MIRA INFORM REPORT

Report Date :

05.09.2012

IDENTIFICATION DETAILS

Name :	CHEM-PROCESS SYSTEMS PRIVATE LIMITED
Registered Office :	15, Natraj Industrial Estate, Vasna-Iyava, Sanand, Ahmedabad – 382170, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.05.2000
Com. Reg. No.:	04-037990
Capital Investment / Paid-up Capital :	Rs.11.427 Millions
CIN No.: [Company Identification No.]	U29230GJ2000PTC037990
TAN No.: [Tax Deduction & Collection Account No.]	AHMC00660C
PAN No.: [Permanent Account No.]	AABCC5915A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pressure Vessel, Heat Exchanger, Surface Condensers, Steam Jet Ejectors and Vacuum Systems, Multiple Effect Evaporation Plant, Crystallizers, Salt Recovery Plants, etc.
No. of Employees :	230 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 420000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The management of the company has not filed its latest financial with the government department. However from the previous year the company seems to be doing well. Trade relations are reported as fair. Business is active. Payments are unknown. The company can be considered for business dealings with some cautions.

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. Nirav
Designation :	Account Assistance
Contact No.:	91-9824364772
Date :	04.09.2012

LOCATIONS

Registered Office/ Factory :	15, Natraj Industrial Estate, Vasna-Iyava, Sanand, Ahmedabad – 382170, Gujarat, India
Tel. No.:	91-952717-284194/ 284148-49
Mobile No.:	91-9824364772 (Mr. Nirav)
Fax No.:	91-952717-284194
E-Mail :	chem.@chemprosys.com jkshah@chemprosys.com
Website :	http://www.chemprosys.com
Area :	10000 sq. ft.
Location :	Owned

DIRECTORS

(AS ON 30.09.2010)

Name :

Mr. Jayesh Indravadan Parikh

Designation :

Director

Address :

43, Niharika Bunglows, Azad Society, Ambawadi, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

08.01.1962

Date of Appointment :

12.05.2000

DIN No.:

00360752

Other Directorships :

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	Company/ LLP Status	Defaulting status
1	U29230GJ2000PTC037990	CHEM-PROCESS SYSTEMS PRIVATE LIMITED	Director	12/05/2000	12/05/2000	Active	NO
2	U62100GJ2012PTC070630	DYNAMIC SKY-CABS & SPORTS AVIATION SERVICES PRIVATE LIMITED	Director	06/06/2012	06/06/2012	Active	NO

Name :

Mr. Pradipkumar Devidas Ravtani

Designation :

Director

Address :

A/7, Crystal Apartment, Opposite ESI Hospital, Gotri Road, Baroda – 390021, Gujarat, India

Date of Birth/Age :

21.05.1962

Date of Appointment :

12.05.2000

DIN No.:

00011709

Name :

Mr. Jitendrabhai Indravadan Parikh

Designation :

Director

Address :

43, Niharika Bunglows, Azad society, Ambawadi, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

25.04.1967

Date of Appointment :

12.05.2000

DIN No.:

00011729

KEY EXECUTIVES

Name :	Mr. Nirav
Designation :	Account Assistance

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Jayesh Indravadan Parikh	457070
Pradipkumar D Ravtani	457072
Jitendrabhai I Parikh	76
Vijaybhai Parikh	228514
Total	1142732

(AS ON 30.09.2010)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	80.00
Other top fifty shareholders	20.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Pressure Vessel, Heat Exchanger, Surface Condensers, Steam Jet Ejectors and Vacuum Systems, Multiple Effect Evaporation Plant, Crystallizers, Salt Recovery Plants, etc.
Products :	· Vacuum · Evaporation · Crystallization and Salt Recovery · Drying · Turnkey Solutions · Heat Exchangers · Pressure Vessels · Thermal Design · Drawing Design
Exports :
Products :	· Pressure Vessel · Heat Exchanger · Vacuum Systems
Countries :	· England · Dubai
Imports :
Products :	Raw Materials
Countries :	China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· Dharampal Associate

Customers :

End Users

· Triveny Turbine Limited

No. of Employees :

230 (Approximately)

Bankers :

· Yes Bank Limited

9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

· Vijaya Bank,

Industrial Finance Branch, Kemdhanu Complex, Ambawadi, Ahmedabad 380015, Gujarat, India

· ICICI Bank

Ahmedabad, Gujarat, India

· HDFC Bank Limited

· Kotak Mahindra Bank Limited

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Banks
HDFC Bank Limited	0.116	0.228
ICIC Bank	0.014	0.252
Kotak Mahindra Bank Limited	1.227	0.000
Yes Bank - Cash Credit Limit	5.253	0.000
Yes Bank – Term Loan	3.080	5.179
From Institution
TML Financier Services Limited	0.000	0.255
Tata Capital Limited	0.410	0.646
Total	10.100	6.560
NOTE: - Term loans from ICICI Bank, Kotak MAhindra Bank, and Tata Capital Limited are secured against hypothecation of vehicles. - Term loan and cash credit facility from yea bank is secured by way of charge on current assets, equitable mortgage of factory land and building situated at plot 5-8-9-10-13-14 and 15 at Natraj Industrial Estate, Vasna Iyava, Sanand, hypothecation of plant and machinery at the factory and personal guarantee of directors. - Term loan from TML Financial Services is secured against hypothecation of staff bus.
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Director	1.000	0.000
Total	1.000	0.000

Banking Relations :	--
Auditors :
Name :	Pandya and Mehta Chartered Accountant
Address :	101-102, Shagun Complex, B 93, Swastik Society, C G Road, Navrangpura, Ahmedabad – 380009, Gujarat, India
Telefax No.:	91-79-26442858/ 26464410
PAN No.:	AAFFP9147A

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.10/- each	Rs.12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1142732	Equity Shares	Rs.10/- each	Rs.11.427 Millions

OF THE ABOVE SHARES:

· 71400 Equity Shares of Rs.10 each has been allotted at a premium of Rs. 130

· 939762 equity shares of Rs. 10each are allotted as bonus shares by capitalization of general reserve.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		11.427	11.427	11.427
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		93.825	74.740	55.617
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		105.252	86.167	67.044
LOAN FUNDS
1] Secured Loans		10.100	6.560	9.983
2] Unsecured Loans		1.000	0.000	0.000
TOTAL BORROWING		11.100	6.560	9.983
DEFERRED TAX LIABILITIES		6.926	6.132	4.195
TOTAL		123.278	98.859	81.222
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		81.166	71.093	70.689
Capital work-in-progress		4.390	2.517	1.171
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	36.549	15.002	21.884
	Sundry Debtors	91.930	98.785	95.598
	Cash & Bank Balances	28.934	32.602	19.123
	Other Current Assets	0.581	0.158	37.814
	Loans & Advances	57.111	54.717	2.239
Total Current Assets		215.105	201.264	176.658
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	100.430	96.917	89.137
	Other Current Liabilities	35.487	31.698	32.657
	Provisions	41.466	47.461	45.604
Total Current Liabilities		177.383	176.076	167.398
Net Current Assets		37.722	25.188	9.260
MISCELLANEOUS EXPENSES		0.000	0.061	0.102
TOTAL		123.278	98.859	81.222

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	302.063	361.680	417.601
		Other Income	7.662	9.730	8.866
		TOTAL	309.725	371.410	426.467
Less	EXPENSES
		Cost of Materials	161.829	218.573	243.138
		Manufacturing Expenses	61.903	61.850	64.419
		Employees Remuneration	24.040	20.692	14.918
		Selling and Distribution Expenses	19.690	20.693	39.348
		Office Expenses	0.059	0.041	0.041
		Administrative Expenses	5.222	4.441	6.314
		TOTAL	272.743	326.290	368.178
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		36.982	45.120	58.289
Less	FINANCIAL EXPENSES		2.792	2.620	1.625
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		34.190	42.500	56.664
Less/ Add	DEPRECIATION/ AMORTISATION		4.278	3.651	3.211
Add	Prior Period Adjustment		0.040	0.868	0.000
	PROFIT BEFORE TAX		29.872	37.981	53.453
Less	TAX		7.445	15.516	19.030
	PROFIT AFTER TAX		22.427	22.465	34.423
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		55.625	38.749	17.795
Less	APPROPRIATIONS
		Transfer to General Reserve	2.242	2.246	3.442
		Interim Dividend	2.856	0.000	0.000
		Tax on Interim Dividend	0.485	0.000	0.000
		Dividend	0.000	2.856	8.570
		Tax on Dividend		0.487	1.457
	BALANCE CARRIED TO THE B/S		72.469	55.625	38.749
	EARNING IN FOREIGN CURRENCY		19.269	6.750	NA
	Earnings Per Share (Rs.)		19.63	19.66	30.12

Particulars	31.03.2012
Sales Turnover (Approximately)	1040.000

Expected Sales (2012-13): Rs.1300.000 Millions

The above information has been parted by Mr. Nirav.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.24	6.04	8.07
Net Profit Margin (PBT/Sales)	(%)	9.88	10.50	12.80
Return on Total Assets (PBT/Total Assets}	(%)	10.08	13.94	21.61
Return on Investment (ROI) (PBT/Networth)		0.28	0.44	0.79
Debt Equity Ratio (Total Liability/Networth)		1.85	2.19	2.70
Current Ratio (Current Asset/Current Liability)		1.21	1.14	1.05

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	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

FINANCIALS PERFORMANCE:

The year under consideration witnessed a fall in sales and other income to the tune of Rs. 61.600 millions as compared to previous accounting year. However, the profit after taxation in 2009-10 was slightly reduced as compared to 2008-2009 i.e. by Rs. 0.038 million.

The margins were impacted due to in Employee cost financial charges which were inevitable.

However, the directors are confident that the working of the company would continue to improve in the years to come.

TRADE REFERENCE:

· Dharampal Associates

· Triveny Turbine Limited

FORM 8

Corporate identity number of the company	U29230GJ2000PTC037990
Name of the company	CHEM-PROCESS SYSTEMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	15 Natraj Industrial Estate, Vasna-Iyava, Sanand, Gujarat, India
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai 400018, Maharashtra, India Email: dlbbcadmum@yesbank.in
Nature of instrument creating charge	Deed of Hypothecation
Date of instrument Creating the charge	21.03.2011
Amount secured by the charge	Rs. 7.500 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest Rate as communicated by bank from time to time. Terms of repayment Unless demanded earlier, at the end of facility tenor. Margin Margin as communicated by bank from time to time. Extent and operation of the charge First and Exclusive charge on Current Assets and Movable property hypothecated of the company both present and future.
Short particulars of the property charged (Including location of the property)	The whole of current assets and movable property of the company both present and future.

FIXED ASSETS

· Land

· Flat

· Factory Building

· Office Premises

· Electric Installation

· Plant and Machinery

· Laboratory Equipments

· Furniture and Fixtures

· Vehicles

· Computers

· Mobile

· Office Equipments

· Air Conditioner

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 records 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.55.45
UK Pound	1	Rs.87.98
Euro	1	Rs.69.70

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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		30

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.