MIRA INFORM REPORT

Report Date :

19.07.2012

IDENTIFICATION DETAILS

Name :	CHEMICO SYNTHETICS LIMITED
Registered Office :	206, Functional Industrial Area, Patparganj Industrial Area, Delhi – 110092, India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.01.1997
Com. Reg. No.:	55- 084759
Capital Investment / Paid-up Capital :	Rs.50.000 Millions
CIN No.: [Company Identification No.]	U17114DL1997PLC084759
TAN No.: [Tax Deduction & Collection Account No.]	DELC04952D
PAN No.: [Permanent Account No.]	AACCC9078M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Antimony Metal and Chemical, Molybdenum Products.
No. of Employees :	88 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 480000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for business dealings on a 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 :	206, Functional Industrial Area, Patparganj Industrial Area, Delhi – 110092, India
Tel. No.:	91-11-22167148/ 22143971/ 22143981/ 22165633/ 30183861-65/ 22165633
Mobile No.:	91-9871985353 (Mr. Neeraj Jain)
Fax No.:	91-11-22167149/ 22168135/ 42141619
E-Mail :	kkgheiandco@rediffmail.com neeraj@cslmoly.com India@cslmoly.com finance@cslmoly.com
Website :	www.cslmoly.com
Factory :	Located at · Ghaziabad

DIRECTORS

(AS ON 28.09.2011)

Name :

Mr. Bimal Kumar Jain

Designation :

Managing Director

Address :

D-9, Vivek Vihar, Delhi-110092, India

Date of Birth/Age :

10.01.1950

Date of Appointment :

30.01.1997

DIN No.:

00204260

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	U24139DL1987PTC028836	Elochem India Private Limited	Director	06-08-87	06-08-87	-	Strike off	NO
2	U74899DL1984PTC017720	Chemico Chemicals Private Limited	Director	28-09-90	28-09-90	-	Active	NO
3	U17114DL1997PLC084759	Chemico Synthetics Limited	Managing director	01-04-11	30-01-97	-	Active	NO
4	U50101DL2001PTC110119	Elegant Cars Private Limited	Director	22-03-01	22-03-01	-	Active	NO
5	U27310DL2007PTC161696	Arihant Macfab Private Limited	Director	05-04-07	05-04-07	10-03-11	Active	NO

Name :

Mr. Rajnish Jain

Designation :

Director

Address :

D-9, Vivek Vihar, Delhi-110092, India

Date of Birth/Age :

12.02.1973

Date of Appointment :

30.01.1997

DIN No.:

00204423

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	U74899DL1984PTC017720	Chemico Chemicals Private Limited	Director	02-04-94	02-04-94	-	Active	NO
2	U17114DL1997PLC084759	Chemico Synthetics Limited	Director	30-01-97	30-01-97	-	Active	NO
3	U50101DL2001PTC110119	Elegant Cars Private Limited	Director	22-03-01	22-03-01	-	Active	NO
4	U74899DL1986PTC024161	Arhant Dye Chem Private Limited	Director	22-09-06	22-09-06	-	Active	NO
5	U27310DL2007PTC161696	Arihant Macfab Private Limited	Director	05-04-07	05-04-07	10-03-11	Active	NO

Name :

Mr. Neeraj Jain

Designation :

Whole Time Director

Address :

D-9, Vivek Vihar, Delhi-110092, India

Date of Birth/Age :

16.08.1976

Date of Appointment :

01.10.2010

DIN No.:

00206206

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	U74899DL1986PTC024161	Arhant Dye Chem Private Limited	Director	02-04-94	02-04-94	-	Active	NO
2	U17114DL1997PLC084759	Chemico Synthetics Limited	Whole-time director	01-10-10	30-01-97	-	Active	NO
3	U74899DL1984PTC017720	Chemico Chemicals Private Limited	Director	15-06-06	15-06-06	-	Active	NO
4	U50101DL2001PTC110119	Elegant Cars Private Limited	Director	22-08-06	22-08-06	-	Active	NO
5	U27310DL2007PTC161696	Arihant Macfab Private Limited	Director	05-04-07	05-04-07	10-03-11	Active	NO

Name :

Mrs. Kusum Jain

Designation :

Director

Address :

D-9, Vivek Vihar, Delhi-110092, India

Date of Birth/Age :

15.03.1955

Date of Appointment :

15.11.2010

DIN No.:

00393673

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	U17114DL1997PLC084759	Chemico Synthetics Limited	Director	15-11-10	30-01-97	-	Active	NO
2	U74899DL1986PTC024161	Arhant Dye Chem Private Limited	Director	01-07-97	01-07-97	-	Active	NO
3	U27310DL2007PTC161696	Arihant 4Macfab Private Limited	Director	05-04-07	05-04-07	10-03-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 28.09.2011)

Names of Shareholders	No. of Shares
Bimal Kumar Jain	1779700
Rajnish Kumar Jain	1550000
Neeraj Kumar Jain	1550000
Kusum Kumari Jain	1070000
Vibha Kumari Jain	100
Rashmi Kumari Jain	250000
Saroj Kumaaari Jain	100
Komal Jain	100
TOTAL	6200000

(AS ON 31.10.2011)

Names of Allotment	No. of Shares Allotees
Bimal Kumar Jain	385000
Rajnish Kumar Jain	325000
Neeraj Kumar Jain	325000
Kusum Kumari Jain	205000
Rashmi Kumari Jain	60000
TOTAL	1300000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Antimony Metal and Chemical, Molybdenum Products.

Products :

Products Description	Item Code No.
Roasted Molybdenum	26131000
Antimony Metal	81101000
Fero Molybdenum	72027000

· Antimony Metal

· Molybdenum Disulfide (MoS₂ )

· Molybdenum Trioxide (MoO₃)

· Ferro-Molybdenum (FeMo)

· Roasted Molybdenum Concentrate / Oxide

· Antimony Trichloride Anhydrous (SbCl₃)

· Antimony Pentoxide Powder

· Ferro Molybdenum Powder

GENERAL INFORMATION

No. of Employees :

88 (Approximately)

Bankers :

· State Bank of Bikaner and Jaipur

D-10, Block D, Shopping Center, Vivek Vihar, Delhi-110095, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Working capital loans banks secured	83.036	46.896
Working capital loans others secured	0.092	0.434
Loans taken for vehicles secured	0.279	0.771
Total	83.407	48.101
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Other Debts Unsecured	22.224	0.788
Total	22.224	0.788

Banking Relations :	--
Auditors :
Name :	K K Ghei and Company Chartered Accountant
Address :	806, Hemkunt House, 6 Rajendra Place, New Delhi-110008, India
Tel. No.:	91-11-25714080/ 25759511
Fax No.:	91-11-25759512
E-Mail :	kkgheiandco@rediffmail.com
PAN No.:	AAAFK0011F
Other Related Parties :	· Chemico Chemicals Private Limited 341, FIE, Patparganj, Delhi – 92, India

CAPITAL STRUCTURE

(AFTER – 28.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7500000	Equity Shares	Rs.10/- each	Rs.75.000 Millions

(AS ON 28.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6200000	Equity Shares	Rs.10/- each	Rs.62.000 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 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		50.000	29.993	19.003
2] Share Application Money		0.000	0.000	0.990
3] Reserves & Surplus		70.588	11.823	0.000
4] (Accumulated Losses)		0.000	0.000	(1.187)
NETWORTH		120.588	41.816	18.806
LOAN FUNDS
1] Secured Loans		83.407	48.101	13.388
2] Unsecured Loans		22.224	0.788	1.341
TOTAL BORROWING		105.631	48.889	14.729
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		226.219	90.705	33.535
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		62.832	32.195	17.238
Capital work-in-progress		5.349	2.947	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.519	0.000	0.573
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	106.141	58.454	15.523
	Sundry Debtors	81.960	54.615	15.938
	Cash & Bank Balances	14.933	8.435	6.448
	Other Current Assets	0.436	0.138	0.000
	Loans & Advances	113.109	14.634	3.583
Total Current Assets		316.579	136.276	41.492
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	82.457	71.092	21.775
	Other Current Liabilities	1.527	0.929	3.836
	Provisions	75.076	8.692	0.172
Total Current Liabilities		159.060	80.713	25.783
Net Current Assets		157.519	55.563	15.709
MISCELLANEOUS EXPENSES		0.000	0.000	0.015
TOTAL		226.219	90.705	33.535

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	724.472	296.093	194.881
		Other Income	0.764	0.461	0.337
		TOTAL	725.236	296.554	195.218
Less	EXPENSES
		Consumption Materials Changes Inventories	477.896	254.671
		Manufacturing Service Costs	55.854	6.085	194.447
		Employee Related Expenses	5.279	1.559
		Administrative, Selling and Other Expenses	20.144	10.265
		TOTAL	559.173	272.580	194.447
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		166.063	23.974	0.771
Less/ Add	DEPRECIATION/ AMORTISATION		11.658	2.306	0.916
	PROFIT BEFORE TAX		154.405	21.668	(0.145)
Less	TAX		53.200	7.298	0.031
	PROFIT AFTER TAX		101.205	14.370	(0.176)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		10.322	(1.187)	(1.010)
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	1.500	0.000
		Provision for Dividend	NA	1.163	0.000
		Provision for Dividend Distribution Tax	NA	0.198	0.000
	BALANCE CARRIED TO THE B/S		NA	10.322	(1.187)
	EARNINGS IN FOREIGN CURRENCY		491.362	25.712	2.144
	VALUE OF IMPORTS (C.I.F)		462.733	194.996	160.313
	Earnings Per Share (Rs.)		29.82	9.29	(0.128)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	13.95	4.85	(0.09)
Net Profit Margin (PBT/Sales)	(%)	21.95	7.32	(0.07)
Return on Total Assets (PBT/Total Assets}	(%)	40.70	12.86	(0.25)
Return on Investment (ROI) (PBT/Networth)		1.28	0.52	(0.01)
Debt Equity Ratio (Total Liability/Networth)		2.20	3.10	2.16
Current Ratio (Current Asset/Current Liability)		1.99	1.69	1.60

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	Yes
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

NOTE:

The registered office of the company has been shifted from, D-9 Vivek Vihar, Delhi-110092, India to the present Address w.e.f.15.04.2008.

CONTINGENT LIABILITIES

Particulars	31.03.2011	31.03.2010
	(Rs. In Millions)
Bank Guarantee	2.508	0.879
Sales Tax	0.000	0.029
LC Outstanding	119.889	73.221

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	10096912
Corporate identity number of the company	U17114DL1997PLC084759
Name of the company	CHEMICO SYNTHETICS LIMITED
Address of the registered office or of the principal place of business in India of the company	206 Fie Patparganj Industrial Area, Delhi – 110092, India kkgheiandco@rediffmail.com
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	State Bank of Bikaner & Jaipur D-10 Block D, Shopping Centre, Vivek Vihar, Delhi – 110095, India sbbj10502@sbbj.co.in
Nature of description of the instrument creating or modifying the charge	Letter of Arrangement SME - I Sanction of Credit Facilities.
Date of instrument Creating the charge	10/01/2012
Amount secured by the charge	Rs.250.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest The effective rate at present is 13.50% p.a. Terms of Repayment The limit is for 1 year. Margin 25% on Stocks of Raw Material, Semi Finished Goods and Finished Goods 40% margin on Debtors, Margin for LC 10%. Extent and Operation of the charge One year from 15.12.2011. Others First charge on entire fixed assets and equitable mortgage of Leasehold Industrial plot.
Short particulars of the property charged	Stocks WIP, Finished Goods, entire fixed assets, Book Debts, Equitable Mortgage of Industrial plot and shed at A-14/2 Site IV, Industrial Area, Sahibabad.
Date of latest modification prior to the present modification	24/09/2010
Particulars of the present modification	The CC Hypothecation stand reduced from Rs.80.000 Millions to Rs.50.000 Millions with sub limit against book debts Rs.25.000 Millions, EPC HYP/FBP/FBD (Docy) Rs.40.000 Millions and drawing against Cheques Rs.2.500 Millions - all within the overall limit of Rs. 50.000 Millions. Non Fund based limits increased from Rs.120.000 Millions to Rs.200.000 Millions with sub limit of Rs.5.000 Millions for BG and Rs.150.000 Millions against Buyer's Credit - all within overall limit of Rs.200.000 Millions.

FIXED ASSETS:

· Lease Hold Land

· Building

· Machinery

· Lab Equipment

· Electric Fitting

· Car

· Computer

· Fire Fighting Equipments

· Fork Lift

· Mobile Phone

· Packing Machine

· Scooter

· Tubewell

· Weights And Measurement

· Tools And Equipment

· Building Under Construction

· Capital Work In Progress(Plant)

· Capital Work In Progress(ATH)

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.55.34
UK Pound	1	Rs.86.55
Euro	1	Rs.67.95

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.