MIRA INFORM REPORT

Report Date :

21.09.2011

IDENTIFICATION DETAILS

Name :	HIGH GRADE INDUSTRIES (INDIA) PRIVATE LIMITED
Registered Office :	A – 510-513, Crystal Plaza, New Link Road, Andheri [West], Mumbai – 400058, Maharashtra
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	08.09.2000
Com. Reg. No.:	11-128609
Capital Investment / Paid-up Capital :	Rs.1.883 Millions
CIN No.: [Company Identification No.]	U24110MH2000PTC128609
IEC No.:	0303052716
TAN No.: [Tax Deduction & Collection Account No.]	MUMH05715D
PAN No.: [Permanent Account No.]	AABCH1712Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Master Batches for Antioxidants, Stabilizer, DDFE Kit etc.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 730000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial position of the company appears to be sound. Trade relations are fair. Business is active. Payments are reported to regular and as per commitments. The company can be considered good for normal 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 DECLINED BY

Name :	Mr. Satyendra
Designation :	Accounts Department
Contact No.:	91-9819863404
Date :	20.09.2011

LOCATIONS

Registered Office :	A – 510-513, Crystal Plaza, New Link Road, Andheri [West], Mumbai – 400058, Maharashtra, India
Tel. No.:	91-22-26734461/ 517/ 612/ 40775076
Mobile No.:	91-9819863404 [Mr. Satyendra]
Fax No.:	91-22-26734619
E-Mail :	nkjco@rediffmail.com purchase@highgrade.in highgrade_mum@rediffmail.com kohli@highgrade.in solaris_mumbai@rediffmail.com finance@highgrade.com
Website :	http://www.highgrade.in
Area :	2000 Sq. fts.
Location :	Owned
Factory	Survey No. 61/2, Plot No. 13, Near Zandu Pharma, Village Masar, Silvassa – 396230, India
Tel. No.:	91-260-6531810
Fax No.:	91-22 26734619
Area :	10000 Sq. mts.
Location :	Owned
Branch Office 1 :	102, Andheri Universal Industrial Premises, J. P. Road, Andheri (West), Mumbai – 400058, Maharashtra, India
Tel No.:	91-22-40775076
Fax No.:	91-22-26734619
Area :	500 sq. fts
Location :	Owned
Branch Office 2 :	3734, (East) Dory Circle, Hanhover Park, IL – 60133, U.S.A.
Tel No.:	1-630-6708915
Fax No.:	1-630-7361182

DIRECTORS

(AS ON 30.09.2010)

Name :

Mr. Lachu C. Malkani

Designation :

Director

Address :

Plot No. 135, House 6, Hindusthan Co-operative Society, 25^th Road, Bandra, Mumbai 400050, Maharashtra, India

Date of Birth/Age :

28.08.1949

Qualification :

B.E. Mech.

Date of Appointment :

26.12.2000

DIN No.:

01185284

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	U24110MH2000PTC128609	HIGH GRADE INDUSTRIES (INDIA) PRIVATE LIMITED	Director	26-12-00	26-12-00	Active	NO

Name :

Mrs. Harleen Kohli

Designation :

Director

Address :

1, Imur Co-operative Housing Society, J. P. Road, Andheri [West], Mumbai 400053, Maharashtra, India

Date of Birth/Age :

20.09.1962

Qualification :

MSC Biology, M. Phill (Mumbai University)

Date of Appointment :

01.10.2003

DIN No.:

02023694

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	U65990MH1996PTC098254	BELIEF IMPEX PRIVATE LIMITED	Director	02-05-00	02-05-00	Active	NO
2	U24110MH2000PTC128609	HIGH GRADE INDUSTRIES (INDIA) PRIVATE LIMITED	Director	01-10-03	01-10-03	Active	NO

Name :

Mr. Gurnamsingh Bhagatsingh Kohli

Designation :

Director

Address :

Imur Society, Flat No. 1, Ground Floor, Sahakar Road, Andheri [West], Mumbai 400053, Maharashtra, India

Date of Birth/Age :

13.05.1957

Qualification :

B.E. Chem from M.S. University and MBA from Mumbai

Date of Appointment :

01.01.2008

Experience :

30 years

DIN No.:

01485859

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	U65990MH1996PTC098254	BELIEF IMPEX PRIVATE LIMITED	Director	29-04-96	29-04-96	Active	NO
2	U24110MH2000PTC128609	HIGH GRADE INDUSTRIES (INDIA) PRIVATE LIMITED	Managing director	01-01-08	01-01-08	Active	NO
3	U65993MH1996PTC101034	APPEAL FINVEST PRIVATE LIMITED	Director	01-10-09	01-10-09	Active	NO

KEY EXECUTIVES

Name :	Mr. Satyendra
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Harikishan Sawhney	1000
Harleen Kohli	93550
Belief Impex Private Limited, India	93750
Total	188300

(AS ON 30.09.2010)

Category	Percentage
Bodies corporate	49.00
Directors or relatives of the Directors	51.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Master Batches for Antioxidants, Stabilizer, DDFE Kit etc.
Imports :
Products :	· Phosphites · Alkyl Phenols · Speciality Chemicals
Countries :	· China · Taiwan
Terms :
Selling :	L/C, Credit (90 days)
Purchasing :	L/C and Credit

PRODUCTION STATUS (AS ON 31.03.2009)

Particulars	Installed Capacity	Actual Production
Anti Oxidants / Stabilizers / Speciality Formulations	3900 TPA	1000 TPA
DDFU Kits	30000 TPA	10000 TPA

GENERAL INFORMATION

No. of Employees :

25 (Approximately)

Bankers :

· HDFC Bank

Andheri [West] Branch, Mumbai, Maharashtra, India

· Indian Bank

(100% PSU Owned by Government of India), Oshiwara Branch, Lokhandwala Market, Andheri (West), Mumbai – 400053, Maharashtra, India

· Punjab National Bank

Facilities :

Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Directors	3.500	9.683
Inter Corporate Deposits	12.812	14.512
Total	16.312	24.195

Banking Relations :	--
Auditors :
Name :	N. K. J. and Company Chartered Accountants
Address :	A – 402, Rajeshwari Accord, Teli Gali Cross Road, Andheri [East], Mumbai 400069, Maharashtra, India
Tel No.:	91-22-26827879 / 26827969
Fax No.:	91-22-26827879 / 26827962
E-Mail :	nkjca@rediffmail.com
Associates :	· Solaris Chemical Corporation Unit of Appeal Finvest Private Limited Address : A/510-513, Crystal Plaza, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India Line of Business : Distributors of ICL-IP (Supresta LLC) FRF · Belief Impex Private Limited Address: A/510-513, Crystal Plaza, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India Line of Business: Investment in Stocks / Bonds / Real Estate / Finance. · PCAS India

CAPITAL STRUCTURE

AS ON 30.09.2009

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
188300	Equity Shares	Rs.10/- each	Rs.1.883 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		1.883	1.883	1.883
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		180.232	132.576	103.616
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		182.115	134.459	105.499
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		16.312	24.195	18.012
TOTAL BORROWING		16.312	24.195	18.012
DEFERRED TAX LIABILITIES		0.406	0.045	0.000
TOTAL		198.833	158.699	123.511
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.885	20.232	19.865
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		32.942	10.349	5.039
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	61.574	52.368	40.065
	Sundry Debtors	62.117	53.989	29.240
	Cash & Bank Balances	6.770	8.786	12.068
	Other Current Assets	0.000	0.000	29.761
	Loans & Advances	37.298	30.756	0.000
Total Current Assets		167.759	145.899	111.134
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	3.529	5.408	1.721
	Other Current Liabilities	0.767	0.335
	Provisions	19.457	12.038	10.806
Total Current Liabilities		23.753	17.781	12.527
Net Current Assets		144.006	128.118	98.607
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		198.833	158.699	123.511

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		TOTAL	447.132	322.932	244.846
Less	EXPENSES
		TOTAL	379.412	286.850	203.324
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		67.720	36.082	41.522
Less/ Add	DEPRECIATION/ AMORTISATION		3.735	3.211	2.603
	PROFIT BEFORE TAX		63.985	32.871	38.919
Less	TAX		15.961	3.907	4.510
	PROFIT AFTER TAX		48.024	28.970	34.409
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		127.461	98.501	64.132
Less/ Add	Income Tax Earlier Year		0.368	0.010	0.040
	BALANCE CARRIED TO THE B/S		175.117	127.461	98.501
	Earnings Per Share (Rs.)		253.08	153.80	182.52

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	10.74	8.97	14.05
Return on Total Assets (PBT/Total Assets}	(%)	33.74	19.79	29.71
Return on Investment (ROI) (PBT/Networth)		0.35	0.24	0.37
Debt Equity Ratio (Total Liability/Networth)		0.22	0.31	0.29
Current Ratio (Current Asset/Current Liability)		7.06	8.21	8.87

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2010	31.03.2009	31.03.2008
	(Rs. In Millions)
Sundry Creditors	3.529	5.408	NA

NOTE:

The Registered office of the company has been shifted from 904, Building No. 13, Indra Darshan Phase II, Shree Swamy Samarth Nagar, Mumbai 400053, Maharashtra, India to A – 510/513, Crystal Plaza, New Link Road, Andheri [West], Mumbai 400058, Maharashtra, India w.e.f. 01.01.2008.

FIXED ASSETS:

Mumbai

· Furniture and Fixtures

· Computers

· Air Conditioner

· Fax Machine

· Electric Fitting

· Office Equipments

· Motor Car

· Telephone

Silvassa

· Air Conditioner

· Land

· Plant and Machinery

· Mould

· Twin Saw Estruder

· Weiging Scale

· Laboratory Equipments

· Borewell

· Building

· Building Shed

· Electrical Fitting

· Motor Bike

· Computers

· Other Equipments

· Generator (DG)

· Motor Car

· 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.48.22
UK Pound	1	Rs.75.63
Euro	1	Rs.65.65

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.