MIRA INFORM REPORT

Report Date :

31.12.2012

IDENTIFICATION DETAILS

Name :	GANESH BENZOPLAST LIMITED
Registered Office :	Ganesh House, A-1/A-2, Grudutt Co-operative Housing Society Limited, Ajitnagar, Near Jankalyan Bank, J B Nagar, Andheri (East), Mumbai – 400 059, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.05.1986
Com. Reg. No.:	11-039836
Capital Investment / Paid-up Capital :	Rs.57.056 Millions
CIN No.: [Company Identification No.]	L24200MH1986PLC039836
TAN No.: [Tax Deduction & Collection Account No.]	MUMG10314D
PAN No.: [Permanent Account No.]	AAACG1259J
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer, Exporter and Importer of specialty chemicals, organic food preservatives, chemical food preservatives, synthetic food preservatives.
No. of Employees :	750 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Sick Unit
Payment Behaviour :	Slow and Delayed
Litigation :	--
Comments :	Subject is a Sick Unit and has been referred to BIFR. Profitability of the company is under pressure. There appear huge accumulated losses recorded by the company. Payments are reported as slow and delayed. The company can be considered for any business dealings on fully safe and secured 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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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.

INFORMATION PARTED BY

Name :	Mr. Anup
Designation :	Accounts Manager
Contact No.:	91-22-28390720
Date :	22.12.2012

LOCATIONS

Registered/ Corporate Office :	Ganesh House, A-1/A-2, Grudutt Co-operative Housing Society Limited, Ajitnagar, Near Jankalyan Bank, J B Nagar, Andheri (East), Mumbai – 400 059, Maharashtra, India
Tel. No.:	91-22-28390729/ 28390719/ 28390694/ 22002618/ 22039738/ 28390698/ 28321794/ 28593252/ 53 / 54 / 57
Mobile No.:	91-9867404504 [Mr. Ramakant Pilani]
Fax No.:	91-22-22086052/ 28390715/ 22068475/ 28505529/ 4412
E-Mail :	gbljbn@yahoo.com info@ganeshgroup.com shaileshpradhan2@yahoo.com anupdhav@ganeshgroup.com gbl@ganeshgroup.com
Website :	http://www.ganeshgroup.co.in
Area :	4500 sq. ft. [Approximately]
Located :	Owned
Factory 1 :	Chemical Division: D-5/2 and D-21/2/2, M.I.D.C. Industrial Area, Tarapur, District Thane, Maharashtra, India
Factory 2 :	Infrastructure Division: Jawaharlal Nehru Port (JNPT), Bulk Road, Nhava Sheva, Navi Mumbai – 400 707, Maharashtra, India
Tel. No.:	91-22-27241011

DIRECTORS

(AS ON 31.03.2011)

Name :

Mr. Nalinakshan Kolangaradath

Designation :

Director

Address :

602, Charle Ville, ‘A’ Road, Churchgate, Mumbai-400020, Maharashtra, India

Date of Birth/Age :

08.11.1942

Date of Appointment :

30.06.2007

DIN No.:

00114069

Name :

Mr. Gyan Bhanwarlal Chordia

Designation :

Director

Address :

Chaitiya Towers, F No.1103, 11^th Floor, S. H. Marg, Mazgaon, Mumbai-400010, Maharashtra, India

Date of Birth/Age :

01.07.1959

Date of Appointment :

28.06.2008

DIN No.:

00625473

Other Directorships :

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	U18108RJ1997PTC014054	RISHABH SUITINGS PRIVATE LIMITED	Director	25-07-97	25-07-97	-	Active	NO
2	L24200MH1986PLC039836	GANESH BENZOPLAST LIMITED	Director	29-09-08	29-09-07	-	Active	NO
3	U45202MH2010PTC205313	INDEXONE INFRACON AND LOGISTICS PRIVATE LIMITED	Director	07-07-10	07-07-10	04-02-12	Active	NO
4	L15142GJ1992PLC018745	GOKUL REFOILS AND SOLVENT LIMITED	Director	24-09-11	15-06-11	-	Active	NO

Name :

Mr. Rishi Ramesh Pillani

Designation :

Chairman

Address :

Shanti Sadan, 10, J. B. Nagar, Andheri (East), Mumbai-400059, Maharashtra, India

Date of Birth/Age :

29.04.1978

Date of Appointment :

29.06.2008

DIN No.:

00901627

Other Directorships :

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	U24200MH1982PTC028266	GANESH MEDICAMENT PVT LTD	Director	29-09-99	29-09-99	03-11-10	Active	NO
2	U65910MH1995PTC085998	GANESH INVESTMENTS AND FINANCIAL TECHNICS PRIVATE LIMITED	Director	01-03-00	01-03-00	-	Active	NO
3	U24100MH1990PLC058352	AUTHENTIC PETROPRODUCTS LIMITED	Director	29-09-00	29-09-00	22-01-11	Active	NO
4	U63032MH2001PLC130992	INFRASTRUCTURE LOGISTIC SYSTEMS LIMITED	Director	26-02-01	26-02-01	-	Active	NO
5	L24230MH1988PLC047243	FUTURISTIC OFFSHORE SERVICES AND CHEMICAL LIMITED	Whole-time director	31-01-02	31-01-02	-	Active	NO
6	L24200MH1986PLC039836	GANESH BENZOPLAST LIMITED	Managing director	30-09-11	18-10-06	-	Active	NO
7	U67120MH2008PTC177679	Susram Financial Services & Realty Private Limited	Director	10-01-08	10-01-08	-	Active	NO
8	U74140MH2008PTC186462	Ganesh Risk Management Private Limited	Director	04-09-08	04-09-08	-	Active	NO
9	U72900MH2010PTC199642	POONAM SOFTWARE SOLUTIONS PRIVATE LIMITED	Director	03-02-10	03-02-10	-	Active	NO
10	U70102MH2012PTC225916	Ganesh Vishal Infra Engineering Private Limited	Director	10-01-12	10-01-12	-	Active	NO

Name :

Mr. Raunak Ramakant Pilani

Designation :

Director

Address :

Shanti Sadan, 10, J. B. Nagar, Andheri (East), Mumbai-400059, Maharashtra, India

Date of Birth/Age :

11.11.1987

Date of Appointment :

28.06.2008

DIN No.:

00932269

Other Directorships :

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	U24290MH2005PTC154447	UNITED BIOCHEMICALS PRIVATE LIMITED	Director	11-11-05	11-11-05	-	Active	NO
2	U24230MH2005PTC153957	AGARWAL BULKACTIVES PRIVATE LIMITED	Director	24-11-05	24-11-05	17-05-10	Active	NO
3	U24239MH1999PLC122846	MILLENNIUM LIFECARE LIMITED	Director	30-04-07	30-04-07	-	Active	NO
4	L24200MH1986PLC039836	GANESH BENZOPLAST LIMITED	Director	29-09-08	28-06-08	-	Active	NO
5	U67120MH2008PTC177679	Susram Financial Services & Realty Private Limited	Director	18-08-08	18-08-08	-	Active	NO
6	U74140MH2008PTC186462	Ganesh Risk Management Private Limited	Director	04-09-08	04-09-08	-	Active	NO

Name :

Mr. Ramakant Pillani

Designation :

Director

KEY EXECUTIVES

Name :	Ms. Priyanka K Somani
Designation :	Practising Company Secretary
Name :	Mr. Anup
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2012)

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1472000	2.84
Bodies Corporate	15525101	29.98
Sub Total	16997101	32.82
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	16997101	32.82
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1100	0.00
Financial Institutions / Banks	6346535	12.26
Insurance Companies	11600	0.02
Foreign Institutional Investors	20000	0.04
Sub Total	6379235	12.32
(2) Non-Institutions
Bodies Corporate	9066429	17.51
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Millions	13309494	25.70
Individual shareholders holding nominal share capital in excess of Rs.0.100 Millions	4828011	9.32
Any Others (Specify)	1204023	2.33
Non Resident Indians	1204023	2.33
Sub Total	28407957	54.86
Total Public shareholding (B)	34787192	67.18
Total (A)+(B)	51784293	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	51784293	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of specialty chemicals, organic food preservatives, chemical food preservatives, synthetic food preservatives.

Products :

Products Description	Item Code No.
Benzoplast	291631.09
Benzoic Acid	291631.01
Sodiumbenzoate	291631.04

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Benzoic Acid**	MT	1800	1800	1384.560
Sodium Benzote***	MT	1800	1800	2175.040
Benzoplast (Benzoate Plasticizers)***	MT	9000	9000	691.935
Sodium Petroleum Sulphate***	MT	150	150	374.018
Industrial Iubricant***	MT	5000	5000	820.343

** Excluding captive consumption

*** Capacities of all the finished goods are interchangeable and can be utilized for different product mix.

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

750 (Approximately)

Bankers :

· Central Bank of India

Dina Building, Marine Line, Mumbai – 400002, Maharashtra, India

· Syndicate Bank

87, Alur House, Dr. A.B. Road, Worli, South Mumbai – 400018, Maharashtra, India

· Shramik Sahakari Bank Limited

· The Konkan Prant Sahakari Bank

· HDFC Bank

· Indian Overseas Bank

· Canara Bank

· State Bank of India

· ICICI Bank

J B Nagar Branch, India

Tel No.: 91-22-66493340/ 66493343

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Debentures
IFCI-Zero Coupon Bond	74.663	74.663
Interest Accrued And Due On Above		0.000
Term Loans
From Banks Rupee Loan	0.000	0.000
From Financial Institutions And Other Secured Lenders	--	--
Rupee Term Loan	1070.537	1077.287
Interest Accrued And Due On Above	1474.780	1505.105
Overdraft from Banks
Short term Bank Overdraft from Bank against Fixed Deposit	40.147	-
Total	2660.127	2657.055
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Optionally Convertible Debentures Issued to Promoters (361111.11 at Rs. 180 each)	--	65.000
Loans and Advances From - Others (Due within One year Rs. Nil Previous Year Rs. Nil)	4.326	6.151
- Shareholders (Due within one year Rs. Nil Previous year Rs. Nil)	204.628	199.263
-
Total	208.954	270.414

Banking Relations :	--
Auditors :
Name :	S. R. Batliboi and Company Chartered Accountant
Address :	Hindustan Times Building, 18-20, Kasturbha Gandhi Marg, 6^th Floor, New Delhi-110001, India
PAN No.:	AALFS0506L
Solicitors:
Name:	Little and Company, Mumbai
Membership :	Bombay Chamber of Commerce and the basic Chemicals, Pharmaceuticals and Cosmetics Export Council (CHEMEXCIL)
Enterprises owned or significantly influenced by key management personnel or their relatives :	· Futuristic Offshore Services and Chemical Limited · Agarwal Chemicals · Susram Financial Services and Techniques Private Limited · Agarwal Bulk Actives Private Limited · Ganesh Risk Management Private Limited · Ganesh Flexobenz Private Limited · Ganesh Energene Limited

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
40,00,00,000	Equity Share	Rs.1/- each	Rs.400.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5,17,84,293	Equity Share	Rs.1/- each	Rs.51.784 Millions
10,54,406	Forfeited Shares	Rs 5/- each	Rs.5.272 Millions
TOTAL			Rs.57.056 Millions

(Out of above 2,24,99,999 (Previous Year 1,88,88,888) Shares of Rs.1/- face value issued to Secured Lenders/Promoters at a premium of Rs.17 against cancellation of the their loan amount to the extent.)

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		57.056	53.445	34.556
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		812.573	1278.754	953.143
4] (Accumulated Losses)		(1812.327)	(2340.925)	(2234.352)
NETWORTH		(942.698)	(1008.726)	(1246.653)
LOAN FUNDS
1] Secured Loans		2660.127	2657.055	2861.215
2] Unsecured Loans		208.954	270.414	405.575
TOTAL BORROWING		2869.081	2927.469	3266.790
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1926.383	1918.743	2020.137
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1693.552	1804.367	1915.810
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.216	0.216	0.216
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	26.116	29.777	15.918
	Sundry Debtors	106.841	75.405	140.266
	Cash & Bank Balances	78.230	19.222	8.466
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	290.731	271.098	201.903
Total Current Assets		501.918	395.502	366.553
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	204.217	182.603	175.101
	Other Current Liabilities	56.798	92.490	81.966
	Provisions	8.288	6.249	5.375
Total Current Liabilities		269.303	281.342	262.442
Net Current Assets		232.615	114.160	104.111
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1926.383	1918.743	2020.137

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.032009
	SALES
		Income	450.887	271.665	124.958
		Service Income	508.492	442.821	267.755
		Other Income	5.408	8.039	9.859
		TOTAL (A)	964.787	722.525	402.572
Less	EXPENSES
		Raw Material Consumed	409.620	256.548	115.835
		Manufacturing, Administrative, selling and distribution expenses	213.306	226.582	362.448
		Personnel Expenditure	32.679	23.856	17.498
		Increase/(Decrease) in Finished Goods	0.374	(9.063)	(4.969)
		Exceptional Item	(7.991)	(10.425)	(685.496)
		Prior Period Expenses	3.282	3.569	284.920
		TOTAL (B)	651.270	491.067	90.236
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		313.517	231.458	312.336
Less	FINANCIAL EXPENSES (D)		135.749	164.720	68.010
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		177.768	66.738	244.326
Less/ Add	DEPRECIATION/ AMORTISATION (F)		176.739	173.311	224.967
	PROFIT BEFORE TAX (E-F) (G)		1.028	(106.573)	19.359
Less	TAX (H)		0.000	0.000	12.343
	PROFIT AFTER TAX (G-H) (I)		1.028	(106.573)	7.016
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(2340.925)	(2234.352)	(2241.368)
Less	APPROPRIATIONS
		Transferred to General Reserve	527.570	0.000	0.000
	BALANCE CARRIED TO THE B/S		(1812.327)	(2340.925)	(2234.352)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	81.150	28.680	26.200
	TOTAL EARNINGS		81.150	28.680	26.200
	IMPORTS
		Raw Materials	5.990	0.300	NA
		Stores & Spares	0.260	--	NA
	TOTAL IMPORTS		6.25	0.300	NA
	Earnings Per Share (Rs.)		0.02	(2.21)	0.24

Particulars	31.03.2012
Sales Turnover (Approximately)	1500.000

Expected Sales (2012-13): Rs.1600.000 Millions

The above information has been parted by Mr. Anup.

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011	31.03.2012	30.06.2012	30.09.2012
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter	5^th Quarter	6^th Quarter
Net Sales	250.380	222.790	295.370	272.480	257.340	304.760
Total Expenditure	162.030	140.170	193.050	181.790	163.490	196.580
PBIDT (Excl OI)	88.350	82.620	102.320	90.690	93.850	108.180
Other Income	0.000	1.540	1.620	1.440	1.420	3.040
Operating Profit	88.350	84.160	103.940	92.130	95.270	111.220
Interest	35.000	39.450	34.260	43.230	33.850	34.640
Exceptional Items	0.000	0.000	0.000	(6.230)	0.000	0.000
PBDT	53.350	44.710	69.680	42.670	61.420	76.580
Depreciation	44.600	44.040	44.510	41.360	44.780	44.780
Profit Before Tax	8.750	0.670	25.170	1.300	16.630	31.800
Tax	0.000	0.000	0.000	0.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000	0.000	0.000	0.000
Profit After Tax	8.750	0.670	25.170	1.300	16.630	31.800
Extraordinary Items	0.000	0.000	0.000	0.000	0.000	0.000
Prior Period Expenses	(1.160)	(0.370)	(1.180)	0.000	(0.560)	(0.070)
Other Adjustments	0.000	0.000	0.000	0.000	0.000	0.000
Net Profit	7.580	0.310	23.990	1.300	16.070	31.730

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.11	(14.75)	1.74
Net Profit Margin (PBT/Sales)	(%)	0.23	(39.23)	15.49
Return on Total Assets (PBT/Total Assets}	(%)	0.05	(4.84)	0.85
Return on Investment (ROI) (PBT/Networth)		0.00	0.11	(1.55)
Debt Equity Ratio (Total Liability/Networth)		(3.33)	(2.62)	(2.83)
Current Ratio (Current Asset/Current Liability)		1.86	1.41	1.40

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	Yes
10]	Designation of contact person	Yes
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	Yes
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)	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	No
30]	Major Shareholders, if available	No
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	No

NOTE:

The Registered office of the company has been shifted from Dina Building, 1^st Floor, M K Road, Marine Lines (East), Mumbai – 400002, Maharashtra, India, to the present address.

FINANCIAL RESULTS

The Gross revenue from Operations was Rs.995.04 Millions for the year as against Rs.731.280 Millions for the previous year. The operations for the year resulted in to a net profit of Rs.1.030 Millions as against net loss of Rs.106.57 Millions In the previous year.

FUTURE OUTLOOK:

Performance of the company is improving over the past years and directors are hopeful for better performance in the current year. The infrastructure division is running at almost optimum level, also chemical division is showing satisfactory capacity utilization compared to previous financial year. The company is vigorously pursuing various steps to improve sales, coupled with cost conservation measures to improve profitability in coming years.

INCOME TAX ASSESSMENTS:

The company’s Income tax assessment has been completed up to the A.Y.2008-09 and assessment for the A.Y.2009-10 is going on.

REFERENCE TO BIFR

In earlier years net worth of the company had been fully eroded, as a result company had approached to the Board for Industrial & Financial Restructuring (BIFR) for protection provided under The Sick Industrial Company’s (Special Provisions) Act, 1985. BIFR declared the company as sick unit in the meeting held on 6th May, 2010 & appointed IDBI as operating agency to prepare a revival scheme for the Company.

Preferential allotment of shares: During the year company has issued fresh shares at a premium to certain lenders and promoters against cancellation of their loans.

LEGAL CASES:

Company had filed civil and criminal cases against various parties for recovery of dues. As per the legal opinion and management perception Company will recover the substantial amount from the defaulting parties.

MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS OF THE COMPANY

The business of the company is presently organized in the following major segments –

CHEMICAL DIVISION

Manufacturing and marketing of specialized chemicals such as Benzoate Plasticizer, Benzoic Acid and spectrum preservatives. The Company is the only company in India to manufacture pure Benzoic acid, confirming to International standards of food grade. Sodium Benzoate & Benzoic acid both have huge demand in the International Markets mostly in the Industries like Food Processing, Fruit Processing Tooth Paste, Automobiles, Paints, Tobacco, Rubber, Antifreeze Coolant, Paper, Corrosion and Cutting Oils.

INFRASTRUCTURE DIVISION

Liquid chemical storage tanks which are leased on rent for storing liquid chemicals. The tanks are located presently at JNP (Nhava Sheva), Goa and Cochin. The Storage terminals are located at prime locations within the ports having full fledged facilities for import and export of Liquid Cargo.

MAIN SEGMENTS –

DIVISION	PRODUCTS COVERED	APPLICATION
Chemical	Sodium Benzoate USP/BP & Benzoic Acid USP/BP Benzoate Plasticizer Benzaldehyde Anisaldehyde	In squashes, crushes, jams, marmalade, sweetened mineral water, fruit-syrups, fruit jelly, etc.; in cosmetics - tooth paste, tobacco paste, glue starch and other roducts. Extensive usage in PVC processing, PVA emulsions, adhesive and ink industry and more. Pharmaceutical aids, flavoring agents. Pharmaceutical intermediate.
Infrastructure	Liquid Chemical Storage tanks	These Tanks are leased on rent for storing liquid chemicals.
Lube	Metal Working Fluids Cutting Oils Hydraulic Oils Neat Oils Sodium Petroleum Sulfonate Calcium Petroleum Sulfonate Extreme Pressure Additives Viscosity Index Improver	Lubricating oils for specialised metal working operations. Lubricating oil for cutting of ferrous metals. Used for hydraulic machines. For cutting of stainless steel & non ferrous metals. Raw material to manufacture emulsifier and other lubricants. Raw material to manufacture rust preventive oils, octane boosters. Used in the lubricating oils which are used in high pressure loads. Additive to improve the viscosity of oils.
Packages	Engine oil additives Gear oil additives Hydraulic additives Cutting oil concentrate Hi-Cal	To manufacture engine oils. Ready package for blending gear oils. To blend finishing hydraulic oils. For manufacturing cutting oils. High Performance furnace oil additive

HIGHLIGHT OF PERFORMANCE AND EVENTS

In the Chemical Division the scenario is improving in the domestic and international market which resulted in increase in turnover. During the year there was an increase in rentals due to increase in import. of petroleum products. The Company with aggressive marketing strategy has gained the confidence and the rentals have started improving as compared to last year.

MANUFACTURING FACILITIES

Located at the outskirts of Mumbai the Manufacturing facility of the company is equipped for specialized manufacturing activities as per the product range. The Company’s units were awarded ISO 9000. Ganesh group is known for their R&D base.

The company is the only manufacturer of Sodium Benzoplast in India. Benzoplast is a superior plasticizer as compared with other plasticizers like Di-octyl phthalate (DOP), benzyl butyl phthalate and other phthalates manufactured by our main competitors.

The Company manufactures Benzoic Acid and Sodium Benzoplast in its plant at Tarapur, by oxidation of Toluene. It is the only process to manufacture pure Benzoic Acid, conforming to international Standard for food grade.

The markets for products of the Company are well established with a good distribution network for domestic as well as export market. The Company is enjoying a good market share in India and abroad. In the infrastructure division the Company has constructed storage tanks for oils, petroleum and chemical industries. These tanks meet with stringent international standards with the state of the art instrumentation and safety standards. The tanks are located at JNP (Nhava Sheva), Goa and Cochin. The Company has the advantage of being a pioneer in handling liquid chemicals at JNPT and has also prime location advantage.

FINANCIAL REVIEW AND POSITION

The core business areas viz. specialized chemicals and infrastructure activities accounted for the bulk of the Company’s revenues during the year. The working for the year has resulted in net profit of Rs.1.03 Million as against net loss of Rs.106.57 million in the previous year. The Division wise PBIT / (loss) for the current year accounted for by Chemical Division loss Rs. 166.33 Million, Infrastructure Division Profit Rs.293 Million, with trading and other unallocable PBIT of loss Rs. 125.64 Million. The loss in Chemical Division is mainly on account

of unfavourable domestic and international markets, curtailment of production, steep increase in prices of raw materials and pressure on sales and selling prices coupled with unavailability of working capital. There has been a increase in the rental income of Infrastructure Division, better storage occupancy due to increase in import of petroleum products and edible oils The Company’s Ordinary share capital including forfeited shares stands at Rs.57.06 millions.

CONTINGENT LIABILITIES NOT PROVIDED FOR

Particulars	31.03.2011 (Rs. in millions)
Claims filed by Twenty Two parties before different courts against company not acknowledge as Debt including the claim partly acknowledged	89.91
Claims by Two co-operative banks by filing recovery suits in respect of guarantees alleged to have been issued by company	13.20
Contingent Liabilities in respect of pending Sales Tax re-assessment	50.00
Claim of The State Trading Corporation Limited in respect of unrealized exports bills of The State Trading Corporation Limited	113.50 -
Claim of Jawaharlal Nehru Port Trust and Marmagao Port Trust in Arbitration	Amount indeterminate -
Income Tax demand (Pertains to interest charged u/s 234A/B/C and 220(2) of I.T. Act 1961) in respect of Assessment Year 1999-00 and 2000-01. In this respect the company has approached to BIFR for waiver of overall interest. And looking in to company’s financial crisis the plea is likely to be accepted.	37.63 -

FIXED ASSETS:

· Land (freehold and leasehold)

· Buildings

· Plant and Machinery

· Residential flats at MIDC

· Office Premises

· Furniture and Fixtures

· Office Equipments

· Vehicles

· Computer

· Data Processing Equipments

BUSINESS DESCRIPTION:

Subject is a manufacturer and exporter of drug intermediates, pharmaceutical intermediates, bulk drug intermediates, food preservatives, lubricants and active pharmaceutical ingredient (API)/bulk drug. The Company operates in four divisions: Chemical, Infrastructure, Lube and Packages. The Chemical division is engaged in manufacturing and marketing of chemicals, such as benzoate plasticizer, benzoic acid and spectrum preservatives. Infrastructure division includes liquid chemical storage tanks, which are leased on rent for storing liquid chemicals. Its Lube division includes metal working fluids, cutting oils, hydraulic oils, neat oils, sodium petroleum sulfonate, calcium petroleum sulfonate, extreme pressure additives and viscosity index improver. Its packages division includes engine oil additives, gear oil additives, hydraulic additives, cutting oil concentrate and Hi-cal. For the nine months ended 31 December 2010, Ganesh Benzoplast Limited's revenues increased 46% to RS715.3M. Net income totaled RS23.7M, vs. a loss of RS25.8M. Revenues reflect an increase in income from Chemical division and higher revenue from Infrastructure Business division. Net income also reflects a decrease in general & administration expenses, a significant increase in gross profit margins and the presence of operating profit vs. a loss.

Subject is a chemical intermediates manufacturing company in India. The company is engaged in the production and export of a range of pharmaceutical intermediates, drug intermediates, bulk drug intermediates, food preservatives, lubricants, and API/bulk drugs. It offers various Food Preservatives such as benzoic acid, sodium benzoate, and benzoate plasticizers, and Petroleum Sulphonates including sodium Petroleum sulphonate, barium petroleum sulphonate, calcium petroleum sulphonate, and magnesium petroleum sulphonate. GBL is also specialized in the production of Lubricant Additives such as fluid, engine oil, and gear oil, hydraulic oil cutting oil, and 2t oil additives and Lubricant Components such as antioxidant chemicals, dispersant additives, extreme pressure additives, viscosity index improvers, pour point depressants, and polyisobutenyl succinic anhydrides. GBL is headquartered in Mumbai, India.The company reported revenues of (Rupee) INR 964.79 million during the fiscal year ended March 2011, an increase of 33.53% over 2010. The operating profit of the company was INR 1.03 million during the fiscal year 2011, whereas the company reported an operating loss of INR 106.57 million during 2010. The net profit of the company was INR 1.03 million during the fiscal year 2011, whereas the company reported a net loss of INR 106.57 million during 2010.

BOARD OF DIRECTORS:

Rishi R. Pilani

Shri. Rishi R. Pilani is Executive Chairman of the Board, Managing Director of Ganesh Benzoplast LIimited. He was appointed on the Board of the Company on 18.10.2006. His qualification includes B.E.(Chem), M.S(Finance),M.S(Ind.Eng). Since his appointment, he is playing a pivotal role in the management of the Company. His has experience on Finance and Technical aspects.

Gyan Chordia

Shri. Gyan Chordia is Non-Executive Independent Director of Ganesh Benzoplast Limited on June 28, 2008. His experience lied in the field of Finance. He holds B.Com, ICWA, ACS degrees.

Nalinakshan K.

Shri. Nalinakshan K. is Non-Executive Independent Director of Ganesh Benzoplast Limited. He has experience in Urban Development, Infrastructure, Port & Shipping. He holds M.A. (Gold Medalist).

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 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 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.54.96
UK Pound	1	Rs.88.68
Euro	1	Rs.72.45

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NIT

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.