MIRA INFORM REPORT

Report Date :

08.01.2013

IDENTIFICATION DETAILS

Name :	MAHALAXMI DYES AND CHEMICALS LIMITED
Registered Office :	3 Gujarat Industrial Compound, 1^st Floor, Opposite ACME Amay Building, Vishwasvar Nagar, Goregaon, Mumbai – 400063, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.07.2001
Com. Reg. No.:	22-132914
Capital Investment / Paid-up Capital :	Rs.44.000 Millions
CIN No.: [Company Identification No.]	U24114MH2001PLC132914
TAN No.: [Tax Deduction & Collection Account No.]	MUMM14762G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Importer and Distributor of Chemicals and Building Materials (Primarily Float Glass)
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 214000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The profitability of the company appears to be low and it has moderate liquidity position. However, trade relations are reported to be fair. Business is active. Payments are reported to be 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 – 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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Rating: BB-
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	June, 2012

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 :	3 Gujarat Industrial Compound, 1^st Floor, Opposite ACME Amay Building, Vishwasvar Nagar, Goregaon, Mumbai – 400063, Maharashtra, India
Tel No.:	91-22-66750111
Fax No.:	Not Available
E-Mail :	chemicals@mahalaxmigroup.com mdcgroup@rediffmail.com chittal@mahalaxmigroup.com cvshah@mahalaxmigroup.com
Website :	http://www.mahalaxmigroup.com
Corporate Office :	Office No. 101, 66, Guru Darshan, N. S. Road No 1, JVPD Scheme, Vile Parle, (West), Mumbai-400056, Maharashtra, India
Tel. No.:	91-22-28764990/ 28700801/ 56750111 (10 lines)
Fax No.:	91-22-56750130/ 28743705
E-Mail :	info@mahalxmigroup.com buildmat@mahalaxmigroup.com paper@mahalaxmigroup.com
Location :	Owned
Sales Office :	506, Faiz-E-Qutbi Building, 375, Narshi Natha Street, Mumbai – 400003, Maharashtra
Tel. No.:	91-22-23432844/ 23400616/ 23414723-24
Fax No.:	91-22-23401856

DIRECTORS

(AS ON 29.09.2012)

Name :

Mr. Shreepal Chandrakant Shah

Designation :

Director

Address :

Matruchhaya, 21 Friends Society, NSRD 6, JVPD Scheme Ville Parle, Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

26.04.1984

Date of Appointment :

07.06.2005

DIN No.:

00370705

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24222MH1989PLC051416	CHITTAL CHEMICALS LIMITED	Director	07/06/2005	07/06/2005	Active	NO
2	U67120MH1996PLC102871	MAHALAXMI STOCK FIN LIMITED	Director	07/06/2005	07/06/2005	Active	NO
3	U24114MH2001PLC132914	MAHALAXMI DYES AND CHEMICALS LIMITED	Director	07/06/2005	07/06/2005	Active	NO
4	U24231AP2000PLC033342	MAHALAXMI DRUGS LIMITED	Director	07/06/2005	07/06/2005	Strike off	NO
5	U45400MH1995PTC090372	CVS INFRASTRUCTURE PRIVATE LIMITED	Director	18/08/2005	18/08/2005	Active	NO
6	U45400MH2010PTC201057	ARDHAM LOGISTICS AND INFRASTRUCTURE PRIVATE LIMITED	Director	19/03/2010	19/03/2010	Active	NO

Name :

Mr. Chandrakant Vadilal Shah

Designation :

Chairman cum Director

Address :

Matruchhaya, 21 Friends Society, NSRD 6, JVPD Scheme Ville Parle, Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

05.05.1952

Date of Appointment :

30.07.2001

DIN No.:

00372193

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U24222MH1989PLC051416	CHITTAL CHEMICALS LIMITED	Director	19/04/1989	19/04/1989	Active	NO
2	U67120MH1996PLC102871	MAHALAXMI STOCK FIN LIMITED	Director	26/09/1996	26/09/1996	Active	NO
3	U24231AP2000PLC033342	MAHALAXMI DRUGS LIMITED	Director	24/01/2000	24/01/2000	Strike off	NO
4	U24114MH2001PLC132914	MAHALAXMI DYES AND CHEMICALS LIMITED	Director	30/07/2001	30/07/2001	Active	NO
5	U45400MH1995PTC090372	CVS INFRASTRUCTURE PRIVATE LIMITED	Director	12/10/2012	03/04/2002	Active	NO

Name :

Mr. Chittal Chandrakant Shah

Designation :

Director

Address :

Matruchhaya, 21 Friends Society, NSRD 6, JVPD Scheme Ville Parle, Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

19.12.1977

Date of Appointment :

30.07.2001

DIN No.:

00370678

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U67120MH1996PLC102871	MAHALAXMI STOCK FIN LIMITED	Director	26/09/1996	26/09/1996	-	Active	NO
2	U24222MH1989PLC051416	CHITTAL CHEMICALS LIMITED	Director	07/12/1998	07/12/1998	-	Active	NO
3	U24231AP2000PLC033342	MAHALAXMI DRUGS LIMITED	Director	24/01/2000	24/01/2000	-	Strike off	NO
4	U45400MH1995PTC090372	CVS INFRASTRUCTURE PRIVATE LIMITED	Director	10/07/2001	10/07/2001	13/10/2012	Active	NO
5	U24114MH2001PLC132914	MAHALAXMI DYES AND CHEMICALS LIMITED	Director	30/07/2001	30/07/2001	-	Active	NO
6	U45400MH2010PTC201057	ARDHAM LOGISTICS AND INFRASTRUCTURE PRIVATE LIMITED	Director	19/03/2010	19/03/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2012)

Names of Shareholders	No. of Shares
Chandrakant Vdilal Shah	3000000
Chittal Chandrakant Shah	590000
Shreepal Chandrakant Shah	620000
Sheela Chandrakant Shah	10000
Mittal Chittal Shah	74900
Kruti Chandrakant Shah	5000
Dharini Shrepal Shah	100000
Mukesh Natwarlal Gandhi	100
Total	4400000

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Importer and Distributor of Chemicals and Building Materials (Primarily Float Glass)

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· State Bank of India Nariman Point Branch, Dalamal House, Jamnalal Bajaj Marg, Nariman Point, Mumbai – 400021, Maharashtra, India

Banking Relations :	--
Auditors :
Name :	Anil Thakrar and Company Chartered Accountant
Address :	B-104, Mrud Kishore Building, Dattapada Road, Borivali (West), Mumbai – 400092, Maharashtra, India
PAN No.:	AABPT8134D

CAPITAL STRUCTURE

(AS ON 29.09.2012)

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
4400000	Equity Shares	Rs.10/- each	Rs.44.000 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		44.000	44.000	43.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		9.393	6.499	5.254
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		53.393	50.499	48.254
LOAN FUNDS
1] Secured Loans				42.780
2] Unsecured Loans				0.000
TOTAL BORROWING		110.965	85.941	42.780
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		164.358	136.440	91.034
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.320	1.557	1.987
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.412	0.268	0.242
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	58.710	59.247	32.337
	Sundry Debtors	101.890	132.935	58.519
	Cash & Bank Balances	78.972	14.856	20.341
	Other Current Assets	27.694	24.795	0.000
	Loans & Advances	6.408	6.853	24.959
Total Current Assets		273.674	238.686	136.156
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	105.399	100.238	46.854
	Other Current Liabilities	7.882	3.301
	Provisions	0.767	0.532	0.497
Total Current Liabilities		114.048	104.071	47.351
Net Current Assets		159.626	134.615	88.805
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		164.358	136.440	91.034

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	502.084	391.330	265.093
		Other income	0.531	1.024	0.952
		TOTAL (A)	502.615	392.354	266.045
Less	EXPENSES
		Purchase of Stock In Trade	467.322	392.258	254.118
		Changes in inventories	0.537	(26.910)	(11.249)
		Employee benefits expense	3.533	3.342	0.000
		Other expenses	10.672	11.309	14.166
		TOTAL (B)	482.064	379.999	257.035
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.551	12.355	9.010
Less	FINANCIAL EXPENSES (D)		14.293	9.142	6.773
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.258	3.213	2.237
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.404	0.474	0.598
	PROFIT BEFORE TAX (E-F) (G)		4.854	2.739	1.639
Less	TAX (H)		1.960	1.495	(0.044)
	PROFIT AFTER TAX (G-H) (I)		2.894	1.244	1.683
	Earnings Per Share (Rs.)		0.66	0.29	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.58	0.32	0.63
Net Profit Margin (PBT/Sales)	(%)	0.97	0.70	0.62
Return on Total Assets (PBT/Total Assets}	(%)	1.75	1.14	1.19
Return on Investment (ROI) (PBT/Networth)		0.09	0.05	0.03
Debt Equity Ratio (Total Liability/Networth)		4.21	3.76	1.87
Current Ratio (Current Asset/Current Liability)		2.40	2.29	2.88

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	No
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	Yes

FORM 8

This form is for	Modification of charge
Charge identification number of the modified	90350983
Corporate identity number of the company	U24114MH2001PLC132914
Name of the company	MAHALAXMI DYES AND CHEMICALS LIMITED
Address of the registered office or of the principal place of business in India of the company	3, Gujarat Industrial Estate, 1st Floor, Opposite Acme Amay Building, Vishwasvar Nagar, Goregaon, Mumbai – 400063, Maharashtra, India cvshah@mahalaxmigroup.com
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of India Nariman Point Branch, Dalamal House, Jamnalal Bajaj Marg, Nariman Point, Mumbai – 400021, Maharashtra, India sbi.06945@sbi.co.in
Nature of description of the instrument creating or modifying the charge	1) Supplemental Agreement of Hypothecation of Goods and Assets for Increase in the Overall Limit (Form C.2-A) 2) Letter Reg. Grant of Individual Limits within the Overall Limit (Form C.5) both pertaining to a single charge
Date of instrument Creating the charge	29/09/2011
Amount secured by the charge	Rs.145.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest As determined by the Bank from time to time. Presently - On DCC 675 bps above Base Rate Terms of Repayment As stipulated by the Bank from time to time Working Capital - On Demand Margin As prescribed by the Bank from time to time. Presently - On finished goods 25%, Book-debts/ receivables 40% and on Letter of Credit 20% Extent and Operation of the charge First Charge
Short particulars of the property charged	All present and future goods, book-debts and all other movable assets
Date of latest modification prior to the present modification	05/11/2009
Particulars of the present modification	Additional working capital facilities of Rs.35.000 Millions. Hence, amount of charge increased from Rs.110.000 Millions to Rs.145.000 Millions (DCC Rs.70.000 Millions and L/C Rs.75.000 Millions).

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.54.98
UK Pound	1	Rs.88.11
Euro	1	Rs.71.67

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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
TOTAL		36

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.