MIRA INFORM REPORT

Report Date :

21.01.2012

IDENTIFICATION DETAILS

Name :	HEERASONS CHEMICALS PRIVATE LIMITED
Registered Office :	Sur. No. 60/1, Ground Floor, Plot No. 1 and 2, Near Shukan Bung, Opposite Maheshvari Bhavan, City Light Area, Surat – 395 001, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.04.1980
Com. Reg. No.:	04-3739
Capital Investment / Paid-up Capital :	Rs.0.535 million
CIN No.: [Company Identification No.]	U24231GJ1980PTC003739
TAN No.: [Tax Deduction & Collection Account No.]	SRTH01675C
PAN No.: [Permanent Account No.]	AAACH5979G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufactures of Alpha Naphthylamine and Sodium Naphthionate.
No. of Employees :	45 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 33000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company is under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION PARTED BY

Name :	Mr. Mahesh Bhatt
Designation :	Assistant General Manager
Contact No.:	91-2637-272060
Date :	20.01.2012

LOCATIONS

Registered Office :	Sur. No. 60/1, Ground Floor, Plot No. 1 and 2, Near Shukan Bung, Opposite Maheshvari Bhavan, City Light Area, Surat – 395 001, Gujarat, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	info@hleenggineer.com maheshb@yashrasayan.com heerasons@yashrasayan.com
Website :	http://www.yashrasayan.com
Location :	Owned
Administrative Office :	A-6, Maroli Udyognagar, Post Maroli - 396 436, District Navsari, Gujarat, India
Tel. No.:	91-2637-272060 / 272062
Fax No.:	91-2637-272240
Factory :	A-7, Amroli Udyog Nagar, Via, Maroli Bazar, Village Nadod, Navsari – 396 436, Gujarat, India
Tel No :	91-2637-272060 / 272062 / 94
Fax No.:	91-2637-272240

DIRECTORS

As on 30.09.2011

Name :	Mr. Nilesh Khushalbhai Patel
Designation :	Director
Address :	1-2, Yashashvi Bunglow, Opposite Surat Science Centre, Shukan Bunglow, Compound City Area, Surat – 395 007, Gujarat, India
Date of Appointment :	21.12.2001
DIN No.:	00141873

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	U45201GJ1985PTC007904	Maroli Udhyognagar Land Development and Mamagement Company Private Limited	Director	17-06-85	17-06-85	Active	NO
2	U24231GJ1986PTC008369	Newpar Aromatics Private Limited	Director	19-01-96	19-01-96	Active	NO
3	U24231GJ1980PTC003739	Heerasons Chemicals Private Limited	Director	21-12-01	21-12-01	Active	NO
4	U24119GJ2003PTC041827	Yashashvi Rasayan Private Limited	Director	09-01-03	09-01-03	Active	NO
5	U05005GJ2003PTC042130	HN Indigos Private Limited	Director	12-03-03	12-03-03	Active	NO

Name :	Mr. Sharad Khushalbhai Patel
Designation :	Director
Address :	1801, Odyssey – II, Orchard Avenue, Hiranandani Garden, Powai, Mumbai – 400 076, Maharashtra, India
Date of Appointment :	25.04.1980
DIN No.:	00202307

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	U24231GJ1980PTC003739	Heerasons Chemicals Private Limited	Director	25-04-80	25-04-80	Active	NO
2	U45201GJ1985PTC007904	Maroli Udhyognagar Land Development and Mamagement Company Private Limited	Director	17-06-85	17-06-85	Active	NO
3	U24231GJ1986PTC008369	Newpar Aromatics Private Limited	Director	03-01-86	03-01-86	Active	NO

Name :	Mr. Himanshu Khushalbhai Patel
Designation :	Director
Address :	Bunglow – 23, SY No. 61 Paiky 1-2, 64, 65, T Sarjan Co-Operative Housing Society, Himson Bunglow, Near Old Jakat Naka, Athwa Lines, Surat – 395 001, Gujarat, India
Date of Appointment :	22.11.2001
DIN No.:	00202312

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	U24231GJ1986PTC008369	Newpar Aromatics Private Limited	Director	03-01-86	03-01-86	Active	NO
2	U24231GJ1980PTC003739	Heerasons Chemicals Private Limited	Director	22-11-01	22-11-01	Active	NO
3	U05005GJ2003PTC042130	HN Indigos Private Limited	Director	12-03-03	12-03-03	Active	NO
4	U29199GJ2004PTC044905	H L E Engineers Private Limited	Director	14-10-04	14-10-04	Active	NO
5	U45201GJ1985PTC007904	Maroli Udhyognagar Land Development and Mamagement Company Private Limited	Director	01-02-10	01-02-10	Active	NO
6	U29100GJ2011PTC065527	Bohlela Engineering Private Limited	Director	20-05-11	20-05-11	Active	NO

KEY EXECUTIVES

Name :	Mr. Mahesh Bhatt
Designation :	Assistant General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Sharad Khushalbhai Patel	14167
Himanshu Khushalbhai Patel	14166
Nilesh Khushalbhai Patel	14167
Punita S Patel	3500
Priti H Patel	2000
Kishori N Patel	3500
Harsh H Patel	2000
Total	53500

As on 30.09.2011

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

BUSINESS DETAILS

Line of Business :	Manufactures of Alpha Naphthylamine and Sodium Naphthionate.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Sutaki Chemicals Private Limited

Customers :

Wholesalers and Retailers

· Jay Enterprise

International

· Ciba Specialty Chemicals - Switzerland.

· Aliachem Syenthesia - Czech Republic

· Euro Labs - U.K.

· BASF - Germany

· Avecia - UK

· Rohner - Switzerland

· CBW - Germany

· 3V-Sigma, - Italy

· Bioguard Ltd. - Brazil

· Multichem Marketing CC, South Africa

· White Chemicals - U.K.

Local

· Nitro Aromatics (A Division of Dipak Nitrite Limited)

· Gharda Chemicals Limited, Lote.

· Coloursynth Industries Limited - Surat

· Atul Limited - Atul

· Amal Products Limited - Atul

· Metro Exports

· Cadila Laboratories Limited, Ankleshwar

· Aarti Industries Limited, Vapi

· Dr. Reddy's Laboratories Limited, Hyderabad

· Paks Veterinary Drugs Mfg. Company Limited

· Ciba Speciality Chemicals Limited, Mumbai

· Colour-chem Limited, Mumbai

· ICI Limited, Chennai

· Vanavil Dyes and Chemicals Limited, Chennai

No. of Employees :

45 (Approximately)

Bankers :

· HDFC Bank Limited

HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

· Bank of Baroda

Panch Hatdi Branch, Navasari, Gujarat, India

· Axis Bank

· State Bank of India

Facilities :

Cash Credit Rs.2.500 millions (HDFC Bank Limited)

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
HDFC Bank CC A/C 1352790000020	4.085	14.845
HDFC Bank Buyers Credit Loan A/c	1.541	0.000
Total	5.626	14.845

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
From Directors	30.870	4.350
From Shareholders	0.000	11.939
Total	30.870	16.289

Banking Relations :	--
Auditors :
Name :	Hiren M. Diwan and Company Chartered Accountants
Address :	43, River Palace, Wing “A”, Beside Navdi Ovara, Nanpura, Surat – 395 001, Gujarat, India
PAN No.:	AACFH4310E
Related Parties where control exist :	· HLE Engineers Private Limited · HL Equipment · New Par Aromatics Private Limited · Yashashvi Rasayan Private Limited

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
75000	Equity Shares	Rs.10/- each	Rs.0.750 million
25000	Preference Shares	Rs.10/- each	Rs.0.250 million
	Total		Rs.1.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
53500	Equity Shares	Rs.10/- each	Rs.0.535 million

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		0.535	0.535	0.535
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7.824	11.679	18.158
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		8.359	12.214	18.693
LOAN FUNDS
1] Secured Loans		5.626	14.845	13.457
2] Unsecured Loans		30.870	16.289	13.845
TOTAL BORROWING		36.496	31.134	27.302
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		44.855	43.348	45.995
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		31.362	31.443	34.041
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.055
DEFERREX TAX ASSETS		5.587	3.720	3.265
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.963	12.576	14.906
	Sundry Debtors	9.044	13.092	14.771
	Cash & Bank Balances	0.669	0.662	0.945
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.546	3.325	3.166
Total Current Assets		30.222	29.655	33.788
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.935	16.354	19.700
	Other Current Liabilities	2.381	5.116	5.389
	Provisions	0.000	0.000	0.065
Total Current Liabilities		22.316	21.470	25.154
Net Current Assets		7.906	8.185	8.634
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		41.855	43.348	45.995

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	69.090	64.007	105.389
		Other Income	2.442	3.006	0.531
		TOTAL	71.532	67.013	105.920
Less	EXPENSES
		Cost of Material	48.108	44.513	82.793
		Manufacturing Expenses	19.897	18.893	24.232
		Sales and Administrative Expenses	5.038	4.743	3.601
		Other Expenses	0.008	0.231	0.009
		Prior’s year’s Adjustment	(0.022)	0.043	0.014
		TOTAL	73.029	68.423	110.649
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(1.497)	(1.410)	(4.729)
Less	FINANCIAL CHARGES		1.076	1.813	1.896
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(2.573)	(3.223)	(6.625)
Less/ Add	DEPRECIATION/ AMORTISATION		3.154	3.710	3.717
	PROFIT/(LOSS) BEFORE TAX		(5.727)	(6.933)	(10.342)
Less	PROVISION FOR INCOME TAX		0.000	0.000	0.065
Add	DEFERRED TAX INCOME		1.867	0.456	3.264
Less	PRIOR PERIOD ADJUSTMENT OF TAX		0.000	0.002	0.000
Add	PRIOR PERIOD ADJUSTMENT OF TAX		0.207	0.000	1.970
	PROFIT/(LOSS) AFTER TAX		(3.653)	(6.479)	(5.173)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(19.880)	(13.401)	(8.228)
	BALANCE CARRIED TO THE B/S		(23.533)	(19.880)	(13.401)
	EARNINGS IN FOREIGN CURRENCY		9.481	0.850	13.454
	IMPORTS		11.653	5.473	20.485
	Earnings Per Share (Rs.)		(68.28)	(121.10)	(96.69)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(5.11)	(9.67)	(4.88)
Net Profit Margin (PBT/Sales)	(%)	(8.29)	(10.83)	(9.81)
Return on Total Assets (PBT/Total Assets}	(%)	(9.30)	(11.35)	(15.25)
Return on Investment (ROI) (PBT/Networth)		(0.69)	(0.57)	(0.55)
Debt Equity Ratio (Total Liability/Networth)		7.04	4.31	2.81
Current Ratio (Current Asset/Current Liability)		1.35	1.38	1.34

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Particulars	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions	As on 31.03.2009 Rs. in millions
Creditors for Expenses	6.675	2.502	2.335
Creditors for Raw Materials	13.260	10.996	13.981
Creditors for Capital Goods	0.000	2.856	3.384
Total	19.935	16.354	19.700

Sr. No.	Check List by Info Agents
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	--
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	NO
12.	Profitability for last three years	--
13.	Reasons for variations <> 20%	--
14.	Estimation for coming financial year	NO
15.	Capital in the business	NO
16.	Details of sister concerns	--
17.	Major Suppliers	YES
18.	Major Customers	YES
19.	Payment terms	YES
20.	Export / Import details (is applicable)	--
21.	Market information	--
22.	Litigation 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	NO
28.	Incorporation details, if applicable	--
29.	Last accounts filed at ROC	--
30.	Major Shareholders, is available	--

NOTE

The Registered office of the company has been shifted from A-7, Amroli Udyog Nagar, Via, Maroli Bazar, Village Nadod, Navsari, Gujarat, India to the present address w.e.f. 25.06.2009.

FORM 8

Corporate identity number of the company	U24231GJ1980PTC003739
Name of the company	HEERASONS CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Sur. No. 60/1, Ground Floor, Plot No. 1 and 2, Near Shukan Bung, Opposite Maheshvari Bhavan, City Light Area, Surat – 395 001, Gujarat, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10086829
Type of charge	Immovable property
Particular of charge holder	HDFC Bank Limited HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India E-Mail : RBBform8@hdfcbank.com
Nature of instrument creating charge	Memorandum recording past transactions of creation of Mortgage by Deposit of Title Deeds.
Date of instrument Creating the charge	18.05.2011
Amount secured by the charge	Rs.358.900 millions
Brief 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 On demand Margin As may be stipulated by the Bank from time to time Extent and operation of the charge The Company accorded and gave oral consent to Bank to continue to hold and retain the title deeds (by way of Constructive delivery) in respect of its immovable properties as mentioned under Item No. 15 as security for repayment of Rs.358.900 millions by Yashashvi Rasayan Private Limited, M/s. Newpar Aromatics Private Limited, H L Equipments, HLE Engineers Private Limited, and subject ("the Borrowers"), including principal, interest, liquidated damages, costs, charges and expenses. Others NIL
Particulars of the property charged	All land and building with present and future structure thereon Plot No. A-7, admeasuring 2436.00 sq. meters situated at Revenue Survey No. 153 having New Block No. 140, admeasuring 20640.00 Sq. Meters of village Nadod, Taluka and District Navsari, Gujarat.

TRADE REFERENCES

· Sutaki Chemicals Private Limited

· Jay Enterprise

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Furniture, Fixture

· Office Equipments

· Vehicles 4-Whelers

· Computer

· Electric Installation

· Factory Buildings

· Lab Equipment

· Cycle

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.50.33
UK Pound	1	Rs.77.97
Euro	1	Rs.65.31

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.