MIRA INFORM REPORT

Report Date :

10.08.2013

IDENTIFICATION DETAILS

Name :	SIGNET CHEMICAL CORPORATION PRIVATE LIMITED
Registered Office :	A-801, Crescenzo C/ 38 – 39, G – Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.05.2007
Com. Reg. No.:	11-170478
Capital Investment / Paid-up Capital :	Rs. 17.500 Millions
CIN No.: [Company Identification No.]	u24100mh2007ptc170478
TAN No.: [Tax Deduction & Collection Account No.]	MUMS55855C
PAN No.: [Permanent Account No.]	AAKCS7910A
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of trading and marketing of excipients and other chemicals.
No. of Employees :	70 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (64)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 11136000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having good track record. Financially company has performed well. Liquidity position of the company is good. Trade relation are reported to be fair. Business is active. Payment are reported to be regular and as per commitment. The company can be considered normal for business dealing 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 – 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.

LOCATIONS

Registered Office :	A-801, Crescenzo C/ 38 – 39, G – Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India
Tel. No.:	91-22-61462725
Fax No.:	91-22-61462726
E-Mail :	ihsanghani@signetchem.com nsgandhi@signetchem.com sales@signetchem.com hpshah@signetchem.com bhshah@signetchem.com pdshah@signetchem.com
Website :	http://www.signetchem.com
Warehouse :	AE – AF, Shree Rajlaxmi Commercial Complex, Kalher Village, District Thane, Bhiwandi – 421302, Maharashtra, India
E-Mail :	warehouse@signetchem.com

DIRECTORS

As on 27.09.2012

Name :	Mr. Harish Pravinchandra Shah
Designation :	Managing Director
Address :	9, Retreat, Saraswat Colony, Santacruz (West), Mumbai – 400054, Maharashtra, India
Date of Birth/Age :	28.10.1956
Qualification :	B.E.
Date of Appointment :	01.05.2007
DIN No.:	01282117
PAN No.:	AAIPS6495H
Name :	Mrs. Bina Harish Shah
Designation :	Whole-time Director
Address :	9, Retreat, Saraswat Colony, Santacruz (West), Mumbai – 400054, Maharashtra, India
Date of Birth/Age :	21.10.1959
Qualification :	B.E.
Date of Appointment :	01.05.2007
DIN No.:	01282103
PAN No.:	AAQPS2050N
Name :	Mr. Pravinchand Dhirajlal Shah
Designation :	Whole-time Director
Address :	9, Retreat, Saraswat Colony, Santacruz (West), Mumbai – 400054, Maharashtra, India
Date of Birth/Age :	18.08.1928
Date of Appointment :	01.05.2007
DIN No.:	01282843
PAN No.:	AAJPS3015L

MAJOR SHAREHOLDERS

As on 27.09.2012

Names of Shareholders	No. of Shares
Harish Pravinchandra Shah	1000000
Bina Harish Shah	650000
Amira H. Shah	25000
Anushka H. Shah Minor	25000
P.D. Shah	25000
Nalini P. Shah	25000
Total	1750000

Equity Share Break up (Percentage of Total Equity)

As on 27.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of trading and marketing of excipients and other chemicals.

Products :

Item Code No. (ITC Code)	Product Description
39123919	MCC
29054300	Mannitol
39123912	HPMC
17021110	Lactose Monohydrate USP
28352500	Dicalcium Phosphate Anhydrous
29054300	Mannitol USP
39059990	Povidone USP

GENERAL INFORMATION

No. of Employees :	70 (Approximately)
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	Kiran Parikh and Company Chartered Accountant
Address :	A – 34, Navyug Niwas, 167, Lamington Road, Mumbai – 400 007
PAN No.:	AAAFK1297M
Enterprises over which Key Managerial Personnel are able to exercise significant influence :	Signet Chemical Corporation Nalpro Associates Conmech Associates

CAPITAL STRUCTURE

As on 27.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1750000	Equity Shares	Rs. 10/- each	Rs. 17.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	17.500	17.500
(b) Reserves & Surplus	2766.598	1885.769
(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)	2784.098	1903.269
(3) Non-Current Liabilities
(a) long-term borrowings	247.132	208.796
(b) Deferred tax liabilities (Net)	6.903	(0.119)
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	254.035	208.677
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	104.714	125.417
(c) Other current liabilities	18.901	13.627
(d) Short-term provisions	21.842	14.979
Total Current Liabilities (4)	145.457	154.023
TOTAL	3183.590	2265.969
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	491.322	457.045
(ii) Intangible Assets	2.078	0.309
(iii) Capital work-in-progress	0.000	34.736
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	219.183	69.840
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	17.916	12.703
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	730.499	574.633
(2) Current assets
(a) Current investments	290.785	82.991
(b) Inventories	285.375	274.345
(c) Trade receivables	1504.319	1153.747
(d) Cash and cash equivalents	53.932	7.180
(e) Short-term loans and advances	318.680	173.073
(f) Other current assets	0.000	0.000
Total Current Assets	2453.091	1691.336
TOTAL	3183.590	2265.969

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		17.500
2] Share Application Money		0.000
3] Reserves & Surplus		1155.969
4] (Accumulated Losses)		0.000
NETWORTH		1173.469
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		502.037
TOTAL BORROWING		502.037
DEFERRED TAX LIABILITIES		0.017
TOTAL		1675.523
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		432.478
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	193.607
	Sundry Debtors	1027.319
	Cash & Bank Balances	38.031
	Other Current Assets	169.183
	Loans & Advances	3.634
Total Current Assets		1431.774
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	138.938
	Other Current Liabilities	11.299
	Provisions	38.491
Total Current Liabilities		188.728
Net Current Assets		1243.046
MISCELLANEOUS EXPENSES		0.000
TOTAL		1675.523

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income			3428.371
		Other Income			5.317
		TOTAL (A)	5297.410	4147.460	3433.688
Less	EXPENSES
		Cost of Sales			2273.510
		Personnel Expenses			78.917
		Administrative Expenses			75.267
		Preliminary Expenses			0.000
		TOTAL (B)	3919.250	2992.860	2427.694
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1378.160	1154.600	1005.994
Less	FINANCIAL EXPENSES (D)		28.820	34.060	44.411
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1349.340	1120.540	961.583
Less/ Add	DEPRECIATION/ AMORTISATION (F)		33.600	2.100	1.995
	PROFIT BEFORE TAX (E-F) (G)		1315.740	1118.440	959.588
Less	TAX (H)		427.800	382.490	330.297
	PROFIT AFTER TAX (G-H) (I)		887.860	735.940	629.291
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1710.760	1055.970	531.797
Less	APPROPRIATIONS
		Transfer to General Reserve	90.000	75.000	100.000
		Provision for dividend	6.120	5.250	4.375
		Tax on Provision Dividend	1.040	0.890	0.744
	BALANCE CARRIED TO THE B/S		2501.460	1710.760	1055.970
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings			5.471
		Indenting Commission Recd.			3.188
	TOTAL EARNINGS		25.600	16.207	8.659
	IMPORTS
		Raw Materials	NA	2315.550	1754.333
	TOTAL IMPORTS		NA	2315.550	1754.333
	Earnings Per Share (Rs.)		507.00	421.00	359.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	16.76	17.74	18.33
Net Profit Margin (PBT/Sales)	(%)	NA	NA	27.99
Return on Total Assets (PBT/Total Assets}	(%)	53.25	65.63	51.47
Return on Investment (ROI) (PBT/Networth)		0.47	0.59	0.82
Debt Equity Ratio (Total Debt /Networth)		0.09	0.11	0.43
Current Ratio (Current Asset/Current Liability)		16.86	10.98	7.59

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

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Loans and advances from related parties	247.132	208.796
Total	247.132	208.796

NOTE: NO CHARGES EXIST FOR COMPANY

FIXED ASSETS:

· Furniture and Fixtures

· Office Equipment and Appliance

· Motor Car

· Computers and Software

· Office Premises

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. 61.11
UK Pound	1	Rs. 94.77
Euro	1	Rs. 17.77

INFORMATION DETAILS

Report Prepared by :

VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		64

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.