MIRA INFORM REPORT

Report Date :

12.05.2008

IDENTIFICATION DETAILS

Name :	HIND PRAKASH INTERNATIONAL TRADING PRIVATE LIMITED
Registered Office :	Hindprakash House, Ground Floor, Kalyan Society, Near M. G. International School, Mithakhali, Ahmedabad- 380006, Gujarat
Country :	India
Financials (as on) :	31.03.2007
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 :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 100000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Cleat
Comments :	Mr. Niraj Nandha, Export Manager updated business and financial details. Subject is a well established and reputed company and a part of Hind Prakash Group, a family controlled medium sized industrial house. Trade references are fair. Payments are correct and as per commitments. The company is doing well. Nothing adverse reported. It can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Hindprakash House, Ground Floor, Kalyan Society, Near M. G. International School, Mithakhali, Ahmedabad, Gujarat-380006, India
Tel. No.:	91-79-65127841/42
Fax No.:	91-79-66317200
E-Mail :	snn@hindprakash.com , info@hindprakash.com
Website :	http://www.hindprakash.com
Area :	Owned Building
Ware house :	Vatva Ahmedabad
Area :	Owned- Medium Size

DIRECTORS

Name :	Mr. Santosh N. Nambiar
Designation :	Director
Address :	M-110, Shrinandnagar II, Vejalpur, Ahmedabad-380051, Gujarat, India
Date of Birth/Age :	17.10.1970
Qualification :	B. Com
Date of Appointment :	28.01.2003
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 :	15.06.1951
Qualification :	Under Graduate
Date of Appointment :	10.06.2004

KEY EXECUTIVES

Name :	Mr. Niraj Nandha
Designation :	Export Manager
Mobile No. :	91-9227213360
Address :	Hind Prakash House, Ground Floor, Kalyan Society, Near M. G. International School, Mithakali, Ahmedabad – 380006, Gujarat, India
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	No. of Shares
Equity share holders
Santosh N. Nambiar	5000
Mangal Sons Trust	239390
Hindprakash Trade Link Private Limited	100
Hindprakash Exim Private Limited	100
Kalavati Finance Limited	10
Manmohit Plasto Pack Private Limited	10
Mangal Brother Trust	100
H C Shah HUF	10
Umashree Polyplast Private Limited	10
Deepjyoti Commodities Private Limited	10
Translink India Private Limited	10
Chanakayaprakash V Mangal	100
Chandragupta V Mangal	100
Radhika S Mangal	100
Priyanta S Mangal	100
Prakash Chand Jain	5000
Others	260
Total	250410
Preference Shareholders
Decolic Dealers Private Limited	40000
Shree Leasing and Finance Limited	20000
Shridhar Preservers Limited	120000
Devika Proteins Limited	120000
Dhanvidhya Impex Private Limited	50000

Equity share breakup (percentage of total equity)

As on 30.09.2006

Category	Percentage
Bodies Corporate (not mentioned above	0.11
Directors or relatives of directors	3.99
Other top fifty (50) shareholders (other than listed above)	95.90
Total	100.00

BUSINESS DETAILS

Line of Business :

Dealer, Distributor and Importer of Dyes and Dye Inermediates.

Products :

• Dyes
• Dyestuffs
• Chemicals

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

Brand Names :

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 :

Products :

• Dyes
• Dyes Intermediaries

Countries :

Far East

Imports :

Products :

Raw Material

Countries :

China, Germany and Ukraine

Terms :

Selling :

L/C, D/A, CAD

Purchasing :

Cash and Credit (90 to 120 Days), D/A

GENERAL INFORMATION

Suppliers :	Adgums Private Limited Anmol Dyesuff Private Limited M. J. Chemical Industries Panoli Intermediates Private Limited Amber Gum Industries Asiatic Colour Chem Industries Limited
Customers :	Wholesalers, Retailers and End Users · Atul Limited · Cora Chem – Surat · Chromatic India Limited-Mumbai · Synthetic Dyes and Chemicals – Mumbai · 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 Intermedieson
No. of Employees :	60 (Office-10, Factory-50)
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 · 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 :	The company reported to enjoy substantial facilities from it’s bankers.

Banking Relations :	Good
Auditors :
Name :	Kedia and Kedia Associates Chartered Accountant
Address :	205, Kaling, 2^nd Floor, Near Mount Carmel School, B/H B. J. House, off Ashram Road, Ahmedabad, Gujarat-380009, India
Tel. No.:	91-79-26579971
Fax No.:	91-79-26579971
E-Mail :	kediaca@sancharnet.in
Associates/Subsidiaries :	Hind Prakash Tradelink Private Limited, Ahmedabad Hind Prakash Exim Private Limited, Ahmedabad Sumangal Tradelink Private Limited, A-414, Atma House, Opposite Old RBI, Ashram Road, Ahmedabad – 380 009, Gujarat Dealers in Dyes and Dye Intermediates Temchem Exports Private Limited, A-414, Atma House, Opposite Old RBI, Ashram Road, Ahmedabad – 380 009, Gujarat Dealers in Dyes and Dye Intermediates

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity shares	Rs. 10/- each	Rs. 5.000 Millions
500000	Preference Shares	RS. 10/- each	Rs. 5.000 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
500000	Preferences Shares	Rs. 10/- each	Rs. 5.000 Millions
	Total		Rs. 7.504 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		7.504	6.504	5.504
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		17.847	11.388	6.374
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25.351	17.892	11.878
LOAN FUNDS
1] Secured Loans		17.738	6.657	5.468
2] Unsecured Loans		22.281	15.221	5.905
TOTAL BORROWING		40.019	21.878	11.373
DEFERRED TAX LIABILITIES		0.023	0.212	0.148
TOTAL		65.393	39.982	23.399
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.864	7.404	5.938
Capital work-in-progress		1.171	0.000	0.000
INVESTMENT		0.003	0.003	0.903
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	32.908	27.732	21.212
	Sundry Debtors	122.661	68.930	59.030
	Cash & Bank Balances	10.683	7.707	18.586
	Other Current Assets	0.123	0.132	0.002
	Loans & Advances	20.242	2.116	9.057
Total Current Assets		186.617	106.617	107.887
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	140.834	73.974	91.397
	Provisions	0.518	0.176	0.058
Total Current Liabilities		141.352	74.150	91.455
Net Current Assets		45.265	32.467	16.432
MISCELLANEOUS EXPENSES		0.090	0.108	0.126
TOTAL		65.393	39.982	23.399

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover including Other Income		994.201	492.385	342.656
Total Income		944.201	492.380	342.656
Profit/(Loss) Before Tax		5.834	3.290	2.399
Provision for Taxation		2.260	1.188	0.906
Profit/(Loss) After Tax		3.574	2.102	1.493
Earnings in Foreign Currency		141.711	28.659	0.000
Imports :
	Traded Goods	473.788	363.030	0.000
	Highseas Purchases of Traded Goods	48.222	0.007	0.000
	Capital Goods	0.000	0.000	0.000
Total Imports		522.01	363.037	0.000
Total Expenditure		988.367	489.095	340.257

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	0.38	0.43	0.44
Net Profit Margin (PBT/Sales)	(%)	0.62	0.67	0.70
Return on Total Assets (PBT/Total Assets}	(%)	2.84	2.89	2.11
Return on Investment (ROI) (PBT/Networth)		0.23	0.18	0.20
Debt Equity Ratio (Total Liability/Networth)		7.15	5.37	8.66
Current Ratio (Current Asset/Current Liability)		1.32	1.44	1.18

LOCAL AGENCY FURTHER INFORMATION

The Registered Office of the Company has been shifted from A-414, Atma House, Opp. Old RBI, Ashram Road, Ahmedabad – 380 009, Gujarat, India to the present address.

Business

Subject 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 them the Nations Best Dyestuff and chemical company. And they want to be recognized their 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.

Bankers Charges Report as per Registry

Name of the company	HIND PRAKASH INTERNATIONAL TRADING PRIVATE LIMITED
Presented By	Mr. Sandeep Aggarwal
1) Date and description of instrument creating the change	17.02.2004 agreement for Hypothecation of stock in trade etc.
2) Amount secured by the charge/amount owing on the securities of charge	Ea. 2.500 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of Stocks of Dyes. Intermediates, Chemicals and all other materials to be purchased under FLC whether lying loose or in cases at borrower’s godown located at Mangal Murli Ware House, Maruti Nandan Estate, Near Hotel Parichay, Aslali Village, Ahmedabad or at CONCOR, ICD, Sabarmati, Ahmedabad or at CWC, Adalaj, Ahmedabad or at anyl place situated in Gujarat or else where.
4) Gist of the terms and conditions and extent and operation of the charge.	Properties mentioned in (3) above shall be hypothecated to the Bank by way first charge as security for payment and discharge by the borrower to the bank on demand of Rs. 2.500 Millions and all other moneys at any time payable by the borrower in respect of Foreign Letter of Credit facility granted by the bank and also as security for the payment and discharge of all indbicdness whatever or liability of the borrower to the bank. Rate of interest: Commission as per norms. Margin : 30% Validity: One year fro DOS up to 26.01.2005
5) Name and Address and description of the person entitled to the charge.	The Vysya Bank lamed with its registered office at 72, St. Mark’s Road, Bangalore – 560001 and having among others a branch at Ahmedabad
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

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 :

Their 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.

Their 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.41.68
UK Pound	1	Rs.81.23
Euro	1	Rs.64.13

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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