MIRA INFORM REPORT

Report No. :	308004
Report Date :	17.02.2015

IDENTIFICATION DETAILS

Name :	DELTA FINOCHEM PRIVATE LIMITED
Registered Office :	Plot No.121, MIDC, Satpur, Nashik - 422007, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	01.02.2000
Com. Reg. No.:	11-123980
Capital Investment / Paid-up Capital :	Rs.9.000 Millions
CIN No.: [Company Identification No.]	U24100MH2000PTC123980
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	NSKD01177B
PAN No.: [Permanent Account No.]	AABCD2796A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of active pharmaceutical Ingredients, drug intermediates and organic specialties.
No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was erstwhile promoted as a proprietary concern in 1978, and was reconstituted as a private limited company in the year 2000. It is an established company having moderate track. Management has reported a consecutive dip in its volumes as well as net profitability for previous years and has seen a cash loss from its operations during FY 14. However, trade relations seem to be fair. Business is active. Payment terms are reported as slow but correct. The company can be considered for business dealings with caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating = BB+
Rating Explanation	Moderate risk of default regarding timely servicing of financial obligations.
Date	February 03, 2015

Rating Agency Name	CRISIL
Rating	Short term rating = A4+
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	February 03, 2015

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Anand
Designation :	Finance Head
Contact No.:	91-9822452312
Date :	14.02.2015

LOCATIONS

Registered Office / Administrative Office :	Plot No.121, MIDC, Satpur, Nashik - 422007, Maharashtra, India
Tel. No.:	91-253-2350554/ 2363279
Mobile No.:	91-9822452312 (Mr. Anand)
Fax No.:	91-253-2353798/ 6604094
E-Mail :	deltafinochem@gmail.com sales@deltafinochem.in
Website :	www.deltafinochem.in
Location :	Leased
Factory :	Gat No.350, Village Wadivarhe, Taluka Igatpuri, District Nashik, Maharashtra, India
Tel. No.:	91-2553-306251 / 52
Fax No.:	91-2553-306260

DIRECTORS

As on 29.09.2014

Name :	Mr. Sharayu Dattatraya Deshmukh
Designation :	Director
Address :	5, Eden Garden, Plot No-173 A, Mahatma Nagar, Nashik - 422007, Maharashtra, India
Date of Birth/Age :	17.04.1942
Date of Appointment :	01.02.2000
DIN No.:	00014928
Name :	Mr. Sandeep Dattatray Deshmukh
Designation :	Director
Address :	Plot No.178 A, Near Ganapati Temple, Mahatma Nagar, Nashik - 422007, Maharashtra, India
Date of Birth/Age :	26.10.1966
Date of Appointment :	01.02.2000
DIN No.:	00011060

KEY EXECUTIVES

Name :	Mr. Anand
Designation :	Finance Head

MAJOR SHAREHOLDERS

As on 29.09.2014

Names of Shareholders	No. of Shares
Sharayu Dattatray Deshmukh	788400
Sandeep Dattatray Deshmukh	18010
Dattatray Shantaram Deshmukh	93580
Alpana Sandeep Deshmukh	10
Total	900000

As on 29.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of active pharmaceutical Ingredients, drug intermediates and organic specialties.
Products :	Not Available
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Information declined by the management.

Bankers :

Banker Name	State Bank of India
Branch Address	Satpur Industrial Area, Satpur, Nashik – 422007, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loans from Banks
SBI Term Loan (A/c-32017653954)	0.000	9.549
SBI Term Loan (A/c-32784967874)	10.708	3.798
HDFC Vehicle loan 19568138	0.000	0.153
HDFC Vehicle loan 19533833	0.000	0.270
SHORT TERM BORROWINGS
Working capital loans repayable on demand
From Banks – State Bank of India Cash Credit	119.072	104.516
State Bank of India TDR Loan	9.364	0.000
SBI Singapore Buyers Credit	0.000	25.534
SBI Franfurt Buyers Credit	0.000	22.147
Total	139.144	165.970

Auditors :
Name :	M M Pandit and Company Chartered Accountants
Address :	312, Sarda Sankul, M G Road, Nasik – 422001, Maharashtra, India
PAN No.:	BFHPS9603C
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
2900000	Equity Shares	Rs.10/-each	Rs.29.000 Millions
10000	Preference Shares	Rs.100/-each	Rs.1.000 Million
	Total		Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
900000	Equity Shares	Rs.10/-each	Rs.9.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	9.000	9.000	9.000
(b) Reserves & Surplus	296.660	326.236	301.276
(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)	305.660	335.236	310.276
(3) Non-Current Liabilities
(a) long-term borrowings	13.785	17.444	10.944
(b) Deferred tax liabilities (Net)	19.502	7.944	7.294
(c) Other long term liabilities	1.578	1.261	2.295
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	34.865	26.649	20.533
(4) Current Liabilities
(a) Short term borrowings	128.436	152.197	83.811
(b) Trade payables	175.070	126.244	144.831
(c) Other current liabilities	20.620	13.369	4.430
(d) Short-term provisions	1.048	12.658	33.205
Total Current Liabilities (4)	325.174	304.468	266.277
TOTAL	665.699	666.353	597.086
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	233.555	211.017	196.996
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	22.293	12.026	1.691
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	34.060	110.938	35.703
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1.404	1.537	1.121
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	291.312	335.518	235.511
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	81.149	59.428	64.770
(c) Trade receivables	248.123	228.800	228.575
(d) Cash and cash equivalents	1.578	2.018	1.804
(e) Short-term loans and advances	40.382	36.822	64.407
(f) Other current assets	3.155	3.767	2.019
Total Current Assets	374.387	330.835	361.575
TOTAL	665.699	666.353	597.086

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	TOTAL INCOME	842.889	883.467	948.932
	TOTAL EXPENSES	838.675	826.928	826.186
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	4.214	56.539	122.746
Less/ Add	DEPRECIATION/ AMORTISATION	22.232	19.557	17.131
Less	EXCEPTIONAL ITEMS	0.000	0.009	0.000
	PROFIT/ (LOSS) BEFORE TAX	(18.018)	36.972	105.615
Less	TAX	11.557	12.013	34.347
	PROFIT/ (LOSS) AFTER TAX	(29.575)	24.959	71.268
	Earnings / (Loss) Per Share (Rs.)	(32.86)	27.73	79.19

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin PAT / Total Income	(%)	(3.50)	2.82	7.51
Return on Total Assets (PBT/Total Assets}	(%)	(2.96)	6.80	18.87
Return on Investment (ROI) (PBT/Networth)		(0.06)	0.11	0.34
Debt Equity Ratio (Total Debts/Networth)		0.47	0.51	0.31
Current Ratio (Current Asset/Current Liability)		1.15	1.09	1.36

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	9.000	9.000	9.000
Reserves & Surplus	301.276	326.236	296.660
Net worth	310.276	335.236	305.660
long-term borrowings	10.944	17.444	13.785
Short term borrowings	83.811	152.197	128.436
Total borrowings	94.755	169.641	142.221
Debt/Equity ratio	0.305	0.506	0.465

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	948.932	883.467	842.889
		(6.899)	(4.593)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	948.932	883.467	842.889
Profit	71.268	24.959	(29.575)
	7.51%	2.83%	(3.51%)

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG TERM DEBTS

(Rs. In Millions)

Particulars	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Current Maturities of Long Term Debts
Term Loans from Banks
SBI Term Loan	7.506	8.340	0.000
SBI Term Loan	8.400	0.000	0.000
HDFC Vehicle Loan	0.126	0.203	0.203
HDFC Vehicle Loan	0.222	0.358	0.358
Cholamandalam DBS Finance Company Limited	0.000	0.128	0.231
Total	16.254	9.029	0.792

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	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	Yes

Background

Delta Finochem Private Limited is ISO 9001:2008 certified company manufacturing active pharmaceutical ingredients, drug intermediates and organic specialities. Its plant are situated at Wadivarhe, Gonde and Satpur in Nasik, its plant is cGMP approvable. With well equipped production infrastructure and quality control systems company is able to manufacture quality products consistently. Company’s products are exported to USA, Europe and SE Asia.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10324745	14/11/2011	18,000,000.00	THE SHAMRAO VITHAL CO-OPERATIVE BANK LTD.	L-15, UTILITY CENTER, OPP. RAJIV GANDHI BHAVAN, SHARANPUR ROAD, NASHIK, Maharashtra - 422002, INDIA	B28423093
2	90160356	11/01/2005	18,000,000.00	STATE BANK OF INDIA	SATPUR INDUSTRIAL AREA BRANCH, NASHIK, Maharashtra , INDIA	-
3	90160191	13/05/2014 *	439,900,000.00	State Bank of India	Satpur Industrial Area, Satpur, Nashik, Maharashtra - 422007, INDIA	C06472120

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. in Millions)	31.03.2013 (Rs. in Millions)
LONG TERM BORROWINGS
Sales tax deferral loan	3.077	3.674

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture and Fitting

· Furniture and Fixtures

· Office Equipments

· Electronic Equipment

· Scale Platform

· Fax Machine

· Type writer

· Computer

· Scooter

· Vehicles

· Lab Equipment

· Effluent Treatment (Boiler)

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.62.20
UK Pound	1	Rs.95.99
Euro	1	Rs.71.00

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	SUB
Report Prepared by :	PNM

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.