MIRA INFORM REPORT

Report Date :

16.09.2013

IDENTIFICATION DETAILS

Name :	NAMASTEY CHEMICALS LIMITED
Registered Office :	9-Shankheshwar Society, Behind L.G.Park, Manjalpur, Vadodara - 390011 Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	10.05.2000
Com. Reg. No.:	04-037978
Capital Investment / Paid-up Capital :	Rs. 24.000 Millions
CIN No.: [Company Identification No.]	U24231GJ2000PLC037978
TAN No.: [Tax Deduction & Collection Account No.]	BRDN00487E
PAN No.: [Permanent Account No.]	AABCN1187B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Supplier of bulk drugs, drugs intermediates, tablet, capsule, syrup, injection, etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 42000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a small company in its field. It has moderate track record. It has incurred loss from its operations during 2012 as in past years. There appears some accumulated losses. However, trade relations are fair. Business is active. Payment terms are slow. 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 – 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 :	9-Shankheshwar Society, Behind L.G.Park, Manjalpur, Vadodara - 390011 Gujarat, India
Tel. No. :	Not Available
Fax No. :	Not Available
E-Mail :	info@namasteychem.com
Website :	www.namastechem.com
Factory :	R.S. No.255, Block No.353, Village Ekalbara, Taluka Padra, Vadodara – 391440, Gujarat, India
Tel. No.:	91-2662-244480
Fax No.:	91-2662-244380
Vadodara Office :	“Gokul”, 1^st Floor, 23 Vishwas Colony, R. C. Dutt Road, Vadodara – 390007, Gujarat, India
Tel. No.:	91-265-23228464 / 47
Fax No. :	91-265-2326121
Email :	info@namastechem.com

DIRECTORS

As on 29.09.2012

Name :

Mr. Vimal Jayendrabhai Lakhani

Designation :

Managing Director

Address :

9, Shankheshwar Nagar Society, Behind L.G.Park, Manjalpur, Vadodara - 390011, Gujarat, India

Date of Birth/Age :

05.04.1976

Date of Appointment :

01.04.2008

DIN No. :

00073448

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	U24231GJ2000PLC037978	NAMASTEY CHEMICALS LIMITED	Managing director	01/04/2008	11/04/2002	-	Active	NO

Name :

Mr. Chetan Jayendrabhai Lakhani

Designation :

Whole-Time Director

Address :

9, Shankheshwar Nagar Society, Behind L.G.Park, Manjalpur, Vadodara - 390011, Gujarat, India

Date of Birth/Age :

16.09.1970

Date of Appointment :

01.04.2008

DIN No. :

00073456

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	U24231GJ2000PLC037978	NAMASTEY CHEMICALS LIMITED	Whole-time director	01/04/2008	10/05/2000	-	Active	NO

Name :

Mr. Ketan Jayendrabhai Lakhani

Designation :

Director

Address :

9, Shankheshwar Nagar Society, Behind L.G.Park, Manjalpur, Vadodara - 390011, Gujarat, India

Date of Birth/Age :

09.07.1972

Date of Appointment :

24.05.2000

DIN No. :

00558760

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	U24231GJ2000PLC037978	NAMASTEY CHEMICALS LIMITED	Director	24/05/2000	24/05/2000	-	Active	NO
2	U01210GJ2011PTC064279	VATSALYA DAIRY PROJECT PRIVATE LIMITED	Director	05/03/2011	05/03/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Chetan J. Lakhani	245000
Ketan J. Lakhani	245000
Vimal J. Lakhani	715000
Jayshreeben J. Lakhani	1165000
Binduben C. Lakhani	10000
Meghana K. Lakhani	10000
Punita V. Lakhani	10000
Total	2400000

As on 29.09.2012

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 and Supplier of bulk drugs, drugs intermediates, tablet, capsule, syrup, injection, etc.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

SECURED LOAN	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWING
From Others	0.000	26.083
Total	0.000	26.083

Banking Relations :	--
Financial Institution :	Gujarat State Financial Corporation, Udyog Bhavan, Gandhinagar, Gujarat, India
Auditors :
Name :	Mayur Shah and Associates Chartered Accountants
Address :	21, Kajalkiran, 11/B, Shrimali Society, Opposite Jain Temple, Navrangpura, Ahmedabad – 380009, Gujarat, India
Tel. No. :	91-79-30083213 / 14 / 15
Fax No. :	91-79-30083211
E-Mail :	mayurmcpl@gmail.com mayurmcpl@rediffmail.com
PAN No. :	AAAFL5406B

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2400000	Equity Shares	Rs.10/- each	Rs. 24.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2400000	Equity Shares	Rs.10/- each	Rs. 24.000 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	24.000	24.000
(b) Reserves & Surplus	(13.374)	(28.680)
(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)	10.626	(4.680)
(3) Non-Current Liabilities
(a) long-term borrowings	21.722	41.978
(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)	21.722	41.978
(4) Current Liabilities
(a) Short term borrowings	2.594	3.350
(b) Trade payables	2.842	4.792
(c) Other current liabilities	0.000	1.556
(d) Short-term provisions	0.110	0.171
Total Current Liabilities (4)	5.546	9.869
TOTAL	37.894	47.167
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	37.134	43.185
(ii) Intangible Assets	0.000	0.000
(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)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	37.134	43.185
(2) Current assets
(a) Current investments	0.005	0.005
(b) Inventories	0.000	0.239
(c) Trade receivables	0.056	1.249
(d) Cash and cash equivalents	0.333	(0.166)
(e) Short-term loans and advances	0.366	2.635
(f) Other current assets	0.000	0.020
Total Current Assets	0.760	3.982
TOTAL	37.894	47.167

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		24.000
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(27.882)
NETWORTH		(3.882)
LOAN FUNDS
1] Secured Loans		40.143
2] Unsecured Loans		3.763
TOTAL BORROWING		43.906
DEFERRED TAX LIABILITIES		0.000
TOTAL		40.021
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		41.784
Capital work-in-progress		0.000
INVESTMENT		0.005
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.291
	Sundry Debtors	0.291
	Cash & Bank Balances	0.164
	Other Current Assets	0.000
	Loans & Advances	2.605
Total Current Assets		4.351
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.900
	Other Current Liabilities	1.051
	Provisions	0.207
Total Current Liabilities		6.158
Net Current Assets		(1.807)
MISCELLANEOUS EXPENSES		0.039
TOTAL		40.021

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	2.391	1.760	2.028
		Other Income	0.687	1.596	0.297
		TOTAL (A)	3.078	3.356	2.325
Less	EXPENSES
		Cost of Materials Consumed	0.257	0.542
		Changes in inventories of finished goods, work in progress and stock-in-trade	0.000	0.785
		Employee Benefits Expenses	0.770	0.705
		Audit Fees	0.019	0.019
		Other Expenses	1.586	2.079
		TOTAL (B)	2.632	4.130	4.873
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.446	(0.774)	(2.548)
Less	FINANCIAL EXPENSES (D)		0.002	0.024	0.003
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.444	(0.798)	(2.551)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.095	0.000	0.000
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(4.651)	(0.798)	(2.551)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(4.651)	(0.798)	(2.551)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(28.680)	(27.882)	(25.331)
Less	APPROPRIATIONS		(0.003)	--	--
	BALANCE CARRIED TO THE B/S		(33.328)	(28.680)	(27.882)
	Earnings / (Loss) Per Share (Rs.)		(1.94)	(0.33)	(1.06)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(151.10)	(23.69)	(109.72)
Net Profit Margin (PBT/Sales)	(%)	(194.52)	(45.34)	(125.79)
Return on Total Assets (PBT/Total Assets}	(%)	(12.27)	(1.69)	(5.53)
Return on Investment (ROI) (PBT/Networth)		(0.44)	0.17	0.66
Debt Equity Ratio (Total Debt/Networth)		2.29	(9.69)	(11.30)
Current Ratio (Current Asset/Current Liability)		0.14	0.40	0.71

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	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	No
24]	Banking facility details	No
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

INDEX OF CHARGES : NO CHARGES EXIST FOR COMPANY

UNSECURED LOANS

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. In Millions)
LONG TERM BORROWINGS
From Directors	21.722	15.895
SHORT TERM BORROWINGS
Unsecured from Director	0.699	3.350
Unsecured from Others	1.895	0.000
Total	24.316	19.245

NOTE

The registered office of the company has been shifted from “SHIVAM”, 28-Jankalyan Society, Ajwa Road, Vadodara – 390019, Gujarat, India to the present address w.e.f. 20.05.2011

FIXED ASSETS

· Land

· Office Building

· Factory Building

· Plant and Machinery

· Electrical Installation

· Laboratory Equipments

· Office Equipments (Computer)

· Baroda Office

· Furniture and Fixture

· ETP

· Safety Equipment

· Fire Fighting Equipments

· Factory Road

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.100.70
Euro	1	Rs.84.67

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		26

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.