MIRA INFORM REPORT

Report Date :

01.02.2014

IDENTIFICATION DETAILS

Name :	QUALICHEM SPECIALTIES PRIVATE LIMITED
Registered Office :	7/25, Sri Sakthi Complex, Nanjunadapuram Road, Ramnathapuram, Coimbatore – 641045, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.12.2008
Com. Reg. No.:	18-014912
Capital Investment / Paid-up Capital :	Rs.8.100 Millions
CIN No.: [Company Identification No.]	U24231TZ2008PTC014912
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in trading of Specialty Chemicals.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ca (11)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears accumulated losses recorded by the company which has eroded networth of the company. However, business is active. Payment terms are slow. The company can be considered for business dealing on a safe and secured 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus onproviding payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

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. Shahnawaz Noormohommed Kazi
Designation :	Director
Contact No.:	91-22-41616505
Date :	30.01.2014

LOCATIONS

Registered Office :	7/25, Sri Sakthi Complex, Nanjunadapuram Road, Ramnathapuram, Coimbatore – 641045, Tamilnadu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	mbs@pid.sequent.in suhas.pai@qualichem.in
Branch:	127, Vardhaman Industrial Complex, LBS Marg, Thane (W), Thane-400601, Maharashtra, India

DIRECTORS

As on 29.09.2012

Name :

Mr. Nilesh Khushalchand Doshi

Designation :

Director

Address :

6, Maheshwar Niwas, 44/45, Tilak Road, Mumbai- 400054, Maharashtra, India

Date of Birth/Age :

27.04.1956

Date of Appointment :

30.09.2011

DIN No.:

00436059

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	U24230MH1995PTC087378	EUROSOFT PHARMA PRIVATE LIMITED	Director	17/04/1995	17/04/1995	01/08/2013	Active	NO
2	U51900MH2000PTC126966	EUROSOFT IMPEX PRIVATE LIMITED	Director	02/06/2000	02/06/2000	-	Strike off	NO
3	U24234MH2005PTC156487	NATEXT BIOTECH PRIVATE LIMITED	Director	03/11/2005	03/11/2005	01/08/2013	Active	NO
4	U24231TZ2008PTC014912	QUALICHEM SPECIALTIES PRIVATE LIMITED	Director	30/09/2011	08/12/2008	-	Active	NO

Name :

Mr. Shahnawaz Noormohommed Kazi

Designation :

Director

Address :

Baitul Aman, A/4/401, Above Café Sagar, M A Road Nagpada Junction, Mumbai- 400008, Maharashtra, India

Date of Birth/Age :

21.01.1966

Date of Appointment :

08.12.2008

DIN No.:

02478828

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Pallavi N Doshi	8100
Nilesh K Doshi	801900
Total	810000

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in trading of Specialty Chemicals.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Corporation Bank, Jayshree Building, Ambedkr Chowk, Gokhale Road, Nupada, Thane (West), Thane – 400602, Maharashtra, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long-term Borrowings
Term Loan from Banks	0.000	0.071
Short-term borrowings
Working capital limit from bank	5.169	0.000
Buyers credit from banks	9.865	28.733
Total	15.034	28.804

Banking Relations :	--
Auditors :
Name :	B K Khare and Company Chartered Accountants
Address :	706/708, Sharda Chambers, New Marine Lines, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-22000607/7318/6360/66315835/36
Fax No.:	91-22-22003476
E-Mail :	Info@bkkhareco.com
PAN N Income-tax PAN of auditor or auditor's firm :	AAAFB0265E

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
810000	Equity Shares	Rs.10/- each	Rs. 8.100 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	8.100	8.100
(b) Reserves & Surplus	(30.539)	(10.201)
(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)	(22.439)	(2.101)
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.071
(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)	0.000	0.071
(4) Current Liabilities
(a) Short term borrowings	15.034	28.733
(b) Trade payables	179.922	120.067
(c) Other current liabilities	2.432	5.677
(d) Short-term provisions	5.271	7.058
Total Current Liabilities (4)	202.659	161.535
TOTAL	180.220	159.505
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5.641	6.175
(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	0.625	0.625
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	6.266	6.800
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	21.748	38.551
(c) Trade receivables	96.667	83.606
(d) Cash and cash equivalents	8.153	10.258
(e) Short-term loans and advances	38.355	10.951
(f) Other current assets	9.031	9.339
Total Current Assets	173.954	152.705
TOTAL	180.220	159.505

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		8.100
2] Share Application Money		0.000
3] Reserves & Surplus		6.502
4] (Accumulated Losses)		0.000
NETWORTH		14.602
LOAN FUNDS
1] Secured Loans		1.508
2] Unsecured Loans		0.000
TOTAL BORROWING		1.508
DEFERRED TAX LIABILITIES		0.228
TOTAL		16.338
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.122
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.463
	Sundry Debtors	150.342
	Cash & Bank Balances	1.437
	Other Current Assets	0.000
	Loans & Advances	19.087
Total Current Assets		201.329
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	168.677
	Other Current Liabilities	20.436
	Provisions	0.000
Total Current Liabilities		189.113
Net Current Assets		12.216
MISCELLANEOUS EXPENSES		0.000
TOTAL		16.338

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income from operation	561.706	572.358	900.322
		Other Income	3.414	8.017	17.860
		TOTAL	565.120	580.375	918.182
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	584.808	596.627	906.112
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(19.688)	(16.252)	12.070
Less/ Add	DEPRECIATION/ AMORTISATION		0.650	0.778	0.342
	PROFIT / (LOSS) BEFORE TAX		(20.338)	(17.030)	11.728
	TAX		0.000	(0.228)	4.629
	PROFIT / (LOSS) AFTER TAX		(20.338)	(16.702)	7.099
	EARNINGS IN FOREIGN CURRENCY
		Traded Goods	NA	195.430	229.809
	IMPORTS
		Traded Goods	NA	153.179	459.195
	Earnings / (Loss) Per Share (Rs.)		(25.11)	(20.62)	118.71

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(3.60)	(2.88)	0.77
Net Profit Margin (PBT/Sales)	(%)	(3.62)	(2.98)	1.30
Return on Total Assets (PBT/Total Assets}	(%)	(11.29)	(10.68)	5.71
Return on Investment (ROI) (PBT/Networth)		(0.91)	(8.11)	0.80
Debt Equity Ratio (Total Debt /Networth)		(0.66)	(13.71)	0.10
Current Ratio (Current Asset/Current Liability)		0.86	0.94	1.06

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	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	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	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

OPERATIONS

The market condition continued to be adverse and escalation in prices added to overhead costs that resulted in losses this year as well. The management of the company intends to deploy adequate resources and taking necessary steps to improve financial performance of the company in future

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10329755	27/09/2010	30,000,000.00	CORPORATION BANK	JAYASHREE BUILDING, AMBEDKAR CHOWK, GOKHALE ROAD, NAUPADA, THANE (WEST), THANE, MAHARASHTRA - 400602, INDIA	B01698109

FIXED ASSETS

Tangible Assets

· Furniture and Fixture

· Office Equipment’s

· Computers

· Motors Cars

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.62.48
UK Pound	1	Rs.102.95
Euro	1	Rs.84.60

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	1
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		11

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.