MIRA INFORM REPORT

Report Date :

15.12.2014

IDENTIFICATION DETAILS

Name :	SPECTRUM ETHERS LIMITED (w.e.f. 30.08.1994)
Formerly Known As :	SPECTRUM ETHERS PRIVATE LIMITED
Registered Office :	Gat No – 367, Rasegaon Village, Nashik Peth Road, Nashik – 422202, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	02.02.1993
Com. Reg. No.:	11-070620
Capital Investment / Paid-up Capital :	Rs. 134.965 Millions
CIN No.: [Company Identification No.]	U24100MH1993PLC070620
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Applicable
PAN No.: [Permanent Account No.]	AAECS0266M
Legal Form :	Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Pesticides Formulations.
No. of Employees :	150(Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 650000
Status :	Moderate
Payment Behavior :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Reserves of the company seems to be low. However, trade relations are fair. Business is active. Payments terms are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = BB
Rating Explanation	Have moderate risk of default.
Date	29 November, 2013

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A4+
Rating Explanation	Have minimal degree of safety and carry very high credit risk.
Date	29 November, 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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Kirtane
Designation :	Account Head
Contact No.:	91-253-2570744
Date :	10.12.2014

LOCATIONS

Registered Office/ Factory :	Gat No – 367, Rasegaon Village, Nashik Peth Road, Nashik – 422202, Maharashtra, India
Tel. No.:	91-2557-226371/ 226389/2570744
Mobile No.:	91-9403697327 (Mr. Chandrashekhar)
Fax No.:	91-2557-226390
E-Mail :	ethers_nsk@sancharnet.in factory@spectrumethers.com
Head Office/ Sales Office :	201, Saba Palace, 4^th Road, Khar (West), Mumbai – 400054, Maharashtra, India
Tel. No.:	91-22-26487769/ 26054452/26463746
Fax No.:	91-22-26487762
E-Mail :	info@spectrumethers.com samir@spectrumethers.com
Corporate Office :	Flat No.5, Ayodhya Building, D’Souza – Shivgiri Colony, Nashik – 422005, Maharashtra, India
Tel. No.:	91-253-2570744
Fax No.:	91-253-2582696
Branch:	Located at: Nashik Bharuch

DIRECTORS

As on 29.09.2014

Name :	Mr. Milind Shankarrao Kolhe
Designation :	Managing Director
Address :	1201, Vaitarna Worli Sagar Co-Operative Housing Society, Shri Pochkhanwala Road, Worli, Mumbai – 400025, Maharashtra, India
Date of Birth/Age :	18.05.1959
Qualification :	M.S
Date of Appointment :	08.04.1994
PAN:	AABPK0189P
DIN No.:	00270804
Name :	Mr. Shaileshbhai Vasantlal Babariya
Designation :	Director
Address :	74854, Shri Rampur, Taluka Shri Rampur, Ahmed Nagar – 413709, Maharashtra, India
Date of Birth/Age :	17.09.1956
Qualification :	B.A
Date of Appointment :	28.12.1998
DIN No.:	00441746
Name :	Mr. Jugal Kishor Agrawal
Designation :	Director
Address :	Agrawal Building, P/No. 926, C.A. Road, Deshpande, L/D Wardhman Nagar, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	23.12.1957
Qualification :	B.A
Date of Appointment :	11.12.1995
DIN No.:	00270955
Name :	Mr. Gopal Agrawal
Designation :	Director
Address :	E 15, Konark Park, Dhole Patil Road, Pune – 411001, Maharashtra, India
Date of Birth/Age :	06.02.1957
Qualification :	M.D
Date of Appointment :	02.09.2001
DIN No.:	03197304

KEY EXECUTIVES

Name :	Mr. Kirtane
Designation :	Account Head
Name :	MRM Associates
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2014

SHAREHOLDING DETAILS FILE ATTACHED

As on: 29.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	2.77
Directors or relatives of Directors	67.30
Other top fifty shareholders	8.35
Others	21.58
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Pesticides Formulations.

Products :

Product Description	ITC Code
Pesticides	3808
Technical Grade Pesticides	38089010
Phorate 10 % CG	38089010

Brand Names :

--

Agencies Held :

--

Exports :

Products :

Finished Goods

Countries :

Taiwan

Imports :

Products :

Raw Material

Countries :

• China
• Germany
• Belgium

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Wholesalers, Retailers and Manufacturer

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

150 (Approximately)

Bankers :

Banker Name	State Bank of India
Branch Address	Mumbai, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Rupee term loans from banks	32.770	59.493
Short term Borrowing
Loans repayable on demand from banks SBI CC	158.263	151.012
Total	191.033	210.505

Note:

Long Term Borrowing:

Secured Term Loan: Above Term Loan secured by first charges by way of hypothecation of the company's entire goods, movables and others assets present and future including documents of title to the goods & other assets such as book debts, claims including claims by way of refund of customs. Excise duty draw back claims insurance grantees, uncalled capital and all machinery present & future of such from satisfactory to the bank. Further Gauranted by Directors.

Short Term Borrowings:

Secured Loans repayable on demand: Above Secured Term Loan secured by first charges by way of hypothecation of the company's entire goods, movables and others assets present and future including documents of title to the goods & other assets such as book debts, cash incentives, claims including claims by way of refund of customs, excise duty draw back claims, insurance, grantees, uncalled capital and all machinery present & future of such from satisfactory to the bank. Further Gauranted by Directors.

Banking Relations :	---
Auditors :
Name :	S.K. Kavathekar and Company Chartered Accountants
Address :	Shree Ganesh Housing Society, Bhavani Shankar Road, Near Kabutar Khana, Dadar (West), Mumbai – 400028, Maharashtra, India
PAN No.:	AFZPK5200N
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Applicable
Sister Concern:	Not Applicable

CAPITAL STRUCTURE

As on: 30.09.2014

Authorized Capital :

No. of Shares	Type	Value	Amount
13500000	Equity Shares	Rs.10/- each	Rs.135.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13496537	Equity Shares	Rs.10/- each	Rs.134.965 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	134.965	94.967	94.967
(b) Reserves & Surplus	93.885	69.434	41.782
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	17.600	17.600
Total Shareholders’ Funds (1) + (2)	228.850	182.001	154.349
(3) Non-Current Liabilities
(a) long-term borrowings	54.169	117.537	114.506
(b) Deferred tax liabilities (Net)	30.877	35.807	44.408
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	85.046	153.344	158.914
(4) Current Liabilities
(a) Short term borrowings	158.264	151.012	125.719
(b) Trade payables	562.428	393.431	345.893
(c) Other current liabilities	34.107	47.312	42.337
(d) Short-term provisions	20.163	50.505	21.231
Total Current Liabilities (4)	774.962	642.260	535.180
TOTAL	1088.858	977.605	848.443
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	273.866	288.745	296.552
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.107	0.107	0.107
(c) Deferred tax assets (net)	39.822	34.622	25.841
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	313.795	323.474	322.500
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	396.695	433.260	301.345
(c) Trade receivables	318.629	160.214	174.586
(d) Cash and cash equivalents	25.976	21.330	13.553
(e) Short-term loans and advances	33.763	39.327	36.459
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	775.063	654.131	525.943
TOTAL	1088.858	977.605	848.443

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	1590.555	1140.742	987.453
		Other Income	2.928	3.500	1.146
		TOTAL (A)	1593.483	1144.242	988.599
Less	EXPENSES
		Cost of Materials Consumed	1088.307	826.850	664.845
		Employees benefits expense	39.850	35.556	30.402
		Other expenses	365.920	172.520	177.091
		TOTAL (B)	1494.077	1034.926	872.338
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		99.406	109.316	116.261
Less	FINANCIAL EXPENSES (D)		53.443	47.804	52.701
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		45.963	61.512	63.560
Less/ Add	DEPRECIATION/ AMORTISATION (F)		32.878	31.281	28.551
	PROFIT BEFORE TAX (E-F) (G)		13.085	30.231	35.009
Less	TAX (H)		0.634	2.580	1.556
	PROFIT AFTER TAX (G-H) (I)		12.451	27.651	33.453
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		62.550	34.899	30.628
	BALANCE CARRIED TO THE B/S		75.001	62.550	64.081
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	60.260	61.158	37.314
	TOTAL EARNINGS		60.260	61.158	37.314
	IMPORTS
		Raw Materials	404.583	200.301	138.332
	TOTAL IMPORTS		404.583	200.301	138.332
	Earnings Per Share (Rs.)		1.08	2.91	1.61

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.78	2.42	3.39
Operating Profit Margin (PBIDT/Sales)	(%)	6.25	9.58	11.77
Return on Total Assets (PBT/Total Assets}	(%)	1.25	3.21	4.26
Return on Investment (ROI) (PBT/Networth)		0.06	0.17	0.23
Debt Equity Ratio (Total Debt /Networth)		0.93	1.48	1.56
Current Ratio (Current Asset/Current Liability)		1.00	1.02	0.98

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	94.967	94.967	134.965
Share Application money pending allotment	17.600	17.600	0.000
Reserves & Surplus	41.782	69.434	93.885
Net worth	154.349	182.001	228.850
long-term borrowings	114.506	117.537	54.169
Short term borrowings	125.719	151.012	158.264
Total borrowings	240.225	268.549	212.433
Debt/Equity ratio	1.556	1.476	0.928

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	987.453	1140.742	1590.555
		15.524	39.432

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	987.453	1140.742	1590.555
Profit	33.453	27.651	12.451
	3.39%	2.42%	0.78%

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 three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Rupee term loans from Bank	0.795	3.554
Rupee term loans from Others	20.605	54.490
Total	21.400	58.044

Note:

Long Term Borrowing:

Unsecured Loan: Above unsecured Term loans are guaranteed by Directors.

PERFORMANCE:

In the current year the company has achieved a net turnover of Rs.1625.400 Millions. The growth is higher by 60.83% as compared to previous year. The Company has reported a profit of 75.100 Millions before Interest & depreciation. PAT is Rs. 12.500 Millions as against of Rs. 27.600 for previous year. The cash accruals generated during the year amounting of Rs.45.300 Millions has been ploughed back into the operation of the company to meet higher needs of working capital. With a view to become multi-products company in the field of pesticides, the company is planning to raise long term funds to meet cost of capital expenditure and long term working capital requirements.

FIXED ASSETS:

• Land
• Factory Building
• Plant and Machinery
• Furniture and Fixture
• Office Equipment
• Computers
• Vehicles
• Computer equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.44
UK Pound	1	Rs.98.15
Euro	1	Rs.77.38

INFORMATION DETAILS

Information Gathered by :	DPA
Analysis Done by :	RSM
Report Prepared by :	MTN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.