MIRA INFORM REPORT

Report Date :

12.10.2013

IDENTIFICATION DETAILS

Name :	CHEMLINE INDIA LIMITED (w.e.f. 10.04.1995)
Formerly Known As :	CHEMLINE INDIA PRIVATE LIMITED (w.e.f. 24.02.1995) CHEMLINE MARKETING (INDIA) PRIVATE LIMITED
Registered Office :	F-1, Sarda Chamber-I, Central Market, D Blcok, Prashant Vihar, New Delhi - 110085
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.03.1993
Com. Reg. No.:	55-052378
Capital Investment / Paid-up Capital :	Rs. 4.470 Millions
CIN No.: [Company Identification No.]	U24200DL1993PLC052378
TAN No.: [Tax Deduction & Collection Account No.]	DELC06137F
PAN No.: [Permanent Account No.]	AAACC0504G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Chemicals.
No. of Employees :	Not Divulged

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 430000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a successor of proprietary concern started in the year 1980 as “Chemline”. Later in the year 1993 it was converted into private limited company. It is an established company having satisfactory track record. Trade relation are fair. Business is active. Payment terms reported to be usually correct. The company can be considered for business dealing 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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: “BB+”
Rating Explanation	Inadequate credit quality and high credit risk.
Date	29.09.2012

Rating Agency Name	CRISIL
Rating	Short term rating: “A4+”
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	29.09.2012

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.

INFORMATION PARTED BY

Name :	Mr. Shankar
Designation :	Office Executive
Contact No.:	91-11-27555992
Date :	11.10.2013

LOCATIONS

Registered Office :	F-1, Sarda Chamber-I, Central Market, D Blcok, Prashant Vihar, New Delhi – 110085, India
Tel. No. :	91-11-27555992 to 27555999
Fax No. :	91-11-43852186
E-Mail :	mail.bsc@gmail.com info@chemlineglobal.com sales@chemlineglobal.com sales2@chemlineglobal.com sales3@chemlineglobal.com exports@chemlineglobal.com info@chemineglobal.com
Website :	www.chemlineglobal.com
Area :	2500 sq.ft.
Location :	Owned
Factory :	Village Dhaturi, PO Bhigan, 54 Milestone, Sonipat - 131029, Haryana, India
Location :	Owned

DIRECTORS

As on 28.09.2012

Name :

Mr. Ravinder Nath Goel

Designation :

Director

Address :

431, Deepali Chowk, Pitam pura, Delhi – 110034, India

Date of Birth/Age :

03.11.1953

Date of Appointment :

03.03.1993

DIN No. :

01121622

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	U24200DL1993PLC052378	CHEMLINE INDIA LIMITED	Director	03/03/1993	03/03/1993	-	Active	NO
2	U24100DL2012PTC235416	CHEMLINE INFRASTRUCTURE TECHNOLOGIES PRIVATE LIMITED	Director	07/05/2012	07/05/2012	-	Active	NO

Name :

Mrs. Bharti Goel

Designation :

Director

Address :

431, Deepali Chowk, Pitam pura, Delhi – 110034, India

Date of Birth/Age :

11.08.1962

Date of Appointment :

03.03.1995

DIN No. :

01121636

Name :

Mr. Dinesh Chandra Gupta

Designation :

Director

Address :

B-1/92, Janak Puri, New Delhi – 110058, India

Date of Birth/Age :

20.08.1953

Date of Appointment :

05.01.2002

DIN No. :

01126454

Name :

Moti Lal Jain

Designation :

Director

Address :

B-99, Pundrik Vihar, Pitampura, New Delhi - 110034, India

Date of Birth/Age :

01.06.1932

Date of Appointment :

15.06.2010

DIN No. :

01093636

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	U29309DL1988PTC031683	ASMARO FABRICATORS PRIVATE LIMITED	Director	20/02/1991	20/02/1991	-	Active	NO
2	U24200DL1993PLC052378	CHEMLINE INDIA LIMITED	Director	15/06/2010	15/06/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Shankar
Designation :	Office Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2012

Names of Shareholders	No. of Shares
R.N.Goel	446440
Sri Krishna Goel	10
Saraswati Gupta	10
Abhay Kumar Kuchhal	10
Bharti Goel	500
Deepak Gupta	10
Shashi Gupta	10
Total	446990

As on 28.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Chemicals.
Exports :
Products :	Chemicals
Countries :	· Japan Germany UK USA Srilanka Bangladesh Uganda Korea Italy
Imports :
Products :	Raw Material
Countries :	Japan
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

Not Divulged

Bankers :

· State Bank of Travancore, Balaji Plaza, Sector - 8, Rohini, Delhi - 110085, India

The Hongkong and Shanghai Banking Corporation Limited, 25 Barakhamba Road, New Delhi - 110001, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Term loan from Banks	54.823	13.206
Vehicle Loans from Banks (Fully secured against hypothecation of vehicle)	6.301	2.995
SHORT TERM BORROWINGS
Loan repayable on demand From Bank
Cash Credit Limit (Secured against hypothecation of imported and indigenous raw materials, finished goods and book debts)	73.300	46.600
EPS from State Bank of Travancore (Secured by stock and trade debtors)	0.002	0.001
Total	134.426	62.802

Banking Relations :	--
Auditors :
Name :	Bansal Surinder and Company Chartered Accountants
Address :	201/8, Sushma Tower, Central Market, D- Block, Prashant Vihar, Delhi – 110085, India
Income-tax PAN of auditor or auditor's firm :	AKCPB3186C

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
446990	Equity Shares	Rs.10/- each	Rs. 4.470 Millions

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	4.470	4.470
(b) Reserves & Surplus	102.166	83.964
(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)	106.636	88.434
(3) Non-Current Liabilities
(a) long-term borrowings	61.124	16.201
(b) Deferred tax liabilities (Net)	1.403	1.467
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	62.527	17.668
(4) Current Liabilities
(a) Short term borrowings	73.302	46.601
(b) Trade payables	49.110	26.534
(c) Other current liabilities	6.333	1.407
(d) Short-term provisions	12.723	6.061
Total Current Liabilities (4)	141.468	80.603
TOTAL	310.631	186.705
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	57.660	53.179
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	4.673	2.589
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.010	0.010
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	3.546	1.699
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	65.889	57.477
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	58.462	39.097
(c) Trade receivables	103.609	66.610
(d) Cash and cash equivalents	54.095	8.419
(e) Short-term loans and advances	11.975	2.276
(f) Other current assets	16.601	12.826
Total Current Assets	244.742	129.228
TOTAL	310.631	186.705

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.470
2] Share Application Money		0.000
3] Reserves & Surplus		75.327
4] (Accumulated Losses)		0.000
NETWORTH		79.797
LOAN FUNDS
1] Secured Loans		43.457
2] Unsecured Loans		0.013
TOTAL BORROWING		43.470
DEFERRED TAX LIABILITIES		0.824
TOTAL		124.091
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		41.906
Capital work-in-progress		0.000
INVESTMENT		0.423
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.270
	Sundry Debtors	60.293
	Cash & Bank Balances	6.863
	Other Current Assets	0.000
	Loans & Advances	23.377
Total Current Assets		118.803
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	31.949
	Other Current Liabilities	3.181
	Provisions	1.911
Total Current Liabilities		37.041
Net Current Assets		81.762
MISCELLANEOUS EXPENSES		0.000
TOTAL		124.091

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	449.672	249.683	199.959
		Other Income	3.816	4.879	3.962
		TOTAL (A)	453.488	254.562	203.921
Less	EXPENSES
		Cost of materials consumed	369.179	191.860
		Employee Benefit Expense	19.633	14.947
		Other Administrative Expenses	36.136	32.154
		Extraordinary Items	0.000	0.037
		Changes in inventories of finished goods, work-in-progress and Stock-in-trade	(19.364)	(10.827)
		TOTAL (B)	405.584	228.171	182.510
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		47.904	26.391	21.411
Less	FINANCIAL EXPENSES (D)		12.888	7.618	5.806
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		35.016	18.773	15.605
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.129	5.676	4.921
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		26.887	13.097	10.684
Less	TAX (H)		8.684	4.460	4.033
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		18.203	8.637	8.819
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		81.464	72.827	64.008
	BALANCE CARRIED TO THE B/S		99.667	81.464	72.827
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	43.365	46.306	47.768
	TOTAL EARNINGS		43.365	46.306	47.768
	IMPORTS		34.911	28.103	25.905
	Earnings / (Loss) Per Share (Rs.)		40.72	19.32	19.73

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.01	3.39	4.32
Net Profit Margin (PBT/Sales)	(%)	5.98	5.25	5.34
Return on Total Assets (PBT/Total Assets}	(%)	8.79	7.11	6.65
Return on Investment (ROI) (PBT/Networth)		0.25	0.15	0.13
Debt Equity Ratio (Total Debt/Networth)		1.26	0.71	0.54
Current Ratio (Current Asset/Current Liability)		1.73	1.60	3.21

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	Yes
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	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	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	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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10340576	28/02/2012	23,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	25 BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA	B34323576
2	90044419	04/08/2012 *	148,000,000.00	STATE BANK OF TRAVANCORE	BALAJI PLAZA, SECTOR - 8, ROHINI, DELHI - 110085, INDIA	B56650211
3	90043572	02/06/2006 *	17,000,000.00	STATE BANK OF TRAVANCORE	BALAJI PLAZA, SECTOR - 8, ROHINI, DELHI - 110085, INDIA	-
4	90042863	25/10/2005 *	17,325,000.00	STATE BANK OF TRAVANCORE	ROHINI COMMERCIAL COMPLEX, BALAJI PLAZA; SEC - 8; ROHINI, DELHI - 110085, INDIA	-
5	90042312	25/08/2000 *	11,600,000.00	STATE BANK OF TRAVANCORE	ROHINI COMMERCIAL COMPLEX, BALAJI PLAZA; SEC - 8; ROHINI, DELHI - 110085, INDIA	-

* Date of charge modification

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
In Respect of Performance Guarantees Against EPCG License	0.684	0.684
Outstanding Guarantees furnished to Banks and Financial Institutions in respect of Letters of Credit Outstanding	5.643	11.236

FIXED ASSETS

· Air conditioner

Building

Computer

Electrical Equipment

EPABX

Factory Equipments

Furnitures and Fixtures

Generator

Land

Office Equipment

Plant and Machinery

Printer UPS

Research and Developments

Satellite Broad Band System

Telephone Equipments

U V Lamp -6 Transformer

Vehicles

Cycle

Lab Equipments

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.61.16
UK Pound	1	Rs.97.77
Euro	1	Rs.82.78

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
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.