MIRA INFORM REPORT

Report Date :

19.02.2014

IDENTIFICATION DETAILS

Name :	BARODA TEXTILE EFFECTS PRIVATE LIMITED (w.e.f. 19.02.2010)
Formerly Known As :	BARODA TEXTILE EFFECTS LIMITED
Registered Office :	Village Umraya, Taluka Padra, Vadodara – 391440, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	25.06.2007
Com. Reg. No.:	11-051201
Capital Investment / Paid-up Capital :	Rs. 871.760 Millions
CIN No.: [Company Identification No.]	U24100GJ2007PTC051201
TAN No.: [Tax Deduction & Collection Account No.]	BRDB01726E
PAN No.: [Permanent Account No.]	AADCB2097E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Synthetic Organic Dyes.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ca (17)

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 a subsidiary of Huntsman International (India) Private Limited. It is an established company having moderate track record. The management has reported huge accumulated loss due to which the company has erorded its networth during 2013. The ratings also take into consideration the huge external borrowings reported in the books for satisfying the working capital requirements which are further backed by the corporate guarantees extended by Huntsman International (India) Private Limited which is seen as a reputed and creditworthy firm in the industry. Business is active. Payment terms are reported as slow. In view of financial and technical support extended by the group company, the subject can be considered for business dealings 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 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.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term fund based limits: “A-” (Structured Obligation)
Rating Explanation	Adequate degree of safety and low credit risk.
Date	January, 2014

Rating Agency Name	ICRA
Rating	Short term limits: “A2+” (Structured Obligation)
Rating Explanation	Strong degree of safety and low credit risk.
Date	January, 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 31-03-2012.

INFORMATION DECLINED BY

Name :	Mr. Iliyas
Designation :	Senior Taxation Executive
Contact No.:	91-2662-244042
Date :	17.02.2014

LOCATIONS

Registered/ Administrative Office :	Village Umraya, Taluka Padra, Vadodara – 391440, Gujarat, India
Tel. No.:	91-2662-244042/6 /244400/ 308400
Fax No.:	91-2662-244395/ 308401
E-Mail :	pratik_shah@huntsman.com btel@huntsman.com iliyas_ghanani@huntsman.com pranali_n_dhumal@huntsman.com
Website :	www.huntsman.com
Administrative Office :	5^th Floor, “Suryarath”, Panchwati, Ellis Bridge, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-26468016/26427713
Fax No.:	91-79-26407838

DIRECTORS

As on 27.11.2013

Name :	Mr. Durgaprasad Venkatesh Kamat
Designation :	Director
Address :	302, Sachi Residency, 18 Saraswati Society, Vasanrd Road, Vadodara – 390020, Gujarat, India
Date of Birth/Age :	22.07.1965
Date of Appointment :	22.06.2009
PAN No.:	SCXPK8788N
DIN No. :	02169775
Name :	Mr. Alok Biyani
Designation :	Director
Address :	113/3, Dakshindari Road, Dinesh Apartments, Flat No. A – 5 – 3, Shreebhumi, Kolkata – 700048, West Bengal, India
Date of Birth/Age :	28.03.1968
Date of Appointment :	22.06.2009
DIN No. :	02679965
Name :	Anuraag Harshad Kothari
Designation :	Director
Address :	703, Brookfield, Lokhandwala Complex, Andheir (West), Mumbai – 400053, Maharahatra, India
Date of Birth/Age :	29.01.1974
Date of Appointment :	18.09.2013
DIN No. :	00167963

KEY EXECUTIVES

Name :	Mr. Iliyas
Designation :	Senior Taxation Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.11.2013

Names of Equity Shareholders	No. of Shares
Huntsman International (India) Private Limited, India	59173666
Huntsman Advanced Materials (India) Private Limited, India	2500
Total	59176166

Names of Preference Shareholders	No. of Shares
Huntsman Advanced Materials (India) Private Limited, India	28000000
Total	28000000

As on 27.11.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Synthetic Organic Dyes.

Products :

Item Code No. (ITC Code)	Product Description
32041650	Dyes

Exports :

Not Divulged

Imports :

Not Divulged

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Not Divulged

Bankers :

· Axis Bank Limited, Trishul, 3rd Floor, Opposite Samartheshwar Temple, Law Garden Ellisbridge, Ahmedabad - 380006, Gujarat, India

· Export-Import Bank Of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai - 400005, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions) (6 Months4)	30.09.2012 (Rs. In Millions) (18 Months)
SHORT TERM BORROWINGS
Working capital loans from banks	273.280	352.170
Loans and advances from directors	1460.000	1310.000
Total	1733.280	1662.170

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Indiabulls Finance Center, Tower-3, 32^nd Floor, Elphinstone (West) Mumbai - 400013, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AADFD2337G
Holding company:	Huntsman International (India) Private Limited, India CIN No.: U24117MH2001PTC131020
Associate:	· Huntsman (Thailand) Limited · Huntsman Advanced Materials (Switzerland) Gmbh, Basle · Huntsman Advanced Materials HK. Limited, Hongkong · Huntsman Qumica Brazil Limited, Brazil · Huntsman International Mexico, Mexico · Huntsman Singapore Pte Limited · Huntsman Textile Effects (Qingdao) Company Limited · Huntsman Textile Effects (Panama) · Hunt sman International LLC · Pt. Huntsman Indonesia · Huntsman Chemical Trading (Shanghai) Limited · Huntsman Colombia LTDA · Huntsman Argentina SRL · Huntsman Advanced Materials (India) Private Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
59,176,166	Equity Shares	Rs.10/- each	Rs. 591.760 Millions
28,000,000	Preference Shares	Rs.10/- each	Rs. 280.000 Millions
	Total		Rs. 871.760 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
59,176,166	Equity Shares	Rs.10/- each	Rs. 591.760 Millions
28,000,000	Preference Shares	Rs.10/- each	Rs. 280.000 Millions
	Total		Rs. 871.760 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013 (6 Months)	30.09.2012 (18 Months)	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	871.760	871.760	817.500
(b) Reserves & Surplus	(1,101.200)	(973.970)	(554.890)
(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)	(229.440)	(102.210)	262.610
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000	317.130
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	4.950	3.170	0.000
(d) long-term provisions	0.000	0.000	2.930
Total Non-current Liabilities (3)	4.950	3.170	320.060
(4) Current Liabilities
(a) Short term borrowings	1,733.280	1,662.170	1,462.580
(b) Trade payables	947.430	743.590	470.250
(c) Other current liabilities	623.280	555.030	242.140
(d) Short-term provisions	0.100	0.060	0.080
Total Current Liabilities (4)	3,304.090	2,960.850	2,175.050
TOTAL	3,079.600	2,861.810	2,757.720
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1,306.650	1,341.500	1,444.680
(ii) Intangible Assets	31.520	47.240	94.560
(iii) Capital work-in-progress	328.230	250.080	39.030
(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)	0.000	0.000	0.000
(d) Long-term Loan and Advances	9.410	8.780	9.340
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1,675.810	1,647.600	1,587.610
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	464.280	371.520	442.570
(c) Trade receivables	584.210	606.820	482.990
(d) Cash and cash equivalents	24.640	24.130	20.300
(e) Short-term loans and advances	329.380	211.190	223.380
(f) Other current assets	1.280	0.550	0.870
Total Current Assets	1,403.790	1,214.210	1,170.110
TOTAL	3,079.600	2,861.810	2,757.720

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013 (6 Months)	30.09.2012 (18 Months)	31.03.2011
	SALES
		TOTAL	1502.300	3625.590	2274.000
Less	EXPENSES
		TOTAL	1629.530 (Including Depreciation)	4294.270 (Including Depreciation)	2420.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION				(146.000)
Less/ Add	DEPRECIATION/ AMORTISATION				196.000
	PROFIT/ (LOSS) BEFORE TAX		(127.230)	(668.680)	(342.000)
Less	TAX		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX		(127.230)	(668.680)	(342.000)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1499.380)	(830.700)	(489.000)
	BALANCE CARRIED TO THE B/S		(1626.610)	(1499.380)	(831.000)
	EARNINGS IN FOREIGN CURRENCY		NA	1088.310	13467.000
	IMPORTS
		Raw Material			315.857
		Capital Goods			8.124
		Spares			0.054
	TOTAL IMPORTS		NA	NA	324.035
	Earnings / (Loss) Per Share (Rs.)		(1.46)	(7.67)	NA

KEY RATIOS

PARTICULARS		31.03.2013 (6 Months)	30.09.2012 (18 Months)	31.03.2011
PAT / Total Income	(%)	(8.47)	(18.44)	(15.04)
Return on Total Assets (PBT/Total Assets}	(%)	(4.62)	(25.60)	(12.58)
Return on Investment (ROI) (PBT/Networth)		0.55	6.54	(1.30)
Debt Equity Ratio (Total Debt/Networth)		(7.55)	(16.26)	6.78
Current Ratio (Current Asset/Current Liability)		0.42	0.41	0.54

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	30.09.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	817.500	871.760	871.760
Reserves & Surplus	(554.890)	(973.970)	(1101.200)
Net worth	262.610	(102.210)	(229.440)
long-term borrowings	317.130	0.000	0.000
Short term borrowings	1462.580	1662.170	1733.280
Total borrowings	1,779.710	1,662.170	1,733.280
Debt/Equity ratio	6.777	(16.262)	(7.554)

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	30.09.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	2274.000	3625.590	1502.300
		59.437	(58.564)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	30.09.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	2274.000	3625.590	1502.300
Profit	(342.000)	(668.680)	(127.230)
	(15.04%)	(18.44%)	(8.47%)

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]	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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10167867	25/06/2013 *	568,000,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD - 380006, GUJARAT, INDIA	B79769113
2	10164228	25/06/2013 *	568,000,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD - 380006, GUJARAT, INDIA	B79769808

* Date of charge modification

BUSINESS REVIEW

During the period, the company has registered a loss of INR 127.230 millions as against previous period loss of INR 668.680 million.

FIXED ASSETS

v Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

v Intangible Assets

· Licenses and Franchise

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.62.12
UK Pound	1	Rs.103.93
Euro	1	Rs.85.17

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	1
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--RESERVES	1~10	1
--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		17

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.