MIRA INFORM REPORT

Report Date :

16.10.2012

IDENTIFICATION DETAILS

Name :	ENGINEERING AND CHEMICAL (INDIA) PRIVATE LIMITED
Registered Office :	206, Peninsula Centre, S. S. Rao Road, Parel, Mumbai – 400012, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.03.2003
Com. Reg. No.:	11-139423
Capital Investment / Paid-up Capital :	Rs. 2.000 Millions
CIN No.: [Company Identification No.]	U51909MH2003PTC139423
TAN No.: [Tax Deduction & Collection Account No.]	MUME04549G
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Chemical
No. of Employees :	30 (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 340000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. It has recorded some growth in its sales turnover during 2012. Trade relations are reported as decent. 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

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 (General Details)

Name :	Mr. Mangesh
Designation :	Marketing Manager
Contact No.:	91-22-66608999
Date :	15.10.2012

LOCATIONS

Registered Office :	206, Peninsula Centre, S. S. Rao Road, Parel, Mumbai – 400012, Maharashtra, India
Tel. No.:	91-22-66608999
Fax No.:	91-22-66603999
E-Mail :	mangesh.n@engichem.co.in info@engichem.co.in
Area :	2300 Sq. ft.
Location :	Owned
Factory :	Delhi, India

DIRECTORS

AS ON 21.09.2012

Name :	Mr. Anantrai Keshavji Kamdar
Designation :	Director
Address :	110/2, Shakuntal, Sion (West), Mumbai – 400022, Maharashtra, India
Date of Birth/Age :	10.11.1943
Date of Appointment :	01.04.2007
DIN No.:	00239909
Name :	Mr. Kalpesh Anant Dhami
Designation :	Director
Address :	10 Sadhana, 346 Telang Cross Road No. 1, Matunga, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	20.10.1970
Date of Appointment :	03.03.2003
DIN No.:	00240494
Name :	Mr. Anant Jayantilal Dhami
Designation :	Director
Address :	10, Sadhana, 346, Telang Cross Road No.1, Matunga, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	17.07.1942
Date of Appointment :	03.03.2003
DIN No.:	00240553

KEY EXECUTIVES

Name :	Mr. Mangesh
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 21.09.2012

Names of Shareholders	No. of Shares
Anant Jayantilal Dhami	37780
Kalpesh Anant Dhami	143600
Bhardra Anant Dhami	10000
Anant Jayantilal Dhami (HUF)	1000
Leena Kalpesh Dhami	5000
Priyal Kalpesh Dhami	100
Rasiklal G. Shah (HUF)	10
K. A. Dhami (HUF)	10
Anantrai Keshavji Kamdar	2500
Total	200000

AS ON 21.09.2012

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

BUSINESS DETAILS

Line of Business :	Trader and Importer of Chemical
Imports :
Products :	Raw Material
Countries :	Ø Germany Ø US Ø China Ø Taiwan
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Ø BASF India

Customers :

Retailers

Ø Asian Paints

No. of Employees :

30 (Approximately)

Bankers :

Ø CITI Bank N. A., Trent House, 2^nd Floor, G Block, Plot No. C60, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

Ø HDFC Bank Limited

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
(a) Loans Repayable on Demand from Banks
Citi Bank Buyers Credit A/c (On Security of Company’s assets)	8.717	18.220
Citi Bank Term Loan (On Security of Company’s assets)	15.333	23.333
Citi Bank Buyers W.C.D. Loan (On Security of Company’s assets)	10.000	0.000
Citi Bank N.A. O/D A/c (On Security of Company’s assets)	0.307	0.000
Total	34.357	41.553
Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
(a) Loans from Shareholders and Relatives	24.456	35.224
(b) Inter Corporate Deposit	3.921	2.250
Total	28.377	37.474

Banking Relations :	--
Auditors :
Name :	Kirti H. Doshi and Company Chartered Accountants
Address :	Nalani Building, 1^st Floor No.10, Bhavani Shankar Road, Dadar (West), Mumbai – 400028, Maharashtra, India
Tel. No.:	91-22-24362894 / 23434211 / 23434138
Income-tax PAN of auditor or auditor's firm :	AABOD7084Q
Sister Concern :	Engichem Specialities Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
250,000	Equity Shares	Rs. 10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200,000	Equity Share	Rs.10/- each	Rs. 2.000 Millions

(a) Reconciliation of Equity Shares

Particulars	31.03.2012
Shares outstanding at the Beginning of the year	200,000.00
Add: Share issued during the year	--
Shares outstanding at the end of the year	200,000.00

(b) Terms / Rights attached to Shares

The company has issued only one class of equity shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

(c) List of Shareholder Holding 5% or more Shares

Name of Shareholders	No. of Shares Held	% of Holding
Kalpesh Anant Dhami	143600	71.80
Anant Jayantilal Dhami	37780	18.89
Bhadra Anant Dhami	10000	5.00

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2.000	2.000	2.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		83.495	72.049	46.478
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		85.495	74.049	48.478
LOAN FUNDS
1] Secured Loans		34.357	41.553	7.746
2] Unsecured Loans		28.377	37.474	30.284
TOTAL BORROWING		62.734	79.027	38.030
DEFERRED TAX LIABILITIES		6.162	6.300	0.336
TOTAL		154.391	159.376	86.844
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		58.261	56.895	11.349
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	57.634	50.591	35.436
	Sundry Debtors	57.185	51.753	63.620
	Cash & Bank Balances	0.664	2.702	0.371
	Other Current Assets	4.258	5.153	0.640
	Loans & Advances	10.593	20.845	13.450
Total Current Assets		130.334	131.044	113.517
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	27.166	12.810	22.364
	Other Current Liabilities	2.587	1.386	0.622
	Provisions	4.451	14.367	15.036
Total Current Liabilities		34.204	28.563	38.022
Net Current Assets		96.130	102.481	75.495
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		154.391	159.376	86.844

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	365.276	325.606	300.111
		Other Income	4.090	21.704	7.086
		Increase / (Decrease) In stock	N.A.	15.156	8.846
		TOTAL	N.A.	362.466	316.043
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	N.A.	322.632	299.119
	PROFIT BEFORE TAX		15.758	39.834	16.924
Less	TAX		N.A.	14.264	6.230
	PROFIT AFTER TAX		N.A.	25.570	10.694
	Earnings Per Share (Rs.)		N.A.	127.850	53.47

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	N.A.	7.05	3.38
Net Profit Margin (PBT/Sales)	(%)	4.31	12.23	5.64
Return on Total Assets (PBT/Total Assets}	(%)	8.36	21.20	13.55
Return on Investment (ROI) (PBT/Networth)		0.18	0.54	0.35
Debt Equity Ratio (Total Liability/Networth)		1.13	1.45	1.57
Current Ratio (Current Asset/Current Liability)		3.81	4.59	2.99

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Sundry Creditors
Due to Micro, Small and Medium Enterprises	0.000	0.000	0.000
Due to Others	26.027	11.988	21.602
Sundry Creditors for Expenses	1.139	0.822	0.762
Total	27.166	12.810	22.364
This information has been compiled to the extent information is available with the company

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	No
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	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 address of the company has been shifted from 10, Peninsula Centre, S. S. Rao Road, Parel, Mumbai – 400012, Maharashtra, India to the present w.e.f.18.03.2011

OPERATIONS AND OUTLOOK

During the year the company made a sales of Rs. 365.276 Millions (Previous Year – Rs. 325.606 Millions). After offsetting the expenses the company made during the year an Profit of Rs. 15.758 Millions (Before Tax) (Previous Year – Rs. 39.833 Millions). The directors are optimistic about the future of the company.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U51909MH2003PTC139423
Name of the company	ENGINEERING AND CHEMICAL (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	10, Peninsula Centre, S. S. Rao Road, Parel, Mumbai – 400012, Maharashtra, India E-Mail : info@engichem.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80009727
Type of charge	Immovable property
Particular of charge holder	CITI Bank N. A., Trent House, 2nd Floor, G Block, Plot No.C60, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India Email: viaxman@vsnl.com
Nature of instrument creating charge	Modification to Memorandum of Entry
Date of instrument Creating the charge	03.05.2011
Amount secured by the charge	Rs. 64.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest to be charged at such rates as may be determined by the Bank from time to time. Terms of repayment On Demand Margin As may be stipulated by the Bank from time to time. Extent and operation of the charge The Company accorded and gave oral consent to Bank to continue to hold and retain the title deeds (by way of Constructive delivery) in respect of its immovable properties as security for repayment of credit facilities of Rs. 64.000 Millions with interest, liquidated damages, costs, charges and expenses and all other money whatsoever due and payable thereon.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Equitable Mortgage on property including land and building located at Unit No.206 and 206A, Peninsula Center, Parel, Mumbai, Maharashtra, India
Date of instrument modifying the charge	14.12.2010
Particulars of the present modification	The Mortgage/charge shall now stand increased upto Rs. 64.000 Millions against the security of Unit No.206 and 206A, Peninsula Center, Parel, Mumbai, Maharashtra, India in favour of the Bank.

TRADE REFERENCES:

Ø Asian Paints

Ø BASF India

FIXED ASSETS:

Ø Air conditioner

Ø Godown Premises

Ø Computer

Ø Furniture and Fixtures

Ø Motor Cars

Ø Mobile Instruments

Ø Office Premises

Ø Office Equipments

Ø Telephone System

Intangible assets:

Ø Computer Software

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. 53.12
UK Pound	1	Rs. 85.15
Euro	1	Rs. 68.60

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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

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.