MIRA INFORM REPORT

Report Date :

03.01.2014

IDENTIFICATION DETAILS

Name :	MELOG SPECIALITY CHEMICALS PRIVATE LIMITED
Registered Office :	201 /B Runwal and Omkar Esquare, Opposite Sion Chunabhatti, Signal, Eastern Express Highway, Sion (East), Mumbai – 400022, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	20.09.2002
Com. Reg. No.:	11-137297
Capital Investment / Paid-up Capital :	Rs. 408.098 Millions
CIN No.: [Company Identification No.]	U24100MH2002PTC137297
TAN No.: [Tax Deduction & Collection Account No.]	MUMM23022G
PAN No.: [Permanent Account No.]	AADCM3976F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Industrial Chemicals Supplies, Chemicals, Medical and Specialty Gases.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 1100000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears some accumulated losses recorded by the company. However, trade relations are fair. Business is active. Payment terms are slow. The company can be considered for business dealing 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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

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 :	201 /B Runwal and Omkar Esquare, Opposite Sion Chunabhatti, Signal, Eastern Express Highway, Sion (East), Mumbai – 400022, Maharashtra, India
Tel. No.:	91-22-24081528 / 24081529
Fax No.:	91-22-24077375
E-Mail :	melog@melog.co.in mktg@metrosun.com
Website :	http://www.metrosun.com
Factory 1 :	N-5, Additional Ambarnath, MIDC, Ambarnath-421 501, District: Thane, Maharashtra, India
Tel. No.:	91-251-2621257 / 2621161 / 2520148
Fax No.:	91-251-262 0011

DIRECTORS

As on 30.09.2013

Name :	Mr. Rajiv Nagindas Sheth
Designation :	Managing Director
Address :	“Padmalaya”, 5/143-B, Sion (West), Mumbai-400022, Maharashtra, India
Date of Birth/Age :	05.11.1964
Date of Appointment :	20.09.2002
DIN No.:	00563468
Name :	Mr. Nagindas Padamshi Sheth
Designation :	Director
Address :	5- Padmalaya, 143- B, Sion (WEST), Mumbai – 400022, Maharashtra, India
Date of Birth/Age :	24.01.1933
Date of Appointment :	17.03.2010
DIN No.:	00760205
PAN No.:	APGPS8655G
Name :	Mr. Yasuhiko Nobutsuka
Designation :	Director
Address :	2-251-205, Jyuno – Cho, Omiya Ku, Saitama, Saitama – 3310823, Japan
Date of Birth/Age :	12.01.1948
Date of Appointment :	25.07.2003
DIN No.:	02865314
Name :	Mr. Sandeep Dattatray Gharat
Designation :	Alternate Director
Address :	201, Datta Parshuram CHS Limited, Nehru Road,Dombivali (EAST), Mumbai – 421201, Maharashtra, India
Date of Birth/Age :	01.01.1964
Date of Appointment :	17.03.2010
DIN No.:	02988916
Name :	Mr. Dae Geun Gwang Jeon Yoo
Designation :	Nominee Director
Address :	#2-10-9, Tsukuda, Chuo-Ku, Tokyo 104-0051, Japan 1040051
Date of Birth/Age :	11.11.1956
Date of Appointment :	27.07.2012
DIN No.:	05340634

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders (Equity Shares)	No. of Shares
Rajiv Nagin Sheth	118720
Metropolitan Exichem Limited, India	5194000
Nagin P sheth	93280
OG Corporation	5194000
Total	10600000

Names of Shareholders (Preference Shares)	No. of Shares
Rajiv Nagin Sheth	184744
Metropolitan Exichem Limited, India	9062550
Nagin P sheth	145156
OG Corporation	20817330
Total	30209780

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	49.00
Bodies corporate	49.00
Directors or relatives of Directors	2.00
Total	100.00

BUSINESS DETAILS

Line of Business :

 Manufacturer of Industrial Chemicals Supplies, Chemicals, Medical and Specialty Gases.

Products :

Product Description	ITC Code
Phenols- Phenol- Alchohole	29072990

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Canara Bank, Mandvi Branch, Sujeer House, 74, 76, Kazi Sayad Street,, Mumbai - 400003, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Short-term borrowings
Loans repayable on demand from banks	10.380	6.000
Total	10.380	6.000

Banking Relations :	---
Auditors :
Name :	Sheth Doctor and Associates Chartered Accountants
Address :	24, Navjivan Commercial Premises, Co- Operative Society, 11^th Floor, Lamington Road, Mumbai-400008, Maharashtra, India
Tel. No.:	91-22-65715917
Mobile No.:
Fax No.:	91-22-23020050
E-Mail :	doctor_paresh@yahoo.co.in
PAN No.:	AAYFS4589A
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives	· Metropolitan Eximchem Limited · O G Corporation · SRN Engineers and Associates Private Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10600000	Equity Shares	Rs. 10/- each	Rs.106.000 Millions
30400000	Redeemable and Cumulative Preference Shares	Rs. 10/- each	Rs.304.000 Millions
	Total		Rs.410.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10600000	Equity Shares	Rs. 10/- each	Rs.106.000 Millions
30209780	Redeemable and Cumulative Preference Shares	Rs. 10/- each	Rs.302.098 Millions
	Total		Rs.408.098 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	408.098	408.098	408.098
(b) Reserves & Surplus	(115.140)	(95.727)	(89.679)
(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)	292.958	312.371	318.419
(3) Non-Current Liabilities
(a) long-term borrowings	17.470	4.570	4.570
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.030	0.030	0.030
(d) long-term provisions	0.993	0.718	0.511
Total Non-current Liabilities (3)	18.493	5.318	5.111
(4) Current Liabilities
(a) Short term borrowings	10.380	6.000	3.003
(b) Trade payables	51.664	12.709	24.162
(c) Other current liabilities	30.413	19.907	6.973
(d) Short-term provisions	0.496	0.490	0.409
Total Current Liabilities (4)	92.953	39.106	34.547
TOTAL	404.404	356.795	358.077
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	275.519	243.355	245.905
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	1.751	31.196	0.971
(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)	50.409	41.966	39.472
(d) Long-term Loan and Advances	15.567	16.828	12.434
(e) Other Non-current assets	1.245	0.160	1.764
Total Non-Current Assets	344.491	333.505	300.546
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	48.989	10.667	46.033
(c) Trade receivables	2.351	0.115	6.802
(d) Cash and cash equivalents	0.433	5.148	0.979
(e) Short-term loans and advances	8.012	7.061	3.568
(f) Other current assets	0.128	0.299	0.149
Total Current Assets	59.913	23.290	57.531
TOTAL	404.404	356.795	358.077

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	226.746	174.414	203.339
		Other Income
		TOTAL	226.746	174.414	203.339
Less	EXPENSES
		Office Expenses
		Administrative Expenses	232.765	217.537	209.049
		Advertising Expenses
		TOTAL	232.765	217.537	209.049
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(6.019)	(43.123)	(5.710)
Less/ Add	DEPRECIATION/ AMORTISATION		16.278	14.490	14.079
	PROFIT/ (LOSS) BEFORE EXTRA-ORDINARY ITEMS		(22.297)	(57.613)	(19.789)
Less/ Add	Extra-ordinary and Exceptional Items		(5.558)	49.084	0.000
	PROFIT / (LOSS) BEFORE TAX		(27.855)	(8.529)	(19.789)
Less	TAX		(8.443)	(2.481)	(2.920)
	PROFIT / (LOSS) AFTER TAX		(19.412)	(6.048)	(16.869)
	Earnings / (Loss) Per Share (Rs.)		(0.48)	(0.15)	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(8.56)	(3.47)	(8.30)
Return on Total Assets (PBT/Total Assets}	(%)	(7.91)	(3.01)	(0.06)
Return on Investment (ROI) (PBT/Networth)		(0.10)	(0.03)	(0.06)
Debt Equity Ratio (Total Debt /Networth)		0.10	0.03	0.02
Current Ratio (Current Asset/Current Liability)		0.64	0.60	1.67

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 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	No

Note:

The registered office of the company has been shifted from 5/283, Meghdoot Flank Road, Sion (East), Mumbai-400022, Maharashtra, Indai to present address w.e.f. 17.12.2012

OPERATIONS:

During the year total revenue increased by 30.00% over the previous year and loss before extra-ordinary items declined by 61.30% over the previous year. Extra-ordinary and Exceptional items represent Excise Rebate Claims of Rs.55 Lacs written off due to withdrawal of EOU status and impossible to recover. Current year expense includes demand for Property Tax from Ambernath Municipal Corporation for Rs.4.407 Millions for the year 2010 to 2013 as the same has been received during the year. Turnaround of Company occurred as cash loss is reduced drastically in spite of Yen depreciation in the world market. They have improved Material consumption ratio much lower than last year. Production is also increased. New products are being launched and trial runs have started. Directors hope that the operations of the company shall continue to improve during current year.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2013	As on 31.03.2012
Long-term borrowings
Loans and advances from others	17.470	4.570
Total	17.470	4.570

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10248868	26/12/2012 *	49,000,000.00	CANARA BANK	MANDVI BRANCH, SUJEER HOUSE, 74, 76, KAZI SAYAD STREET, MUMBAI, MAHARASHTRA - 400003, INDIA	B66262205

* Date of charge modification

FIXED ASSETS

· Leasehold Land

· Factory Building

· Plant and Machinery

· Computers and Peripherals

· Furniture and Fixtures

· Office Equipments

· Scooter

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.61.90
UK Pound	1	Rs.102.74
Euro	1	Rs.85.16

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		26

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.