MIRA INFORM REPORT

Report Date :

23.05.2013

IDENTIFICATION DETAILS

Name :	LANXESS INDIA PRIVATE LIMITED
Registered Office :	Lanxess House, Plot No. A 162, A 163, A 164, Road No. 27, Wagle Estate, Opposite ITI College, MIDC, Thane-400604 (West), Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.02.2004
Com. Reg. No.:	11-158377
Capital Investment / Paid-up Capital :	Rs. 5496.090 Millions
CIN No.: [Company Identification No.]	U24119MH2004PTC158377
TAN No.: [Tax Deduction & Collection Account No.]	PNEL03844B
PAN No.: [Permanent Account No.]	AACCB3880A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Specialty Chemicals.
No. of Employees :	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Maximum Credit Limit :	USD 25440000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is a subsidiary of Lanxess Deutschland GmbH, Germany. It is an established company having a moderate track record. Mr. Deepak Paduale, Head of Treasury Department has provided all information to us. The company has been continuously incurring loss from last two years of operation, which results in deterioration of the reserves of company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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

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. Deepak Paduale
Designation :	Head of Treasury Department
Contact No.:	91-22-25871000
Date :	23.05.2013

LOCATIONS

Registered Office/ Factory 1 :	Lanxess House, Plot No. A 162, A 163, A 164, Road No. 27, Wagle Estate, Opposite ITI College, MIDC, Thane-400604 (West), Maharashtra, India
Tel. No.:	91-22-25871000 / 25311234/21729200
Fax No.:	91-22-25455039
Email :	sreeram.venkey@lanxess.com
Website :	http://www.lanxess.com
Factory 2 :	29/3, Valayankulam Village, Aruppukottai Road, Madurai-625022, Tamilnadu, India
Factory 3 :	Post – Birlagram, Nagda, District Ujjain - 456331, Madhya Pradesh, India
Factory 4 :	Plot No. 748/2/A, GIDC, Jhagadia Industrial Estate, District Bharuch - 393110, Gujarat, India
Branch Office :	LOCATED AT: v Chennai v New Delhi v Kolkata

DIRECTORS

AS ON 22.08.2012

Name :	Dr. Rainier Van Roessel
Designation :	Chairman
Address :	Merkel Weg, 1A, Bergisch Gladbach, Bergisch Gladbach – 51427, Netherlands
Date of Birth/Age :	04.08.1957
Date of Appointment :	30.08.2007
DIN No.:	01599378

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	U24119MH2004PTC158377	LANXESS INDIA PRIVATE LIMITED	Director	30-08-07	04-06-07	Active	NO

Name :	Mr. Neelanjan Sarojkumar Banerjee
Designation :	Whole-time Director
Address :	7-C, Popular House, Eden Eoods, Pokhran Road No. 2, Thane - 400610
Date of Birth/Age :	02.03.1973
Date of Appointment :	09.08.2010
PAN No.:	ADIPB2496A
DIN No.:	02743360

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	U24119MH2004PTC158377	LANXESS INDIA PRIVATE LIMITED	Whole-time director	09-08-10	01-09-09	Active	NO

Name :	Dr. Joerg Strassburger
Designation :	Managing Director
Address :	Lanxess India Private Limited, Kolshet Road, Thane [West], Thane – 400607, Maharashtra, India
Date of Birth/Age :	29.02.1964
Date of Appointment :	10.03.2005
PAN No.:	BCMPS5383K
DIN No.:	00223839

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	L25200GJ1973PLC002436	STYROLUTION ABS (INDIA) LIMITED	Director	10-03-05	10-03-05	13-03-08	Active	NO
2	U24119MH2004PTC158377	LANXESS INDIA PRIVATE LIMITED	Managing director	10-03-05	10-03-05	-	Active	NO
3	U99999MH1956NPL009708	THE INDO GERMAN CHAMBER OF COMMERCE	Director	30-08-06	30-08-06	-	Active	NO
4	U74900MH2007FTC173361	LANXESS PURIFICATION PRIVATE LIMITED	Director	26-03-08	22-08-07	-	Amalgamated	NO

Name :	Mr. K.R.V. Subramanian
Designation :	Director
Address :	8, Rushilla, 17C, Carmichael Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	26.09.1933
Date of Appointment :	17.06.2004
DIN No.:	00005292

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	U19113MH1995PTC179724	BAYER MATERIALSCIENCE PRIVATE LIMITED	Director	13-06-96	13-06-96	-	Active	NO
2	U74140MH1996PTC099483	DSP BLACKROCK INVESTMENT MANAGERS PRIVATE LIMITED	Director	18-10-96	18-10-96	-	Active	NO
3	L99999MH1979PLC021796	ALKYL AMINES CHEMICALS LIMITED	Director	11-10-99	11-10-99	-	Active	NO
4	L85110KA1930PLC000124	ING VYSYA BANK LIMITED	Director	29-05-00	29-05-00	06-11-07	Active	NO
5	U27105GA1993PLC001355	SESA INDUSTRIES LIMITED	Director	28-03-01	28-03-01	22-10-08	Active	NO
6	L25200GJ1973PLC002436	STYROLUTION ABS (INDIA) LIMITED	Director	15-06-01	15-06-01	27-03-08	Active	NO
7	L13209GA1965PLC000044	SESA GOA LIMITED	Director	22-05-02	22-05-02	22-10-08	Active	NO
8	U24231AP1984PLC005146	MYLAN LABORATORIES LIMITED	Director	18-05-03	18-05-03	25-09-09	Active	NO
9	U24110MH2003PLC142216	BAYER POLYCHEM (INDIA) LIMITED	Director	15-09-03	15-09-03	-	Amalgamated	NO
10	U24119MH2004PTC158377	LANXESS INDIA PRIVATE LIMITED	Director	17-06-04	17-06-04	-	Active	NO
11	U45202MH1946PLC005262	NEW CONSOLIDATED CONSTRUCTION COMPANY LIMITED	Director	24-04-06	24-04-06	-	Active	NO
12	U22219TZ2007FTC014068	PRINTCARE INDIA PRIVATE LIMITED	Director	09-02-09	28-06-08	-	Active	NO
13	U80302DL2005NPL142330	AFS INTERCULTURAL PROGRAMS INDIA	Director	02-08-10	02-08-10	14-11-11	Active	NO
14	U67190MH2012PTC238252	DSP BLACKROCK PENSION FUND MANAGERS PRIVATE LIMITED	Director	26-11-12	26-11-12	-	Active	NO

Name :	Mr. Venkatesh Sankaran
Designation :	Director
Address :	10/58-59 Savita, Chedda Nagar, Chembur, Mumbai – 400089, Maharashtra, India
Date of Birth/Age :	05.10.1960
Date of Appointment :	10.03.2005
Date of Cessation :	15.04.2013
PAN No.:	ALSPS1160J
DIN No.:	00012517
Name :	Dr. Dattaprasad Talekar
Designation :	Director
Address :	Flat No. 403, Building No. 3, Wimbledon Park, Pokhran Road No. 1, Opposite JK School, Thane – 400602, Maharashtra, India
Date of Birth/Age :	28.08.1957
Date of Appointment :	10.03.2005
PAN No.:	AAZPT5132B
DIN No.:	00012595

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	U24119MH2004PTC158377	LANXESS INDIA PRIVATE LIMITED	Director	10-03-05	10-03-05	Active	NO
2	U74900MH2007FTC173361	LANXESS PURIFICATION PRIVATE LIMITED	Managing director	26-03-08	22-08-07	Amalgamated	NO

KEY EXECUTIVES

Name :	Mr. Sreeram Venkey
Designation :	Secretary
Address :	8, Siddhivinayaka Vignahara CHS Limited, Chedda Nagar, Chembur, Mumbai – 400089, Maharashtra, India
Date of Birth/Age :	03.07.1962
Date of Appointment :	01.07.2004
PAN No.:	AABPV4846Q
Name :	Mr. Deepak Paduale
Designation :	Head of Treasury Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 22.08.2012

Names of Equity Shareholders	No. of Shares
Lanxess Deutschland GMBH (Germany)	29509844
Lanxess Deutschland GMBH Jointly With Venkatesh Sankaran (Germany)	1
Lanxess Deutschland GMBH Jointly With Sreeram Venkey (Germany)	1
Lanxess Deutschland GMBH (Germany)	9998
Lanxess Deutschland GMBH Jointly With Venkatesh Sankaran (Germany)	1
Lanxess Deutschland GMBH Jointly With Dattaprasad Talekar (Germany)	1
Lanxess Deutschland GMBH (Germany)	206310000
Lanxess Deutschland GMBH (Germany)	404889000
TOTAL	640718846

Names of Preference Shareholders	No. of Shares
Lanxess Deutschland GmbH, Germany	115200000
TOTAL	115200000

AS ON 22.08.2012

Equity Shares Break Up	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Specialty Chemicals.

Products :

PRODUCT DESCRIPTION	ITC CODE
Benzaldehyde	2912
Benzyl Alcohol	2906
Thionyl Chloride	2812

Exports :

Products :

Finished Goods

Countries :

• Germany
• Singapore
• USA

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

PRODUCTION STATUS [As on 31.03.2011]

Particulars	Licensed and Installed Capacity	Actual Production
Manufacturing Chemicals and Chemical Intermediates	363569 MT and 20000 m3	207799
1. Installed Capacity mentioned above has been certified by the Management upon which auditors have relied. 2. Production is net off captive consumption for the year

GENERAL INFORMATION

Customers :	End Users
No. of Employees :	800 (Approximately)
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	Sharp and Tannan Associates Chartered Accountants
Address :	87, Nariman Bhavan, 227, Nariman Point, Mumbai – 400021, Maharashtra, India
PAN No.:	AAAFS1034J
Holding Company :	LANXESS Deutschland GmbH , Germany
Ultimate Holding Company :	LANXESS AG , Germany
Fellow Subsidiaries :	ALISECA GmbH, Germany LANXESS (Liyang) Polyols Company Limited, China LANXESS (Pty.) Limited, South Africa LANXESS Buna GmbH, Germany Lanxess Butyle Pte. Limited, Singapore LANXESS Central Eastern Europe s.r.o., Slovakia LANXESS Chemical (China) Company Limited, China LANXESS Chemicals S.L., Spain LANXESS Corporation, USA LANXESS Distribution GmbH, Germany LANXESS Elastomeres SAS, France LANXESS Elastômeros do Brazil SA, Brazil LANXESS Emulsion Rubber S.A.S., France LANXESS Elastomers B.V., Netherlands LANXESS Hong Kong Limited, Hong Kong LANXESS Industria de Produtos Quimicos e Plasticos Ltda., Brazil LANXESS International S.A., Switzerland LANXESS K.K., Japan LANXESS Korea Limited, South Korea LANXESS Limited, United Kingdom LANXESS N.V., Belgium LANXESS Pte. Limited, Singapore LANXESS Pty Limited, Australia LANXESS S.A. de C.V., Mexico LANXESS S.A., Argentina Lanxess S.A.S., France LANXESS S.R.L., Italy LANXESS Shanghai Pigments Company Limited, China LANXESS Sybron Chemicals Inc., USA LANXESS Wuxi Chemical Company Limited, China OOO Lanxess, Russia Rhein Chemie (Qingdao) Company Limited, China Rhein Chemie Argentina S.A., Argentina Rhein Chemie Corporation, USA Rhein Chemie Japan Limited, Japan Rhein Chemie Rheinau GmbH, Germany Rhein Chemie Uruguay S.A., Uruguay Saltigo GmbH, Germany

CAPITAL STRUCTURE

AFTER 22.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
677407000	Equity Shares	Rs.10/- each	Rs. 6774.070 Millions
150000000	Preference Shares	Rs.10/- each	Rs. 1500.000 Millions
	TOTAL		Rs. 8274.070 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
640718846	Equity Shares	Rs.10/- each	Rs. 6407.188 Millions
115200000	Preference Shares	Rs.10/- each	Rs. 1152.000 Millions
	TOTAL		Rs. 7559.188 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
467407000	Equity Shares	Rs.10/- each	Rs. 4674.070 Millions
150000000	Preference Shares	Rs.10/- each	Rs. 1500.000 Millions
	TOTAL		Rs. 6174.070 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
434408846	Equity Shares	Rs.10/- each	Rs. 4344.090 Millions
115200000	Preference Shares	Rs.10/- each	Rs. 1152.000 Millions
	TOTAL		Rs. 5496.090 Millions

AS ON 22.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
677407000	Equity Shares	Rs.10/- each	Rs. 6774.070 Millions
150000000	Preference Shares	Rs.10/- each	Rs. 1500.000 Millions
	TOTAL		Rs. 8274.070 Millions

Issued, Subscribed & Paid-up Capital : Rs. 7415.188 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		5496.090	5784.090	5474.938
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		866.000	1730.000	2018.780
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6362.090	7514.090	7493.718
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		6259.000	4304.000	2793.533
TOTAL BORROWING		6259.000	4304.000	2793.533
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		12621.090	11818.090	10287.251
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7957.000	7264.000	4530.268
Capital work-in-progress		1051.090	1018.090	3310.624
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		479.000	340.000	24.463
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1951.000	1633.000	1102.459
	Sundry Debtors	1960.000	1636.000	1449.947
	Cash & Bank Balances	305.000	434.000	545.311
	Other Current Assets	7.000	11.000	0.000
	Loans & Advances	2021.000	1657.000	714.410
Total Current Assets		6244.000	5371.000	3812.127
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1170.000	901.000	939.133
	Other Current Liabilities	1688.000	757.000	408.323
	Provisions	252.000	517.000	57.001
Total Current Liabilities		3110.000	2175.000	1404.457
Net Current Assets		3134.000	3196.000	2407.670
MISCELLANEOUS EXPENSES		0.000	0.000	14.226
TOTAL		12621.090	11818.090	10287.251

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operation	9964.000	7733.000	4745.714
		Other Income	NA	NA
		TOTAL (A)	NA	NA	4745.714
Less	EXPENSES
		Office Expenses	NA	NA	4595.558
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	NA	NA	4595.558
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		572.000	529.000	[Including Financial
					Expenses
Less	FINANCIAL EXPENSES (D)		497.000	228.000	And
					Depreciation ]
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		75.000	301.000
	Exceptional Items		174.000	(302.000)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		861.000	622.000
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(612.000)	(623.000)	150.156
Less	TAX (H)		252.000	(911.000)	99.105
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(864.000)	(288.000)	51.051
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	NA	2245.136	995.899
		Indenting Commission	NA	213.571	185.613
		Marketing Services	NA	11.858	13.158
		Manufacturing Services	NA	0.000	0.352
		Sale of Information Technology Services	NA	70.275	51.062
		Other Earnings	NA	0.000	10.433
	TOTAL EARNINGS		NA	2540.840	1256.517
	IMPORTS
		Raw Materials	NA	1040.392	592.254
		Packing Materials	NA	1.389	0.000
		Stores, Spares and Components	NA	2.737	0.937
		Traded Goods	NA	1327.031	1320.917
		Capital Goods	NA	230.738	465.215
	TOTAL IMPORTS		NA	2602.287	2379.323
	Earnings Per Share (Rs.)		(1.99)	(0.69)	0.23

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	1.07
Net Profit Margin (PBT/Sales)	(%)	(6.14)	(8.06)	NA
Return on Total Assets (PBT/Total Assets}	(%)	(4.17)	(4.80)	1.79
Return on Investment (ROI) (PBT/Networth)		(0.10)	(0.08)	0.02
Debt Equity Ratio (Total Debt /Networth)		0.98	0.57	0.37
Current Ratio (Current Asset/Current Liability)		2.01	2.47	2.71

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%	-----
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	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	No
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FACILITIES

(Rs. In Millions)

Unsecured Loan	31.03.2012	31.03.2011
Term Loans from Banks	455.000	525.000
Loans and Advances from Related Parties	3868.000	2250.000
Working Capital Loans from Banks	1116.000	374.000
Other Loans and Advances	820.000	1155.000
TOTAL	6259.000	4304.000

BACKGROUND

Subject, a private company incorporated in India in February, 2004, was formed as a subsidiary of LANXESS Deutschland GmbH, which in turn is a subsidiary of LANXESS AG, Germany, a Company listed in Frankfurt stock

exchange on 31st January, 2005. Their Company was formed to acquire the chemical and part of the polymer business of Bayer Group in India, pursuant to a global business reconstruction and realignment of the said business in 2004. Consequently the chemicals division of Bayer Material Science Private Limited (BMS) was demerged as per the order of the High Court with appointed date of 1st March, 2004, wherein all related assets and liabilities were acquired at book values and the effective date of the scheme of demerger was 1st July, 2004. The rubber chemical business of Bayer Polychem (India) Limited (BPCIL) was transferred to their Company on 1st July, 2004 through an Asset Deal (slump sale). Further the moveable assets and employee related assets and liabilities relevant to the restructuring was acquired by the Company on 1^st July, 2004 from Bayer Crop Science Limited (BCS).

FINANCIAL PERFORMANCE

SALES

The Company achieved a strong overall growth of 29% from Rs. 7,733 mio last year to Rs. 9,964 mio in the current year, driven by improved performance in all the 3 business segments - Performance Polymers, Advanced Intermediates and Performance Chemicals. Improved production levels at Jhagadia site for Ion exchange resins (ION) and Rubber Chemicals (RUC) also supported the sales growth, especially in exports which grew by 55%.

Growth in the user industries was subdued mainly in Automobile and Tire during the year, but most of the Business units improved their performance by gaining market share in local market. RUC gained good volumes and its sales was up by 57%. Rhein Chemie (RCH) has grown by 22% due to improved volumes over last year. Inorganic Pigments (IPG) registered a strong growth of 20% due to higher sale in the paint industry. ION sales grew multifold after the start of the green field plant at Jhagadia. Leather Chemicals (LEA) sales were up 6%. Advanced Industrial Intermediate (AII) business grew by 11% despite tough market conditions due to shut down and lower production levels of some key domestic customers in Gujarat on account of environmental issues.

Overall the sales growth was extremely good for the company, the start of new plants for High Performance Materials (HPM), Rhein Chemie (RCH), Material Protection Products (MPP) and improved production levels for RUC and ION plant has supported the growth immensely and resulted in strong sales performance during the year.

Sales for the first two months of the financial year 2012-2013 has seen a growth of 9% and the estimates for June 2012 is likely to be better. The Sales growth for the quarter April12 June12 is expected to be 12% vis-à-vis average Sales for the year 2011-12. Such increase is driven by improved performance in all the three segments i.e. Performance Polymers, Advanced Industrial Intermediates and Performance Chemicals. The major share is contributed by the segment Performance Chemicals where the sales out of production from Jhagadia Site have increased almost by 20% as compared to the year. As regards segment Advance Industrial Intermediates (this segment being the largest of the three segments), sales to Group Companies are likely to be higher by 17%. Finally the segment Performance Polymers is also seeing high sales due to commencement of production of Business Unit High Performance Chemicals at Jhagadia Site.

The sales growth over the last 8 years has recorded a CAGR of 92%.

FIXED ASSETS

· Computer Software

· Business Agency Rights

· Goodwill

· Customer Relationship

· Non-Compete Agreement

· Beneficial Chlorine Arrangement

· Roads and Buildings

· Plant and Machinery

· Equipments

· Computers

· Furniture and Fixtures

· Motor and Vehicles

· Land

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 55.52
UK Pound	1	Rs. 84.09
Euro	1	Rs. 71.67

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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	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		35

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.