MIRA INFORM REPORT

Report Date :

19.01.2013

IDENTIFICATION DETAILS

Name :	KLENZAIDS CONTAMINATION CONTROLS PRIVATE LIMITED
Registered Office :	A/21-22, M.I.D.C., Industrial Area, Street No.3, Andheri (East), Mumbai-400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.02.1978
Com. Reg. No.:	11-020112
Capital Investment / Paid-up Capital :	Rs. 2.826 millions
CIN No.: [Company Identification No.]	U33112MH1978PTC020112
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Clean Room Equipments, Pharmaceutical Machineries and Accessories.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 390000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is established companies having moderate track record. Latest financials i.e. 2011-2012 are missing from the government department. From the previous year record, it seems that the profit margin of the company appears to be low. However, trade relations are reported as 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	A4 (Short term non-fund based facility)
Rating Explanation	The risk prone credit quality It carry high credit risk
Date	25.04.2012

Rating Agency Name	ICRA
Rating	BB- (Long term fund based facility)
Rating Explanation	The inadequate credit quality It carry high credit risk.
Date	25.04.2012

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 :	A/21-22, M.I.D.C., Industrial Area, Street No.3, Andheri (East), Mumbai-400093, Maharashtra, India
Tel. No.:	91-22-28323113 / 28218921
Fax No.:	91-28377927
E-Mail :	klenzaids@mtnl.net.in
Factory 1 :	219, GIDC Industrial Area, Umergaon District – Valsad, Gujarat, India
Tel. No.:	91-260-2562082
Fax No.:	91-260-2563082
Email :	klenzumg_adl@sancharnet.in
Factory 2 :	1/1, ½, 3/1, GIDC Industrial Area, District – Valsad, Gujarat, India
Tel. No.:	91-260-2562862

DIRECTORS

As on 28.09.2011

Name :	Mr. Ramesh Parsram Lala
Designation :	Director
Address :	B 103, Iris Park, Patel Estate Road, Jogeshwari (West), Mumbai-400102, Maharashtra, India
Date of Birth/Age :	21.01.1952
Date of Appointment :	22.01.1998
DIN No.:	00270382
Name :	Mehernosh Eruch Engineer
Designation :	Additional director
Address :	West Coast Co-operative Housing Society Limited, Flat No.53, J.P. Road, Seven Bunglow, Andheri (West), Mumbai-400053, Maharashtra, India
Date of Birth/Age :	18.10.1949
Date of Appointment :	01.01.2008
DIN No.:	00270510
Name :	Mr. Prabhakar Venkappa Shetty
Designation :	Director
Address :	Plot No.1, Flat No.4, D Muljee Nagar, S.V.Road, Borivali (West), Mumbai-400092, Maharashtra, India
Date of Birth/Age :	02.10.1955
Date of Appointment :	01.05.1983
DIN No.:	00270842
Name :	Mr. Chandru Mangaram Shahani
Designation :	Director
Address :	28, Silversands Dariyalal Co-operative Housing Society, Juhu, Mumbai-400049, Maharashtra, India
Date of Birth/Age :	21.12.1936
Date of Appointment :	24.09.1991
DIN No.:	01255808
Name :	Mr. Hariprasad Krishnan Iyer
Designation :	Director
Address :	303, Sanidi Park, B Wing, Hariom Nagar, Mulund (East), Mumbai-400081, Maharashtra, India
Date of Birth/Age :	22.09.1954
Date of Appointment :	19.06.1992
DIN No.:	01255882
Name :	Mr. Krishnamurthy Hariharsubramanian
Designation :	Director
Address :	D7, Endeavour Society, 90 Feet Road, Mulund (East), Mumbai-400081, Maharashtra, India
Date of Birth/Age :	08.09.1953
Date of Appointment :	01.12.1983
DIN No.:	01255960
Name :	Mr. Hamish Chandru Shahani
Designation :	Managing director
Address :	28, Silversands Dariyalal Co-operative Housing Society, Juhu, Mumbai-400049, Maharashtra, India
Date of Birth/Age :	28.06.1968
Date of Appointment :	01.12.2006
DIN No.:	01255910

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2011

Names of Shareholders	No. of Shares
Chandru M Shahani	2410
Mona Chandru Shahani	5496
Hamish C Shahani	5272
Hamish Investments Private Limited, India	13944
Neena Yogesh Mathur	1
Prabhakar V Sheety	250
Krishnamurthy Hariharsubramanian	250
Monisha Narke	330
Chandrabhan Trust	135
Mehernosh E Engineer	10
Mahesh Gidwani	32
Shahani M Chandru HUF	125
Anita H Shahani	7
Total	28262

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2011

Category	Percentage
Bodies corporate	49.34
Directors or relatives of Directors	49.78
Other top fifty shareholders	0.88
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Clean Room Equipments, Pharmaceutical Machineries and Accessories.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of Mysore, 24/26, Cama Building, Dalal Street, Fort, Mumbai- 400001, Maharashtra, India

· HDFC Bank Limited

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
HDFC Bank Limited (Secured against hypothecation of Motor Car purchased under hire purchase scheme Amount due in next 12 months	1.642	3.231
State Bank of Mysore
Term Loan Cash Credit (Secured against hypothecation of present and future stocks, Book debts, All movable Assets and Plant and Machinery / Vehicle and Area by mortgage of immovable properties of the company and personal guarantee of one of the directors ) [Amount due in next 12 months	0.000 61.452	3.925 45.739
Total	63.094	52.895

Banking Relations :	--
Auditors :
Name :	Natvarlal Vepari and Company Chartered Accountants
Address :	Oricon House, 4^th Floor,12K, Dubhash Marg, Mumbai- 400023, Maharashtra, India
Tel. No.:	91-22-67527100
Fax No.:	91-22-67527101
PAN No.:	AAAFN2322E
Entities where control exists :	Hamish Investments Private Limited
Subsidiaries :	Klenzaids Inc
Enterprises owned or significantly influenced by key management personnel or their relatives :	· Vector Systems and Instrumentation Private Limited · Ziebert Engineering Industries Private Limited · Klenzaids Bioclean Devices Private Limited · Brisk Tour and Travels

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
30000	Equity Shares	Rs.100/- each	Rs. 3.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
28262	Equity Shares	Rs.100/- each	Rs. 2.826 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		2.826	2.826	2.826
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		96.000	86.187	75.041
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		98.826	89.013	77.867
LOAN FUNDS
1] Secured Loans		63.094	52.895	39.986
2] Unsecured Loans		1.676	2.917	4.829
TOTAL BORROWING		64.770	55.812	44.815
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		163.596	144.825	122.682
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		27.894	33.788	38.373
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		12.330	17.000	17.000
DEFERRED TAX ASSETS		0.517	0.458	1.039
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	90.243	84.454	83.763
	Sundry Debtors	238.138	160.860	102.078
	Cash & Bank Balances	9.944	14.699	17.200
	Other Current Assets	0.371	0.648	0.000
	Loans & Advances	63.244	74.266	71.258
Total Current Assets		401.940	334.927	274.299
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	145.535	131.616	117.579
	Other Current Liabilities	97.913	76.416	69.987
	Provisions	35.637	33.316	20.463
Total Current Liabilities		279.085	241.348	208.029
Net Current Assets		122.855	93.579	66.270
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		163.596	144.825	122.682

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	294.437	269.501	223.955
		Receipts from Jobs Projects	130.914	157.012	92.326
		Receipts from Services	10.120	5.385	5.759
		Other Income	3.261	2.213	2.893
		TOTAL	438.732	434.111	324.933
Less	EXPENSES
		Office Expenses	405.922	402.182	296.406
		Administrative Expenses
		Advertising Expenses
		TOTAL	405.922	402.182	296.406
	PROFIT BEFORE TAX		32.810	31.929	28.527
Less	TAX		13.110	10.896	12.082
	PROFIT AFTER TAX		19.700	21.033	16.445
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		30.078	42.068	42.068
Less	APPROPRIATIONS
		Proposed Dividend	8.479	8.479	0.000
		Dividend Tax	1.408	1.408	0.000
		Transfer to General Reserve	1.953	2.103	0.000
	BALANCE CARRIED TO THE B/S		18.238	30.078	42.068
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods	13.123	15.607	3.258
		Engineering Services	4.675	0.000
		Foreign Exchange used	5.794	4.833
	TOTAL EARNINGS		23.592	20.440	3.258
	Earnings Per Share (Rs.)		697.00	744.00	582.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.49	4.84	5.06
Net Profit Margin (PBT/Sales)	(%)	11.14	11.84	12.73
Return on Total Assets (PBT/Total Assets}	(%)	7.63	8.65	9.12
Return on Investment (ROI) (PBT/Networth)		33.19	35.87	36.63
Debt Equity Ratio (Total Liability/Networth)		3.48	3.34	3.25
Current Ratio (Current Asset/Current Liability)		1.44	1.39	1.32

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	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

BUSINESS OVERVIEW

The company is in the field of manufacturing of clean room equipments and pharmaceutical machineries and also undertaking of projects of turkey basis. The company has received good orders in the last 6 months and the order book as on date stands on a healthy level.

The company has a positive step to strengthen its base overseas, has decided to have the separate entity in US. Accordingly the company has established a subsidiary in US viz. Klenzaids Inc.

As regards the auditors observation pertaining to internal control procedures, the management is taking necessary steps for this.

As regards separate internal audit system, this is being implemented.

There were some delays in payment of statutory dues to non receipt of collections in time. However, all the dues of the company as on 31^st March 2011 have since been paid.

UNSECURED LOAN

Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
From Bank (Guaranteed by one of the directors)	0.359	2.552
From Shareholders and others	1.317	0.365
Total	1.676	2.917

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U33112MH1978PTC020112
Name of the company	KLENZAIDS CONTAMINATION CONTROLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	A/21-22, M.I.D.C., Industrial Area, Street No.3, Andheri (East), Mumbai-400093, Maharashtra, India Email: klenzaids@mtnl.net.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10141707
Type of charge	· Book debts · Movable property (not being pledge) · Others (Receivables)
Particular of charge holder	State Bank of Mysore, 24/26, Cama Building, Dalal Street, Fort, Mumbai- 400001, Maharashtra, India Email: dalast@sbm.co.in
Nature of instrument creating charge	Agreement of Loan - Cum - Hypothecation
Date of instrument Creating the charge	22.03.2012
Amount secured by the charge	Rs. 195.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at 6.25% above the base rate Present effective rate 16.75% p.a. Terms of Repayment Repayable on demand. The facility is available for 12 months subject to review every 12 months. Margin A) Fund Based Limits 1) Cash Credit - a) Stocks - 33 1/3 b) Receivables - 50% B) Non Fund Based Limits 1) letter of Credit - a) Inland/ foreign LC - 20% b) All Bank Guarantees - 20% Extent and Operation of the charge The extent and operation of charge is as per Agreement of Loan - Cum - Hypothecation. Others Usance Period : Inland LCs: maximum - 90 days Foreign LCs : maximum - 180 days
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of stocks, book debts and receivables present and future
Date of instrument modifying the charge	23.04.2011
Particulars of the present modification	By this present modification the Bank has increased its Cash Credit limit from Rs. 54.300 millions to Rs. 85.000 millions, Bank Guarantee from Rs. 85.000 millions to Rs. 90.000 millions and letter of Credit from Rs. 10.000 millions to Rs. 20.000 millions aggregating to Rs. 195.000 millions and withdrawn the existing limit of Bank guarantee for CCMB -Project of Rs. 115.000 millions hence the existing limit of Rs. 264.300 millions is reduced to Rs. 195.000 millions

FIXED ASSETS

· Goodwill on Amalgamation

· Land for Factory building

· Land for staff Qtrs.

· Tools

· Factory Building

· Staff Qtrs.

· Plant and Machinery

· Electrical Installation

· Office Equipment

· Furniture and Fixture

· Air Conditioner / Refrigerator

· Motor Cycle

· Motor Car

· Motor Lorry / Tempo

· Weighing Scale

· Die Moulder and Patterns

· Bicycle

· Three Wheeler

· Truck

· Testing Instruments

· Computer

· Patent

· Photocopier Machine

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 records 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.53.95
UK Pound	1	Rs.86.24
Euro	1	Rs.72.21

INFORMATION DETAILS

Report Prepared by :

NID

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	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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
TOTAL		29

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.