MIRA INFORM REPORT

Report Date :

30.06.2011

IDENTIFICATION DETAILS

Name :	ARIHANT CHEMICALS AND RESINS (INDIA) PRIVATE LIMITED

Registered Office :	11, Peninsula Centre S. S. Rao Road, Parel, Mumbai - 400009, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	28.02.2003

Com. Reg. No.:	11-139400

Capital Investment / Paid-up Capital :	Rs.2.000 Millions

CIN No.: [Company Identification No.]	U51102MH2003PTC139400

TAN No.: [Tax Deduction & Collection Account No.]	MUMA18787G

PAN No.: [Permanent Account No.]	AAECA1296P

Legal Form :	Private Limited Liability Company

Line of Business :	Trader and Dealer of Chemical used in Paint Industry.

No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 110000

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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.

INFORMATION PARTED BY

Name :	Mr. Sachin Satam
Designation :	Accounts Assistant Manager
Contact No.:	91-9869865545
Date :	29.06.2011

LOCATIONS

Registered Office / Corporate Office :	11, Peninsula Centre S. S. Rao Road, Parel, Mumbai - 400009, Maharashtra, India They have 2 premises one at 11 Peninsula and 2^nd at 9 Peninsula.
Tel. No.:	91-22-40586777 / 40586718 to 23 (Hunting Lines)
Mobile No.:	91-9619558656 (Mr. Bhaskar)
Fax No.:	91-22-40586752 / 40586770 / 66608077
E-Mail :	info@arihantchemicals.com bhaskar.rao@arihantchemicals.com
Website :	www.arihantchemicals.com
Area :	1600 sq. ft. (Owned)

Warehouse:	Muni Surat Complex, Gala Nos. D-1 and D-2, Ground Floor Rahnal Village, Taluka Bhiwandi District Thane- 421302 , Maharashtra, India
Area:	Owned

Branch offices :	Located At: Ahmedabad Bangalore Delhi Indore Kolkata Pune Chennai

DIRECTORS

As on 30.09.2010

Name :	Mr. Bhupendra Gopalji Sakaria
Designation :	Director
Address :	703, Saumitra CHS. Limited, Plot No.295 A, Bhimani Street, Opp Nappo Garden, Matunga CR, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	24.08.1939
Date of Appointment :	28.02.2003

Name :	Mrs. Aruna Bhupendra Sakaria
Designation :	Director
Address :	703, Saumitra CHS. Limited, Plot No.295 A, Bhimani Street, Opp Nappo Garden, Matunga CR, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	20.01.1951
Date of Appointment :	30.11.2004

Name :	Ms. Shwetal Bhupendra Sakaria
Designation :	Director
Address :	703, Saumitra CHS. Limited, Plot No.295 A, Bhimani Street, Opp Nappo Garden, Matunga CR, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	06.06.1980
Date of Appointment :	28.02.2003

Name :	Ms. Khushi Shwetal Sakaria
Designation :	Director
Address :	703, Saumitra CHS. Limited, Plot No.295 A, Bhimani Street, Opp Nappo Garden, Matunga CR, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	20.10.1983
Date of Appointment :	30.11.2004

KEY EXECUTIVES

Name :	Mr. Sachin Satam
Designation :	Accounts Assistant Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders		No. of Shares
Bhupendra Gopalji Sakaria		91103
Shwetal Bhupendra Sakaria		80333
Aruna Bhupendra Sakaria		10334
Khushi Shwetal Sakaria		10000
Kanchi Nilesh Mehta (under the Guardianship of Rupal N Mehta)		1000
Rupal N Mehta		1000
Rupal Snehal Shah		1000
Snehal C Shah		1000
Viral J Sakaria		1000
Sujata V Sakaria		1000
Dimple P Vasa		1000
Abhay Rajnikant Shah (HUF)		10
Ajay Rajnikant Shah (HUF)		10
Rajnikant Kodarlal Shah (HUF)		10
Kartik Shashikant Mehta		1000
Sunil Pravin Shah		100
Jaydeep Mehta		100

Total		200000

As on 30.09.2010

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

BUSINESS DETAILS

Line of Business :

Trader and Dealer of Chemical used in Paint Industry.

Products :

Product Description	Item Code
Chemicals	202

Agencies Held :

Rahim and Haas, US
Sumitomo Chemicals, Japan
Evonik Degussa, GmbH
Camlin India Limited, Mumbai

Exports :

Products :

Chemical

Countries :

South Africa

Imports :

Products :

Chemical

Countries :

Germany
Japan
US

Terms :

Selling :

L/C / Credit

Purchasing :

L/C / Credit

GENERAL INFORMATION

No. of Employees :

40 (Approximately)

Bankers :

· Union Bank of India, Khand Bazar Branch, 109, Kazi Syed Street, Khand Bazar, Mumbai – 400003, Maharashtra, India

· HDFC Bank, senapati Bapat Marg, Lower parel (West), Mumbai – 400 013, Maharashtra, India

· Abhyudaya Co-operative Limited, Administrative Office, K T Tower, Abhyudaya Bank, Lane, Office G D Ambedkar Marg, Parel Village, Mumbai – 400012, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
HDFC Bank (Foreign Bill Discounting Facility)	4.814	0.534
Abhyudaya Bank (Term Loan) (Secured against hypothecation of office premises at New Mumbai)	9.650	0.000
Car Loans (Secured against hypothecation of cars)	0.225	0.597
HDFC Buyers Credit Loan	12.310	0.000
Union Bank of India (Bills Discounting) (Against of letter of credits)	5.262	1.639
LIC Loan (Against surrender value of keyman policy)	0.000	0.523
Total	32.261	3.293

Unsecured Loan
From Members	9.343	12.023
From Directors	44.623	38.806
Total	53.966	50.829

Note:

Secured against hypothecation of all current assets including stocks and book debts and equitable mortgage of the properties.


Banking Relations :	--

Auditors :
Name :	M M and Company Chartered Accountants
Address :	3/4 S.P Mistry Building, Behind Hotel, Shirodkar Road, Parle, Mumbai-400012, Maharashtra, India

Associates/Subsidiaries :	· Tridev Resins India Private Limited Line of business : Manufacturer of Resins · Arihant Pigments India Private Limited Line of business : Trader of Pigments · Saitech Coating Private Limited Line of business : Manufacturer of Coating

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.10/- each	Rs.2.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		2.000	2.000	2.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		26.347	20.885	20.360
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		28.347	22.885	22.360
LOAN FUNDS
1] Secured Loans		32.261	3.293	54.142
2] Unsecured Loans		53.966	50.829	53.844
TOTAL BORROWING		86.227	54.122	107.986
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		114.574	77.007	130.346

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		11.965	13.533	15.015
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		33.163	6.416	6.416
DEFERREX TAX ASSETS		0.532	1.117	0.383

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	33.830	33.937	53.303
	Sundry Debtors	102.595	86.921	110.634
	Cash & Bank Balances	0.438	0.462	0.692
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	19.073	23.501	20.982
Total Current Assets		155.936	144.821	185.611
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	44.060	56.558	53.930
	Other Current Liabilities	34.408	26.623	14.085
	Provisions	8.554	5.699	9.064
Total Current Liabilities		87.022	88.880	77.079
Net Current Assets		68.914	55.941	108.532

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		114.574	77.007	130.346

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income		454.063	382.555
		Other Income		8.617	9.018
		TOTAL (A)	404.662	462.680	391.573

Less	EXPENSES
		Cost of Goods Sold		406.243	341.882
		Personnel Cost	393.613	4.934	4.827
		Administrative and Selling Expenses		40.737	29.833
		TOTAL (B)	393.613	451.914	376.542

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	10.766	15.031

Less	FINANCIAL EXPENSES (D)		NA	7.070	7.023

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.049	3.696	8.008

Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.147	2.541	2.833

	PROFIT BEFORE TAX (E-F) (G)		8.902	1.155	5.175

Less	TAX (H)		3.440	0.630	2.332

	PROFIT AFTER TAX (G-H) (I)		5.462	0.525	2.843

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	18.132	15.289

	BALANCE CARRIED TO THE B/S		NA	18.657	18.132

	EARNINGS IN FOREIGN CURRENCY		46.758	NA	NA

	Earnings Per Share (Rs.)		27.31	2.62	14.22

Particulars

31.03.2011

Sales Turnover (Approximately)

440.000

The above information has been parted by Mr. Sachin Satam.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.35	0.11	0.73

Net Profit Margin (PBT/Sales)	(%)	NA	0.25	1.35

Return on Total Assets (PBT/Total Assets}	(%)	5.30	0.73	2.57

Return on Investment (ROI) (PBT/Networth)		0.31	0.05	0.23

Debt Equity Ratio (Total Liability/Networth)		6.11	6.25	8.28

Current Ratio (Current Asset/Current Liability)		1.79	1.63	2.41

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

Sundry Creditors

44.060

56.558

53.930

Performance:

The company’s performance was satisfactory during the year.

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U51102MH2003PTC139400
Name of the company	ARIHANT CHEMICALS AND RESINS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	11, Peninsula Centre S. S. Rao Road, Parel, Mumbai - 400009, Maharashtra, India
Type of charge	Immovable Property
Particular of charge holder	Abhyudaya Co-operative Limited, Administrative Office, K T Tower, Abhyudaya Bank, Lane, Office G D Ambedkar Marg, Parel Village, Mumbai – 400012, Maharashtra, India
Email	m.g.kalelkar.associates@gmail.com
Nature of description of the instrument creating or modifying the charge	Deed of Simple Mortgage
Date of instrument Creating the charge	10.08.2009
Amount secured by the charge	Rs.19.300 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rate of Interest: 13% p.a. or at such other rate as may be decided from time to time by the Bank. Terms of Repayment Repayment by way of 72 EMI of Rs.0.387 million each. The payment of EMI will start after expiry of moratorium period of 12 months, i.e. from 1-8-2010. Margin As may be decided, from time to time, by the Bank. Extent and Operation of the charge To secure the due repayment of Term Loan of Rs.19.300 millions, together with interest thereon, granted by the Bank to the Company.
Short particulars of the property charged	I) Office No.701, adm. about 85.47 sq.mtrs. (Carpet area) equivalent to approx 102.56 sq.mtrs. (built-up area) on 7th fl. in bldg. "Ellora Fiesta", Plot No.8, Sector 11, Sanpada, Navi Mumbai. II) Office No.702, adm. about 89.55 sq.mtrs. (Carpet area) equivalent to approx 107.46 sq.mtrs. (built-up area) on 7th fl. in bldg. "Ellora Fiesta", Plot No.8, Sector 11, Sanpada, Navi Mumbai. III) Office No.703, adm. about 89.55 sq.mtrs. (Carpet area) equivalent to approx 107.46 sq.mtrs. (built-up area) on 7th fl. in bldg. "Ellora Fiesta", Plot No.8, Sector 11, Sanpada, Navi Mumbai.

TRADE REFERENCES:

Rahim and Haas, US
Sumitomo Chemicals, Japan
Evonik Degussa, GmbH
Camlin India Limited, Mumbai

Fixed Assets:

Office Premises
Computer
Furniture and Fixtures
Office Equipments
Residential Property
Motor Vehicles
godowns

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.44.94
UK Pound	1	Rs.71.91
Euro	1	Rs.64.60

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.