MIRA INFORM REPORT

Report Date :

03.12.2011

IDENTIFICATION DETAILS

Name :	K.B. POLYCHEM (INDIA) PRIVATE LIMITED
Registered Office :	Plot No. F-1 to F-25, Industrial Area, Sikandra Site-C, Agra-282007, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.09.2009
Com. Reg. No.:	20-038205
Capital Investment / Paid-up Capital :	Rs.0.642 Million
CIN No.: [Company Identification No.]	U24139UP2009PTC038205
TAN No.: [Tax Deduction & Collection Account No.]	AGRK11082B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of PU Chemicals
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 54000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a relatively new company having moderate track. Profitability of the company appears to be low. However, Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Nitin Batra
Designation :	Director
Contact No.:	91-9997019001

LOCATIONS

Registered Office/ Factory :	Plot No. F-1 to F-25, Industrial Area, Sikandra Site-C, Agra-282007, Uttar Pradesh, India
Tel. No.:	91-562-3266969
Mobile No.:	91-9997019001 (Mr. Nitin Batra)
Fax No.:	91-562-2640576
E-Mail :	kbgroupindia@gmail.com anujashoksign@yahoo.co.in ankitagarwalca@gmail.com
Area :	Owned

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Saurabh Bhalla

Designation :

Director

Address :

407, Friends Ashiyana, Khandari Ps Hariparvat, Agra-282002, Uttar Pradesh, India

Date of Birth/Age :

02.05.1975

Date of Appointment :

09.09.2009

DIN No.:

02747307

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24139UP2009PTC038205	K.B. POLYCHEM (INDIA) PRIVATE LIMITED	Director	9/9/2009	9/9/2009	Active	NO
2	U74999UP2011PTC047498	MORDERN CHEMTECH PRIVATE LIMITED	Director	17/11/2011	17/11/2011	Active	NO
3	U74900UP2011PTC047516	FUTURE EQUITY CONSULTANTS PRIVATE LIMITED	Director	18/11/2011	18/11/2011	Active	NO

Name :

Mr. Kamlesh Kumar Bhalla

Designation :

Director

Address :

Flat No. 407, Friends Ashiana, Khandari, Agra-282002, Uttar Pradesh, India

Date of Birth/Age :

05.01.1942

Date of Appointment :

22.03.2010

DIN No.:

02749957

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U19113UP2009PTC038184	K.B. TRADEXIM PRIVATE LIMITED	Director	8/9/2009	8/9/2009	Active	NO
2	U24139UP2009PTC038205	K.B. POLYCHEM (INDIA) PRIVATE LIMITED	Director	22/03/2010	22/03/2010	Active	NO
3	U74120UP2011PTC047497	MORTON CHEMICAL INDIA PRIVATE LIMITED	Director	17/11/2011	17/11/2011	Active	NO

Name :

Mr. Nitin Batra

Designation :

Director

Address :

6/215, Punjabi Gali, Hing Ki Mandi, P.O Sethgali, P.S. Kotwali, Agra-282003, Uttar Pradesh, India

Date of Birth/Age :

22.03.1976

Date of Appointment :

22.03.2010

DIN No.:

02758950

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U19113UP2009PTC038184	K.B. TRADEXIM PRIVATE LIMITED	Director	8/9/2009	8/9/2009	Active	NO
2	U24139UP2009PTC038205	K.B. POLYCHEM (INDIA) PRIVATE LIMITED	Director	22/03/2010	22/03/2010	Active	NO
3	U74120UP2011PTC047497	MORTON CHEMICAL INDIA PRIVATE LIMITED	Director	17/11/2011	17/11/2011	Active	NO

Name :

Ms. Puja Batra

Designation :

Director

Address :

306, Friends Ashiyana, Khandari, Agra-282002, Uttar Pradesh, India

Date of Birth/Age :

05.03.1977

Date of Appointment :

09.09.2009

DIN No.:

02759913

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24139UP2009PTC038205	K.B. POLYCHEM (INDIA) PRIVATE LIMITED	Director	9/9/2009	9/9/2009	Active	NO
2	U74999UP2011PTC047498	MORDERN CHEMTECH PRIVATE LIMITED	Director	17/11/2011	17/11/2011	Active	NO
3	U74900UP2011PTC047516	FUTURE EQUITY CONSULTANTS PRIVATE LIMITED	Director	18/11/2011	18/11/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Saurabh Bhalla	10000
Puja Batra	10000
Charu Bhalla	5000
Nidhi Bhalla	1000
Kamlesh Kumar Bhalla	19100
Nitin Batra	19100
Total	64200

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of PU Chemicals

GENERAL INFORMATION

Suppliers

(As on 31.03.2010):

· Agra Chemicals

· Braj Products, Mathura

· Chowdhary Rubber, New Delhi

· Electricity Pymt Payable

· H.R. Organo Chem Private Limited

· Huntsman International (India) Private Limited

· K.B. International, Agra

· K.B. Overseas

· K.B. Tradexim Private Limited, Agra

· Ritesh Engineers, New Delhi

· Tipco Engineering Works, New Delhi

Customers

(As on 31.03.2010):

· Aerobok Shoe Private Limited

· A One Footwear, Alwar

· Bairathi Shoe Company Private Limited, Jaipur

· Charan Paaduka Industries (Private) Limited

· Comfort Polymers

· K.C Polymers, Valsad

· Om Polymers

· Rameshwaram Agro Oils Private Limited

· Tej International Private Limited, Agra

· Shyam Industries

No. of Employees :

50 (Approximately)

Bankers :

· Bank of Baroda

85/4, Ispat Bhavan, Sanjay Place, Agra-282002, Uttar Pradesh, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Bank of Baroda (OD/ CC)	5.426	0.000
Car Loan HDFC (Nitin Batra)	0.716	0.000
Car Loan HDFC (Saurabh Bhalla)	0.755	0.000
Total	6.897	0.000
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors	11.817	1.275
From Share Holders	1.109	0.000
From Companies	0.000	0.000
Total	12.926	1.275

Banking Relations :	--
Auditors :
Name :	Dinesh K. Agarwal and Company Chartered Accountant
Address :	46-A, Madhav Kunj, Pratap Nagar, Agra-282010, Uttar Pradesh, India
Tel. No.:	91-562-2210682/2211067
PAN No.:	AACFD5482D
Associates/Subsidiaries (As on 31.03.2010):	· K.B. Trade Exim Private Limited Address: Plot No. F-1 to F-25, Industrial Area, Sikandra Site-C, Agra-282007, Uttar Pradesh, India

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Share	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
64200	Equity Share	Rs.10/- each	Rs.0.642 Million

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.10/- each	Rs.1.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
64200	Equity Shares	Rs.10/- each	Rs.0.642 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.642	0.642
2] Share Application Money		8.100	0.000
3] Shares Premium		3.978	3.978
4] Reserves & Surplus		0.787	0.126
5] (Accumulated Losses)		0.000	0.000
NETWORTH		13.507	4.746
LOAN FUNDS
1] Secured Loans		6.897	0.000
2] Unsecured Loans		12.926	1.275
TOTAL BORROWING		19.823	1.275
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		33.330	6.021
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.285	2.806
Capital work-in-progress		0.000	0.000
INVESTMENT		0.098	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.387	4.433
	Sundry Debtors	34.965	5.697
	Cash & Bank Balances	2.982	0.949
	Other Current Assets	0.000	0.000
	Loans & Advances	0.484	0.341
Total Current Assets		47.818	11.420
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	20.025	8.029
	Other Current Liabilities	0.706	0.170
	Provisions	0.176	0.054
Total Current Liabilities		20.907	8.253
Net Current Assets		26.911	3.167
MISCELLANEOUS EXPENSES		0.036	0.048
TOTAL		33.330	6.021

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Sales and Other Income	98.913	9.124
		TOTAL (A)	98.913	9.124
Less	EXPENSES
		TOTAL (B)	96.766	8.898
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.147	0.226
Less	FINANCIAL EXPENSES (D)		0.739	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.408	0.226
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.489	0.044
	PROFIT BEFORE TAX (E-F) (G)		0.919	0.182
Less	TAX (H)		0.257	0.056
	PROFIT AFTER TAX (G-H) (I)		0.662	0.126
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.126	0.000
	BALANCE CARRIED TO THE B/S		0.788	0.126
	Earnings Per Share (Rs.)		10.31	1.96

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010
PAT / Total Income	(%)	0.67	1.38
Return on Total Assets (PBT/Total Assets}	(%)	1.70	1.28
Return on Investment (ROI) (PBT/Networth)		0.07	0.04
Debt Equity Ratio (Total Liability/Networth)		3.02	2.00
Current Ratio (Current Asset/Current Liability)		2.29	1.38

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered Office of the company has been shifted from B-17, HIG, Shastripuram, Sikandra, agra – 282007, Uttar Pradesh, India, to the present address w.e.f. 08.04.2010.

GENERAL REVIEW:

The company performance was satisfactory during the year. The company able to do business and earned net profit. The directors are hopeful that the company will grow more and achieve its target of net profit in the year to come. The future of the company seems to be bright.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10249499
Corporate identity number of the company	U24139UP2009PTC038205
Name of the company	K.B. POLYCHEM (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. F-1 to F-25, Industrial Area, Sikandra Site-C, Agra-282007, Uttar Pradesh, India ankitagarwalca@gmail.com
Type of charge	Immovable Property Book debts Movable property (not being pledge)
Particular of charge holder	Bank of Baroda, Sanjay Place, Agra - 282002, Uttar Pradesh, India sanjay@bankofbaroda.co.in
Nature of description of the instrument creating or modifying the charge	Supplementary Hypothecation Agreement Supplementary Memorandum of Entr
Date of instrument Creating the charge	18.09.2011
Amount secured by the charge	Rs.10.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 3% over the base lending rate Terms of Repayment As per the agreement Margin 25 % on Stocks 40% on Book Debts Extent and Operation of the charge The charge will operate on first charge basis
Short particulars of the property charged	Hypothecation of Stock, book debts and machinery Equitable Mortgage of Factory Land & Building Including Machinery fastened to the earth at F-25, Site C UPSIDC Sikandra Agra
Particulars of the present modification	Existing First charge over fixed assets and current assets of the company has been extended to secure increased cash credit limit of Rs.10.000 Millions.

FIXED ASSETS:

· Factory Building

· Car

· Computer and Accessories

· Camera

· Plant and Machinery

· Fridge

· Mobile Phone

· Weight Weighing Machine

· Furniture and Fixtures

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.51.65
UK Pound	1	Rs.81.06
Euro	1	Rs.69.51

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.