MIRA INFORM REPORT

Report Date :

24.09.2012

IDENTIFICATION DETAILS

Name :	LOK CHEMICALS PRIVATE LIMITED
Registered Office :	Solitaire Corporate Park, 741, 4^th Floor, Andheri Ghatkopar Link Road, Chakala, Andheri (East), Mumbai-400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.02.1999
Com. Reg. No.:	11 – 118567
Capital Investment / Paid-up Capital :	Rs. 21.295 Millions
CIN No.: [Company Identification No.]	U24100MH1999PTC118567
TAN No.: [Tax Deduction & Collection Account No.]	MUML06098B
PAN No.: [Permanent Account No.]	AAACL4936H
Legal Form :	Private Limited Liability Company
Line of Business :	Importers and Dealers of Chemicals Solvents and Bulk Drug Intermediate.
No. of Employees :	20 Approximately

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 1000000
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.

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	ICRA
Rating	BB (Cash Credit : Fund Based Limits)
Rating Explanation	Moderate risk of default
Date	November 2011

Rating Agency Name	ICRA
Rating	A4 (Non Fund Based Limits)
Rating Explanation	Minimal degree of safety and very high credit risk
Date	November 2011

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 :	Ms. Aarti
Designation :	Accounts Executive
Contact No.:	91-22-26231006
Date :	22.09.2012

LOCATIONS

Registered Office :	Solitaire Corporate Park, 741, 4^th Floor, Andheri Ghatkopar Link Road, Chakala, Andheri (East), Mumbai-400093, Maharashtra, India
Tel. No.:	91-22-67364646/ 26231006
Fax No.:	91-22-28392486/ 26204121
E-Mail :	sales@lokchem.com pur@lokchem.com
Website :	http://www.lokchem.com
Location:	Owned

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Ajay Loknath Lohia
Designation :	Director
Address :	62, Shangrila, Samarth Ramdas Marg, Juhu, Mumbai-400049, Maharashtra, India
Date of Birth/Age :	10.03.1967
Date of Appointment :	09.10.2010
DIN No.:	02966430
Name :	Mr. Rahul Loknath Lohia
Designation :	Director
Address :	62, Shangrila Apartments, Gulmohar Road No. 11, Juhu, Mumbai-400049, Maharashtra, India
Date of Appointment :	02.05.2002
DIN No.:	01245508

KEY EXECUTIVES

Name :	Ms. Aarti
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Ajay Lohia and Priti Lohia	931000
Rahul Lohia Nidhi Lohia	30000
Bimla Lohia and Nidhi Lohia	238000
Priti Lohia and Ajay Lohia	20000
Manish Lohia and Nidhi Lohia	60093
Nidhi Lohia and Bimla Lohia	142900
Nupur Lohia and Rahul Lohia	100001
Amit Lohia	01
Lokam Holdings Private Limited	583915
*Deepinder Kaur	9600
*Rajinder Kaur	2000
*Gurmit Singh	12000
TOTAL	2129510

*Shares were allotted to above shareholders on 14.03.2011.

AS ON 31.03.2012

Names of Allottee	No. of Shares
INTELLECT Fincon Private Limited, India	6000
Intellect Stock Broking Limited, India	94000
TOTAL	100000

AS ON 01.10.2011

Names of Allottee	No. of Shares
Intellect Stock Broking Limited, India	30000
TOTAL	30000

AS ON 30.09.2011

Equity Shares Break Up	Percentage of Holding
Bodies corporate	73.00
Directors or relatives of Directors	27.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Importers and Dealers of Chemicals Solvents and Bulk Drug Intermediate.
Products :	· Acetonitrile · Acetophenone · Acrylamide · Acrylic Acid · Adipic Acid
Imports :
Countries :	China UAE
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers :

• Retailers
• End Users

No. of Employees :

20 (Approximately)

Bankers :

• Oriental Bank of Commerce, Fort Branch, Jash Chambers, Sir. P. M. Rod, Fort, Mumbai-400001, Maharashtra, India
• Bank of India, Andheri Corporate Banking Branch, M.D.I. Building, 28, S.V. Road, Andheri (West), Mumbai – 400 058, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee term loans secured
Rupee term loans banks secured	152.560	70.293
TOTAL	152.560	70.293
NOTE: Bank of India overdraft A/C
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Loans directors unsecured	2.000	0.000
Other debt unsecured	2.300	8.200
TOTAL	4.300	8.200
NOTE: Unsecured loans from shareholders

Banking Relations :	--
Auditors :
Name :	Vinod Kumar Jain and Company Chartered Accountant
Address :	205, Apollo Arcade, R K Singh Marg, Off Old Nagardas Road, Andheri (East), Mumbai-400069, Maharashtra, India
PAN No.:	AAEPJ7471N
Associates :	Hindustan Chemicals Private Limited Lokam Holdings Private Limited Lokshakti Properties

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2129510	Equity Shares	Rs.10/- each	Rs. 21.295 Millions

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2259510	Equity Shares	Rs.10/- each	Rs. 22.595 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		21.295	21.059	19.969
2] Share Application Money		0.000	0.000	2.000
3] Reserves & Surplus		244.637	207.149	146.606
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		265.932	228.208	168.575
LOAN FUNDS
1] Secured Loans		152.560	70.293	17.925
2] Unsecured Loans		4.300	8.200	14.858
TOTAL BORROWING		156.860	78.493	32.783
DEFERRED TAX LIABILITIES		0.397	0.000	0.459
TOTAL		423.189	306.701	201.817
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		103.991	2.393	15.335
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	294.285	146.556	69.932
	Sundry Debtors	213.077	248.317	157.454
	Cash & Bank Balances	148.750	231.099	64.084
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	92.583	21.695	42.237
Total Current Assets		748.695	647.667	333.707
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	414.172	334.105	147.225
	Other Current Liabilities	2.256	4.332
	Provisions	13.069	4.922
Total Current Liabilities		429.497	343.359	147.225
Net Current Assets		319.198	304.308	186.482
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		423.189	306.701	201.817

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	2139.600	1189.600
		Other Income
		TOTAL	2139.600	1189.600
Less	EXPENSES
		Office Expenses	2100.000	1177.000
		Administrative Expenses
		Advertising Expenses
		TOTAL	2100.000	1177.000
	PROFIT BEFORE TAX		39.600	12.600
Less	TAX		13.700	5.500
	PROFIT AFTER TAX		25.900	7.100
	EARNINGS IN FOREIGN CURRENCY		30.089	17.469
	Earnings Per Share (Rs.)		12.30	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.21	0.60	NA
Return on Total Assets (PBT/Total Assets}	(%)	4.64	1.94	NA
Return on Investment (ROI) (PBT/Networth)		0.15	0.06	NA
Debt Equity Ratio (Total Liability/Networth)		2.21	1.85	1.07
Current Ratio (Current Asset/Current Liability)		1.74	1.89	2.27

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two 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	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	Yes

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Creditors due small micro enterprises	358.529	330.344	NA
Creditors due others	55.643	3.761	NA
TOTAL	414.172	334.105	NA

NOTE

The company changed its registered office from 77/B, Juhu Supreme Centre, Gulmohar Road, Mumbai – 400 049, Maharashtra, India to 72, Juhu Supreme Centre, Gulmohar Road, Mumbai – 400 049, Maharashtra, India w.e.f. 07.01.2010. The Registered office has against shifted from 72, Juhu Supreme Centre, Gulmohar Road, Mumbai – 400 049, Maharashtra, India to present address w.e.f. 07.01.2010

REVIEW OF OPERATIONS

During the year the Company has performed exceedingly well and achieved higher income from operation of Rs. 2139.600 Millions as compared to Rs.1189.600 Millions achieved during the previous year and has earned net profit after tax of Rs. 25.900 Millions as compared to 7.100 Millions earned during the previous year. However the Directors are hopeful of even better performance during the current year.

FORM 8

Corporate identity number of the company	U24100MH1999PTC118567
Name of the company	LOK CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Solitaire Corporate Park, 741, 4^th Floor, Andheri Ghatkopar Link Road, Chakala, Andheri (East), Mumbai-400093, Maharashtra, India
This form is for	Modification of Charge
Charge identification number of the charge to be modified	10120772
Type of charge	Immovable Property Book Debts Movable Property (Not being pledge)
Particular of charge holder	Bank of India, Andheri Corporate Banking Branch, M.D.I. Building, 28, S.V. Road, Andheri (West), Mumbai – 400 058, Maharashtra, India. Email: arun.govil@gmail.com
Nature of instrument creating charge	Supplemental Deed of Hypothecation and 2.Memorandum of Entry both dated 25/10/2011 constituting modification to a single charge.
Date of instrument Creating the charge	25.10.2011
Amount secured by the charge	Rs. 900.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest/Commission at the rate/s mentioned in the attached copies of Supplemental Deed of Hypothecation and MOE or at such other rate/s as may be notified by the Bank from time to time. Terms of repayment CC: On Demand, LC(I/F) DP/DA-180 days, Co-acceptance of Bills within LC and Comfort letter for availing Buyers Credit: On due date Margin 25% against raw material, finished goods; stores; goods in process, 30% against Book Debts up to 90 days, 15% cash margin in TDR against LC and Co-acceptance of Bills within LC, 30% cash margin in TDR against Comfort letter for availing Buyers Credit or as required by the bank from time to time. Extent and operation of the charge Exclusive charge by way of hypothecation of movable assets. Additional Security in favour of Bank by way of EM for due repayment by company to Bank at Andheri MCB of the said credit facilies of Rs.900.000 Millions with int. at agreed rates of interest, security shall remain and continue for any advances of any nature now due or pending or that may be made or become due hereafter from time to time either in said A/c’s or in any other A/c/s and whether singly or jointly with another or others and Andheri MCB or any Other Other branch or office of Bank and/or for any indebtedness or liability whatsoever and for all costs, charges and expenses. What so ever paid or incurred by the Bank. Revised Limits (Rs. in Millions):1)CC (Hypothecation of Stocks and BD up to 90 days) Rs.200.000 Millions, 2) L/C(I/F) DP/DA 180 days Rs.700.000 Millions, 3) Co-acceptance of Bills within LC limit Rs.700.000 Millions, 4) Comfort Letter for availing Buyers Credit Rs.700.000 Millions, Max (2+3+4) Rs.700.000 Millions, Total Rs.900.000 Millions (full interchangeability between LC(I), Comfort letter and Co-acceptance limit with Max of Rs.700.000 Millions)
Short particulars of the property charged (Including location of the property)	1) Hypothecation of Stocks, Book Debts, Plant and Machinery. Details as per copy of supplemental deed of hypothecation 2) Equitable mortgage of immovable properties of the company comprising land and building and other structures, machinery and plant and other fixtures and fittings erected or installed thereon both present and future situate at 741, Solitaire Corporate Park, Andheri- Ghatkopar Link Road, Chakala, Andheri (East), Mumbai – 400 093.
Date of instrument modifying the charge	07.05.2010
Particulars of the present modification	Principal amount of charge on Hypothecated assets is enhanced to Rs.900.000 Millions and Additional security of EM of immovable properties of company comprising land and building and other structures, machinery and plant and other fixtures and fittings erected or installed thereon (both present and future) situated at 741, Solitaire Corporate Park, Andheri- Ghatkopar Link Road, Chakala, Andheri (East), Mumbai - 93 is created to secure revised aggregate limit of Rs.900.000 Millions.

FIXED ASSETS

· Air Conditioner

· Computer

· Telephone Equipment

· Hundai Car Getz

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. 53.90
UK Pound	1	Rs. 87.60
Euro	1	Rs. 70.00

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	DPT

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	YES
--AFFILIATION	YES/NO	YES
--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	-

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.