MIRA INFORM REPORT

Report Date :

10.02.2014

IDENTIFICATION DETAILS

Name :	S.R.K.CHEMICALS LIMITED [w.e.f.21.02.2008]
Formerly Known As :	S.R.K.CHEMICALS PRIVATE LIMITED
Registered Office :	Neelkanth B B Z S 60 , Zanda Chowk, Gandhidham - 370201, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	08.12.2005
Com. Reg. No.:	04-047229
Capital Investment / Paid-up Capital :	Rs.19.900 Millions
CIN No.: [Company Identification No.]	U24298GJ2005PLC047229
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Trading of Industrial Salt and Agricultural Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 109200
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company has shown a huge growth in the turnover of the company during 2013. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered for normal 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 – 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. Vijay
Designation :	Accounts Department
Contact No.:	91-2836-220103/ 223560 91-9426277405

LOCATIONS

Registered Office :	Neelkanth B B Z S 60 , Zanda Chowk, Gandhidham - 370201, Gujarat, India
Tel. No.:	91-2836-220103/ 223560
Mobile No.:	91-9426277405 [Mr. Vijay]
Fax No.:	91-2836-223560
E-Mail :	neelcoal@rediffmail.com info@neelkanth.co.in
Website :	www.neelkanth.co.in

DIRECTORS

AS ON 21.09.2013

Name :

Mr. Arjanbhai Sadhabhai Kangad

Designation :

Director

Address :

Plot No. 36, Sector 2, Gandhidham - 370201, Gujarat, India

Date of Birth/Age :

18.09.1958

Date of Appointment :

08.12.2005

Din No.:

00782366

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	Company/ LLP Status	Defaulting status
1	U24290GJ2003PTC043272	NEELKANTH COAL MANUFACTURING PRIVATE LIMITED	Director	03/12/2003	03/12/2003	Active	NO
2	U24298GJ2005PLC047229	S.R.K.CHEMICALS LIMITED	Director	08/12/2005	08/12/2005	Active	NO
3	U45200GJ2005PLC047230	NEELKANTH INFRASTRUCTURE LIMITED	Director	08/12/2005	08/12/2005	Active	NO
4	U14220GJ1990PTC013645	AHIR SALT AND ALLIED PRODUCTS PRIVATE LIMITED	Director	01/11/2011	01/11/2011	Active	NO

Name :

Mr. Tejabhai Sadhabhai Kangad

Designation :

Director

Address :

Plot No. 35, Sector 2, Gandhidham - 370201, Gujarat, India

Date of Birth/Age :

18.09.1958

Date of Appointment :

08.12.2005

Din No.:

01225981

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	Company/ LLP Status	Defaulting status
1	U24290GJ2003PTC043272	NEELKANTH COAL MANUFACTURING PRIVATE LIMITED	Director	10/12/2003	10/12/2003	Active	NO
2	U14220GJ1990PTC013645	AHIR SALT AND ALLIED PRODUCTS PRIVATE LIMITED	Director	01/04/2005	01/04/2005	Active	NO
3	U24298GJ2005PLC047229	S.R.K.CHEMICALS LIMITED	Director	08/12/2005	08/12/2005	Active	NO
4	U45200GJ2005PLC047230	NEELKANTH INFRASTRUCTURE LIMITED	Director	08/12/2005	08/12/2005	Active	NO

Name :

Mr. Shamjibhai Sadhabhai Kangad

Designation :

Director

Address :

B.B.Z-S 60, Zanda Chowk, Gandhidham - 370201, Gujarat, India

Date of Birth/Age :

10.08.1963

Date of Appointment :

08.12.2005

Din No.:

01360591

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	U14220GJ1990PTC013645	AHIR SALT AND ALLIED PRODUCTS PRIVATE LIMITED	Director	19/04/1990	19/04/1990	-	Active	NO
2	U24290GJ2003PTC043272	NEELKANTH COAL MANUFACTURING PRIVATE LIMITED	Director	10/12/2003	10/12/2003	-	Active	NO
3	U24298GJ2005PLC047229	S.R.K.CHEMICALS LIMITED	Director	08/12/2005	08/12/2005	-	Active	NO
4	U45200GJ2005PLC047230	NEELKANTH INFRASTRUCTURE LIMITED	Director	08/12/2005	08/12/2005	-	Active	NO
5	U63022GJ1999PTC036927	JAYAMBE COLD STORAGE AND FOOD PROCESSING PRIVATE LIMITED	Director	15/11/2007	15/11/2007	06/03/2008	Active	NO
6	U15499GJ2002PTC041563	AMARNATH FOODS PRIVATE LIMITED	Director	29/09/2012	27/07/2012	-	Active	NO

Name :

Mr. Hetab Shamjibhai Kangad

Designation :

Director

Address :

Plot No. 34, Sector 02, Gandhidham – 370201, Gujarat, India

Date of Birth/Age :

01.02.1988

Date of Appointment :

21.09.2013

Din No.:

06700588

KEY EXECUTIVES

Name :	Mr. Vijay
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 21.09.2013

Names of Shareholders	No. of Equity Shares	No. of Preferences Shares
Arjanbhai Sadhabhai Kangad	10000	--
Tejabhai Sadhabhai Kangad	10000	--
Shamjibhai Sadhabhai Kangad	10000	1000000
Deveben Arjanbhai Kangad	185000	--
Jasumatiben Tejabhai Kangad	505000	--
Ratiben Shamjibhai Kangad	495000	--
Mihir Tejabhai Kangad	85000	--
Bhumi H. Kangad	150000	--
Hetab S. Kangad	80000	--
Khimji A. Kangad	80000	--
Laxmi M. Kangad	150000	--
Neeta R. Kangad	150000	--
Raj S. Kangad	80000	--
TOTAL	1990000	1000000

AS ON 21.09.2013

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

BUSINESS DETAILS

Line of Business :

Trading of Industrial Salt and Agricultural Products.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of Baroda, Kandla Special Economic Zone Branch, Kasez, Gandhidham - 370201, Gujarat, India

· HDFC Bank Limited

· Oriental Bank of Commerce

· Punjab National Bank

Facilities :

Secured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Short Term Borrowings
Bank of Baroda OD A/C, KSEZ	30.000	0.000
TOTAL	30.000	0.000

Banking Relations :	--
Auditors :
Name :	I H Desai and Associates Chartered Accountants
Address :	F-13 & 14, First Floor, Shri Ganesh Buildings, Plot No. 572, Ward - 12/C, Gandhidham – 370201, Gujarat, India
Tel. No.:	91-2836-226582
Fax No.:	91-2836-222085
E-Mail :	skm_fca@rediffmail.com
PAN No:	AABFI5449L
Associates :	· Neelkanth Enterprise · Neelkanth Salt Supply Company · Neelkanth Agro Products

CAPITAL STRUCTURE

AS ON 21.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions
1000000	Preferences Shares	Rs.10/- each	Rs.10.000 Millions
	TOTAL		Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1990000	Equity Shares	Rs.10/- each	Rs.19.900 Millions
1000000	Preferences Shares	Rs.10/- each	Rs.10.000 Millions
	TOTAL		Rs.29.900 Millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1990000	Equity Shares	Rs.10/- each	Rs.19.900 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	19.900	0.500	0.500
(b) Reserves & Surplus	7.412	1.780	1.579
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.010	0.010	0.010
Total Shareholders’ Funds (1) + (2)	27.322	2.290	2.089
(3) Non-Current Liabilities
(a) long-term borrowings	1.242	1.080	2.500
(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	0.000	0.000	0.000
Total Non-current Liabilities (3)	1.242	1.080	2.500
(4) Current Liabilities
(a) Short term borrowings	30.000	0.000	0.000
(b) Trade payables	0.211	5.317	1.147
(c) Other current liabilities	0.707	0.037	0.038
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	30.918	5.354	1.185
TOTAL	59.482	8.724	5.774
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	0.978	0.975	0.980
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.007	0.006	0.006
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.165	0.130	0.080
Total Non-Current Assets	1.150	1.111	1.066
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	0.064
(c) Trade receivables	53.607	3.843	3.696
(d) Cash and cash equivalents	2.110	3.302	0.363
(e) Short-term loans and advances	1.541	0.108	0.110
(f) Other current assets	1.074	0.360	0.475
Total Current Assets	58.332	7.613	4.708
TOTAL	59.482	8.724	5.774

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	166.144	11.145	4.831
		Other Income	0.105	0.013	0.000
		TOTAL (A)	166.249	11.158	4.831
Less	EXPENSES
		Purchase	92.515	9.793	3.571
		Changes in Inventories	0.000	0.064	0.224
		Employee Benefits Expenses	0.262	0.366	0.024
		Other Expenses	65.033	0.618	0.585
		TOTAL (B)	157.810	10.841	4.404
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8.439	0.317	0.427
Less	FINANCIAL EXPENSES (D)		0.139	0.001	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.300	0.316	0.427
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.023	0.025	0.026
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		8.277	0.291	0.401
Less	TAX (H)		2.645	0.090	0.125
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		5.632	0.201	0.276
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.780	1.579	1.303
	BALANCE CARRIED TO THE B/S		7.412	1.780	1.579
	Earnings / (Loss) Per Share (Rs.)		3.00	4.02	5.52

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.39	1.80	5.71
Net Profit Margin (PBT/Sales)	(%)	4.97	2.61	8.30
Return on Total Assets (PBT/Total Assets}	(%)	13.92	3.34	6.95
Return on Investment (ROI) (PBT/Networth)		0.30	0.13	0.19
Debt Equity Ratio (Total Debt/Networth)		1.14	0.47	1.20
Current Ratio (Current Asset/Current Liability)		1.89	1.42	3.97

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	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	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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10410174	29/10/2013 *	126,000,000.00	BANK OF BARODA	KANDLA SPECIAL ECONOMIC ZONE BRANCH, KASEZ, GANDHIDHAM - 370201, GUJARAT, INDIA	B89227649
* Date of charge modification

OPERATIONS:

The company carried activity of trading of industrial salt and agricultural products during the year. The company purchased 87387.960 MT of industrial salt and sold 87387.960 MT of industrial salt during the year. Overall performance of the company during previous financial year remained growth oriented. Demand of the company product was constant and having upward trend of growth. Overall performance and operation of the company remained satisfactory.

Unsecured Loan	As on 31.03.2013 [Rs. in Millions]	As on 31.03.2012 [Rs. in Millions]
Long Term Borrowings
Arjanbhai Kangad	0.414	0.360
Shamjibhai Kangad	0.414	0.360
Tejabhai Kangad	0.414	0.360
TOTAL	1.242	1.080

FIXED ASSETS:

· Land

· Buildings

· Plant and Machinery

· Computer

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.62.32
UK Pound	1	Rs.101.78
Euro	1	Rs.84.68

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	3
--CREDIT LINES	1~10	5
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.