MIRA INFORM REPORT

Report Date :

14.09.2013

IDENTIFICATION DETAILS

Name :	OMKAR SPECIALITY CHEMICALS LIMITED
Registered Office :	B-34, MIDC, Badlapur (East), Thane-421503, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	24.02.2005
Com. Reg. No.:	11-151589
Capital Investment / Paid-up Capital :	Rs.196.280 Millions
CIN No.: [Company Identification No.]	L24110MH2005PLC151589
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturing and Sale of Chemicals.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 5100000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Financially company is doing well. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal business dealings on a 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.

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: BBB+
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation.
Date	September 2013

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 DECLINED BY

Name :	Mr. Vaman
Designation :	Account Manager
Contact No.:	9-251-2697340
Date :	11.09.2013

LOCATIONS

Registered / Corporate Office :	B-34, MIDC, Badlapur (East), Thane-421503, Maharashtra, India
Tel. No.:	91-251-2697340/48/49/2690651
Fax No.:	91-251-2691572/2697347
E-Mail :	care@omkarchemicals.com omkarchem@vsnl.com info@omkarchemicals.com
Website:	http://www.omkarchemicals.com
Factory 1 :	Plot No. W-92(A), MIDC, Badlapur, Thane-421503, Maharashtra, India
Tel. No.:	91-251-2698840
Fax No.:	91-251-2691662
Factory 2 :	Plot No. F-24, MIDC, Badlapur, Thane-421503, Maharashtra, India
Tel. No.:	91-251-2691852
Fax No.:	91-251-2697673
Factory 3 :	Plot No. B-34, MIDC, Badlapur, Thane-421503, Maharashtra, India
Tel. No.:	91-251-2697340/2690651
Fax No.:	91-251-2697347/2691572
Factory 4 :	Plot No. F-10/1, MIDC, Badlapur, Thane-421503, Maharashtra, India
Tel. No.:	91-251-2696434/2696432
Factory 5 :	D27/5, MIDC Lote Parshuram Chiplun, Ratnagiri, Maharashtra, India

DIRECTORS

As on 31.03.2013

Name :	Mr. Pravin S. Herlekar
Designation :	Chairman cum Managing Director
Name :	Mr. Omkar P. Herlekar
Designation :	Whole Time Director
Name :	Prof. Suhas M. Rane
Designation :	Non Executive - Independent Director
Date of Birth:	03.12.1951
Date of appointment:	25.03.2010
Name :	Mr. Subhash P. Mali
Designation :	Non Executive - Independent Director
Name :	Dr. Vikas N. Telvekar
Designation :	Non Executive - Independent Director
Name :	Mr. Siddharth S Sinkar
Designation :	Non Executive - Non Independent Director (Appointed w.e.f. 5th April, 2012)
Name :	Mr. Amit A. Pandit
Designation :	Non Executive - Independent Director
Date of Birth:	30.03.1971
Date of appointment:	25.03.2010

KEY EXECUTIVES

Name :	Mr. Vaman
Designation :	Account Manager
Name :	Mr. Nirav K. Momaya
Designation :	Company Secretary and Compliance Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2013

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	11845325	60.35
Sub Total	11845325	60.35
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	11845325	60.35
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	703270	3.58
Foreign Institutional Investors	323569	1.65
Sub Total	1026839	5.23
(2) Non-Institutions
Bodies Corporate	2655587	13.53
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1310144	6.67
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	2739539	13.96
Any Others (Specify)	50570	0.26
Clearing Members	15944	0.08
Non Resident Indians	34626	0.18
Sub Total	6755840	34.42
Total Public shareholding (B)	7782679	39.65
Total (A)+(B)	19628004	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	19628004	0.00

SHAREHOLDING BELONGING TO THE CATEGORY "PROMOTER AND PROMOTER GROUP"

Sl.No.	Name of the Shareholder	Details of Shares held		Details of warrants		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)	Number of warrants held	As a % total number of warrants of the same class
1	Pravin Shivdas Herlekar	91,44,480	46.59	0	0.00	44.44
2	Anjali Pravin Herlekar	12,08,240	6.16	0	0.00	5.87
3	Herlekar Omkar Pravin	5,77,599	2.94	0	0.00	2.81
4	Rishikesh Pravin Herlekar	5,76,410	2.94	0	0.00	2.80
5	Pravin Shivdas Herlekar	2,09,606	1.07	190000	20.00	1.94
6	Omkar Pravin Herlekar	91,450	0.47	190000	20.00	1.37
7	Shivdas Ramrao Herlekar	22,440	0.11	0	0.00	0.11
8	Omkar Pravin Herlekar	15,000	0.08	0	0.00	0.07
9	Rishikesh Pravin Herlekar	100	0.00	190000	20.00	0.92
10	Svaks Biotech India Private Limited		0.00	380000	40.00	1.85
	Total	1,18,45,325	60.35	950000	100.00	62.18

SHAREHOLDING BELONGING TO THE CATEGORY "PUBLIC" AND HOLDING MORE THAN 1% OF THE TOTAL NO. OF SHARES

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares
1	Rohinton Soli Screwvala	1000000	5.09
2	Axis Bank Limited	700000	3.57
3	Celestial Tradechem Private Limited	600928	3.06
4	Premier Investment Fund Limited	323569	1.65
5	Vivid Finance & Holdings Private Limited	229000	1.17
	Total	2853497	14.54

SHAREHOLDING BELONGING TO THE CATEGORY "PUBLIC" AND HOLDING MORE THAN 5% OF THE TOTAL NO. OF SHARES

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares
1	Rohinton Soli Screwvala	1000000	5.09
	Total	1000000	5.09

DETAILS OF LOCKED-IN SHARES

Sl. No.	Name of the Shareholder	No. of Shares	Locked-in Shares as % of Total No. of Shares
1	Omkar Pravin Herlekar	15,000	0.08
2	Pravin Shivdas Herlekar	2,02,330	1.03
3	Omkar Previn Herlekar	88,329	0.45
4	Herlekar Omkar Previn	5,77,599	2.94
5	Rishikesh Pravin Herlekar	100	0.00
6	Rishikesh Pravin Herlekar	5,76,410	2.94
7	Pravin Shivdas Herlekar	91,44,480	46.59
	Total	1,06,04,248	54.03

BUSINESS DETAILS

Line of Business :

Manufacturing and Sale of Chemicals.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Selenium Dioxide	28112990
Methyl Iodide	29033930
Benezene Seleninic Anhydride	29310090

PRODUCTION STATUS (AS ON : 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Iodine Compounds	Kgs/Lakhs	435000	379509
Selenium Compounds	Kgs/Lakhs	75000	71728
Molybdenum Compounds	Kgs/Lakhs	70000	68536
Others	Kgs/Lakhs	170000	168526
Total	Kgs/Lakhs	750000	688299

NOTE:

a) Installed capacities are interchangeable for different compounds.

b) Licensed capacities is not applicable.

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

• Bank of Baroda
• Axis Bank Limited
• Citi Bank N.A.

Facilities :

Secured Loan

31.03.2013

(Rs. in Millions)

31.03.2012

(Rs. in Millions)

Long-term Borrowings

From Bank

299.005

46.766

Short-term borrowings

From Bank

710.868

691.670

Total

1009.873

738.436

NOTE:

Term loans /ECB loan

From Banks were secured by way of hypothecation of stock, spare parts and book debts and first charge on land, building and plant and machinery present and future situated at Plot No. F-24, Plot No. W-92(A), W-94(A), W-95(A), Plot No. F-10/1 Plot No. F-9, Plot No. B-34, MIDC, Badlapur, District Thane and Plot No. D 27/5, Lote Parshuram Industrial Area, Taluka - Khed, Ratnagiri in Maharashtra.

Personal guarantee of the promoter directors of the company

Working Capital Loans

From Banks were secured by way of hypothecation of stock, spare parts and book debts and first charge on land building andplant and machinery present and future situated at Plot No. F-24, Plot No. W-92A, W-94A, W-95A, Plot No B-34, Plot No. F-10/1, Plot No. F-9, MIDC, Badlapur, District Thane and Plot No. D 27/5, Lote Parshuram Industrial Area, Taluka - Khed, Ratnagiri in
Maharashtra.

Personal guarantee of the promoter directors of the company

Secured Borrowings from banks, repayable on demand, includes Buyers Credit of Rs 197.216 Millions (Previous year: Rs 279.573 Millions)

Other loans are repayable on demand.

*Current maturities of long term borrowings are considered in note no. 7- Other Current liabilities

Term Loan Repayment Schedule

(Rs. In Millions)

Repayable within	Term Loan	ECB	Total
1 Year	185.00	-	18.500
1-2 Years	185.00	675.00	86.000
2-3 Years	63.82	900.00	96.382
After 3 years	-	1,166.23	1,16.623
Total	433.82	2,741.23	3,17.505

Banking Relations :	--
Auditors :
Name :	Siddharth Sinkar and Associates Chartered Accountants
Address :	46, Shrikrishna Nagar, Borivali (East), Mumbai, Maharashtra, India
Tel No.:	91-22-28975829
Email:	jpjassociates@rediffmail.com jpjoffice@rediffmail.com
Subsidiary - Common Control Exists:	Rishichem Research Limited Desh Chemicals Private Limited Lasa Laboratory Private Limited Urdhwa Chemicals Company Private Limited
Other Related:	Svaks Biotech India Private Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19628004	Equity Shares	Rs.10/- each	Rs. 196.280 Millions

NOTES

The Movements of Share capital is set out below:

	As At March 31, 2013
Authorized	No. of Shares	Rs. In Millions
Authorised Share Capital at the beginning of the Year	25,000,000	250.000
Authorised Share Capital at the end of the year	25,000,000	250.000
Issued, Subscribed and Paid up capital
At the beginning of the Year	19,628,004	196.280
At the end of the Year	19,628,004	196.280

Details of shareholders holding more than 5% shares in the company

	As At March 31, 2013
Particulars	No. of Shares	Rs. In Millions
Pravin Herlekar*	9351810	93.518
Anjali Herlekar	1208240	12.082
Rohinton Soli Screwvala	1000000	10.000
TAIB Securities Mauritius Limited	--	--
Axis Bank Limited**	--	--
TOTAL	11560050	115.600

Note:

Of the above equity shares:-

Nominal value of Rs 100/- per Equity Share sub-divided into Rs 10/- per Equity Share, during the Financial Year 2010-2011.

During the financial year 2009-2010, 1126600 Equity shares of Rs. 100/- each have been alloted as fully paid-up by way of bonus shares by way of capitalization of Profits & Security Premium A/c.

During the financial year 2010-2011, 8100004 Equity shares of Rs. 10/- each were issued at premium of Rs. 88/- each by public offer.

*4) Mr. Pravin S. Herlekar has acquired 2276 equity shares on 22nd March, 2013. However, the same is not reflected in the beneficial position received from the depositories as on 30th March, 2013.

**5) Shares held less than 5% as on 31st March, 2013.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	196.280	196.280	196.280
(b) Reserves & Surplus	1035.861	862.069	726.117
(c) Money received against share warrants	35.625	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1267.766	1058.349	922.397
(3) Non-Current Liabilities
(a) long-term borrowings	299.005	46.766	82.729
(b) Deferred tax liabilities (Net)	11.267	12.276	6.499
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	11.323	10.259	4.141
Total Non-current Liabilities (3)	321.595	69.301	93.369
(4) Current Liabilities
(a) Short term borrowings	864.891	691.670	328.988
(b) Trade payables	276.593	252.630	215.934
(c) Other current liabilities	39.197	65.811	59.903
(d) Short-term provisions	55.418	28.901	104.425
Total Current Liabilities (4)	1236.099	1039.012	709.250
TOTAL	2825.460	2166.662	1725.016
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	439.334	362.538	205.524
(ii) Intangible Assets	5.311	0.349	0.000
(iii) Capital work-in-progress	401.797	304.755	175.555
(iv) Intangible assets under development	0.150	1.771	0.378
(b) Non-current Investments	108.639	21.208	13.908
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	274.067	99.829	10.201
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1229.298	790.450	405.566
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	635.605	526.625	300.775
(c) Trade receivables	614.711	384.852	272.144
(d) Cash and cash equivalents	215.747	314.036	412.141
(e) Short-term loans and advances	4.310	40.801	232.756
(f) Other current assets	125.789	109.898	101.634
Total Current Assets	1596.162	1376.212	1319.450
TOTAL	2825.460	2166.662	1725.016

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2015.312	1669.480	1067.600
		Other Income	57.940	36.986	5.346
		TOTAL (A)	2073.252	1706.466	1072.946
Less	EXPENSES
		Cost of Material Consumed	1193.571	1077.333	716.890
		Purchase of stock in trade	350.926	181.796	98.873
		Changes in inventories of Finished Goods, Work in progress and Stock in Trade	(180.851)	(115.710)	(69.827)
		Employee benefits expense	80.054	63.834	32.071
		Other Expenses	208.345	130.293	75.985
		TOTAL (B)	1652.045	1337.546	853.992
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		421.207	368.920	218.954
Less	FINANCIAL EXPENSES (D)		74.316	80.953	52.762
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		346.891	287.967	166.192
Less/ Add	DEPRECIATION/ AMORTISATION (F)		56.843	56.209	19.086
	PROFIT BEFORE TAX (E-F) (G)		290.048	231.758	147.106
Less	TAX (H)		82.038	67.291	45.702
	PROFIT AFTER TAX (G-H) (I)		208.010	164.467	101.404
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		214.960	94.008	30.492
Less	APPROPRIATIONS
		Proposed Dividend	29.442	24.535	19.628
		Tax on Dividend	4.776	3.980	3.260
		Transfer to General Reserve	15.000	15.000	15.000
	BALANCE CARRIED TO THE B/S		373.752	214.960	94.008
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	581.597	257.576	122.657
	TOTAL EARNINGS		581.597	257.576	122.657
	IMPORTS
		Raw Materials	651.318	741.004	268.596
		Capital Goods	4.329	2.419	2.158
	TOTAL IMPORTS		655.647	743.423	270.754
	Earnings Per Share (Rs.)
	Basic		10.60	8.38	7.95
	Diluted		10.59	8.38

QUARTERLY RESULTS

PARTICULARS	30.06.2013 1^st Quarter
Audited / UnAudited
Net Sales	184.700
Total Expenditure	172.200
PBIDT (Excl OI)	12.500
Other Income	2.400
Operating Profit	14.800
Interest	6.200
Exceptional Items	0.000
PBDT	8.600
Depreciation	4.000
Profit Before Tax	4.600
Tax	0.200
Provisions and contingencies	0.000
Profit After Tax	4.600
Extraordinary Items	0.000
Prior Period Expenses	0.000
Other Adjustments	0.000
Net Profit	4.600

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	10.03	9.64	9.45
Net Profit Margin (PBT/Sales)	(%)	14.39	13.88	13.78
Return on Total Assets (PBT/Total Assets}	(%)	12.53	12.60	9.58
Return on Investment (ROI) (PBT/Networth)		0.23	0.22	0.16
Debt Equity Ratio (Total Debt /Networth)		0.92	0.70	0.45
Current Ratio (Current Asset/Current Liability)		1.29	1.32	1.86

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS:

Particulars	31.03.2013	31.03.2012	31.03.2011
	(Rs. In Millions)
Current maturities of long-term debt	18.500	41.789	41.847
Total	18.500	41.789	41.847

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	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	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

PERFORMANCE REVIEW:

The Revenue from Operations for the financial year has gone up to Rs. 2015.312 Millions as against Rs. 1669.480 Millions in previous year, registering a growth of 21%. The Profit after tax has also gone up to Rs. 208.010 Millions in current year from Rs. 164.467 Millions in previous year, registering a growth of 26%.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Scenario:

Global and Indian Chemical Industry

The chemical industry has traditionally grown in developed countries of the West and Japan. However, changing market dynamics over the last ten years have resulted in global chemical production, moving to Asia, particularly in China and India. Speciality chemicals, which are consumed by the diverse end product markets, are the key contributors to this changing landscape. It is because the rise in the use of speciality chemicals has led to a higher level of commoditization, thereby compelling manufacturers to focus more on cost reduction.

The production levels in Asia have surpassed those in Europe, with China becoming the world's second largest chemical producer, replacing Germany. In terms of volume of production of chemicals, India ranks the third-largest producers in Asia after China and Japan and eighth-largest across the globe. With the current size of approximately USD 108 billion, the Indian chemical industry accounts for about 7 percent of the Indian GDP and 14 percent in the overall index of industrial production. Despite its large size, the Indian chemical industry represents only about 3 percent of the global chemical industry.

Speciality Chemical Segment

Speciality chemicals are synthetic products used as intermediates to manufacture various products ranging from pharmaceuticals to flavours and essences, and from agrochemicals to detergents.

Unlike other chemical products, the speciality chemical segment has greater flexibility, small production volume and vast product categories.

Speciality chemicals are high-value added chemicals used to manufacture a wide range of products, including pharmaceuticals, fine chemicals, additives, advanced polymers, adhesives, sealants, paints, pigments and coatings.

The demand from end-user industries has improved the growth prospects of several speciality chemicals segments in Asia. Currently, the Indian speciality chemicals industry is still at a nascent stage and is expected to grow rapidly over next couple of years as it moves toward higher-quality products and applications, in both industrial and consumer segments.

The demand for environment friendly solutions and stringent emission control legislations has opened up new frontiers especially for the speciality chemical industry. The greater emphasis on energy efficiency and curbing greenhouse emissions has also contributed to demand for speciality chemical products, such as photovoltaic solar cells, electrode materials, insulating materials and chemicals.

Indian chemical industry - Growth Scenario

The global economic environment has remained sluggish as growth in the major advanced economies decelerated due to a significant negative short-run effect of fiscal consolidation on domestic output, thereby resulting in subdued trade and languid labour markets, restraining the overall demand. Persistent recessionary conditions in the United States and Europe, and the fragility in some global key end markets have led to sinking demand for chemical products. Chemical companies located in the Asia-Pacific geographies faced the brunt of the economic conundrum mainly due to weaker demands in the West.

Amidst low levels of growth in the developed economies, global demand for chemicals is likely to remain downcast. However, with manufacturers shifting their focus on emerging economies, Indian chemical industry is poised to increase its share of global chemical industry pie.

Primarily being regarded as producer of basic chemicals, Indian chemical industry has forged ahead to earn a global repute as a manufacturer of speciality and high value-added chemicals on the back of strong R&D.

With significant labor cost advantages, rising domestic demand in end-user segments, expanding exports fueled by improved export competitiveness, new market opportunities, infrastructure investments along with regulatory reforms and the federal government's fiscal incentives— the growth of the Indian chemical industry is expected to continue.

According to estimates, the India's chemical industry is slated to grow at 11 percent year-on-year, to USD 134 billion by 2015 and USD 244 billion by 2017. India is also expected to evolve as a global chemical manufacturing hub.

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Short-term borrowings
Short term loan from financial institutions	6.879	0.00
Loans from banks	147.144	0.000
Total	154.023	0.000

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10437165	12/07/2013	150,000,000.00	CITIBANK N. A.	FIRST INTERNATIONAL FINANCIAL CENTRE, 9TH FLOOR, PLOT NO.C-54, C-55, G BLOCK, BKC, BANDRA (E), MUMBAI, MAHARASHTRA - 400051, INDIA	B79749206
2	10388704	24/06/2013 *	630,000,000.00	BANK OF BARODA	RAS AL KHAIMAH BRANCH, SH RASHID BUILDING, ALI BIN ABI TALIB ROAD, BUR DUBAI, - 0, UNITED ARAB EMIRATES	B80350721
3	10277060	24/06/2013 *	57,300,000.00	BANK OF BARODA	FORT UNIVERSITY BRANCH, MUMBAI, MUMBAI, MAHARASH TRA - 400001, INDIA	B80350317
4	10172462	23/08/2011 *	934,600,000.00	BANK OF BARODA	FORT, UNIVERSITY BRANCH, MUMBAI, MUMBAI, MAHARASH TRA - 400001, INDIA	B22886436
5	10143580	24/06/2013 *	1,060,000,000.00	BANK OF BARODA	FORT UNIVERSITY BRANCH, MUMBAI, MUMBAI, MAHARASHTRA - 400001, INDIA	B80349921
6	10143573	24/06/2013 *	6,600,000.00	BANK OF BARODA	FORT UNIVERSITY BRANCH, MUMBAI, MUMBAI, MAHARASHTRA - 400001, INDIA	B80349194
7	10143576	24/06/2013 *	13,600,000.00	BANK OF BARODA	FORT UNIVERSITY BRANCH, MUMBAI, MUMBAI, MAHARASHTRA - 400001, INDIA	B80349509

Note: * Date of charge modification

STANDALONE FINANCIAL RESULT FOR THE QUARTER ENDED 30^TH JUNE 2013

(Rs. In Millions)

Particulars	Quarter Ended 30 June 2013 (Unaudited)
(a) Net Sales/ Income from operation	451.942
(b) Other Operating Income	--
Total Income	451.942
2. Expenditure
a. Increase(-) /Decrease(+) in Stock in trade and W.I.P.	66.893
b. Consumption of Raw-Materials	188.126
c. Purchase of Traded Goods	48.459
d. Employees Cost	24.618
e. Depreciation	14.895
f. Other Expenditure	46.164
g. Total	389.155
3. Profit(+)/ Loss(-) from Operations before other Income Interest and Exceptional Item(1-2)	62.787
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss)	6.462
5. Profit(+)/ Loss(-) before Interest and Exceptional Item	69.249
6. Interest	22.579
7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6)	46.670
8. Exceptional Items	--
9. Profit(+)/ Loss (-) from ordinary activities before Tax (7-8)	46.670
10. Tax Expenses	11.627
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10)	35.043
12. Extraordinary Items (Net of Tax Expense)	---
13. Net Profit (+)/ Loss(-) for the period (11-12)	35.043
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share)	196.280
15. Reserves excluding Revaluation Reserves as per Balance Sheet of Previous Accounting Year	---
16. Earning per Share (EPS)
a) Basic and diluted EPS before extraordinary items for the period, for the year to date and for the previous year (not annualised)	1.79
b) Basic and diluted EPS after extraordinary items for the period, for the year to date and for the previous year (not annualised)	1.70
17. Public Shareholding
Number of Shares	7782679
% of Share holding	39.65%
18. Promoters and promoter group Shareholding
a) Pledged/Encumbered
- Number of shares	--
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	--
- Percentage of shares (as a % of the total share capital of the company)	--
b) Non-encumbered
- Number of shares	11845325
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00%
- Percentage of shares (as a % of the total share capital of the company)	60.35%

Note:

1. The above unaudited financial results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 13th August 2013, and have been subjected to limited Review by the Statutory Auditors.

2. The Company operated in one segment i.e. Sale of Chemicals. All other activities of the company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Accounting Standard-17 as notified by the companies (Accounting Standards) Rules, 2006.

3. During the quarter, the company has acquired interest in 6(six) Equity Shares of M/s Rishichem Research Limited so as to make it 100 % subsidiary company.

4. The Previous quarter's/year's figures have been regrouped/rearranged wherever necessary to make it comparable with the current quarter/year.

5. There were no investor complaints pending to be resolved at the beginning of the quarter. During the quarter no complaint was received. Accordingly there were no investor complaints pending to be resolvedt* the end of the quarter.

CONTINGENT LIABILITIES (AS ON 31.03.2013):

Claims against the Company not acknowledged as debt: Rs Nil (Previous year: Rs Nil)

The Company has given guarantee to the bank on behalf of its Wholly Owned Subsidiary, Urdhwa Chemicals Company Private Limited of Rs 270.000 Millions (Previous year Rs 210.000 Millions) and Lasa Laboratory Private Limited of Rs 233.500 Millions (Previous Year Rs Nil)

FIXED ASSETS

• Leasehold Land
• Factory Building
• Plant and Machinery
• Electrical Installation
• Furniture and Fixture
• Office Equipments
• Motor Car and Cycle

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. 63.79
UK Pound	1	Rs. 100.73
Euro	1	Rs. 84.67

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.