

Contingent liabilities in respect of following corporate guarantees given by the Company viz

			31.03.2011
	Particulars of Guarantee given to	Credit facility Amount	Amountt (Rs. in Millions )
1	Kotak Mahindra Bank against Term Loans given to Mr. Dilipkumar Mishrilal Jindal.	Term Loan	Rs.30.000
2	Standard Chartered Bank against Banking Facilities to M/s. Mangal Jyoti Niket Pvt. Ltd.	L/C. Credit/ Buyer Credit Overdraft Limit Forex Forward LER	Rs. 17.500 Rs. 17.500 Rs. 4.950
3	I D B I Bank against Banking Facilities to M/s. Divyaratna Agrotech Pvt Ltd	L/C. Credit/ Buyer Credit Overdraft Limit	Rs.30.000 Rs.20.000

FIXED ASSETS

· Tankers

· Air Conditioner

· Boiler

· Computer

· D G Set

· Electrical Installation

· Factory Building

· Fax Machine

· Fire Fighting Equipments

· Furniture and Fixture

· Lease Hold Land

· Photocopier Machine

· Plant and Machinery

· Storage Tank

· Office equipment

· Tea/Coffee Machine

· Motor Bike

· Aquaguard booster

· Board camera

· UPS

· Television

AS PER WEB SITE DETAILS

PROFILE:

Subject established in the year 1993, is now one of the most reliable and capable chemical trading firms in chemical business community. The philosophy of customer satisfaction and long-term business enabled Subject to establish a solid business relationship with the leading suppliers and customers both in domestic and overseas

The Management of subject constitutes a Board Of Directors, with great experience and wisdom. "Excellence as a Foundation" and "WINNING as a Passion" is what describes their Managing Director Mr. Dilipkumar Jindal, who continuously steers his group companies to reinvent and redefine themselves

Vision Mission and Values

· To be the largest, most profitable, most respected chemical company in India.

· To constantly improve what is essential to human progress by mastering science and technology.

· Integrity and Respect for People.

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.55.17
UK Pound	1	Rs.86.43
Euro	1	Rs.68.27

INFORMATION DETAILS

Report Prepared by :

BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	4
--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	YES
--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.