MIRA INFORM REPORT

Report Date :

02.03.2012

IDENTIFICATION DETAILS

Name :	J.M. HUBER INDIA PRIVATE LIMITED (w.e.f. 15.11.2007)
Formerly Known As :	HUBER CHEMICALS INDIA Private Limited
Registered Office :	4014-19, Oberoi estate or Chandivli Farms Road, Andheri (East), Mumbai – 400 072, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	07.08.1992
Com. Reg. No.:	11-068071
Capital Investment / Paid-up Capital :	Rs.225.000 millions
CIN No.: [Company Identification No.]	u24110mh1992ptc068071
TAN No.: [Tax Deduction & Collection Account No.]	mumh02986E
PAN No.: [Permanent Account No.]	aaach2824a
Legal Form :	Private Limited Liability Company
Line of Business :	The company is engaged mainly in the business of manufacturing of precipitated silicas and merchandise trade of speciality chemicals.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1788000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of J.M. Huber Corporation, USA. It 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/ Factory :	4014-19, Oberoi estate or Chandivli Farms Road, Andheri (East), Mumbai – 400 072, Maharashtra, India
Tel. No.:	91-22-28474607/ 28470259
Fax No.:	91-22-28476066
E-Mail :	gopal.iyer@huber.com
Website :	www.huber.com

DIRECTORS

As on 29.09.2011

Name :	Mr. Donald George Rubright
Designation :	Director
Address :	808, Drewry Street, NE Atlanta Georgia 30036, U.S.A.
Date of Birth/Age :	01.04.1953
Date of Appointment :	15.12.2004
DIN No.:	00400355
Name :	Mr. Gopalakrishnan Anantharaman Iyer
Designation :	Managing Director
Address :	104, Primrose Glendale Gladys Alvares Marg, Off Pokhran Road No.2, Thane (West) – 400 610, Maharashtra, India
Date of Birth/Age :	30.09.1960
Qualification :	B.Com, A.C.A., A.I.C.W.A., A.C.S., M.A.C. I
Experience :	30 Years
Date of Appointment :	01.07.2006
DIN No.:	00388092
Name :	Mr. Rajeev Bhalchandra Karpe
Designation :	Director
Address :	3771, Brookcroft Place, Boothwyn PA 19061, U.S.A.
Date of Birth/Age :	15.04.1959
Date of Appointment :	30.06.2006
DIN No.:	00400131
Name :	Mr. Walter Andrew Trott
Designation :	Director
Address :	128, Brown Stone Drive Mooresville, North Carolina 28117, U.S.A.
Date of Birth/Age :	22.07.1957
Date of Appointment :	25.03.2009
DIN No.:	02585589
Name :	Mr. David Charles Herak
Designation :	Director
Address :	3242, Peachtree Road, Unit 1203, Atlanta, Georgia 30305, U.S.A.
Date of Birth/Age :	08.06.1963
Date of Appointment :	10.12.2009
DIN No.:	02853774

KEY EXECUTIVES

Name :	Mr. P.K. Mandal
Designation :	Asia Sales Director
Date of Birth/Age :	60 Years
Qualification :	B. Sc (Chem. Hons), B. Tech (Chem), D.M.S.
Experience :	34 Years
Date of Appointment :	01.03.1995

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
J.M. Huber Corporation, U.S.A.	22499999
Gopalakrishnan A. Iyer Jointly with J.M. Huber Corporation, U.S.A.	1
Total	22500000

As on 29.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :

The company is engaged mainly in the business of manufacturing of precipitated silicas and merchandise trade of speciality chemicals.

Products :

Item Code No. (ITC Code)	Product Description
28112200	Silicon Dioxide – other inorganics Oxygen Compound of Non – Metals
28399009	Commercial Metal Silicates – others

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Licensed Capacity	Installed Capacity (in Metric Tonnes per annum)	Production (In Metric Tonnes)
Spray dried silica	Not Applicable	16,800*	15,970

(* Based on current Product Mix)

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	A.F. Ferguson and Company Chartered Accountants
Address :	12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400 018, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AABFA5846M
Holding Company :	J.M. Huber Corporation, U.S.A.
Fellow Subsidiary - (only those with whom the Company has transactions during the period) :	v CP Kelco ApS , Denmark v J.M. Huber Sweden AB

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22500000	Equity Shares	Rs.10/- each	Rs.225.000 millions

Notes:

(All above Equity Shares are held by J.M. Huber Corporation, U.S.A., 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		225.000	225.000	225.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		222.021	130.321	60.289
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		447.021	355.321	285.289
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	30.120
TOTAL BORROWING		0.000	0.000	30.120
DEFERRED TAX LIABILITIES		3.140	4.280	4.499
TOTAL		450.161	359.601	319.908
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		168.734	174.312	189.234
Capital work-in-progress		46.758	2.880	1.496
INVESTMENT		4.242	4.242	4.242
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	59.479	48.974	39.748
	Sundry Debtors	122.893	101.979	109.604
	Cash & Bank Balances	82.224	41.475	0.649
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	78.017	56.044	44.359
Total Current Assets		342.613	248.472	194.360
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	72.448	50.945	46.913
	Other Current Liabilities	33.477	15.941	13.988
	Provisions	6.261	3.419	8.523
Total Current Liabilities		112.186	70.305	69.424
Net Current Assets		230.427	178.167	124.936
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		450.161	359.601	319.908

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	765.000	631.000	700.000
		Other Income
		TOTAL (A)	765.000	631.000	700.000
Less	EXPENSES
		Office Expenses	605.600	504.600	545.100
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	605.600	504.600	545.100
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		159.400	126.400	154.900
Less	INTEREST (D)		0.500	0.400	12.600
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		158.900	126.000	142.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)		21.100	22.900	26.200
	PROFIT BEFORE TAX (E-F) (G)		137.800	103.100	116.100
Less	TAX (H)		46.000	35.800	38.000
	PROFIT AFTER TAX (G-H) (I)		91.800	67.300	78.100
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		130.300	60.300	(17.800)
	Prior year adjustments		(0.100)	2.700	0.000
	PROFIT CARRIED TO THE B/S		222.000	130.300	60.300
	EARNINGS IN FOREIGN CURRENCY
		Exports of goods on F.O.B. basis	448.838	322.267	349.540
		Commission Income	5.525	6.459	3.464
	TOTAL EARNINGS		454.363	328.726	353.004
	IMPORTS
		Raw Materials	1.902	0.977	0.000
		Stores & Spare Parts	2.951	4.358	1.610
		Capital Goods	2.048	0.000	5.348
	TOTAL IMPORTS		6.901	5.335	6.958
	Earnings Per Share (Rs.)		4.08	2.99	3.47

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	12.00	10.67	11.16
Return on Total Assets (PBT/Total Assets}	(%)	26.95	24.39	30.27
Return on Investment (ROI) (PBT/Networth)		0.31	0.29	0.41
Debt Equity Ratio (Total Liability/Networth)		0.25	0.20	0.35
Current Ratio (Current Asset/Current Liability)		3.05	3.53	2.80

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

During the year the Company recorded sales of 16,109 MT (previous year: 13,724 MT) for Rs.765.000 millions (previous year: Rs.631.000 millions).

Operational efficiencies and tight control on discretionary spending during the year enabled the company to minimize the impact of increase in prices of natural gas and raw materials. Gross Profit Before Interest, Depreciation and Tax was Rs.159.400 millions (Previous Year: Rs.126.400 Millions). Profit after tax was Rs.91.800 millions (Previous Year: 67.300 Millions)

Considering future growth requirements of the business, the Directors do not recommend any dividend for the year.

CONTINGENT LIABILITIES: (As on 31.03.2011)

v Guarantee given to Gujarat Industrial Development Corporation in respect of term loan availed by Bharuch Eco Aqua Infrastructure Limited Rs.3.025 millions.

fixed assets:

v Leasehold Land

v Buildings

v Plant and Machinery

v Office Equipment

v Vehicles

v Furniture and Fittings

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.49.15
UK Pound	1	Rs.78.25
Euro	1	Rs.65.57

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		47

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.