MIRA INFORM REPORT

Report Date :

04.03.2011

Note : The correct name of the company is HEERU PAINTS CONTRACTORS PRIVATE LIMITED.

IDENTIFICATION DETAILS

Name :	HEERU PAINTS CONTRACTORS PRIVATE LIMITED
Registered Office :	A/602, Alkapuri Arcader, R. C. Dutt Road, Baroda-390005, Gujarat.
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	21.04.1997
Com. Reg. No.:	11-032136
CIN No.: [Company Identification No.]	U36998GJ1997PTC032136
TAN No.: [Tax Deduction & Collection Account No.]	BRDH00609A
PAN No.: [Permanent Account No.]	AAACH4842E
Legal Form :	Private Limited Liability Company.
Line of Business :	The company is engaged in the business of providing industrial coating and corrosion solutions in varied sectors of industries.

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 93000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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 :	A/602, Alkapuri Arcader, R. C. Dutt Road, Baroda-390005, Gujarat, India
Tel. No.:	91-265-2359054, 2359886
Fax No.:	91-265-2359885
E-Mail :	info@heerupaints.com
Website :	www.heerupaints.com

DIRECTORS

As On : 27.11.2010

Name :	Mr. Vasantrai Girishbhai Katkoria
Designation :	Director
Address :	B-42, Urmi Society, Girikandra Flats, Productivity Road, Vadodara-390007, Gujarat, India
Date of Birth/Age :	13.06.1955
Date of Appointment :	21.04.1997
Name :	Mrs. Girishbhai Tarulata Katkoria
Designation :	Director
Address :	B-42, Urmi Society, Girikandra Flats, Productivity Road, Vadodara-390007, Gujarat, India
Date of Birth/Age :	30.07.1960
Date of Appointment :	21.04.1997
Name :	Mr. Girishbhai Rushabh Katkoria
Designation :	Director
Address :	B-42, Urmi Society, Girikandra Flats, Productivity Road, Vadodara-390007, Gujarat, India
Date of Birth/Age :	21.11.1984
Date of Appointment :	01.08.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.11.2010

Names of Shareholders	No. of Shares
Mr. Vasantrai Girishbhai Katkoria	200000
Mrs. Girishbhai Tarulata Katkoria	27500
Mr. Girishbhai Rushabh Katkoria	22500
Total	250000

AS ON 25.01.2010

Names of Allottees	No. of Shares
Mr. Girish Vasantrai Katkoria	200000
Mrs. Tarulata Girishbhai Katkoria	27500
Mr. Rushabh Girishbhai Katkoria	22500
Total	250000

AS ON 04.12.2010

Names of Allottees	No. of Shares
Mr. Girish Vasantrai Katkoria	590000
Mrs. Tarulata Girishbhai Katkoria	80000
Mr. Rushabh Girishbhai Katkoria	80000
Total	750000

AS ON 27.11.2010

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

BUSINESS DETAILS

Line of Business :

The company is engaged in the business of providing industrial coating and corrosion solutions in varied sectors of industries.

GENERAL INFORMATION

Customers :

· Aditya Birla Group

· Bharat Petroleum

· Adani Group

· Aban

· B and R

· India Oil

· Thermax

· Thermax

· Tata

· Tot EP

· Doosan

· Tata Chemicals

· NTPC

Bankers :

v Union Bank of India, Sayajiganj Branch, Union Bank Bhavan, Sayajiganj, Vadodara-390005, Gujarat, India

v HDFC Bank

Facilities :

SECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Union Bank of India - Cash Credit (A/c. No. 310605010077516) [ Secured against the hypothecation of Stock and Book Debts ]	10.474	12.389
Union Bank of India - Overdraft (A/c. No. 310604010018056) [ Secured against FDR ]	1.643	1.663
Union Bank of India - Term Loan (A/c. No. 310606390010012/14) [ Secured against hypothecation of Machinery ]	0.346	0.682
Union Bank of India - Term Loan (A/c. No. 310606110020004) [ Secured against hypothecation of ABM ]	5.909	0.000
Union Bank of India - Term Loan (A/c. No. 310606310000002) [ Secured against hypothecation of Machinery]	3.786	0.000
HDFC - Vehicle Loan [ Secured against Motor Car - Toyoto - GJ6 CB 2582 ]	0.500	0.220
HDFC - Vehicle Loan [ Secured against Utility Vehicle - Tata GJ6 W 9628 ]	0.346	0.000
Kotak Mahindra Prime Limited - Vehicle Loan [ Secured against Wagon R ]	0.434	0.000
Kotak Mahindra – Vehicle Loan [ Secured against King Cab ]	0.018	0.125
Total	23.456	15.079
UNSECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Directors, Relatives & Share Holders	1.903	0.150
From Banks / Financial Institutions	1.049	0.000
Total	2.952	0.150

Banking Relations :	--
Auditors :
Name :	Viral K. Shah and Associates Chartered Accountant
Address :	104, Antrix Complex, Opposite World Trade Centre, Sayajigunj, Vadodara-390005, Gujarat, India

CAPITAL STRUCTURE

As On : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 10/- each	Rs. 5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 10/- each	Rs. 5.000 millions

Note : Out of which 2,50,000 shares fully paid-up and 2,50,000 shares by Bonus Issue in 2009-10 in 1:1 ratio to its existing share holders as on record date 25th Jan 2010 by way of Capitalization of Reserves.

As On : 27.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs. 10/- each	Rs. 15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 10/- each	Rs. 10.000 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		5.000	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		18.462	13.412	9.417
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		23.462	13.512	9.517
LOAN FUNDS
1] Secured Loans		23.456	15.079	11.304
2] Unsecured Loans		2.952	0.150	0.000
TOTAL BORROWING		26.408	15.229	11.304
DEFERRED TAX LIABILITIES		2.488	1.097	0.611
TOTAL		52.358	29.838	21.432
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		48.618	26.272	15.718
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.224	0.224	0.224
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.900	3.369	4.111
	Sundry Debtors	30.608	21.812	23.304
	Cash & Bank Balances	5.587	7.453	4.872
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	19.647	13.402	9.325
Total Current Assets		59.742	46.036	41.612
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	42.318	33.510	30.899
	Other Current Liabilities	11.757	7.516	3.068
	Provisions	2.151	1.668	2.155
Total Current Liabilities		56.226	42.694	36.122
Net Current Assets		3.516	3.342	5.490
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		52.358	29.838	21.432

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	156.291	98.317	85.404
		Other Income	0.482	0.309	0.478
		TOTAL (A)	156.773	98.626	85.882
Less	EXPENSES
		Cost of Materials	61.978	46.040	39.756
		Direct Expenses	34.284	15.854	27.015
		Employees Remuneration	33.898	21.525	9.349
		Selling and Distribution Expenses	9.986	5.452	4.390
		Preliminary Expenses Written Off	0.000	0.000	0.007
		TOTAL (B)	140.146	88.871	80.517
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		16.627	9.755	5.365
Less	FINANCIAL EXPENSES (D)		3.053	2.190	1.416
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13.574	7.565	3.949
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.554	1.451	1.050
	PROFIT BEFORE TAX (E-F) (G)		11.020	6.114	2.899
Less	TAX (H)		3.471	2.119	1.094
	PROFIT AFTER TAX (G-H) (I)		7.549	3.995	1.805
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		13.412	9.417	7.612
Less	APPROPRIATIONS
		Transfer to General Reserve	7.500	0.000	0.000
	BALANCE CARRIED TO THE B/S		13.461	13.412	9.417
	Earnings Per Share (Rs.)		69.49	399.56	180.46

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.82	4.05	2.10
Net Profit Margin (PBT/Sales)	(%)	7.05	6.22	3.39
Return on Total Assets (PBT/Total Assets}	(%)	10.17	8.45	5.06
Return on Investment (ROI) (PBT/Networth)		0.47	0.45	0.30
Debt Equity Ratio (Total Liability/Networth)		3.63	4.37	5.05
Current Ratio (Current Asset/Current Liability)		1.06	1.08	1.15

LOCAL AGENCY FURTHER INFORMATION

FORM 8

Corporate identity number of the company	U36998GJ1997PTC032136
Name of the company	HEERU PAINTS CONTRACTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	A/602, Alkapuri Arcader, R. C. Dutt Road, Baroda-390005, Gujarat, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Union Bank of India, Sayajiganj Branch, Union Bank Bhavan, Sayajiganj, Vadodara-390005, Gujarat, India
Nature of instrument creating charge	Supplementary Deed To Sd-20, Hypothecation Deed
Date of instrument Creating the charge	23.12.2010
Amount secured by the charge	Rs.68.364
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Cc - hypothecation and WCTL - br+4.00% min. 12.50%, Tl ii and iii - BR + 4.75% min. 13.25% Terms of repayment WC - On Demand, Tl - 60 Monthly Installments Margin CC - Stock - 25%, BD - 50%, WCTL - 25%, TL - II and III - 25%, L/G - 25% Extent and operation of the charge Hypothecation of fully paid stocks, book debts and plant and machinery lying and situated at A/603, A/604 and A/605, a wing, alkapuri arcade, R C Dutt road, Alkapuri, Vadodara
Short particulars of the property charged (Including location of the property)	Hypothecation of fully paid stocks, book debts and plant and machinery lying and situated at A/603, A/604 and A/605, a wing, Alkapuri arcade, R C Dutt road, Alkapuri, Vadodara
Charge identification number of the charge to be modified	90110165
Date of instrument modifying the charge	09.04.2010
Particulars of the present modification	By this execution the charge extended to cover revised credit facilities from rs.55.243 millions to Rs.68.364 millions

FIXED ASSETS

· Air Conditioner

· Car

· Computer

· Furniture and Fixtures

· Office Building

· Office Equipments

· Plant and Machinery

· Scooters

· Site Equipments

· Temporary Structure

WEB SIDE DETAILS

PROFILE

Subject has been in business since 1982. In their glorious existence of more than two decades, they have provided extraordinary services to diverse industries, primarily directed towards heavy manufacturing, power generation, petrochemical, water treatment, Pharmaceutical, Jetty, LNG Plants and waste treatment industries where anti corrosive coating treatments are given the highest priority.

Today they are recognized as a single source contractor responsible for painting, sand blasting, wet blasting, tank linings and lead abatement projects.

Subject Are Members of the Coveted NACE International, India Section.

They have the experience, specialized equipment and one of the most qualified work force in the Industry. They have established ourselves as a name synonymous to world class quality, price competitive, commitment to delivery schedules, with safety being their first priority. They are expert in all the areas of industrial painting market and their resources allow them to take on contracts of any size and complexity.

Their strong bond with their customers is reflected in their finances which is climbing up the ladder year after year. Providing a high standard of friendly, customer service has always been their focus and by continuing in this direction, they can only get stronger.

The only company in India who has carried out largest sub-structure Epoxy painting work.

The largest single project contract execution for epoxy 80 tonnes and FRP wrap 4500 m2 to the damaged concrete structure due to 2001 massive earthquake at IFFCO, Kandla for M/s. Simplex Concrete Limited in record span of 90 days.

FUTURE PLANS

Consistent development is the way of life for subject. They have a dedicated product and process development team consisting of well experienced professionals who are well versed with the industries' requirements and strive to provide the most innovative process to their clients.

Their processes match international standards and developed as per customer requirement. Their sophisticated R and D facilities have enabled them to develop processes with competitive specifications, faster development and diversification.

The consistent development procedures have improved the quality of their processes, thereby providing better value to their customers. It has also enabled them to explore new markets and new customers.

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.44.96
UK Pound	1	Rs.73.37
Euro	1	Rs.62.33

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		49

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.