MIRA INFORM REPORT

Report Date :

04.10.2012

IDENTIFICATION DETAILS

Name :	VANSHI CHEMICALS PRIVATE LIMITED (w.e.f. 10.08.2006)
Formerly Known As :	VINAY DYECHEM INDUSTRIES PRIVATE LIMITED
Registered Office :	B/48, Baria apartment, Marwadi Chawl, S. V. Road, Malad (West), Mumbai – 400 064, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.07.1984
Com. Reg. No.:	11-033089
Capital Investment / Paid-up Capital :	Rs.1.382 millions
CIN No.: [Company Identification No.]	U24241MH1984PTC033089
TAN No.: [Tax Deduction & Collection Account No.]	MUMV10102B
PAN No.: [Permanent Account No.]	AABCV2713K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Synthetic organic Dyes.
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 4000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company with moderate track. There appears some accumulated losses being 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 with some caution.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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

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. Harshad Shah
Designation :	Director
Contact No.:	91-9223230555
Date :	02.10.2012

LOCATIONS

Registered Office :	B/48, Baria apartment, Marwadi Chawl, S. V. Road, Malad (West), Mumbai – 400 064, Maharashtra, India
Tel No.:	91-2525-278381
Mobile No. :	91-9223230555 (Mr. Harshad Shah)
Fax No.:	91-2525-278381
E-Mail :	vanshichemicals@yahoo.co.in hpshah@yahoo.co.in
Website :	www.vanshichemicals.com
Factory :	F 4/10, M. I. D. C. Tarapur, Boisar, Thane - 401 506, Maharashtra, India
Tel. No.:	91-2525-278381
Fax No.:	91-2525-278381
Area :	1000 Sq. meter
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :	Mr. Harshad Pravinchandra Shah
Designation :	Director
Address :	B/48, Baria apartment, Marwadi Chawl, Malad (West), S V Road, Mumbai – 400 064, Maharashtra
Date of Birth/Age :	20.10.1973
Qualification :	B.E.
Date of Appointment :	25.03.2006
PAN No.:	AJNPS9161L
DIN No. :	01627590
Name :	Mrs. Sapna Harshad Shah
Designation :	Director
Address :	B/48, Baria apartment, Marwadi Chawl, Malad (West), S V Road, Mumbai – 400 064, Maharashtra
Date of Birth/Age :	02.09.1974
Qualification :	B. Com.
Date of Appointment :	05.05.2006
DIN No. :	01627597

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders		No. of Shares
Sapna Harshad Shah		6510
Harshad P Shah		4770
Harshad P Shah (HUF)		2545
	Total	13825

AS ON 30.09.2011

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Synthetic organic Dyes.

Products :

· Hair Colors and Dyes

· Antihalation Dyestuffs

· Electroplating Chemicals

· Biological Stain

· Antihalation Dyestuff

· Lab Chemicals

Product Description	Item Code no.:
Methylene Blue	32041351
Jenus Green B	32030090

Exports :

Products :

Synthetic organic Dyes

Countries :

• Canada
• Vietnam
• China
• USA

Imports :

Products :

Raw material

Countries :

China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS As on 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Methalyne Zinc Treo	Tonnes/year	NA	NA	30

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

· Belani Fine Chemicals Private Limited

No. of Employees :

20 (Approximately)

Bankers :

· Bank of Baroda, BFS Branch, Matru Ashish, S.V. Road, Kandivali (west), Mumbai – 400 067, Maharashtra, India

· The City Co-op Bank Limited, Borivali Branch, Mumbai, Maharashtra, India

Facilities :

Cash Credit : Rs.3.500 Millions (From Bank of Baroda)

Secured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Bank Overdraft	3.422	1.636
Term Loan	0.458	0.958
Total	3.880	2.594

Unsecured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
From Directors	1.659	2.659
From Members	0.224	0.148
Total	1.883	2.807

Notes:

· Term Loan above is secured against hypothecation of plant and machinery and other movable assets present and future and against mortgage of land.

· Of the above Rs.0.458 repayable within the period of Twelve Months (Previous year NIL)

· Working Capital loan above is secured against hypothecation of stocks and book debts

· The above secured loans are personally guaranteed by the Directors

Banking Relations :

--

Auditors :

Name :

Paresh Kapasi and associates

Chartered Accountants

Address :

A-30, Kailash Nagar, Shankar Lane, Kandivali (West), Mumbai – 400 067, Maharashtra

Tel. No. :

91-22-32433031 / 28663031

PAN No.:

AITPK8646K

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares	Rs. 100/- each	Rs. 2.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13825	Equity Shares	Rs. 100/- each	Rs. 1.382 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		1.382	1.382	1.382
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.027	0.027	0.027
4] (Accumulated Losses)		(0.411)	(0.489)	(0.636)
NETWORTH		0.998	0.920	0.773
LOAN FUNDS
1] Secured Loans		3.880	2.594	2.380
2] Unsecured Loans		1.883	2.807	1.228
TOTAL BORROWING		5.763	5.401	3.608
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		6.761	6.321	4.381
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.962	2.242	2.434
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	4.725	4.337	1.435
	Sundry Debtors	1.232	2.492	1.298
	Cash & Bank Balances	0.009	0.034	0.008
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.808	0.742	0.273
Total Current Assets		6.774	7.605	3.014
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.901	3.458	1.029
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.074	0.068	0.038
Total Current Liabilities		1.975	3.526	1.067
Net Current Assets		4.799	4.079	1.947
MISCELLANEOUS EXPENSES		0.00	0.000	0.000
TOTAL		6.761	6.321	4.381

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	12.417	16.394	3.938
		Other Income
		TOTAL (A)	12.417	16.394	3.938
Less	EXPENSES
		Office Expenses	11.713	15.745	3.192
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	11.713	15.745	3.192
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.704	0.649	0.746
Less	FINANCIAL EXPENSES (D)		0.346	0.199	0.319
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.358	0.450	0.427
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.281	0.299	0.340
	PROFIT BEFORE TAX (E-F) (G)		0.077	0.151	0.087
Less	TAX (I)		0.000	0.005	0.000
	PROFIT AFTER TAX (G-I) (J)		0.077	0.146	0.087
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(0.489)	(0.635)	(0.722)
	BALANCE CARRIED TO THE B/S		(0.412)	(0.489)	(0.635)
	Earnings Per Share (Rs.)		5.60	10.56	NA

Particulars	31.03.2012
Sales Turnover (Approximately)	25.000

Expected Sales (2012-2013) : Rs.35.000 Millions

The above information has been parted by Mr. Harshad Shah

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.62	0.89	2.21
Return on Total Assets (PBT/Total Assets}	(%)	0.88	1.53	1.60
Return on Investment (ROI) (PBT/Networth)		0.08	0.16	0.11
Debt Equity Ratio (Total Liability/Networth)		7.75	9.70	6.05
Current Ratio (Current Asset/Current Liability)		3.43	2.16	2.82

LOCAL AGENCY FURTHER INFORMATION

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

change of address:-

The Registered Office of the company was C-5 Royal Garden Carter Road, No. 2, Borivali (East), Mumbai – 400 066, Maharashtra, India shifted to present registered Address w.e.f 20.05.2006.

form 8:-

Corporate identity number of the company	U24241MH1984PTC033089
Name of the company	VANSHI CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B/48, Baria apartment, Marwadi Chawl, Malad (West), Mumbai – 400 064, Maharashtra
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10024814
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	Bank of Baroda, BFS Branch, Mathru Ashish Building, S V Road, Mumbai – 400 067, Maharashtra, India E-mail: intmum@bankofbaroda.com
Nature of instrument creating charge	Supplemental composite agreement of hypothecation of goods, book debts, movable machinery and vehicles and supplemental memorandum of entry where the company's property is mortgaged.
Date of instrument Creating the charge	07.07.2010
Amount secured by the charge	Rs. 4.334 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: To pay interest on the cash credit limit @ 0.75% below prime lending rate of the bank per annum with monthly rests. Margin Stock – 25% Book Debts – 40% Moveable Machinery – 25% Extent and operation of the charge As per agreement
Short particulars of the property charged (Including location of the property)	Supplemental Composite Agreement of Hypothecation of goods, book - debts, moveable machinery and vehicles. Equitable Mortgage of Immovable properties at F-4/10,Tarapur Industrial Area, admeasuring area of plot 368 Sq.mtrs. and open 362 sq.mtrs. Total area 1000 square metres. Tarapur in the state of Maharashtra.
Date of instrument modifying the charge	18.12.2009
Particulars of the present modification	Enhancement of Cash Credit from Rs. 1.500 million to Rs. 3.500 million and reduction of Term Loan from Rs.1.125 Millions to Rs.0.834 million..

trade references:-

· Belani Fine Chemicals Private Limited

fixed assets:-

· Leasehold Land

· Air Conditioner

· Building

· Plant and Machinery

· Computer and Printer

· Electrical Ins

· Motor Cars

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.52.33
UK Pound	1	Rs.84.30
Euro	1	Rs.67.45

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	yes
--AFFILIATION	YES/NO	no
--LISTED	YES/NO	no
--OTHER MERIT FACTORS	YES/NO	yes
TOTAL		29

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.