MIRA INFORM REPORT

Report Date :

26.12.2014

IDENTIFICATION DETAILS

Name :	RUBAMIN LIMITED (w.e.f. 22.11.2001)
Formerly Known As :	RUBAMIN PRIVATE LIMITED
Registered Office :	Synergy House, Gorwa – Subhanpura Road, Baroda – 390023, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.09.1987
Com. Reg. No.:	04-009942
Capital Investment / Paid-up Capital :	Rs.120.741 Millions
CIN No.: [Company Identification No.]	U24299GJ1987PLC009942
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	BRDR00824F
PAN No.: [Permanent Account No.]	AAACR8758H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and Marketing of Zinc Oxide, Fine Chemical, Cobalt Metal, Nickel and Cobalt.
No. of Employees :	700 (Approximately)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. The rating reflects Rubamin’s established market position in the zinc-based chemicals segment supported by healthy operational risk profile and decent profitability margins of the company. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – 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	CRISIL
Rating	Long term rating = BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	September 26, 2014

Rating Agency Name	CRISIL
Rating	Short term rating = A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	September 26, 2014

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 :	Ms. Suman Dhar
Designation :	Export Department
Contact No.:	91-265-2282078
Date :	06.11.2014

LOCATIONS

Registered / Corporate Office :	Synergy House, Gorwa – Subhanpura Road, Baroda – 390023, Gujarat, India
Tel. No.:	91-265-2282078-082
Fax No.:	91-265-2282077
E-Mail :	info@rubamin.com vipul.patel@rubamin.com sanjay.dudhoria@rubamin.com mayank.joshi@rubamin.com
Website :	http://www.rubamin.com
Location :	Owned
Locality :	Commercial
Factory 1 :	23, Shree Laxmi Industrial Estate, Village Dunia, Halol, District Panchmahals - 389350, Gujarat, India
Tel. No.:	91-2676-220265/ 220927/ 223687
Factory 2 :	138 and 139, Panchal Udyog Nagar, Bhimpore, Daman – 396210, Daman and Diu, India
Factory 3 :	Plot No. 100 and C-1, B-113, Nandesari Notified Area, GIDC Nandesari, Vadodara – 391340, Gujarat, India

DIRECTORS

As on 30.09.2014

Name :	Mr. Atul Nandkishore Dalmia
Designation :	Managing director
Address :	29, Charotar Society, Old Padra Road, Baroda, Gujarat, India
Date of Birth/Age :	05.01.1959
Qualification :	Chemical Engineer from BITS, Pilani
Experience :	30 Years
Date of Appointment :	01.07.2014
PAN No.:	ABOPD1840Q
DIN No.:	00228257
Name :	Mr. Anil Ramanbhai Patel
Designation :	Managing director
Address :	Plot No.8, R.S. No.79, At & Post Sevasi, District Vadodara – 391011, Gujarat, India
Date of Birth/Age :	23.12.1951
Qualification :	M.Sc. (Physics)
Experience :	38 Years
Date of Appointment :	01.07.2014
PAN No.:	ADKPP1905E
DIN No.:	00228658
Name :	Mr. Bhuwan Purohit
Designation :	Director
Address :	C-302, Aishwarya Apartment, Ellora Park, Subhanpura, Vadodara – 390023, Gujarat, India
Date of Birth/Age :	27.05.1975
Qualification :	B.Com, ACA, CS
Date of Appointment :	26.09.2012
PAN No.:	AEGPP5102G
DIN No.:	05196479
Name :	Mr. Sumit Chandwani
Designation :	Director
Address :	D-3603, Ashok Towers, S S Rao Road, Parel, Mumbai – 400012, Maharashtra, India
Date of Birth/Age :	11.11.1967
Date of Appointment :	12.09.2014
DIN No.:	0179100
Name :	Dr. Shashi Anand
Designation :	Director
Address :	HIG 25/3, Housing Board Colony, Phase-1, Chandershekhar Pur, Bhubaneshear – 751016, Odisa, India
Date of Birth/Age :	03.12.1948
Date of Appointment :	12.09.2014
DIN No.:	06909344

KEY EXECUTIVES

Name :	Ms. Suman Dhar
Designation :	Export Department
Name :	Mr. Mayank Joshi
Designation :	Secretary
Address :	B/5, 403, Labh Exotica, Opposite Mangalya Society, Opposite Yash Complex, Gotri, Vadodara – 391021, Gujarat, India
Date of Birth/Age :	09.11.1985
Date of Appointment :	20.01.2014
PAN No.:	AIAPJ6706C

MAJOR SHAREHOLDERS

As on 12.09.2014

Names of Shareholders	No. of Shares
Dalmia Atul N.	3809284
Dalmia Nandkishore J.	1858880
Dalmia Seema A.	944080
Dalmia Gyan N.	517160
Patel Anil R.	3069264
Patel Mita A.	806400
Patel Hetav A	615600
Anil R. Patel (HUF) Karta Anil Ramanlal Patel	137760
Nisha Gupta	10000
Neena Rajgarhia	10000
Zincollied (India) Private Limited, India	155300
Patel Hetal H	140400
Total	12074128

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	1.29
Directors or relatives of Directors	98.71
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Zinc Oxide, Fine Chemical, Cobalt Metal, Nickel and Cobalt.

Products :

ITC Code No.	Product Descriptions
28170010	Zinc Oxide
81052000	Cobalt Cathode

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

• Finished Goods

Countries :

· UK

· USA

· UAE

Imports :

Products :

• Raw Materials

Countries :

· USA

· Mexico

· UAE

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

PRODUCTION STATUS = NOT AVAILABLE

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 :

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 :

700 (Approximately)

Bankers :

· Bank of Baroda, Corporate Financial Services Branch, 1st Floor, BOB Building, R C Dutt Road, Alkapuri, Vadodara - 390007, Gujarat, India

· State Bank of India - Lead Bank, MID Corporate Group Industrial Finance Branch, Marble Arch, Race Course Circle, Vadodara - 390007, Gujarat, India [Tel No.: 91-265-2312093]

· Dena Bank, VIP Road, Kareli Baug, Baroda, Gujarat, India

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG-TERM BORROWINGS
Term loans from banks	49.589	0.000
SHORT TERM BORROWINGS
Loans repayable on demand from banks	709.469	793.313
Total	759.058	793.313

Auditors :
Name :	K C Mehta and Company Chartered Accountants
Address :	2nd Floor, Meghdhanush,Race Course,Vadodara – 390007, Gujarat, India
PAN No.:	AABFK1558J
Subsidiary Company :	· Rubaco SPRL · Rubamin FZC, United Arab Emirates · Rubamin SPRL · Softgenie Limited CIN No.: U30000GJ1999PLC036815 · Minalex SPRL
Associate Company :	· Infinity Investments Private Limited · Techno Chemicals · Atul Chemicals · Zincollied (India) Private Limited · Gyan Holdings Private Limited · Quanta Process Private Limited · Hetav Holdings Private Limited

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs. 150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
12074128	Equity Shares	Rs.10/- each	Rs. 120.741 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	120.741	120.741	142.727
(b) Reserves & Surplus	862.898	685.221	693.686
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	983.639	805.962	836.413
(3) Non-Current Liabilities
(a) long-term borrowings	49.589	30.224	173.183
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	7.436	5.412	7.923
Total Non-current Liabilities (3)	57.025	35.636	181.106
(4) Current Liabilities
(a) Short term borrowings	730.478	841.561	896.129
(b) Trade payables	145.746	202.240	231.637
(c) Other current liabilities	195.866	204.481	209.788
(d) Short-term provisions	81.843	18.067	1.904
Total Current Liabilities (4)	1153.933	1266.349	1339.458
TOTAL	2194.597	2107.947	2356.977
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	678.454	629.154	680.851
(ii) Intangible Assets	3.234	4.368	7.709
(iii) Capital work-in-progress	38.399	6.489	2.213
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	94.054	94.054	94.074
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	17.912	18.695	21.979
(e) Other Non-current assets	0.000	0.000	0.461
Total Non-Current Assets	832.053	752.760	807.287
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	422.775	387.743	578.026
(c) Trade receivables	605.232	455.397	440.603
(d) Cash and cash equivalents	16.638	55.513	62.597
(e) Short-term loans and advances	314.964	453.324	457.634
(f) Other current assets	2.935	3.210	10.830
Total Current Assets	1362.544	1355.187	1549.690
TOTAL	2194.597	2107.947	2356.977

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	2947.262	2452.566	2648.962
		Other Income	188.423	263.180	95.793
		TOTAL (A)	3135.685	2715.746	2744.755
Less	EXPENSES
		Cost of Materials Consumed	1954.891	1593.004	1731.432
		Purchases of Stock-in-Trade	140.084	116.979	113.079
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	14.794	180.686	-92.336
		Employees benefits expense	122.904	97.440	152.771
		Other expenses	446.788	372.852	420.599
		Prior Period Items	0.402	0.000	0.000
		Exceptional Items	0.000	(14.100)	0.000
		TOTAL (B)	2679.863	2346.861	2325.545
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		455.822	368.885	419.210
Less	FINANCIAL EXPENSES (D)		106.767	125.834	174.399
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		349.055	243.051	244.811
Less/ Add	DEPRECIATION/ AMORTISATION (F)		73.285	78.295	97.596
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		275.770	164.756	147.215
Less	TAX (H)		44.664	(148.999)	344.679
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		231.106	313.755	(197.464)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1259.655	1090.945	1132.521
	TOTAL EARNINGS		1259.655	1090.945	1132.521
	Earnings Per Share (Rs.)		17.52	11.35	(13.84)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	7.84	12.79	(7.45)
Operating Profit Margin (PBDIT / Sales)	(%)	15.47	15.04	15.83
Return on Total Assets (PBT/Total Assets}	(%)	13.37	8.21	6.51
Return on Investment (ROI) (PBT/Networth)		0.28	0.20	0.18
Debt Equity Ratio (Total Debt /Networth)		0.79	1.08	1.28
Current Ratio (Current Asset/Current Liability)		1.18	1.07	1.16

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	142.727	120.741	120.741
Reserves & Surplus	693.686	685.221	862.898
Net worth	836.413	805.962	983.639
long-term borrowings	173.183	30.224	49.589
Short term borrowings	896.129	841.561	730.478
Total borrowings	1069.312	871.785	780.067
Debt/Equity ratio	1.278	1.082	0.793

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	2648.962	2452.566	2947.262
		(7.414)	20.171

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	2648.962	2452.566	2947.262
Profit	(197.464)	313.755	231.106
	(7.45)%	12.79%	7.84%

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	Yes
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	Yes
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	Yes
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

Litigations Details

HIGH COURT OF GUJARAT

TAX APPEAL No. 2451 of 2009

Status: PENDING ( Converted from : ST/2597/2009 ) CCIN No: 001092200801682

Last Listing Date: 16.04.2014

Coram: - HONOURABLE MR.JUSTICE AKIL KURESHI

HONOURABLE MS.JUSTICE SONIA GOKANI

S.NO.

Name of the Petitioner

Advocate On Record

1

ACIT CIRCLE-4 BARODA

MR KM PARIKH for: Appellant(s) 1

S.NO.

Name of the Respondent

Advocate On Record

1

RUBAMIN LIMITED

RULE SERVED for :Opponent(s) 1

Presented On : 24/07/2009 Registered On : 24/07/2009

Bench Category : DIVISION BENCH District : VADODARA

Case Originated From: THROUGH HIS/HER/ Listed : 203 times

THEIR ADVOCATE

Stage Name : TAX APPEAL FINAL HEARING U/S. 80 HHC

Classification	DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA DB - OJ - TAX APPEAL - GIFT TAX ACT, 1958 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT
Act	INCOME-TAX ACT, 1961

Office Details

S. No.	Filing Date	Document Name	Advocate Name	Court Fee on Document	Document Details
1	24/07/2009	MEMO OF APPEAL/PETITION/SUIT	MR KM PARIKH ADVOCATE for PETITIONER(s)  1	20	MR KM PARIKH:1
2	15/08/2009	DOCUMENT	RULE SERVED  for RESPONDENT(s)  1	-	RULE SERVED:1
3	11/12/2009	CERTIFIED COPY	MR KM PARIKH ADVOCATE for PETITIONER(s)  1	6	MR KM PARIKH:1

Court Proceedings

S. No.	Notified Date	Court Code	Board Sr. No.	Stage	Action	Coram
1	11/05/2011	10	-	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI
2	02/08/2011	7	-	ADJOURNED MATTERS	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI
3	12/02/2014	7	-	TAX APPEAL FINAL HEARING U/S. 80 HHC	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI
4	05/03/2014	7	248	TAX APPEAL FINAL HEARING U/S. 80 HHC	NEXT DATE	HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI
5	16/04/2014	7	162	TAX APPEAL FINAL HEARING U/S. 80 HHC		HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI

Available Orders

S. No.	Case Details	Judge Name	Order Date	CAV	Judgement	Questions	Transferred
1	TAX APPEAL/2451/2009	HONOURABLE MR.JUSTICE AKIL KURESHI HONOURABLE MS JUSTICE SONIA GOKANI	02/08/2011	N	ORDER	-	Y

Certified Copy

S. No.	ApplicantName	ApplicationType	Application Date	UOL Number	Order Date	Notify Date	Delivery Date	Status	Nature Of Document
1	MR KM PARIKH	ORDINARY	03/08/2011	O/27713/2011	02/08/2011	09/08/2011	10/08/2011	Delivered	ORDER

UNSECURED LOAN

(Rs. In Million)

Particulars	31.03.2014	31.03.2013
LONG-TERM BORROWINGS
Public deposits	0.000	30.224
SHORT TERM BORROWINGS
Loans repayable on demand from others	0.000	48.248
Loans and advance from others	21.009	0.000
Total	21.009	78.472

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10429296	28/05/2013	100,000,000.00	BANK OF BARODA	CORPORATE FINANCIAL SERVICES BRANCH, 1ST FLOOR, BOB BUILDING, R C DUTT ROAD, ALKAPURI, VADODARA - 390007, GUJARAT, INDIA	B76387679
2	10123498	21/12/2011 *	2,636,000,000.00	STATE BANK OF INDIA - LEAD BANK	MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ARCH, RACE COUREC CIRCLE, VADODARA - 390007, GUJARAT, INDIA	B28527794
3	10123499	09/09/2008	1,906,400,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RACE COURSE CIRCLE, VADODARA - 390007, GUJARAT, INDIA	A45809662
4	10110117	08/07/2009 *	682,400,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RACE COURSE CIRCLE, VADODARA - 390007, GUJARAT, INDIA	A66713686
5	10056855	05/06/2007	726,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RACE COURSE CIRCLE, VADODARA - 390007, GUJARAT, INDIA	A17428681
6	10060889	12/02/2007	61,400,000.00	BANK OF BARODA	CORPORATE FINANCIAL SERVICES BRANCH, 1ST FLOOR, BOB BUILDING, R C DUTT ROAD, ALKAPURI, VADODARA - 390007, GUJARAT, INDIA	A11384955
7	10033604	18/06/2012 *	2,636,000,000.00	STATE BANK OF INDIA - LEAD BANK	MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ARCH, RACE COUREC CIRCLE, VADODARA - 390007, GUJARAT, INDIA	B41509704
8	90096107	05/03/2003 *	16,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RACE COURSE CIRCLE, VADODARA - 390007, GUJARAT, INDIA	-
9	90094346	30/07/2004 *	45,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RACE COURSE CIRCLE, VADODARA - 390007, GUJARAT, INDIA	-
10	90094340	09/08/2003 *	45,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RACE COURSE CIRCLE, VADODARA - 390007, GUJARAT, INDIA	-
11	90095910	01/08/2006 *	390,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, RACE COURSE CIRCLE, VADODARA - 390007, GUJARAT, INDIA	A07329659

* Date of charge modification

REVIEW OF OPERATIONS

Financial year 2013-14 has been a reasonably successful year for the Company. The Division wise performance is as under.

Zinc

They continue to be the market leaders in India. Their position in the international market has been strengthened by bringing in several large approvals such as Reliance, BASF, Nocil, Clariant, UOP etc. Many more approvals are in the pipeline. This will consolidate their position internationally.

A new French Zinc Oxide facility has been created in Halol to replace one operation in Daman which they have closed. There second operation in Daman will also be closed during 2014-15.

By consolidating the French process Zinc Oxide facility in Halol not only will the management become stronger but the administrative cost will also go down and major savings in energy will accrue which will strengthen their position in this competitive business. In the Animal Feed business there capacity is fully sold out and they are contemplating tripling the capacities in one of the Nandesari facilities. This should happen by early 2015-16.

New products like Zinc Borate and Zinc Phosphate have been developed. They have got some approvals and they are expecting to establish these two products in the international market in the next financial year.

To summarize, they are seeing new products being introduced, more international approvals coming through and many new customers coming into their fold they have also taken steps for optimization of costs as well as growth in volumes which will make them a well-diversified Zinc chemicals company.

Moly

They have successfully established There selves with both Sodium Molybdate and Ammonium Molybdate in domestic as well as international markets. With limited capex, they have so far successfully retrofitted Moly operation in the old Cobalt refinery. This is a unique operation in India where they recycle spent Moly Catalyst bought from oil refineries into special chemicals which have wide acceptance in the market. Not only does this business have the potential to quadruple itself in two to three years’ time but will open up various opportunities to add new elements like Tungsten, Vanadium and others in the future.

They expect this business to become a multi-metal chemical manufacturing operation. This would establish there company as the leader in Hydrometallurgy in India and also garner them a unique position internationally.

Cobalt

Though they have exited the Cobalt refinery business, they continue to manufacture Cobalt Sulfate to serve certain international customers who facility to manufacture Cobalt Sulfate to serve Indian market as well as a few international customers. They have a history in this business and it will continue to give them a decent contribution.

Congo

In May 2014 they have completed 10 years of their Congo operation. It has been a very satisfying journey through a difficult situation but in a very health bottom-line. They invested USD 1.75 Million 10 years back and already have received dividend of USD 9.4 Million.

They expect there Africa business to grow several times in the next five years. They hope to have a copper mine and add a Tin processing facility in the near future. They are in the process of developing a large farm, and in all likelihood they shall also put up a bio-mass based power generation unit. They hope to offer additional geological services to other companies and add many more businesses to their portfolio.

FIXED ASSETS

· Land

· Buildings

· Factory Building

· Other Building

· Plant and Equipment

· Factory Equipments

· Furniture and Fixtures

· Vehicles

· Motor Vehicle

· Office Equipment

· Computer Equipments

· Other Equipments

· Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.45
UK Pound	1	Rs.98.88
Euro	1	Rs.77.62

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	KAR
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--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.