MIRA INFORM REPORT

Report Date :

20.02.2012

IDENTIFICATION DETAILS

Name :	KEMIT CHEMICALS PRIVATE LIMITED
Formerly Known As :	RKM MACHINERY MANUFACTURING AND TRADING PRIVATE LIMITED
Registered Office :	41, 4^th Floor, Empire Tower, Panchvati C. G. Road, Near Associated Petrol Pump, Ellis Bridge, Ahmedabad – 382006, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.11.1993
Com. Reg. No.:	04-020592
Paid-up Capital :	Rs. 4.555 Millions
CIN No.: [Company Identification No.]	U24231GJ1993PTC020592
TAN No.: [Tax Deduction & Collection Account No.]	AHMK00202G
PAN No.: [Permanent Account No.]	AAACK5879N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Special Chemical are Prepared for Textile, Leather, Construction Chemical and Pesticides.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 46000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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 :	41, Empire Tower, Panchvati C. G. Road, Near Associated Petrol Pump, Ellis Bridge, Ahmedabad – 382006, Gujarat, India
Tel. No.:	91-79-65215206/ 65418659/ 65418659/ 26430726
Fax No.:	91-79-26421388
E-Mail :	roopalcs2001@gmail.com info@kemitchemicals.com kemit@icenet.net yogesh@kemitchemicals.com info@kemitchemicals.com keyur@kemitchemicals.com
Website :	www.kemitchemicals.com
Factory :	78/12, Near Special Refractories, Phase I, GIDC Vatwa, Ahmedabad – 382445, Gujarat, India
Tel No.:	91-79-25830382/65215208
Mobile :	91-9824548070 (Mr. Kuyer Desai)

DIRECTORS

As On 30.09.2011

Name :	Mr. Yogesh Kantilal Desai
Designation :	Chairman and Managing Director
Address :	85 Tapovan Society, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	19.06.1946
Qualification :	B. Sc.
Date of Appointment :	14.11.1993
DIN No.:	01287725
Name :	Mr. Keyur Yogesh Deshi
Designation :	Director
Address :	85 Tapovan Society, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	07.01.1974
Qualification :	M. BA
Date of Appointment :	29.12.2001
DIN No.:	01948902
Name :	Ms. Ruju Keyur Desai
Designation :	Director
Address :	RH/4, Punyashree, B/H, Jahanvee Restaurant, Ambawadi, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	07.10.1975
Date of Appointment :	30.09.2010
DIN No.:	03036488

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.09.2011

Names of Shareholders	No. of Shares
Yogeshbhai Kantilal Shah	9540
Yogeshbahi Kantilal Shah (HUF)	1230
Keyurbhai Y. Desai	9040
Gopiben Yogeshbhai Desai	10074
Mital Yogeshbhai Desai	5610
Raju Keyurbhai Desai	4198
Mansi M. Desai	4924
Ramdatt T. Shah	464
Rashmikant B. Shah	220
Dipalbhai T. Shah	250
Total	45550

As On 30.09.2010

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 :	Manufacturer and Exporter of Special Chemical are Prepared for Textile, Leather, Construction Chemical and Pesticides.
Products :	· Textile Auxiliaries · Dispersing Agent

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Actual Production
Dispersing Agents/ Textile Auxiliaries	Kgs.	2271953

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of India, Ahmedabad Main Branch, Mezza Nine Floor, BOI Building Bhadra, Ahmedabad – 380001, Gujarat, India

· HDFC Bank Limited, HDFC Senapati Bapat Marg, Lower Parel W, Mumbai – 400013, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
From Bank of India
Working Capital Loans
Cash Credit Facilities	0.000	0.459
Bills Discounting/Purchase Facilities	0.000	3.558
Term Loan	0.000	0.418
(Secured by way of First charge on hypothecation of Raw -materials, stock in process, Finished goods, stores and spares, packing materials, book debts and a second charge on the immovable properties of the Company)
HDFC Bank – Cash Credit Account	3.764	0.000
HDFC Bank – Bill Purchase Accounts**	0.814	0.000
(Secured by way of First charge on hypothecation of Raw- materials stock in process, Finished goods, stores and spares packing materials book debts and a second charge on the immovable properties of the Company)
HDFC Bank – Car Loan (Purchase under the hire purchase agreement)	0.286	0.446
Total	4.864	4.881
Unsecured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
From Directors	1.484	2.663
From Shareholders	5.313	4.795
Total	6.797	7.458

Banking Relations :	--
Auditors :
Name :	Rajesh Dudhara and Company Chartered Accountant
Address :	601/B, 6^th Floor, Harekrishna Complex, Pritamnagar Bus Stand, Ellisbridge, Ahmedabad – 380020, Gujarat, India
Tel. No.:	91-79-26675189
Mobile No.:	91-9427509685
Email :	sachnam@dataone.in rajesh_1917@yahoo.co.in
Pan No.:	AAJPD4324P

CAPITAL STRUCTURE

As On 31.03.2011

Authorised Capital:

No. of Shares	Type	Value	Amount
55000	Equity Shares	Rs.100/- each	Rs.5.500 Millions
45000	12% Non Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.4.500 Millions
	Total		Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
45550	Equity Shares	Rs.100/- each	Rs.4.555 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		4.555	4.555	9.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7.015	4.971	0.281
4] (Accumulated Losses)		0.000	0.000	(1.080)
NETWORTH		11.570	9.526	8.201
LOAN FUNDS
1] Secured Loans		4.864	4.881	5.464
2] Unsecured Loans		6.797	7.458	3.338
TOTAL BORROWING		11.661	12.339	8.802
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		23.231	21.865	17.003
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.713	3.549	2.001
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.005	0.005	0.005
DEFERREX TAX ASSETS		0.641	0.212	0.133
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.765	7.818	4.153
	Sundry Debtors	25.810	23.853	15.993
	Cash & Bank Balances	2.459	0.745	1.496
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.055	8.486	5.797
Total Current Assets		49.089	40.902	27.439
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	27.926	18.597	11.739
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	5.291	4.206	0.836
Total Current Liabilities		33.217	22.803	12.575
Net Current Assets		15.872	18.099	14.864
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		23.231	21.865	17.003

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	103.011	77.911	48.523
		Job work Charge Received	0.000	0.000	0.881
		Other Income	0.800	0.965	3.056
		TOTAL (A)	103.811	78.876	52.460
Less	EXPENSES
		Manufacturing Expenses	82.029	51.251	36.077
		Payments to Employees	4.395	3.305	1.639
		Selling Administrative and Other Expenses	12.191	14.942	12.877
		Increase/(Decrease) in Finished Goods	(0.281)	(0.605)	0.426
		Preliminary Expenditure Written off	0.000	0.000	0.019
		TOTAL (B)	98.334	68.893	51.038
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.477	9.983	1.422
Less	FINANCIAL EXPENSES (D)		1.646	1.023	0.678
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.831	8.960	0.744
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.345	0.569	0.576
	PROFIT BEFORE TAX (E-F) (G)		2.486	8.391	0.168
Less	TAX (H)		0.395	2.622	(0.034)
	PROFIT AFTER TAX (G-H) (I)		2.091	5.769	0.202
Less	PRIOR PERIOD EXPENSES		0.047	0.000	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.244	(1.080)	(1.282)
Less	APPROPRIATIONS
		Transfer to Capital Redemption Reserve	0.000	4.445	0.000
	BALANCE CARRIED TO THE B/S		2.288	0.244	(1.080)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	76.000	56.200	41.600
	TOTAL EARNINGS		76.000	56.200	41.600
	Earnings Per Share (Rs.)		44.87	29.07	4.45

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.01	7.31	0.39
Net Profit Margin (PBT/Sales)	(%)	2.41	10.77	0.35
Return on Total Assets (PBT/Total Assets}	(%)	4.46	18.88	0.57
Return on Investment (ROI) (PBT/Networth)		0.21	0.88	0.02
Debt Equity Ratio (Total Liability/Networth)		3.88	3.69	2.61
Current Ratio (Current Asset/Current Liability)		1.45	1.79	2.18

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF BUSINESS:

Increase the turnover and registering profit tax of Rs.2.090 Millions which was made possible through inserting capital equipments last year and better production planning. Directors are exploring various other opportunities to further improve the working results during the current year.

FORM 8:

Corporate identity number of the company	U24231GJ1993PTC020592
Name of the company	Kemit Chemicals Private Limited
Address of the registered office or of the principal place of business in India of the company	41 Empire Tower Panchvati, C G Road Near Associated Petrol Pump Ellisbridge, Ahmedabad, Gujarat, India E-Mail : yogesh@kemitchemicals.com
This form is for	Modification Charge
Charge identification (ID) number of the charge to be modified	10277619
Type of charge	Immovable Property
Particular of charge holder	HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India E-mail : RBBform8@hdfcbank.com
Nature of instrument creating charge	Memorandum Recording Past Transaction of Creation of Mortgage by Deposit of Title Deeds.
Date of instrument Creating the charge	21.05.2011
Amount secured by the charge	Rs.15.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Interest at the rate as may be communicated by the Bank from time to time. Terms of repayment: On Demand 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 security for the due repayment of Rs.15.000 Millions by the Company, including principal amount of the Facility, interest, liquidated damages, costs, charges and expenses etc. Other NIL
Particulars of the property charged	Immovable properties being Plot No.78/12 Adm-827.64 sq.mts in the scheme Vatva Industrial Estate forming part of Revenue Survey No.151 Paiki of Mouje Vinzol Sub District Ahmedabad-5 (Narol) and Regn District Ahmedabad, Gujarat, India
Particulars of the present modification	The present modification is for furnishing additional security of immovable property of the Company situated at Plot No.78/12 Adm-827.64 sq.mts in the scheme Vatva Industrial Estate forming part of Revenue Survey No.151 Paiki of Mouje Vinzol, Ahmedabad in addition to securities already furnished by the company at the time of creation of the charge and, there is, therefore no change in amount of charge which stands secured at Rs.15.000 Millions in favour of the Bank.

FIXED ASSETS:

· Leasehold Land

· Building

· Electric Installation

· Furniture and Fixture

· Plant and Machinery and equipments

· Motor Vehicles

· Computers

WEBSITE DETAILS:

PROFILE:

Subject began its manufacturing operations in 1978 with Textile Chemicals range. The company focussed mainly on new Research and Development activities to expand product range and to cater to specific customer demands. The company gained a reputation of being a quality supplier in no time.

After having a strong presence in textile industry, the company continued to expand its product range for other industries. Subject is a progressive company having a very strong presence in Leather, Textile, Paper, Construction, Pesticides Formulations and Speciality Chemicals sectors.

With more than 30 years of manufacturing experience, company is manned by strong technocrats who have sufficient experience to serve customers world over. Company has its presence in more than 25 countries world wide with its wide variety of products.

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.49.21
UK Pound	1	Rs.77.75
Euro	1	Rs.64.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		36

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.