MIRA INFORM REPORT

Report Date :

22.06.2012

IDENTIFICATION DETAILS

Name :	SALVI CHEMICAL INDUSTRIES LIMITED
Registered Office :	214, Blue Rose Industrial Estate, Western Express Highway, Borivali (East), Mumbai – 400066, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	10.10.2005
Com. Reg. No.:	11-156633
Capital Investment/ Paid-up Capital:	Rs.79.432 Millions
CIN No.: [Company Identification No.]	U24230MH2005PLC156633
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter of Chemical and Pharmaceutical Products.
No. of Employees:	250 (Approximately)

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 732100
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/Administrative Office :	214, Blue Rose Industrial Estate, Western Express Highway, Borivali (East), Mumbai – 400066, Maharashtra, India
Tel. No.:	91-22-28701438
Fax No.:	91-22-28703656
E-Mail :	salvi@born3.vsnl.net.in info@salvichem.com
Unit1 :	E -93/94, MIDC Tarapur, Boisur, Maharashtra, India
Unit 2 :	E -90, MIDC Tarapur, Boisur, Maharashtra, India

DIRECTORS

As on 30.09.2011

Name :

Mr. Kantilal. N. Salvi

Designation :

Director

Address :

B 108, Ashoka Tower, Kulupwadi Road, Borivali (E), Mumbai – 400066, Maharashtra, India

Date of Birth/Age :

11.03.1945

Qualification :

B. Sc

Date of Appointment :

10.10.2005

Din No:

00535466

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	U24230MH2005PLC156633	SALVI CHEMICAL INDUSTRIES LIMITED	Whole-time director	1/8/2006	10/10/2005	-	Active	NO
2	U51900MH2008PTC186057	FERROX CHEMICALS PRIVATE LIMITED	Director	21/08/2008	21/08/2008	-	Active	NO

Name :

Mr. Nirav Salvi

Designation :

Director

Address :

B 108, Ashoka Tower, Kulupwadi Road, Borivali (E), Mumbai – 400066, Maharashtra, India

Date of Birth/Age :

30.03.1974

Qualification :

B. Sc

Date of Appointment :

10.10.2005

Din No:

00535510

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	U24230MH2005PLC156633	SALVI CHEMICAL INDUSTRIES LIMITED	Managing director	1/8/2006	10/10/2005	-	Active	NO

Name :

Mr. Kaushal Kantilal Salvi

Designation :

Whole Time Director

Address :

B 108, Ashoka Tower, Kulupwadi Road, Borivali (E), Mumbai – 400066, Maharashtra, India

Date of Appointment :

01.02.2011

Din No:

00535546

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	U24230MH2005PLC156633	SALVI CHEMICAL INDUSTRIES LIMITED	Whole-time director	1/2/2011	10/10/2005	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Kantilal. N. Salvi	11100
Nirav Salvi	11500
Kaushal Kantilal Salv	10500
Avni N Salvi	5550
Shweta K. Salvi	5550
Amita K. Salvi	5550
Kantilal N Salvi (HUF)	5550
Kantilal N. Salvi, Jt. Nirav K Salvi, Jt. Kaushal K Salvi	27,06,750
Kantilal N Salvi (HUF),Nirav K. Salvi	1,68,125
Nirav K. Salvi, Jt. Avni N Salvi	24,03,525
Kaushal K. Salvi, Jt. Shweta K. Salvi	14,41,650
Kaushal K. Salvi (H.U.F), Jt. Shweta K. Salvi	2,21,650
Amita K. Salvi, Jt. Nirav K. Salvi	78,350
Avni N Salvi, Jt. Nirav K. Salvi	1,15,850
Shweta K. Salvi, Jt. Kaushal K. Salvi	55,200
Nirav K. Salvi (H.U.F)	6,63,800
Mr. Pramod Patel	33,000
Total	7943200

As on 30.09.2011

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	0.04
Directors or relatives of directors	99.96
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer and Exporter of Chemical and Pharmaceutical Products.

Products :

ITC Code No.	Product Description
29171940	Ferrous Fumarate
29051490	Methyl Iodide
29224910	Amino Acetic (Acid) (Glycine

PRODUCTION STATUS As on (31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Bulk Drugs Chemicals	KGS	6900.00	2424.792

GENERAL INFORMATION

No. of Employees :

250 (Approximately)

Bankers :

· The Saraswat Cooperative Bank Limited (Lead Banker), SME Vile Parle Branch, Bholanath Cooperative Housing Society, Subhash Road, Vile Parle (East), Mumbai-400057, Maharashtra, India

· Bank of India

· HDFC

Facilities :

Rs.in Millions

SECURED LOANS	31.03.2011	31.03.2010
Rupee term loan secured	56.564	46.745
Working capital loans secured	96.465	121.550
Loan takes for vehicle secured	1.482	1.431
Total	154.511	169.726
UNSECURED LOANS	31.03.2011	31.03.2010
Other Debt Secured	21.583	0.000

Banking Relations :

--

Auditors :

Name :

Patel and Kruup

Chartered Accountant

Address :

6, Cresent Chambers, 1^st Floor, Tamrind Lane, Fort, Mumbai – 400023, Maharashtra, India

Tel. No.:

91-22-22670815

Pan No.:

AAAPP8616R

Associates as 31.03.2010

Name:	Nutra Care International Limited
Address:	Borivali – (W), Mumbai, Maharashtra, India
Line of Business	Manufacturer and Exporter of Chemicals and Pharmaceuticals Products

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7943200	Equity Share	Rs.10/- each	Rs.79.432 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		79.432	74.970	71.400
2] Share Application Money		0.000	2.200	0.000
3] Reserves & Surplus		103.597	71.995	34.715
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		183.029	149.165	106.115
LOAN FUNDS
1] Secured Loans		154.511	169.726	119.990
2] Unsecured Loans		21.583	0.000	0.000
TOTAL BORROWING		176.094	169.726	119.990
DEFERRED TAX LIABILITIES		10.364	7.575	4.117
TOTAL		369.487	326.466	230.222
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		140.593	121.877	76.496
Capital work-in-progress		2.194	4.525	7.213
INVESTMENT		0.025	0.025	0.025
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	187.904	99.128	116.009
	Sundry Debtors	267.016	309.692	207.123
	Cash & Bank Balances	0.750	1.334	6.147
	Other Current Assets	7.347	13.465	3.519
	Loans & Advances	94.423	45.504	43.030
Total Current Assets		557.440	469.123	375.828
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	291.199	240.503	207.761
	Other Current Liabilities	7.729	6.238	5.672
	Provisions	32.047	22.703	16.415
Total Current Liabilities		330.975	269.444	229.848
Net Current Assets		226.465	199.679	145.980
MISCELLANEOUS EXPENSES		0.210	0.360	0.508
TOTAL		369.487	326.466	230.222

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	671.730	650.826	550.298
		Other Income	0.805	0.699	18.118
		TOTAL (A)	672.535	651.525	568.416
Less	EXPENSES
		Consumption material Changes inventories	498.685	509.112
		Manufacturing Expenses	20.419	15.134
		Employee relative expenses	25.011	23.481
		Administrative selling other expenses	47.243	26.928
		TOTAL (B)	591.358	574.655	530.981
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		81.177	76.870	37.435
Less	FINANCIAL EXPENSES (D)		23.845	18.292	18.728
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		57.332	58.578	18.707
Less/ Add	DEPRECIATION/ AMORTISATION (F)		11.226	7.377	4.047
	PROFIT BEFORE TAX (E-F) (G)		46.106	51.201	14.660
Less	TAX (H)		12.132	9.746	5.152
	PROFIT AFTER TAX (G-H) (I)		33.974	41.455	9.508
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		66.995	31.715	23.206
Less	APPROPRIATIONS
		Transfer to General Reserve	6.385	2.000	1.000
		Dividend		0.605	0.000
		Tax on Dividend		3.570	0.000
	BALANCE CARRIED TO THE B/S		94.584	66.975	31.714
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	159.579	182.853	150.079
	TOTAL EARNINGS		159.579	182.853	150.079
	Earnings Per Share (Rs.)		5.80	NA	1.33

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.05	6.36	1.67
Net Profit Margin (PBT/Sales)	(%)	6.86	7.87	2.66
Return on Total Assets (PBT/Total Assets}	(%)	6.68	8.68	3.23
Return on Investment (ROI) (PBT/Networth)		0.25	0.34	0.14
Debt Equity Ratio (Total Liability/Networth)		2.77	2.95	3.30
Current Ratio (Current Asset/Current Liability)		1.67	1.74	1.64

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters 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	No
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

Operations:

During the year the sales turnover has been registered Rs.646.695 Millions and Net profit has been registered Rs.33.974 Millions The F,O.B Value of export turnover 159.579 Millions

Contingent Liability:

Particular	31.03.2011
Guarantee given by the banker on behalf of the company	6.400
Letters of Credit	181.041

Note : Registered Office of the company has been shifted from B 108, Ashoka Tower Skulupwadi Road, Borivali (East), Mumbai – 400 066, Maharashtra, India to the present address w.e.f. 01.08.2006

Form 8

Corporate identity number of the company	U24230MH2005PLC156633
Name of the company	SALVI CHEMICAL INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	214, Blue Rose Industrial Estate, Western Express Highway, Borivali (E), Mumbai – 400066, Maharashtra, India Email: info@salvichem.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	The Saraswat Cooperative Bank Limited (Lead Banker), SME Vile Parle Branch, Bholanath Cooperative Housing Society, Subhash Road, Vile Parle (East), Mumbai-400057, Maharashtra, India
Nature of instrument creating charge	Agreement of Hypothecation of Movable Property
Date of instrument Creating the charge	27.12.2011
Amount secured by the charge	Rs.29.400 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: 15.5%p.a. or at such rate as maybe determined by the bank from time to time Terms of repayment On demand or by 26 June 2017 if the same is not demanded earlier Margin 30% Extent and operation of the charge This is term loan facility
Short particulars of the property charged (Including location of the property)	Hypothecation of plant and machinery tangible movable property (both present and future) belonging to the borrowers and lying and being at the borrowers place of business at Plot no E 93/94, MIDC,Tarapur Boisar Dist Thane or wherever else the same maybe.

Fixed Assets:

• Land
• Factory Building
• Plant and Machinery
• Furniture and Fixtures
• Laboratory Equipment
• Computer
• Motor Cycle
• Scooter
• Air Conditioner
• Tata 407
• Cycle
• Office Equipment

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.56.42
UK Pound	1	Rs.88.45
Euro	1	Rs.71.52

INFORMATION DETAILS

Report Prepared by :

BYI

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	5
--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	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.