MIRA INFORM REPORT

Report Date :

06.06.2012

IDENTIFICATION DETAILS

Name :	KRISHNA SOLVECHEM LIMITED KRISHNA CHEMICALS MERGED WITH KRISHNA SOLVECHEM LIMITED
Registered Office :	M-2, Sriniwas Bldg., 382/384, Narshi Natha Street, Mumbai – 400009, Maharashtra.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.03.2006
Com. Reg. No.:	160204
Capital Investment / Paid-up Capital :	Rs. 32.500 Millions
CIN No.: [Company Identification No.]	U51102MH2006PLC160204
IEC No.:	0306063671
PAN No.: [Permanent Account No.]	AACCK7702J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Traders of Organic Solvents
No. of Employees :	40 (Approximately) [ In Office: 35; in Branch: 5]

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 333000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre business dealings at usual trade terms and conditions. Note: As claimed by Mr. Yogesh (Director), Krishna Chemicals (Proprietory concern) was merged with Krishna Solvechem Limited five years back.

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

INFORMATION PARTED BY

Name :	Mr. Yogesh Vora
Designation :	Executive Director
Contact No.:	91-9323012223
Date :	04.06.2012

LOCATIONS

Registered Office :	M-2, Sriniwas Bldg., 382/384, Narshi Natha Street, Mumbai – 400009, Maharashtra, India.
Tel. No.:	91-22-6123 0222/ 5631 2223/ 5631 2224/ 2058 6253/ 2345 2191
Fax No.:	91-22-2862 4110
E-Mail :	atul@kscl.co.in
Website :	http://www.kscl.co.in
Corporate Office :	B/503, Sahyog, S.V.Road, Kandivali (West), Mumbai – 400 067, Maharashtra, India.
Tel. No.:	91-22-61230222
Fax No.:	91-22-28624110
Mobile No.:	91-9323012223 [Mr. Yogesh Vora]
E-Mail :	yogesh@kscl.co.in
Location :	Owned
Factory :	Located at: · Mahad · Goa · Ratnagiri · Ankleshwar · Gujarat.
Branches :	Flat No.13, Ambika Apartment, Plot No.15, Sector 10 A, Gurukul, Gandhidham – 371 201, India.
Tel. No.:	91-22-61230222
Fax No.:	91-22-28624110
E-Mail :	yogesh@kscl.co.in
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :

Mr. Atul Manmohan Vora

Designation :

Managing Director

Address :

D-507, Padmavati Complex, New Link Road, Dahanukarwadi, Kandivali (W), Mumbai – 400 067, Maharashtra, India.

Date of Birth/Age :

13.01.1973

Qualification :

B.Com

Experience :

20 Years

Date of Appointment :

02.03.2006

DIN No.:

00014989

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	U51102MH2006PLC160204	KRISHNA SOLVECHEM LIMITERD	Managing Director	01-10-10	02-03-06	-	Active	NO

Name :

Mr. Yogesh Manmohan Vora

Designation :

Whole Time Director

Address :

D-507, Padmavati Complex, New Link Road, Dahanukarwadi, Kandivali (W), Mumbai – 400 067, Maharashtra, India.

Date of Birth/Age :

31.03.1975

Qualification :

Chemical Engineer

Experience :

18 Years

Date of Appointment

02.03.2006

DIN No.:

00014993

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	U51102MH2006PLC160204	KRISHNA SOLVECHEM LIMITERD	Managing Director	01-10-10	02-03-06	-	Active	NO

Name :

Mr. Prakash Manmohan Vora

Designation :

Whole-time Director

Address :

D-502, Padmavati Complex, New Link Road, Dahanukarwadi, Kandivali (W), Mumbai – 400 067, Maharashtra, India.

Date of Birth/Age :

22.10.1966

Qualification :

B.Com

Experience :

16 Years

Date of Appointment :

02.03.2006

DIN No.:

01484978

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	U51102MH2006PLC160204	KRISHNA SOLVECHEM LIMITERD	Whole-time Director	01-10-10	02-03-06	-	Active	NO

Name :

Mr. Ajay Jitendra Shah

Designation :

Director

Address :

B-1406/1404, Shankar Park, Shankar Lane, Kandivali (West), Mumbai-400 067, Maharashtra, India.

Date of Birth/Age :

18.03.1972

Date of Appointment :

01.10.2010

DIN No.:

03614750

Name :

Mr. Hemang Ashokkumar Vyas

Designation :

Director

Address :

5A-16, Majethia Nagar, 53, S.V.Road, Kandivali (West), Mumbai-400 067, Maharashtra, India.

Date of Birth/Age :

11.04.1973

Date of Appointment :

01.10.2010

DIN No.:

03614757

KEY EXECUTIVES

Name :	Mr. Shriram P. Imartey
Designation :	Practising Company Secretary
Address :	A-701, Royal Spring Field CHS Limited, Behind Shagun Hotel, Navagaon, Dahisar (West), Mumbai, Maharashtra, India.

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Manmohan Vora	3500
Atul Manmohan Vora	2314000
Prakash Manmohan Vora	237500
Yogesh Manmohan Vora	392500
Veenaben Manmohan Vora	1000
Bhavan Atul Vora	100500
Asha Prakash Vora	500
Falguni Yogesh Vora	500
TOTAL	3050000

As on 31.03.2012

Names of Allottee/s	No. of Shares
Mr. Atul Manmohan Vora	200000
TOTAL	200000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Traders of Organic Solvents

Products :

Product Description	ITC Code
T. G. UREA	31021000
METHANOL	29051100
ETHYLENE DICHLORIDE	29031500

Terms :

Selling :

Credit [30 Days / 60 Days / 90 Days]

Purchasing :

L/C/ Credit [30 Days / 60 Days / 90 Days]

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

40 (Approximately) [In Office: 35 and in Branch: 5]

Bankers :

The Kapol Co.Operative Bank Limited, Royal House, 1^st Floor, Mathuradas Road, Kandivali (West), Mumbai – 400 067, Maharashtra, India.

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Cash Credit (Loan is secured by hypothecation of stock and book debts and personal property of director’s including NSC and LIC as well as personal guarantee of director’s)	59.674	50.822
Total	59.674	50.822
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Fully Convertible Debentures “A” Series 0.350 (P.Y.:.0.400) 15% Fully convertible Debentured of Rs.10 each “B” Series 1.901 (P.Y.: Nil) 15% Fully convertible Debentured of Rs.10 each	22.515	4.005
Term Loan	2.779	6.468
Total	25.294	10.473

Banking Relations :	--
Auditors :
Name :	S.H. Bathiya And Associates Chartered Accountant
Address :	2, Tardeo AC Market, 4^th Floor, Tardeo Road, Mumbai – 400 034, Maharashtra, India.
Tel. No.:	91-22-4355 8000
Fax No.:	91-22-4355 8080
E-Mail :	info@shbathiya.com
Website:	www.shbathiya.com
PAN.:	AAOFS5053K
Enterprises where key management personnel exercise significant influence :	· Krishna Chemicals: Sole Proprietership of KMP (Mumbai) · Krishna Chemicals: Sole Proprietership of KMP (Gujarat)

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3050000	Equity Shares	Rs.10/- each	Rs. 30.500 Millions

After 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3250000	Equity Shares	Rs.10/- each	Rs. 32.500 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		30.500	28.000	20.000
2] Share Application Money		0.000	0.000	15.000
3] Reserves & Surplus		52.932	40.687	4.665
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		83.432	68.687	39.665
LOAN FUNDS
1] Secured Loans		59.674	50.822	45.338
2] Unsecured Loans		25.294	10.473	1.029
TOTAL BORROWING		84.968	61.295	46.367
DEFERRED TAX LIABILITIES		0.121	0.046	0.000
TOTAL		168.521	130.028	86.032
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.247	2.476	1.122
Capital work-in-progress		1.429	0.000	0.000
INVESTMENT		0.500	0.500	0.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	24.910	8.811	6.495
	Sundry Debtors	220.855	194.827	130.465
	Cash & Bank Balances	11.801	6.483	4.080
	Other Current Assets	0.000	0.000	2.753
	Loans & Advances	22.662	12.926	9.042
Total Current Assets		280.228	223.047	152.835
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	112.133	95.417	67.914
	Other Current Liabilities	0.345	0.141	0.000
	Provisions	4.405	0.454	0.544
Total Current Liabilities		116.883	96.012	68.458
Net Current Assets		163.345	127.035	84.377
MISCELLANEOUS EXPENSES		0.000	0.017	0.033
TOTAL		168.521	130.028	86.032

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	764.420	560.332	441.436
		Other Income	0.433	0.442	0.049
		TOTAL (A)	764.853	560.774	441.485
Less	EXPENSES
		Purchase Made for Re-sale	704.720	517.261	413.367
		Salaries, Wages and Bonus	2.100	2.174	2.040
		Management Remuneration	0.908	0.108	0.000
		Payment of Auditors	0.138	0.051	0.066
		Insurance Expenses	0.680	0.698	0.456
		Power and fuel	0.163	0.122	0.124
		Other Expenditure	39.019	27.218	18.269
		TOTAL (B)	747.728	547.632	434.322
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		17.125	13.142	7.163
Less	FINANCIAL EXPENSES (D)		9.700	8.563	3.953
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7.425	4.579	3.210
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.294	0.231	0.309
	PROFIT BEFORE TAX (E-F) (G)		7.131	4.348	2.901
Less	TAX (I)		4.886	(0.083)	(0.007)
	PROFIT AFTER TAX (G-I) (J)		2.245	4.431	2.908
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.686	4.255	1.757
	BALANCE CARRIED TO THE B/S		10.931	8.686	4.665
	IMPORTS VALUE		36.729	2.666	NA
	Earnings Per Share (Rs.)		0.80	2.11	1.44

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.29	0.79	0.65
Net Profit Margin (PBT/Sales)	(%)	0.93	0.77	0.65
Return on Total Assets (PBT/Total Assets}	(%)	2.51	1.92	1.88
Return on Investment (ROI) (PBT/Networth)		0.08	0.06	0.07
Debt Equity Ratio (Total Liability/Networth)		2.41	2.29	2.89
Current Ratio (Current Asset/Current Liability)		2.39	2.32	2.23

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
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	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

OPERATIONS:

The Business activities of the Company has commenced in full swing and has booked sales of Rs.764.420 millions and has earned a profit before tax of Rs.7.131 millions. The directors do not recommend any Dividend as major expansions plans are under process.

During the year company has acquired land from GIDC for commencement of manufacturing activities and also Board has taken necessary steps to commence manufacturing activities. The company also opened its branch office in Kandla towards expansion of business and also good response has been received from local customers.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

PARTICULARS	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Counter Guarantee given by the Company for Guarantee given by the Bank	6.787	3.980

Bankers Charges Report as per Registry

Corporate identity number of the company	U51102MH2006PLC160204
Name of the company	KRISHNA SOLVECHEM LIMITED
Address of the registered office or of the principal place of business in India of the company	M-2, Sriniwas Building, 382/384, Narshi Natha Street, Mumbai – 400 009, Maharashtra, India.
Email:	atul@kscl.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10108190
Type of charge	Book Debts Hypothecation of goods Procured under L/C
Particular of charge holder	The Kapol Co.operative Bank Limited, Royal House, 1^st Floor, Mathuradas Road, Kandivali (West), Mumbai-400 067, Maharashtra, India.
Email:	kapol@bom3.vsnl.com
Nature of instrument creating charge	Letter ceding Pari Passu Charge by The Kapol Co.operative Bank Limited.
Date of instrument Creating the charge	27.02.2012
Amount secured by the charge	Rs.70.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 14% p.a. subject to RBI directive from time to time. Additional 2% will be charged on the expiry of the limit. Terms of Repayment Payable on Demand Margin 40% Cost/Market Price of stock, whichever is lower 50% of book debts not exceeding 90 Days 25% of L/C issued amount Extent and operation of the charge The loan has been granted against hypothecation of book debts and hypothecation of goods procured under L/C and equitable mortgage of all securities as mentioned in sanction letter.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of book debts and hypothecation of goods procured under L/C equitable mortgage of all securities as mentioned in sanction letter.
Date of instrument modifying the charge	27.01.2012
Particulars of the present modification	In this modification there is no change in any of the terms and conditions including loan amount except Kapol Bank granting Pari Passu charge on the current assets in favour of Axis Bank Limited for loan amount of Rs.20.000 millions.

FIXED ASSETS

· Plan and Machinery

· Computer

· Furniture and Fittings

· Vehicles

· 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.55.56
UK Pound	1	Rs.85.51
Euro	1	Rs.69.50

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	DPTP

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		34

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.