MIRA INFORM REPORT

Report Date :

03.08.2013

IDENTIFICATION DETAILS

Name :	GANGWAL CHEMICALS PRIVATE LIMITED
Registered Office :	306, Business Classic, Chincholi Bunder, Off. S.V. Road, Malad (West), Mumbai – 400 064, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.11.1987
Com. Reg. No.:	11-045235
Capital Investment / Paid-up Capital :	Rs. 4.207 Millions
CIN No.: [Company Identification No.]	U24110MH1987PTC045235
TAN No.: [Tax Deduction & Collection Account No.]	MUMG10016G
PAN No.: [Permanent Account No.]	AAACG1463E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Pharmaceutical Intermediates Excipient and Active Pharmaceuticals Ingrediants and Also Dealing in Drugs, Pharmaceuticals and Herbal Products.
No. of Employees :	80 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 198000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having a good track record. The financial position of the company is sound. Trade relations are reported as decent. Business is active. Payments are reported to be regular and as per commitment. The company can be considered good for 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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. Prashant Shivsullo
Designation :	Accounts Head Manager
Contact No.:	91-22-28889000
Date :	02.08.2013

LOCATIONS

Registered/ Corporate Office :	306, Business Classic, Chincholi Bunder, Off. S.V. Road, Malad (West), Mumbai – 400 064, Maharashtra, India
Tel. No.:	91-22-28889000
Fax No.:	91-22-28835347
E-Mail :	accounts@gangawalchem.com sales@gangwalchem.com info@gangwalchem.com
Website :	http://www.gangwalchem.com
Location :	Owned
Factory 1 :	N 5, MIDC, Tarapur, Maharashtra, India
Area :	2000 sq. ft
Location :	Owned
Factory 2 :	4/33/34, Malad Co-Operative Society Limited, 7, Poddar Park, Malad (East), Mumbai-400097, Maharashtra, India
Tel. No.:	91-22-28836565

DIRECTORS

As on : 29.09.2012

Name :	Mr. Kailash Chandra Nemichand Jain
Designation :	Director
Address :	4/33, Malad Co-Operative Housing Society, 7, Poddar Park, Malad (East), Mumbai – 400 097, Maharashtra, India
Date of Birth/Age :	11.06.1934
Qualification :	M. Pharma
Date of Appointment:	22.11.2001
DIN No.:	00021239
Name :	Mr. Prasad Ganpatrao Anaokar
Designation :	Director
Address :	11, Alankar, 1^st Floor, 40, Lady Jamshedji Road, Mahim, Mumbai – 400 016, Maharashtra, India
Date of Birth/Age :	20.01.1954
Date of Appointment:	24.12.2009
DIN No.:	02903259

KEY EXECUTIVES

Name :	Mr. Prashant Shivsullo
Designation :	Accounts Head Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 29.09.2012

Names of Shareholders	No. of Shares
Kailashchandra N Jain	110
Anil Jain	420500
Premlata Jain	110
Total	420720

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 :	Manufacturer and Exporter of Pharmaceutical Intermediates Excipient and Active Pharmaceuticals Ingrediants and Also Dealing in Drugs, Pharmaceuticals and Herbal Products.
Products :	· Excipients · Nutaceuticals · Active Pharmaceutical Ingrediants · Amino Acids · Sweeteners · Herbal Extracts · Drugs and Pharmaceuticals
Exports :
Products :	· Pharmaceutical Excipients · Bult Drugs
Countries :	· Japan · Pakistan · Malaysia
Imports :
Products :	Raw Materials
Countries :	· Europe · USA · Japan · China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	End Users
No. of Employees :	80 (Approximately)
Bankers :	· Citibank N.A. Trent House, 2^nd Floor, G Block, Plot No. C 60, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India · State Bank of India, Industrial Finance Branch, Malad (East), Mumbai – 400 064, Maharashtra, India
Facilities :	Cash and Credit – Rs. 120.000 Millions (Form State Bank of India)

Auditors :
Name :	Sunil M Jain and Associates Chartered Accountants
Address :	Shop No. 3, Regency, Datta Mandir Road, Malad (East), Mumbai – 400 097, Maharashtra, India
Tel. No.:	91-22-28891689
E-Mail :	smjain08@yahoo.co.in
PAN No.:	AABPJ3708M
Associates / Subsidaries :	· S. A. Pharmachem Private Limited, India · Chinay Logistics Private Limited, India · Sadguru Marketing

CAPITAL STRUCTURE

As on : 29.09.2012

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
420720	Equity Shares	Rs. 10/- each	Rs. 4.207 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	4.207	4.207
(b) Reserves & Surplus	45.506	37.899
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	49.713	42.106
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	133.524	124.093
(c) Other current liabilities	1.064	3.179
(d) Short-term provisions	14.348	10.753
Total Current Liabilities (4)	148.936	138.025
TOTAL	198.649	180.131
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	38.418	36.149
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	38.418	36.149
(2) Current assets
(a) Current investments	0.006	0.006
(b) Inventories	0.000	0.000
(c) Trade receivables	108.677	108.509
(d) Cash and cash equivalents	3.692	3.410
(e) Short-term loans and advances	47.856	32.057
(f) Other current assets	0.000	0.000
Total Current Assets	160.231	143.982
TOTAL	198.649	180.131

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.207
2] Share Application Money		0.000
3] Reserves & Surplus		31.233
4] (Accumulated Losses)		0.000
NETWORTH		35.440
LOAN FUNDS
1] Secured Loans		11.755
2] Unsecured Loans		17.366
TOTAL BORROWING		29.121
DEFERRED TAX LIABILITIES		0.097
TOTAL		64.658
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		39.842
Capital work-in-progress		0.000
INVESTMENT		0.006
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	18.506
	Sundry Debtors	38.811
	Cash & Bank Balances	3.453
	Other Current Assets	5.554
	Loans & Advances	19.788
Total Current Assets		86.112
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	29.170
	Other Current Liabilities	25.072
	Provisions	7.072
Total Current Liabilities		61.314
Net Current Assets		24.798
MISCELLANEOUS EXPENSES		0.012
TOTAL		64.658

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income/ Gross Income	305.091	277.184	45.947
		Other Income	13.238	26.348	NA
		TOTAL (A)	318.329	303.532	NA
Less	EXPENSES
		Purchases	236.581	214.462
		Employees Benefits	19.594	32.553
		Other Expenses	37.516	33.014
		TOTAL (B)	293.691	280.029	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		24.638	23.503
Less	FINANCIAL EXPENSES (D)		9.285	9.097
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.353	14.406	15.164
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.846	4.222	4.221
	PROFIT BEFORE TAX (E-F) (G)		11.507	10.184	10.943
Less	TAX (H)		3.900	3.518	4.221
	PROFIT AFTER TAX (G-H) (I)		7.607	6.666	6.722
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		37.899	31.233	24.511
	BALANCE CARRIED TO THE B/S		45.368	37.899	31.233
	EARNINGS IN FOREIGN CURRENCY
		Exports of goods at FOB Value	67.441	3.218	17.644
		Commission	4.764	1.712	1.948
		Rent	0.453	0.000	0.000
		Car Hire Charge	0.381	0.000	0.000
	TOTAL EARNINGS		73.039	4.930	19.592
	IMPORTS
		CIF Value of Trading Goods	127.028	127.109	114.012
	TOTAL IMPORTS		127.028	127.109	114.012
	Earnings Per Share (Rs.)		18.08	15.84	15.98

Particulars	31.03.2013
Sales Turnover (Approximately)	465.000

Expected Sales (2013-2014) : Rs. 650.000 Millions

The above information has been parted by Mr. Prashant Shivsullo

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.39	2.20	NA
Net Profit Margin (PBT/Sales)	(%)	3.77	3.67	NA
Return on Total Assets (PBT/Total Assets}	(%)	5.79	5.65	8.69
Return on Investment (ROI) (PBT/Networth)		0.23	0.24	0.31
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.82
Current Ratio (Current Asset/Current Liability)		1.08	1.04	1.40

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	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	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)	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 25, Diamond Plaza, Laxminarayan Shopping Centre, Poddar Park, Malad (East), Mumbai – 400 097, Maharashtra, India to the present address w.e.f. 02.07.2012

BANKERS CHARGES REPORT AS PER REGISTRY :

Corporate identity number of the company	U24110MH1990PTC045235
Name of the company	GANGWAL CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	306, Business Calssic, Chincholi Bunder, Off S.V. Road, Malad (West), Mumbai – 400 064, Maharashtra, India Email: accounts@gangwalchem.com
This form is for	Modification of charge
Charge identification number of the charge to be modified	10053228
Type of charge	· Book Debts · Movable Property (not being pledge) · Floating Charge · Others (Stocks, P and M, Off, Equipments, Furniture and Fixture etc.)
Particular of charge holder	Citibank N.A. Trent House, 2^nd Floor, G Block, Plot No. C 60, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India Email: ganesh.poojari@citi.com
Nature of instrument creating charge	Deed of modification for Goods Security Agreement.
Date of instrument Creating the charge	21.11.2012
Amount secured by the charge	Rs.90.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest : As per sanction terms and as may be decided by the bank and company mutually from time to time. Terms of Repayment : Repayable on demand, annually renewable. Margin : Borrower shall at all times during the continuance of the security maintain a sufficient amount to provide the margin of security as may from time to time advised by the bank. Extent and Operation of the charge : First exclusive charge on the current assets (including stocks and book debts) and movable fixed assets (including plant and machinery, office equipment, furniture and fixtures etc.) of the borrower both present and future in favour of Citibank N.A for the repayment of all monies in respect of the credit facility, including outstanding balance and also all interest, costs, charges and expenses.
Short particulars of the property charged	Current assets (including stocks and book debts) and movable fixed assets (including plant and machinery, office equipment, furniture and fixtures etc.) of the borrower both present and future.
Date of latest modification prior to the present modification	21.11.2012
Particulars of the present modification	By this modification the limit is enhanced to Rs. 90.000 Millions and the charge is secured by First exclusive charge on the current assets (including stocks and book debts) and movable fixed assets (including plant and machinery, office equipment, furniture and fixtures etc.) of the borrower both present and future.

FIXED ASSETS

· Land

· Factory Building

· Computers

· Furniture and Fixtures

· Motor Car

· Air Conditioner

· Aqua Guard

· Card Scanner

· Office Equipment

· Telephone System

· Time Punching Machine

· Safe Godrej

· Xerox WC 5016

· Office Premises

· Plant and Machinery

· Air Conditioner

· Factory Equipment

· Laboratory Equipment

· Production

· Q.C.

· Research and Development

· Machineries

· Electrical Installations

· Computer Factory

· R and D Lab Equipment

· Furniture (Interior Work)

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. 60.80
UK Pound	1	Rs. 91.95
Euro	1	Rs. 80.37

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.