MIRA INFORM REPORT

Report Date :

09.05.2014

IDENTIFICATION DETAILS

Name :	CHAKRADHAR CHEMICALS PRIVATE LIMITED
Registered Office :	B- 4/161, Safdarjung Enclave, New Delhi – 110029, Delhi
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	06.10.1989
Com. Reg. No.:	55-211681
Capital Investment / Paid-up Capital :	Rs. 50.000 Millions
CIN No.: [Company Identification No.]	U27204DL1989PTC211681
TAN No.: [Tax Deduction & Collection Account No.]	MRTC00285F
PAN No.: [Permanent Account No.]	AAACC9047Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of chemicals fertilizers.
No. of Employees :	65 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 260000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company sales turnover has declined resulting into dip in profit of the company during financial year 2013. Further profitability of the company is low. However, trade relations are fair. Business is active. Payment terms are slow but correct. 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Cash Credit = BB- [Suspended]
Rating Explanation	Moderate risk of default and high credit risk.
Date	September 2012

Rating Agency Name	ICRA
Rating	Short term fund based facilities = A4 [Suspended]
Rating Explanation	Minimal degree of safety and high credit risk.
Date	September 2012

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 PARTED BY

Name :	Mr. Navin Gupta
Designation :	Accounts Executive
Contact No.:	91-1396-252353
Date :	08.05.2014

LOCATIONS

Registered Office :	B- 4/161, Safdarjung Enclave, New Delhi – 110029, Delhi, India
Tel. No.:	91-11-42141138
Fax No.:	Not Available
E-Mail :	rsjmca@gmail.com fert@chakradhar.co.in
Website :	www.chakradhar.co.in
Location :	Owned (Commercial)
Factory :	E3, UPSIDC Industrial Area, Begrajpur, Muzaffarnagar - 251203, Uttar Pradesh, India
Tel. No.:	91-1396-252353 / 252354 / 252878
Fax No.:	91-1396-252879
E-Mail :	fert@chakradhar.co.in

DIRECTORS

AS ON 05.08.2013

Name :

Mr. Murugappan Lakshmanan Annamalai

Designation :

Managing director

Address :

Block -3, Plot no. 63, Ward, Subhash Nagar, Gandhi Dham, Kachchh – 370240, Gujarat, India

Date of Birth/Age :

20.05.1950

Date of Appointment :

05.08.2013

DIN No. :

06534611

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	U27204DL1989PTC211681	CHAKRADHAR CHEMICALS PRIVATE LIMITED	Managing director	05/08/2013	03/04/2013	-	Active	NO
2	U74140GJ2014PTC078308	ACADEMY OF CUSTOMER EXPERIENCE CONSULTANCY PRIVATE LIMITED	Director	17/01/2014	17/01/2014	-	Active	NO

Name :

Mr. Neeraj Kedia

Designation :

Managing director

Address :

Mata Wala Ghar, Bhagat Singh Road, Muzaffarnagar - 251001, Uttar Pradesh, India

Date of Birth/Age :

03.05.1963

Date of Appointment :

06.10.1989

PAN No.:

ABBPK0181E

DIN No. :

00479357

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	U27204DL1989PTC211681	CHAKRADHAR CHEMICALS PRIVATE LIMITED	Managing director	06/10/1989	06/10/1989	-	Active	NO
2	U50101UP1986PTC007996	KDB SYSTEMS AND SERVICES PRIVATE LIMITED	Director	10/03/2006	10/03/2006	-	Active	NO
3	U24100DL2014PTC267469	SAMPOORTI AGROCARE PRIVATE LIMITED	Director	02/04/2014	02/04/2014	-	Active	NO

Name :

Mr. Abhay Kedia

Designation :

Whole-time director

Address :

40, Sulteen Ganj, Mata Wala Ghar, Bhagat Singh Road, Muzaffarnagar - 251001, Uttar Pradesh, India

Date of Birth/Age :

29.04.1985

Date of Appointment :

21.05.2013

Pan No.:

AKLPK2572L

DIN No. :

00507830

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	U27204DL1989PTC211681	CHAKRADHAR CHEMICALS PRIVATE LIMITED	Whole-time director	21/05/2013	01/01/2004	-	Active	NO
2	U24100DL2014PTC267469	SAMPOORTI AGROCARE PRIVATE LIMITED	Director	02/04/2014	02/04/2014	-	Active	NO

Name :

Mr. Shashi Kant Bagla

Designation :

Director

Address :

HTS Bagla Haveli Seth P.C. Bagla Marg, Hathras – 204101, Uttar Pradesh, India

Date of Birth/Age :

10.02.1960

Date of Appointment :

15.01.1999

DIN No. :

00507972

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	U27204DL1989PTC211681	CHAKRADHAR CHEMICALS PRIVATE LIMITED	Director	15/01/1999	15/01/1999	-	Active	NO
2	U25191UP1993PTC015467	YASHOVARDHAN AGRI-INPUTS PRIVATE LIMITED	Director	01/12/2006	01/12/2006	24/06/2011	Active	NO

Name :

Mr. Yash Paul Soni

Designation :

Director

Address :

B 203, Sectro 25, Gautam Budh Nagar, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

25.03.1949

Date of Appointment :

29.09.2012

DIN No. :

05161296

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	U27204DL1989PTC211681	CHAKRADHAR CHEMICALS PRIVATE LIMITED	Director	29/09/2012	02/01/2012	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Navin Gupta
Designation :	Accounts Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 05.08.2013

Names of Shareholders	No. of Shares
Neeraj Kedia, Kishan Chand HUF	438200
Neeraj Kedia, Neeraj Kedia HUF	445200
Neeraj Kedia	1386400
Abhay Kedia	606000
Shashi Kant Bagla	30000
Sanjay Bagla	8000
Arvind Kumar Sharma	200
V. K. Sharma	200
Neelam Bhansal	200
Paramveer Kapoor	200
Vatsal Kedia U/G Abhay Kedia	337000
Rashmi Kedia	378400
Krishna Devi Kedia	370000
Total	4000000

DATE OF ALLOTTEES 03.02.2014

Names of Shareholders	No. of Shares
Neeraj Kedia HUF	100000
Abhay Kedia HUF	60000
Kishan Chand HUF	65000
Total	225000

AS ON 05.08.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	99.99
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of chemicals fertilizers.
Imports :
Products :	Raw Material
Countries :	· China · Kenya
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

PRODUCTION STATUS AS ON 31.03.2013

Particulars	Unit	Current year	Previous year
Zinc Sulphate	M.T.	5250.915	4634.343
Zinc Sulphate Monohydrate	M.T.	3646.970	5757.540
Trading of Zinc Ash	M.T.	460.64	NA

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

65 (Approximately)

Bankers :

· Small Industries Development Bank Of India, Videocon Tower, Ground Floor, E-1, Rani Jhansi Road, Jhandewalan Extension, New Delhi - 110055, Delhi, India

· State Bank of India, New Mandi, Railway Road, Muzaffarnagar, Uttar Pradesh, India

Facilities :

Cash Credit = Rs. 80.000 Millions

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Rupee Term Loans From Bank	48.001	38.812
SHORT TERM BORROWINGS
Working Capital Loan From Bank	48.115	82.127
Total	96.116	120.939

Banking Relations :	--
Auditors :
Name :	Shiam and Company Chartered Accountants
Address :	31/46-A Agarwal Market
PAN No.:	AACFS9134R

CAPITAL STRUCTURE

AS ON 05.08.2013

Authorised Capital : Rs.80.000 Millions

Issued, Subscribed & Paid-up Capital : Rs. 52.250 Millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
7,000,000	Equity Shares	Rs.10/- each	Rs. 70.000 Millions
100,000	Preference Shares	Rs.100/- each	Rs.10.000 Millions
	Total		Rs. 80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,000,000	Equity Shares	Rs.10/- each	Rs.40.000 Millions
100,000		Rs.100/- each	Rs.10.000 Millions
	Total		Rs. 50.000 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	50.000	50.000	27.000
(b) Reserves & Surplus	10.203	7.405	21.999
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	3.300	2.250	3.000
Total Shareholders’ Funds (1) + (2)	63.503	59.655	51.999
(3) Non-Current Liabilities
(a) long-term borrowings	56.121	46.305	51.906
(b) Deferred tax liabilities (Net)	12.565	11.928	10.613
(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)	68.686	58.233	62.519
(4) Current Liabilities
(a) Short term borrowings	48.115	82.127	57.341
(b) Trade payables	8.369	18.327	11.468
(c) Other current liabilities	20.716	27.081	36.643
(d) Short-term provisions	0.303	0.183	0.414
Total Current Liabilities (4)	77.503	127.718	105.866
TOTAL	209.692	245.606	220.384
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	108.858	111.363	111.786
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	14.153	7.386	3.852
(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	1.282	2.076	1.401
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	124.293	120.825	117.039
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	65.479	106.398	89.666
(c) Trade receivables	14.470	8.971	2.168
(d) Cash and cash equivalents	1.147	1.156	4.921
(e) Short-term loans and advances	4.303	8.256	6.590
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	85.399	124.781	103.345
TOTAL	209.692	245.606	220.384

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	347.387	363.875	299.115
	Other Income	0.123	0.130	2.597
	TOTAL (A)	347.510	364.005	301.712
Less	EXPENSES
	Cost of Materials Consumed	209.689	241.951	196.112
	Purchases of Stock-in-Trade	0.000	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	27.582	(17.714)	(5.135)
	Employees benefits expense	0.000	0.000	0.000
	Other expenses	84.594	105.249	83.988
	TOTAL (B)	321.865	329.486	274.965
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	25.645	34.519	26.747
Less	FINANCIAL EXPENSES (D)	14.822	18.327	13.095
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	10.823	16.192	13.652
Less/ Add	DEPRECIATION/ AMORTISATION (F)	6.653	6.542	6.025
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	4.170	9.650	7.627
Less	TAX (I)	1.371	3.082	2.478
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	2.799	6.568	5.149
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD (K)	7.405	21.999	16.850
Less	APPROPRIATIONS
	Issue of Bonus Shares	0.000	20.000	0.000
	Tax on Dividend	0.000	1.162	0.000
	Balance Carried to the B/S	10.204	7.405	21.999
	Earnings / (Loss) Per Share (Rs.)	0.680	1.600	---

Particulars	31.03.2014
Sales Turnover (Approximately)	364.000

The above information has been parted by Mr. Navin Gupta (Accounts Executive).

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.80	1.80	1.71
Net Profit Margin (PBT/Sales)	(%)	1.20	6.01	2.55
Return on Total Assets (PBT/Total Assets}	(%)	2.13	4.05	3.52
Return on Investment (ROI) (PBT/Networth)		0.07	0.16	0.15
Debt Equity Ratio (Total Liability/Networth)		1.64	2.15	2.10
Current Ratio (Current Asset/Current Liability)		1.10	0.98	0.98

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	27.000	50.000	50.000
Reserves & Surplus	21.999	7.405	10.203
Share Application money pending allotment	3.000	2.250	3.300
Net worth	51.999	59.655	63.503
long-term borrowings	51.906	46.305	56.121
Short term borrowings	57.341	82.127	48.115
Total borrowings	109.247	128.432	104.236
Debt/Equity ratio	2.101	2.153	1.641

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	299.115	363.875	347.387
		21.651	(4.531)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)	(INR in Mlns)
Sales	299.115	363.875	347.387
Profit After Tax	5.149	6.568	2.799
	1.72%	1.81%	0.81%

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	Yes
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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

NOTE :

The registered office of the company has been shifted from 301-Pramesh Corporate Tower, Plot No 13, Karkarduma Community Center, New Delhi – 110092, Delhi, India to the present address w.e.f. 11.02.2013.

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Loan and advances from related parties	8.121	7.493
Total	8.121	7.493

VIEW INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10318162	28/01/2013 *	7,500,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	Videocon Tower, Ground Floor, E-1,, Rani Jhansi R  oad, Jhandewalan extension, New Delhi, Delhi - 110  055, INDIA	B69386431
2	10245513	11/01/2010	25,000,000.00	Small Industries Development Bank of India	Ground Floor, Videocon Tower, E-1, Rani Jhasi Rd.,  Jhandewalan Extension, New delhi, Delhi - 110055  , INDIA	A86728896
3	10161032	15/05/2009	25,000,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI)	Videocon Towers,Ground Floor,E-1,Rani Jhansi Road,  Jhandewalan Extension, New Delhi, Delhi - 110055  , INDIA	A63477905
4	10123672	19/09/2008	3,750,000.00	Small Industries Development Bank of India	Videocon Tower, Ground Floor,E-1, Rani Jhansi Road  , Jhandewalan extension, new delhi, Delhi - 11005  5, INDIA	A46298857
5	90276225	30/08/2005 *	4,686,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	SIDBI TOWER, 15; ASHOK MARG, LUCKNOW, Uttar Prade  sh - 226001, INDIA	-
6	90269640	12/04/2004	3,500,000.00	SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA	SIDBI TOWER, 15 ASHOK MARG, LUCKNOW, Uttar Prades  h, INDIA	-
7	90279575	17/09/2013 *	123,800,000.00	State Bank of India	Railway Road Branch, Muzaffarnagar, Uttar Pradesh  - 251001, INDIA	B89150965
8	90270062	28/12/1990	109,900.00	U.P. FINANCIAL CORPORATION	14/88, CIVIL LINES, KANPUR, Uttar Pradesh, INDIA	-
9	90268503	29/01/1990	3,290,000.00	U.P. FINANCIAL CORPORATION	14/88, CIVIL LINES, KANPUR, Uttar Pradesh, INDIA	-

* Date of charge modification

INDUSTRY AND FUTURE OUTLOOK

The financial Year 2012-13 had been one of the most challenging year in the history of fertilizer marketing. With the introduction of Nutrient Based Subsidy Scheme which cut the subsidies on non-urea fertilizers, high cost of raw materials globally and rupee depreciation lead to decline in consumption of approx. 15% in H1 FY2013. While urea volumes continued to remain relatively steady, a steep decline was witnessed in the sales volumes of fertilisers such as di-ammonium phosphate (DAP), single super phosphate (SSP) and NPK complexes with demand being affected by higher prices. The demand for these fertilisers was further impacted by inventory overhang in Q1 FY13 and delayed monsoon. As per FAI, the N:P:K usage ratio is expected to have deteriorated from 6.5:2.9:1 in FY12 to 8.1:3.2:1 in Kharif 2012. We concluded the year with marginally lower sales from Rs. 363.300 Millions to Rs. 347.100 Milloins registering the decline of 4.5% as compared to previous year and remain in profit. Low demand which led to higher inventory carrying, increased trade credit and delay in releasing fertilizer subsidy were the chief factors for tight liquidity in the markets, in general, and the industry, in particular. Profitability was naturally to be impacted. Micronutrient industry had faced more pressures as remaining surplus after fulfilling the need of macronutrients (NPK) is only used for sourcing which was limited due to poor realization of farmer’s produce. Needless to mention that the efficient processes and team coupled with innovative strategies and proactive approach made the year smooth and met the challenges of high gearing.

The current year is likely to witness a reasonable growth due to low base and the government’s initiative to address the imbalance of integrated nutrient management by policy changes. They are, however, projecting their sales accordingly but profitability is expected to remain low for the reason of recent capacity addition and limited market. The Company has pioneered in manufacturing Granulated Zinc Sulphate Monohydrate in India and is prepared to launch with M/s. Tata Chemical Limited. on pan-India basis under existing marketing arrangement.

Water Soluble Fertilizers are becoming popular due to efficacy, though high cost products. The Company is in the process of setting up unit of Water Soluble Fertilizers.

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 records 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.59.99
UK Pound	1	Rs.101.75
Euro	1	Rs.83.48

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	KAR
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		34

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.