MIRA INFORM REPORT

Report Date :

07.06.2013

IDENTIFICATION DETAILS

Name :	SALVI CHEMICAL INDUSTRIES LIMITED (w.e.f. 21.09.2006)
Formerly Known As :	SALVI CHEMICALS INDUSTRIES LIMITED
Registered Office :	214, Blue Rose Industrial Estate, Western Express Highway, Borivali (East), Mumbai – 400066, Maharashtra
Country :	India
Financials (as on) :	31.03.2012 (Profit and Loss Account)
Date of Incorporation :	10.10.2005
Com. Reg. No.:	11-156633
Capital Investment / Paid-up Capital :	Rs.79.432 Millions
CIN No.: [Company Identification No.]	U24230MH2005PLC156633
PAN No. :	AAKCS0142E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Chemical and Pharmaceuticals.
No. of Employees :	250 (Approximately)

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 732000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Balance sheet statement for the year 2012 is not available. As per available financials, the performance capability of the company seems to be normal. However, the company is known to have large working capital requirement. The rating also takes into consideration the fluctuation in raw material prices. Trade relations are reported as fair. Business is active. Payments terms are slow. 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: B
Rating Explanation	High risk of default
Date	10.05.2012

Rating Agency Name	CRISIL
Rating	Short term rating: A4
Rating Explanation	Minimal degree of safety. It carry high credit risk.
Date	10.05.2012

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 :	214, Blue Rose Industrial Estate, Western Express Highway, Borivali (East), Mumbai – 400066, Maharashtra, India
Tel. No.:	91-22-28701438
Fax No.:	91-22-28703656
E-Mail :	salvi@born3.vsnl.net.in info@salvichem.com
Website :	www.salvichem.com
Factory 1 :	E -93/94, MIDC Tarapur, Boisur, Maharashtra, India
Factory 2 :	E -90, MIDC Tarapur, Boisur, Maharashtra, India

DIRECTORS

As on 29.09.2012

Name :

Mr. Kantilal Narandas Salvi

Designation :

Whole-time Director

Address :

B 108, Ashoka Tower, Kulupwadi Road, Borivali (E), Mumbai – 400066, Maharashtra, India

Date of Birth/Age :

11.03.1945

Qualification :

B. Sc

Date of Appointment :

01.08.2011

DIN No:

00535466

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	U24230MH2005PLC156633	SALVI CHEMICAL INDUSTRIES LIMITED	Whole-time director	01-08-11	10-10-05	-	Active	NO
2	U51900MH2008PTC186057	FERROX CHEMICALS PRIVATE LIMITED	Director	21-08-08	21-08-08	-	Active	NO

Name :

Mr. Nirav Kantilal Salvi

Designation :

Director

Address :

B 108, Ashoka Tower, Kulupwadi Road, Borivali (E), Mumbai – 400066, Maharashtra, India

Date of Birth/Age :

13.03.1974

Qualification :

B. Sc

Date of Appointment :

10.10.2005

DIN No:

00535510

Name :

Mr. Kaushal Kantilal Salvi

Designation :

Whole Time Director

Address :

B 108, Ashoka Tower, Kulupwadi Road, Borivali (E), Mumbai – 400066, Maharashtra, India

Date of Birth/ Age:

01.05.1979

Qualification :

B. Com

Date of Appointment :

01.02.2011

DIN No:

00535546

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Kantilal. N. Salvi	11100
Nirav Salvi	11500
Kaushal K. Salvi	10500
Avni N Salvi	5550
Shweta K. Salvi	5550
Amita K. Salvi	5550
Kantilal N Salvi (HUF)	5550
Kantilal N. Salvi, Jt. Nirav K Salvi, Jt. Kaushal K Salvi	2706750
Kantilal N Salvi (HUF),Nirav K. Salvi	168125
Nirav K. Salvi, Jt. Avni N Salvi	2403525
Kaushal K. Salvi, Jt. Shweta K. Salvi	1441650
Kaushal K. Salvi (H.U.F), Jt. Shweta K. Salvi	221650
Amita K. Salvi, Jt. Nirav K. Salvi	78350
Avni N Salvi, Jt. Nirav K. Salvi	115850
Shweta K. Salvi, Jt. Kaushal K. Salvi	55200
Nirav K. Salvi (H.U.F)	663800
Mr. Pramod Patel	33000
Total	7943200

Allottees As on 31.12.2012

Names of Allottees	No. of Shares
Kantilal N. Salvi Jt. Nirav K. Salvi	70150
Amita K. Salvi Jt. Avni N. Salvi	99600
Kantilal N. Salvi [HUF] jt. Nirav K. Salvi (HUF)	119325
Nirav K. Salvi Jt. Avni N. Salvi	32435
Kaushal K. Salvi (HUF) Jt. Shweta K. Salvi Business	149350
Avni N. Salvi Jt. Nirav K. Salvi	40600
Shweta K. Salvi Jt. Kaushal K. Salvi	30250
Nirav K. Salvi (HUF)	30200
Total	571910

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	0.42
Directors or relatives of Directors	99.58
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Chemical and Pharmaceuticals.

Products :

ITC Code No.	Product Description
29171940	Ferrous Fumarate
29051490	Methyl Iodide
29224910	Amino Acetic (Acid) (Glycine)
29035050	Bulk Drugs/ Fine Chemicals

PRODUCTION STATUS As on (31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Bulk Drugs Chemicals	KGS	6900.00	2424.792

GENERAL INFORMATION

No. of Employees :

250 (Approximately)

Bankers :

· The Saraswat Co-op Bank Limited, RASEC Borivali (West) Branch, Shobhana Apartment, Chandavarkar Road, Borivali (West), Mumbai-400092, Maharashtra, India

· The Saraswat Co-operative Bank Limited, SME Vile Parle Branch, Bholanath Cooperative Housing Society, Subhash Road, Vile Parle (East), Mumbai-400057, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Rupee term loan secured	56.564	46.745
Working capital loans secured	96.465	121.550
Loan takes for vehicle secured	1.482	1.431
Total	154.511	169.726

Banking Relations :	--
Auditors :
Name :	Patel and Kruup Chartered Accountant
Address :	6, Cresent Chambers, 1^st Floor, Tamrind Lane, Fort, Mumbai – 400023, Maharashtra, India
Tel. No.:	91-22-22670815
Pan No.:	AAAPP8616R
Enterprise / Firm over which controlling individual have significant influence : (As on 31.03.2011)	Nutracare International

CAPITAL STRUCTURE

After 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Share	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8515110	Equity Share	Rs.10/- each	Rs.85.151 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7943200	Equity Shares	Rs.10/- each	Rs. 79.432 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		79.432	74.970
2] Share Application Money		0.000	2.200
3] Reserves & Surplus		103.597	71.995
4] (Accumulated Losses)		0.000	0.000
NETWORTH		183.029	149.165
LOAN FUNDS
1] Secured Loans		154.511	169.726
2] Unsecured Loans		21.583	0.000
TOTAL BORROWING		176.094	169.726
DEFERRED TAX LIABILITIES		10.364	7.575
TOTAL		369.487	326.466
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		140.593	121.877
Capital work-in-progress		2.194	4.525
INVESTMENT		0.025	0.025
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	187.904	99.128
	Sundry Debtors	267.016	309.692
	Cash & Bank Balances	0.750	1.334
	Other Current Assets	7.347	13.465
	Loans & Advances	94.423	45.504
Total Current Assets		557.440	469.123
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	291.199	240.503
	Other Current Liabilities	7.729	6.238
	Provisions	32.047	22.703
Total Current Liabilities		330.975	269.444
Net Current Assets		226.465	199.679
MISCELLANEOUS EXPENSES		0.210	0.360
TOTAL		369.487	326.466

NOTE: Balance sheet for the year 2012 is not available only profit and loss available.

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	927.366	646.695	650.826
		Other Income	4.438	23.587	0.699
		TOTAL (A)	931.804	670.282	651.525
Less	EXPENSES
		Cost of Materials Consumed	730.883	497.481
		Changes in Inventories of Finished Goods, Stock in Process and Stock in Trade	1.088	1.204
		Employees Benefits Expense	34.201	25.655
		Other Expenses	74.601	67.018
		TOTAL (B)	840.773	591.358	574.655
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		91.031	78.924	76.870
Less	FINANCIAL EXPENSES (D)		27.422	21.592	18.292
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		63.609	57.332	58.578
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.112	11.226	7.377
	PROFIT BEFORE TAX (E-F) (G)		50.497	46.106	51.201
Less	TAX (H)		10.567	12.132	9.746
	PROFIT AFTER TAX (G-H) (I)		39.930	33.974	41.455
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		94.584	66.995	31.715
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	2.000	2.000
		Dividend	NA	0.637	0.605
		Tax on Dividend	NA	3.748	3.570
	BALANCE CARRIED TO THE B/S		NA	94.584	66.995
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	159.579	182.853
	TOTAL EARNINGS		NA	159.579	182.853
	Earnings Per Share (Rs.)		5.03	4.28	5.22

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.28	5.06	6.36
Net Profit Margin (PBT/Sales)	(%)	5.44	7.13	7.87
Return on Total Assets (PBT/Total Assets)	(%)	NA	6.60	8.66
Return on Investment (ROI) (PBT/Networth)		NA	0.25	0.34
Debt Equity Ratio (Total Debt /Networth)		NA	0.96	1.14
Current Ratio (Current Asset/Current Liability)		NA	1.68	1.74

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 two 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	No
28]	Incorporation details, if applicable	No
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

ENTERPRISE RESOURCE PLANNING (ERP)

The Company has implemented advanced management technology viz., ERP. The implementation process is satisfactorily progressing and the company is confident in coming online by the next Financial Year. By implementing ERP better management technique would be utilised for processing voluminous date in lesser\r time to enable the Company for quick decisions.

ISO CERTIFICATION

The Company is proud to announce the award of ISO 9001:2008 Certification

UNSECURED LOAN

Particulars	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Other Debt Secured	21.583	0.000
Total	21.583	0.000

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24230MH2005PLC156633
Name of the company	SALVI CHEMICAL INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	214, Blue Rose Industrial Estate, Western Express Highway, Borivali (East), Mumbai-400066, Maharashtra, India Email: info@salvichem.com
This form is for	Creation of charge
Type of charge	Others (vehicle)
Particular of charge holder	The Saraswat Co-op Bank Limited, RASEC Borivali West Branch,Shobhana Apartment, Chandavarkar Road, Borivali (West), Mumbai - 400092, Maharashtra, India E-mail: bp_mainkar@saraswatbank.com
Nature of instrument creating charge	Agreement of Hypothecation of Vehicle
Date of instrument Creating the charge	30.03.2013
Amount secured by the charge	Rs. 2.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 10.4% p.a. or at such rate as maybe determined by the bank from time to time Terms of Repayment 60 months Margin Nil Extent and Operation of the charge This is term loan facility
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of Vehicle (Toyota Lakozi) registered with the Regional Transport office Mumbai

FIXED ASSETS:

• Land
• Factory Building
• Plant and Machinery
• Furniture and Fixtures
• Laboratory Equipment
• Computer
• Motor Cycle
• Scooter
• Air Conditioner
• Tata 407
• Cycle
• Office Equipment

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.56.87
UK Pound	1	Rs.87.65
Euro	1	Rs.74.51

INFORMATION DETAILS

Report Prepared by :

ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.