MIRA INFORM REPORT

Report Date :

08.01.2013

IDENTIFICATION DETAILS

Name :	SWATI MENTHOL AND ALLIED CHEMICALS LIMITED (w.e.f 15.09.2001)
Formerly Known As :	SWATI MENTHOL AND ALLIED CHEMICALS PRIVATE LIMITED
Registered Office :	Opposite Radio Station, Bareilly Road, Rampur-244901, Uttar Pradesh.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.03.1990
Com. Reg. No.:	20-011773
Capital Investment / Paid-up Capital :	Rs.102.180 Millions
CIN No.: [Company Identification No.]	U15326UP1990PLC011773
PAN No.: [Permanent Account No.]	AAECS0319M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers and Exporters of Menthol and Allied Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1400000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Latest financial i.e. 2011-12 are missing from the government department. From the available financial of 2011 it seems that the company is progressing well. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. 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.

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	CARE
Rating	BBB- (Long Term Bank Facilities)
Rating Explanation	Moderate degree of safety. It carry moderate credit risk.
Date	18.07.2012

Rating Agency Name	CARE
Rating	A3 (Short Term Bank Facilities)
Rating Explanation	Moderate degree of safety. It carry higher credit risk.
Date	18.07.2012

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/ Factory :	Opposite Radio Station, Bareilly Road, Rampur-244901, Uttar Pradesh, India
Tel. No.:	91-595-2357042/2357043/2357044/2357045
Mobile No.:	91-9837848871 (Mr. S. K Gupta)
Fax No.:	91-595-2357046
E-Mail :	sanchit.gupta@swatimenthol.com gauravnishantmca@yahoo.com info@swatimenthol.com
Website :	www.swatimenthol.com

DIRECTORS

As on: 30.09.2011

Name :

Mr. Nitin Kumar Gupta

Designation :

Director

Address :

Opposite Central Bank, Rampur, Uttar Pradesh, India.

Date of Appointment :

30.04.1996

DIN No.:

00807771

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	U15326UP1990PLC011773	SWATI MENTHOL AND ALLIED CHEMICALS LIMITED	Director	30/04/1996	30/04/1996	-	Active	NO
2	U74120UP2009PTC037979	SWATI FRAGRANCES PRIVATE LIMITED	Director	12/08/2009	12/08/2009	-	Active	NO

Name :

Mr. Sanchit Gupta

Designation :

Director

Address :

Rah-E-Razanear Ishwar Nursing Home, Rampur, Uttar Pradesh, India.

Date of Appointment :

10.05.2000

DIN No.:

01611817

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	U15326UP1990PLC011773	SWATI MENTHOL AND ALLIED CHEMICALS LIMITED	Director	10/05/2000	10/05/2000	-	Active	NO
2	U74120UP2009PTC037979	SWATI FRAGRANCES PRIVATE LIMITED	Director	12/08/2009	12/08/2009	-	Active	NO
3	U63090UP1997PTC045775	SUMATI TRANSPORT PRIVATE LIMITED	Director	31/05/2010	31/05/2010	-	Active	NO

Name :

Mr. Surendra Kumar Gupta

Designation :

Managing Director

Address :

Rah-E-Razanear Ishwar Nursing Home, Rampur, Uttar Pradesh, India.

Date of Appointment :

27.03.1990

DIN No.:

01639980

Name :

Ms. Geeti Rakesh Gupta

Designation :

Director

Address :

Opposite Central Near Ishwar Nursing Home, Rampur, Uttar Pradesh, India.

Date of Birth :

28.12.1980

Date of Appointment :

01.09.2008

DIN No.:

02109039

Name :

Ms. Sushma Rani Gupta

Designation :

Director

Address :

Rahe Raja, Civil Lines, Rampur, Uttar Pradesh, India.

Date of Appointment :

27.03.1990

DIN No.:

02564325

Name :

Ms. Sudha Gupta

Designation :

Director

Address :

Opposite Central Bank, Rampur, Uttar Pradesh, India.

Date of Appointment :

30.04.1996

DIN No.:

02645686

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2011

Names of Shareholders	No. of Shares
Surendra Kumar Gupta	3713027
Sushma Rani Gupta	2496600
Sanchit Gupta	1051352
Baby Swati	7200
Surendra Kumar Gupta HUF	283905
Sudha Gupta	646875
Nitin Kumar Gupta	309965
Geeti Rakesh Gupta	12500
Ramendra Kumar Gupta	7920
Rajni Gupta	72000
Rajat Gupta	8662
M/s. Swati Fragrances Private Limited Rampur – India	760000
Sumati Transport Private Limited – India	227350
M/s Dipka Coal Carriers Private Limited Rampur – India	65450
D.K. Agarwal	67500
Usha Kumar Trust – India	45000
Ratan Kumar Gupta HUF	13500
Usha Agarwal	33750
Haider Ali	4500
Jitendra Kumar Gupta	36000
Mukul Saxena	27000
Rajeev saxena	6750
Roshni Singh	13500
Harsh Kabra	2250
Subodh kr. Agarwal	29250
Kamal kumar Jawahar	3375
S. K. Yadav	2250
Kumar Pal Singh	2250
Rajpal Singh	2250
Virendra Mangalam	54562
Sangeeta Manglam	211500
Total	10217993

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	13.07
Directors or relatives of Directors	80.54
Other top fifty shareholders	6.39
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Menthol and Allied Products.

Products :

· Pitch · Pinetar · Terpinyle Acetate · Dihydromyceneol · Rectified Pippermint Oil · Dmo · Terpineol · Rectified Eucalyptol · Rectified Dipentine · Cineol · Rectified Spearmint Oil · Cis 3 Hexanol · Eucalyptol · Pippermint Oil · Terpene · Rectified Mentha Piperita · Dipentene · Rectified Evcalyptus Oil · Methyl Acetate · Rectified Anethol · Octanol · Cis 3 Hexanyle · Butyrate · Cis-3 Aexanyle · Acetate · Pine Oil · R E C T I F I Ed Alphapinene · Mentha Oil Ip · Rectified Terpentine Oil · Menthone · Menthol

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Bank of Baroda, IBB, Basant Vihar, Civil Lines, Moradabad - 244001, Uttar Pradesh, India.

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	77.308	74.763
Working capital loans banks secured	734.773	545.512
Loans taken for vehicles secured	0.000	0.097
Total	812.081	620.372
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	29.323	9.163
Total	29.323	9.163

Banking Relations :	--
Auditors :
Name :	Raj Agarwal and Company Chartered Accountants
Address :	Ashirwad 10-C, VIP Colony, Civil Lines, Rampur, Uttar Pradesh, India
Tel. No.:	91-595-2351375
E-Mail :	ca_rajagarwal@yahoo.co.in
PAN.:	ACXPA4618F

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12500000	Equity Shares	Rs.10/- each	Rs.125.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10217993	Equity Shares	Rs.10/- each	Rs.102.180 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		102.180	44.595	40.269
2] Share Application Money		0.000	17.121	0.000
3] Reserves & Surplus		263.327	186.292	121.582
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		365.507	248.008	161.851
LOAN FUNDS
1] Secured Loans		812.081	620.372	504.551
2] Unsecured Loans		29.323	9.163	16.499
TOTAL BORROWING		841.404	629.535	521.050
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1206.911	877.543	682.901
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		210.012	193.895	154.883
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		51.620	15.040	40.142
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	595.612	434.541	290.705
	Sundry Debtors	424.375	271.897	173.606
	Cash & Bank Balances	2.472	0.436	2.433
	Other Current Assets	2.279	2.302	0.735
	Loans & Advances	92.762	88.511	58.091
Total Current Assets		1117.500	797.687	525.570
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	130.041	105.142	27.343
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	42.180	23.937	10.351
Total Current Liabilities		172.221	129.079	37.694
Net Current Assets		945.279	668.608	487.876
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1206.911	877.543	682.901

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income/ Turnover	1833.490	1335.499	916.756
		Other Income	35.957	4.548	2.200
		TOTAL (A)	1869.447	1340.047	918.956
Less	EXPENSES
		Consumption materials changes inventories	1471.389	1064.849	826.699
		Manufacturing service costs	47.581	48.292
		Employee related expenses	15.237	11.218
		Administrative selling other expenses	99.701	88.078
		Prior Period Items	(6.323)	(6.887)
		TOTAL (B)	1627.585	1205.550	826.699
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		241.862	134.497	92.257
Less	FINANCIAL EXPENSES (D)		65.568	57.160	44.532
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		176.294	77.337	47.725
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.404	10.152	7.143
	PROFIT BEFORE TAX (E-F) (G)		165.890	67.185	40.582
Less	TAX (H)		54.693	20.863	13.470
	PROFIT AFTER TAX (G-H) (I)		111.197	46.323	27.112
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6.323	6.887	4.775
Less	APPROPRIATIONS
		Transfer to General Reserve	110.000	40.000	25.000
	BALANCE CARRIED TO THE B/S		1.197	6.323	6.887
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1245.080	776.856	NA
	Earnings Per Share (Rs.)		10.26	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.95	3.46	2.95
Net Profit Margin (PBT/Sales)	(%)	8.87	5.01	4.43
Return on Total Assets (PBT/Total Assets}	(%)	12.50	6.78	5.96
Return on Investment (ROI) (PBT/Networth)		0.45	0.27	0.25
Debt Equity Ratio (Total Liability/Networth)		2.77	3.06	3.45
Current Ratio (Current Asset/Current Liability)		6.49	6.18	13.94

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	No
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

FIXED ASSETS:

• Plant and machinery
• Building
• Air conditioner
• Car
• Cellular
• Computer
• Cooler
• Cycle
• Door phone and lock
• Drums and container
• EPBX
• Fax
• Fire equipment
• Fixture and fittings
• Furniture
• Generator
• Scooter
• Telephone instrument
• Television
• Telex
• Nestle D/o machine
• Transformer
• Type writer
• UPS and batteries
• Water coolers
• Truck
• Refrigerator
• Lab equipment

As Per Web site Details:

Profile:

A WHO GMP and ISO 9001:2008 certified company; they are one of the leading manufacturers and exporters of natural menthol, essential oil, peppermint oil, crude menthol oil, peppermint essential oil and terpene chemicals from India. Their reputation as a noteworthy supplier in global supply chain can be credited to their technically advanced production facilities, international quality standards, extensive Research and Development and customer oriented approach. 

Their working objective is to achieve total customer satisfaction. At the same time, they also strive to offer effective and reliable products at most competitive prices within scheduled time. The driving force behind this enthusiastic approach is their quest to serve clients with the most dedicated and professionally. In addition, they have a countrywide sales and marketing network in India with a vibrant team of trained and motivated professionals. 

The company is promoted by Mr. S. K. Gupta, a Chemical Engineer, who has vast experience in the same industry. He started the first production division i.e. natural menthol manufacturing unit in the year 1977 at Rampur (UP, India).

Awards and Certificates

· A Government of India Recognized “Star Export House”.

· An ISO 9001-2000 Certified Company.

· Process is as per the standards of HACCP and GMP License.

· Kosher and Halal Certified.

· “State Export Award” winner for year 2000-01.

· One of the largest in Mint Business – Globally.

· Swiss Technology Sulzer Fractional Distillation Column.

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 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 :

RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	YES
--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		45

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.