MIRA INFORM REPORT

Report Date :

14.03.2012

IDENTIFICATION DETAILS

Name :	SHYAM CHEMICALS PRIVATE LIMITED
Registered Office :	Jash Chambers, 5^th Floor, Sir P.M. Road, Fort, Mumbai – 400 001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	07.05.1971
Com. Reg. No.:	11-171672
Capital Investment / Paid-up Capital :	Rs.1.500 millions
CIN No.: [Company Identification No.]	U24110MH1971PTC171672
TAN No.: [Tax Deduction & Collection Account No.]	MUMS5909B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Chemicals and Industrial Chemicals.
No. of Employees :	30 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 327000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. General financial position is good. 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.

INFORMATION PARTED BY

Name :	Mr. Madhusudan
Designation :	Accounts Manager
Contact No.:	91-22-40985000
Date :	12.03.2012

LOCATIONS

Registered Office :	Jash Chambers, 5^th Floor, Sir P.M. Road, Fort, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-40985000
Fax No.:	91-22-40985050/ 40985005
E-Mail :	shyamchemicals@vsnl.com accounts@shyamchemicals.com
Website :	http://www.shyamchemicals.com
Location :	Owned
Factory :	Bhar, Plot No.6004, GIDC, Ankleshwar – 393 002, Gujarat, India
Location :	Rented
Office :	Industry House, Ashram Road, Ahmedabad – 380 009, Gujarat, India

DIRECTORS

As on 19.09.2011

Name :	Mr. Sharad Shreenarain Somani
Designation :	Director
Address :	6^th Floor, Shreeniketan, 86 A, A.N.S. Road, Mumbai, Maharashtra, India
Date of Birth/Age :	14.10.1951
Date of Appointment :	11.08.2003
DIN No.:	00137273
Name :	Mr. Sevantilal Jivanlal Parekh
Designation :	Director
Address :	72, Marine Drive, Mumbai, Maharashtra, India
Date of Birth/Age :	21.07.1932
Date of Appointment :	07.05.1971
DIN No.:	00010767
Name :	Mr. Mahesh Madanlal Somani
Designation :	Director
Address :	Oceana 214, Marine Drive, A.N.S. Road, Mumbai, Maharashtra, India
Date of Birth/Age :	13.10.1949
Date of Appointment :	23.11.1971
DIN No.:	00137180
Name :	Mr. Rajesh Kumar Tapuriah
Designation :	Director
Address :	82, Sujata Malabar Hills, Mumbai, Maharashtra, India
Date of Birth/Age :	06.01.1965
Date of Appointment :	01.10.2005
DIN No.:	00203841

KEY EXECUTIVES

Name :	Mr. Madhusudan
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.09.2011

Names of Shareholders	No. of Shares
Madanlal G. Tapuriah	485
Prafulchandra D. Contractor	55
Nandkumar Contractor	100
Mira P. Contractor	95
Indradevi Tapuriah	220
S.S. Tapuriah	475
Shantadevi Tapuriah	620
Sunil S. Parekh and Sujata Parekh	200
Sarla S. Parekh and S.J. Parekh	700
Sujata Parekh and S.J. Parekh	945
Sushilkumar Tapuriah	25
Sudeshankumar Tapuriah	25
Rekha Tapuriah	100
Kusum Tapuriah	25
Sashikanth Tapuriah	25
Madanlal Tapuriah and Indira Tapuriah	500
Renuka Bhansali and S.J. Parekh	200
Sunil S. Parekh and Sujata Parekh	100
S.J. Parekh and Sunil S. Parekh	10
Sunil S. Parekh and S.J. Parekh	90
Dushyant Somani and M.M. Somani	2191
Sonpriya Investments Private Limited, India	1090
Kanchanben Chokshi and Sujata Parekh	40
Vishal Somani and Ranjana Somani	565
Vishal Somani and Garima Somani	367
Sharad Somani and Poonam Somani	50
Poonam Somani and Sharad Somani	42
Ankit Somani and Poonam Somani	500
Vishal Somani and Ranjana Somani	750
Mahesh Somani and Manjushree Somani	500
Vaikunth Trading Company Private Limited, India	2495
Sujata Parekh Kumar jointly with Vikaram Himatlal Parekh jointly with Mukesh Mahendrakumar Maniar	100
Swvantilal J. Parekh jointly with Sarla Sevantilal Parekh jointly with Sujata Parekh Kumar	1315
Total	15000

As on 19.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	23.90
Directors or relatives of directors	76.10
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Chemicals and Industrial Chemicals.

Products :

Product Description	Item Code
Cuprous Chloride	28273904
Cupric Chloride Anhydrous	28273909
Copper Carbonate	28365000
Copper Oxychloride	38082050

Exports :

Products :

Chemicals and Industrial Chemicals

Countries :

v China

v Germany

v US

v Bangkok

Imports :

Products :

Finished Goods

Countries :

Dubai

Terms :

Selling :

Credit (30/ 60/ 90 days)

Purchasing :

L/C (30 days)

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	2009-10
a. Licensed and Installed Capacity
i) Cuprous and Cupric Chloride	M.T.	3000
ii) Cuprous and Cupric Oxide	M.T.	100

Particulars	Unit	2009-10
b. Production: (Saleable)
i) Cuprous and Cupric Chloride	M.T.	1820.542
ii) Cupric Chloride Anh	M.T.	120.630
iii) Cupric Chloride Dih	M.T.	8.450
iv) Copper Oxycl (OP)	M.T.	6.342
v) Copper Oxycl (T)	M.T.	72.093
vi) Copper Oxycl (WP)	M.T.	584.190

GENERAL INFORMATION

Suppliers :

v Shrimp Metals

Customers :

Manufacturer

v Realize India

v Arvind Pharma

v Mazda Colours

No. of Employees :

30 (Approximately)

Bankers :

v Bank of India, Mumbai Overseas Branch, 70-80, Mahatma Gandhi Road, Mezzaine Floor, Mumbai – 400 023, Maharashtra, India

v Bank of India, Mumbai Overseas Branch, Fort, Mumbai – 400 001, Maharashtra, India

v ICICI Bank Limited, Mumbai, Maharashtra, India

v Bank of India, Bhadra Branch, Ahmedabad – 380 001, Gujarat, India

v ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda – 390 015, Gujarat, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
1. From Bankers:
(a) Demand Loan	0.000	0.000
(b) Cash Credit Account	102.204	73.711
(c) Term Loan	3.000	5.250
2. Bank Car Loan	3.790	0.000
Total	108.994	78.961

Notes: All the facilities (existing and new) from Bank of India are secured by hypothecation of Stock, Book Debts, Plant and Machinery, Pledge of Bills/ Import Trust Receipts/ Margin TDR’s etc. and equitable mortgage of factory block situated at GIDC, Ankleshwar and Premises situated at Centre Point, Panchwati, Ahmedabad, further all the facilities are jointly and severally guaranteed by three directors of the company.

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
(I) From Directors/ a Firm in which Directors are interested	2.765	2.403
(II) From Directors	1.165	1.165
(III) From Shareholders	2.583	3.164
(IV) Intercorporate Deposits	1.712	1.601
Total	8.225	8.333

Banking Relations :	--
Auditors :
Name :	S.G. Kabra and Company Chartered Accountants
Address :	Wavell House, 1^st Floor, 1^st Dhobi Talao Lane, Mumbai – 400 002, Maharashtra, India
Tel. No.:	91-22-22010708/ 22004533
Income-tax PAN of auditor or auditor's firm :	AAVFS3160L
Associates/Subsidiaries :	Akin Chemicals Private Limited

CAPITAL STRUCTURE

As on 19.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/-each	Rs.2.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15000	Equity Shares	Rs.100/-each	Rs.1.500 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		1.500	1.500	1.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		80.201	65.712	56.608
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		81.701	67.212	58.108
LOAN FUNDS
1] Secured Loans		108.994	78.961	32.635
2] Unsecured Loans		8.225	8.333	8.463
TOTAL BORROWING		117.219	87.294	41.098
DEFERRED TAX LIABILITIES		1.031	1.005	1.028
TOTAL		199.951	155.511	100.234
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		45.877	42.646	46.361
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.119	0.099	0.099
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	31.261	29.456	16.203
	Sundry Debtors	117.983	75.700	35.519
	Cash & Bank Balances	1.001	0.173	0.156
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	37.577	39.622	29.504
Total Current Assets		187.822	144.951	81.382
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5.013	4.849	2.762
	Other Current Liabilities	14.230	11.550	9.937
	Provisions	14.624	15.786	14.909
Total Current Liabilities		33.867	32.185	27.608
Net Current Assets		153.955	112.766	53.774
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		199.951	155.511	100.234

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	650.000 (Approximately)	532.586	506.830
		Other Income	NA	0.411	0.125
		TOTAL (A)	NA	532.997	506.955
Less	EXPENSES
		Raw Materials Consumed	NA	465.613	453.048
		Manufacturing Expenses	NA	13.068	8.486
		Payment and Provisions for Employees	NA	8.906	6.399
		Administration and Other Expenses	NA	8.851	2.939
		Selling and Distribution Expenses	NA	14.833	18.809
		Excise Duty on Finished Goods	NA	0.000	(0.503)
		Increase/ Decrease in Stock	NA	(4.552)	7.506
		TOTAL (B)	NA	506.719	496.684
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	26.278	10.271
Less	FINANCIAL EXPENSES (D)		NA	10.970	11.148
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		27.837	15.308	(0.877)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.141	5.340	4.781
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		22.696	9.968	(5.658)
Less	TAX (H)		7.743	0.438	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		14.953	9.530	(5.658)
Less/ Add	DEFERRED TAX LIABILITY / ASSET		0.026	(0.022)	0.531
Less	INCOME TAX OF EARLIER YEAR		--	0.010	--
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		36.655	28.552	34.741
Less	APPROPRIATIONS
		Transfer to General Reserve	1.500	1.000	--
		Proposed Dividend	0.375	0.375	--
		Tax on Dividend	0.062	0.064	--
	BALANCE CARRIED TO THE B/S		49.645	36.655	28.552
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	493.938	361.486	377.245
	TOTAL EARNINGS		493.938	361.486	377.245
	C.I.F. VALUE OF IMPORTS		531.185	291.429	282.294
	Earnings/ (Loss) Per Share (Rs.)		99.69	635.33	(377.20)

Expected Sales (2011-2012): Rs.750.000 millions

The above information has been parted by Mr. Madhusudan (Accounts Manager).

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	1.79	(1.12)
Net Profit Margin (PBT/Sales)	(%)	NA	1.87	(1.12)
Return on Total Assets (PBT/Total Assets}	(%)	9.71	5.31	(4.43)
Return on Investment (ROI) (PBT/Networth)		0.28	0.15	(0.10)
Debt Equity Ratio (Total Liability/Networth)		1.85	1.78	1.18
Current Ratio (Current Asset/Current Liability)		5.55	4.50	2.95

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Creditors	5.013	4.849	2.762

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	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	--
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	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	--
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

Note:

Registered office of the company has been shifted from Industry House, Ashram Road, Ahmedabad, Gujarat to the present address w.e.f. 07.05.2007.

OPERATING PERFORMANCE:

The company’s performance during the year has been better as compared to previous year because of the global economic recovery during the year and subsequent increase in the exports as well as domestic business.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24110MH1971PTC171672
Name of the company	SHYAM CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Jash Chambers, 5^th Floor, Sir P.M. Road, Fort, Mumbai – 400 001, Maharashtra, India E-Mail: shyamchemicals@vsnl.com
This form is for	Modification of charge
Charge identification number of the modified	10316329
Type of charge	Others (Charge on stocks and receivables)
Particular of charge holder	CIN No.: L65190GJ1994PLC021012 ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda – 390 015, Gujarat, India E-Mail: abhijit.singnapurkar@icicibank.com
Nature of description of the instrument creating or modifying the charge	Earlier charge was created on working capital facility of Rs.175.000 millions and immovable properties for working capital limit of Rs.175.000 millions and Rs.30.000 millions of derivative limits. Now they are extending charge on book debts and receivables for derivative limits also.
Date of instrument Creating the charge	22.02.2012
Amount secured by the charge	Rs.205.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Not applicable Terms of Repayment: 12 months Margin: As per sanction letter Extent and Operation of the charge: First and exclusive charge
Date of latest modification prior to the present modification	11.02.2012
Particulars of the present modification	Earlier charge was created on working capital facility of Rs.175.000 millions and immovable properties for working capital limit of Rs.175.000 millions and Rs.30.000 millions of derivative limits. Now they are extending charge on book debts and receivables for derivative limits also.

TRADE REFERENCES:

v Realize India

v Arvind Pharma

v Mazda Colours

v Shirmp Metals

FIXED ASSETS:

v Land (Leasehold)

v Building Factory

v Building Office - Ahmedabad

v Building Office -Mumbai

v Plant and Machinery

v Furniture and Fixtures

v Vehicles

v Office Equipments

v Technical Know-how

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.49.85
UK Pound	1	Rs.77.97
Euro	1	Rs.65.62

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.