MIRA INFORM REPORT

Report Date :

21.03.2013

IDENTIFICATION DETAILS

Name :	AKOLA CHEMICALS (INDIA) LIMITED
Registered Office :	802/803, The Corporate Centre, Nirmal Life Style, LBS Marg, Mulund (West), Mumbai-400080, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.02.1981
Com. Reg. No.:	11-023801
Capital Investment / Paid-up Capital :	Rs. 5.800 Millions
CIN No.: [Company Identification No.]	U24100MH1981PLC023801
TAN No.: [Tax Deduction & Collection Account No.]	MUMA20605E
PAN No.: [Permanent Account No.]	AABCA1110H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Protein Hydrolysate
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 120000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears slight dip in sales and profitability during the current year. However, general financials is good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

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.

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.

INFORMATION PARTED BY

Name :	Mr. Amit Kumar
Designation :	Marketing Manager
Contact No.:	91-988125577
Date :	18.03.2013

LOCATIONS

Registered Office :	802/803, The Corporate Centre, Nirmal Life Style, LBS Marg, Mulund (West), Mumbai-400080, Maharashtra, India
Tel. No.:	91-22-25924782
Mobile No.:	91-988125577 (Mr. Amit Kumar)
Fax No.:	91-22-25924781
E-Mail :	akolachem@gmail.com akola.protein@gmail.com akolachemicalsltd@gmail.com akolachem@vsnl.net
Location :	Owned
Factory :	A-15/18, Old MIDC Area, Seoni, Akola-444104, Maharashtra, India
Tel No.:	91-724-2258160
Location :	Owned

DIRECTORS

As on 28.09.2012

Name :	Mr. Vijay Dilbagh Rai
Designation :	Director
Address :	68, Dolphin, Pilot Bunder Road, Colaba, Mumbai-400005, Maharashtra, India
Date of Appointment :	23.03.2005
Din No:	00075837
Name :	Mr. Rajesh Kumar Agarwal
Designation :	Director
Address :	Agarwal House, Madnani Lane, Club Road, Mithanpura, Ramna, Muzaffarpur-842001, Bihar, India
Date of Appointment :	14.03.2005
Din No:	00210719
Name :	Mr. Atul Churiwal
Designation :	Director
Address :	4, National Library Avenue, Alipore, Kolkata-700027, West Bengal, India
Date of Appointment :	14.03.2005
Din No:	00180595
Name :	Ms. Priyanka Vijay Rai
Designation :	Director
Address :	Flat No. 40, Shirin Building, Daulat Shiran CHS, Limited, 31, Colaba Road, Mumbai-400005, Maharashtra, India
Date of Appointment :	29.03.2006
Din No:	02673947
Name :	Mr. Karan Vijay Rai
Designation :	Additional Director
Address :	Flat No. 40, Shirin Building, Daulat Shiran CHS, Limited, 31, Colaba Road, Mumbai-400005, Maharashtra, India
Date of Birth/Age :	10.10.1981
Date of Appointment :	15.03.2011
Din No:	03438712

KEY EXECUTIVES

Name :	Mr. Amit Kumar
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares
A.S.N. Vadoliwala and Mrs. Roshan Vadoliwala	3500
Hanuwant Rai Verma	666
Amarpal Singh Dhillon	1660
Hanuwant V. Naik	2767
Kiran Suri	14330
Kavasseri V. Parameshwaran	2800
Ranjit Kumar Chowdhury	2767
Kanta Bhardwaj	1660
Gaurav Suri	7160
Rajendra G. Rathi	160
Anu P. Mahajan	6600
Parvez K. Dubash	4000
Padmakar Y Taje	392
Rekha S. Agarwal	6424
Parul	1107
Gagan	2767
Kamla Devendra Jain	1000

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2012

Category	Percentage
Bodies corporate	32.34
Directors or relatives of Directors	31.01
Other top fifty shareholders	36.65
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Protein Hydrolysate
Exports :
Products :	Protein Hydrolysate
Countries :	Middle East
Terms :
Selling :	L/C, Cash and Credit (30 Days)
Purchasing :	Cash and Credit (30 Days)

GENERAL INFORMATION

Customers :

• Wholesalers
• Retailers

No. of Employees :

50 (Approximately)

Bankers :

• State Bank of India

Diamond Garden Branch, Bahri Residency, Sion Trombay Road, Chembur (East) , Chembur, Mumbai - 400071, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loans
From Banks (Secured by Hypothecation of Car)	0.522	0.770
Deferred payment Liabilities
Deferred Payment of Sales tax	4.556	5.225
Loans Repayable on Demand
From Banks	13.007	14.181
Total	18.085	20.176

Banking Relations :	--
Auditors :
Name :	K.J. Sheth and Associates Chartered Accountants
Address :	2^nd Floor, Seksaria Chambers, 139, N.M. Road, Fort, Mumbai-400023, Maharashtra, India
Tel. No.:	91-22-22671618
E-Mail :	kiri.sheth@rediffmail.com
Pan No.:	AAKPS1414Q

CAPITAL STRUCTURE

As on 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued and Subscribed Capital :

No. of Shares	Type	Value	Amount
700000	Equity Shares	Rs.10/- each	Rs. 7.000 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
700000	Equity Shares	Rs.10/- each	Rs. 7.000 Millions
	Less : Calls in arrears		(1.200)
	Total		Rs. 5.800 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		5.800	5.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		25.983	19.212	17.239
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		31.783	24.212	22.239
LOAN FUNDS
1] Secured Loans		18.085	20.176	20.157
2] Unsecured Loans		0.836	3.336	10.325
TOTAL BORROWING		18.921	23.512	30.482
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		50.704	47.724	52.721
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.167	17.088	18.652
Capital work-in-progress		4.989	0.000	0.000
INVESTMENT		0.164	0.164	0.164
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	20.728	22.584	39.076
	Sundry Debtors	24.475	27.032	23.267
	Cash & Bank Balances	1.501	2.004	2.425
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.753	5.678	9.804
Total Current Assets		49.457	57.298	74.572
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	17.609	22.325	30.417
	Other Current Liabilities	0.574	2.169	4.915
	Provisions	1.890	2.332	5.335
Total Current Liabilities		20.073	26.826	40.667
Net Current Assets		29.384	30.472	33.905
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		50.704	47.724	52.721

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	59.565	71.018	66.438
		Other Income	0.016	0.008	14.454
		TOTAL (A)	59.581	71.026	80.892
Less	EXPENSES
		Cost of material consumed	20.761	29.803
		Changes in inventories of finished goods, work-in-progress and stock in trade	3.788	4.839
		Employee benefit expense	10.461	11.048
		Other expenses	16.127	18.039
		TOTAL (B)	51.137	63.729	78.032
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8.444	7.297	2.860
Less	FINANCIAL EXPENSES (D)		2.095	2.922	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.349	4.375	2.860
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.096	2.408	2.527
	PROFIT BEFORE TAX (E-F) (G)		4.253	1.967	0.333
Less	TAX (H)		3.182	(0.005)	0.000
	PROFIT AFTER TAX (G-H) (I)		1.071	1.972	0.333
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.111	5.139	4.806
Less	APPROPRIATIONS		0.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		8.182	7.111	5.139
	Earnings Per Share (Rs.)		1.53	2.82	N.A

Note : Sales Turnover of 2012 is Decrease. As they withdrew from Pesticides retail a losing business and they are focus on manufacture of Protein Hydrolysate

Expected Sales ( 2012-2013 ) : Rs. 70.000 Millions

The above information has been parted by Mr. Amit Kumar (Marketing Manager)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.80	2.78	0.41
Net Profit Margin (PBT/Sales)	(%)	7.14	2.77	0.50
Return on Total Assets (PBT/Total Assets}	(%)	6.48	2.64	0.36
Return on Investment (ROI) (PBT/Networth)		0.13	0.08	0.01
Debt Equity Ratio (Total Debt /Networth)		0.60	0.97	1.37
Current Ratio (Current Asset/Current Liability)		2.46	2.14	1.83

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	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	Yes
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	No
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

UNSECURED LOAN :

Particulars	As on 31.03.2012	As on 31.03.2011
Loans and Advances from Related Parties	0.836	3.336
Total	0.836	3.336

FIXED ASSETS :

• Land
• Buildings
• Plant and Equipment
• Furniture and Fixtures
• Vehicles
• Office Equipment
• Computer
• Electrical Installation

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24100MH1981PLC023801
Name of the company	AKOLA CHEMICALS (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	802/803, The Corporate Centre, Nirmal Life Style, LBS Marg, Mulund (West), Mumbai-400080, Maharashtra, India Email : akolachem@vsnl.net
This form is for	Modification of Charge
Charge identification (ID) number of the charge to be modified	10092450
Type of charge	Immovable Property
Particular of charge holder	State Bank of India Diamond Garden Branch, Bahri Residency, Sion Trombay Road, Chembur (East) , Chembur, Mumbai - 400071, Maharashtra, India Email : kamalax_saraf@hotmail.com
Nature of instrument creating charge	Memorandum for recording extension of mortgage by deposit of title deeds covering enhanced limits and/or creation of equitable mortgage on additional properties for existing limits and enhanced limits and additional facilities. SME-7
Date of instrument Creating the charge	28.03.2012
Amount secured by the charge	Rs. 28.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per the Letter of arrangement. Terms of Repayment As per the Letter of arrangement. Margin As per the Letter of arrangement. Extent and Operation of the charge Working Capital Rs. 20.000 Millions Term Loan Rs. 8.000 Millions Total Rs. 28.000 Millions Others N.A
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All present and future Stocks, Raw Materials, Goods, Book Debts and Vehicles and all other movable assets of the borrower including receivables, documents of title to goods, outstanding monies, bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights and the present and future machinery.
Date of instrument modifying the charge	28.03.2012
Particulars of the present modification	The original charge was created on 20.2.2008 for Rs. 20.000 Millions 1stly modified on 20/2/2008 for mortgage of immovable property. 2ndly modified on 28/3/2012 for Rs 28.000 Millions. now by this modification the company offered its immovable property as an additional security by way mortgage by deposit of title deed to secure its enhanced credit facilities to the extent of Rs 28.000 Millions (refer annexure of immovable property)

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. 54.29
UK Pound	1	Rs. 81.94
Euro	1	Rs. 70.02

INFORMATION DETAILS

Report Prepared by :

RSMK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.