MIRA INFORM REPOR

Report Date :

09.11.2006

IDENTIFICATION DETAILS

Name :	HIND PRAKASH INTERNATIONAL TRADING PRIVATE LIMITED
Registered Office :	“Hind Prakash” House, Ground Floor, Kalyan Society, Near M. G. International School, Mithakhali, Ahmedabad – 380006, Gujarat
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	28.01.2003
Com. Reg. No.:	04-41909
CIN No.: [Company Identification No.]	U51909GJ2003PTC041909
TAN No.: (Tax Deduction & Collection Account No.)	AHMH00851E
Legal Form :	Private Limited Liability Company
Line of Business :	Dealer, Distributor and Importer of Dyes and Dye Intermediates.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 150000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having fine track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. General financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	“Hind Prakash” House, Ground Floor, Kalyan Society, Near M. G. International School, Mithakhali, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-55127841/42
Fax No.:	91-79-55317200
E-Mail :	info@hindprakash.com
Website :	http://www.hindprakash.com
Administrative Office :	A-414, Atma House, Opp. Old RBI, Ashram Road, Ahmedabad – 380 009, Gujarat, India
Area :	5000 sq. ft.
Location :	Owned

DIRECTORS

Name :	Mr. Santosh N. Nambiar
Designation :	Director
Address :	M-110, Shrinandnagar II, Vejalpur, Ahmedabad-380051, Gujarat, India
Date of Birth/Age :	33 years
Qualification :	B. Com
Experience :	13 years
Name :	Mr. Prakash Chand Jain
Designation :	Director
Address :	C/1/15, Navaratna Appartments, CTM Cross Roads, National Highway, Ahmedabad, Gujarat, India
Date of Birth/Age :	53 years
Qualification :	Under Graduate
Experience :	30 years
Name :	Mr. Paresh D Rawal
Designation :	Head Administration and Logistics
Name :	S P Mangal
Designation :	Head Dyestuffs Business and Information
Name :	S R Modi
Designation :	Head Marketing

MAJOR SHAREHOLDERS

Names of Shareholders	Percentage of Holding
Mangal Sons Trust	45.31
Decolic Private Limited	7.27
Devika proteins Limited	21.80
Shridhar Preservers private Limited	21.80
Shree Leasing and Finance Limited	3.63
Total	99.81

BUSINESS DETAILS

Line of Business :

Dealer, Distributor and Importer of Dyes and Dye Intermediates.

Products :

• Cyanuric Chloride
• Sodium Nitrite
• Disperse Dyes
• Meta Phenylene Diamine
• Beta Naphthol
• J- Acid
• J-Acid Urea
• DI J-Acid
• H-Acid
• Phenyl J Acid
• Phenyl Peri Acid
• Bon Acid
• Bromamine Acid
• Mesitylene Acid
• 6-Nitro 1,2,4 Diazo Acid
• K-Acid
• P. M. P.
• Mix Cleaves Acid
• 1-6, Cleaves Acid
• 1-7, Cleaves Acid

Product	Item Code
Cyanuric Chloride	29336990
J Acid	29222150
Beta Nepthol	19071520
Tobias Acid	29214526

Agencies Held :

Name of the company :	Degussa AG- Germany
Product	Cyanuric Chloride
Arrangement	For marketing in small scale units for India
Name of the company :	BASF AG- Germany
Product	Sodium Ntrite
Arrangement	For marketint in small units in Gujarat and Rajasthan
Name of the company :	Zhejiang Longsheng Group Company Limited – China
Product	Disperse Dyes
Arrangement	Exclusive Distributors for India
Name of the company :	Shanghai Amino Chem Company Limited – China
Product	Meta Phenylene Diamine
Arrangement	Exclusive Agents for Marketing in small scale units

Exports to :

China

Imports from :

China, Germany, Taiwan, Europe and South Korea

Terms :

Selling :

L/C, Cash or Credit (30-90 days)

Purchasing :

L/C, Cash or Credit (60-120 days)

GENERAL INFORMATION

Suppliers :

· Base AG-Germany

· Degussa S A –UK

· Millman Limited – UK

· China Steel Chemical Corporation – Taiwan

· Pingyuan Yongheng Dyestuff Chemical – China

· Sinochem Tianjin IMP and Exp. Company – China

· Hubei Chuyuan Imp and Exp. Corporation – China

· Sinochem Tianjin Imp. And Exp. Shenzhen Corporation – China

· Shanghai Aminochem Company Limited – China

· Dragonchem Enterprises Limited – China

Customers :

Manufacturer, Trading Firm and End User

· Atul Limited

· Cora Chem – Surat

· Chromatic India Limited-Mumbai

· Synthetic Dyes and Chemicals – Mumbai

· Ahmedabad-

· Metrochem Industries Limited

· Meghmani Organics Limited

· Ornet Intermediates Limited

· Kiri Dyes and Chemicals Private Limited

· Dynamic Industries Limited

· Alps Chemicals Limited

· Bodal Chemicals Private Limited

· Adci Dyechem Private Limited

· Asiatic Industries

· Gaurav Industries

· Maruti Industries

· Shah Industries

· Alfa Industries

· Asian Dyestuff Industries

· Star Dyes and Intermedies

No. of Employees :

35

Bankers :

· ING Vysya Bank Limited

Chanakya Near Dinesh Hall,

Off. Ashram Road, Ahmedabad-380009, Gujarat

Tel No.: 91-79-26589949/26580873

Fax No: 91-79-2658379

Email: ahmedabadbr@vysbank.com

Credit Limit: Rs. 25.000 millions

· IDBI Bank Limited

IDBI House, Lal Bungalow, C. G. Road, Ahmedabad – 380006

· The Dhanalaxmi Bank Limited

3, Motilal Centre, Ashram Road, Ahmedabad – 380009

Credit Limit: Rs. 20.000 millions

· The Hong Kong and Shanghai Banking Corporation Limited

Mardia Plaza, C. G. Road, Ahmedabad - 380006

Facilities :

Secured Loan	(Rs in millions)
ING Vysya Bank	5.151
ING Vysya Bank	3.228
The Dhanalaxmi Bank Limited	14.827
HDFC Bank	0.316

Banking Relations :	Satisfactory
Auditors :	Kedia and Kedia Associates Chartered Accountant 205, Kaling, B/H, B. J. House, Ashram Road, Ahmedabad, Gujarat, India
Tel. No.:	91-79-26579971
Mobile No.:
Fax No.:	91-79-26579971
E-Mail :	kediaca@sancharnet.in
Associates :	Ø Sumangal Tradelink Private Limited, A-414, Atma House, Opposite Old RBI, Ashram Road, Ahmedabad – 380 009, Gujarat Dealers in Dyes and Dye Intermediates Ø Temchem Exports Private Limited, A-414, Atma House, Opposite Old RBI, Ashram Road, Ahmedabad – 380 009, Gujarat Dealers in Disperse Dyes and Reactive Dyes

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
700000	Equity Shares	Rs. 10/- each	Rs. 7.000 millions
300000	Redeemable Non-Cumulative preference Shares	Rs. 10/- each	Rs. 3.000 millions
	TOTAL		Rs. 10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250410	Equity Shares	Rs. 10/- each	Rs. 2.504 millions
300000	Redeemable Non-Cumulative preference Shares	Rs. 10/- each	Rs. 3.000 millions
	TOTAL		Rs. 5.504 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

We are trying for latest financials and will be supplemented as soon as available.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		5.504	2.500
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		6.373	0.444
4] (Accumulated Losses)		0.000	0.000
NETWORTH		11.877	2.944
LOAN FUNDS
1] Secured Loans		23.524	12.796
2] Unsecured Loans		5.905	3.668
TOTAL BORROWING		29.429	16.464
DEFERRED TAX LIABILITIES		0.148	0.072
TOTAL		41.454	19.480
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.938	0.649
Capital work-in-progress
INVESTMENT		0.903	0.003
DEFERREX TAX ASSETS
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	35.467	28.011
	Sundry Debtors	77.086	19.180
	Cash & Bank Balances	18.585	14.015
	Other Current Assets	0.002	0.008
	Loans & Advances	10.117	0.799
Total Current Assets		141.257	62.013
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	105.652	43.032
	Provisions	1.118	0.298
Total Current Liabilities		106.770	43.330
Net Current Assets		34.487	18.683
MISCELLANEOUS EXPENSES		0.126	0.145
TOTAL		41.454	19.480

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	344.676	131.570
Profit/(Loss) Before Tax	2.399	0.801
Provision for Taxation	0.907	0.305
Profit/(Loss) After Tax	1.492	0.496
Export Value	0.742	NIL
Import Value	298.772	69.201
Total Expenditure	342.276	130.769

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004
PAT / Total Income	(%)	0.43	0.38
Net Profit Margin (PBT/Sales)	(%)	0.70	0.61
Return on Total Assets (PBT/Total Assets}	(%)	1.63	1.28
Return on Investment (ROI) (PBT/Networth)		0.20	0.28
Debt Equity Ratio (Total Liability/Networth)		11.46	20.31
Current Ratio (Current Asset/Current Liability)		0.32	1.43

LOCAL AGENCY FURTHER INFORMATION

Hind Prakash is purchasing the products mainly from China, Germany and Taiwan as well as from some domestic manufacturers. China has emerged as one of the low cost manufacturing country coupled with good quality and market orientation and so large multinationals are now setting up their respective manufacturing facilities. Their excellent contacts with these Multinationals as also with large Chinese Manufacturers is enabling us to sources quality material from them and cater it to domestic market. Also they are sourcing some of the products from the domestic small-scale manufacturers with little marketing strength and catering to the industries. Their capabilities as a provider of excellent technical and logistical support has enable to create a list of well satisfied customers in the Dyes and Dye intermediates, textiles and Pharmaceuticals industry all over India.

Major Competitors are :

C J Shah and Company , Mumbai

ITA-Chem Private Limited, Mumbai

Orio Sanghai Colours private Limited , Ahmedabad

Emco Dyestuff private Limited, Mumbai

The company is availing clean credit facility of D/A 90 days.

Name of such companies are:

Degussa AG- Germany

Sinochem Tianjin IMP and EXP. Corporation – China

Sinochem Tianjin Imp and Exp. Shenzhen Corporation – China

Shanghai Aminochem Company Limited – China

Dragonchem Enterprise Limited – China

Hind Prakash International is a name to reckon with dyestuff and chemical industry and name synonymous with qualitative marketing of its products. From manufacturing, conversion and marketing of dyestuff and chemicals, Hind Prakash International is successfully diversified into Colours & Chemicals. The organization is a team compare of a young and dynamic team of enthusiastic, yet experienced group of management and employees who are eager to deliver results within tight frame.

HIND PRAKASH Group of Companies are dedicated to the Chemical Dyestuff business and have set high goals. They are an achievement oriented organization and are proud of our track record. Infrastructure development by us and with policies that fuel growth, they have a very positive outlook for the future.

The Position of strength has been achieved by adopting a long-term commitment to offering innovative and competitive products to help customers achieve success in their markets. They have strengthened our commitment to act as an industry pioneer through continuous efforts in R & D and the introduction of advanced products.

Hind Prakash also plans to introduce series of innovative dyestuffs to the market during the later half of this year. Exceptional business performance together with a solid financial structure made us the Nations Best Dyestuff and chemical company. And they want to be recognized our self Internationally by this trend only.

Subject is looking towards: -

• Additions to the product range
• Additions to the capacities
• Addition to new markets
• Long term associations/ contracts
• Toll manufacturing under secrecy agreements
• Equity participation of the customers
• More emphasis on environment friendly products

It is in trade terms with:-

· Metrochem Industries Limited, 508 Suryarath, Near Panchvati, C. G. Road, Ahmedabad, Gujarat, India

Tel.: 91-79-26403212

Contact: Mr. Hanuman Jain

• Modern Chemical Corporation, 110, Hemkoot, Ashram Road, Ahmedabad, Gujarat, India
• Shah Industries, Plot No. C-1/270, GIDC-Phase-I, Naroda, Ahmedabad, Gujarat, India

Tel.: 91-79-30919280

Contact: Mr. Parag Shah

• Atul Limited (Colour Division), P.O. Atul, District: Valsad

Tel.: 91-2632-233291/2

Contact: Mr. Tarun Bhargav / Mr. Kalpesh Patel

• Alps Chemicals Limited, Phase IV, GIDC, Vatva, Ahmedabad – 382445

Tel.: 91-79-25834338

Contact: Mr. Harish Bhuta

• Chromatic India Limited, 207, Vardhman Ser. Industrial Estate, LBS Marg, Vikhroli, Mumbai – 400083

Tel.: 91-22-25793345

Contact: Mr. Vartak

• Dynamic Industries Limtied, Phase 3, GIDC, Vatva, Ahmedabad – 380009

Tel.: 91-79-25897223

Contact: Mr. Deepak Choksi – Managing Director

• ADCI Dyechem Private Limited, Swagat, Off. C. G. Road, Ahmedabad – 380009

Tel.: 91-79-26565754

Contact: Mr. Rajendra Shah

• Ornet Intermediates Limited, Suryarath, Panchwati, Ahmedabad – 380006

Tel.: 91-79-26424628

Contact: mr. Dinesh Jain

The company’s fixed assets of important value include vehicle, computers and 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 records 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. 44.65
UK Pound	1	Rs. 85.03
Euro	1	Rs. 56.98

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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		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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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