COMPARACIÓ DE LES OPCIONS DE REGULACIÓ CONSIDERADES

Name M/s Dynemic Products Limited (DPL) Constitution Public Limited Company

Office Address B- 301, Satyamev Complex-1, Opp. New Gujarat High Court, S.G.Highway, Sola, Ahmedabad-380 060, Gujarat, India.

Line of activity Manufacturing of Food Colour Products

Sector Chemical and Chemical Products

Dealing with us New Connection

Incorporation 14th June 1990

Name of Directors Mr. Dashrathbhai Prahladbhai Patel (DIN : 00008160) Mr. Rameshbhai Bhagwanbhai Patel (DIN : 00037568) Mr. Hitendra Hargovinddas Sheth (DIN : 00037705) Mr. Jagdishbhai Sevantilal Shah (DIN : 00037826) Mr. Harishbhai Keshavlal Shah (DIN : 00037932) Mr. Bhagwandas Kalidas Patel (DIN : 00045845) Mr. Dixit Bhagwandas Patel (DIN : 00045883)

Mr. Shashikant Purshottambhai Patel (DIN : 00045957) Mr. Vishnubhai Gangarambhai Patel (DIN : 00270413) Mr. Shankarlal Baluram Mundra (DIN : 00388204)

Group Not a recognized group

Rating External: Not done.

Internal: SME 3 (ABS 31.03.2009)

Associate Concern Dynemic Overseas (India) Private Limited Dynemic USA Inc.

Share holding pattern As mentioned below

Share Price movement Listed on the BSE

Current Market Price – Rs.22.35/- (27.11.2009)

52 week high/low – Rs. 15.15 ( 22 Apr' 09) / Rs. 27.35 ( 16 Jan' 09)

Brief Background:

The Company was incorporated on 14th _{June, 1990 as Private Limited Company. The Name}

promoted with the objective of carrying on the business of manufacturing S.P.C.P, the raw material for Food Color, reactive & Raazole Dyes.

In the Year 2000 the company acquired the running business of M/s Safforn Dye Stuff Industries and started manufacturing wide range of food colors at the premises 3709/6, GIDC Estate, Ankleshwar having plot area of admeasuring 3700 Sq.Mtr.

As the company aims to provide entire range qualitative and quantitative service to food industry, as its Unit I. The company commenced manufacturing of food colors namely Tratrazine in the year 2000-01. Both the units at Ankleshwar are Ultra modern and have eco friendly plants with in house testing facilities to control quality at every level of manufacturing. The Company gained goodwill in the short span of time due to its quality product. The company has well equipped state of art in house laboratory which conduct test of every parameter of food color & Dye intermediates laid down under national and international authorities. The Company exports its product to around 41 countries worldwide. All these have led the company to acquire and retain a status of largest manufacturer and supplier of food colors and dye intermediates in India.

Qualitative Factors:

 The Company has a pro-active Management and Promoters who have hands on

experience in manufacturing of Dyes InTermediaries and Food Colours.

 Profit making Company since last 13 years.

 The company has to its credit an award for Indirect Export of Self Manufactured Dyes

for the year 2001-02 & 2002- 03 received by Gujarat Dyestuffs Manufacturers’ Association.

 The company has obtained certificate of approval From Bureau Verities Quality

International (BVQI) for achievement of ISO 9001: 2000 quality standards, the Company has also received certificate of approval from Bureau Verities Quality International (BVQI) for achievement of 14001:1996 and 14001:2004 quality standards for both its units satiated at Ankleshwar.

 The company has also obtained HAACP Code: 2003 certificate of registration from

 The company was awarded with trophy for export performance of more than Rs. 6.00

& 8.00 Crore for Self

 Manufactured Indirect Export of Dyes & inTermediates in the year 2002-03 by

Gujarat Dyestuffs Manufacturers’Association.

 Both the Units of the company are exporting Oriented Units and have obtained the

status of One Star Export House.

Marketing Strategy/Marketing arrangement

Strong and experience people are leading company’s marketing department. Company’s total turnover is divided into:

 Exports Sales  Local Sales  Exports Sales:

• Company’s 70% turnover is generated by way of exports sales. Company has its own

presence in all most all countries. The company is exporting Food colors in Latin America, African countries, Middle East, Far East, US and Europe. Almost all export customers are dealing with company for many years.

• Out of total exports turnover 60 to 70% percentage orders are repeated orders and rest

of the orders are new orders.

• The Company has region wise Export Managers who can cater the need of customers

individually. Due to the quality and timely delivery of the material the company have less competition from these countries.

• Globally many countries have discontinued production of Dyes, Food colors and

Intermediates, new market has opened for Indian manufacturer of Dyes and Intermediates. As Dynemic Products Ltd is already a well recognized name in the field globally, it has more opportunities to grab from growing International market.

 Local Sales:

• In Local Market Company is doing marketing its Dyes & Intermediates to the end

customers.

• The company is the largest manufacturer of S.P.C.P in India which generating

repeated order from the local customers.

• Now, company is planning to market the food colors in small packing through its

dealers and distributors which cater the local needs.

• Company is also planning to arrange marketing arrangement with soft drink

manufactures and pharmaceutical manufactures for food colors.

Proposal for Proposal for fresh sanction of credit facilities by way of take over (with enhancement) from HDFC Bank

a) Sanction of Cash Credit Limit of Rs. 500.00 lacs for working capital requirement ( take over of Rs. 500.00 lacs from HDFC Bank).

b) Sanction of Letter of Credit (Inland/Foreign) of Rs. 300.00 lacs for

working capital requirement as a sub-limit of cash credit limit (take over of Rs. 300.00 lacs from HDFC Bank).

c) Sanction of EPC/FBD/FBP/PCFC/PSCFC of Rs. 500.00 lacs for working capital requirement as a sub -limit of cash credit limit (take over of Rs. 500.00 lacs from HDFC Bank).

d) Sanction of Corporate Loan of Rs. 200.00 lacs (take over of Working Capital Term Loan of Rs. 200.00 lacs from HDFC Bank).

e) Sanction of LER limit of Rs. 25.00 lacs (equivalent to forward cover of Rs.500.00 lacs).

f) Waiver of credit opinion report from existing bankers of M/s. DPL (HDFC Bank) and group concerns of M/s. DPL i.e. M/s. Dynemic Overseas (India) Limited based on justifications given in the proposal.

g) Concession in processing fees at Rs. 1.00 lacs against norm of 1.00%.

h) Permitting time of 30 days for completion of take over formalities with HDFC and creation of mortgage by CMC.

Existing &

Proposed Facilities

(Rs. in lacs)

Type of Facility Existing _Limits (HDFC) Proposed + Inc / – Dec Proposed Limits (Axis Bank)

Cash Credit Limit – Stock cum Book Debt

500.00 -- 500.00 Corporate Loan 200.00 -- 200.00 EPC/FBD/FBP/PCFC/PSCFC – As a

sub limit of Cash Credit Limit

(500.00) -- (500.00) LC(Inland /Foreign) - As a sub limit

of Cash Credit Limit

(300.00) -- (300.00) LER Limit (as a sub-limit of CC

limit)

(15.00) +25.00 +25.00

Total 700.00 +25.00 725.00

Purpose WC/LC/LER : To meet working capital requirements. Corporate Loan : For NWC built up.

Tenor WC/LC/LER : 12 months.

Corporate Loan : 24 months from the date of first disbursement. Repayment WC/LC/LER : On Demand.

Corporate Loan : 23 monthly instalments of Rs. 834000 each and last instalment

of Rs. 818000. Repayment to commence from December 2011. Interest to be serviced as and when debited.

Security Primary  Hypothecation of entire current assets (Pari passu) of the

company (Both present & future). (Value as on 31.03.2011 is of Rs. 1326.42 lacs).

 Hypothecation over Plant and Machinery (Pari Passu)

(Both present & future). (Value is of Rs. 1529.55 lacs as per empanelled valuer of Citi Bank).

Collateral Pari – Passu charge being shared by Citi Bank Limited on

following properties :

i. Factory Land and Building, Plant and Machinery at Plot No. 6401,6415,6416, G.I.D.C., Ankleshwar, Dist.Bharuch admeasuring 5664 sq.mts. standing in name of M/s. Dynemic Products Limited.

ii. Office situated at B- 301,308,309,310 Satyamev Complex-1,

Opp. New Gujarat High Court, S.G.Highway, Sola, Ahmedabad-380 060, Gujarat admeasuring 4272 square feets

standing in the name of M/s. Dynemic Products Limited.

iii. Factory Land and Building, Plant and Machinery at Plot No. 3709/6,3710/3,3710/1, G.I.D.C., Ankleshwar, Dist.Bharuch admeasuring 12290.80 sq. mts. standing in name of M/s. Dynemic Products Limited.

Guarantee Personal Guarantee of :

 Mr. B.K.Patel having net worth of Rs. 264.88 lacs

(approx.) as on 31.03.2011.

 Mr. Ramesh B.Patel having net worth of Rs. 152.57 lacs

(approx.) as on 31.03.2011.

 Mr. Dashrath P.Patel having net worth of Rs. 257.89 lacs

(approx.) as on 31.03.2011.

 Mr. Shashikant P.Patel having net worth of Rs. 148.22 lacs

(approx.) as on 31.03.2011.

 Mr. Dixit B.Patel having net worth of Rs. 36.33 lacs

(approx.) as on 31.03.2011.

Credit

enhancement

Nil.

Interest Rate BPLR - 3.50% i.e. 11.25% p.a. with monthly rests (presently BPLR @ 14.75%).

LC Charges Bank’s standard schedule of charges.

Processing fees Rs. 1 lacs for the sanctioned facilities plus applicable taxes.

Banking Arrangement

Multiple with Citi Bank (Proposed).