MIRA INFORM REPORT

Report Date :

04.01.2014

IDENTIFICATION DETAILS

Name :	MONACHEM ADDITIVES PRIVATE LIMITED
Registered Office :	401/A, 4th Floor, Synergy Square, Krishna Industrial Estate, Opposite BIDC, Gorwa, Vadodara – 390016, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	25.10.2007
Com. Reg. No.:	04-052058
Capital Investment / Paid-up Capital :	Rs. 12.600 Millions
CIN No.: [Company Identification No.]	U24100GJ2007PTC052058
IEC No.:	3407004834
TAN No.: [Tax Deduction & Collection Account No.]	BRDM02948B
PAN No.: [Permanent Account No.]	AAFCM2739M
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Polymer Additives and Speciality Chemicals
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 160000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered normal for 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 – 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 / Head Office :	401/A, 4th Floor, Synergy Square, Krishna Industrial Estate, Opposite BIDC, Gorwa, Vadodara – 390016, Gujarat, India
Tel. No.:	91-265-3028999/ 3028900
Mobile No.:	91-9376236949 (Mr. Shamik Shah)
Fax No.:	91-265-3028990
E-Mail :	anant_shah@monachem.com shamil_shah@monachem.com dilip_shah@monachem.com sales@monachem.com hiren_patel@monachem.com
Website :	http://www.monachem.com
Area :	2000 sq. ft.
Location :	Owned

DIRECTORS

AS ON 26.09.2013

Name :

Mr. Shamik Shah Dilip

Designation :

Director

Address :

9/10, Sarswati Society, Behind Sevashray Society, Vasna Road, Vadodara – 390015, Gujarat, India

Date of Birth/Age :

24.07.1978

Qualification :

BE, Petro Chemical, MBA from USA

Date of Appointment :

25.10.2007

DIN No.:

01843803

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	U24100GJ2007PTC052058	MONACHEM ADDITIVES PRIVATE LIMITED	Director	25/10/2007	25/10/2007	Active	NO
2	U24119GJ2008PTC053734	ADDPOL CHEMSPECIALITIES PRIVATE LIMITED	Director	29/04/2008	29/04/2008	Active	NO

Name :

Mr. Dilip Govindlal Shah

Designation :

Director

Address :

9/10, Sarswati Society, Behind Sevashray Society, Vasna Road, Vadodara – 390015, Gujarat, India

Date of Birth/Age :

23.01.1950

Qualification :

BSC

Date of Appointment :

25.10.2007

DIN No.:

01843830

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	U24100GJ2007PTC052058	MONACHEM ADDITIVES PRIVATE LIMITED	Director	25/10/2007	25/10/2007	Active	NO
2	U24119GJ2008PTC053734	ADDPOL CHEMSPECIALITIES PRIVATE LIMITED	Director	29/04/2008	29/04/2008	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2013

Names of Shareholders	No. of Shares
Shamik Shah Dilip	1105000
Dilip Govindlal Shah	155000
Total	1260000

AS ON 26.09.2013

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

BUSINESS DETAILS

Line of Business :

Trader and Importer of Polymer Additives and Speciality Chemicals

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· HDFC Bank Limited

HDFC Bank House, Senapati Bapat Marg, Lower Parel [West], Mumbai - 400013, Maharashtra, India

· Dhanlaxmi Bank

Kotak Mahindra Bank Limited

ICICI Bank Limited

Bank of India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
From Banks HDFC Bank I-20 Car Loan	0.425	0.000
HDFC Bank-Maruti Swift Dzire	0.120	0.218
HDFC Bank-Maruti Swift	0.000	0.028
Finance Companies SE Investments Private Limited	0.000	3.127
SHORT TERM BORROWINGS
Cash Credit HDFC Bank (Secured against property of Director – Personal Guarantee of the Directors and Charge on Stock and Debtors)	43.143	46.279
Total	43.688	49.652

Banking Relations :	--
Financial Institutions :	· Religare Investments Tata Capital Limited SE Investments Private Limited
Auditors :
Name :	Lalpuria Patel and Associates Chartered Accountants
Address :	318/ 319/ 320, Saffron Tower, Opposite Camp's Corner, Fatehgunj, Vadodara – 390002, Gujarat, India
Tel. No.:	91-265-2786759/ 2794070
Fax No.:	91-265-2794070
E-Mail :	iqabaroda@gmail.com
Income-tax PAN of auditor or auditor's firm :	AAAFL5406B

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2,000,000	Equity Shares	Rs. 10/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,260,000	Equity Shares	Rs. 10/- each	Rs. 12.600 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	12.600	12.600	12.600
(b) Reserves & Surplus	28.371	24.680	25.033
(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)	40.971	37.280	37.633
(3) Non-Current Liabilities
(a) long-term borrowings	8.521	18.110	5.499
(b) Deferred tax liabilities (Net)	0.151	0.198	0.184
(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)	8.672	18.308	5.683
(4) Current Liabilities
(a) Short term borrowings	43.143	46.279	35.950
(b) Trade payables	18.811	19.275	17.067
(c) Other current liabilities	14.432	21.926	5.631
(d) Short-term provisions	3.789	2.714	7.576
Total Current Liabilities (4)	80.175	90.194	66.224
TOTAL	129.818	145.782	109.540
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	17.746	18.032	2.337
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.271	9.242
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.247	7.600	0.000
(c) Deferred tax assets (net)	0.000	0.017	0.034
(d) Long-term Loan and Advances	0.663	0.673	0.424
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	18.656	26.593	12.037
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	42.318	66.271	33.058
(c) Trade receivables	53.681	46.894	50.254
(d) Cash and cash equivalents	8.184	1.523	1.486
(e) Short-term loans and advances	6.979	4.501	12.705
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	111.162	119.189	97.503
TOTAL	129.818	145.782	109.540

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		TOTAL	408.440	468.097	413.097
Less	EXPENSES
		TOTAL	400.996	463.856	391.586
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7.444	4.241	21.511
Less/ Add	DEPRECIATION/ AMORTISATION		1.986	1.658	0.728
	PROFIT BEFORE TAX		5.458	2.583	20.783
Less	TAX		1.767	0.813	7.105
	PROFIT AFTER TAX		3.691	1.770	13.678
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		24.680	25.033	11.355
Less	APPROPRIATIONS
		Interim Dividend	0.000	1.827	0.000
		Tax on Dividend	0.000	0.296	0.000
	BALANCE CARRIED TO THE B/S		28.371	24.680	25.033
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	8.078	11.302	5.908
	Earnings Per Share (Rs.)		2.93	1.41	10.86

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.90	0.38	3.31
Return on Total Assets (PBT/Total Assets}	(%)	4.21	1.87	20.73
Return on Investment (ROI) (PBT/Networth)		0.13	0.07	0.55
Debt Equity Ratio (Total Debt/Networth)		1.26	1.73	1.10
Current Ratio (Current Asset/Current Liability)		1.39	1.32	1.47

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	Yes
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	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	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	No
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	10177678	10/12/2011 *	53,300,000.00	HDFC BANK LIMITED	HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL [WEST], MUMBAI - 400013, MAHARASHTRA, INDIA	B27552371

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
From Banks Dhanlaxmi Bank	0.505	1.015
Finance Companies Kotak Mahindra Bank Limited	0.418	1.528
Religare Investments	0.778	2.407
Tata Capital Limited	0.000	1.345
Related Parties Dilip G. Shah (Loan 1)	0.529	1.442
Dilip G. Shah (Loan 2)	5.746	7.000
Total	7.976	14.737

CHANGE OF ADDRESS:

The Registered Office of the company has been shifted from 604, A, Galav Chamber, Near Sardar Patel Statue, Sayajigunj, Vadodara – 390005, Gujarat, India to the present address w.e.f.01.03.2011

FIXED ASSETS:

· Air Conditioner

Computer Lan System

Computer Printer

Furniture

Office Equipment

Sawing Machines

Vehicles

Computer Software

Office Building

Land

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 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. 62.41
UK Pound	1	Rs. 102.54
Euro	1	Rs. 85.20

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.