MIRA INFORM REPORT

Report Date :

26.04.2013

IDENTIFICATION DETAILS

Name :	MONACHEM ADDITIVES PRIVATE LIMITED
Registered Office :	401/A, 4th Floor, Synergy Square, Krishna Industrial Estate, Opposite BIDC, Gorwa, Vadodara – 390016, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	25.10.2007
Com. Reg. No.:	04-052058
Capital Investment / Paid-up Capital :	Rs.12.600 Millions
CIN No.: [Company Identification No.]	U24100GJ2007PTC052058
IEC No.:	3407004834
TAN No.: [Tax Deduction & Collection Account No.]	BRDM02948B
PAN No.: [Permanent Account No.]	AAFCM2739M
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Polymer Additives and Speciality Chemicals.
No. of Employees :	40 (Approximately)

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 140000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There appears some dip in the profitability of the company during current year. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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.

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 :	Mr. Hiren Patel
Designation :	Accounts Department
Contact No.:	91-265-3028900
Date :	24.04.2013

LOCATIONS

Registered Office/ Head Office :	401/A, 4th Floor, Synergy Square, Krishna Industrial Estate, Opposite BIDC, Gorwa, Vadodara – 390016, Gujarat, India
Tel. No.:	91-265-3028999/ 3028900
Mobile No.:	91-9376236949 (Mr. Shamik Shah)
Fax No.:	91-265-3028990
E-Mail :	anant_shah@monachem.com shamil_shah@monachem.com dilip_shah@monachem.com sales@monachem.com hiren_patel@monachem.com
Website :	http://www.monachem.com
Area :	2000 sq. ft.
Location :	Owned

DIRECTORS

As on: 29.09.2012

Name :	Mr. Dilip Govindlal Shah
Designation :	Director
Address :	9/10, Sarswati Society, Behind Sevashray Society, Vasna Road, Vadodara – 390015, Gujarat, India
Date of Birth/Age :	23.01.1950
Qualification :	BSC
Date of Appointment :	25.10.2007
DIN No.:	01843830
Name :	Mr. Shamik Dilipkumar Shah
Designation :	Director
Address :	9/10, Sarswati Society, Behind Sevashray Society, Vasna Road, Vadodara – 390015, Gujarat, India
Date of Birth/Age :	24.07.1978
Qualification :	BE, Petro Chemical, MBA from USA
Date of Appointment :	25.10.2007
DIN No.:	01843803

KEY EXECUTIVES

Name :	Mr. Hiren Patel
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Dilip G. Shah	1105000
Shamik D. Shah	155000
Total	1260000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader and Importer of Polymer Additives and Speciality Chemicals

Products :

Production Description	ITC Code
DE 83 R Speciality Chemical	2903 69 90
Lithopone DS 30 %	3206 42 00
Lowlite 77	2933 39 90

· Adhesives

· Coated Fabrics

· Coatings

· Composites

· Elastomers

· Inks

· Lubricants

· Optical Lens

· Petrochemical

· Plastics (Masterbatch and Compounds)

· Polyurethane

· PVC Conveyor Belts

· PVC Leather Cloth

· Refinery

· Rubber

· Wire and Cable

· Adsorbent

· Anti-oxidants

· Catalysts

· Catalyst Bed Supports

· Clarifying Agent

Imports :

Products :

Finished Goods

Countries :

· USA

· Switzerland

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :

Kraton Polymers Japan Limited

Customers :

End Users

· KLJ Polymers and Chemical Limited

· Kalpana Industries Limited

No. of Employees :

40 (Approximately)

Bankers :

· HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India

· HDFC Bank Limited, Alkapuri, Vadodara – 390007, Gujarat, India

· ICICI Bank Limited

· Kotak Mahindra Bank Limited

· Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
HDFC Bank-I-1O Car Loan *	0.000	0.098
HDFC Bank-Skoda Laura *	0.000	0.216
HDFC Bank-Maruti Swift Dzire *	0.218	0.000
HDFC Bank-Maruti Swift *	0.028	0.185
SE Investments Private Limited	3.127	0.000
HDFC Bank Limited (Secured against Property of Director, Personal Guarantee of the Director and Charge on Stock and Debtors)	46.279	35.950
Total	49.652	36.449

Note:

* Loan is repayable over a period of 3 years

SE Investments : Secured by Fixed Deposit and Personal Guarantee of the Director. The Loan of Rs.19.000 Millions is repayable in 24 monthly installment

Banking Relations :	--
Auditors :
Name :	Lalpuria Patel and Associates Chartered Accountants
Address :	318/ 319/ 320, Saffron Tower, Opposite Camp’s Corner, Fatehgunj, Vadodara – 390002, Gujarat, India
Tel. No.:	91-265-2786759/ 2794070
Fax No.:	91-265-2794070
E-Mail :	iqabaroda@gmail.com
PAN.:	AAAFL5406B

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1260000	Equity Shares	Rs.10/- each	Rs.12.600 Millions

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		12.600	12.600	12.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		24.680	25.033	11.355
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		37.280	37.633	23.955
LOAN FUNDS
1] Secured Loans		49.652	36.449	32.191
2] Unsecured Loans		14.737	5.000	(2.178)
TOTAL BORROWING		64.389	41.449	30.013
DEFERRED TAX LIABILITIES		0.197	0.184	0.207
TOTAL		101.866	79.266	54.175
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.032	2.337	8.909
Capital work-in-progress		0.271	9.242	0.000
INVESTMENT		7.600	0.000	0.000
DEFERREX TAX ASSETS		0.017	0.034	0.051
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	66.271	33.058	33.573
	Sundry Debtors	46.894	50.254	56.519
	Cash & Bank Balances	1.522	1.486	0.846
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.174	13.129	6.193
Total Current Assets		119.861	97.927	97.131
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.494	17.067	44.899
	Other Current Liabilities	16.707	5.631	0.000
	Provisions	2.714	7.576	7.017
Total Current Liabilities		43.915	30.274	51.916
Net Current Assets		75.946	67.653	45.215
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		101.866	79.266	54.175

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	468.097	413.097	292.478
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	463.856 (Including Financial Expenses)	391.586 (Including Financial Expenses)	264.644
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)				27.834
Less	FINANCIAL EXPENSES (D)				4.933
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.241	21.511	22.901
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.658	0.728	0.312
	PROFIT BEFORE TAX (E-F) (G)		2.583	20.783	22.589
Less	TAX (H)		0.812	7.105	7.499
	PROFIT AFTER TAX (G-H) (I)		1.771	13.678	15.090
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		25.033	11.355	26.445
Less	APPROPRIATIONS
		Interim Dividend	1.827	0.000	0.000
		Dividend Distribution Tax	0.296	0.000	0.000
	BALANCE CARRIED TO THE B/S		24.681	25.033	11.355
	EARNINGS IN FOREIGN CURRENCY		11.302	5.908	4.098
	TOTAL IMPORTS		NA	156.615	76.829
	Earnings Per Share (Rs.)		1.41	10.86	11.98

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.38	3.31	5.16
Return on Total Assets (PBT/Total Assets}	(%)	1.87	20.73	21.30
Return on Investment (ROI) (PBT/Networth)		0.07	0.55	0.94
Debt Equity Ratio (Total Debt/Networth)		1.73	1.10	1.25
Current Ratio (Current Asset/Current Liability)		2.73	3.23	1.87

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors	24.494	17.067	44.899
Total	24.494	17.067	44.899

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%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
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	No

Note:

The Registered Office of the company has been shifted from 604, A, Galav Chamber, Near Sardar Patel Statue, Sayajigunj, Vadodara – 390005, Gujarat, India to the present address w.e.f. 01.03.2011

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Dhanlaxmi Bank	1.015	0.000
Kotak Mahindra Bank Limited	1.528	0.000
Religare Investments	2.407	0.000
TATA Capital Limited	1.345	0.000
Dilip G Shah (Loan I)	1.442	0.000
Dilip G Shah (Loan 2)	7.000	5.000
Total	14.737	5.000

Note:

Borrowing from related parties: There are no terms and conditions relating to interest, repayable etc.

TRADE REFERENCE

· Kraton Polymers Japan Limited

· KLJ Polymers and Chemical Limited

· Kalpana Industries Limited

FIXES ASSETS:

• Air Conditioner
• Computer Lan System
• Computer Printer
• Furniture
• Office Equipment
• Hyundai i-10
• Skoda Laura
• Bicycle
• Maruti Swift
• Computer Software
• Office Building
• Office Building Under Construction
• Land

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 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.54.17
UK Pound	1	Rs.82.99
Euro	1	Rs.70.62

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	VRN

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	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.