MIRA INFORM REPORT

Report Date :

29.02.2012

IDENTIFICATION DETAILS

Name :	ASIAN CHEMICALS WORKS (BOMBAY) PRIVATE LIMITED
Registered Office :	Asian House 29 Kandevittavillage Road, Off Kurla, Andheri Road , Mumbai – 400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	07.04.1981
Com. Reg. No.:	11-024209
Capital Investment/ Paid-up Capital:	Rs. 10.586 Millions
CIN No.: [Company Identification No.]	U24110MH1981PTC024209
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Flavour and Aroma Chemicals
No. of Employees:	Not Available

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 93000
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 :	Asian House 29 Kandevittavillage Road, Off Kurla, Andheri Road , Mumbai – 400059, Maharashtra
Tel. No.:	91-22-28341112 / 28221658
Fax No.:	91-22-28380164
E-Mail :	sales@asianchemicals.com
Website :	http://www.asianchemicals.com

DIRECTORS

(As on 06.09.2011)

Name :

Mr. Jeshtaram Chunilal Kathrani

Designation :

Whole-time Director

Address :

Garden Terrace, 2nd Floor, 11^th Road, Santacruz (E) Mumbai –55 , Maharashtra, India

Qualification :

B.Sc. Tech

Date of Appointment :

07.04.1981

DIN No:

00222746

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	U24110MH1981PTC024209	ASIAN CHEMICLS WORKS (BOMBAY) PRIVATE LIMITED	Whole-time director	7/4/1981	7/4/1981	-	Active	NO
2	U24110GJ1981PTC004548	GUJARAT FLAVOURS PVT LTD	Whole-time director	13/08/1981	13/08/1981	-	Active	NO
3	U24299DL2005PTC135566	ASIAN CHEM WORKS PRIVATE LIMITED	Director	29/04/2005	29/04/2005	10/6/2010	Active	NO

Name :

Mr. Kishor Vallabhdas Kathrani

Designation :

Whole-time Director

Address :

Ganga Cottage, 2nd & 5th Corner, Khar (W) Mumbai –55 , Maharashtra, India

Date of Appointment :

19.12.1984

DIN No:

00222619

Name :

Mr. Bakulesh Chunilal Kathrani

Designation :

Whole-time Director

Address :

Garden Terrace, 2nd Floor, 11^th Road, Santacruz (E) Mumbai –55 , Maharashtra, India

Date of Appointment :

19.12.1984

DIN No:

00222690

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	U65990MH1981PTC025173	B C KATHRANI INVESTMENTS&FINANCE PVT LTD	Director	8/9/1981	8/9/1981	-	Active	NO
2	U24110MH1981PTC024209	ASIAN CHEMICLS WORKS (BOMBAY) PRIVATE LIMITED	Whole-time director	19/12/1984	19/12/1984	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 06.09.2011)

Names of Shareholders	No. of Shares
Mr. Jestharam C. Kathrani and Mrs. Hansa J. Kathrani	38955
Mrs. Hansa J. Kathrani & Mr. Jestharam C. Kathrani	6
M/s. B. C. Kathrani Investments and Finance Private Limited	420
Mr. Jayant C. Kathrani	21741
Mr. B. C. Kathrani and Mrs. Kalpana B. Kathrani	8402
Miss. Hansa C. Kathrani	6
Mr. Kishor V. Kathrani and Mrs. Deepa K. Kathrani	12560
Kishor V. Kathrani (HUF)	12
Master Biten K Kathrani	12
Miss Archana K. Kathrani	12
Mr. B. C. Kathrani	13335
Mr. Jayant C. Kathrani( Joint)	420
J. C. Kathrani (HUF)	1
Master Kushang J. Kathrani	4981
Master Gaurang J. Kathrani	4996
Mrs. Deepa K. Kathrani	1
Mrs. Kalpana B. Kathrani	1
Total	105861

(AS ON 06.09.2011)

Category	Percentage
Bodies corporate	0.40
Directors or relatives of directors	99.60
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Flavour and Aroma Chemicals

Products :

ITEM CODE	PRODUCT DESCRIPTION
3302.10	Food Flavours, Emulsions
2925.11	Saccharin and its salts
3204.90	Food Colour Preparations

PRODUCTION STATUS

(As on 31.03.2010)

Particulars	Unit	Actual Production
Compound of Aroma Chemicals and Natural and Synthetic Essential Oil	Liters and Kgs	112001.600
Saccharin	Kgs	60813.500
F.C.P	Liters and Kgs	45.000
Essential Oil	Kgs	859.000
Spent Acid and Chemical Resi.	Liters	1092260.000
Fine Chemicals	Liters and Kgs	45312.000

NOTE:

As the manufacturing process of products other than Saccharin, mainly consist of mixing, blending and reactions, no specific installed capacity is determinable for the items produced. The installed capacity of Saccharin is 120 mt p.a.

GENERAL INFORMATION

Customers :

· Dabur India Limited

· Ranbaxy

· Cipla

· FDC

· Glaxo(India)Limited

· Johnson and Johnson

· Hamdard Laboratories

· The Himalaya Drug Company

· Burroughs welcome

· Aventis Pharma

· Hindustan Lever Limited

· Dragaco India Limited

· Oriental Aromatics Limited

· I.F.F. Limited

· Haldiram and Sons Bhujiawala

· Pepsi Foods

· Uncle Chips

· Brittania

· Bakemans

· Farmhouse

· Modern FoodShaw Wallace

· Shaw Wallace

· Radico

No. of Employees :

Not Available

Bankers :

Not Divulged

Facilities :

Secured Loan	31.03.2010	31.03.2009
	(Rs. In Millions)
Cash Credit From State Bank of India (Secured against hypothecation of stocks and Book Debts)	4.548	12.773
Total	4.548	12.773
Unsecured Loan	31.03.2010	31.03.2009
	(Rs. In Millions)
From Directors	0.188	0.107
From Relatives and others	23.183	21.816
Total	23.371	21.923

Banking Relations :	--
Auditors :
Name :	A H Desai and Company Chartered Accountants
Address :	212, Avon Arcade Building, Second Floor, Station Road, Vile Parle – West, Mumbai – 400056, Maharashtra, India
PAN No.:	AAIPD5766E

CAPITAL STRUCTURE

(As on 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
200,000	Equity Share	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
105,861	Equity Share	Rs.100/- each	Rs.10.586 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		10.586	10.586	10.586
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12.699	9.834	9.265
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		23.285	20.420	19.851
LOAN FUNDS
1] Secured Loans		4.548	12.773	12.747
2] Unsecured Loans		23.371	21.923	22.282
TOTAL BORROWING		27.919	34.696	35.029
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		51.204	55.116	54.880
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.629	2.847	3.499
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.287	0.265	0.187
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.837	15.456	24.965
	Sundry Debtors	44.521	42.535	48.005
	Cash & Bank Balances	19.300	8.378	8.246
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.515	5.381	9.128
Total Current Assets		77.173	71.750	90.344
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	17.659	9.079	26.882
	Other Current Liabilities	3.096	3.798	3.053
	Provisions	8.130	6.869	9.215
Total Current Liabilities		28.885	19.746	39.150
Net Current Assets		48.288	52.004	51.194
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		51.204	55.116	54.880

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	TURNOVER		98.958	110.534	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		9.113	5.988	6.248
Less/ Add	DEPRECIATION/ AMORTISATION		0.754	0.859	1.001
	PROFIT BEFORE TAX		8.359	5.129	5.247
Less	TAX		2.409	2.083
	PROFIT AFTER TAX		5.950	3.046	3.037
Less	APPROPRIATIONS
		Transfer to General Reserve	0.850	0.250	0.200
		Dividend	2.647	2.117	2.117
		Tax on Dividend	0.440	0.360	0.360
	BALANCE CARRIED TO THE B/S		2.015	0.319	0.359
	IMPORTS
	TOTAL IMPORTS		11.070	5.322	6.751
	Earnings Per Share (Rs.)		56.21	28.77	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Return on Total Assets (PBT/Total Assets}	(%)	10.47	6.88	5.59
Return on Investment (ROI) (PBT/Networth)		0.36	0.25	0.15
Debt Equity Ratio (Total Liability/Networth)		2.44	2.66	3.74
Current Ratio (Current Asset/Current Liability)		2.67	3.63	2.31

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS :

· Factory Building

· Office Premises

· Residential Flats

· Plant And Machinery

· Furniture And Fittings

· Storage Tank

· Pipe Fittings

· Air Conditioners

· Computer

· Typewriter

· Xerox Machine

· Water Cooler And Filter

· Facsimile Machine

· Office Machinery

· Camera etc

WEBSITE DETAILS:

Subject introduce themselves as a leading Flavour and Aroma chemical manufacturer in India. Established in 1948, they have proved the capabilities in developing new flavours and also in various aroma chemicals like Coumarin and Ethyl Vanillin. By the turn of the century, the company completed 52 years of dedicated service in the flavours and fragrances industry.   Being one of the largest manufactures of flavours and fragrances in India, they hold a major market throughout the country. Even in the overseas market they are a prominent player with their flavours, fragrances, food colours and saccharin. Moreover, they are the largest manufacturing company for saccharin having an ISI mark.  Though the company has reached to a very enviable position in the filed of flavours and fragrances it has not lost sight of its basic policies practiced since its inception: like dedication to quality products by intensive research and development work including market strategies.

MANAGEMENT:

In 1947, Mr.C.A. Kathrani, (1927-2002), along with his three elder brothers migrated to Mumbai from Karachi as refugees. He started a trading firm with his elder brother Vallabhdas under the name of Gujarat Essence Mart.   Immediately in the following year he started a small manufacturing unit named Asian Chemical Works. With sheer hard work, dedication and entrepreneurship, this family-run business soon developed into a leading company.

Mr.J.C. Kathrani, Managing Director, B.Sc. Tech, a technocrat and a renowned flavourist, is leading the company for the last 25 years. Before joining the company, he worked with Norda Essential Oils, U.S.A., for a period of 5 years. His vision and penchant for hardwork has made the company and its brands a household name in the country. Ably assisted by his brothers and other members of the management, the company is confidently moving ahead.

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.49.14
UK Pound	1	Rs.77.86
Euro	1	Rs.66.06

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.