MIRA INFORM REPORT

Report Date :

08.09.2012

IDENTIFICATION DETAILS

Name :	LUCID COLLOIDS LIMITED (w.e.f. 28.11.2000)
Formerly Known As :	LUCID COLLOIDS PRIVATE LIMITED
Registered Office :	401, Navbharat Estate, Zakaria Bunder Road, Sewri (West), Mumbai – 400 015, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.05.1996
Com. Reg. No.:	11-099800
Capital Investment / Paid-up Capital :	Rs.78.750 Millions
CIN No.: [Company Identification No.]	U24311MH1996PLC099800
TAN No.: [Tax Deduction & Collection Account No.]	MUML04395G
PAN No.: [Permanent Account No.]	AAACL2673B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing, Marketing and Distribution of Guar Gum and Allied Hydrocolloid Gums.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 1400000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a established company having moderate track. The financial details for the current year is missing from government department and in the previous year there was a sharp dip in the profitability of the company. However, trade relations are reported to be 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BB (Long term rating)
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	May 2012

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/ Corporate Office :	401, Navbharat Estate, Zakaria Bunder Road, Sewri (West), Mumbai – 400015, Maharashtra, India
Tel. No.:	91-22-24158059
Fax No.:	91-22-24158074/ 75
E-Mail :	info@lucidgroup.com admin@lucidgroup.com kdalal@lucidgroup.com
Website :	http://www.lucidgroup.com
Factory 1 :	B 5/7, Marudhar Industrial Area, Basni, Jodhpur – 342005, Rajasthan, India
Tel. No.:	91-291-2740213 / 22720213
Fax No.:	91-291-2740398 / 22720398
Factory 2:	Located at Aurangabad
Sales Offices	· 595, Pocket E, Mayur Vihar, Phase II, New Delhi – 110 091, India Tel No. 91-11-22781087 E Mail : luciddel@lucidgroup.com · 1252/19, P. M. Laxmiah Layout, Opp. Raheja Park Apartments, Magadi Road, Chord Road, Vijay Nagar, Bangalore – 560 040, Karnataka, India Tel. No. 91-80-23109120 E Mail : lucidban@lucidgroup.com · A/220, Popular Plaza, Someshwar Complex – 1, Satellite Road, Ahmedabad – 380 015, Gujarat, India Tel No. : 91-79-26775494 E Mail : lucidahm@lucidgroup.com

DIRECTORS

As on: 10.08.2012

Name :

Mr. Uday Chaturbhuj Merchant

Designation :

Managing Director

Address :

9A, Suraj Apartments, 68, F. L. Jagmohandas Marg, Nepeansea Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

26.11.1958

Qualification :

B.Com

Date of Appointment :

01.10.2011

PAN No.:

AABPM8503H

DIN No.:

00389598

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	U67120MH1984PTC031890	VISA HOLDINGS PRIVATE LIMITED	Director	20/01/1984	20/01/1984	-	Active	NO
2	U52300MH1993PTC074205	LUCID TRADING COMPANY PRIVATE LIMITED	Director	28/09/1993	28/09/1993	16/07/2011	Active	NO
3	U51900MH1993PTC075341	TWINING TRADING AND FINANCE PRIVATE LIMITED	Director	26/11/1993	26/11/1993	-	Active	NO
4	U15130MH1994PTC078987	LUCID FLAVITALIA PRIVATE LIMITED	Director	15/06/1994	15/06/1994	07/09/2007	Active	NO
5	U99999MH1994PTC082805	SHALOMI PROPERTIES PRIVATE LIMITED	Director	11/11/1994	11/11/1994	-	Active	NO
6	U73100MH1996PTC099799	LUCID TECHNOLOGIES PRIVATE LIMITED	Director	23/05/1996	23/05/1996	-	Active	NO
7	U24311MH1996PLC099800	LUCID COLLOIDS LIMITED	Managing director	01/10/2011	23/05/1996	-	Active	NO
8	U28920MH2002PTC136958	TAIYO LUCID PRIVATE LIMITED	Managing director	23/08/2002	23/08/2002	-	Active	NO
9	U01122RJ2006PTC023176	LUCID AGRO PRIVATE LIMITED	Director	05/10/2006	05/10/2006	-	Active	NO

Name :

Mrs. Shailaja Uday Merchant

Designation :

Whole Time Director

Address :

9A, Suraj Apartments, 68, F. L. Jagmohandas Marg, Nepeansea Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

19.11.1958

Qualification :

B.Sc, M.Sc in Bio Chemistry

Date of Appointment :

01.01.2012

PAN No.:

AAHPM0649Q

DIN No.:

00389482

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	U67120MH1984PTC031890	VISA HOLDINGS PRIVATE LIMITED	Director	20/01/1984	20/01/1984	-	Active	NO
2	U52300MH1993PTC074205	LUCID TRADING COMPANY PRIVATE LIMITED	Director	28/09/1993	28/09/1993	16/07/2011	Active	NO
3	U51900MH1993PTC075341	TWINING TRADING AND FINANCE PRIVATE LIMITED	Director	26/11/1993	26/11/1993	-	Active	NO
4	U15130MH1994PTC078987	LUCID FLAVITALIA PRIVATE LIMITED	Director	15/06/1994	15/06/1994	07/09/2007	Active	NO
5	U99999MH1994PTC082805	SHALOMI PROPERTIES PRIVATE LIMITED	Director	11/11/1994	11/11/1994	-	Active	NO
6	U73100MH1996PTC099799	LUCID TECHNOLOGIES PRIVATE LIMITED	Director	23/05/1996	23/05/1996	-	Active	NO
7	U24311MH1996PLC099800	LUCID COLLOIDS LIMITED	Whole-time director	01/01/2012	23/05/1996	-	Active	NO

Name :

Mr. Marezban Padam Bharucha

Designation :

Director

Address :

7/E, Harbour Heights – A, N. A. Sawant Road, Colaba, Mumbai – 400 005, Maharashtra, India

Date of Birth/Age :

29.10.1948

Qualification :

LLB

Date of Appointment :

15.03.2000

DIN No:

00361911

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	U24311MH1996PLC099800	LUCID COLLOIDS LIMITED	Director	15/03/2000	15/03/2000	-	Active	NO
2	U99999MH1895NPL000121	BOMBAY INCORPORATED LAW SOCIETY	Director	18/06/2004	18/06/2004	-	Active	NO
3	L27100MH1972PLC015950	UNI-ABEX ALLOY PRODUCTS LIMITED	Director	23/08/2012	01/02/2011	-	Active	NO
4	U11201MH2000PTC129960	OIL FIELD INSTRUMENTATION (INDIA) PRIVATE LIMITED	Director	30/08/2011	25/03/2011	-	Active	NO
5	L72100MH1995PLC084788	CYBERTECH SYSTEMS AND SOFTWARE LIMITED	Additional director	30/09/2011	30/09/2011	-	Active	NO

Name :

Mrs. Anima Bhupendra Kapadia

Designation :

Director

Address :

Gita, ‘B’ Wing, Flat No. 68, 8^th Floor, Pandita Ramabai Road, Gamdevi, Mumbai – 400 007, Maharashtra, India

Date of Birth/Age :

04.07.1951

Qualification :

LLB

Date of Appointment :

15.03.2000

DIN No.:

00095831

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	U67120WB1982PTC034653	AVIK INVESTMENT AND TRADING PRIVATE LIMITED	Director	26/06/1982	26/06/1982	-	Active	NO
2	U73100MH1996PTC099799	LUCID TECHNOLOGIES PRIVATE LIMITED	Director	27/05/1997	27/05/1997	-	Active	NO
3	U24311MH1996PLC099800	LUCID COLLOIDS LIMITED	Director	15/03/2000	15/03/2000	-	Active	NO
4	L51500MH1926PLC001255	THE INDIAN HUME PIPE COMPANY LIMITED	Director	27/07/2001	27/07/2001	-	Active	NO
5	U17118WB1962PLC025503	B A AND BROTHERS (EASTERN) LIMITED	Director	21/01/2002	21/01/2002	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 10.08.2012

Names of Shareholders	No. of Shares
Uday C. Merchant	903181
Shailaja U. Merchant	398529
Lucid Technologies Private Limited, India	1
Lucid Flavitalia Private Limited, India	1
Visa Holdings Private Limited, India	2385501
Shailaja U. Merchant	1
Uday C. Merchant and Shailaja U. Merchant	1879400
Uday C. Merchant HUF and Shailaja U. Merchant	205370
Shailaja U Merchant and Uday C. Merchant	644400
Dhruti A. Vashi	76
Kunal U. Merchant	1184940
Paolomi U. Merchant	273600
Total	7875000

Equity Share Break up (Percentage of Total Equity)

As on: 10.08.2012

Category	Percentage
Bodies corporate	30.29
Directors or relatives of directors	67.10
Others	2.61
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing, Marketing and Distribution of Guar Gum and Allied Hydrocolloid Gums.

Products :

Product Description	ITC Code
Guar Gum and Allied Hydro – Colloid Gums	130232.03

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Installed Capacity	Actual Production
Guar Gum Powder	M.T.	18000	14509908

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of Baroda, Nariman Point Branch, Foreshore Building, Gen Bhosale Marg, Near Sachivalaya Gym, Nariman Point, Mumbai – 400 021, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	117.220	65.575
Working capital loans banks secured	799.654	509.003
Loans taken for vehicles secured	1.629	2.929
Total	918.503	577.507

Banking Relations :	--
Auditors :	Kalyaniwalla and Mistry Chartered Accountant
Address:	Kalpataru Heritage, 127, Mahatma Gandhi Road, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-61587200
Fax No.:	91-22-22673964
PAN No.:	AAAFK7554R
Joint Venture :	· Taiyo Lucid Private Limited CIN No.: U28920MH2002PTC136958
Subsidiary Company :	· Lucid Colloids Middle East FZE
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	· Lucid Flavitalia Private Limited CIN No.: U15130MH1994PTC078987 · Visa Holdings Private Limited CIN No.: U67120MH1984PTC031890 · Lucid Technologies Private Limited CIN No.: U73100MH1996PTC099799 · M/S Lucid · Lucid Agro Private Limited CIN No.: U01122RJ2006PTC023176

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7875000	Equity Shares	Rs.10/- each	Rs.78.750 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		78.750	78.750	78.750
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		292.126	290.227	254.565
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		370.876	368.977	333.315
LOAN FUNDS
1] Secured Loans		918.503	577.507	355.659
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		918.503	577.507	355.659
DEFERRED TAX LIABILITIES		11.439	10.593	8.917
TOTAL		1300.818	957.077	697.891
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		262.085	211.398	157.890
Capital work-in-progress		65.381	22.862	12.300
INVESTMENT		82.049	82.003	80.010
DEFERREX TAX ASSETS			0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	347.846	327.120	183.628
	Sundry Debtors	399.604	324.998	281.589
	Cash & Bank Balances	228.465	11.486	10.166
	Other Current Assets	82.265	37.834	39.461
	Loans & Advances	128.866	39.669	34.636
Total Current Assets		1187.046	741.107	549.480
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	178.115	40.418	13.959
	Other Current Liabilities	117.628	54.728	84.519
	Provisions	0.000	5.147	3.311
Total Current Liabilities		295.743	100.293	101.789
Net Current Assets		891.303	640.814	447.691
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1300.818	957.077	697.891

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	2184.538	1222.628	1458.311
		Other Income	125.409	80.596	58.504
		Export Incentives	0.000	0.000	30.069
		TOTAL (A)	2309.947	1303.224	1546.884
Less	EXPENSES
		Consumption materials changes inventories	1845.350	940.025
		Manufacturing service costs	180.593	110.401
		Employee related expenses	45.688	30.311
		Administrative selling other expenses	146.039	95.688
		TOTAL (B)	2217.670	1176.425	1396.836
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		92.277	126.799	150.048
Less	FINANCIAL EXPENSES (D)		57.741	33.202	48.122
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		34.536	93.597	101.926
Less/ Add	DEPRECIATION/ AMORTISATION (F)		31.792	22.429	20.502
	PROFIT BEFORE TAX (E-F) (G)		2.744	71.168	81.424
Less	TAX (H)		0.846	21.685	23.816
	PROFIT AFTER TAX (G-H) (I)		1.898	49.483	57.608
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		65.525	32.579	26.838
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	2.717	5.800
		Interim Dividend		11.813	39.375
		Tax on Distributed Profit		2.007	6.692
	BALANCE CARRIED TO THE B/S		67.423	65.525	32.579
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1790.152	879.528	1019.529
	TOTAL EARNINGS		1790.152	879.528	1019.529
	IMPORTS
		Raw Materials	6.896	6.243	7.170
		Stores & Spares	45.588	21.817	39.720
	TOTAL IMPORTS		52.484	28.060	46.890
	Earnings Per Share (Rs.)		0.24	6.28	7.32

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.08	3.79	3.72
Net Profit Margin (PBT/Sales)	(%)	0.13	5.82	5.58
Return on Total Assets (PBT/Total Assets}	(%)	0.19	7.47	11.51
Return on Investment (ROI) (PBT/Networth)		0.01	0.19	0.24
Debt Equity Ratio (Total Liability/Networth)		3.27	1.84	1.40
Current Ratio (Current Asset/Current Liability)		4.01	7.39	5.40

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	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	--
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	Yes

RESULTS OF OPERATIONS

The Company has achieved a total turnover of Rs. 2289.057 Millions as against Rs.1272.184 Millions in corresponding previous year. The increase is mainly due to higher demand from the Oil? Gas Industry in the USA. Due to the steep increase in raw material prices during the year, the Company found it difficult to pass on the increased prices to its customers. The Company also had a significant amount of sales contracts in hand based on lower prices which were required to be fulfilled. As a result, profitability was affected during the year. The situation has improved significantly in the current year.

CURRENT YEAR AND FUTURE OUTLOOK

The Company continues to enjoy the status as preferred supplier with certain key customers in the global market. During the current year, the Company has been able to significantly increase its top-line as well as profit margins. The company is reaping the benefits of the strong goodwill it has built up, consistency in quality, new product development and partnering with customers that it has carried out in the past several years. In spite of severe hardships of dramatically increased raw material prices during the last year, the Company has fulfilled all its contracted commitments without any renegotiations of price or defaults. This has greatly enhanced The Company’s goodwill and reputation.

Several new products developed in the past years through a concentrated effort by the Company are now yielding results by way of increasing sales in to new applications like Paper, Personal Care, Oil? Gas, Paint and Construction etc. During the year under report, the company has undertaken revamping and modernisation of the existing plant and machinery to implement best practices in the industry. The company has also embarked on an expansion plan which is underway to increase its production capacity due to higher demand for the Company’s products. The Company’s efforts in various areas of research and development including Agri research have started yielding benefits. The Agri research activities of the Company undertaken over the last five years have enabled the Company to ensure and secure a strong supplier base of valuable high yielding Guar Seeds from Rajasthan and Haryana and to interact directly with the farming community and help them implement good farming practices. The Company’s Organic Guar Project is progressing well and the Company has recently received Organic Certification.

During 2010-11, the Company has involved 700+ farmers in Rajasthan to produce Organic Guar Seeds. During the current year, the Company will introduce Organic Certified Guar Gum to the global market for use in the food industry. This project is expected to exponentially expand over the next 3 years. The Directors are pleased to inform you that the Company has maintained its status as a “Trading House” under the current Foreign Trade Policy of the Government of India. The Company continues to be ISO 9001, 14001 and 22000 certified. During the year, the Company has passed several audits carried out by existing and potential customers with flying colours. The Directors are pleased to inform you that the Company has achieved a turn over of Rs. 1630.000 Millions during the period April-20011 to August-2011 as against Rs. 940.000 Millions of the corresponding period last year. The Company is hopeful of achieving a top line of Rs. 3000.000 Millions in the current year compared to Rs. 2310.000 Millions last year. Public Deposits the Company has not accepted any fixed deposits from the public. Subsidiary Company as required under Section 212 of the Companies Act, 1956 the Audited Balance Sheet and Profit? Loss Account and the respective reports of the Board of Directors’ and Auditors’ for the Financial Year ended 31st March, 2011 of Lucid Colloids Middle East FZE is annexed. Resignation of Directors After the close of the year, Bharat S.Parikh -Director (Corporate? Commercial), Mr. Sudhir G. Kulkarni -Director (Operations) and Mr. Nikunj C. Dhuldhoya-Director (QA and RND) resigned from the board with effect from 1st June 2011. Mr. Bharat S. Parikh re-designated as President - Corporate? Commercial, Mr. Sudhir G. Kulkarni re-designated as President - Operations and Mr. Nikunj C. Dhuldhoya re-designated as President - QA and RND , respectively. The Directors place on record the valuable contributions made by Mr. Bharat Parikh, Mr. Nikunj Dhuldhoya and Mr. Sudhir Kulkarni during their tenure as Directors of the Company. AUDITORS The Auditors, M/s Kalyaniwalla and Mistry, hold office until the conclusion of the ensuing Annual General Meeting and are recommended for re-appointment.

Certificate from the Auditors has been received to the effect that their re-appointment, if made, would be within the limits prescribed under Section 224(1B) of the Companies Act, 1956. ACKNOWLEDGEMENTS The Directors record their appreciation for the continued support, which the Company has received from the Government Authorities, the Company’s Bankers, Business Associates and Customers and most importantly the employees at all levels enabling the Company to achieve the performance during the year.

JOINT VENTURE

Taiyo Lucid Private Limited, the Joint Venture promoted by the Company yielded good financial results and paid out a dividend of Rs.12.000 Millions during the year to the Company.

INVESTMENT IN WHOLLY OWNED SUBSIDIARY IN USA

In December, 2010 the Company has set up a 100% wholly owned subsidiary company in Houston, Texas, USA, named “Lucid Colloids America Inc.” to handle the marketing, distribution and logistics of the Companies exports to the US market. The Initial Capital of the Subsidiary is US Dollars 50,000 ( approx Rs. 2.400 Millions).

CONTINGENT LIABILITIES

Joint Venture Capital Commitments:

i) The Company has entered into a Joint Venture Agreement (“JVA”) with Taiyo Kagaku Company Limited Japan (“TKC”); and (ii) CBC Company Limited, Japan (“CBC”) to establish a Joint Venture Company (“JVC”) in India - Taiyo Lucid Private Limited (“TLPL”), wherein the Company has a 40% share in the equity share capital of TLPL.

ii) The amount of contracts entered into by the JVC (TLPL) and remaining to be executed on capital account, to the extent not provided for as at the balance sheet date, is estimated to be Rs. Nil (previous year Rs. 0.211 Million). The Company’s 40% share therein amounts to Rs. Nil (previous year Rs. 0.084 Million).

iii) Bond executed by the JVC (TLPL) amounting to Rs. 20.000 Millions (previous year Rs. 20.000 Millions) in favour of the Central Excise Authorities for receipt of plant and machinery and dispatch of goods without payment of excise duty. The Company’s 40% share therein amounts to Rs. 8.000 Million (previous year Rs. 8.000 Millions).

iv) Standby letter of credit executed by the JVC (TLPL) Rs. Nil (previous year Rs. 15.219 Millions). The Company’s 40% share therein amounts to Rs. Nil (previous year Rs. 6.088 Millions).

v) Guarantee given by the bank to the JVC (TLPL) Rs. 0.200 Million (previous year Rs. 0.200 Million). The Company’s 40% share therein amounts to Rs. 0.080 Million (previous year Rs. 0.080 Million).

vi) Demand raised by the Income-tax authorities on JVC (TLPL) Rs. 0.752 Million (previous year Rs. 0.752 Million). The Company’s 40% share therein amounts to Rs. 0.301 Million (previous year Rs. 0.301 Million).

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U24311MH1996PLC099800
Name of the company	LUCID COLLOIDS LIMITED
Address of the registered office or of the principal place of business in India of the company	401, Navbharat Estate, Zakaria Bunder Road, Sewri (West), Mumbai – 400 015, Maharashtra, India E-mail: kdalal@lucidgroup.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90213664
Type of charge	Movable property (not being pledge) Others (Movable Machinery)
Particular of charge holder	Bank of Baroda, Nariman Point Branch, Foreshore Building, Gen Bhosale Marg, Near Sachivalaya Gym, Nariman Point, Mumbai – 400 021, Maharashtra, India E-mail: ravinputhran@yahoo.co.in
Nature of instrument creating charge	Bank no dues certificate in respect of term loan I and term loan II.
Date of instrument Creating the charge	17.07.2012
Amount secured by the charge	Rs. 915.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As stipulated by Bank from time to time. Terms of Repayment As stipulated by Bank from time to time. Margin As stipulated by Bank from time to time. Extent and Operation of the charge Bank of Baroda B/O Nariman Point Branch Foreshore Building Mumbai first charge holder
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of goods, book debts, moveable machinery and vehicles
Date of instrument modifying the charge	03.10.2011
Particulars of the present modification	By this modification the charge is reduced from Rs. 1154.800 Millions to Rs. 915.000 Millions Term loan i amounting to Rs. 52.300 Millions and term loan ii amounting to Rs. 187.500 Millions are duly satisfied.

Fixed Assets

· Leasehold Land

· Buildings

· Plant and Machinery

· Furniture, Fixtures and Fittings

· Office Equipment

· Computers

· Vehicles

· Computer Software

WEBSITE DETAILS:

Press Releases:

LUCID COLLOIDS LIMITED AND TAIYO LUCID PRIVATE LIMITED PARTICIPATED IN THE FOOD INGREDIENTS INDIA 2008

October 09, 2008

Lucid Colloids Limited and Taiyo Lucid Private Limited participated in the Food Ingredients India 2008 exhibition held on 3rd and 4th October at Bombay Exhibition Grounds. Several visitors came to the Stall (B1) to learn about the companies new products.

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.55.52
UK Pound	1	Rs.88.49
Euro	1	Rs.70.20

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		36

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.