MIRA INFORM REPORT

Report Date :

22.09.2012

IDENTIFICATION DETAILS

Name :	PRAYAG CHEMICALS PRIVATE LIMITED
Registered Office :	314, PP Tower, Netaji Subhash Place, Pitampura, Delhi – 110034
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.10.1993
Com. Reg. No.:	55-125350
Capital Investment / Paid-up Capital :	Rs.4.308 Millions
CIN No.: [Company Identification No.]	U24119DL1993PTC125350
TAN No.: [Tax Deduction & Collection Account No.]	PTLP10520G DELP11245D
PAN No.: [Permanent Account No.]	AACCP1612J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of HCL Chemicals, CPW Chemicals, HDPE Chemicals.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 66000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. 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.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	314, PP Tower, Netaji Subhash Place, Pitampura, Delhi – 110034, India
Tel. No.:	91-11-2735818/ 2735102/ 27356101
Fax No.:	91-11-27356102
E-Mail :	flowtek_group@yahoo.co.in roc.rajneesh@gmail.com

DIRECTORS

As on 25.07.2011

Name :

Mr. Sukhbir Singh Dahiya

Designation :

Director

Address :

140, Vasundra Apartments, Sector 9, Rohini, Delhi – 110085, India

Date of Birth/Age :

30.03.1962

Date of Appointment :

16.06.2005

DIN No.:

00169921

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	U25202DL1996PTC078956	FLOW TECH CHEMICALS PRIVATE LIMITED	Director	16/06/2005	16/06/2005	-	Active	NO
2	U24119DL1993PTC125350	PRAYAG CHEMICALS PRIVATE LIMITED	Director	16/06/2005	16/06/2005	-	Active	NO
3	U18201CH1993PTC013785	PRAYAG CHEMICALS PRIVATE LIMITED	Director	16/06/2005	16/06/2005	-	Not Available for eFiling	NO
4	U74899DL1995PTC068315	TARA MERCANTILE PRIVATE LIMITED	Director	18/08/2006	18/08/2006	-	Active	NO
5	U24117DL2006PTC155523	SNJ CHEMEX PRIVATE LIMITED	Director	15/11/2006	15/11/2006	-	Active	NO
6	U55101DL2010PTC209483	JASUDA FARMS & RESORTS PRIVATE LIMITED	Director	18/10/2010	18/10/2010	-	Active	NO
7	U27100DL2010PTC209529	FLOWTECH INDUSTRIAL PROJECTS PRIVATE LIMITED	Director	19/10/2010	19/10/2010	-	Active	NO

Name :

Mr. Ved Pal Singh

Designation :

Director

Address :

AP – 2A, Pitampura, Delhi – 110034, India

Date of Birth/Age :

24.10.1938

Date of Appointment :

12.10.2002

DIN No.:

01189056

Date of Ceasing :

02.04.2012

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	U18201CH1993PTC013785	PRAYAG CHEMICALS PRIVATE LIMITED	Director	12/10/2002	12/10/2002	-	Not Available for eFiling	NO
2	U24119DL1993PTC125350	PRAYAG CHEMICALS PRIVATE LIMITED	Director	12/10/2002	12/10/2002	02/04/2012	Active	NO
3	U15440DL2007PTC169422	PRECIOUS FOOD COMPANY PRIVATE LIMITED	Director	20/11/2007	20/11/2007	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.07.2011

Names of Shareholders	No. of Shares
Sukhbir S. Dahiya	16010
Ved Pal Singh	11240
Nirmala Dahiya	5100
Parminder Singh	4500
Pritam K Bamel	5725
Jai Pal Singh	257
Satbir S Dahiya	244
Total	43076

Equity Share Break up (Percentage of Total Equity)

25.07.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of HCL Chemicals, CPW Chemicals, HDPE Chemicals.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Standard Chartered Bank, 10, Parliament Street, New Delhi – 110001, India
• State Bank of India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
State Bank of India	15.406	18.347
Vehicles Loan (Against Hypothecation of Cars and Trucks)	1.805	1.179
Total	17.211	19.526
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
From Shareholders	0.996	0.843
From Others	1.515	1.176
Total	2.511	2.019

Note: The company is availing working capital facilities from SBI hypothecation of book debts and stocks and Equitable Mortgage of Factory Land and Building at Khoutli, Haryana. For the said facilities the directors have given their personal guarantee.

Banking Relations :	--
Auditors :
Name :	Rajneesh Associates Chartered Accountants
Address :	C – 60, 3^rd Floor, C – Block, Community Centre, Janak Cinema Complex, Delhi – 110058, India
Tel. No.:	91-11-25534986
Mobile No.:	91-9810073042
Fax No.:	91-11-25554986
E-Mail :	rajneeshassociates@gmail.com
PAN.:	AAAFR5530N

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
43076	Equity Shares	Rs.100/- each	Rs.4.308 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		4.308	4.308	4.308
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12.370	10.569	8.460
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		16.678	14.877	12.768
LOAN FUNDS
1] Secured Loans		17.211	19.526	11.168
2] Unsecured Loans		2.511	2.019	2.765
TOTAL BORROWING		19.722	21.545	13.933
DEFERRED TAX LIABILITIES		1.049	0.878	0.791
TOTAL		37.449	37.300	27.492
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.803	9.659	8.719
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	19.364	2.665	2.757
	Sundry Debtors	28.876	29.696	17.313
	Cash & Bank Balances	3.078	1.346	5.304
	Other Current Assets	14.349	11.199	6.982
	Loans & Advances	0.100	0.145	0.731
Total Current Assets		65.767	45.051	33.087
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	34.644	13.194
	Other Current Liabilities	5.477	3.516	14.232
	Provisions	0.000	0.700	0.082
Total Current Liabilities		40.121	17.410	14.314
Net Current Assets		25.646	27.641	18.773
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		37.449	37.300	27.492

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Sales	NA	NA	NA
Expenses	NA	NA	NA
Profit/(Loss) Before Tax	2.513	2.546	1.941

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	3.24	4.65	4.64
Return on Investment (ROI) (PBT/Networth)		0.15	0.17	0.15
Debt Equity Ratio (Total Liability/Networth)		3.58	2.62	2.21
Current Ratio (Current Asset/Current Liability)		1.63	2.59	2.31

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	No
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	No
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes
Date of Birth of Proprietor/Partner/Director, if available	Yes
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if available	No

FORM 8

Corporate identity number of the company	U24119DL1993PTC125350
Name of the company	PRAYAG CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	314, PP Tower, Netaji Subhash Place, Pitampura, Delhi – 110034, India Email Id : roc.rajneesh@gmail.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Standard Chartered Bank, 10, Parliament Street, New Delhi – 110001, India Email Id : sme.form8@sc.com
Nature of instrument creating charge	Hypothecation Agreement
Date of instrument Creating the charge	23.11.2011
Amount secured by the charge	Rs.36.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per facility letter dated 23.11.2011 Terms of repayment As per facility letter dated 23.11.2011 Margin As per facility letter dated 23.11.2011 Extent and operation of the charge Extent and Operation - 100%
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation by way of first and exclusive charge over all present and future current assets and movable fixed assets of the company stored or to be stored at the company's godowns or premises or wherever else the same may be

FIXED ASSETS

• Land and Development
• Building
• Machinery
• Offices Equipment
• Furniture and Fixtures
• Vehicles
• Weghing Scale
• Computer and Peripherals

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.53.91
UK Pound	1	Rs.87.60
Euro	1	Rs.70.01

INFORMATION DETAILS

Report Prepared by :

BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.