MIRA INFORM REPORT

Report No. :	508150
Report Date :	09.05.2018

IDENTIFICATION DETAILS

Name :	VISWAAT CHEMICALS LIMITED
Formerly Known As :	VISWAAT CHEMICALS PRIVATE LIMITED (w.e.f.09.12.1997) VISWAT CHEMICALS DEALERS PRIVATE LIMITED
Registered Office :	Viswaat 7, Satsang Complex, Upper Govind Nagar, L S Raheja Marg, Malad (East), Mumbai – 400097, Maharashtra
Tel. No.:	91-22-32452211/ 28740365/ 2341/ 32409612/ 30052255
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	09.07.1996
Com. Reg. No.:	11-100815
Capital Investment / Paid-up Capital :	INR 50.448 Million
CIN No.: [Company Identification No.]	U51496MH1996PLC100815
IEC No.: [Import-Export Code No.]	0398068747
GSTN : [Goods & Service Tax Registration No.]	27AAACV4184B1ZI
TAN No.: [Tax Deduction & Collection Account No.]	MUMV09746C
PAN No.: [Permanent Account No.]	AAACV4184B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is in the business of Manufacturing, Exporter and marketing of speciality chemicals like surfactants, bulk drugs intermediate, leather chemicals, textile chemicals, agro emulsifier, etc. [Registered activity and also Confirmed by management]
No. of Employees :	200 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject was incorporated in the year 1996 and it is engaged in manufacturing, exporting and marketing of specialty chemicals like surfactant, leather chemicals and textile chemicals. As per the financials of March 2017, the company has registered marginal decline in its revenue and has reported average profit margin of 3.92%. Rating takes into consideration the company’s established track record of business operations marked by sound net worth base along with comfortable debt coverage indicators and decent liquidity position. Rating also takes into account the established presence in chemical industry by diversified product profile and established relations with customers. Further, the company has reported a good earnings per share of INR 17.91 against its face value of INR 10. However, rating strength is partially offset by the risks associated with ongoing project implementation, its working capital-intensive operations, and exposure to intense competitions. Payments terms seems to be usually correct. In view of aforesaid, the company can be considered 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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = BBB
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	04.04.2018

Rating Agency Name	CRISIL
Rating	Short Term Rating = A3+
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	04.04.2018

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 31-03-2018.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 09.05.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION PARTED BY

Name :	Mr. Vivek Tagarse
Designation :	Accountant
Contact No.:	91-22-62285555
Date :	07.05.2018

LOCATIONS

Registered Office :	Viswaat 7, Satsang Complex, Upper Govind Nagar, L S Raheja Marg, Malad (East), Mumbai – 400097, Maharashtra, India
Tel. No.:	91-22-32452211 / 28740365 / 28742341 / 32409612 / 30052255
Fax No.:	91-22-28745321
E-Mail :	viswaat@vsnl.com info@viswaatchem.com viswaat@mtnl.net.in lrshetty@viswaatchem.com
Website :	http://www.viswaatchem.com
Corporate Office :	909/910, ECO Star Building, Opposite Vakratund Corporate Park, Behind Udipi Hotel, Near Goregaon Station (East), Mumbai – 400063, Maharashtra, India
Factory :	Plot No. 1, Additional Ambernath MIDC Anad Nagar, Ambernath (East), Thane – 421506, Maharashtra, India
Tel. No.:	91-251-2620046 / 2620048
Fax No.:	91-251-261024

DIRECTORS

AS ON 31.03.2018

Name :

Mr. Vinesh Vivek Shetty

Designation :

Managing director

Address :

902, Beach Classic, Versova, Seven Bunglows, Andheri (West), Mumbai – 400061, Maharashtra, India

Date of Birth/Age :

16.09.1979

Qualification :

B.Com, MBA

Date of Appointment :

15.07.2011

PAN No.:

AVKPS0666D

DIN No.:

00474985

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U67120MH1986PTC040334	SWATI HOLDING AND LEASING PRIVATE LIMITED	14/01/2005	-

Name :

Bollya Vivek Shetty

Designation :

Whole-time director

Address :

Room No.: 902, Beach Classic, Versova Seven Bungalows, Andheri (West), Mumbai – 400061, Maharashtra, India

Date of Birth/Age :

03.10.1949

Qualification :

M.Com

Date of Appointment :

02.07.2010

PAN No.:

AAKPS5390R

DIN No.:

00947091

Name :

Mr. Arvind Inder Malhotra

Designation :

Director

Address :

Flat 1403, 14th Floor, Chelsea CHSL Hiranandani Estate, Ghodbunder Road, Thane (West), Mumbai – 400607, Maharashtra, India

Date of Birth/Age :

25.01.1947

Qualification :

B.Com

Date of Appointment :

01.08.2000

PAN No.:

AAGPM0682C

DIN No.:

01312057

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U74999MH1946PTC005120	GOLDBERG INDIA PRIVATE LIMITED	06/08/2007	-
U80220MH1997PLC112535	IL & FS EDUCATION & TECHNOLOGY SERVICES LIMITED	19/01/1998	-
U80904DL2011PLC213135	IL&FS SKILLS DEVELOPMENT CORPORATION LIMITED	20/03/2015	-
U70109DL2006PLC153767	IL&FS CLUSTER DEVELOPMENT INITIATIVE LIMITED	20/03/2015	-

Name :

Mr. Venkatesh Charan

Designation :

Director

Address :

# 460, 11th Main, R M V Extn, Sadashivanagar, Bangalore – 560080, Karnataka, India

Date of Birth/Age :

05.04.1980

Qualification :

B. com (PGDMS)

Date of Appointment :

22.09.2011

PAN No.:

AFEPC4073N

DIN No.:

03093496

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U67120MH1986PTC040334	SWATI HOLDING AND LEASING PRIVATE LIMITED	20/08/2010	-
U67190KA2010PTC054451	AEQUITAS CAPITAL PRIVATE LIMITED	14/07/2010	-

Name :

Mr. Ramamurthi Swaminathan

Designation :

Director

Address :

C-302, Purva Fountain Square, Varthur Road, Spice Garden, Marathahalli Bangalore North, Bangalore – 560037, Karnataka, India

Date of Appointment :

16.08.2017

DIN No.:

07886034

KEY EXECUTIVES

Name :	Mr. Vishavanath Bridi Mundra
Designation :	Company Secretary
Address :	701,"B Wing, Chandranagar CHS, Near Naupadapolice Station, Naupada Thane (West), Mumbai – 400602, Maharashtra, India
Date of Birth/Age :	06.01.1980
Date of Appointment :	02.05.2015
PAN No.:	ALQPM0477Q
Name :	Mr. Vivek Tagarse
Designation :	Accountant
Name :	Mr. Sunil Yadav
Designation :	Human Resources

MAJOR SHAREHOLDERS

AS ON 31.03.2017

Names of Shareholders	No. of Shares
Vivek Taggarse	500
Swati Holding and Leasing Private Limited	1870993
Ramaa V Shetty	327300
Vinesh Shetty	351527
Vipin Kumar Jain	5000
Bhaskar M Shetty	50000
Anand Rai	500
Shambhavi M Shetty	500
Udaya Shetty	20000
V M Kamath	400
Sudhakar Shetty	400
Shambhavi Shetty	300
Anil Waigankar	300
Naresh Pawar	200
Gloria Miranda	300
Lokesh Shetty	200
D.M.Pate	100
Ganapat Pendhare	200
Anand Kadam	100
Manoj Tambe	200
Rajaram Vele	100
Sunil Zagode	100
Swati V Shetty	174722
Arvind I Malhotra	7500
P.K.Jyothi Udupa	300
Kidoor Chemicals Trading Private Limited	885367
Sai Siddhi Chemical Trading Private Limited	976342
Deviprasad Shetty	400
L R Shetty	400
B. Vivek Shetty	291207
Venktesh Charan	64295
Girija Singh	5000
Nidhi Shetty	10019
Total	5044772

Equity Share Break up (Percentage of Total Equity)

AS ON 16.08.2017

Category	Percentage
Promoters [Individual/Hindu Undivided Family (Indian)]	24.17
Promoters [Bodies corporate]	73.99
Public/Other than promoters [Individual/Hindu Undivided Family (Indian)]	1.84
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is in the business of Manufacturing, Exporter and marketing of speciality chemicals like surfactants, bulk drugs intermediate, leather chemicals, textile chemicals, agro emulsifier, etc. [Registered activity and also Confirmed by management]

Products / Services :

Name and Description of main products / services	ITC Code
Surfactants	34029011
Leather	83089031
Textile	84453011

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

· Finished Goods

Countries :

· China

· Turkey

· Singapore

Imports :

Products :

· Raw Material

Countries :

· United States of America

· Singapore

Terms :

Selling :

L/C, Advance Payment and Cheque

Purchasing :

L/C, Advance Payment and Cheque

PRODUCTION STATUS – (NOT AVAILABLE)

GENERAL INFORMATION

Suppliers :

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

Customers :

End Users, OEM’s

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

No. of Employees :

200 (Approximately)

Bankers :

Banker Name :	Bank of Maharashtra
Branch :	Dr. Ambedkar Road Branch, 167/A, Poonawadi, Mumbai – 400014, Maharashtra, India
Person Name (With Designation) :	--
Contact Number :	--
Name of Account Holder :	--
Account Number :	--
Account Since (Date/Year of Account Opening) :	--
Average Balance Maintained :	--
Credit Facilities Enjoyed (CC/OD/Term Loan) :	Cash Credit= INR 420.000 Million (Not confirmed with bank)
Account Operation :	--
Remark :	--

Facilities :

SECURED LOANS	31.03.2017 INR In Million
LONG TERM BORROWINGS
Rupee term loans from banks	45.640
Loans repayable on demand from banks	1.417
Loans repayable on demand from others	1.045
SHORT TERM BORROWINGS
Rupee term loans from banks	350.226
Total	398.328

SECURED LOANS	31.03.2016 INR in Million
LONG TERM BORROWINGS
Rupee term loans from banks	31.965
Rupee term loans from others	3.618
Working capital loans from banks	1.813
SHORT TERM BORROWINGS
Rupee term loans from banks	383.271
Total	420.667

Auditors :
Name :	S B S K and Associates Chartered Accountants
Address :	B – 601, Aalind Fortuna, Beside Sheetal Banquet Hall, Opposite Grand Hometel Hotel Mind Space, Chincholi Bunder Malad (West), Mumbai, Maharashtra, India
PAN No.:	AALFS5141P
Memberships :	Not Available
Collaborators :	Not Available
Other related parties :	· Saisiddi Chemicals Trading Private Limited, India [CIN No.: U51102MH2002PTC138387] · Kidoor Chemicals Trading Private Limited, India [CIN No.: U51102MH2003PTC138580] · RVS Organics Private Limited, India [CIN No.: U24100MH2004PTC144345] · Swati Holding and Leasing Private Limited, India [CIN No.: U67120MH1986PTC040334]

CAPITAL STRUCTURE

AS ON 16.08.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	INR 10/- each	INR 100.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5044772	Equity Shares	INR 10/- each	INR 50.448 Million

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	50.448	50.448	50.448
(b) Reserves & Surplus	441.182	355.074	295.591
(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)	491.630	405.522	346.039
(3) Non-Current Liabilities
(a) Long-term borrowings	48.102	37.396	50.842
(b) Deferred tax liabilities (Net)	32.880	31.019	32.186
(c) Other long term liabilities	10.455	31.745	27.669
(d) Long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	91.437	100.160	110.697
(4) Current Liabilities
(a) Short term borrowings	350.226	383.271	401.701
(b) Trade payables	207.376	201.309	182.711
(c) Other current liabilities	87.123	91.521	71.506
(d) Short-term provisions	18.118	23.399	16.869
Total Current Liabilities (4)	662.843	699.500	672.787
TOTAL	1245.910	1205.182	1129.523
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	304.145	300.202	267.262
(ii) Intangible Assets	0.760	0.779	0.510
(iii) Capital work-in-progress	107.738	85.479	95.058
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	8.987	0.492	0.492
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	58.855	22.851	20.377
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	480.485	409.803	383.699
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	203.837	155.010	121.293
(c) Trade receivables	450.330	537.995	507.517
(d) Cash and cash equivalents	64.849	63.445	81.527
(e) Short-term loans and advances	45.510	38.100	35.397
(f) Other current assets	0.899	0.829	0.090
Total Current Assets	765.425	795.379	745.824
TOTAL	1245.910	1205.182	1129.523

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2017	31.03.2016	31.03.2015
	SALES
			Income	2306.524	2324.493	2362.724
			Other Income	17.854	9.122	3.831
			TOTAL	2324.378	2333.615	2366.555
				[Due to market fluctuations]
Less	EXPENSES
			Cost of Materials Consumed	1720.897	1732.838	1835.606
			Purchase of Stock-in-trade	33.058	16.841	17.246
			Changes in Inventories of finished goods, work-in-progress and stock-in-trade	(8.292)	(9.781)	(11.878)
			Employee Benefits Expenses	114.737	109.130	82.125
			CSR expenditure	0.429	0.814	0.625
			Extraordinary items	(66.406)	0.000	0.000
			Other expenses	322.257	305.954	276.074
			TOTAL	2116.680	2155.796	2199.798
	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION			207.698	177.819	166.757
Less	FINANCIAL EXPENSES			56.521	63.982	68.021
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION			151.177	113.837	98.736
Less	DEPRECIATION/ AMORTISATION			38.937	33.734	34.000
	PROFIT/(LOSS) BEFORE TAX			112.240	80.103	64.736
Less	TAX			21.882	16.371	21.712
	PROFIT/(LOSS) AFTER TAX			90.358	63.732	43.024
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports		637.126	733.759	736.116
	TOTAL EARNINGS			637.126	733.759	736.116
	Earnings / (Loss) Per Share (INR)			17.91	12.63	8.53

Particulars	31.03.2018
Sales Turnover (Approximately)	2500.000

The above information has been parted by Mr. Vivek Tagarse (Accountant)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	14.688	26.172	29.235
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operations	127.388	148.567	168.567
Net cash flows from (used in) operating activities	105.471	131.171	145.875

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	71.26	84.48	78.40
Account Receivables Turnover (Income / Sundry Debtors)	5.12	4.32	4.66
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	43.16	42.00	35.99
Inventory Turnover (Operating Income / Inventories)	1.02	1.15	1.37
Asset Turnover (Operating Income / Net Fixed Assets)	0.50	0.46	0.46

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.58	0.63	0.67
Debt Equity Ratio (Total Liability / Networth)	0.84	1.10	1.39
Current Liabilities to Networth (Current Liabilities / Net Worth)	1.35	1.72	1.94
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.84	0.95	1.05
Interest Coverage Ratio (PBIT / Financial Charges)	3.67	2.78	2.45

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
PAT to Sales ((PAT / Sales) * 100)	%	3.92	2.74	1.82
Return on Total Assets ((PAT / Total Assets) * 100)	%	7.25	5.29	3.81
Return on Investment (ROI) ((PAT / Networth) * 100)	%	18.38	15.72	12.43

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	1.15	1.14	1.11
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.85	0.92	0.93
G-Score Ratio Financial (Networth / Total Assets)	0.39	0.34	0.31
G-Score Ratio Debt (Debts / Equity Capital)	8.19	8.86	9.55
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	1.15	1.14	1.11

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are in INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	50.448	50.448	50.448
Reserves & Surplus	295.591	355.074	441.182
Share Application money pending allotment	0.000	0.000	0.000
Net worth	346.039	405.522	491.630
Long Term borrowings	50.842	37.396	48.102
Short Term borrowings	401.701	383.271	350.226
Current maturities of long term debt	29.235	26.172	14.688
Total borrowings	481.778	446.839	413.016
Debt/Equity ratio	1.392	1.102	0.840

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	2362.724	2324.493	2306.524
		(1.618)	(0.773)

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	2362.724	2324.493	2306.524
Profit/(Loss)	43.024	63.732	90.358
	1.82%	2.74%	3.92%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last four years	Yes
27	Reasons for variation <> 20%	Yes
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

NOTE: Registered office of the company has been shifted from Triveni Mith Chowki, Malad-Marve Road, Malad (East), Mumbai – 400064, Maharashtra, India to the present address w.e.f. 20.09.2007

CORPORATE INFORMATION

The company is a public limited company, incorporated in 1996. The company is in the business of manufacturing and marketing of speciality chemicals like surfactants, bulk drugs intermediate, leather chemicals, textile chemicals, agro emulsifier, etc. having manufacturing facility at Ambernath, Thane. Product caters to the industry like pharmaceuticals, leather, textile, agro, pesticides, cosmetics, printing ink, paper, refinery, construction, etc.

PERFORMANCE OVERVIEW:

Current State of Affairs and Outlook

The global economy was on a fast trackin the FY 2016-17. The various macro-economic factors playing out had a positive impact on the company, wherein a better than expected profit over the previous year was achieved. The Company invested INR 8.996 million (Previous year INR 6.503 million) during the FY 2016-17 in R&D, which enhanced its basket of products and also lead to continual improvement across the various functional areas.

Surfactant and Specialty Chemicals Business

The Company has able to achieve a higher sales volume of 920 MT from this business vertical compared to previous financial year. This Business Vertical caters to the agro, construction, cosmetics and personal care, pharmaceuticals, paints and Textile intermediate sectors. Over the last few years these sectors have witnessed a high growth with the volumes and the potential for the business being huge. This will surely help Viswaat grow the top line. Further a focus on receivables from the export market helped the company to maintain a healthy cash flow cycle. The other initiatives to strengthen the market position include the automation of the production facilities, focus on delivering customer specific products with consistent quality and investments in R&D.

Leather Chemicals Business

Leather Chemical Business

The Company has not been able to maintain sales volume in this vertical, which was lower by 197 MT from this business vertical compared to previous financial year. This Business Vertical caters to the Leather tanning industry. The Company has transferred the leather chemicals business assets, being the Intellectual Property Rights (IPR) including the knowhow related to the leather chemicals and the distributors with all contractual obligations including all benefits and liabilities related, to Stahl International B.V. and Stahl India Private Limited with effect from the 08th of April, 2016. The Company has also entered into an agreement with Stahl India Private Limited for exclusive manufacturing for a period of five years which can be extended for another five years with mutual consensus. The Company has been able to maintain the sale with a very slight reduction in the business volume by 191.25 MT over the previous year, though the market conditions in the sector have been negative considering the strict implementation of National Green Tribunal (NGT) order, banning of cow slaughtering and demonetization.

Textile Chemicals Business

The Company has able to achieve a marginal higher sales volume of 129 MT from this business vertical compared to previous financial year. This Business Vertical caters to the Textile industry which includes both the process and spinning businesses. The initiatives taken by the company led to an increased business especially in the institutional category wherein today we are the preferred supplier among the many multinational companies. Whereas the B2C segment have seen a moderate growth over the last year with an improved cash flow cycle.

Research & Development Initiatives

The company is a multi-industry specialty chemicals company, having the capabilities to cater to a wide range of industries like agro, cosmetics and personal care, construction, leather, oils, pharmaceuticals, paints, textiles etc. The company strongly focuses in new product development as this has been the forte of the company over the years and has helped create a niche for itself in the highly competitive surfactant and specialty chemicals industry.

The R&D facility of the company is recognized by the Department of Science and Industrial Research (DSIR) under the Ministry of Science & Technology, GOI. Continuing from the FY 2014-15 the company kept up its good work in the Research & Development space and got rewarded for its efforts as the DSIR formally approved the R&D facility under its program. With this the company can now avail tax benefits of 200% on R&D activities, sponsorship of R&D activities in the future and if there are dedicated projects, there is a provision towards capital subsidy for such projects and people working in the R&D can pursue their Ph.D. under the DSIR scheme.

Dahej Project

The company has an industrial land parcel of 42,284.22 square meters at Dahej. The Company has received the Environment Clearance (EC) from the Gujarat Industrial Development Corporation (GIDC) 25th November, 2016 for setting up a plant with a manufacturing capacity of 1,20,000 MT per annum and by this the Company can start the project activities at any time. The Company has also submitted its project report to the financial institutions for funding arrangements.

The Company is keen to implement its planned project activities at any time during the FY 2017-18.

INDEX OF CHARGES:

S No	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G32227928	90155402	Bank of Maharashtra	06/09/2003	06/12/2016	-	863700000.0	167/A, Dr. Ambedkar Road, Poonawadi Building Dadar East Mumbai Maharashtra 400014 India
2	G48781454	10317299	Bank of Maharashtra	19/10/2011	-	07/07/2017	20000000.0	Dr. Ambedkar Road Branch, Raja Shivaji Vidyalayahindu Colony, Six Lane, Dadar (East) Maharashtra 400014 India
3	G48781025	90158225	Bank of Maharashtra	06/09/2003	20/06/2008	07/07/2017	149900000.0	Dr.Ambedkar Road Branch, Raja Shivaji Vidya Sankulhindu Colony, Six Lane, Dadar (East) Maharashtra 400014 India
4	G05366281	10469396	Bank of Maharashtra	20/12/2013	-	14/06/2016	20000000.0	Dr. Ambedkar Road Branch167/A, Poonawadi, Dr. Ambedkar Road, Dadar (East) Maharashtra 400014 India
5	Y10257769	90157999	Oriental Bank of Commerce	21/08/2002	-	08/09/2003	9000000.0	Bombay Bazar Building Maharashtra 400054 India
6	Y10257196	90157426	Oriental Bank of Commerce	24/02/2000	-	25/07/2002	400000.0	Bombay Bazar Building Maharashtra 400054 India

FIXED ASSETS:

· Land

· Building

· Residential building

· Office building

· Factory building

· Plant and equipment

· Factory equipments

· Furniture and fixtures

· Vehicles

· Motor vehicles

· Office equipment

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	INR
US Dollar	1	INR 66.77
UK Pound	1	INR 90.58
Euro	1	INR 79.97

INFORMATION DETAILS

Information Gathered by :	SHK
Analysis Done by :	VVK
Report Prepared by :	NKT

SCORE FACTORS

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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.