MIRA INFORM REPORT

Report Date :

11.02.2014

IDENTIFICATION DETAILS

Name :	CYTEC INDIA SPECIALTY CHEMICALS AND MATERIALS PRIVATE LIMITED
Registered Office :	G-54, MIDC Industrial Estate, Butibori, Nagpur – 441110, Maharashtra
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	09.01.2012
Com. Reg. No.:	11-225865
Capital Investment / Paid-up Capital :	Rs.524.100 Millions
CIN No.: [Company Identification No.]	U24233MH2012PTC225865
PAN No.: [Permanent Account No.]	AAECC6848D
Legal Form :	Private Limited Liability Company
Line of Business :	The Subject is engaged in the business of manufacture, sale and trading of specialty chemicals used in copper mining industry.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 1013000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a subsidiary of Cytec Industries PTE Limited, Singapore. It is a relatively new company having moderate track record. As per the financial available (i.e. December 2012) it seems that it is the company’s first year of business operation and the company has achieved minimal turnover and incurred a heavy loss from its operations. Trade relations are reported to be improving. Business is active. Payment terns are reported to be 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 – 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 worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

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 :	G-54, MIDC Industrial Estate, Butibori, Nagpur – 441110, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	sanam.u@kennis.in

DIRECTORS

As on: 08.07.2013

Name :	Ms. Evelyn Khoo Yue Ming
Designation :	Director
Address :	Unit C-3 A-3, Puncak Prima Condo, 1 Jalan Sri Hartamas 17 W., Persekutuan (Kl), Kuala Lumpur 50480
Date of Birth/Age :	11.07.1970
Date of Appointment :	09.01.2012
DIN No.:	05151021
Name :	Mr. Lim Kim Swee
Designation :	Director
Address :	188 Jalan SJ 5.6, Taman Seremban, Jaya Negeri Sembilan, Seremban, 70450
Date of Birth/Age :	16.02.1970
Date of Appointment :	09.01.2012
DIN No.:	05151107

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 08.07.2013

Names of Shareholders	No. of Shares
Cytec Industries Pte. Limited, Singapore	52404759
Cytec Netherlands Holding BV, The Netherlands	5241
Total	52410000

Equity Share Break up (Percentage of Total Equity)

As on: 08.07.2013

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Subject is engaged in the business of manufacture, sale and trading of specialty chemicals used in copper mining industry.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	Not Available

Banking Relations :	--
Auditors :
Name :	B B S R and Company Chartered Accountants
Address :	703, 7Th Floor, Godrej Castelmaline, Off Bund Garden Road
PAN No.:	AAKFB4397F
Holding Company :	Cytec Industries Pte. Llimited, Singapore
Ultimate Holding Company :	Cytec Industries Inc, USA
Fellow Subsidiary Company :	Cytec Netherlands Holding BV

CAPITAL STRUCTURE

As on: 31.12.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
52410000	Equity Shares	Rs.10/- each	Rs.524.100 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
52410000	Equity Shares	Rs.10/- each	Rs.524.100 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2012
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	524.100
(b) Reserves & Surplus	(270.744)
(c) Money received against share warrants	0.000
(2) Share Application money pending allotment	0.000
Total Shareholders’ Funds (1) + (2)	253.356
(3) Non-Current Liabilities
(a) long-term borrowings	1536.000
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	284.885
(d) long-term provisions	3.244
Total Non-current Liabilities (3)	1824.129
(4) Current Liabilities
(a) Short term borrowings	0.000
(b) Trade payables	16.988
(c) Other current liabilities	83.682
(d) Short-term provisions	0.533
Total Current Liabilities (4)	101.203
TOTAL	2178.688
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	99.132
(ii) Intangible Assets	1197.600
(iii) Capital work-in-progress	272.066
(iv) Intangible assets under development	0.000
(b) Non-current Investments	0.000
(c) Deferred tax assets (net)	0.000
(d) Long-term Loan and Advances	31.896
(e) Other Non-current assets	0.000
Total Non-Current Assets	1600.694
(2) Current assets
(a) Current investments	0.000
(b) Inventories	64.091
(c) Trade receivables	0.046
(d) Cash and cash equivalents	512.705
(e) Short-term loans and advances	0.821
(f) Other current assets	0.329
Total Current Assets	577.992
TOTAL	2178.688

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2012
	SALES
		Net Revenue From Operations	0.773
		Other Operating Revenue	0.919
		Other Income	25.022
		TOTAL (A)	26.714
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	69.116
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(42.402)
Less	FINANCIAL EXPENSES (D)		0.000
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(42.402)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		228.342
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(270.744)
Less	TAX (H)		0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(270.744)
	BALANCE CARRIED TO THE B/S		(270.744)
	Earnings/ (Loss) Per Share (Rs.)		(5.17)

KEY RATIOS

PARTICULARS		31.12.2012
PAT / Total Income	(%)	(1013.49)
Net Profit Margin (PBT/Sales)	(%)	(35025.10)
Return on Total Assets (PBT/Total Assets}	(%)	(14.20)
Return on Investment (ROI) (PBT/Networth)		(1.07)
Debt Equity Ratio (Total Debt/Networth)		6.06
Current Ratio (Current Asset/Current Liability)		5.71

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 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	Yes
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	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 LOAN

(Rs. In Millions)

Particular	As on 31.12.2012
LONG-TERM BORROWINGS
Fully convertible Debentures intercorporate	1536.000
Total	1536.000

Note:

The Registered Office of the company has been shifted from 102, Krishna Chambers, 59 New Marine Line, Mumbai – 400020, Maharashtra, India to the present address w.e.f. 29.05.2012

OVERVIEW AND COMPANY PERFORMANCE:

As planned, the Company has managed to start its operations in its very first year of the incorporation.

The chemical industry is the central to the modern world economy having a typical sales-to-GDP ratio of 5-6%. The global chemical production growth slowed down from 4.4% p.a. in 1999-2004 to 3.6% p.a. in 2004-2009, with the global chemical sales in FY10 valued at $3.4 trillion.

The global chemicals industry is witnessing a gradual eastward shift. The industry is increasingly moving eastwards in line with the shift of its key consumer industries (e.g automotive, electronics, etc.) to leverage greater manufacturing competitiveness of emerging the Asian economies and to serve the increasing local demand. Over the last 10 years, the share of Asia in the global chemical sales has increased by 14% points, rising from 31% in 1999 to 45% in 2009.

With Asia’s growing contributions to the global chemical industry, India emerges as one of the focus destinations for the chemical companies worldwide. With the current size of $108 billion, the Indian chemical industry accounts for approximately 7% of the Indian GDP. The chemicals sector accounts for about 14% in the overall index of industrial production (IIP). The share of industry in national exports is around 11%. In terms of volume, India is the third-largest producer of chemicals in Asia, after China and Japan. Despite its large size and significant GDP contributions, the Indian chemical industry represents only around 3% of global chemicals.

In the case scenario, with current initiatives of industry and government, the Indian chemical industry could grow at 11% p.a. to reach a size of $224 billion by 2017. In such an optimistic scenario, the high end use demand based on the increasing per capita consumption, improved export competitiveness and resultant growth impact for each sub-sector of the chemical industry could lead to an overall growth rate of over 15% p.a. and a size of $290 billion by 2017 (~6% of the global industry).

The Company is looking to capitalize on this opportunity to gain strong foothold in its segment in near future.

BACKGROUND

Subject ('Cytec India' or 'the Company') was incorporated on 9 January 2012. The Company is engaged in the business of manufacture, sale and trading of specialty chemicals used in copper mining industry. These are the first financial statement prepared by the Company covering the period from 9 January 2012 to 31 December 2012 (the period).

The Company entered into a Business Transfer Agreement (BTA) with Star Orechem International Private Limited (SOIL) and acquired the assets and liabilities of the manufacturing business of SOIL on a Slump Sale basis on March 30, 2012. As at the year end, pending enhancement in the production capacity and evaluation of safety standards of the plant and machinery purchased from SOIL, production and trading activities had not commenced.

Notes: No Charges Exist for Company

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Office Equipment

· Computer Equipments

Intangible Assets

· Goodwill

· 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.62.19
UK Pound	1	Rs.102.14
Euro	1	Rs.84.74

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
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	2
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.