MIRA INFORM REPORT

Report Date :

02.06.2012

IDENTIFICATION DETAILS

Name :	AUCHTEL PRODUCTS LIMITED (w.e.f. 09.05.1997)
Formerly Known As :	HENKEL CHEMICALS (INDIA) LIMITED (w.e.f. 1996) DIAMOND SHAMROCK (INDIA) LIMITED (w.e.f. 1973) NOPCO (INDIA) PRIVATE LIMITED
Registered Office :	142/C, Victor House, N. M. Joshi Marg, Lower Parel, Mumbai – 400018, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.08.1965
Com. Reg. No.:	11-013303
Capital Investment / Paid-up Capital :	Rs. 8.036 Millions
CIN No.: [Company Identification No.]	U24100MH1965PLC013303
TAN No.: [Tax Deduction & Collection Account No.]	MUMA20348G
PAN No.: [Permanent Account No.]	AAACH0975L
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Chemicals used in Textiles, Paper, Leather, Wire, Drawing, Paint, Construction, Dyestuff, Oil Fields, Refinery, Agro/ Fertilizers.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 334000
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Trade relations are reported as fair. Business is active. Payments are reported to be 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.

INFORMATION PARTED BY

Name :	Mr. Kunal
Designation :	Auditor
Contact No.:	91-22-24939755
Date :	01.06.2012

LOCATIONS

Registered Office/ Corporate :	142/C, Victor House, N. M. Joshi Marg, Lower Parel, Mumbai – 400018, Maharashtra, India
Tel. No.:	91-22-24933975 (10 Lines) / 240632600 (100 Lines)
Fax No.:	91-22-24939755/ 24974211/ 240632627/ 40632672
E-Mail :	mdoffice@auchtel.com auchtel@vsnl.com info@auchtel.com minhazcompany@gmail.com
Website :	http://www.auchtel.com
Location :	Owned
Factory 1 :	Plot No. A-85, A-86 / C-22, MIDC Industrial Estate, Dombivli (East), Dist. Thane, Maharashtra, India
Factory 2 :	D-1, MIDC Estate, Mirzole Industrial Estate, Ratnagiri – 415612, Maharashtra, India
Branches :	Located at: · Mumbai · Ahmedabad · Chennai · Delhi · Kanpur · Kolkata

DIRECTORS

(AS ON 30.09.2011)

Name :	Mr. Rajiv Haridas Tandon
Designation :	Chairman cum Managing Director
Address :	3/64, Vishnu Puri, Nawab Gunj, Kanpur – 208002, Uttar Pradesh, India
Date of Birth/Age :	05.08.1952
Date of Appointment :	22.11.1988
DIN No.:	00004772
Name :	Mrs. Deepa Rajiv Tandon
Designation :	Director
Address :	3/64, Vishnu Puri, Nawab Gunj, Kanpur – 208002, Uttar Pradesh, India
Date of Birth/Age :	18.12.1957
Date of Appointment :	09.05.1997
DIN No.:	00004795
Name :	Mr. Pradyumnakumar Kesarinath Rele
Designation :	Director
Address :	6/4 Sealord, B Building, Cuffe Parade, Mumbai – 400005, Maharashtra, India
Date of Birth/Age :	13.06.1936
Date of Appointment :	12.11.1999
Date of Ceasing :	26.12.2011
DIN No.:	00021003

KEY EXECUTIVES

Name :	Mr. Kunal
Designation :	Auditor

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Rajiv Tandon	37753
Rajiv Haridas Tandon- HUF	1
Rajiv Tandon- HUF	1
Haridas Tandon- HUF	1
Premo Tandon- HUF	1
Deepa Tandon	1
Prateecha Tandon	1
Prateek Tandon	1
Auchlite Chemicals Private Limited, Uttar Pradesh, India	42600
Total	80360

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Bodies corporate	53.02
Directors or relatives of Directors	46.98
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Chemicals used in Textiles, Paper, Leather, Wire, Drawing, Paint, Construction, Dyestuff, Oil Fields, Refinery, Agro/ Fertilizers.

Products :

Products Description	Item code No.
Speciality Chemicals	340290.09
Ion Exchange Resins	391400.02

Exports :

Products :

Chemicals

Countries :

· Germany

· US

Imports :

Products :

Raw Materials

Countries :

China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
Speciality Industrial chemicals	(Tons)	4990.00
Wire drawing Compounds	(Tons)	0.00
Leather Tanning Agents	(Tons)	1162.40
Oil and Well Chemicals	(Tons)	86.50
Ion Exchange Resins	(Cubic Meters)	5204.60

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

· Apcotex Lattices Limited

· Asian Paints Limited

· P. R. Limited

· Balkrishna Industries Limited

· Ballarpur Industries Limited

· Bayer India Limited

· Berger Paints Limited

· Bharat Petroleum Corporation Limited

· Bharat Starch

· Bhiwani Textile Mills

· Birla VXL Limited

· Century Denim

· Century Enka Limited

· Century Rayon

· Kochi Refineries Limited

· Deepak Fertilizer and Petrochemicals Corporation Limited

· Department of Atomic Energy

· East India Synthetics

· Gharda Chemicals

· Global Chemicals

· Global Wool Alliance

· Gujarat Agro Industries Corporation Limited

· Gujarat Heay Chemicals

· Gujarat State Fertilizers and Chemicals Limited

· Hind Lever Chemicals Limited

· Hind Petroleum Corporation Limited

· India Polyfibres

· Indian Oil Corporation Limited

· Indian Rayon Industries Limited

· ITC Limited. (Tribeni Tissues)

· ITC Bhadrachallam Paper Boards Limited

· JCT Group

· Kesoram Rayon

· Madras Refineries Limited

· Mafatlal Dyes and Chemicals Limited

· MBT India Private Limited

· Maharashtra State Electricity Board

· Malwa Cotton Spinning Mills Limited

· Modern Terry Towels Limited

· Nirmal Jal

· Northern Tannery

· N. R. Group of Paper Mills

· N. R. C. Limited

· Pashupati Spinning and Weaving Mills Limited

· Pidilite Industries Limited

· Rajdoot Paints Limited

· Raymond Limited

· Reliance Industries Limited

· Reliance Petroleum Corporation Limited

· Rohit Pulp and Paper Mills Limited

· Shri Dinesh Mills

· Sika Qualcrete

· SIV Industries

· Sinar Mas Pulp and Paper (India) Limited

· Steel Authority of India Limited

· Sudarshan Chemicals Limited

· Tata Chemicals

· Terenefibres Industries Private Limited

· The Bombay Dyeing and Manufacturing Company Limited

No. of Employees :

300 (Approximately)

Bankers :

· Bank of India4

· State Bank of India, Worli Branch

· Bank of India, Fort Branch

· Bank of Baroda, Worli Branch

· Vijaya Bank, Worli Branch

· ING Vysya Bank, Worli Branch

· Saraswat Co-op Bank Limited, Fort, Mumbai-400001, Maharashtra, India

· Saraswlat Co-Operative Bank Limited, Dr. D.B. Marg, Grand Road, Mumbai-400007, Maharashtra, India

· Deutsche Bank (Asia) Tulsiani Chambers, Nariman, Mumbai – 400021, Maharashtra, India

Facilities :

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Sales Tax Deferral Loan Availed under the 1993 Package Scheme of Incentives of Government of Maharashtra (Repayable in five equal prescribed annual installments after ten years from the date of furnishing the first return applicable for the benefit availment period i.e. form January 1, 1999 to December 31. 2005) (Repayable within one year Rs.0.371 Million Previous year Rs. 0.036 Million)	12.023	12.395
Other Loans (Includes dues to directors Rs.65.886 Millions Previous year Rs. 658.325 Millions) (Repayable on demand)	64.009	135.705
Total	76.032	148.100

Banking Relations :	--
Auditors :
Name :	J N Sharma and Company Chartered Accountant
Address :	58/4, Birhana Road, P.B. No. 389, Kanpur – 208001, Uttar Pradesh, India
PAN No.:	AAAFJ6568N
Holding Company :	· Auchlite Chemical Private Limited U24111UP1996PTC020834
Associates Company :	· Upaasi Investment and finance Private Limited

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	‘A’ Equity Shares	Rs.100/- each	Rs.20.000 Millions
300000	‘B’ Equity Shares	Rs.100/- each	Rs.30.000 Millions
	Total		Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
32144	‘A’ Equity Shares	Rs. 100/- each	Rs. 3.214 Millions
48216	‘B’ Equity Shares	Rs. 100/- each	Rs. 4.822 Millions
	Total		Rs. 8.036 Millions

NOTES:

1) Of the above 27388 ‘A’ Equity Shares and 41082 ‘B’ Equity Shares have been allotted as fully paid up bonus shares by capitalization of reserves.

2) 47600 ‘B’ Equity Shares are held by Auchlite Chemical Private Limited, the holding company.

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		8.036	8.036	8.036
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		75.399	77.094	71.312
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		83.435	85.130	79.348
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		76.032	148.100	147.739
TOTAL BORROWING		76.032	148.100	147.739
DEFERRED TAX LIABILITIES		1.704	2.219	2.579
TOTAL		161.171	235.449	229.666
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.526	21.071	17.831
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		5.666	98.251	14.734
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	77.136	54.822	65.276
	Sundry Debtors	222.509	193.932	143.978
	Cash & Bank Balances	57.360	57.159	108.065
	Other Current Assets	0.105	0.128	0.073
	Loans & Advances	67.643	54.912	54.950
Total Current Assets		424.753	360.953	372.342
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	252.780	209.652	143.643
	Other Current Liabilities	19.985	21.071	17.496
	Provisions	14.009	14.103	14.102
Total Current Liabilities		286.774	244.826	175.241
Net Current Assets		137.979	116.127	197.101
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		161.171	235.449	229.666

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income From Operations	765.108	613.009	594.827
		Export Incentives	2.491	4.571	2.605
		Other Income	7.917	8.135	31.109
		TOTAL (A)	775.516	625.715	628.541
Less	EXPENSES
		Raw Material Consumed	511.241	339.521	391.500
		Increase/ Decrease in Stocks	(9.987)	19.712	[12.844]
		Manufacturing and other expenses	240.627	210.095	204.665
		Bad Debts written off	0.294	4.070	4.770
		TOTAL (B)	742.175	573.398	588.091
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		33.341	52.317	40.450
Less	FINANCIAL EXPENSES (D)		12.895	20.852	20.350
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.446	31.465	20.100
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.545	3.241	3.300
	PROFIT BEFORE TAX (E-F) (G)		16.901	28.224	16.800
Less	TAX (H)		4.586	8.339	5.202
	PROFIT AFTER TAX (G-H) (I)		12.315	19.885	11.598
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		50.391	47.431	51.096
Less	APPROPRIATIONS
		Transfer to General Reserve	1.690	2.822	1.160
		Interim and Final Dividend	12.054	12.054	12.054
		Tax on Interim and Final Dividend	1.955	2.049	2.049
	BALANCE CARRIED TO THE B/S		47.007	50.391	47.431
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	160.413	113.469	NA
	TOTAL EARNINGS		160.413	113.469	NA
	IMPORTS
		Raw Materials	136.076	59.963	NA
	TOTAL IMPORTS		136.076	59.963	NA
	Earnings Per Share (Rs.)		153	247	144

Particulars	31.03.2012
Sales Turnover (Approximately)	1000.000

Expected Sales (2012-13): Rs.1000.000 Millions

The above information has been parted by Mr. Kunal.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.59	3.18	1.85
Net Profit Margin (PBT/Sales)	(%)	2.21	4.60	2.82
Return on Total Assets (PBT/Total Assets}	(%)	3.82	7.39	4.31
Return on Investment (ROI) (PBT/Networth)		0.20	0.33	0.21
Debt Equity Ratio (Total Liability/Networth)		4.35	4.62	4.07
Current Ratio (Current Asset/Current Liability)		1.48	1.47	2.12

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors
- Small Scale Industrial Undertakings	6.269	6.269	6.269
- Others	246.511	203.383	137.374
Total	252.780	209.652	143.643

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	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
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

REVIEW OF OPERATIONS:

The company’s Sales turnover increased substantially during the year and stood at Rs.856.150 Millions as against Rs.673.560 Millions in the previous year. However, the increase in the raw materials, manufacturing and other related costs resulted in lower profit after tax which stood at Rs.12.320 Millions as against Rs.19.880 Millions in the previous year.

The company continues to remain committed to its efforts for improving its performance and is therefore confident of improving its overall profits, rendering quality products and services to its customers and simultaneously sustaining fair return to its stakeholders.

I] CONTINGENT LIABILITIES NOT PROVIDED FOR, IN RESPECT OF:

Particulars	31.03.2011	31.03.2010
	(Rs. In Millions)
Claims by a customer against the company not acknowledged as debts	0.310	0.310
Income tax matters disputed by the company/ Tax Authorities	1.837	1.837
Excise Duty	2.347	2.347

* Represents the original demand as intimated to the company by the excise authorities. The direction given in the order date 11^th April, 1996 passed by commissioner of Central Excise and customs in respect of valuation of intermediate products captivity consumed during the period 1.4.85 to 31.12.87 are yet to be executed by the assessing offer and the company is yet to receive intimation in this regard.

II] Bank Guarantee (secured against margin money deposits) outstanding at the year-end comprise of performance guarantees customers aggregating Rs.5.167 Millions (Previous year Rs.4.555 Millions)

FIXED ASSETS:

· Leasehold Land and Development

· Building and Roads

· Plant and Machinery

· Research and Development Machinery

· Electrical Machinery and Installation

· Furniture, Fixture, Water Coolers and Computer

· Air Conditioners, Water Cooler and Refrigerators

· Laboratory and other Equipments

· Vehicles

· Fire Extinguishers

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.55.92
UK Pound	1	Rs.86.03
Euro	1	Rs.69.13

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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.