MIRA INFORM REPORT

Report Date :

07.09.2012

IDENTIFICATION DETAILS

Name :	CHEMTROLS INDUSTRIES LIMITED (w.e.f. 29.02.2008)
Formerly Known As :	CHEMTROLS ENGINEERING LIMITED
Registered Office :	910, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	08.07.1981
Com. Reg. No.:	11-24757
Capital Investment / Paid-up Capital :	Rs. 239.728 Millions
CIN No.: [Company Identification No.]	U29299MH1981PLC024757
IEC No. :	0388002433
TAN No.: [Tax Deduction & Collection Account No.]	MUMC10185A
PAN No.: [Permanent Account No.]	AAACC2870R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Level Instruments, Analyzer and Valves for Chemical Industry.
No. of Employees :	Not Divulged

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 1716808
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported fair. Business is active. Payments are 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	A3+ (Short Term Rating)
Rating Explanation	Moderate Degree of Safety and Higher Credit Risk
Rating	BBB (Long Term Rating)
Rating Explanation	Moderate Degree of Safety and moderate Credit Risk
Date	02.04.2012

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ 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 DECLINED BY

Management non co-operative.

LOCATIONS

Registered Office/ Factory 1 / Branches :	910, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400021, Maharashtra, India
Tel. No.:	91-22-22873573/ 22830636/ 28575089
Fax No.:	91-22-22873573/ 28574386
E-Mail :	chemtrolsfa@mtnl.net.in chemtrols@fchentrolis.co.in
Website :	www.chemtrols.com
Head Office :	Amar Hill, Saki Vihar Road, Powai, Mumbai-400072, Maharashtra, India
Tel. No. :	91-22-28575089/ 28570557
Fax No. :	91-22-28571913
E-Mail :	chemtrols@chemtrols.co.in
Website :	www.chemtrols.com
Factory 2 :	141/142, Kundaim Industrial Estate, Goa-403115, Maharashtra, India
Tel. No. :	91-832-6613100/ 6613101/ 3102/ 2395238/ 2395086
Fax No. :	91-832-6613155/ 2395208
E-Mail :	chemtrolgoa@chemtrols.co.in
Branch Offices :	Located at: · Mumbai · Secunderabad · New Delhi · Bangalore · Chennai · Vadodara · Kolkata · UAE · Goa · Guwahati · Sharjah

DIRECTORS

AS ON 27.09.2011

Name :	Mr. Rakesh Kumar Gupta
Designation :	Director
Address :	104, A Lila Apartments, Yari Road, Versova, Mumbai 400061, Maharashtra, India
Date of Birth/Age :	04.06.1953
Qualification :	B.E. (Elect.)
Date of Appointment :	01.10.2008
DIN No. :	00050139
Name :	Mr. Nandkumar Kalath
Designation :	Director
Address :	202, Mangal Darshan, Turner Road, Bandra [West], Mumbai 400 050, Maharashtra, India
Date of Birth/Age :	02.11.1948
Qualification :	B.Sc., Chem. Engg
Date of Appointment :	08.07.1981
DIN No. :	00041727
Name :	Mr. Sambhaji Amrut Rao Nikam
Designation :	Director
Address :	A-201, Eden – 1, 201, Hiranandani Gardens, Powai, Mumbai 400 076, Maharashtra, India
Date of Birth/Age :	15.03.1940
Qualification :	DME
Date of Appointment :	08.07.1981
DIN No. :	00041810
Name :	Mrs. Usha Nandakumar
Designation :	Director
Address :	202, Mangal Darshan, Turner Road, Bandra [West], Mumbai 400050, Maharashtra, India
Date of Birth/Age :	01.02.1955
Qualification :	PG. in Philosaphy
Date of Appointment :	09.01.2004
DIN No. :	00041863

KEY EXECUTIVES

Name :	Mr. R. Radhakrishanan
Designation :	Sr. Vice President (Finance and Administration)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2011

Names of Shareholders	No. of Shares
K. Nandakumar	5038112
S. A. Nikam	1243853
Usha Nandakumar	2107664
K Rajagopal	509664
Chemtorls Holding Private Limited – India	38425489
K. Venugopal	24711
K. Ramanathan	29447
Chandrika Venugopal	24711
Shailaja Viswanthan	29301
Nalini Rajagopal	38772
K Viswanathan	29301
Smitha Rajagopal	15559
Sudha Ramanathan	35335
K Aravindakshan	7550
R.R. Nair	2323
R. Radhakrishnan	264002
Sreelatha Nair	22651
Karthika Nandakumar	62863
Kumari Unnikrishnan	34247
Total	47945555

AS ON 27.09.2011

Category	Percentage
Bodies corporate	80.14
Directors or relatives of Directors	17.57
Other top fifty shareholders	2.29
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Level Instruments, Analyzer and Valves for Chemical Industry.

Products :

• Analyser Shelters and Spares
• Online Analyser Package System and Spares (Environment Monitoring/ Ambient/ Air Quality Monitoring Station/ System, Flue Gas Stack Analyser System)
• Level Gauges And Spares
• Valves And Spares
• Level Transmitters And Spares
• Pressure Transmitters and Spares
• And Spares
• Differential Transmitters And Spares
• Desuper Heaters And Spares
• Pressure Switches And Spares
• Level Switch
• Flow Indicators
• Spray Nozzle System
• Temperature Transmitters
• Flow Meter And Accessories
• Process Analyser System
• Stack Analyser System
• Ambient Analyser System
• Boiler Level Gauges/ Drum Level Indicators
• Pressure Heaters
• Flame Arrester
• Temperature Switches
• Hygrometer
• Plug/PRFE Sleeve/ Breather Valves
• Gas Detection System
• Close Sampling System
• Hvac Unit and Spares
• Metering Skids
• Nucleonic Density/ Level Meters

ITC Code	Product Description
Level Instrument	90261000
Analyzer	90271000
Valves	84818000

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel W, Mumbai - 400013, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Rupee term loans banks secured	74.700	54.600
Loans taken for vehicles secured	9.632	11.843
Other debt secured	615.000	469.430
Total	699.332	535.873
Unsecured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Deposits related parties unsecured	2.456	2.729
Other debt unsecured	19.600	10.421
Total	22.056	13.150

Banking Relations :

--

Auditors :

Name :

S. Raghunath and Company

Chartered Accountants

Address :

3/8, Surya Niwas, Colony Road, Sion [West], Mumbai 400022, Maharashtra, India

Tel. No. :

91-22-24020404

E-Mail :

raghunath@vsnl.net

Pan No.:

AAPFS9245B

Holding Company:

Chemtrols Holding Private Limited

CIN No.: U65590MH1992PTC066098

Entities where control exists:

· Shareholders of Chemtrols Industries Limited

· Chemtrols Holding Private Limited

Subsidiary companies:

· Chemtrols Solar Private Limited

· Envirex India Private Limited

CAPITAL STRUCTURE

AS ON 27.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.5/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
47945555	Equity Shares	Rs.5/- each	Rs.239.728 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		239.728	219.276	204.408
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		189.474	153.866	110.589
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		429.202	373.142	314.997
LOAN FUNDS
1] Secured Loans		699.332	535.873	469.446
2] Unsecured Loans		22.056	13.150	8.380
TOTAL BORROWING		721.388	549.023	477.826
DEFERRED TAX LIABILITIES		0.335	1.159	1.150
TOTAL		1150.925	923.324	793.973
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		190.011	182.144	174.599
Capital work-in-progress		24.043	11.540	7.752
INVESTMENT		13.543	2.839	1.839
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	379.024	350.356	320.906
	Sundry Debtors	1044.030	781.633	691.209
	Cash & Bank Balances	152.087	148.610	108.938
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	132.069	166.355	161.598
Total Current Assets		1707.210	1446.954	1282.651
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	473.649	391.744	403.690
	Other Current Liabilities	229.174	193.632	161.552
	Provisions	81.059	134.777	107.626
Total Current Liabilities		783.882	720.153	672.868
Net Current Assets		923.328	726.801	609.783
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1150.925	923.324	793.973

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2477.316	2514.189	1950.552
		Other Operating Income	0.000	0.000	37.768
		Other Income	1.761	1.282	1.073
		TOTAL (A)	2479.077	2515.471	1989.393
Less	EXPENSES
		Consumption materials changes inventories	1542.350	1625.429	0.000
		Cost of sales and services	0.000	0.000	1328.997
		Manufacturing Services Cost	82.027	78.269	0.000
		Contract Cost	78.069	90.201	0.000
		Employee Related Expenses	278.390	239.867	0.000
		Personnel cost	0.000	0.000	207.146
		Selling and other expenses	329.983	294.102	274.531
		Exceptional income	0.000	0.000	(2.500)
		TOTAL (B)	2310.819	2327.868	1808.174
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		168.258	187.603	181.219
Less	FINANCIAL EXPENSES (D)		63.987	61.999	71.372
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		104.271	125.604	109.847
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.643	20.303	18.113
Add	PRIOR PERIOD ADJUSTMENT		2.675	(1.317)	0.000
	PROFIT BEFORE TAX		84.303	103.984	91.734
Less	TAX		21.776	35.690	35.877
	PROFIT AFTER TAX		62.527	68.294	55.857
Less	Income tax of earlier years		0.000	0.000	3.877
Less	Prior period items		0.000	0.000	0.067
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	28.520	38.578
Less	APPROPRIATIONS
		Interim dividend	0.000	0.000	14.789
		Tax on interim dividend	0.000	0.000	2.513
		Proposed dividend	0.000	0.000	14.884
		Tax on proposed dividend	0.000	0.000	2.530
		Utilised for issue of bonus shares	0.000	0.000	17.255
		Transfer to general reserve	0.000	0.000	10.000
	BALANCE CARRIED TO THE B/S		89.639	62.945	28.520
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	0.000	70.516
		Services charges and others	0.000	0.000	51.383
	TOTAL EARNINGS		0.000	0.000	121.899
	IMPORTS
		Raw Materials	0.000	0.000	754.962
		Stores & Spares	0.000	0.000	0.923
	TOTAL IMPORTS		0.000	0.000	755.885

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.52	2.77	2.80
Net Profit Margin (PBT/Sales)	(%)	3.40	4.32	4.70
Return on Total Assets (PBT/Total Assets}	(%)	4.44	6.46	6.30
Return on Investment (ROI) (PBT/Networth)		0.20	0.10	0.29
Debt Equity Ratio (Total Liability/Networth)		3.51	3.40	3.65
Current Ratio (Current Asset/Current Liability)		2.18	2.01	1.91

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

SOURCES OF FUNDS	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Creditors due small micro enterprises	0.000	0.000	0.000
Creditors due others	473.649	391.744	403.690

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	Yes
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	No
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	Yes

Form 8

Corporate identity number of the company	U29299MH1981PLC024757
Name of the company	CHEMTROLS INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	910, Tulsiani Chambers, 212, Nariman Point, Mumbai 400021, Maharashtra, India
This form is for	Modification of charge
Type of charge	Book Debts Current and Fixed Assets
Particular of charge holder	HDFC BANK LIMITED
Nature of description of the instrument creating or modifying the charge	4th Supplemental Letter Of Hypothecation Of Stock, Book Debts And Machinery
Date of instrument Creating the charge	05/07/2012
Amount secured by the charge	Rs. 340.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest At The Rate As May Be Communicated By The Bank From Time To Time Terms Of Repayment On Demand  Margin The Borrower Shall Maintain Said Goods/Debts & Machinery Of Sufficient Quantity And Value So As To Provide The Margin As Time To Time Advised By The Bank Extent and Operation of the charge First Charge On Entire Hypothecation Of Stock, Book Debts And Machinery Of The Company Both Present And Future Others - As Stipualted By Bank From Time To Time And As Per Sanction Letter Of The Bank
Short particulars of the property charged	First Charge On Entire Hypothecation Of Stock, Book Debts And Machinery Of The Company Both Present

Fixed Assets:

• Freehold land
• Factory building
• Leasehold land
• Residential flats
• Office Premises
• Computers
• Furniture and Fittings
• Electrical Installation
• Office Equipments
• Motor Vehicle
• Patterns and Dies
• Technical know – how

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.55.97
UK Pound	1	Rs.89.02
Euro	1	Rs.70.61

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	SDA

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.