MIRA INFORM REPORT

Report Date :

28.09.2012

IDENTIFICATION DETAILS

Name :	SANGHVI QUALITY PRODUCTS PRIVATE LIMITED
Registered Office :	7/8, Pandav Sankul College, Mumbai Agra Highway Road, Pimpalgaon Baswant, Nashik – 422209, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.03.2001
Com. Reg. No.:	11-131439
Capital Investment / Paid-up Capital :	Rs.0.960 Million
CIN No.: [Company Identification No.]	U24117MH2001PTC131439
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Organic Fertilizers, Post Harvesting Product and Crop Health Enhancer.
No. of Employees :	103

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 81988
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. There appears some dip in the sales during 2011. However, trade relations are reported as fair. Business is active. Payments are reported as usually correct. The company can be considered 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 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 PARTED BY

Name :	Mr. Naynesh Sanghvi
Designation :	Director
Contact No.:	91-9975560006
Date :	15.09.2012

LOCATIONS

Registered Office :	7/8, Pandav Sankul College, Mumbai Agra Highway Road, Pimpalgaon, Baswant, Nashik – 422209, Maharashtra, India
Tel. No.:	91-2550-250027
Mobile No.:	91-9975560006 (Mr. Naynesh Sanghavi)
Fax No.:	91-2550-250678
E-Mail :	sanghviquality@yahoo.co.in vmsanghvi@gmail.com
Website :	www.sanghviquality.com
Area :	8000 sq. ft.
Location :	Owned
Factory :	85, Industrial Estate No.2, Barshi, Solapur – 413401, Maharashtra, India
Tel. No.:	91-2184-223324
Fax No.:	91-2184-227681
Area :	50,000 sq.ft.
Location :	Owned

DIRECTORS

(AS ON 27.09.2011)

Name :	Mr. Vinay Manoharlal Sanghvi
Designation :	Director
Address :	F-14 541/1B, Pandav Sankul, Tal Niphad, Pimpalgaon, Nashik – 422209, Maharashtra, India
Date of Birth/Age :	03.06.1970
Date of Appointment :	30.03.2001
DIN No.:	02037752
Name :	Mr. Naynesh Manoharlal Sanghvi
Designation :	Director
Address :	Shop No.9, Pandav Sankul, By – Agra Road, Tal Niphad, Pimpalgaon (B), Nashik – 422209, Maharashtra, India
Date of Birth/Age :	19.07.1964
Date of Appointment :	30.03.2001
DIN No.:	02080016

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 27.09.2011)

Names of Shareholders	No. of Shares
Vinay Manoharlal Sanghvi	37500
Naynesh Manoharlal Sanghvi	37500
Manoharlal Chotalal Sanghvi	1000
Divya Naynesh Sanghavi	10000
Parul Vinay Sanghavi	10000
Total	96000

(AS ON 30.09.2011)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Organic Fertilizers, Post Harvesting Product and Crop Health Enhancer.
Products :	Organic Fertilizers · STIM / Bio Stimulation Fertilizer · UBI Min / Phosphate Fertilizer · Recharger / Disease Resistance Fertilizer · Super Power / Cell Division Fertilizer · Supermix / Cell Wall Development Fertilizer · UBI Capsule Humic Acid 15percent/ Humic Acid Fertilizer Natural Preservatives · UBI Braz / Natural Preservative Crop Health Enhancer · UBI Gold / Bio-Stimulant · Shenda Plus / Chlorophyll Enhancer · Dipping Master / Fruit Size Enhancer · Jadugar / Crop Health Enhancer.
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers :

· Dealer and Distributors

No. of Employees :

103 (approximately)

Bankers :

· Solapur Janata Sahakari Bank Limited

Shah Chambers, Railway Lines, Telgirni Chowk, Barshi – 413401, Maharashtra, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Solapur Janta Sahakari Bank (CC) 352/1	14.174	14.049
Solapur Janta Sahakari Bank (Term Loan) 357/1	0.000	1.127
Solapur Janta Sahakari Bank (Term Loan) 361/1	0.000	0.712
Solapur Janta Sahakari Bank (Term Loan) 357/5	2.877	0.000
Solapur Janta Sahakari Bank (Term Loan) 357/6	2.397	0.000
Cholamandalam DBS Finance Limited XVFPSOL0000033 1309	0.009	0.113
Cholamandalam DBS Finance Limited XVFPSOL00000331340	0.005	0.070
Cholamandalam DBS Finance Limited XVFPSOL00000331912	0.009	0.113
HDFC Bank (Safari Loan Agree No 13306482) VMS	0.053	0.348
HSBC Business Vantage, Pune	0.000	0.000
Solapur Janta Sahakari Bank Limited, Mumbai 234	0.970	3.050
Solapur Janta Sahakari Bank Limited, Pune 58/191	0.000	0.002
Cholamandalam DBS Finance Limited XVFPSOL00000396188	0.100	0.276
Cholamandalam DBS XVFPSOL00000399543 Re. Tata 909	0.077	0.193
Cholamandalam DBS XVFPSOL00000399546 Re. Tata 407	0.067	0.169
Cholamandalam DBS XVFPSOL00000399566 Re. Tata 407	0.050	0.126
Cholamandalam DBS XVFPSOL00000436086 Eicher	0.148	0.278
Cholamandalam DBS XVFPSOL00000436757 Maxi	0.072	0.138
Cholamandalam DBS XVFPSOL00000436983 Bolero	0.101	0.188
Cholamandalam DBS XVFPSOL00000437697 Bolero	0.101	0.188
PIMCO, Pimpalgaon (B) (864)	0.062	0.000
Total	21.272	21.140
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Sanghvi V. M.	0.021	0.327
Sanghvi N. M.	0.025	0.067
Sanghvi M. C.	0.793	0.340
Mrs. Sanghvi N. M.	0.630	0.180
Sanghvi P.V.	0.102
Total	1.571	0.914

Banking Relations :	--
Auditors :
Name :	R. S. Baste and Company Chartered Accountants
Address :	4, 1st Floor, Gajanan Heights, Old Pandit Colony, Nashik – 422002, Maharashtra, India
Tel No.:	91-253-2581309/ 2578639
PAN No.:	AEJPB4764K
Associates/Subsidiaries :	· Sanghvi Agri Services Address - 7/8, Pandav Sankul College, Mumbai Agra Highway Road, Pimpalgaon Baswant, Nashik – 422209, Maharashtra, India Line of Business - Manufacturer of Organic Fertilizers, Post Harvesting Product and Crop Health Enhancer.

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Share	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
96000	Equity Share	Rs.10/- each	Rs.0.960 Million

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		0.960	0.960	0.960
2] Share Application Money		2.857	2.522	2.522
3] Reserves & Surplus		16.680	14.540	10.860
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		20.497	18.022	14.342
LOAN FUNDS
1] Secured Loans		21.272	21.140	11.973
2] Unsecured Loans		1.571	0.914	0.094
TOTAL BORROWING		22.843	22.054	12.067
DEFERRED TAX LIABILITIES		0.637	0.608	0.550
TOTAL		43.977	40.684	26.959
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.065	16.271	16.590
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.013	1.034	0.888
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.620	26.012	25.957
	Sundry Debtors	17.943	9.716	14.477
	Cash & Bank Balances	3.852	3.353	3.497
	Other Current Assets	1.022	0.285	0.000
	Loans & Advances	2.274	1.097	1.222
Total Current Assets		41.711	40.463	45.153
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	8.552	12.057	27.938
	Other Current Liabilities and Provisions	4.260	5.027	7.734
Total Current Liabilities		12.812	17.084	35.672
Net Current Assets		28.899	23.379	9.481
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		43.977	40.684	26.959

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2011	31.03.2010	31.03.2009
	TURNOVER	89.356	93.102	89.412
	TOTAL EXPENSES	84.284	86.324	87.811
	PROFIT BEFORE TAX	3.121	5.345	7.025
Less	TAX	1.055	1.665	1.789
	PROFIT AFTER TAX	2.066	3.680	5.236
	Earnings Per Share (Rs.)	21.93	38.33	33.49

Particulars	31.03.2012
Sales Turnover (approximately)	90.000

Expected Sales (2012-2013) : Rs. 100.000 Millions

The above information has been parted by (Mr. Naynesh Sanghvi – Director)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	3.49	5.74	7.86
Return on Total Assets (PBT/Total Assets}	(%)	5.49	9.42	11.38
Return on Investment (ROI) (PBT/Networth)		0.15	0.30	0.49
Debt Equity Ratio (Total Liability/Networth)		1.73	2.17	3.33
Current Ratio (Current Asset/Current Liability)		3.25	2.37	1.27

LOCAL AGENCY FURTHER INFORMATION

FORM 8:

Corporate identity number of the company	U24117MH2001PTC131439
Name of the company	SANGHVI QUALITY PRODUCTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	7/8 Pandav Sankul College Highway Road, Pimpalgaon Naswant - 422209 Maharashtra, India rajarambaste@gmail.com
This form is for	Creation of charge
Type of charge	Movable Property (not being pledge)
Particular of charge holder	Solapur Janata Sahakari Bank Limited Shah Chambers, Tel Girani Chowk, Barshi – 413401, Maharashtra, India sjsb@rediffmail.com
Nature of instrument creating charge	Machinery as per valuation report and as mentioned in second schedule to the term loan agreement.
Date of instrument Creating the charge	14.09.2010
Amount secured by the charge	Rs.3.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: 15% P.A. Terms of Repayment: Repayable In 84 Monthly Installments Margin: 25% Extent and Operation of the charge: Machinery as per valuation report and as mentioned in second schedule to the term loan agreement.
Particulars of the property charged	Machinery as per valuation report and as mentioned in second schedule to the term loan agreement.

FIXED ASSETS:

· Plot

· Factory Building

· Machinery

· Furniture

· Vehicles

· Motor Cycle

· Computer and Fax

· Lab Instruments

· Mobile

· Factory Equipments

· Office Equipments

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	YES
2]	Locality of the firm	YES
3]	Constitutions of the firm	YES
4]	Premises details	YES
5]	Type of Business	YES
6]	Line of Business	YES
7]	Promoter's background	YES
8]	No. of employees	YES
9]	Name of person contacted	YES
10]	Designation of contact person	YES
11]	Turnover of firm for last three years	YES
12]	Profitability for last three years	YES
13]	Reasons for variation <> 20%	NO
14]	Estimation for coming financial year	YES
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)	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	NO

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.52.69
UK Pound	1	Rs.85.71
Euro	1	Rs.68.14

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	NLM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		42

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.