MIRA INFORM REPORT

Report Date :

09.10.2012

IDENTIFICATION DETAILS

Name :	G.G. ORGANICS PRIVATE LIMITED
Registered Office :	122/6, Thuthipet Revenue Village, Villianure Commune, Pondichery-605502, India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.08.2006
Com. Reg. No.:	59-001974
Capital Investment / Paid-up Capital :	Rs.20.000 millions
CIN No.: [Company Identification No.]	U24297PY2006PTC001974
TAN No.: [Tax Deduction & Collection Account No.]	CHEG09115B
PAN No.: [Permanent Account No.]	AACCG6299G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Leather Chemical
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 140000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has achieved better sales and profits during 2011. However, Liquidity of the company appears to be low. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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.

LOCATIONS

Registered Office/ Factory:	122/6, Thuthipet Revenue Village, Villianure Commune, Pondichery-605502, India
Tel. No.:	91- 413-2677728
Fax No.:	91- 413-2677729
E-Mail :	ggorganics@gmail.com ggopur@gmail.com
Website:	http://www.ggorganics.co.in
Marketing Office::	No. 16, Second Street Saraswathipuram, Nagalkeni Chromepet, Chennai – 600044, Tamilnadu, India
Tel. No.:	91- 44-2241 5114
Fax No.:	91- 44-2238 1147
E-Mail :	marketing@ggorganics.co.in

DIRECTORS

As on 30.09.2011

Name :

Mr. Ramachandran Kavitha

Designation :

Director

Address :

2, Thirumurugan Street, Adhi Nagar, Tambaram (East), CHENNAi- 600059, Tamilnadu, India

Date of Birth/Age :

31.05.1976

Date of Appointment :

03.08.2006

DIN No.:

00512915

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24297PY2006PTC001974	G.G. ORGANICS PRIVATE LIMITED	Director	03/08/2006	03/08/2006	-	Active	NO
2	U24119PY2004PTC001766	ATC CHEMICALS INDIA PRIVATE LIMITED	Director	25/03/2007	25/03/2007	11/03/2008	Active	NO
3	U24110TN2011PTC083054	G.G.ORGANICS EXPORTS PRIVAT LIMITED	Director	09/11/2011	09/11/2011	-	Active	NO

Name :

Mr. Krishna Pillai Damodaran

Designation :

Director

Address :

2, Thirumurugan Street, Adhi Nagar, Tambaram (East), CHENNAi- 600059, Tamilnadu, India

Date of Birth/Age :

20.06.1940

Date of Appointment :

07.04.2008

DIN No.:

02234660

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24232TN2004PTC053397	GENFARM PHARMACEUTICALS PRIVATE LIMITED	Director	03/06/2004	03/06/2004	-	Strike off	NO
2	U24297PY2006PTC001974	G.G. ORGANICS PRIVATE LIMITED	Director	30/09/2008	07/04/2008	-	Active	NO
3	U24110TN2011PTC083054	G.G.ORGANICS EXPORTS PRIVAT LIMITED	Director	09/11/2011	09/11/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
R. Kavitha	1999900
K.Damodaran	100
Total	2000000

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 :

Manufacturing of Leather Chemical

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· City Union Bank Limited, Tambaram Branch, No.24/38, Rajaji Salai, Tambaram (West), Chennai-600045, Tamilnadu, India

· State Bank of India, Commercial Branch, G.S.T.Road, Guindy, Chennai-600032, Tamilnadu, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
UBI Term Loan -526306110000239 (Secured against EM of Land and Building and Hypothecation of Plant and Machinery)	7.726	10.837
UBI Term Loan – 526306110000243 (Secured against Hypothecation of equipment / assets)	3.048	4.043
UBI CC A/c – 526305010000175 (Secured against Hypothecation of Stock and Book Debts)	30.474	19.862
Car Loan – Innova (Secured against Registration with RTO)	0.052	0.352
Car Loan – Chevrolet (Secured against Registration with RTO)	0.743	0.000
Total	42.043	35.094
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
Loan from Managing Director	0.435	0.347
Loan from Director	0.612	0.212
Loan from Director’s Relatives	7.888	12.452
Dealer Deposit	1.175	0.600
Total	10.110	13.611

Banking Relations :	--
Auditors :
Name :	Ganesan And Company Chartered Accountants
Address :	New No 9, Old No 36, South Beach Avenue, Mrc Nagar Main Road, R.A. Puram, Chennai- 600028, Tamil Nadu
Tel. No.:	91-44-65280547
E-Mail :	gandco.ca@gmail.com gandco@sify.com
PAN No.:	AAAFG4385N

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 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		20.000	18.000	8.000
2] Share Application Money		0.000	0.000	10.000
3] Reserves & Surplus		15.018	6.401	0.000
4] (Accumulated Losses)		0.000	0.000	(1.804)
NETWORTH		35.018	24.401	16.196
LOAN FUNDS
1] Secured Loans		42.043	35.094	37.861
2] Unsecured Loans		10.110	13.611	3.780
TOTAL BORROWING		52.153	48.705	41.641
DEFERRED TAX LIABILITIES		1.615	1.246	0.000
TOTAL		88.786	74.352	57.837
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		42.070	36.899	37.948
Capital work-in-progress		2.732	4.301	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.865	22.739	11.948
	Sundry Debtors	61.849	47.956	20.029
	Cash & Bank Balances	1.461	0.738	0.058
	Other Current Assets	1.302	0.418	3.646
	Loans & Advances	5.012	3.246	0.000
Total Current Assets		100.489	75.097	35.681
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	51.080	38.555	14.914
	Other Current Liabilities	1.204	0.619	0.717
	Provisions	4.221	2.791	0.201
Total Current Liabilities		56.505	41.965	15.832
Net Current Assets		43.984	33.132	19.849
MISCELLANEOUS EXPENSES		0.000	0.020	0.040
TOTAL		88.786	74.352	57.837

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	219.520	149.140	82.065
		Other Income
		TOTAL	219.520	149.140	82.065
Less	EXPENSES
		Office Expenses	200.905	131.829	80.580
		Administrative Expenses
		Advertising Expenses
		TOTAL	200.905	131.829	80.580
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		18.615	17.311	1.485
Less/ Add	DEPRECIATION/ AMORTISATION		5.410	5.070	4.309
	PROFIT BEFORE TAX		13.205	12.241	(2.824)
Less	TAX		4.589	4.036	0.201
	PROFIT AFTER TAX		8.616	8.205	(3.025)
	EARNINGS IN FOREIGN CURRENCY		84.684	49.005	28.188
	Earnings Per Share (Rs.)		4.31	6.31	0.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.92	5.50	(3.69)
Return on Total Assets (PBT/Total Assets}	(%)	9.26	10.93	(3.84)
Return on Investment (ROI) (PBT/Networth)		0.38	0.50	(0.17)
Debt Equity Ratio (Total Liability/Networth)		2.81	3.72	3.55
Current Ratio (Current Asset/Current Liability)		1.78	1.79	2.25

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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
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	No
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	No

Note:

The Registered office of the company has been shifted from 9, Thirugnana Sambandar Street, Viswanathan Nagar, Muthialpet, Pondicherry-605003, India to the present address w.e.f.16.04.2007

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24297PY2006PTC001974
Name of the company	G.G. ORGANICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	122/6, Thuthipet Revenue Village, Villianure Commune, Pondichery-605502, India Email: ggorganics@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10325530
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge · Machineries
Particular of charge holder	City Union Bank Limited, Tambaram Branch, No.24/38, Rajaji Salai, Tambaram (West), Chennai-600045, Tamilnadu, India Email: ramas08@gmail.com
Nature of instrument creating charge	Agreement of Loan - Cum - Hypothecation in F.No.259 dated 15.02.2012
Date of instrument Creating the charge	15/02/2012
Amount secured by the charge	Rs.62.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest OLCC (Rs.28.000 Millions): BR + 3.50% p.a. Presently 14.25% p.a. OSL (Rs.7.500 Millions): BR + 3.75% p.a. Presently 14.50% p.a. PCL / FDBP (Rs.27.000 Millions) : BR + 0.75% p.a. Presently 11.50% p.a. BR = 10.75% Terms of Repayment OLCC (Rs.28.000 Millions) : One Year i.e., upto 31.01.2013 OSL (Rs.7.500 Millions) : Repayable in 36 Monthly installments of Rs.0.258 Millions with a Holiday Period of 6 months PCL / FDBP (Rs.27.000 Millions) : One Year i.e., upto 31.01.2013 Margin OLCC (Rs.28.000 Millions) : 25% on Stocks; 30% on Book Debts OSL (Rs.7.500 Millions) : As per Bank Norms PCL / FDBP (Rs.27.000 Millions) : 25% Cover Period for Book Debts, Receivables : Not more than Six Months Extent and Operation of the charge Charge on the Company's : (i) Goods, produce, merchandise, stocks of Chemicals stored or to be stored from time to time at No.121/A, 122/A, Thuthipet, Villianur Commune, Puthuchery (ii) All Outstanding Receivables and Book Debts not more than six months, other claims of the Company both existing and future, and (iii) Machineries, shall operate as Security till the complete closure of the Overall Credit Limit of Rs.625.00 Lakhs, together with interests, costs, charges & other expenses. Others The revised Overall Credit Limit of Rs.62.500 Millions consists of : OLCC : Rs.28.000 Millions OSL : Rs. 7.500 Millions PCL / FDBP : Rs.27.000 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Company's : (i) Goods, produce, merchandise, stocks of Chemicals stored or to be stored from time to time at No.121/A, 122/A, Thuthipet, Villianur Commune, Puthuchery (ii) All Outstanding Receivables & Book Debts not more than six months, other claims of the Company both existing and future, and (iii) Machineries
Particulars of the present modification	The existing Charge on the Company's : (i) Goods, produce, merchandise, stocks of Chemicals stored or to be stored from time to time at No.121/A, 122/A, Thuthipet, Villianur Commune, Puthuchery, (ii) All Outstanding Receivables and Book Debts not more than six months, other claims of the Company both existing and future, and (iii) Machineries, shall secure the revised Overall Credit Limit of Rs.62.500 Millions, together with interests, costs, charges and other expenses.

FIXED ASSETS:

· Building

· Plant and Machinery

· Electrical Installations

· Office Equipment

· Mobile Phone

· Furniture and Fittings

· Computer

· Air conditioner

· Fork Lift

· Lab Equipment

· Vehicles

· Assets

· Rond Work

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.52.21
UK Pound	1	Rs.84.00
Euro	1	Rs. 67.75

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		34

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.