MIRA INFORM REPORT

Report Date :

02.04.2013

IDENTIFICATION DETAILS

Name :	GUJARAT ION EXCHANGE AND CHEMICALS LIMITED
Registered Office :	T-14, Balaji Centre Drive-In Road, Opposite Gurukul, Memnagar, Ahmedabad – 380 052, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.04.1996
Com. Reg. No.:	04-029246
Capital Investment / Paid-up Capital :	Rs.0.500 million
CIN No.: [Company Identification No.]	U24231GJ1996PLC029246
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of water and waste water treatment plant with turnkey supply and solution and consultancy on projects.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 60000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears slight dip in sales turnover during the year 2011-2012. However, general financial position seems to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

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/ Head Office :	T-14, Balaji Centre, Drive-In Road, Opposite Gurukul, Memnagar, Ahmedabad – 380 052, Gujarat, India
Tel. No.:	91-79-40051106/ 65426658/ 27411006
Fax No.:	91-79-27411006
E-Mail :	trshah2008@yahoo.co.in info@giecl.com sales@giecl.com giecl@yahoo.com
Website :	http://www.giecl.com http://www.mineralwaterplant.com
Factory :	Plot No.34, NIDC, Lambha, Narol - Aslali Road, NH-8, Ahmedabad, Gujarat, India

DIRECTORS

As on 29.09.2012

Name :	Mr. Vyomesh Arvindbhai Patel
Designation :	Whole Time Director
Address :	11, Vaibhav Bunglows-2, Ghatlodia, Ahmedabad – 380 061, Gujarat, India
Date of Birth/Age :	14.06.1977
Date of Appointment :	25.08.1997
DIN No.:	00330694
Name :	Ms. Sejalben Vyomeshbhai Patel
Designation :	Whole Time Director
Address :	11, Vaibhav Bunglows-2, Ghatlodia, Ahmedabad – 380 061, Gujarat, India
Date of Birth/Age :	06.12.1978
Date of Appointment :	01.04.2001
DIN No.:	00330753
Name :	Ms. Shardaben Arvindbhai Patel
Designation :	Director
Address :	11, Vaibhav Bunglows-2, Ghatlodia, Ahmedabad – 380 061, Gujarat, India
Date of Birth/Age :	08.05.1948
Date of Appointment :	01.10.2007
DIN No.:	02058238

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Vyomesh Arvindbhai Patel	46900
Sejalben Vyomeshbhai Patel	100
Devendrabhai G. Dave	100
Jitendrabhai Baldevprasad Vyas	100
Shardaben Arvindbhai Patel	2500
Bhartiben Gunvantlal Dave	100
Girishbhai Chimanlal Gor	100
Kishorbhai Dahyalal Panchal	100
Total	50000

As on 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of water and waste water treatment plant with
turnkey supply and solution and consultancy on projects.

Products/ Services :

Item Code No. (ITC Code)	8421 21 90
Product Description	R.O. Plant (Water Treatment Plant)

· Brackish Water Plant (R.O. System)

· Containerise brackish water plant (R.O. System)

· RO System for Pharmaceutical

· Sea Water Plant

· Mineral Water Process Details

· Minaral Water Automatic Turnkey Project

· Automatic Turnkey Mineral water Project

· Mineral Water Plant

· Turnkey Mineral Water Project

· Vitamin Water and Juice Project

· Filling Machine for Water, Oil, Soda

· 5 Gallon Water Project - 20 Liters

· Automatic Pet Blow Moulding Machine

· Semi-Automatic Pet Blow Moulding Machine

· Injection Moulding Machine for Preform and Cap

· Filtration System

· Spring Water Filtration

· Pouch Packing Machine For Water and Juice

· Micron Cartridge Filtration

· Automatic Mineral Water Project 2011

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	2011-12
Licensed Capacity	N.A.
Installed Capacity (As assessed by the management)	N.A.
Actual Production
R.O. Plant	12

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· HDFC Bank Limited

· Oriental Bank of Commerce, C.G. Road Branch

· Oriental Bank of Commerce, Drive-In Road Branch

· Oriental Bank of Commerce, Ashram Road Branch

· State Bank of India, Mumbai Branch

· Bank of Baroda, Kali Branch

Facilities :

Secured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
HDFC Bank – Sonata Car Loan (Secured against hypothecation of Motor Car)	0.944	0.207
SHORT TERM BORROWINGS
HDFC – Hyundai I-10 Car Loan (Secured against hypothecation of Motor Car)	0.072	0.000
Total	1.016	0.207

Banking Relations :	--
Auditors :
Name :	Tushar R. Shah and Associates Chartered Accountants
Address :	8-G, Vardan Tower, Near Vimal House, Navrangpura, Ahmedabad – 380 014, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AJHPS2590R
Enterprises over which key management personnel exercise significant influence :	Usha Beverages

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.10/- each	Rs.0.500 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		14.380	12.041	9.413
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		14.880	12.541	9.913
LOAN FUNDS
1] Secured Loans		1.016	0.207	2.069
2] Unsecured Loans		0.201	0.201	0.201
TOTAL BORROWING		1.217	0.408	2.270
DEFERRED TAX LIABILITIES		0.296	0.230	0.148
TOTAL		16.393	13.179	12.331
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.405	4.614	4.739
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.007	0.007	0.007
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.488	1.591	0.998
	Sundry Debtors	2.296	2.010	2.094
	Cash & Bank Balances	10.630	10.206	9.294
	Other Current Assets	1.584	1.240	0.000
	Loans, Advances & Deposits	3.925	0.892	3.083
Total Current Assets		23.923	15.939	15.469
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.363	1.628	1.788
	Other Current Liabilities	10.577	5.558	5.683
	Provisions	0.002	0.195	0.413
Total Current Liabilities		12.942	7.381	7.884
Net Current Assets		10.981	8.558	7.585
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		16.393	13.179	12.331

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	28.647	41.716	14.872
		Other Income	0.261	0.494	0.784
		TOTAL (A)	28.908	42.210	15.656
Less	EXPENSES
		Cost of Material Consumed	10.788	9.311	13.685
		Purchases of Stock-in-trade	7.102	22.011
		Employee Benefit Expenses	3.206	2.773
		Other Expenses	3.859	3.809
		TOTAL (B)	24.955	37.904	13.685
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.953	4.306	1.971
Less	FINANCIAL EXPENSES (D)		0.076	0.075	0.057
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.877	4.231	1.914
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.398	0.364	0.309
	PROFIT BEFORE TAX (E-F) (G)		3.479	3.867	1.605
Less	TAX (H)		1.140	1.239	0.502
	PROFIT AFTER TAX (G-H) (I)		2.339	2.628	1.103
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.041	9.413	8.310
	BALANCE CARRIED TO THE B/S		NA	12.041	9.413
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	18.748	27.777	10.373
	TOTAL EARNINGS		18.748	27.777	10.373
	Earnings Per Share (Rs.)		46.79	52.57	22.07

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	8.09	6.23	7.05
Net Profit Margin (PBT/Sales)	(%)	12.14	9.27	10.79
Return on Total Assets (PBT/Total Assets}	(%)	11.86	18.81	7.94
Return on Investment (ROI) (PBT/Networth)		0.23	0.31	0.16
Debt Equity Ratio (Total Debt/Networth)		0.08	0.03	0.23
Current Ratio (Current Asset/Current Liability)		1.85	2.16	1.96

LOCAL AGENCY FURTHER INFORMATION

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	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	No

Unsecured Loans	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
SHORT TERM BORROWINGS
Sudhaben A. Patel	0.201	0.201
Total	0.201	0.201

FIXED ASSETS:

· Air Conditioner

· Car

· Computer

· Furniture

· Machinery

· Refrigerator

· Scooter

· Fans

· Factory Equipment

· Mobile

· Building

WEBSITE DETAILS:

PROFILE:

Subject has been established in 1996 at Ahmedabad, Gujarat, India to market specially Water and Waste water Treatment plants with increasing demands in Indian and International Market. Subject believes in innovation and cost effective solution on customer requirements with quality. Subject has very strong after Sales and Service back up with alliance with UPS and DHL services for Fast and Immediate Delivery of Spares at destination.

Subject is Fast Growing Company in Water and Waste water Treatment field. They are Manufacturers and Exporter of water Treatment plants, Mineral Water Plant, R.O. Plant, Reverse Osmosis System, Sea Water desalination Plant, Desalination Plant, Bottled Water Plant, Filtration System, Softening Plant, Demineralization Plant.

Subject is also providing the solution for the allied product range with water treatment system such as Bottle Filling machine, Bottle Blow Moulding machine, Shrink Wrapping machine for Group packing, Batch and Date coding Machine, Conveyors, Air Compressor, Labeling Machine and many more as per customer requirements.

Subject is also providing the solution and can undertake the project as consultant for Designing, Erection and Commissioning with Trial Production for Turnkey Mineral Water Project.

Subject has already installed more than 35 installations around the world and have very wide experience in Bottled water project and industry.

Subject has international Alliance in Israel - Palestine, Sri Lanka, Dubai - UAE, Zambia, Mauritania, Mauritius for its Sales supports and Services and Technical Know How.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No 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] 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.54.39
UK Pound	1	Rs.82.32
Euro	1	Rs.69.54

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.