MIRA INFORM REPORT

Report Date :

24.06.2013

IDENTIFICATION DETAILS

Name :	FINEOTEX CHEMICAL LIMITED
Registered Office :	42-43, Manorama Chambers, S V Road, Bandra (West), Mumbai – 400050, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.01.2004
Com. Reg. No.:	11-144295
Capital Investment / Paid-up Capital :	Rs. 112.298 Millions
CIN No.: [Company Identification No.]	L24100MH2004PLC144295
TAN No.: [Tax Deduction & Collection Account No.]	MUMF04902C
PAN No.: [Permanent Account No.]	AAACF8360M
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and Trading of Chemicals for Textiles, Construction, Water-Treatment, Fertiliser, Leather and Paint Industry.
No. of Employees :	32 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 2000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payment terms are usually correct. The company can be considered 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 – 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

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 :	42-43, Manorama Chambers, S V Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Tel. No.:	91-22-26559174-77
Fax No.:	91-22-26559178
E-Mail :	fineotex@yahoo.com info@fineotex.com selvi@fineotex.com
Website :	http://www.fineotex.com
Factory :	A-699, MIDC, TTC, Maphe, New Mumbai, Maharashtra, India

DIRECTORS

AS ON 31.03.2012

Name :

Mr. Surendra Kumar Tibrewala

Designation :

Managing Director

Date of Birth/Age :

10.06.1956

Date of Appointment :

25.06.2007

DIN No.:

00218394

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	U24110MH1990PTC059067	KAMAL CHEMICALS PRIVATE LIMITED	Director	21/11/1990	21/11/1990	Active	NO
2	L24100MH2004PLC144295	FINEOTEX CHEMICAL LIMITED	Managing director	25/06/2007	30/01/2004	Active	NO
3	U45400MH2013PTC240961	FCL LANDMARC PRIVATE LIMITED	Director	14/03/2013	14/03/2013	Active	NO

Name :

Mr. Sanjay Tibrewala

Designation :

Whole-time director

Date of Birth/Age :

22.05.1981

Date of Appointment :

25.06.2007

DIN No.:

00218525

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	U74950MH1994PTC078288	PROTON BIOCHEM PRIVATE LIMITED	Director	28/03/2003	28/03/2003	Active	NO
2	L24100MH2004PLC144295	FINEOTEX CHEMICAL LIMITED	Whole-time director	25/06/2007	30/01/2004	Active	NO
3	U45400MH2013PTC240961	FCL LANDMARC PRIVATE LIMITED	Director	14/03/2013	14/03/2013	Active	NO
4	AAB-3950	PANCHAVATI CONSTRUCTIONS LLP	Body corporate as Designated Partner	30/03/2013	30/03/2013	Active	NO

Name :

Mr. Manmohan Mehta

Designation :

Director

Date of Birth/Age :

28.08.1968

Date of Appointment :

31.12.2012

DIN No.:

00391964

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	U17110MH1987PTC042626	NALIN SYNTEX PRIVATE LIMITED	Director	01/04/1987	01/04/1987	-	Active	NO
2	U17120MH1995PTC093080	MEHTA SYNTEX PRIVATE LIMITED	Director	26/09/1995	26/09/1995	-	Active	NO
3	L24100MH2004PLC144295	FINEOTEX CHEMICAL LIMITED	Director	31/12/2012	31/12/2007	-	Active	NO
4	U74140MH2008PTC178191	MARS FARMLAND AND CONSULTANCY SERVICES PRIVATE LIMITED	Director	24/01/2008	24/01/2008	-	Active	NO
5	U70102MH2008PTC183036	FOREST VIEW FARMLAND PRIVATE LIMITED	Director	02/06/2008	02/06/2008	-	Active	NO
6	U45200MH2008PTC183035	RIVERSIDE REALTY PRIVATE LIMITED	Whole-time director	02/06/2008	02/06/2008	-	Active	NO
7	U45200MH2008PTC183037	HILL VIEW REALTY PRIVATE LIMTED	Whole-time director	02/06/2008	02/06/2008	-	Active	NO
8	U70102MH2008PTC184115	RIVERSIDE RESIDENCY PRIVATE LIMITED	Whole-time director	30/06/2008	30/06/2008	-	Active	NO
9	U01403MH2008PTC185372	RIVERTOUCH FARMLAND PRIVATE LIMITED	Director	02/08/2008	02/08/2008	-	Active	NO
10	U70102MH2008PTC185371	RIVERSIDE FARMLAND PRIVATE LIMITED	Director	02/08/2008	02/08/2008	-	Active	NO
11	U70102MH2008PTC185373	RIVERVIEW REALTY PRIVATE LIMITED	Whole-time director	02/08/2008	02/08/2008	-	Active	NO
12	U24233MH2008PTC186600	ARISTO HERBOFARM PRIVATE LIMITED	Director	09/09/2008	09/09/2008	04/10/2012	Active	NO
13	U45400MH2010PTC202472	MANRAJ PROJECTS PRIVATE LIMITED	Director	28/04/2010	28/04/2010	-	Active	NO
14	U45400MH2010PTC203156	VIMLA PROJECTS DEVELOPERS PRIVATE LIMITED	Director	13/05/2010	13/05/2010	-	Active	NO
15	U45400MH2010PTC203451	DIFFERENT SQUARES VENTURES PRIVATE LIMITED	Director	22/05/2010	22/05/2010	01/03/2013	Active	NO
16	U70102MH2011PTC214015	SAI TURF FARMS PRIVATE LIMITED	Director	24/02/2011	24/02/2011	-	Active	NO
17	U70102MH2011PTC214003	SAIKRIPA AGRI LANDS PRIVATE LIMITED	Director	24/02/2011	24/02/2011	-	Active	NO
18	U70200MH2011PTC214190	SAI ORCHID FARMS PRIVATE LIMITED	Director	01/03/2011	01/03/2011	-	Active	NO
19	U70102MH2011PTC222245	SAI GRASSLANDS PRIVATE LIMITED	Director	21/09/2011	21/09/2011	07/10/2012	Active	NO
20	U01403MH2011PTC222575	VIMLA GRASSLANDS PRIVATE LIMITED	Director	29/09/2011	29/09/2011	07/10/2012	Active	NO

Name :

Mr. Sanjay Mittal

Designation :

Executive Director

Name :

Mr. Navin Mittal

Designation :

Director (appointed w.e.f.02.09.2011)

Date of Birth/Age :

13.03.1973

Experience :

Graduate

Date of Appointment :

31.12.2012

DIN No.:

03555295

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	L24100MH2004PLC144295	FINEOTEX CHEMICAL LIMITED	Director	31/12/2012	02/09/2011	Active	NO

KEY EXECUTIVES

Name :	A V Nerurkar
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2013

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	7046002	62.74
Bodies Corporate	402800	3.59
Any Others (Specify)	1330	0.01
Directors/Promoters & their Relatives & Friends	1330	0.01
Sub Total	7450132	66.34
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	7450132	66.34
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	1865793	16.61
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	753230	6.71
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1037441	9.24
Any Others (Specify)	123215	1.10
Clearing Members	64347	0.57
Non Resident Indians	58868	0.52
Sub Total	3779679	33.66
Total Public shareholding (B)	3779679	33.66
Total (A)+(B)	11229811	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	11229811	0.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Trading of Chemicals for Textiles, Construction, Water-Treatment, Fertiliser, Leather and Paint Industry.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Chemicals	KG	5000000	4725545

GENERAL INFORMATION

No. of Employees :

32 (Approximately)

Bankers :

ö Indian Bank

ö Oriental Bank of Commerce

ö Union Bank of India

ö HDFC Bank Limited

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
LONG TERM BORROWINGS
Term Loan from bank	56.093	0.000
SHORT TERM BORROWINGS
Bank Overdraft	2.161	1.003
Total	58.254	1.003
Note: LONG TERM BORROWINGS i. Term loan from bank is secured by way of exclusive first charge created by hypothecation of the total current assets including receivables (both present and future) of the Company. Fixed Deposits of the Company of Rs. 80.000 Millions have been marked as lien in favour of the Bank as a collateral security. Interest is charged at six months LIBOR plus 4.50 % p.a. is payable quarterly on the outstanding loan amount. SHORT TERM BORROWINGS Bank Overdraft is secured against bank fixed deposits.

Banking Relations :	--
Auditors :
Name :	UKG and Associates Chartered Accountants
Subsidiary Company :	ö BT Biotex SDN BHD
Enterprise under significant influence of Key Management Personnel or their relatives	ö Sanjay Exports ö Proton Biochem Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
13,000,000	Equity Shares	Rs. 10/- each	Rs. 130.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11,229,811	Equity Shares	Rs. 10/- each	Rs. 112.298 Millions

i) Shareholders holding more than 5 % of Equity Shares:

Name of the Shareholder	31.03.2012
	No. of Shares	% held
Surendra Tibrewala	5,719,000	50.93

ii) Aggregate number of shares allotted as fully paid up bonus shares during the period of five years immediately preceding the reporting date

- 3,324,600 Equity shares of Rs.10/- each fully paid issued as bonus shares in the Financial Year 2007-2008 by capitalisation of Securities Premium Account.

iii) Aggregate number of shares issued as fully paid up for consideration other than cash during the period of five years immediately preceding the reporting date

- 3,000,000 Equity shares of Rs.10/- each fully paid issued for consideration other than cash to vendor in pursuant to the acquisition of business in Financial Year 2007-2008.

Reconciliation of the number of Equity Shares outstanding	31.03.2012
Particulars	No. of Shares
Number of shares at the beginning of the year	11,229,811
Add: Shares issued	--
Number of shares at the end of year	11,229,811

v. The Company has only one type of equity share. Each equity share is entitled to one voting right only.

vi. In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all the preferential amounts. The distribution would be in proportion of the number of Equity shares held by the Equity Shareholders.

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	112.298	112.298
(b) Reserves & Surplus	388.012	350.315
(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)	500.310	462.613
(3) Non-current liabilities
(a) long-term borrowings	56.093	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	56.093	0.000
(4) Current liabilities
(a) Short term borrowings	2.161	1.003
(b) Trade payables	49.099	37.176
(c) Other current liabilities	21.291	3.168
(d) Short-term provisions	8.067	9.193
Total Current Liabilities (4)	80.618	50.540
TOTAL	637.021	513.153
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	45.349	34.634
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	7.356
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	83.869	0.000
(c) Deferred tax assets (net)	5.274	6.597
(d) Long-term Loan and Advances	71.247	30.154
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	205.739	78.741
(2) Current assets
(a) Current investments	195.716	59.068
(b) Inventories	25.345	23.646
(c) Trade receivables	86.369	74.776
(d) Cash and cash equivalents	110.374	260.621
(e) Short-term loans and advances	13.478	16.301
(f) Other current assets	0.000	0.000
Total Non-Current Assets	431.282	434.412
TOTAL	637.021	513.153

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		70.186
2] Share Application Money		0.000
3] Reserves & Surplus		80.768
4] (Accumulated Losses)		0.000
NETWORTH		150.954
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		2.462
TOTAL		153.416
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		34.891
Capital work-in-progress		8.059
INVESTMENT		35.064
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.103
	Sundry Debtors	57.519
	Cash & Bank Balances	8.314
	Other Current Assets	0.000
	Loans & Advances	29.493
Total Current Assets		111.429
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	25.103
	Other Current Liabilities	1.603
	Provisions	9.326
Total Current Liabilities		36.032
Net Current Assets		75.397
MISCELLANEOUS EXPENSES		0.005
TOTAL		153.416

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	333.219	282.439	207.471
		Other Income	22.133	4.045	7.145
		TOTAL (A)	355.352	286.484	214.616
Less	EXPENSES
		Cost of Materials Consumed	233.239	190.500
		Changes in Inventories of Work-in-Progress	(0.215)	(0.346)
		Employee benefit Expenses	13.630	11.282
		Other Expenses	29.435	20.308
		TOTAL (B)	276.089	221.744	159.579
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		79.263	64.740	55.037
Less	FINANCIAL EXPENSES (D)		2.910	0.132	0.159
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		76.353	64.608	54.878
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.705	1.305	1.267
	PROFIT BEFORE TAX (E-F) (G)		74.648	63.303	53.611
Less	TAX (H)		23.289	20.823	18.624
	PROFIT AFTER TAX (G-H) (I)		51.359	42.480	34.987
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		114.911	78.978	52.176
Less	APPROPRIATIONS
		Proposed Dividend	5.615	5.615	7.019
		Tax on Dividend	0.911	0.932	1.166
	BALANCE CARRIED TO THE B/S		159.744	114.911	78.978
	IMPORTS
		Raw Materials	0.726	0.081	0.000
	Earnings Per Share (Rs.)		4.57	5.82	4.98

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012	31.03.2013
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Sales Turnover	90.500	99.200	106.800	110.400
Total Expenditure	77.100	78.400	98.000	99.000
PBIDT (Excl OI)	13.400	20.800	8.800	11.400
Other Income	3.800	7.800	8.700	4.700
Operating Profit	17.200	28.600	17.600	16.100
Interest	1.100	1.000	1.000	0.800
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	16.000	27.600	16.500	15.300
Depreciation	0.500	0.500	0.500	0.500
Profit Before Tax	15.500	27.100	16.000	14.800
Tax	5.000	7.500	3.100	3.500
Provisions and Contingencies	0.000	0.000	0.000	0.000
Reported PAT	10.500	19.500	12.900	11.300
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	10.500	19.500	12.900	11.300

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	14.45	14.83	16.30
Net Profit Margin (PBT/Sales)	(%)	22.40	22.41	25.84
Return on Total Assets (PBT/Total Assets}	(%)	13.62	12.68	36.64
Return on Investment (ROI) (PBT/Networth)		0.15	0.14	0.36
Debt Equity Ratio (Total Debt/Networth)		0.12	0.00	0.00
Current Ratio (Current Asset/Current Liability)		5.35	8.60	3.09

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

CORPORATE INFORMATION

Subject is a public limited Company domiciled in India and incorporated under the Companies Act, 1956. The Company was incorporated in 2004 and is listed on Bombay Stock Exchange. The Company is engaged in the business of manufacturing and trading of Chemicals. The Company is one of the leading manufacturers of chemicals for textiles, construction, water-treatment, fertiliser, leather and paint industry.

OPERATIONS

During the year, the Company could achieve a gross turnover of Rs. 359.900 Millions as against Rs. 306.100 Millions last year an increase of 17.57 % inspite of the depressed economic conditions.. Due to rising costs of the oil, depreciating Indian Rupee and their inflationary impact on other items, the inputs costs continued to rise in the year. This also led severe strain on the margins. The Company was able to meet the challenge, maintain its position by adapting to the changing environment, ensuring timely delivery and new product development. This ensured higher sales which helped it to maintain its absolute profits inspite of depressed margins. The directors are confident, that subject to unforeseen circumstances, the Company would be in a position to maintain robust growth rate in the current year.

During the year the Company formed Fineotex Malaysia Limited (FML), a Limited Company, in Labaun Malaysia. FML in turn has controlling interest in 3 other companies in Malaysia that have established manufacturing and trading activities. Their turnover is higher than the parent company. The synergy of the businesses would help all the companies when the integration takes place. The integration process is slow due to cultural differences but in a positive direction and the effect would be visible from the current financial year.

The Company continues to develop new products and modify the products as per the requirements of its customers. It has its own testing and development facilities backed by qualified staff. It has also applied for the recognition of its research and development facilities with the Department of Scientific and Industrial Research, Ministry of Science & Technology, Government of India.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian Chemical Industry is one of the top five industries in Asia and continues to grow over the years. Chemical industry can be broadly divided into 3 categories –(1) Basic Chemicals like petrochemicals, fertilizers etc. (2) Specialty chemicals like intermediaries, auxiliaries or catalyst in nature and (3) high technology based chemicals like medicinal or biotech products.

The Company’s products mainly fall under the Specialty Chemical business which is an emerging sector with increased dependence on knowledge, innovation and research. The products are like recipes made as per customer needs with the interaction at the customers production process. The uses of these products find their way in almost all industries with the textile sector being the major market of the Company’s products. The characteristics of this business are more flexibility in the processes as well as the final products causing high product differentiation and low capital investments. The Company is established in this business with many accepted products with growing range and market share.

DISCUSSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONS

The Company’s performance during the year shows a jump of 17.57 % over the last year. However due to the rising raw material costs the profit before tax has remained almost at the same level in the year. The Company is a zero debt Company with no borrowings for its local operations. Short term borrowings are restricted to need based working capital requirements.

During the year the plant had smooth operations. The certification received by the Company is ISO 9001:2000 from JAS-ANZ in 2007. The Company received the proceeds on the Public Issue in the last fortnight of March 2011 and hence could not utilize the same gainfully during the year. It expects that in the forthcoming year the returns would increase.

As per the Accounting Standard 17 issued by the Institute of Chartered Accountants of India and Companies (Accounting Standards) Rules, 2006, the Company has only one segment i.e. specialty or auxiliary chemicals. The Company’s products play an important role in the textile manufacturing processes. With the cautious growth expected in the textile industry in the coming year with increasing demand for chemicals needed for this industry based on the increasing expectation of quality and fashionable textile products, the Company expects a growth in turnover for the current year. The total quantitative sales in 2011-12 were 4873 MT against 4726 MT in 2010-11. It is pertinent to note that quantity is not a very indicative criteria to evaluate performance as the quantity may vary depending upon the concentration level of products sold.

CONTINGENT LIABILITIES:

Particulars	31.03.2012	31.03.2011
	(Rs. in Millions)
i. Contingent liabilities not provided for in respect of:
Guarantees given by bank	0.369	0.749
Claims against the Company not acknowledged as debts	3.898	3.898
ii. Premium amount to be paid to MIDC on account of transfer of leasehold land in the name of the Company, for which amount is not ascertainable.

FIXED ASSETS:

ö Leasehold Land

ö Factory Building

ö Plant and Machinery

ö Office Premises

ö Furniture and Fixtures

ö Computers

ö Vehicles

ö Renovation on Lease Premises

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] 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. 59.35
UK Pound	1	Rs. 92.11
Euro	1	Rs. 78.59

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	4
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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.