MIRA INFORM REPORT

Report Date :

02.09.2013

IDENTIFICATION DETAILS

Name :	DEMECH CHEMICAL PRODUCTS PRIVATE LIMITED
Registered Office :	D-51, M.I.D.C., Near Tandulwadi Grampanchayat, At Post-Baramati – 413133, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	25.05.1993
Com. Reg. No.:	11-072134
Capital Investment / Paid-up Capital :	Rs.6.000 Millions
CIN No.: [Company Identification No.]	U25209PN1993PTC072134
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Chemical Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 208000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. 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 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.

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 :	D-51, M.I.D.C., Near Tandulwadi Grampanchayat, At Post-Baramati – 413133, Maharashtra, India
Tel. No.:	91-20-40775505
Fax No.:	91-20-40775528
E-Mail :	kd.borlikar@demechchemical.com
Website :	http://www.demechchemical.com

DIRECTORS

As on: 25.09.2012

Name :

Ms. Jyoti Digambar Bhide

Designation :

Director

Address :

A-502, Soham Eternity, Ashiyana Park 2, Aundh, Pune – 411007, Maharashtra, India

Date of Birth/Age :

31.12.1966

Date of Appointment :

25.05.1994

DIN No.:

00861859

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	U25209PN1993PTC072134	DEMECH CHEMICAL PRODUCTS PRIVATE LIMITED	Director	25/05/1994	25/05/1994	-	Active	NO
2	U29150MH1975PTC018562	DEMECH HEAVY EQUIPMENTS PRIVATE LIMITED	Director	26/09/1994	26/09/1994	-	Strike off	NO
3	U24119MH1969PTC014309	DECCAN MECHANICAL AND CHEMICAL INDUSTRIES PRIVATE LIMITED	Director	14/09/2007	14/09/2007	-	Active	NO
4	U29299PN2009PTC133536	CREATIVE ASHTECH POWER PROJECTS PRIVATE LIMITED	Director	16/08/2010	09/05/2009	01/01/2011	Active	NO
5	U29268PN2010PTC137822	DEMECH ESSCANO POWER INDIA PRIVATE LIMITED	Director	24/11/2010	24/11/2010	-	Active	NO

Name :

Mrs. Mamta Shafi Sayed

Designation :

Director

Address :

D-9, Ashoka Apartments, 3 Naylor Road, Pune – 411001, Maharashtra, India

Date of Birth/Age :

05.01.1946

Date of Appointment :

25.05.1993

DIN No.:

00157901

Name :

Mr. Satish Balkrishna Samant

Designation :

Additional Director

Address :

Flat No.1406, 14th Floor, B-Tower, Oberoi Woods, Mohan Gokhale Marg, Off W E Highway, Goregaon-East, Mumbai – 400063, Maharashtra, India

Date of Birth/Age :

15.04.1952

Date of Appointment :

25.10.2010

DIN No.:

03301575

Name :

Mr. Prabha Kashinath Natu

Designation :

Director

Address :

1107/A, Harekrishna Mandir Road, Model Colony, Pune – 411016, Maharashtra, India

Date of Birth/Age :

29.07.1940

Date of Appointment :

29.07.2007

DIN No.:

00109909

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	U19201MH1975PTC018563	ARVIND FOOTWEAR PTIVATE LIMITED	Director	20/09/1975	20/09/1975	-	Active	NO
2	U45309MH1978PTC020599	DEMECH OVERSEAS CONSTRUCTIONS PRIVATE LIMITED	Whole-time director	01/04/2008	01/10/1980	-	Active	NO
3	U25209PN1993PTC072134	DEMECH CHEMICAL PRODUCTS PRIVATE LIMITED	Director	29/09/2007	19/07/2005	-	Active	NO
4	U29150MH1975PTC018562	DEMECH HEAVY EQUIPMENTS PRIVATE LIMITED	Director	29/09/2007	26/01/2006	-	Strike off	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 25.09.2012

Names of Shareholders	No. of Shares
Deccan Mechanical and Chemical Industries Private Limited, India	144000
Demech Overseas Constructions Private Limited, India	144000
Jyoti Digambar Bhide	312000
Total	600000

Equity Share Break up (Percentage of Total Equity)

As on: 25.09.2012

Category	Percentage
Bodies corporate	48.00
Directors or relatives of directors	52.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Chemical Products.

GENERAL INFORMATION

Customers :

• National Thermal Power Corporation Limited
• NSPCL
• SAIL
• Tata Steel ( TISCO)
• BALCO
• JSW
• Jindal Thermal
• Indian Navy
• MSEB
• HAL

No. of Employees :

Not Available

Bankers :

• Bank of Baroda, Chakan Branch, Chakan, Pune - 410501, Maharashtra, India
• Bank of Baroda, SSI Branch, Pimpri, Pune - 411018, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
SHORT TERM BORROWINGS
Loan Repayable on demand
From Bank
Bank of Baroda, SME Branch – Chakan (CC)	4.823	4.521
Total	4.823	4.521
Note: The Company has taken the Working Capital Loan from Bank of Baroda which is secured by hypothecation of Stock and Book Debts and personal Guarantee of Mrs. J.D. Bhide-Director and it is further secured by Equitable Mortgage for the property of Land and Building situated at D-51, MTDC, Baramati to the extent of Working Capita! and Bank Guarantee Limits.

Banking Relations :	--
Auditors :
Name :	B.S. Mehta and Company Chartered Accountants
Address :	11/13, Botawala Building, 2nd Floor, Horniman Circle, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-22661255/ 22660275/ 22665275/ 22660821/ 22661557
Fax No.:	91-22-22665566
E-Mail :	bsmeo1@vsnl.net
PAN No.:	AAAFB1403A

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs.6.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs.6.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	6.000	6.000
(b) Reserves & Surplus	46.248	37.732
(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)	52.248	43.732
(3) Non-Current Liabilities
(a) long-term borrowings	1.348	1.408
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	1.348	1.408
(4) Current Liabilities
(a) Short term borrowings	4.823	4.521
(b) Trade payables	23.964	14.404
(c) Other current liabilities	6.354	2.976
(d) Short-term provisions	1.039	1.006
Total Current Liabilities (4)	36.180	22.907
TOTAL	89.776	68.047
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	8.370	7.149
(ii) Intangible Assets	0.234	0.284
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.514	0.387
(d) Long-term Loan and Advances	2.325	4.798
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	11.443	12.618
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	11.011	5.875
(c) Trade receivables	62.138	44.396
(d) Cash and cash equivalents	3.551	3.817
(e) Short-term loans and advances	1.633	1.341
(f) Other current assets	0.000	0.000
Total Current Assets	78.333	55.429
TOTAL	89.776	68.047

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		6.000
2] Share Application Money		0.000
3] Reserves & Surplus		31.629
4] (Accumulated Losses)		0.000
NETWORTH		37.629
LOAN FUNDS
1] Secured Loans		2.138
2] Unsecured Loans		1.500
TOTAL BORROWING		3.638
DEFERRED TAX LIABILITIES		0.000
TOTAL		41.267
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.736
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.396
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7.173
	Sundry Debtors	33.905
	Cash & Bank Balances	1.906
	Other Current Assets	0.000
	Loans & Advances	15.325
Total Current Assets		58.309
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.355
	Other Current Liabilities	3.781
	Provisions	11.038
Total Current Liabilities		23.174
Net Current Assets		35.135
MISCELLANEOUS EXPENSES		0.000
TOTAL		41.267

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL (A)	149.312	116.780	88.013
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	134.997	106.017	75.728
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14.315	10.763	12.285
Less	FINANCIAL EXPENSES (D)		0.471	0.338	0.316
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13.844	10.425	11.969
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.279	1.132	1.229
	PROFIT BEFORE TAX (E-F) (G)		12.565	9.293	10.740
Less	TAX (H)		4.049	3.190	3.439
	PROFIT AFTER TAX (G-H) (I)		8.516	6.103	7.301
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		36.101	29.998	22.697
	BALANCE CARRIED TO THE B/S		44.617	36.101	29.998
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	5.084	4.588	3.250
	TOTAL EARNINGS		5.084	4.588	3.250
	Earnings Per Share (Rs.)		14.19	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.70	5.23	8.30
Return on Total Assets (PBT/Total Assets}	(%)	14.08	13.73	16.77
Return on Investment (ROI) (PBT/Networth)		0.24	0.21	0.29
Debt Equity Ratio (Total Debt/Networth)		0.12	0.14	0.10
Current Ratio (Current Asset/Current Liability)		2.19	2.42	2.52

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	No

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Deposits
From Dealer	1.348	1.408
Total	1.348	1.408

Note:

The Registered Office of the company has been shifted from 1107 A, Harekrishna Mandir Road, Pune – 411016, Maharashtra, India to the present address w.e.f. 22.09.2011

TURNOVER AND PERFORMANCE

During the year, the Company could achieve a sale of Rs.149.300 Millions (excluding Excise Duty Rs.11.964 Millions) as compared to previous year's sale amounting to Rs.116.800 Millions (excluding Excise Duty Rs.9.012 Millions).

As part of "Marketing Plan" during the year it was decided that we should try to bag large Project Orders by doing this we shall fuel better growth rate.

In view of the above they had bagged two large Project Orders in GMR- Angul, worth Rs 10.000 Millions and Dripiex-MRPL worth Rs.8.500 Millions. Apart from this we have order booking of Rs.57.200 Millions from SEPCO - GMR site. We also bagged three large flooring orders from NPCIL-Rajasthan (Rs 3.700 Millions), Rupa infra (Rs. 3.600 Millions.) and India Security press (Rs. 2.300 Millions) Due to these Project Orders we could attain sustainable growth.

This financial year we are planning to focus on project orders from upcoming projects of Power and Steel Plant

The directors are hopeful of 50% increase in the sale during the current financial year.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90082628	02/08/2012 *	55,000,000.00	Bank of Baroda	CHAKAN BRANCH, CHAKAN, PUNE, MAHARASHTRA - 410501, INDIA	B44859148
2	90085262	03/02/2000 *	8,500,000.00	BANK OF BARODA	SPL SSI BRANCH, PIMPRI, PUNE, MAHARASHTRA - 411018, INDIA	-
3	90084476	22/06/1996 *	1,000,000.00	BANK OF INDIA	PUNE INDUSTRIAL FINANCE, PUNE, MAHARASHTRA - 411018, INDIA	-

FIXED ASSETS

Tangible Assets

• Land (Lease Hold)
• Factory Building
• Plant and Machinery
• Furniture and Fixture
• Vehicles
• Office Equipment
• Electrical Installation
• Computer

Intangible Assets

• Computer Software

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.66.57
UK Pound	1	Rs.103.34
Euro	1	Rs.88.16

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		45

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.