MIRA INFORM REPORT

Report Date :

16.03.2012

IDENTIFICATION DETAILS

Name :	MALWA OXYGEN AND INDUSTRIAL GASES PRIVATE LIMITED
Registered Office :	Sector C, Industrial Area, Ratlam – 457001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	07.12.1981
Com. Reg. No.:	10-001866
Capital Investment / Paid-up Capital :	Rs.4.999 Millions
CIN No.: [Company Identification No.]	U24111MP1981PTC001866
TAN No.: [Tax Deduction & Collection Account No.]	BPLM02654B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Specialty Chemicals Intermediates and Bulk Drugs
No. of Employees :	Not Available

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 180000
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/ Factory :	Sector C, Industrial Area, Ratlam 457001, Madhya Pradesh, India
Tel. No.:	91-7412-260840/ 260170
Fax No.:	91-7412-260667
E-Mail :	basantkjain@hotmail.com
Website :	www.malwachem.com

DIRECTORS

(AS ON 30.09.2011)

Name :

Mr. Sanjay Vyas

Designation :

Director

Address :

Pushpak, 22, Mitra Niwas Road, Ratlam, Madhya Pradesh, India

Date of Appointment :

16.08.1988

DIN No.:

00019326

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24111MP1981PTC001866	MALWA OXYGEN AND INDUSTRIAL GASES PRIVATE LIMITED	Director	16-08-88	16-08-88	Active	NO
2	U24232MP1994PTC008167	MALWA DRUGS PRIVATE LIMITED	Director	17-03-94	17-03-94	Active	NO

Name :

Mr. Pushpa Vyas

Designation :

Director

Address :

Pushpak, 22, Mitra Niwas Road, Ratlam, Madhya Pradesh, India

Date of Appointment :

03.10.1984

DIN No.:

00019360

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24111MP1981PTC001866	MALWA OXYGEN AND INDUSTRIAL GASES PRIVATE LIMITED	Director	03-10-84	03-10-84	Active	NO
2	U24111MP1985PTC002889	POORNA GASES PRIVATE LIMITED	Director	01-10-93	01-10-93	Active	NO

Name :

Mr. Rajesh Vyas

Designation :

Director

Address :

Pushpak, 22, Mitra Niwas Road, Ratlam, Madhya Pradesh, India

Date of Appointment :

29.09.2001

DIN No.:

00019368

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24232MP1994PTC008167	MALWA DRUGS PRIVATE LIMITED	Director	25-09-00	25-09-00	Active	NO
2	U24111MP1981PTC001866	MALWA OXYGEN AND INDUSTRIAL GASES PRIVATE LIMITED	Director	27-09-01	27-09-01	Active	NO
3	U52100MP2010PTC023841	GREENERATION IMPEX PRIVATE LIMITED	Director	25-06-10	25-06-10	Active	NO

Name :

Mr. Pramod Kumar Vyas

Designation :

Managing Director

Address :

Pushpak, 22, Mitra Niwas Road, Ratlam, Madhya Pradesh, India

Date of Appointment :

07.12.1981

DIN No.:

00052630

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares	Percentage
Pramod Kumar Vyas	13402	26.86
Pushpa Vyas	11600	23.25
Sanjay Vyas	7500	15.03
Seema Bohra	2080	4.17
Sandeep Vyas	7446	14.93
Rajesh Vyas	4000	8.02
Rena Vyas	1930	3.87
Neetu Vays	1930	3.87
Total	49888	100.00

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	98.35
Other top fifty shareholders	1.65
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Specialty Chemicals Intermediates and Bulk Drugs

Products :

Product Description	Item Code
Oxygen and Dissolved Acetylene Gas	105

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Actual Production
Oxygen Gas	--
D.A. Gas	5236.12
Parachiloro Benzophenone and other Phenones	423962.97

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India,

Commercial Branch (Code No.9452), Mitra Niwas Road, Ratlam 457001, Madhya Pradesh, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
State Bank of India, Ratlam (M.P.)
Export Packing Credit	9.608	8.638
Cash Credit	9.856	7.200
Term Loan	1.159	1.733
Bank against hypothecation charge over the whole of the company and first mortgage and or hypothecation charge over the whole of the fixed assets of the company guaranteed by directors and shareholder Rs.24.994 million	20.623
Vehicle Loan From State Bank of India Loan (against the hypothecation of car and guaranteed by a director, term loan for new vehicle)	0.698	0.853
Total	21.321	18.424
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors	3.574	0.267
Total	3.574	0.267

Banking Relations :	--
Auditors :
Name :	Basant Jain and Company Chartered Accountant
Address :	84 Kailash Park Colony, Near Geeta Bhawan, Indore 452001, Madhya Pradesh, India
PAN No.:	ABAPJ2601H

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Share	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
90624	Equity Share	Rs.100/- each	Rs.9.062 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Share	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
49988	Equity Shares	Rs.100/- each	Rs.4.999 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		4.999	4.999	4.999
2] Share Application Money		4.074	0.000	0.000
3] Reserves & Surplus		35.348	23.416	20.405
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		44.421	28.415	25.404
LOAN FUNDS
1] Secured Loans		21.321	18.424	6.022
2] Unsecured Loans		3.574	0.267	0.000
TOTAL BORROWING		24.895	18.691	6.022
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		69.316	47.106	31.426
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		67.066	56.838	40.411
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.800	1.800	1.800
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.989	4.828	2.295
	Sundry Debtors	34.057	31.403	31.541
	Cash & Bank Balances	34.580	28.217	13.588
	Other Current Assets	0.000	0.000	1.557
	Loans & Advances	30.901	20.859	8.640
Total Current Assets		127.527	85.307	57.621
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	86.546	62.267	48.134
	Other Current Liabilities	9.302	8.475	7.901
	Provisions	31.229	28.097	12.371
Total Current Liabilities		127.077	98.839	68.406
Net Current Assets		0.450	(11.532)	(10.785)
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		69.316	47.106	31.426

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	219.427	164.086	186.045
		Other Income			6.259
		TOTAL	219.427	164.086	192.304
Less	EXPENSES
		TOTAL	192.617	141.523	180.492
	PROFIT BEFORE TAX		26.810	22.563	11.812
Less	TAX		9.000	7.800	5.800
	PROFIT AFTER TAX		17.810	14.763	6.012
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.922	1.856	NA
Less	APPROPRIATIONS
		Transfer to General Reserve	5.000	4.000	NA
		Proposed Dividend	4.999	9.998	NA
		Tax on Dividend	0.830	1.699	NA
	BALANCE CARRIED TO THE B/S		7.903	0.922	NA
	Earnings Per Share (Rs.)		356.28	259.32	120.28

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.12	9.00	3.12
Net Profit Margin (PBT/Sales)	(%)	NA	NA	6.34
Return on Total Assets (PBT/Total Assets}	(%)	13.78	15.87	12.05
Return on Investment (ROI) (PBT/Networth)		0.60	0.79	0.46
Debt Equity Ratio (Total Liability/Networth)		3.42	4.14	4.16
Current Ratio (Current Asset/Current Liability)		1.00	0.86	0.84

LOCAL AGENCY FURTHER INFORMATION

BUSINESS RESULTS

The profit and loss account for the year ended review reveals a surplus of Rs.26.810 Millions after providing normal depreciation and usual expenses.

EXPORT CHEMICAL DIVISION

The export turnover for the year amounted to Rs.143.723 Millions (net) against Rs.113.855 Millions in previous year.

There was an increase in input, cost and other incidentals. They are hopeful of better in future and hope they will find them to be satisfactory.

TURNOVER

The turnover of current year is Rs.210.230 millions against previous year’s Rs.1.544 millions. They are hopeful of better in future and hope they will find them to be satisfactory.

CONTINGENT LIABILITIES (AS ON 31.03.2011)

Letter of Credit and Bank Guarantee Issued by Banks Rs.27.060 Millions.

FORM 8

Corporate identity number of the company	U24111MP1981PTC001866
Name of the company	MALWA OXYGEN AND INDUSTRIAL GASES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Sector C, Industrial Area, Ratlam – 457001, Madhya Pradesh, India basantkjain@hotmail.com
This form is for	Modification of charge
Charge identification number of the modified	10049768
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge Others : Guarantee by Directors and Others
Particular of charge holder	State Bank of India, Commercial Branch (code No.9452), Mitra Niwas Road, Ratlam - 457001, Madhya Pradesh, India Email: sbi.09452@sbi.co.in
Nature of instrument creating charge	Total WC limit of Rs.19.800 Millions (enhanced from Rs. 13.800 Millions and sanction of fresh Term Loan of Rs. 7.500 Millions. Total Indebtness or Rs.44.500 Millions
Date of instrument Creating the charge	09.07.2011
Amount secured by the charge	Rs.44.500 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest FBWC- 6.50% above BR, present effectively = 16%p.a. EPC- 1.5 % above BR, present effectively = 11%p.a. TL (Old)- 5.25% under FCNR (B) TL (New) - 7.25 % above BR, present effectively = 16.75 % p.a. SLC- 1% above CC limit Terms of repayment Term Loan: quarterly installments first installment be repaid in Dec 2011 and last installment be repaid in Sep 2016. WC : on demand Margin Raw Material 25% Stock in process 25% Finished Goods 25% Receivables (60 days) 40% Letter of Credit 25% Term Loan 40% Extent and operation of the charge For Working Capital First charge on entire current assets of the company Extension of charge on entire fixed assets (Present and to be Acquired) Term loan: First charge on entire fixed assets Floating charge on current assets of the company Other The loan as guaranteed by directors and others
Short particulars of the property charged (Including location of the property)	Factory Land and Building, Machinery, Current Assets (Present and Future) Located at Sector -C Industrial Area, Ratlam. House Property Located at 22, Mitra Niwas Road ,Ratlam
Whether any of the property or interest therein under reference is not registered in the name of the company.	Yes
If yes, in whose name it is registers	Mr. Pramod Kumar Vyas
Date of instrument modifying the charge	12.02.2009
Particulars of the present modification	Total WC Limit of Rs.19.800 Millions (enhanced from Rs. 13.800 Millions and sanction of fresh Term Loan of Rs. 7.500 Millions Total Indebtness or Rs.44.500 Millions

FIXED ASSETS:

· Building

· Plant and Machinery

· Electric Installation

· Furniture and Fittings

· Computer

· Tools

· Weighing Machine

· Fax Machine

· Fire Extinguters

· Diesel Generator

· Flaker Machine

· Air Conditioner

· Ice Plant

· Laboratory Equipment

· Vehicle (4 Wheeler)

· Vehicle (2 Wheeler)

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.50.22
UK Pound	1	Rs.78.64
Euro	1	Rs.65.54

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	NO
--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.