MIRA INFORM REPORT

Report Date :

21.08.2013

IDENTIFICATION DETAILS

Name :	INDIAN OXALATE LIMITED
Formerly Known As :	INDIAN OXALATE PRIVATE LIMITED
Registered Office :	257, Shahid Bhagat Singh Road, Welcome House, Near GPO, Fort, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	23.01.1989
Com. Reg. No.:	11-050428
Capital Investment / Paid-up Capital :	Rs. 48.144 Millions
CIN No.: [Company Identification No.]	U74999MH1989PLC050428
TAN No.: [Tax Deduction & Collection Account No.]	MUMI05091C
PAN No.: [Permanent Account No.]	AAACI3109F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Distributor of Oxalic Acid and Diethyl Oxalate.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 499000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Profitability of the company is under pressure. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some caution.

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 :	257, Shahid Bhagat Singh Road, Welcome House, Near G.P.O., Fort, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22622276/ 22610140
Fax No.:	91-22-22625759/ 22625760
E-Mail :	srdrugs@bom7.vsnl.net.in sales@indianoxalate.com
Website :	www.indianoxalate.com
Corporate Office :	408/409, Mint Chambers, 45/47/49, Mint Road, Near G.P.O., Fort, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22626209/ 22626210
Factory :	M.I.D.C., Plot No. B-2/B-3, Lote Parshuram, Taluka Khed, Ratnagiri – 415722, Maharashtra, India

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Rukunuddin Ebrahim Tambe
Designation :	Managing Director
Address :	Sagar Classic, Building No. 64, 2/203, Mirza Galib Road, Mumbai – 400008, Maharashtra, India
Date of Birth/Age :	01.02.1945
Date of Appointment :	23.01.1989
DIN No.:	00178870
Name :	Mrs. Suraiya Rukunuddin Tambe
Designation :	Whole-time director
Address :	Sagar Classic, Building No. 64, 2/203, Mirza Galib Road, Mumbai – 400008, Maharashtra, India
Date of Birth/Age :	01.06.1956
Date of Appointment :	23.01.1989
DIN No.:	00178852
Name :	Mr. Altaf Rukunuddin Tambe
Designation :	Whole-time director
Address :	Sagar Classic, Building No. 64, 2/203, Mirza Galib Road, Mumbai – 400008, Maharashtra, India
Date of Birth/Age :	11.07.1978
Date of Appointment :	30.06.2008
DIN No.:	00297196

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Rukunuddin Ebrahim Tambe	1969000
Suraiya Rukunuddin Tambe	1030000
Risk Capital and Technology Finance Corporation Limited, India	100000
Industrial Development Bank of India	360000
Industrial Finance Corporation of India	170000
The Industrial Credit and Investment Corporation of India, India	170000
Altaf Rukunuddin Tambe	350000
Shabeena Rukunuddin Tambe	330000
Sameena Rukunuddin Tambe	335400
Total	4814400

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Public financial companies	16.62
Directors or relatives of directors	83.38
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Distributor of Oxalic Acid and Diethyl Oxalate.

Products/ Services :

ITC Code No.	Product Descriptions
2917 11 10	Oxalic Acid
2834 10 10	Sodium Nitrite

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Oxalic Acid	M.T.	8000	7200	8137.500

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Barclays Bank Plc

· HDFC Bank Limited

· Bank of India, Mumbai Corp. Banking Branch, Bombay – 400023, Maharashtra, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
SHORT TERM BORROWINGS
Term Loans	0.000	1.500
Vehicles Loans	1.611	3.291
Total	1.611	4.791
SHORT TERM BORROWINGS Car loan from banks is secured against the Car.

Banking Relations :	--
Financial Institution :	L and T Finance Limited, L and T House, Ballard Estate, Mumbai – 400001, Maharashtra, India
Auditors :
Name :	P M Turakhia and Associates Chartered Accountants
Address :	102, Osia Friendship, Gaothan Lane No. 4, Opposite Ram Mandir, Off J.P. Road, Mumbai – 400058, Maharashtra, India
Tel. No.:	91-22-26280705/ 30948879/ 32600853
Fax No.:	91-22-56797609
E-Mail :	pmtax@directi.com
Income-tax PAN of auditor or auditor's firm :	AAUPB1584P
Company where control exists :	· S.R. Agroventure India Limited · Shreekul Agrochem Private Limited · Bharat Logistics · S.R. Drugs Private Limited · Indian Bulk Drugs Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5900000	Equity Shares	Rs. 10/- each	Rs. 59.000 Millions
100000	Preference Shares	Rs. 10/- each	Rs. 1.000 Million
	Total		Rs. 60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4814400	Equity Shares	Rs. 10/- each	Rs. 48.144 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	48.144	48.144
(b) Reserves & Surplus	70.232	72.406
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	6.400	6.400
Total Shareholders’ Funds (1) + (2)	124.776	126.950
(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	2.913	2.923
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	2.913	2.923
(4) Current Liabilities
(a) Short term borrowings	10.734	10.213
(b) Trade payables	55.690	27.938
(c) Other current liabilities	29.712	21.199
(d) Short-term provisions	4.140	3.382
Total Current Liabilities (4)	100.276	62.732
TOTAL	227.965	192.605
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	86.007	93.593
(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)	1.815	2.363
(d) Long-term Loan and Advances	2.894	2.808
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	90.716	98.764
(2) Current assets
(a) Current investments	0.011	0.011
(b) Inventories	14.977	11.788
(c) Trade receivables	11.000	3.657
(d) Cash and cash equivalents	105.704	71.615
(e) Short-term loans and advances	4.243	4.283
(f) Other current assets	3.314	2.487
Total Current Assets	139.249	93.841
TOTAL	227.965	192.605

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		48.144
2] Share Application Money		0.000
3] Reserves & Surplus		75.926
4] (Accumulated Losses)		0.000
NETWORTH		124.070
LOAN FUNDS
1] Secured Loans		4.381
2] Unsecured Loans		16.065
TOTAL BORROWING		20.446
DEFERRED TAX LIABILITIES		0.000
TOTAL		144.516
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		106.503
Capital work-in-progress		0.000
INVESTMENT		0.011
DEFERRED TAX ASSETS		0.871
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.324
	Sundry Debtors	8.270
	Cash & Bank Balances	63.399
	Other Current Assets	0.000
	Loans & Advances	5.844
Total Current Assets		88.837
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	26.526
	Other Current Liabilities	21.743
	Provisions	3.437
Total Current Liabilities		51.706
Net Current Assets		37.131
MISCELLANEOUS EXPENSES		0.000
TOTAL		144.516

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	344.975	207.637	192.386
		Other Income	8.320	4.695	5.288
		TOTAL (A)	353.295	212.332	197.674
Less	EXPENSES
		Cost of material consumed	188.177	113.701
		Changes in inventories of finished goods, work in progress and recovered solvent	(1.414)	(2.631)
		Employee Benefit Expenses	43.592	28.024
		Other Expenses	107.016	62.640
		TOTAL (B)	337.371	201.734	182.112
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.924	10.598	15.562
Less	FINANCIAL EXPENSES (D)		0.832	1.507	1.436
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.092	9.091	14.126
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.951	13.905	13.938
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		1.141	(4.814)	0.188
Less	TAX (H)		3.315	(1.294)	0.175
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(2.174)	(3.520)	0.013
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	128.684	29.089	39.577
	Earnings/ (Loss) Per Share (Rs.)		(0.45)	(0.73)	0.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(0.62)	(1.66)	0.01
Net Profit Margin (PBT/Sales)	(%)	0.33	(2.32)	0.10
Return on Total Assets (PBT/Total Assets}	(%)	0.50	(1.69)	0.10
Return on Investment (ROI) (PBT/Networth)		0.01	(0.04)	0.00
Debt Equity Ratio (Total Debt/Networth)		0.09	0.08	0.16
Current Ratio (Current Asset/Current Liability)		1.39	1.50	1.72

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	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

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
SHORT TERM BORROWINGS
From Directors	9.123	5.422
Total	9.123	5.422

FIXED ASSETS:

· Land

· Factory Building

· Furniture and Fixture

· Plant and Machinery

· Vehicles

· Office Equipments

· Computers

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. 63.73
UK Pound	1	Rs. 99.79
Euro	1	Rs. 85.07

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.