MIRA INFORM REPORT

Report Date :

07.03.2012

IDENTIFICATION DETAILS

Name :	COROMANDEL SQM (INDIA) PRIVATE LIMITED
Registered Office :	“Coromandel House”, 1-2-10, Sardar Patel Road, Secunderabad – 500003, Andhra Pradesh, India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.10.2009
Com. Reg. No.:	01-065404
Capital Investment/ Paid-up Capital:	Rs.39.946 Millions
CIN No.: [Company Identification No.]	U24100AP2009PTC065404
TAN No.: [Tax Deduction & Collection Account No.]	HYDC04401F
PAN No.: [Permanent Account No.]	AADCC7669K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing Water Soluble Fertilizers (WSF)
No. of Employees:	6 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ca (15)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Yet to commence business
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a joint venture between Coromandel International Limited, India and Soquimich European Holdings BV, The Netherlands. Though the company was incorporated in the year 2009, the company is yet to commence its commercial business activities. Payment terms are unknown. Initially, the company can be considered for business dealings on a secured 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 :	“Coromandel House”, 1-2-10, Sardar Patel Road, Secunderabad – 500003, Andhra Pradesh, India
Tel. No.:	91-40-27842034
Fax No.:	91-40-27844117
E-Mail :	varadarajanp@coromandel.murugappa.com info@coromandel.com
Website :	http://coromandel.com
Location :	Owned
Factory :	Located at Kakinada, Andhra Pradesh

DIRECTORS

(AS on 29.09.2011)

Name :

Dr. Ravi Prasad Gorthy

Designation :

Director

Address :

313, My Home Madhuban Apartments, Srinagar Colony, Hyderabad – 500082, Andhra Pradesh, India

Date of Birth/Age :

25.04.1955

Date of Appointment :

09.10.2009

DIN No.:

02698389

Name :

Mr. Seshadri Govindarajn

Designation :

Director

Address :

H No. 2-1-514/2, Flat No S-3, Nallakunta, Hyderabad – 500044, Andhra Pradesh, India

Date of Birth/Age :

04.01.1963

Date of Appointment :

09.10.2009

DIN No.:

00087611

Name :

Mr. Patrick Charles Philomena Vanbeneden

Designation :

Director

Address :

64 Khan Market, First Floor Annexe, New Delhi – 110003, India

Date of Birth/Age :

19.06.1957

Date of Appointment :

09.10.2009

DIN No.:

02432454

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	U24122DL2005PTC137481	SQM AGRO INDIA PRIVATE LIMITED	Director	23/01/2007	23/01/2007	-	Active	NO
2	U24100AP2009PTC065404	COROMANDEL SQM (INDIA) PRIVATE LIMITED	Director	9/10/2009	9/10/2009	-	Active	NO

Name :

Mr. Harald Olaf Rietveld

Designation :

Director

Address :

64 Khan Market, First Floor Annexe, New Delhi – 110003, India

Date of Birth/Age :

23.08.1968

Date of Appointment :

09.10.2009

DIN No.:

01241740

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	U24122DL2005PTC137481	SQM AGRO INDIA PRIVATE LIMITED	Director	23/01/2007	23/01/2007	-	Active	NO
2	U24100AP2009PTC065404	COROMANDEL SQM (INDIA) PRIVATE LIMITED	Director	9/10/2009	9/10/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS on 29.09.2011)

Names of Shareholders	No. of Shares
Coromandel International Limited,India	3998800
Soquimich European Holdings BV	3998800
Total	7997600

(AS on 29.09.2011)

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	50.00
Bodies corporate	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing Water Soluble Fertilizers (WSF)

Products :

Item Code No. (ITC Code)	Product Description
3105	WSF 19:19:19

GENERAL INFORMATION

No. of Employees :	6 [Approximately]
Bankers :	HSBC Bank, Secunderabad Branch
Facilities :	--

Banking Relations :	--
Auditors :
Name :	Shanker Giri and Prabhakar Chartered Accountants
Address :	“Guhalaya”, Flat B-7, No 262 (Old 179) Royapettah, High Road, Mylapore, Chennai – 600004, Tamilnadu, India
Tel. No.:	91-44-24992982 / 24991345
Fax No.:	91-44-24997317
PAN No. :	AAAFS9568H
Joint Venture Partner :	· Coromandel International Limited (Coromandel) · Soquimich European Holding B. V. (SQM)

CAPITAL STRUCTURE

(As on 29.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Share	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7,997,600	Equity Share	Rs.10/- each	Rs.79.976 Millions

(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
3994600	Equity Share	Rs.10/- each	Rs.39.946 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		39.946	39.946
2] Share Application Money		0.027	0.027
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		(1.293)	(0.821)
NETWORTH		38.680	39.152
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		38.680	39.152
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.596	0.000
Capital work-in-progress		18.889	12.759
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000
	Sundry Debtors	0.000	0.000
	Cash & Bank Balances	19.520	26.763
	Other Current Assets	0.000	0.000
	Loans & Advances	0.180	0.000
Total Current Assets		19.700	26.763
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	0.344	0.345
	Other Current Liabilities	0.116	0.025
	Provisions	0.045	0.000
Total Current Liabilities		0.505	0.370
Net Current Assets		19.195	26.393
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		38.680	39.152

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	0.000	0.000
		Other Income - dividends	1.121	0.324
		TOTAL	1.121	0.324
Less	EXPENSES
		Employees cost and other Expenses	1.675	0.210
		Preliminary Expenses written off	0.000	0.934
		TOTAL	1.675	1.144
Less/ Add	DEPRECIATION/ AMORTISATION		0.008	0.000
	PROFIT BEFORE TAX		(0.472)	(0.821)
Less	TAX		0.000	0.000
	PROFIT AFTER TAX		(0.472)	(0.821)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(0.821)	0.000
	BALANCE CARRIED TO THE B/S		(1.293)	(0.821)
	Earnings Per Share (Rs.)		(0.06)	(0.18)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010
PAT / Total Income	(%)	(42.11)	(253.40)
Return on Total Assets (PBT/Total Assets}	(%)	(2.33)	(3.07)
Return on Investment (ROI) (PBT/Networth)		(0.01)	(0.02)
Debt Equity Ratio (Total Liability/Networth)		0.01	0.01
Current Ratio (Current Asset/Current Liability)		39.01	72.33

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

OPERATIONS

During the year the Company received all the approvals required for commencement of construction of the factory at Kakinada, including environment clearance from Pollution Control Board. The construction activities commenced during March 2011 and the Project is now in the final stages of completion. Civil construction is almost over and WSF plant erection is completed. The commercial production is expected to commence during October 2011 subject to receiving Consent for Operation from AP Pollution Control Board. The amount spent on the Project till 31St March 2011 was Rs.18.900 Millions including expenditure during construction period. During the year the Company earned a dividend income of Rs.1.211 Millions by investing the surplus monies in mutual funds. The operations of the Company resulted in a net loss of Rs.0.472 Millions.

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 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.50.02
UK Pound	1	Rs.79.31
Euro	1	Rs.66.02

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	-
--CREDIT LINES	1~10	1
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		15

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.