MIRA INFORM REPORT

Report Date :

23.09.2013

IDENTIFICATION DETAILS

Name :	ADARSHA SPECIALTY CHEMICALS PRIVATE LIMITED
Registered Office :	IP 94A, Vasantha Narsapura, Kiadb Industrial Area, Kora Hobli, Kora, Tumkur – 572138, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.01.2010
Com. Reg. No.:	08-052149
Capital Investment / Paid-up Capital :	Rs. 9.000 Millions
CIN No.: [Company Identification No.]	U24100KA2010PTC052149
TAN No.: [Tax Deduction & Collection Account No.]	BLRA13670G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Silicone.
No. of Employees :	80 (Approximately)

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 11000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. However, management has failed to file its financial details with government department for the year 2012. As per previous, company financial is under pressure and it seems company has taken huge external borrowing. Also there appear losses in the financial year 2011. Payment terms are unknown due to absence of latest financial details. 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.

INFORMATION PARTED BY

Name :	Mr. B. Prasad
Designation :	Manager
Contact No.:	91-9686195735
Date :	20.09.2013

LOCATIONS

Registered Office/ Factory :	IP 94A, Vasantha Narsapura, Kiadb Industrial Area, Kora Hobli, Kora, Tumkur – 572138, Karnataka, India
Tel. No.:	Not Available
Mobile No.:	91-9686195735 (Mr. B. Prasad)
Fax No.:	Not Available
E-Mail :	omkarmurthy@adarshachemicals.com sales@adarshachemicals.com
Website :	http://www.adarshachemicals.com
Location :	Owned
Corporate Office :	Godrej Woodsman Estate, Alder Tower, A-504, Amco Batteries Compound, Hebbal - 560024, Bangalore, India
Tel. No.:	91-80-42180105
Branch Office :	Srinidhinilaya, City Club Road Corner, Sira Road, Tumkur - 572106, Karnataka, India
Tel. No.:	91-816-2252665
Fax No.:	91-816-2252665

DIRECTORS

AS ON 30.06.2011

Name :	Mr. Omkarmurthy Siddaramappa Gejjagondanahal
Designation :	Director
Address :	Flat No. 404/A, Lunkad Sky Lounge, S. No. 210, PL 72, Kalyaninagar, Yerwada, Pune – 411006, Maharashtra, India
Date of Birth/Age :	20.07.1967
Date of Appointment :	12.01.2010
DIN No.:	02858346
Name :	Dr. Chandrashekar Siddaramappa Gejjagondanahalli
Designation :	Director
Address :	Near Bhagavat Eye Clinic, Ambalapady (Post), Udupi – 576103, Karnataka, India
Date of Birth/Age :	10.07.1963
Date of Appointment :	12.01.2010
DIN No.:	02896485
Name :	Prakasha Siddaramappa Gejjagondanahalli
Designation :	Director
Address :	# 102, Shweta Paradise, D Block, Water Tank Road, Sahakar Nagar, Bangalore – 560092, Karnataka, India
Date of Birth/Age :	22.06.1965
Date of Appointment :	12.01.2010
DIN No.:	02858337

KEY EXECUTIVES

Name :	Mr. B. Prasad
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.06.2011

Names of Shareholders	No. of Shares
Omkarmurthy Siddaramappa Gejjagondanahal	400000
Prakasha Siddaramappa Gejjagondanahalli	400000
Chandrashekar Siddaramappa Gejjagondanahalli	100000
Total	900000

AS ON 12.12.2012

Names of Allottees	No. of Shares
K S Vimala Chandrashekar	100000
G Sudha Prakash	100000
M R Rekha Murthy	100000
Total	300000

AS ON 25.02.2013

Names of Allottees	No. of Shares
K S Vimala Chandrashekar	190000
G Sudha Prakash	190000
M R Rekha Murthy	190000
Chandrashekar Siddaramappa Gejjagondanahalli	310000
Omkarmurthy Siddaramappa Gejjagondanahal	310000
Prakasha Siddaramappa Gejjagondanahalli	310000
Total	1500000

AS ON 30.06.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Silicone.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

80 (Approximately)

Bankers :

Syndicate Bank, Padmalaya, H. No. 51, B.N.P. Compound, M. G. Road, Tumkur - 572101, Karnataka, India [Tel No.: 91-816-2271448]

Facilities :

SECURED LOANS	31.03.2011 (Rs. In Millions)
Syndicate Bank Term Loan	25.026
Syndicate Bank OCC	9.100
Total	34.126

Banking Relations :	--
Auditors :
Name :	Patil and Associates Chartered Accountants
Address :	No.415/1, I Floor, 8th Main, P.J. Extension, Davangere – 577002, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AGBPP2808G

CAPITAL STRUCTURE

AFTER 30.06.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs. 10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,700,000	Equity Shares	Rs. 10/- each	Rs. 27.000 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
900,000	Equity Shares	Rs. 10/- each	Rs. 9.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
900,000	Equity Shares	Rs. 10/- each	Rs. 9.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		9.000
2] Share Application Money		0.550
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(6.753)
NETWORTH		2.797
LOAN FUNDS
1] Secured Loans		34.126
2] Unsecured Loans		12.156
TOTAL BORROWING		46.282
DEFERRED TAX LIABILITIES		0.000
TOTAL		49.079
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		36.771
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.052
	Sundry Debtors	4.784
	Cash & Bank Balances	0.987
	Other Current Assets	0.296
	Loans & Advances	1.610
Total Current Assets		13.729
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.580
	Other Current Liabilities	0.000
	Provisions	0.099
Total Current Liabilities		2.679
Net Current Assets		11.050
MISCELLANEOUS EXPENSES		1.258
TOTAL		49.079

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011
	SALES
		TOTAL	5.635
Less	EXPENSES
		TOTAL	10.696
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(5.061)
Less/ Add	DEPRECIATION/ AMORTISATION		1.692
	PROFIT/ (LOSS) BEFORE TAX		(6.753)
Less	TAX		0.000
	PROFIT/ (LOSS) AFTER TAX		(6.753)
	Earnings/ (Loss) Per Share (Rs.)		(7.50)

KEY RATIOS

PARTICULARS		31.03.2011
PAT / Total Income	(%)	(119.84)
Return on Total Assets (PBT/Total Assets}	(%)	(13.37)
Return on Investment (ROI) (PBT/Networth)		(2.41)
Debt Equity Ratio (Total Debt/Networth)		16.55
Current Ratio (Current Asset/Current Liability)		5.12

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last one year	Yes
12]	Profitability for last one year	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)	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	No
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 LOANS

UNSECURED LOANS	31.03.2011 (Rs. In Millions)
Loans from Directors	1.906
Others	10.250
Total	12.156

FIXED ASSETS:

· Leasehold Land

· Building

· Furniture and Fixture

· Office Equipments

· Plant and Machinery

· Electrical Installation

· Lab Equipments

· Computer

· 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 records 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. 62.24
UK Pound	1	Rs. 99.90
Euro	1	Rs. 84.23

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--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	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
DEFAULTERS
--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.