MIRA INFORM REPORT

Report Date :

13.02.2012

IDENTIFICATION DETAILS

Name :	SALICYLATE AND CHEMICALS PRIVATE LIMITED
Registered Office :	12, Jeera, Secunderabad, Hyderabad – 500003, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	06.02.1978
Com. Reg. No.:	01-2255
Capital Investment / Paid-up Capital :	Rs.17.000 Millions
CIN No.: [Company Identification No.]	U24110AP1978PTC002255
TAN No.: [Tax Deduction & Collection Account No.]	HYDS01796E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of 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 300000
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 :	12, Jeera, Secunderabad, Hyderabad – 500003, Andhra Pradesh, India
Tel. No.:	91-40-27562265/27171249/27174691/27171550
Fax No.:	91-40-27171249
E-Mail :	salicylates@sify.com salicylates@vsnl.net salipl@satyam.net.in
Website :	http://www.salicylates.com
Area :	1800 Sq. ft.
Location :	Owned (Commercial)
Factory :	A-25, Road No. 18, Nacharam Industrial Area, Hyderabad-500076, Andhra Pradesh, India
Branch Office :	5/44, Tardeo, Airconditioned Market, Tardeo, Mumbai-400034, Maharashtra, India
Tel. No.:	91-22-23514413/ 23513868
Fax No.:	91-22-23516076
E-Mail :	salicylates@vsnl.net
Website :	http://www.preservativesindia.com

DIRECTORS

AS ON 30.09.2010

Name :

Kanakalata Dineshchandra Sarvaiya

Designation :

Managing Director

Address :

42, Amoolya, 195, Walkeshwar Road, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

24.01.1937

Date of Appointment :

29.12.2008

Din No.:

02445309

Name :

Mr. Narayanan Mohana Madathil

Designation :

Director

Address :

27/23, 1, L.B. Nagar, R.K. Puram, P.O. Secunderabad-500056, Andhra Pradesh, India

Date of Birth/Age :

01.12.1956

Date of Appointment :

02.03.1998

Din No.:

01316458

Name :

Mr. Guruprasad Budhiraju

Designation :

Director

Address :

Plot No. 13, Gautami Nagar, Vanasthalipuram, Hyderabad-500070, Andhra Pradesh, India

Date of Birth/Age :

23.07.1946

Date of Appointment :

01.08.2006

Din No.:

01316448

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	U24110AP1978PTC002255	SALICYLATE AND CHEMICALS PRIVATE LIMITED	Director	01-08-06	01-08-06	Active	NO
2	U24297AP2006PTC050862	SALIPOL BIOCIDES PRIVATE LIMITED	Director	30-10-06	30-10-06	Active	YES

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Manish Kumar Kale	140
Kamal Kumar Khatri	100
Kanaka Latha D. Saravaiya	74295
Samir D. Saravaiya	31950
Neeta D. Saravaiya	840
Arti S. Saravaiya	23850
Medha D. Saravaiya	290
Ketan D. Saravaiya	1355
Falguni K. Saravaiya	8000
Jai S. Sarvaiya	11080
Meet K. Sarvaiya	200
Samir D. Sarvaiya and Arti S. Sarvaiya	200
Krishna S. Sarvaiya	10380
Jash K. Sarvaiya and Meet K. Sarvaiya	750
Jash K. Sarvaiya	1000
Arti S. Sarvaiya and Samir D. Sarvaiya	200
Ketan D. Sarvaiya and Falguni K. Sarvaiya	270
Falguni K. Sarvaiya and Ketan D. Sarvaiya	200
Jai S. Sarvaiya and Krishna S. Sarvaiya	900
Meet K. Sarvaiya and Jash K. Sarvaiya	100
Kanakalata D. Saravaiya ( HUF)	3700
Ketan D. Saravaiya ( HUF )	100
Samir D. Saravaiya ( HUF )	100
Total	170000

AS ON 30.09.2010

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Chemicals

Products :

Product Description	Item Code
Para Hydroxy Benzoic Acid	291639.09
Parabens	291639.09

PRODUCTION STATUS [AS ON 31.03.2010]

Particulars	Unit	Installed Capacity
PHBA	Mts	420
Parabens	Mts	1140
DMDM Hydantoin	Mts	360
Octyl Methoxy	Mts	360
Octyl Salicylate	Mts	180

Actual Production

Particulars	Production [Quantity Mts.]
Para Hydroxy Benzoic Acid	253.048
Parabens	1215.640
Others	764.382

GENERAL INFORMATION

No. of Employees :

40 [Approximately]

Bankers :

· State Bank of India, Nacharam I.A. Branch, Nacharam, Hyderabad-500076, Andhra Pradesh, India

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

Facilities :

Secured Loan	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
From State Bank of India
Term Loan	7.842	1.025
Working Capital	52.502	56.365
Hire Purchase Loans	0.151	0.405
Total	60.495	57.795
Unsecured Loan
Directors	0.200	0.000
Banks and Finance Companies	19.650	16.581
Trade Deposits	9.673	4.173
Total	29.523	20.754

Banking Relations :	--
Auditors :
Name :	CKS Associates Chartered Accountants
Address :	87, Nagarjuna Road, No. # 3, Gagan Mahal Colony, Hyderabad-500029, Andhra Pradesh, India
Pan No.:	AABFC2043A

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
170000	Equity Shares	Rs.100/- each	Rs.17.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		17.000	13.000	13.000
2] Share Application Money		0.000	1.000	0.000
3] Reserves & Surplus		58.763	33.760	23.419
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		75.763	47.760	36.419
LOAN FUNDS
1] Secured Loans		60.495	57.795	46.391
2] Unsecured Loans		29.523	20.754	17.965
TOTAL BORROWING		90.018	78.549	64.356
DEFERRED TAX LIABILITIES		3.285	2.138	2.830
TOTAL		169.066	128.447	103.605
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		58.947	26.255	27.918
Capital work-in-progress		3.822	2.091	0.156
INVESTMENT		0.450	0.100	0.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	53.747	56.840	47.730
	Sundry Debtors	131.350	95.289	57.621
	Cash & Bank Balances	17.797	23.366	4.143
	Other Current Assets	1.464	3.933	9.771
	Loans & Advances	15.870	10.469	7.761
Total Current Assets		220.228	189.897	127.026
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	96.377	79.358	46.259
	Other Current Liabilities	5.411	4.240	3.073
	Provisions	12.593	6.298	2.263
Total Current Liabilities		114.381	89.896	51.595
Net Current Assets		105.847	100.001	75.431
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		169.066	128.447	103.605

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	587.503	400.166
		Other Income	2.481	4.645
		TOTAL (A)	589.984	404.811	276.364
Less	EXPENSES
		Office Expenses
		Administrative Expenses	535.002	376.747	264.361
		Advertising Expenses
		TOTAL (B)	535.002	376.747	264.361
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		54.982	28.064
Less	FINANCIAL EXPENSES (D)		10.024	6.795
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		44.958	21.269
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.534	3.981
	PROFIT BEFORE TAX (E-F) (G)		40.424	17.288	12.003
Less	TAX (H)		15.421	6.824	4.537
	PROFIT AFTER TAX (G-H) (I)		25.003	10.464	7.466
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.259	0.919	NA
	APPROPRIATIONS
		Transfer to General Reserve	22.500	10.000	NA
	BALANCE CARRIED TO THE B/S		3.762	1.259	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	428.455	244.309	NA
	IMPORTS
		Raw Materials	155.131	117.031	NA
		Purchase Trading	29.476	29.141	NA
	TOTAL IMPORTS		184.607	146.172	NA
	Earnings Per Share (Rs.)		147.00	80.49	57.43

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.23	2.58	2.70
Net Profit Margin (PBT/Sales)	(%)	6.88	4.32	NA
Return on Total Assets (PBT/Total Assets}	(%)	14.47	8.00	7.75
Return on Investment (ROI) (PBT/Networth)		0.33	0.36	0.33
Debt Equity Ratio (Total Liability/Networth)		2.70	3.53	3.18
Current Ratio (Current Asset/Current Liability)		1.93	2.11	2.46

LOCAL AGENCY FURTHER INFORMATION

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10312945
Corporate identity number of the company	U24110AP1978PTC002255
Name of the company	SALICYLATE AND CHEMICALS PVT LTD
Address of the registered office or of the principal place of business in India of the company	12, Jeera, Secunderabad, Hyderabad – 500003, Andhra Pradesh, India
Type of charge	Immovable Property
Particular of charge holder	HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India
Email	rbbform8@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Memorandum Recording Past Transactions of Creation of Mortgage by Delivery of Title Deeds
Date of instrument Creating the charge	24.10.2011
Amount secured by the charge	Rs.136.994 Millions
Brief particulars 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 Working capital facility shall be payable on demand. Term Loan facility shall be repayable in suitable installments. Margin As may be stipulated by the Bank from time to time. Extent and Operation of the charge The Company created an equitable mortgage by way of deposit of title deeds in respect of its immovable properties as stated under item No.15 as security for the due repayment of Rs.136.994 Millions by the Company including principal amount of the Facility, interest, liquidated damages, costs, charges and expenses etc.
Short particulars of the property charged	Plot Bearing No. A-25, Road No. 18. Survey No 57, Nacharam Village, IDA Nacharam, Ranga Reddy District Survey No. 290 and 291, Veliminedu Village and G.P., 2-24 Gts Veliminedu MP, Chityal ZP, Choutuppal, Nalgonda District
Particulars of the present modification	The Company created a mortgage by deposit of title deeds in respect of its immovable property being lying and situated at Ranga Reddy Dist and Nalgonda District as further security for repayment of monies due and payable under credit facilities of Rs.136.994 Millions sanctioned by the Bank to the Company.

FIXED ASSETS:

· land

· building

· plant and Machinery

· office Equipments

· computers

· furniture and Fixtures

· vehicles

WEBSITE DETAILS:

PROFILE:

Subject was incorporated on 1978, with the object of manufacturing organic chemicals, pharmaceuticals products. In the year 1982, the Sarvaiya family i.e. existing management took over the company. Initially, the company was manufacturing salicylic acid. In the due course of time the management changed the product mix and started the manufacturing of Para Hydroxy Benzoic Acid [PHBA]. In 1985, the management decided to manufacture parabens because of in house PHBA, which is the basic raw material.

In the year 1985 the company started the production of Parabens. The manufacturing facilities have been constantly upgraded over the years to meet the market and the environmental requirements. Parabens were produce for the domestic market. Subsequently the production was increased and we started entering the International Business.

Today, they have the complete range of preservatives and sunscreen chemicals for cosmetics and pharmaceutical industry. They understand the needs of the customers and we have develop wide range of preservatives for different applications in cosmetic industry like baby products, wipes, shampoos, creams, oral care lotions, lipsticks, and body wash etc. and cough syrups, ointments, tablets for pharmaceutical applications.

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.49.64
UK Pound	1	Rs.78.35
Euro	1	Rs.65.80

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	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.