MIRA INFORM REPORT

Report Date :

21.05.2012

IDENTIFICATION DETAILS

Name :	CHEMILAC PAINTS PRIVATE LIMITED
Registered Office :	153, Flyover Market Defense Colony, New Delhi-110024
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.06.1990
Com. Reg. No.:	55-040498
Capital Investment / Paid-up Capital :	Rs. 1.873 Millions
CIN No.: [Company Identification No.]	U74899DL1990PTC040498
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter, Importer and Trader of Paints / Thinners and Lacquers
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 20000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject was established as a proprietory concern in the name of “The Chemicals of India” and later on it got converted into private limited. It is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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

INFORMATION PARTED BY

Name :	Mr. Pusker
Designation :	Manager
Contact No.:	91-129-2277382
Date :	14.05.2012

LOCATIONS

Registered Office :	153, Flyover Market Defense Colony, New Delhi-110024, India
Tel. No.:	91-11-4698364
Fax No.:	Not Available
E-Mail :	info@chemilac.com singlasatish@gmail.com
Website :	www.chemilac.com
Factory :	Plot No 36, Sector 27C, Faridabad-121003, Haryana, India
Tel. No.:	91-129-2277382 / 2277392
Fax No.:	91-129-2271607
Location :	Owned

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Tarun Sindwani
Designation :	Director
Address :	C 5/4, Safdarjung Development Area, New Delhi-110016, India
Date of Birth/Age :	29.08.1980
Date of Appointment :	01.07.2005
DIN No.:	00838232
Name :	Mrs. Veena Sindwani
Designation :	Director
Address :	C 5/4, Safdarjung Development Area, New Delhi-110016, India
Date of Birth/Age :	15.03.1956
Date of Appointment :	13.06.1990
DIN No.:	00838279
Name :	Mr. Harbans Lal Sindwani
Designation :	Chairman
Address :	C 5/4, Safdarjung Development Area, New Delhi-110016, India
Date of Birth/Age :	03.12.1943
Date of Appointment :	13.06.1990
Date of Cessation :	29.12.2011
DIN No.:	00838094

Other Directorship:

S.No.	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	CHEMILAC PAINTS PRIVATE LIMITED	Director	13-06-90	13-06-90	29-12-11	Active	NO
2	INDIAN PAINT AND COATING ASSOCIATON	Director	22-08-03	22-08-03	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Pusker
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Harbans Lal Sindwani	3891
R.C.Sharma	1
Harbans Lal Sindwani	1
Satish Dhawan	10
Dwarka Nath Bhutani	750
Tarun Sindwani	100
Mulakh Raj Batra	3970
Pramod Dhawan	900
Deepak Batra	988
Shashi Batra	1511
N.K. Malhotra	5200
Arvind Batra	1400
Ruchi Sindwani	10
TOTAL	18732

AS ON 22.12.2011

Names of Allottee	No. of Shares
Tarun Sindwani	12500
Veena Sindwani	8500
TOTAL	21000

AS ON 30.09.2011

Equity Shares Break Up	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter, Importer and Trader of Paints / Thinners and Lacquers
Terms :
Selling :	Cash and Credit (30 Days)
Purchasing :	Cash and Credit (30 Days)

GENERAL INFORMATION

Customers :

· Wholesales

· Retailers

· OEM’s

· Others

No. of Employees :

40 (Approximately)

Bankers :

· State Bank of Patiala, Plot No.1, Sector 11, Faridabad-121006, Haryana, India

· HDFC Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
HDFC (Against hypothecation of Car)	0.302	0.711
State Bank of Patiala CC-74 (Against hypothecation of Stock)	4.530	2.401
SBP Loan 65073135281	0.463	0.568
HDFC Car Loan Jazz -16508161	0.431	0.000
HDFC Loan A/c No.-16931442 (Generator)	0.337	0.000
Total	6.063	3.680
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
FROM DIRECTORS
1. Sh. H.L. Sindwani	1.796	1.396
2. Tarun Sindwani	1.437	1.437
3. Smt. Veena Sindwani	1.298	1.168
FROM SHARE HOLDERS
1. H.V. and Company	1.074	1.074
2. Ruchi Sindwani	0.300	0.300
Total	5.905	5.375

Banking Relations :	--
Auditors :
Name :	Satish Singla and Company Chartered Accountant
Address :	1^st Floor, SCO 107, Sector 16, Faridabad-121002, Haryana, India
Pan No.:	AEZPS2994A

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
40000	Equity Shares	Rs.100/- each	Rs. 4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18732	Equity Shares	Rs.100/- each	Rs. 1.873 Millions

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
40000	Equity Shares	Rs.100/- each	Rs. 4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39732	Equity Shares	Rs.100/- each	Rs. 3.973 Millions

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		1.873	1.873	1.873
2] Share Application Money		2.169	2.169	2.169
3] Reserves & Surplus		1.202	0.872	0.572
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5.244	4.914	4.614
LOAN FUNDS
1] Secured Loans		6.063	3.680	3.721
2] Unsecured Loans		5.905	5.375	5.375
TOTAL BORROWING		11.968	9.055	9.096
DEFERRED TAX LIABILITIES		0.168	0.156	0.097
TOTAL		17.380	14.125	13.807
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.456	7.422	6.366
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.795	6.527	5.464
	Sundry Debtors	15.409	15.528	11.896
	Cash & Bank Balances	0.924	0.760	0.508
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.820	0.758	1.344
Total Current Assets		25.948	23.573	19.212
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.264	15.976	10.984
	Other Current Liabilities	0.721	0.894	0.787
	Provisions	0.039	0.000	0.000
Total Current Liabilities		16.024	16.870	11.771
Net Current Assets		9.924	6.703	7.441
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		17.380	14.125	13.807

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	58.277	53.468	44.839
		Other Income	1.887	0.036	0.074
		TOTAL (A)	60.164	53.504	44.913
Less	EXPENSES
		Manufacturing Expenses	49.599	44.329	37.721
		Administrative Expenses	8.039	6.958	5.642
		Decrease / (Increase) in Closing Stock	0.000	0.000	(0.385)
		TOTAL (B)	57.638	51.287	42.978
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.526	2.217	1.935
Less	FINANCIAL EXPENSES (D)		0.782	0.597	0.515
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.744	1.620	1.420
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.264	1.158	0.966
	PROFIT BEFORE TAX (E-F) (G)		0.480	0.462	0.454
Less	TAX (H)		0.150	0.163	0.230
	PROFIT AFTER TAX (G-H) (I)		0.330	0.299	0.224
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.871	0.572	0.348
	BALANCE CARRIED TO THE B/S		1.201	0.871	0.572
	Earnings Per Share (Rs.)		17.63	15.97	11.95

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.55	0.56	0.50
Net Profit Margin (PBT/Sales)	(%)	0.82	0.86	1.01
Return on Total Assets (PBT/Total Assets}	(%)	1.44	1.49	1.77
Return on Investment (ROI) (PBT/Networth)		0.09	0.09	0.10
Debt Equity Ratio (Total Liability/Networth)		5.37	5.31	4.54
Current Ratio (Current Asset/Current Liability)		1.62	1.40	1.63

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1. Year of Establishment	Yes
2. Locality of the firm	Yes
3. Constructions of the firm	Yes
4. Premises details	No
5. Type of Business	Yes
6. Line of Business	Yes
7. Promoter’s background	Yes
8. No. of Employees	Yes
9. Name of person contacted	Yes
10. Designation of contact person	Yes
11. Turnover of firm for last three years	Yes
12. Profitability for last three years	Yes
13. Reasons for variation <> 20%	------
14. Estimation for coming financial year	No
15. Capital in the business	Yes
16. Details of sister concerns	No
17. Major suppliers	No
18. Major customers	No
19. Payments terms	Yes
20. Export / Import details	No
21. Market information	------
22. Litigations that the firm / promoter involved	------
23. Banking Details	Yes
24. Banking facility details	Yes
25. Conduct of the banking account	------
26. Buyer visit details	------
27. Financials, if provided	Yes
28. Incorporation details, if applicable	Yes
29. Last accounts filed at ROC	Yes
30. Major Shareholders, if available	Yes

PROFITABILITY:

The Company has earned a profit of Rs. 0.330 Million during the year after charging depreciation of Rs. 1.264 Millions against profit of Rs. 0.299 Million and depreciation of Rs. 1.158 Millions in the previous year.

FORM 8

Corporate identity number of the company	U74899DL1990PTC040498
Name of the company	CHEMILAC PAINTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	153, Flyover Market Defense Colony, New Delhi-110024, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	State Bank of Patiala, Plot No.1, Sector 11, Faridabad-121006, Haryana, India
Nature of instrument creating charge	Agreement of Loan Cum Hypothecation
Date of instrument Creating the charge	16.03.2012
Amount secured by the charge	Rs. 9.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest on Cash Credit (H) limit shall now be charged @ 4.00 % over base rate, presently 14.50% p. a. with monthly rests or at such other rates as may be prescribed by the bank from time to time. Terms of repayment Payable on demand. Margin As may be prescribed by the bank from time to time. Extent and operation of the charge 100 percent. Other The said charge is to secure an enhanced Cash Credit (H) limit of Rs.9.000 Millions granted to the Chemicals of India an Unit of Chemilac Paints Private Limited.
Short particulars of the property charged (Including location of the property)	Hypothecation of stocks, book debts and other current assets both present and future.
Charge identification number of the charge to be modified	90046534
Particulars of the present modification	The Cash Credit (H) limit stands enhanced to Rs.9.000 Millions. Interest shall now be charged @ 4.00 % over base rate, presently 14.50 % p. a. with monthly rests or at such other rates as may be prescribed by the bank from time to time. Other terms and conditions remained the same.

TRADE REFRENCES

· Tata Motors Limited

· Escorts Limited

· Bharat Electronics Limited

· Controls and Switchgears Company Limited

· Havells Group of Industries

· Bentex Group of Industries

· Capital Powers Limited

· Tex Corp Limited

· Central Electronics Limited

FIXED ASSETS

· Building

· Plant and Machinery

· Office Equipment

· Car

· Electrical Installation

· Generator

· Scooter

· CC TV Camera

· Furniture and Fixture

· Fire Exenguisher

· Cycle

· Computer

· Water Cooler

· Lab Equipment

· Tea and Coffee Machine

· Telephone Instrument and Mobile

· Computer Printer

· Air Conditioner

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. 54.87
UK Pound	1	Rs. 86.46
Euro	1	Rs. 69.48

INFORMATION DETAILS

Information Gathered by :	DPT
Report Prepared by :	--

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		29

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.