MIRA INFORM REPORT

Report Date :

19.11.2011

IDENTIFICATION DETAILS

Name :	COATINGS AND COATINGS (INDIA) PRIVATE LIMITED
Registered Office :	J-55, Taloja, MIDC, Taloja, District Raigadh, Maharashtra,
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.09.1994
Com. Reg. No.:	11-081488
Capital Investment/ Paid-up Capital:	Rs. 0.477 million
CIN No.: [Company Identification No.]	U24220MH1994PTC081488
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Foundry Chemicals.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 76000
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 – 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

LOCATIONS

Registered Office :	J-55, Taloja, MIDC Taloja, District Raigadh, Panvel-410208, Maharashtra, India
E-Mail :	info@coatingsandcoatings.net.in
Website :	http://www.coatingsandcoatings.co.in/
Corporate Office :	104, Hill View Industrial Estate, 1^st Floor, L. B. S Marg, Amrut Nagar, Ghatkopar (West), Mumbai-400086, Maharashtra, India
Tel. No.:	91-22-25006894 / 98 / 99
Fax No.:	91-22-25006871
E-Mail :	info@coatingsandcoatings.co.in

DIRECTORS

(AS ON 30.09.2011)

Name :	Mr. Manish Kantilal Bhayani
Designation :	Director
Address :	2101-B, Sovereign, Hiranandani, Gardens, Pwai, Mumbai-400076, Maharashtra, India
Date of Birth/Age :	13.10.1963
Date of Appointment :	27.09.1994
DIN No. :	00738649
Name :	Mr. Darshak Bhayani
Designation :	Director
Address :	Block No. B-5, Paras C.H.S., Navroji Lane, Ghatkopar (West), Mumbai-400086, Maharashtra, India
Date of Birth/Age :	07.06.1972
Date of Appointment :	27.09.1994
DIN No. :	00739525

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Chhaya Manish Bhayani	3900
Darshak Kantilal Bhayani	4000
Indimati Jaswantbhai Upadhyaya	2000
Bhadresh M. Bhatt	1000
Pankaj Laxmidas Shah	1000
Geeta Dinesh Bhanushali	1000
Mahesh Ramji Bhanushali	1000
Nilesh Babulal Dhariya	1000
Ansuya Salish Bhanushali	1000
Dhimant Balwantrai Mehta	1000
Kanchan Mansuklal Parekh	1000
Bharat Mansukhlal Parekh	1000
Dinesh Dhirajlal Shah	1000
Hasmukh Parshottam Mehta	1000
Anilkumar Parshottam Mehta	1000
Hasumati Balwantrai Mehta	1000
Ashok Jamanbhai Pandya	1000
Mahesh Jamanbhai Pandya	1000
Satish Jamanbhai Pandya	1000
Manda Mahesh Pandya	1000

Equity Share Breakup

(AS ON 30.09.2011)

Category	Percentage
Directors or relatives of directors	10.27
Other top fifty shareholders	89.73
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Foundry Chemicals.
Products :	· Wood Coatings · Foundry Chemicals

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Foundry Chemicals	Kg.	2400	2107
Paints and Vernishes	Kg.	1000	880

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· The Saraswat Co-operative Bank Limited, SME Vikhroli Branch, Prabhat Bhavan, LBS Marg, Vikhroli (West), Mumbai-400079, Maharashtra, India

· HDFC Bank

· IDBI Bank

· Corporation Bank

Facilities :

(Rs. in millions)

Secured Loans	As on 31.03.2011	As on 31.03.2010
HDFC Car Loan (Secured against Hypothecation of Car)	2.121	1.076
The Saraswat Co-Operative Bank Limited-Term Loan (Secured against Plant and Machinery)	1.313	0.000
The Saraswat Co-Operative Bank Limited- Cash Credit (Secured against hypothecation of Stock and Debtors)	42.907	21.676
Total	46.341	22.752

(Rs. in millions)

Unsecured Loans	As on 31.03.2011	As on 31.03.2010
From Directors	2.467	4.551
From Relatives	4.475	11.812
From Shareholders	3.460	3.535
From Bank and Financial Institution (HDFC Bank)	(0.033)	0.619
Total	10.369	20.517

Banking Relations :	--
Auditors :
Name :	Jayesh Sangharajka and Company Chartered Accounatnt
Address :	405-408, Hind Rajasthan Centre, 95, D. S. Phalke Road, Dadar (East), Mumbai-400014, Maharashtra, India
Tel. No.:	91-22-40774600 / 40774606
Fax No.:	91-22-40774600 / 40774606
E-Mail :	jsandco@gmail.com
Associates/Subsidiaries :	· Malaychem Industries · Lens Services · M. K. Traders · Castezee Manufacturers

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Share	Rs.10/- each	Rs.5.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
47700	Equity Share	Rs.10/- each	Rs.0.477 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		0.477	0.477	0.477
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		18.561	12.817	8.963
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		19.038	13.294	9.440
LOAN FUNDS
1] Secured Loans		46.341	22.752	19.155
2] Unsecured Loans		10.369	20.517	18.437
TOTAL BORROWING		56.709	43.269	37.592
DEFERRED TAX LIABILITIES		0.525	0.339	0.295
TOTAL		76.273	56.902	47.327
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		19.512	11.980	11.161
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.624	0.624	0.624
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.813	11.584	16.868
	Sundry Debtors	56.262	42.975	27.685
	Cash & Bank Balances	2.425	2.417	1.402
	Other Current Assets	4.403	3.449	1.513
	Loans & Advances	0.427	0.423	0.389
Total Current Assets		81.330	60.848	47.857
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	21.467	13.514	11.173
	Other Current Liabilities	1.141	1.127	0.785
	Provisions	2.585	1.909	0.357
Total Current Liabilities		25.193	16.550	12.315
Net Current Assets		56.137	44.298	35.542
MISCELLANEOUS EXPENSES		0.000	0.000	0.0000
TOTAL		76.273	56.902	47.327

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	156.678	108.468	93.644
		Other Income	0.565	0.456	0.079
		TOTAL (A)	157.243	108.924	93.723
Less	EXPENSES
		Cost of Goods sold	122.520	84.673	77.312
		Manufacturing Expenses	2.717	2.260	1.290
		Employee Remuneration and Benefits	4.719	3.040	3.278
		Administrative and Other Expenses	2.543	2.154	1.768
		Selling and Distribution Expenses	9.598	6.145	4.775
		Prior Period Expenses	0.098	0.057	0.005
		TOTAL (B)	142.195	98.329	88.428
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.048	10.595	5.295
Less	FINANCIAL EXPENSES (D)		5.514	4.312	4.006
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.534	6.283	1.289
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.179	0.611	0.555
	PROFIT BEFORE TAX (E-F) (G)		8.355	5.672	0.734
Less	TAX (H)		2.611	1.818	0.420
	PROFIT AFTER TAX (G-H) (I)		5.744	3.854	0.313
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		11.707	7.853	7.540
	BALANCE CARRIED TO THE B/S		17.451	11.707	7.853
	IMPORTS
		Raw Materials	15.530	12.450	6.296
	TOTAL IMPORTS		15.530	12.450	6.296
	Earnings Per Share (Rs.)		120	81	7

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.65	3.54	0.33
Net Profit Margin (PBT/Sales)	(%)	5.33	5.23	0.78
Return on Total Assets (PBT/Total Assets}	(%)	8.28	7.79	1.25
Return on Investment (ROI) (PBT/Networth)		0.44	0.43	0.08
Debt Equity Ratio (Total Liability/Networth)		4.30	4.50	5.29
Current Ratio (Current Asset/Current Liability)		3.23	3.67	3.88

LOCAL AGENCY FURTHER INFORMATION

OPERATION:

The company has achieved a Turnover of Rs.156.678 millions in the financial year, which is 44.45% higher than the previous year. The company ahs earned net profit before tax of Rs.8.183 millions.

FORM 8:

Corporate identity number of the company	U24220MH1994PTC081488
Name of the company	COATINGS AND COATINGS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	J-55, Taloja, MIDC Taloja, District Raigadh, Panvel-410208, Maharashtra, India E-Mail Id: info@coatingsandcoatings.net.in
This form is for	Creation of charge
Type of charge	Book debts Movable property Floating charge
Particular of charge holder	The Saraswat Co-operative Bank Limited, SME Vikhroli Branch, Prabhat Bhavan, LBS Marg, Vikhroli (West), Mumbai-400079, Maharashtra, India E-Mail Id: njbhatia@rediffmail.com
Nature of instrument creating charge	Agreement of Hypothecation of Movable Property
Date of instrument Creating the charge	08.06.2011
Amount secured by the charge	Rs.8.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	a) Rate of Interest 16%p.a. or at such rate as maybe determined by the bank from time to time b) Terms of Repayment 3 months c) Margin Nil d) Extent and operation of the charge This is short term cash credit limit
Short Particulars of the property charged	i) Hypothecation of stock tangible movable property (both present and future) belonging to the borrower and lying and being at borrower place of business at ii) 104, Hill View Indl Estate Off LBS Marg Ghatkopar West Mumbai 400086 or whereverelse the same maybe. iii) Hypothecation of bookdebts, outstandings, monies receivable, claims and bills

FIXED ASSETS:

· Air Conditioner

· Computer

· Electrical Installation

· Electronic Balance

· Electronic Weighing Scale

· Factory Building

· Factory Equipment

· Fire Equipments

· Laboratory Equipment

· MIDC Plot

· MIDC Plot at Ambarnath

· Motor Car

· Office Equipment

· Plant and Machinery

COMPANY PROFILE:

Coatings and coatings (India) Private Limited., incorporated in September 1994, is promoted by the Bhayani Group of companies. The Group, founded in the 1930’s comprises of more than 12 companies and actively pursues the objective of imparting innovative methods of manufacturing various products such as specialized Chemicals used extensively by the foundry industry.

The company also manufactures a range of well-accepted Wood Coatings based on Melamine, Polyurethane and Polyester Molecules.

The company has manufacturing facilities in Taloja, Maharashtra and Bhavnagar in Gujrat logistically located to cater to the requirements of customers all over the country, with a well planned distribution cannel. It has also exported products through an export channel and is keen in expanding its business in the coming years.

Coatings and Coatings (India) Private Limited., has its corporate office located at Ghatkoper, situated in the heart of the city of Mumbai with its Chairman Mr. Kantilal Bhayani under whose technical, commercial acumen and guidance has given the company the impetus and growth to be financially and technologically progressive. The Managing Director is a trained chemical engineer and personally manages the Technology and Marketing Divisions of the company.

The company has a well knit set of technically sound dealers spread all over the country who are capable of resolving any technical or commercial problems that may arise with the customers. The company imparts training periodically for updating them technologically and making them capable to take on other products having synergy with the existing line of products

The company is envisaging an aggressive growth plan and is open to imports from major suppliers abroad who are interested in either a technical tie-up for marketing their products in India or under license to manufacture cum market their products in India.

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.51.35
UK Pound	1	Rs.80.97
Euro	1	Rs.69.26

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.