MIRA INFORM REPORT

Report Date :

23.11.2012

IDENTIFICATION DETAILS

Name :	DAGA GLOBAL CHEMICALS LIMITED
Registered Office :	112, Dattani Trade Centre, Chandavarkar Road, Borivali (West), Mumbai-400092, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.03.1996
Com. Reg. No.:	11-098494
Capital Investment / Paid-up Capital :	Rs.40.000 Millions
CIN No.: [Company Identification No.]	U24100MH1996PLC098494
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Supplier and Distributor of Chemicals, Pharmaceutical Raw Materials.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 840000
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.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	SME 2
Rating Explanation	The level of credit worthiness of the company is high
Date	October 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

Management Non Co-Operative (91-22-28924460)

LOCATIONS

Registered / Head Office :	112, Dattani Trade Centre, Chandavarkar Road, Borivali (West), Mumbai -400092, Maharashtra, India
Tel. No.:	91-22-28060909/ 28924466
Fax No.:	91-22-28911013/ 28911014
E-Mail :	vijaygangan@dagaglobal.com kokila.gadhiya@dagaglobal.com mumbai@dagaglobal.com
Website :	http://www.dagaglobal.com
Area :	985 sq. ft.
Location :	Owned
Corporate Office :	Sector 12, Lilashah Nagar, Gandhidham – 370201, Gujarat, India
Overseas Office :	Located at: Dubai Shanghai
Marketing Office	Located at: New Delhi Hyderabad Kolkata
Branch Office :	Located at: Kolkata New Delhi Gandhidham Ahmedabad Tamilnadu Hyderabad

DIRECTORS

As on 17.08.2011

Name :	Mr. Satyen M. Daga
Designation :	Chairman and Managing Director
Address :	A-4/401, Yogi Palace, Yogi Nagar, Borivali (West), Mumbai-400091, Maharashtra, India
Date of Birth/Age :	12.12.1961
Qualification :	B. Com
Date of Appointment :	28.03.1996
DIN No.:	00202627
Name :	Ms. Kokila Amrutlal Gadhiya
Designation :	Whole-Time Director
Address :	A-503, Shiv Amrut, Bharwany’s Complex, Kalyan (West), Thane-421301, Maharashtra, India
Date of Birth/Age :	29.12.1963
Qualification :	B. Com.
Date of Appointment :	01.06.2007
DIN No.:	00226266
Name :	Mr. Vijay Gajanan Gangan
Designation :	Additional Director
Address :	A-704, Shri Krishna, Borasa Pada Road, Near Kamala Vihar Sports Club, Kandivali- West, Mumbai-400067, Maharashtra, India
Date of Birth/Age :	10.05.1968
Date of Appointment :	03.05.2006
DIN No.:	00226149
Name :	Mr. Shiv Kumar Singhal
Designation :	Director
Address :	F-14, Ashok Vihar Phase- I, Delhi-11052, India
Date of Birth/Age :	30.05.1952
Date of Appointment :	29.09.2007
DIN No.:	00075934
Name :	Mr. Maheshkumar Hansraj Mishra
Designation :	Independent Director
Address :	A-1/401-402, Yogi Place, Yogi Nagar, Borivali (West), Mumbai-400091, Maharashtra, India
Date of Birth/Age :	07.07.1951
Date of Appointment :	12.05.2010
DIN No.:	03274356
Name :	Mr. Ravikumar Maganlal Chaturvedi
Designation :	Independent Director
Address :	Flat No. 302, Golden Town Co-Operative Housing, Chharwada Road, Vapi, Taluka Pardi, District Valsad, Vapi-396191, Gujarat, India
Date of Birth/Age :	03.10.1949
Date of Appointment :	12.05.2010
DIN No.:	03154892

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 17.08.2011

Names of Shareholders	No. of Shares
Sayten Mahabirprasad Daga	261920
Pradeep Daga	10
Rama Daga	6470
Kokila A. Gadhiya	12000
Sayten Daga and Rama Daga	97640
Mahesh Daga	20000
Vijay Gajanan Gangan	1000
Krishnakumar Saboo	10
Deepal Modani	200
Moloy Kumar Panja	500
N. Krishnan	250
TOTAL	400000

Equity Share Break up (Percentage of Total Equity)

As on 17.08.2011

Category	Percentage
Directors or relatives of Directors	99.56
Other top fifty shareholders	0.44
Total	100.00

BUSINESS DETAILS

Line of Business :

Supplier and Distributor of Chemicals, Pharmaceutical Raw Materials.

Products :

Product Description	Items Code
Solvents	27079900
Toluene	29020000
Mixed Xylene	27073000

· 5-Aceto Acetylamino-2-Benzimidazolone (AABI / 5AAABI)

· Aceto Acet Anilide (AAA)

· Aceto Acet-m-Xylidide (AAMX)

· Aceto Acet-o-Anisidide (AAOA)

· Aceto Acet-o-Chloro Anilide (AAOCA)

· Aceto Acet-o-Toluidide (AAOT)

· Aceto Acet-p-Anisidide (AAPA)

· Benzene

· Carbon Tetra Chloride (CTC)

· Caustic Soda Lye (CSL)

· Chloroform

· Dimethyl Sulfoxide (DMSO)

· Hydrazine Hydrate 80% / 100%

· Iso Propyl Alcohol (IPA) - Drum

· Iso Propyl Ether (IPE) - Drum

GENERAL INFORMATION

No. of Employees :

50 (Approximately)

Bankers :

• Union Bank of India, Bhat Bazar Branch, Anant Deep Chambers, 273/ 277, Narsi Natha Street, Mumbai-400009, Maharashtra, India
• Union Bank of India, Industrial Finance Branch, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee Term Loan	193.887	140.545
Total	193.887	140.545

Banking Relations :
Auditor 1 :
Name :	A P Doshi and Company Chartered Accountants
Address :	201, Bhaveshwar Complex, Opposite Railway Station, Vidyavihar (West), Mumbai - 400 086, Maharashtra, India
Tel. No.:	91-22-25146854/25146855
Fax No.:	91-22-25156800/25155141/25146854
E-Mail :	apdoshi@anknet.net apdoshi.cs@gmail.com
PAN.:	AARFA0281E
Auditor 2 :	S S Rathi and Company Chartered Accountants
Subsidiaries :	Daga Life Science Private Limited, Mumbai Daga Global Chemicals DMCC Daga Global Chemicals FZCO, Dubai
Foreign Subsidiary:	Zhangjiagang FTZ Dagu Chemical Tr. Company Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.100/- each	Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.100/- each	Rs.40.000 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		40.000	40.000	40.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		172.214	130.201	106.706
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		212.214	170.201	146.706
LOAN FUNDS
1] Secured Loans		193.887	140.545	148.892
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		193.887	140.545	148.892
DEFERRED TAX LIABILITIES		0.000	0.000	0.118
TOTAL		406.101	310.746	295.716
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.380	4.216	4.245
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		16.841	16.705	14.010
DEFERREX TAX ASSETS		0.097	0.016	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	94.046	79.998	55.769
	Sundry Debtors	553.194	380.913	224.079
	Cash & Bank Balances	58.792	62.096	90.195
	Other Current Assets	0.000	0.000	2.333
	Loans & Advances	21.379	14.106	10.432
Total Current Assets		727.411	537.113	382.808
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	322.895	221.806	104.760
	Other Current Liabilities	1.148	1.100	0.587
	Provisions	18.585	24.398	0.000
Total Current Liabilities		342.628	247.304	105.347
Net Current Assets		384.783	289.809	277.461
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		406.101	310.746	295.716

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2033.636	1296.773	1325.251
		Other Income	86.843	90.876	50.236
		TOTAL (A)	2120.479	1387.649	1375.487
Less	EXPENSES
		Consumption Material Changes Inventories	1962.059	1261.175	1337.990
		Employee Related Expenses	13.991	11.202
		Administrative Selling and Other Expenses	55.792	45.511
		TOTAL (B)	2031.842	1317.888	1337.990
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		88.637	69.761	37.497
Less	FINANCIAL EXPENSES (D)		10.234	7.167	23.550
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		78.403	62.594	13.947
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.077	0.896	1.243
	PROFIT BEFORE TAX (E-F) (G)		77.326	61.698	12.704
Less	TAX (H)		20.921	21.865	3.570
	PROFIT AFTER TAX (G-H) (I)		56.406	39.833	9.134
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		97.049	77.529	71.045
Less	APPROPRIATIONS
	Transfer to General Reserve		5.641	3.700	0.000
	Dividend		4.468	2.620	2.650
	Proposed Dividend		12.000	12.000	0.000
	Additional Tax on Dividend		1.993	1.993	0.00
	BALANCE CARRIED TO THE B/S		129.353	97.049	77.529
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	71.656	11.825	71.029
		Dividend	1.272	0.000	6.310
		Commission	1.327	7.947	7.673
	TOTAL EARNINGS		74.255	19.772	85.012
	Earnings Per Share (Rs.)		141.02	99.58	22.84

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.66	2.87	0.66
Net Profit Margin (PBT/Sales)	(%)	3.80	4.76	0.96
Return on Total Assets (PBT/Total Assets}	(%)	10.57	11.40	3.28
Return on Investment (ROI) (PBT/Networth)		0.36	0.36	0.09
Debt Equity Ratio (Total Liability/Networth)		2.53	2.28	1.73
Current Ratio (Current Asset/Current Liability)		2.12	2.17	3.63

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Micro, Small and Medium Enterprise and others	314.860	214.750	98.837
Others	8.035	7.056	5.923
Total	322.895	221.806	104.760

Sr. No.	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	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Note:

Subject was established in 1985 as partnership firm with name “DAGA CHMECALS” and in 1996 it converted into Limited Company

OPERATIONS

During the year, there has been substantial increase in sales and profit compared last year. With overall improvement in financial position. Year ahead also looks to be bright because of strong demand from pharma and agro segment in particular which is company’s area.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24100MH1996PLC098494
Name of the company	DAGA GLOBAL CHEMICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	112, Dattani Trade Centre, Chandavarkar Road, Borivali (West), Mumbai-400092, Maharashtra, India Email : kokila.gadhiya@dagaglobal.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80064095
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	Union Bank of India, BIndustrial Finance Branch, Nariman Point, Mumbai – 400021, Maharashtra, India Email : cbsifb@unionbankofindia.com
Nature of instrument creating charge	Composite Hypothecation Agreement
Date of instrument Creating the charge	19.10.2011
Amount secured by the charge	Rs.445.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As per terms of sanction Terms of Repayment: On Demand. Margin: As per sanction terms. Extent and operation of charge: To secure various revised credit facilities aggregating to Rs.445.000 millions granted by the Bank to the Company as under :- 1. Import LC (DP/DA upto 180 days)/Inland LC (DP/DA 90 days) Rs.350.000 millions W/W LOC for availing Buyers Credit (Rs.350.000 millions) 2.SBLC Rs.75.000 millions 3. Letter of Guarantee Rs.20.000 millions Total Aggregating Rs.445.000 millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of by way of First Charge of all the present and future movable properties of the Borrower in favour of the Bank: 1. All tangible movable machineries plant and machinery fixtures fittings other installations cranes furniture computers and other accessories vehicles together with spares tools and accessories and all other articles lying on the premises at Mumbai/Ahmedabad or in the godowns of the Borrowers or in the custody of any person who are Mercantile Agents of the Borrower or in the course of transit which may hereinafter be brought stored or be lying in or upon the said premises of the Borrower 2. The whole of the Movable goods and assets including but not limited to all stocks of raw materials,stock in progress semi finished goods and finished goods packing materials consumable stores and spares etc whatsoever and wheresoever situate and/or in transit whether now belonging to or hat may at any time during the continuance of this security belong to the Borrower or that may be held by any party anywhere to the order and disposition of the Borrower 3. All the book-debts outstanding monies receivable claims bills contracts, engagements and securities which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing to the Borrower in the course of its business by any person, firm company or body corporate or by the Government of India or any State Government or Indian Railways or any Government Department or Office or any Municipal or Local or Public or Semi Government body or authority whatsoever including those relating to the assets leased out and/or given on hire purchase basis
Date of instrument modifying the charge	12.07.2005
Particulars of the present modification	Vide this modification charge amount enhanced from Rs.220.000 millions to Rs.445.000 millions and secured by Hypothecation of by way of First Charge of all the present and future movable properties of the Borrower in favour of the Bank: 1. Plant and Machinery 2. The whole of the Movable goods and assets i.e Stocks etc 3. All the Present and Future Book-Debts

FIXED ASSETS:

· Land

· Building

· Office Equipment

· Furniture and Fixture

· Computers Systems

· Vehicles

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 ist 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 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.55.16
UK Pound	1	Rs.88.03
Euro	1	Rs.70.86

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NTH

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	6
--PROFITABILIRY	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.