MIRA INFORM REPORT

Report Date :

03.03.2011

IDENTIFICATION DETAILS

Name :	GAMMA COATINGS PRIVATE LIMITED
Registered Office :	Azad Nagar, Manpada, Thane-400 607, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.03.1995
Com. Reg. No.:	11-86732
CIN No.: [Company Identification No.]	U242250MH1995PTC086732
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, exporter and Wholesale Supplier of Adhesives, Industrial Paints, Thinners, Polyurethane Paints and Epoxy Paints.

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 42000
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.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	Azad Nagar, Manpada, Thane-400 607, Maharashtra, India
Tel. No.:	91-22-25896615/25896570
Mobile No.:	91-9820120849 (Mr. D. U. Ved)
Fax No.:	91-22-25896570
E-Mail :	gammacoatings@vsnl.net

DIRECTORS

As on 30.09.2010

Name :	Ms. Deviyani Dilip Ved
Designation :	Director
Address :	F302, Sumer Castel, Castle Mill Circles, Thane-400 601, Maharashtra, India
Date of Birth/Age :	08.06.1961
Date of Appointment :	23.03.1995
Name :	Mr. Krishnamoha Harnarayan Chandak
Designation :	Director
Address :	402, Pushpa Mangal CHS, LBS Road, Thane-400 601, Maharashtra, India
Date of Birth/Age :	14.08.1961
Date of Appointment :	23.03.1995
Name :	Mr. Rajesh Madan Rathi
Designation :	Director
Address :	A Kashganga-2, Flat No.62, Rabodi, Thane (West), Maharashtra, India
Date of Birth/Age :	01.10.1958
Date of Appointment :	23.03.1995

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Deviyani Dilip Ved	5982
Krishnamoha Harnarayan Chandak	2851
Rajesh Madan Rathi	2867
Total	11700

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, exporter and Wholesale Supplier of Adhesives, Industrial Paints, Thinners, Polyurethane Paints and Epoxy Paints.

Products :

Item Code No. (ITC Code)	320890
Product Description	Synthetic Enamel
Item Code No. (ITC Code)	291000
Product Description	Epoxy Lacquer

GENERAL INFORMATION

Bankers :

· The Thane Janata Sahakari Bank Limited, Main Branch, Madhumalti, V. S. Path, Jamli Naka, Charai, Thane-400 601, Maharashtra, India

· Car Loan

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From The Thane Janata Sahakari Bank Limited
Cash Credit (Secured by hypothecation of Book Debts, Stocks)	2.548	3.265
From TJSB Car Loan	0.027	0.282
From ICICI Bank (Car Loan)	0.000	0.012
Total	2.575	3.559

Banking Relations :	-
Auditors :
Name :	Singavi Oturkar and Kelkar Chartered Accountants
Address :	Nirvelli apartments, 1^st Floor, S. V. Road, Gokhale Road, Nupada, hane-400 6025, Maharashtra, India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
35000	Equity shares	Rs.100/- Each	Rs.3.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11700	Equity shares	Rs.100/- Each	Rs.1.170 Millions

Note: Out of which 4950 shares are issued for consideration other than cash

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		1.170	1.170	1.170
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		9.369	7.837	6.592
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		10.539	9.007	7.762
LOAN FUNDS
1] Secured Loans		2.575	3.559	4.109
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		2.575	3.559	4.109
DEFERRED TAX LIABILITIES		0.008	0.000	0.005
TOTAL		13.122	12.566	11.876
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.902	1.904	2.129
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.020	0.020	0.020
DEFERREX TAX ASSETS		0.000	0.059	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.121	2.368	2.986
	Sundry Debtors	20.998	18.824	20.881
	Cash & Bank Balances	1.011	0.305	0.159
	Other Current Assets	0.867	0.517	0.133
	Loans & Advances	0.877	2.248	0.775
Total Current Assets		26.874	24.262	24.934
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.326	8.944	11.536
	Other Current Liabilities	2.077	2.479	2.154
	Provisions	1.271	2.256	1.517
Total Current Liabilities		15.674	13.679	15.207
Net Current Assets		11.200	10.583	9.727
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		13.122	12.566	11.876

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	83.534	73.702	70.784
		Other Income	0.447	0.068	0.121
		TOTAL (A)	83.981	73.770	70.905
Less	EXPENSES
		Material Consumed	75.467	64.540
		Manufacturing Expenses	3.506	3.143
		Administrative and Selling Expenses	2.781	2.601	68.456
		Increase / Decrease in stock	(1.060)	0.233
		TOTAL (B)	80.694	70.517	68.456
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.287	3.253	NA
Less	FINANCIAL EXPENSES (D)		0.217	0.415	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.070	2.838	NA
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.250	0.391	NA
	PROFIT BEFORE TAX (E-F) (G)		2.820	2.447	2.449
Less	TAX (H)		0.977	0.791	NA
	PROFIT AFTER TAX (G-H) (I)		1.843	1.656	NA
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.099	6.021	NA
Less	APPROPRIATIONS
		Transfer to General Reserve	0.195	0.167	NA
		Dividend	0.351	0.351	NA
		Tax on Dividend	0.060	0.060	NA
	BALANCE CARRIED TO THE B/S		8.436	7.099	NA
	Earnings Per Share (Rs.)		166.05	-	-

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.19	2.24	3.45
Net Profit Margin (PBT/Sales)	(%)	3.38	3.32	3.46
Return on Total Assets (PBT/Total Assets}	(%)	9.80	9.35	9.05
Return on Investment (ROI) (PBT/Networth)		0.27	0.27	0.21
Debt Equity Ratio (Total Liability/Networth)		1.73	1.91	2.49
Current Ratio (Current Asset/Current Liability)		1.71	1.77	1.64

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Corporate identity number of the company	U24220MH1995PTC086732
Name of the company	GAMMA COATINGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Azad Nagar, Manpada, Thane-400 607, Maharashtra, India
This form is for	Creation of charge
Type of charge	Immovable Property
Particular of charge holder	The Thane Janata Sahakari Bank Limited, Main Branch, Madhumalti, V. S. path, Jamli Naka, Charai, Thane-400 601, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Record of mortgage by deposit of title deeds
Date of instrument Creating the charge	31.12.2010
Amount secured by the charge	Rs.1.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per bank rules Terms of Repayment 12 Months Margin 10% in FDR Extent and Operation of the charge The charge is created to cover letter of credit limit of Rs.1.000 Millions
Short particulars of the property charged	All piece and parcel of the land bearing Survey No. 80/14, situated at Kolshet, Thane Admg., on or about 1213.9 sq. Mtrs. Alongwith structures resting on the same.

Fixed Assets:

· Land and Building

· Factory Building

· Furniture and Fixtures

· Plant and Machinery

· Office Equipments

· Motor Car

· Computers

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.45.12
UK Pound	1	Rs.73.43
Euro	1	Rs.62.32

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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	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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.