MIRA INFORM REPORT

Report Date :

21.03.2013

IDENTIFICATION DETAILS

Name :	SPECTRUM ETHERS LIMITED (w.e.f. 30.08.1994)
Formerly Known As :	SPECTRUM ETHERS PRIVATE LIMITED
Registered Office :	Gat No – 367, Rasegaon Village, Nashik Peth Road, Nashik – 422202, Maharashtra
Country :	India
Financials (as on) :	31.03.2012 (Profit and Loss Account)
Date of Incorporation :	02.02.1993
Com. Reg. No.:	11-070620
Capital Investment / Paid-up Capital :	Rs.69.222 Millions (As on: 31.03.2011)
CIN No.: [Company Identification No.]	U24100MH1993PLC070620
PAN No.: [Permanent Account No.]	AAECS0266M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Pesticides Formulations.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 480000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The balance sheet of the year 2012 is not made available. It has achieved some growth in its turnover during this year. As per previous year’s record, the financial strength of the company appears moderate with huge external borrowings. However, trade relations are fair. Business is active. Payments are reported to be slow but correct The company can be considered for business dealings with great 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	CRISIL
Rating	BB (Long Term Rating)
Rating Explanation	Moderate risk of default.
Date	November 5, 2012

Rating Agency Name	CRISIL
Rating	A4+(Short Term Rating)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	November 5, 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/ Factory :	Gat No – 367, Rasegaon Village, Nashik Peth Road, Nashik – 422202, Maharashtra, India
Tel. No.:	91-2557-226371/ 226389/ 2570744/ 226390
Fax No.:	91-2557-226390
E-Mail :	ethers_nsk@sancharnet.in factory@spectrumethers.com
Head Office/ Sales Office :	201, Saba Palace, 4^th Road, Khar (West), Mumbai – 400054, Maharashtra, India
Tel. No.:	91-22-26487769/ 26054452
Fax No.:	91-22-26487762
E-Mail :	info@spectrumethers.com samir@spectrumethers.com
Corporate Office :	Flat No.5, Ayodhya Building, D’Souza – Shivgiri Colony, Nashik – 422005, Maharashtra, India
Tel. No.:	91-253-2570744
Fax No.:	91-253-2582696
Branch:	Located at: Nashik Bharuch

DIRECTORS

As on: 29.09.2012

Name :	Mr. Milind Shankarrao Kolhe
Designation :	Managing Director
Address :	1201, Vaitarna Worli Sagar Co-Operative Housing Society, Shri Pochkhanwala Road, Worli, Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	18.05.1959
Qualification :	M.S
Date of Appointment :	08.04.1994
DIN No.:	00270804
Name :	Mr. Shaileshbhai Vasantlal Babariya
Designation :	Director
Address :	74854, Shri Rampur, Taluka Shri Rampur, Ahmed Nagar – 413709, Maharashtra, India
Date of Birth/Age :	17.09.1956
Qualification :	B.A
Date of Appointment :	28.12.1998
DIN No.:	00441746
Name :	Mr. Jugal Kishor Agrawal
Designation :	Director
Address :	Agrawal Building, P/No. 926, C.A. Road, Deshpande, L/D Wardhman Nagar, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	23.12.1957
Qualification :	B.A
Date of Appointment :	11.12.1995
DIN No.:	00270955
Name :	Mr. Gopal Agrawal
Designation :	Director
Address :	E 15, Konark Park, Dhole Patil Road, Pune – 411001, Maharashtra, India
Date of Birth/Age :	06.02.1957
Qualification :	M.D
Date of Appointment :	02.09.2001
DIN No.:	03197304

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	3.93
Directors or relatives of directors	61.16
Other top fifty shareholders	11.87
	23.04
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pesticides Formulations.

Products :

Product Description	ITC Code
Pesticides	3808
Technical Grade Pesticides	38089010
Phorate 10 % CG	38089010

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Technical Grade Pesticides	M.T	3525	3525	2725.99
Phorate 10 % CG	M.T	9600	9600	6018.71
Others	M.T	NA	NA	1257.02

Notes: Capacity is specified by the plant suppliers and as certified by company's officials and not verified by the auditors being a technical matter.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank Of India, Commercial Branch, N.G.N. Vaidya Marg, Bank Street, Horniman Circle, Mumbai - 400001, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	150.172	16.503
Working capital loans banks secured	114.451	100.530
Total	264.623	117.033
Notes: (A) Include Term Loan from SBI Above loans are secured by Mortgage of whole of movable and immovable properties, of the Company situated at Gat No.367, Rasegaon Village, District Nashik.) (B) Include Cash Credit from State bank Of India, Mumbai (Secured by hypothecation of Stocks, Book debts, and other movable assets.)

Banking Relations :	--
Auditors :
Name :	S.K. Kavathekar and Company Chartered Accountants
Address :	Shree Ganesh Housing Society, Bhavani Shankar Road, Near Kabutar Khana, Dadar (West), Mumbai – 400028, Maharashtra, India
PAN No.:	AFZPK5200N

CAPITAL STRUCTURE

As on: 29.09.2012

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
9496700	Equity Shares	Rs.10/- each	Rs.94.967 Millions

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs.10/- each	Rs.90.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6922200	Equity Shares	Rs.10/- each	Rs.69.222 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		69.222	53.222
2] Share Application Money		32.629	48.429
3] Reserves & Surplus		19.590	3.314
4] (Accumulated Losses)		0.000	0.000
NETWORTH		121.441	104.965
LOAN FUNDS
1] Secured Loans		264.623	117.033
2] Unsecured Loans		9.256	5.501
TOTAL BORROWING		273.879	122.534
DEFERRED TAX LIABILITIES		30.707	25.545
TOTAL		426.027	253.044
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		277.013	128.097
Capital work-in-progress		0.000	0.000
INVESTMENT		0.107	0.107
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	198.711	168.528
	Sundry Debtors	119.559	106.850
	Cash & Bank Balances	2.129	6.737
	Other Current Assets	0.000	0.000
	Loans & Advances	81.866	38.911
Total Current Assets		402.265	321.026
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	234.808	176.888
	Other Current Liabilities	18.550	19.298
	Provisions	0.000	0.000
Total Current Liabilities		253.358	196.186
Net Current Assets		148.907	124.840
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		426.027	253.044

Note: Balance Sheet for the year 2012 is not available, only profit and loss account is available.

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	987.453	632.541	461.017
		Other Income	1.146	0.539	0.235
		TOTAL (A)	988.599	633.080	461.252
Less	EXPENSES
		Cost of materials consumed	664.845	425.298
		Employee benefit expense	30.402	22.888
		Other expenses	177.091	113.807
		Exceptional items	0.000	(1.855)
		TOTAL (B)	872.338	560.138	420.749
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		116.261	72.942	40.503
Less	FINANCIAL EXPENSES (D)		52.701	25.486	15.225
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		63.560	47.456	25.278
Less/ Add	DEPRECIATION/ AMORTISATION (F)		28.551	22.218	9.285
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		35.009	25.238	15.993
Less	TAX (H)		19.700	8.963	24.614
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		15.309	16.275	(8.621)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		19.589	3.314	11.935
	BALANCE CARRIED TO THE B/S		NA	19.589	3.314
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	37.314	45.712	13.105
	TOTAL EARNINGS		37.314	45.712	13.105
	IMPORTS
		Raw Materials	138.332	87.236	118.814
	TOTAL IMPORTS		138.332	87.236	118.814
	Earnings Per Share (Rs.)		1.61	2.35	0.62

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.55	2.57	(1.87)
Net Profit Margin (PBT/Sales)	(%)	3.55	3.99	3.47
Return on Total Assets (PBT/Total Assets}	(%)	NA	3.72	3.56
Return on Investment (ROI) (PBT/Networth)		NA	0.21	0.15
Debt Equity Ratio (Total Debt/Networth)		NA	2.26	1.67
Current Ratio (Current Asset/Current Liability)		NA	1.59	1.64

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	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	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	Yes

UNSECURED LOAN

(Rs. In Millions)

	As on 31.03.2011	As on 31.03.2010
Other debt unsecured	9.256	5.501
Total	9.256	5.501

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U24100MH1993PLC070620
Name of the company	SPECTRUM ETHERS LIMITED
Address of the registered office or of the principal place of business in India of the company	Gat No – 367, Rasegaon Village, Nashik Peth Road, Nashik – 422202, Maharashtra, India E-mail: ethers_nsk@sancharnet.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80044954
Type of charge	Immovable property
Particular of charge holder	State Bank Of India, Commercial Branch, N.G.N. Vaidya Marg, Bank Street, Horniman Circle, Mumbai - 400001, Maharashtra, India E-mail: kamalax_saraf@hotmail.com
Nature of instrument creating charge	No instrument. Memorandum of deposit for creation of further charge for term loan overall limit where the initial charge is created by way of mortgage by deposit of title deeds (form C.10)
Date of instrument Creating the charge	04.07.2012
Amount secured by the charge	Rs.516.800 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanction terms Terms of Repayment As per sanction terms Margin As per sanction terms Extent and Operation of the charge As per sanction terms Others Not Applicable
Short particulars of the property or asset(s) charged (including complete address and location of the property)	A first charge by way of hypothecation of the borrowers entire goods, movables and other assets present and future including documents of title to the goods and other assets such as book debts, outstanding moneys, receivables including receivables by way of cash assistance and/or cash incentives under the cash incentives or any other scheme, claims including claims by way of refund of customs/ excise duties under the duty drawback credit scheme or any other scheme, bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights uncalled capital, capital and all machinery present and future of such form satisfactory to the bank.
Date of instrument modifying the charge	04.02.2012
Particulars of the present modification	Now By The Present Modfn. Dated. 04.07.2012 The Company created an extension of charge By Way Of An Equit. Mort .By dated over the following Immov. Prop. To secure the credit facilities of Rs. 516.800 Millions.The Immov. Prop. Situated At: 1) Gat No.99 At Village Bolki, Taluka and Regn. Sub District Kopergaon, Ahmednagar 2) Gat No.146 At Village Chinchodi, Khurd, Taluka and Regn. Sub-District Yeola, District Nasik.3) All those P/P of land bearing Gat Nos. 349,358,359/2, 360,361 and 367 Village Of Rasegaon, Dindori, Nashik.

FIXED ASSETS:

• Land
• Factory Building
• Plant and Machinery
• Electrical Installation
• Fire Fighting Equipment
• Laboratory Equipment
• Furniture and Fixture
• Office Equipment
• Computers
• Vehicles

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.54.38
UK Pound	1	Rs.82.07
Euro	1	Rs.70.04

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.