MIRA INFORM REPORT

Report Date :

24.11.2012

IDENTIFICATION DETAILS

Name :	LONA INDUSTRIES LIMITED
Registered Office :	532, Alta Bhavan, Senapati Bapat Marg, Dadar (West), Mumbai – 400 028, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.11.1962
Com. Reg. No.:	11–012526
Capital Investment / Paid-up Capital :	Rs. 76.189 Millions
CIN No.: [Company Identification No.]	U24110MH1962PLC012526
TAN No.: [Tax Deduction & Collection Account No.]	MUML04687E / MUML05181B
PAN No.: [Permanent Account No.]	AAACL1166F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers of Phthalocyanine Dyes and Pigments.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 1300000
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	CARE
Rating	Short term Non-fund based : A3+
Rating Explanation	Moderate degree of safety. It carry higher credit risk.
Date	March 2, 2012

Rating Agency Name	CARE
Rating	Long term fund based bank facilities : BBB+
Rating Explanation	Moderate degree of safety. It carry moderate credit risk.
Date	March 2, 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 PARTED BY

Name :	Mr. Vijay
Designation :	Senior Manager
Contact No.:	91-9833198361
Date :	23.11.2012

LOCATIONS

Registered Office :	532, Alta Bhavan, Senapati Bapat Road, Dadar (West), Mumbai – 400 028, Maharashtra, India
Tel. No.:	91-22-24363585/ 24307441/ 24473738/ 24363595/ 24473740
Fax No.:	91-22-24363595/ 24473745
E-Mail :	altalab@vsnl.com lonaind@vsnl.com sales@lona.com
Website :	http://www.lona.com
Corporate Office :	Gharkul, 82 Vir Savarkar Marg, Shivaji Park, Dadar, Mumbai – 400 028, Maharashtra, India
Factory :	Ladivali, New Rasayani, Taluka: Panvel, District Raigad - 410 207, Maharashtra, India
Tel. No.:	91-22- 24473738/ 24473739/ 24473740
Fax No.:	91-22- 24473745

DIRECTORS

AS ON 26.09.2011

Name :	Mr. Sanjay Ramhari Dhote
Designation :	Managing director
Address :	51, Khatau Apartments, 243, Walkeshwar Road, Mumbai - 400006, Maharashtra, India
Date of Birth/Age :	09.07.1960
Qualification :	B Sc. MBA (USA)
Date of Appointment :	01.04.1994
PAN No.:	AAAPD4581H
DIN No.:	00548542
Name :	Mr. Jayant Ramhari Dhote
Designation :	Director
Address :	11, A/B, Hilltop Apartments, 49, Pali Hill, Bandra, Mumbai - 400050, Maharashtra, India
Date of Birth/Age :	13.08.1954
Qualification :	BSIE (USA)
Date of Appointment :	09.08.1978
PAN No.:	AAAPD4580G
DIN No.:	00548607
Name :	Mr. Govind Guno Desai
Designation :	Director
Address :	Kedar Apartment, Bhandar Lane, L.J. Road, Mahim, Mumbai - 400015, Maharashtra, India
Date of Birth/Age :	14.06.1933
Date of Appointment :	30.09.2005
DIN No.:	00140853
Name :	Mr. Premanand Anandrao Narvekar
Designation :	Director
Address :	396/8, North Avenue, Santacruz (West), Mumbai - 400054, Maharashtra, India
Date of Birth/Age :	17.06.1975
Date of Appointment :	21.08.1991
DIN No.:	00387203
Name :	Mrs. Saroj Yeshwant Kale
Designation :	Director
Address :	B/1, Asavari, 214, Veer Savarkar Marg, Mahim (West), Mumbai - 400016, Maharashtra, India
Date of Birth/Age :	15.09.1944
Qualification :	MBBS
Date of Appointment :	15.07.1974
PAN No.:	AACPK4375Q
DIN No.:	00548744
Name :	Mr. Vijay Sakharam Churi
Designation :	Director
Address :	Alta Laboratories, Building No. 4, Girivihar, Khopoli District Raigad, Khopoli - 410203, Maharashtra, India
Date of Birth/Age :	28.06.1941
Date of Appointment :	28.03.2005
DIN No.:	00576155
Name :	Ken Saburo Okura
Designation :	Director
Address :	2-23-11, Denenchofu, Otaku, Tokyo, 1038383, Japan
Date of Birth/Age :	04.06.1936
Date of Appointment :	17.06.1996
DIN No.:	02666435

KEY EXECUTIVES

Name :	Mr. Vijay
Designation :	Senior Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2011

Names of Shareholders	No. of Shares
Tarabai R Dhole	300440
R K Shote Big HUF	127167
Jayant R Dhole	363230
Geeta J Dhote	283733
Aditya J Dhote	233333
Rohan R Dhote	233333
Sanchit J Dhote	233333
Radhika J Dhote	233333
Allona Investment Private Limited, India	1491001
Jayan R Dhote (HUF)	217933
Sanjay R Dhote	468230
Vaishali S Dhote	280000
Rohit R Dhote	711667
Saroj Y Kale	41160
J and S Investments Private Limited, India	1480174
Sanjay R Dhote - HUF	299600
Kumudini Dhamankar	2333
Dainichiseika Colour and Chemicals Manufacturing Company Limited, Japan	618925
Total	7618925

AS ON 26.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	8.12
Bodies corporate	39.00
Directors or relatives of directors	44.42
Others	8.46
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Phthalocyanine Dyes and Pigments.

Products :

ITC CODE	PRODUCT DESCRIPTION
32049000	Synthetic Organic Dyes
312209002	Pigments

Exports :

Products :

Phthalocyanine Dyes and Pigments

Countries :

Ø Japan

Ø Italy

Ø China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Synthetic Organic Dyes	MT	1400	969
Pigments	MT	7702	5960

GENERAL INFORMATION

Suppliers :

Ø Gadiv Petrochem Chemicals Limited

Customers :

Wholesalers and Retailers

Ø Dye Colour, Italy

No. of Employees :

250 (Approximately)

Bankers :

The Cosmos Co-operative Bank Limited, Dadar Branch, 36A, Maru Niketan, D L Vaidya Road, Dadar (West), Mumbai-400028, Maharashtra, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Rupee term loans banks secured	56.074	41.093
Working capital loans banks secured	238.167	201.423
Loans taken for vehicles secured	4.192	6.427
Total	298.433	248.943
Note: 1. Working Capital limits are secured by hypothecation of Inventory and Book Debts. 2. Term Loans, Working Capital Term Loans from the Banks are secured by Equitable Mortgage of Land, Factory Buildings, and Hypothecation of Plant and Machinery and R & D Equipments 3.The Bank Loans are also Guaranteed by Directors Mr S R Dhote and Mr J R Dhote in their Personal Capacities.
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Public deposits unsecured	48.984	33.795
Deposits related parties unsecured	2.434	2.448
Total	51.418	36.243

Banking Relations :	--
Auditors :
Name :	B. K. Khare and Company Chartered Accountants
Address :	706-708, Sharda Chambers, New Marine Line, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-22000607 / 7318 /6360 / 66315835 / 36
Fax No.:	91-22-22003476
E-Mail :	info@bkkhareco.com
Income-tax PAN of auditor or auditor's firm :	AAAFB0265E
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Ø Alta Laboratories Limited [U85190MH1954PLC009215] Ø Alta Leasing and Finance Limited [U65910MH1991PLC063461]
Others :	Ø Sanjay Sales Corporation

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12,000,000	Equity Shares	Rs. 10/- each	Rs. 120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7,618,925	Equity Shares	Rs.10/- each	Rs. 76.189 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		76.189	76.189	76.189
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		258.477	174.584	106.008
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		334.666	250.773	182.197
LOAN FUNDS
1] Secured Loans		298.433	248.943	228.874
2] Unsecured Loans		51.418	36.243	30.287
TOTAL BORROWING		349.851	285.186	259.161
DEFERRED TAX LIABILITIES		19.435	18.338	14.196
TOTAL		703.952	554.297	455.554
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		218.328	222.252	137.531
Capital work-in-progress		19.304	5.975	75.253
INVESTMENT		0.418	0.418	0.418
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	223.648	183.220	181.928
	Sundry Debtors	480.225	374.792	193.098
	Cash & Bank Balances	21.013	27.743	18.889
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	231.525	180.856	92.555
Total Current Assets		956.411	766.611	486.470
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	311.064	299.141	158.016
	Other Current Liabilities	25.346	17.819	11.562
	Provisions	154.099	123.999	74.540
Total Current Liabilities		490.509	440.959	244.118
Net Current Assets		465.902	325.652	242.352
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		703.952	554.297	455.554

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1931.449	1492.662	1376.985
		Other Income	48.504	27.426	31.781
		TOTAL	1979.953	1520.088	1408.766
Less	EXPENSES
		Consumption materials changes inventories	1321.300	995.522
		Manufacturing service costs	227.226	171.262
		Employee related expenses	86.983	74.967
		Administrative selling other expenses	134.948	97.265
		TOTAL	1770.457	1339.016	1282.973
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		209.496	181.072	125.793
Less	FINANCIAL EXPENSES		31.847	28.370	34.392
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		177.649	152.702	91.401
Less/ Add	DEPRECIATION/ AMORTISATION		24.455	25.312	18.704
	NET PROFIT BEFORE TAX, PRIOR PERIOD AND EXTRAORDINARY ITEMS		153.194	127.390	72.697
	PRIOR PERIOD ITEMS BEFORE TAX		1.793	1.299	0.000
	PROFIT BEFORE TAX		154.987	128.689	72.697
Less	TAX		57.723	46.742	28.156
	PROFIT AFTER TAX		97.264	81.947	44.541
Less	APPROPRIATIONS
		Transfer to General Reserve	50.000	50.000	20.000
		Dividend	11.428	11.428	9.143
		Tax on Dividend	1.942	1.943	1.554
	BALANCE CARRIED TO THE B/S		33.894	18.575	13.844
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods on FOB Value	1493.175	1024.961	1068.729
	IMPORTS
		Raw Materials	493.988	291.367	237.403
	Earnings Per Share (Rs.)		12.77	10.76	5.85

Particulars	31.03.2012
Sales Turnover (Approximately)	2500.000

Expected Sales ( 2012-2013 ) : Rs. 2700.000 Millions

The above information has been parted by Mr. Vijay (Senior Manager)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.91	5.39	3.16
Net Profit Margin (PBT/Sales)	(%)	8.02	8.62	5.28
Return on Total Assets (PBT/Total Assets}	(%)	13.19	13.01	11.65
Return on Investment (ROI) (PBT/Networth)		0.46	0.51	0.40
Debt Equity Ratio (Total Liability/Networth)		2.51	2.90	2.76
Current Ratio (Current Asset/Current Liability)		1.95	1.74	1.99

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Creditors due small micro enterprises	0.000	0.000	0.000
Creditors due others	311.064	299.141	158.016
Sundry creditors	311.064	299.141	158.016

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	No
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	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	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	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

TRADE REFERENCES:

Ø Dye Colour, Italy

Ø Gadiv Petrochem Chemicals Limited

CONTINGENT LIABILITES:

Guarantees given by Bank Rs. 21.885 Millions (Previous Year Rs. 2.500 Millions) Tax Matter s disputed in Appeal Rs. 9.499 Millions (Previous Year (Rs. 18.591 Millions)

FIXED ASSETS:

Ø Land

Ø Factory Buildings

Ø Plant and Machinery

Ø Computer and Office Equipments, Electrical Appliances

Ø Vehicles

Ø Furniture and Fixtures

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. 55.34
UK Pound	1	Rs. 88.30
Euro	1	Rs. 71.37

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.