MIRA INFORM REPORT

REVISED REPORT

Report Date :

26.07.2013

IDENTIFICATION DETAILS

Name :	DEMOSHA CHEMICALS PRIVATE LIMITED
Registered Office :	105-A, Mittal Towers, 210, Nariman Point, Mumbai – 400 021, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	27.10.1970
Com. Reg. No.:	11-014859
Capital Investment / Paid-up Capital :	Rs. 19.900 Millions
CIN No.: [Company Identification No.]	U24110MH1970PTC014859
TAN No.: [Tax Deduction & Collection Account No.]	MUMD09824D
PAN No.: [Permanent Account No.]	AAACD3822A
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the business of Inorganic Chemicals.
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 450000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears drastic drop in the profitability. Profit margin seems to be low. External borrowing appears to be huge. 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 – 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : BB
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation.
Date	April 2013

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 :	105-A, Mittal Towers, 210, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22823558 / 22823588 / 22852189 / 22872218
Fax No.:	91-22-22045997
E-Mail :	info@demoshachemicals.com demosha@vsnl.com
Website :	http://www.demoshachemicals.com
Factory:	GIDC Industrial Estate, Gundlav 396 005, Gujarat, India
Tel. No.:	91-2632-2632-237271 / 2 / 3
Fax No.:	91-2632-2632-237277
E-Mail :	plant@demoshachemicals.com

DIRECTORS

As on: 24.09.2011

Name :

Mr. Gautam Bhogilal Shah

Designation :

Whole Time Director

Address :

19, 7^th Floor, Panchasar Building, 76 Netaji Subhash Marg, Marine Drive, Mumbai - 400 020, Maharashtra, India

Date of Birth/Age :

08.01.1946

Date of Appointment :

01.03.1995

PAN No.:

AAOPS2532D

DIN No.:

00665651

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	U24110MH1959PTC011440	Industrial Solvents and Chemicals Private Limited	Whole-time director	16/11/1974	16/11/1974	01/07/2013	Active	NO
2	U24110MH1970PTC014859	Demosha Chemicals Private Limited	Whole-time director	01/03/1995	01/03/1995	-	Active	NO

Name :

Mr. Chinubhai Shantilal Shah

Designation :

Whole Time Director

Address :

903, Chandanbala, R. R. Thakkar Marg, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

13.12.1937

Date of Appointment :

01.05.1997

PAN No.:

AAQPS6109L

DIN No.:

00209638

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	U24110MH1970PTC014859	Demosha Chemicals Private Limited	Whole-time director	01/05/1997	01/05/1997	-	Active	NO
2	U72100MH2000PTC124860	Sns Technologies Private Limited	Director	13/12/2000	13/12/2000	-	Active	NO
3	U67120MH2001PTC133842	Sarjan Investment Private Limited	Director	02/11/2001	02/11/2001	-	Active	NO
4	U24230MH2005PLC156917	Gopaldas Visram and Company Limited	Director	16/01/2008	16/01/2008	01/08/2009	Active	NO
5	U70102MH2009PTC195524	Mss Properties and Lands Private Limited	Director	04/09/2009	04/09/2009	-	Active	NO

Name :

Mr. Vijay Monish Parikh

Designation :

Director

Address :

10/C, 5^th Floor, Ishwardas Mansion, Nana Chowk, Mumbai-400007, Maharashtra, India.

Date of Birth/Age :

09.09.1955

Date of Appointment :

01.03.1995

PAN No.:

AAFPP6546F

DIN No.:

01556958

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	U24110MH1970PTC014859	Demosha Chemicals Private Limited	Director	01/03/1995	01/03/1995	-	Active	NO
2	U67120MH1999PTC118079	Mudrika Finance and Investments Private Limited	Director	01/02/1999	01/02/1999	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 24.09.2011

SHAREHOLDERS DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on: 24.09.2011

Category	Percentage
Bodies corporate	5.38
Directors or relatives of directors	94.62
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in the business of Inorganic Chemicals.

PRODUCTION STATUS As on (31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Sulphoxylates and Hydrosulphites	MT	--	10000	7649
Zinc and other related products	MT	--	--	5302*

* including 64 M.T. (previous year 10 M.T.) purchased as intermediary

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Bank of Baroda, Bulsar Main Branch, Nani Khatriwad, Bulsar-396 001, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long term borrowing
Deferred payment liabilities	0.590	1.110
	0.000	0.000
Short term borrowing	0.000	0.000
Loans repayable on demand	93.137	141.808
Total	93.727	142.918

Banking Relations :	--
Auditors :
Name :	R P Shah and Company Chartered Accountants
Address :	Office No.35, 3^rd Floor, Tardeo, AC Market, Mumbai – 400 034, Maharashtra, India
PAN No.:	AAOFR2693A
Associates :	· Western India Chemicals · Industrial Solvents and Chemicals Private Limited, India CIN No. U24110MH1959PTC011440 · BMS Chemie · Mudrika Finance and Investment Private Limited, India CIN No. U67120MH1999PTC118079

CAPITAL STRUCTURE

As on: 24.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.100/- each	Rs. 60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
199000	Equity Shares	Rs.100/- each	Rs. 19.900 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	19.900	19.900
(b) Reserves & Surplus	94.435	91.379
(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)	114.335	111.279
(3) Non-Current Liabilities
(a) long-term borrowings	205.459	174.027
(b) Deferred tax liabilities (Net)	2.147	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	207.606	174.027
(4) Current Liabilities
(a) Short term borrowings	93.137	141.808
(b) Trade payables	153.153	119.078
(c) Other current liabilities	24.424	22.092
(d) Short-term provisions	7.410	7.324
Total Current Liabilities (4)	278.124	290.302
TOTAL	600.065	575.608
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	79.168	83.356
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	13.626	1.090
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.081	0.031
(c) Deferred tax assets (net)	0.000	0.624
(d) Long-term Loan and Advances	6.416	6.327
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	99.291	91.428
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	170.353	187.704
(c) Trade receivables	292.515	274.347
(d) Cash and cash equivalents	6.492	3.503
(e) Short-term loans and advances	22.050	17.260
(f) Other current assets	9.364	1.366
Total Current Assets	500.774	484.180
TOTAL	600.065	575.608

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		19.900
2] Share Application Money		0.000
3] Reserves & Surplus		63.891
4] (Accumulated Losses)		0.000
NETWORTH		83.791
LOAN FUNDS
1] Secured Loans		84.097
2] Unsecured Loans		142.156
TOTAL BORROWING		226.253
DEFERRED TAX LIABILITIES		0.000
TOTAL		310.044
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		69.216
Capital work-in-progress		0.239
INVESTMENT		0.000
DEFERREX TAX ASSETS		5.628
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	201.467
	Sundry Debtors	211.145
	Cash & Bank Balances	11.534
	Other Current Assets	1.243
	Loans & Advances	10.694
Total Current Assets		436.083
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	82.952
	Other Current Liabilities	110.011
	Provisions	8.159
Total Current Liabilities		201.122
Net Current Assets		234.961
MISCELLANEOUS EXPENSES		0.000
TOTAL		310.044

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1247.700	1120.400
		Other Income	4.727	0.701
		TOTAL (A)	1252.427	1121.101	1149.075
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	1185.920	1026.525	983.061
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		66.507	94.576	166.014
Less	FINANCIAL EXPENSES (D)		40.544	37.225	38.363
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		25.963	57.351	127.651
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.354	8.828	7.775
	PROFIT BEFORE TAX (E-F) (G)		15.609	48.523	119.876
Less	TAX (H)		6.771	15.254	28.126
	PROFIT AFTER TAX (G-H) (I)		8.838	33.269	91.750
	Prior period adjustments		0.000	(0.002)	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		36.379	13.894	(67.555)
Less	APPROPRIATIONS
		Transfer to General Reserve	1.000	5.000	4.500
		Proposed Dividend	4.975	4.975	4.975
		Tax on Proposed Dividend	0.807	0.807	0.826
	BALANCE CARRIED TO THE B/S		38.435	36.379	13.894
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	103.268	117.499	100.499
	TOTAL EARNINGS		103.268	117.499	100.499
	IMPORTS
		Raw Materials	30.926	27.852	45.674
		Stores & Spares	0.325	0.341	0.310
	TOTAL IMPORTS		31.251	28.193	45.984
	Earnings Per Share (Rs.)		9.83	38.26	461.05

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.71	2.97	7.99
Net Profit Margin (PBT/Sales)	(%)	1.25	4.33	0.00
Return on Total Assets (PBT/Total Assets}	(%)	2.66	8.46	23.72
Return on Investment (ROI) (PBT/Networth)		0.13	0.43	1.43
Debt Equity Ratio (Total Debt/Networth)		2.61	2.83	2.71
Current Ratio (Current Asset/Current Liability)		1.81	2.78	2.17

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

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Long term borrowing
Deposits from directors	0.000	168.952
Deposits from others	0.000	3.965
Loans and advance from related parties	204.869	0.000
Total	204.869	172.917

PERFORMANCE OF THE COMPANY

The company has made profit before tax at Rs.15.600 millions on sales turnover of Rs.1252.400 millions. The sales have increased from Rs.1120.400 millions to Rs.1247.700 millions, however profit before tax has declined from Rs.48.500 million to Rs.15.600 million. As indicated in last year’s annual report, the decline in profit is due to increase in cost. Cost of all raw materials has gone up, mainly caustic soda lye, and methanol. Cost of packing material and power and fuel has increased substantially. Labour cost has also increased substantially because the cost of living has gone up in India because of very high inflation rate.

CURRENT YEAR OUT LOOK

The expected decline in growth rate in India from 9% to less than 6.5% is bound to affect our performance in the current year and declining trend in profit may not be arrested in current year. During the current year energy cost has further gone up. Continuation of higher inflation rate will also increase labour cost further in the current year. The year is bound to be with lots of uncertainty and the company hopes to maintain the profitability as of last year.

Fixed Assets:

• Land
• Building
• Plant and Machinery
• Equipments, Electric Installation
• Furniture and Fixtures
• Vehicle

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. 58.94
UK Pound	1	Rs. 90.48
Euro	1	Rs. 77.87

INFORMATION DETAILS

Report Prepared by :

DPH

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	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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.