MIRA INFORM REPORT

Report Date :

28.02.2012

IDENTIFICATION DETAILS

Name :	SONAROME PRIVATE LIMITED
Registered Office :	Plot No. 34, 35 and 36, KIADB Industrial Area, Doddaballapur, Bangalore – 561203, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.11.1979
Com. Reg. No.:	08-003668
Capital Investment / Paid-up Capital :	Rs.14.839 Millions
CIN No.: [Company Identification No.]	U24117KA1979PTC003668
TAN No.: [Tax Deduction & Collection Account No.]	BLRS01658G
PAN No.: [Permanent Account No.]	AADCS9267P
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is engaged in the activity of manufacturing and trading of Flavours and Fragrances.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1070000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 :	Plot No. 34, 35 and 36, KIADB Industrial Area, Doddaballapur, Bangalore – 561203, Karnataka, India
Tel. No.:	91-80-27630543/ 27630548/ 27630550
Fax No.:	91-80-27630558
E-Mail :	accounts@sonarome.com
Website :

DIRECTORS

As on 22.09.2011

Name :

Ms. Sonira Gulhati

Designation :

Director

Address :

No. 15 (614), Embassy Apartments, Aliaskar Road, Vasantha Nagar, Shivajinagar, Bangalore – 560052, Karnataka, India

Date of Birth/Age :

23.06.1979

Date of Appointment :

01.09.1997

DIN No.:

01884441

Other Directorship :

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	U24117KA1979PTC003668	Sonarome Private Limited	Director	1/09/1997	1/09/1997	-	Active	NO
2	U74140KA2004PTC034526	Xceed Support Services Private Limited	Director	18/08/2004	18/08/2004	-	Dormant	NO

Name :

Mr. Ramandeep Gulhati

Designation :

Managing director

Address :

901, 14th Block, Heritage Estate,, Yelahanka, Bangalore – 560064, Karnataka, India

Date of Birth/Age :

11.11.1946

Date of Appointment :

01.04.2002

DIN No.:

01919609

Name :

Mr. Nitesh Singh Gulhati

Designation :

Director

Address :

No.11911, S.W. 34th Ave, Portland OR 97219, United States of America

Date of Birth/Age :

06.08.1970

Date of Appointment :

04.10.2000

DIN No.:

02595459

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.09.2011

Names of Shareholders	No. of Shares
Raman Deep Gulhati	445176
Sonira Gulhati	148392
Nitesh Singh Gulhati	593568
Soyna Owley	148392
T. S. Gulhati	148392
Total	1483920

Equity Share Break up (Percentage of Total Equity)

As on 22.09.2011

Category	Percentage
Directors or relatives of Directors	70.00
Other top fifty shareholders	30.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in the activity of manufacturing and trading of Flavours and Fragrances.

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Actual Production
Flavours	Kgs	1124367
Fragrance	Kgs	577166

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Citibank N.A, 506-507, Level 5, Prestige Meridian 2, No.30, M G Road, Bangalore – 560001, Karnataka, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Banks Cash Credit from Citibank N.A (Secured by hypothecation of Stock, Book debts and Buildings)	4.869	0.844
Term Loan from Citibank N.A (Secured by First charge and paramount charge on immovable property)	0.000	2.222
Bills discount from Citibank N.A (Secured by hypothecation of Stock, book debts and building)	13.786	15.295
From Others Vehicles Loans (Secured by hypothecation of respective vehicles purchased)	1.838	3.088
Total	20.493	21.449

Banking Relations :	--
Auditors :
Name :	Guru and Jana Chartered Accountants
Address :	10/1, II Floor, III Main, Hanumanth Nagar, Bangalore – 560019, Karnataka, India
PAN.:	AABFA5265A
Entities controlled by Key Management Personnel and their relatives :	· Sonarome Middle East (FZE) · S.S International Indentors · Sonarome Foundation Trust

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1483920	Equity Shares	Rs.10/- each	Rs.14.839 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		14.839	14.839	14.839
2] Share Application Money		1.648	1.648	1.648
3] Reserves & Surplus		252.148	224.673	201.465
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		268.635	241.160	217.952
LOAN FUNDS
1] Secured Loans		20.493	21.449	18.452
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		20.493	21.449	18.452
DEFERRED TAX LIABILITIES		1.666	3.327	2.921
TOTAL		290.794	265.936	239.325
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		197.457	177.682	176.144
Capital work-in-progress		0.540	2.896	0.000
INVESTMENT		6.430	2.154	0.600
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	40.351	27.788	24.508
	Sundry Debtors	94.042	63.433	55.534
	Cash & Bank Balances	15.137	22.836	18.019
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	54.839	34.980	26.962
Total Current Assets		204.369	149.037	125.023
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	77.923	39.616	44.201
	Provisions	40.079	26.217	18.241
Total Current Liabilities		118.002	65.833	62.442
Net Current Assets		86.367	83.204	62.581
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		290.794	265.936	239.325

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	347.832	267.940	278.430
		Other Income
		TOTAL	347.832	267.940	278.430
Less	EXPENSES
		Office Expenses	306.451	230.627	226.534
		Administrative Expenses
		Advertising Expenses
		Financial Expenses
		Depreciation
		TOTAL	306.451	230.627	226.534
	PROFIT BEFORE TAX		41.381	37.313	51.896
Less	TAX		5.255	8.896	0.981
	PROFIT AFTER TAX		36.126	28.417	50.915
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	224.674	170.259	189.756
	TOTAL EARNINGS		224.674	170.259	189.756
	IMPORTS
		Raw Materials	54.310	27.304	26.853
	TOTAL IMPORTS		54.310	27.304	26.853
	Earnings Per Share (Rs.)
	Basic		24.34	19.15	34.31
	Diluted		21.91	17.24	30.88

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	10.39	10.61	18.29
Return on Total Assets (PBT/Total Assets}	(%)	10.30	11.42	17.23
Return on Investment (ROI) (PBT/Networth)		0.15	0.15	0.24
Debt Equity Ratio (Total Liability/Networth)		0.52	0.36	0.37
Current Ratio (Current Asset/Current Liability)		1.73	2.26	2.00

LOCAL AGENCY FURTHER INFORMATION

Note: The registered address of the company C-136, Peenya Industrial Area, II Stage, Bangalore – 560058, Karnataka, India has been shifted to the present address w.e.f. 19.06.2006

COMPANY BACKGROUND

Subject was incorporated on 29 March 1979. The Entity is engaged in the activity of manufacturing and trading of Flavours and Fragrances.

FINANCIAL RESULTS

The Directors of the Company are able to increase the business of the Company in domestic market by 26.57% and export market by 33.54% during the previous year and hoping to continue in the future also.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24117KA1979PTC003668
Name of the company	SONAROME PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 34, 35 And 36, KIADB Industrial Area, Doddaballapur, Bangalore – 561203, Karnataka, India Email : accounts@sonarome.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10115520
Type of charge	Immovable property Book debts Movable property (not being pledge) Stocks, Plant and Machinery
Particular of charge holder	Citibank N.A, 506-507, Level 5, Prestige Meridian 2, No.30, M G Road, Bangalore – 560001, Karnataka, India Email : mounika.kancheti@citi.com
Nature of instrument creating charge	Deed of Modification, Term Loan Agreement and Memorandum of Entry
Date of instrument Creating the charge	12.09.2011
Amount secured by the charge	Rs.80.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As may be stipulated by the Bank from time to time Terms of repayment All facilities are repayable on demand Margin As agreed from time to time Extent and operation of the charge First Charge on Stocks, book debts and Plant and Machinery forming part of Current and movable fixed assets both Present and future. Equitable Mortgage on Property at No.34, 35 and 36, KIADB Industrial Area, Doddaballapur, Bangalore – 561203, Karnataka, India
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First Charge on Stocks, book debts and Plant and Machinery forming part of Current and movable fixed assets both Present and future Equitable Mortgage on Property at No.34,35 and 36 KIADB Industrial Area, Doddaballapur, Bangalore – 561203, Karnataka, India
Particulars of the present modification	Enhanced Credit limit to the extent of Rs.80.000 Millions of which Working Capital for Rs.66.200 Millions, New Term Loan for Rs.10.000 Millions and Existing Term loan of Rs.3.800 Millions

FIXED ASSETS

· Buildings

· Plant and Machinery

· Vehicles

· Furniture and Fixtures

· Computers

· Office Equipments

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.49.05
UK Pound	1	Rs.77.78
Euro	1	Rs.65.89

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		53

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.