MIRA INFORM REPORT

Report Date :

24.03.2012

IDENTIFICATION DETAILS

Name :	KOMAL MANUFACTURING CHEMISTS PRIVATE LIMITED
Registered Office :	5, Kamanwala Chambers, Sir P. M. Road, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	25.01.1947
Com. Reg. No.:	11-005518
Capital Investment / Paid-up Capital :	Rs.1.564 Millions
CIN No.: [Company Identification No.]	U05518MH1947PTC005518
TAN No.: [Tax Deduction & Collection Account No.]	MUMK11439B
PAN No.: [Permanent Account No.]	AABCK0410C
Legal Form :	Private Limited Liability Company
Line of Business :	The company is mainly engaged in the business of manufacturing of cosmetic products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (24)

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 :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an old and established company having moderate track. Profitability of the company is under pressure. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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 :	5, Kamanwala Chambers, Sir P. M. Road, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22634408
Fax No.:	91-22-22617123
E-Mail :	dinesh@mgshahani.com num.sharma@galaoglondon.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Dinesh Chandru Advani

Designation :

Managing director

Address :

7-12, Shyam Niwas, Warden Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

03.12.1965

Date of Appointment :

07.04.2009

DIN No.:

00401315

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	U74999MH1947PTC005826	M G SHAHANI AND COMPANY (BOMBAY) PRIVATE LIMITED	Director	3/01/1989	3/01/1989	-	Active	NO
2	U74999MH1922PLC000973	BOMBAY GYMKHANA LIMITED	Director	27/09/2007	27/09/2007	5/09/2011	Active	NO
3	U05518MH1947PTC005518	KOMAL MANUFACTURING CHEMISTS PRIVATE LIMITED	Managing director	7/04/2009	7/04/2009	-	Active	NO

Name :

Ms. Renuka Dinesh Advani

Designation :

Additional director

Address :

7-12, Shyam Niwas, Warden Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

01.12.1964

Date of Appointment :

07.04.2009

DIN No.:

00401394

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	U74999MH1947PTC005826	M G SHAHANI AND COMPANY (BOMBAY) PRIVATE LIMITED	Director	29/12/1995	29/12/1995	-	Active	NO
2	U05518MH1947PTC005518	KOMAL MANUFACTURING CHEMISTS PRIVATE LIMITED	Director	27/09/2009	7/04/2009	-	Active	NO

Name :

Ms. Nishina Chandru Advani

Designation :

Additional director

Address :

8-64, Shyam Niwas Warden Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

06.03.1940

Date of Appointment :

07.04.2009

DIN No.:

00401466

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	U74999MH1947PTC005826	M G SHAHANI AND COMPANY (BOMBAY) PRIVATE LIMITED	Director	28/06/1947	28/06/1947	-	Active	NO
2	U05518MH1947PTC005518	KOMAL MANUFACTURING CHEMISTS PRIVATE LIMITED	Director	27/09/2009	7/04/2009	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Ranjit Motiram Shahani	920
Sanjeev Ranjit Shahani	23
Rajesh Nari Thandani	304
Kaml Kishinchand Bhavnani	531
Dinesh Chandru Advani	13826
Renuka Dinesh Advani	23
Nimisha Chandru Advani	13
Total	15640

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	The company is mainly engaged in the business of manufacturing of cosmetic products.
Products :	Cosmetic Products

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· HDFC Bank

· Citi Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Bank
HDFC Bank (Secured against Office Premises of Sister Concerns	6.003	0.657
Citi Bank	1.933	5.641
Bajaj Finance Limited (Secured against Personal Shares of Directors)	6.500	0.000
Total	14.436	6.298
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Directors Dinesh Advani	4.534	3.213
Renuka Advani	2.985	2.249
R M Shahani and Sons HUF	0.060	0.060
Total	7.579	5.522

Financial Institute :	Bajaj Finance Limited
Banking Relations :	--
Auditors :
Name :	Ashok Jayesh and Associates Chartered Accountants
Address :	501-HDIL Towers, 5^th Floor, Anant Kanekar Marg, Bandra (East), Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-26582226/ 27/ 29
Fax No.:	91-22-26582220
E-Mail :	ashokjayesh.ca@gmail.com
PAN.:	AAAFA3904H

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
30000	Equity Shares	Rs.100/- each	Rs.3.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15640	Equity Shares	Rs.100/- each	Rs.1.564 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		1.564	1.564	1.564
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		(0.695)	2.544	4.498
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		0.869	4.108	6.062
LOAN FUNDS
1] Secured Loans		14.436	6.298	0.000
2] Unsecured Loans		7.579	5.522	1.200
TOTAL BORROWING		22.015	11.820	1.200
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		22.884	15.928	7.262
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.594	1.877	0.982
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.885	7.378	4.114
	Sundry Debtors	3.386	2.800	1.842
	Cash & Bank Balances	0.127	0.579	1.546
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.523	2.686	1.460
Total Current Assets		16.921	13.443	8.962
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.282	4.707
	Other Current Liabilities	1.384	1.438	1.615
	Provisions	2.050	1.775	1.067
Total Current Liabilities		13.716	7.920	2.682
Net Current Assets		3.205	5.523	6.280
MISCELLANEOUS EXPENSES		18.085	8.528	0.000
TOTAL		22.884	15.928	7.262

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	64.335	48.997
		Other Income	0.028	1.100
		TOTAL	64.363	50.097	NA
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(0.685)	(0.925)
Less	FINANCIAL EXPENSES		1.935	0.567
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(2.620)	(1.492)	NA
Less/ Add	DEPRECIATION/ AMORTISATION		0.619	0.461
	PROFIT/ (LOSS) BEFORE TAX		(3.239)	(1.953)
Less	TAX		0.000	0.000	NA
	PROFIT/ (LOSS) AFTER TAX		(3.239)	(1.953)	NA
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.819	2.772	NA
	BALANCE CARRIED TO THE B/S		(2.420)	0.819	NA
	Earnings/ (Loss) Per Share (Rs.)		(207.12)	(124.91)	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.03	3.89	NA
Net Profit Margin (PBT/Sales)	(%)	5.03	3.98	NA
Return on Total Assets (PBT/Total Assets}	(%)	17.49	12.75	NA
Return on Investment (ROI) (PBT/Networth)		3.73	0.48	NA
Debt Equity Ratio (Total Liability/Networth)		41.11	4.80	0.64
Current Ratio (Current Asset/Current Liability)		1.23	1.68	3.34

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

The Company has achieved turnover of Rs. 64.335 Millions during the year as against turnover of Rs.48.997 Millions during the previous year, which represents an increase of about 76%. However, Profitability has been impacted and there is a net loss of Rs. 3.239 Millions during the year as against net loss of Rs. 1.953 Millions during the previous year. This is mainly on account of increase in marketing, selling, administrative and salary expenses. The Directors are confident of a substantially better performance during the financial year 201 1-12

FIXED ASSETS

· Air-Conditioners

· Computer

· Computer Software

· Laptop

· Fire Extinguishers

· Furniture/Fixtures

· Gas Installations

· Motor Car

· Office Equipments

· Plant and Machinery

· Laboratory Equipment

· Electrical 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.50.91
UK Pound	1	Rs.80.77
Euro	1	Rs.67.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	2
--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		24

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.