MIRA INFORM REPORT

Report Date :

27.11.2012

IDENTIFICATION DETAILS

Name :	ADMARK POLYCOATS PRIVATE LIMITED (w.e.f. 06.09.2006)
Formerly Known As :	ADMARC POLYCOATS PRIVATE LIMITED
Registered Office :	Survey No.207, Village - Luna, Taluka: Padra, District: Vadodara, Vadodara – 391 440, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.07.2002
Com. Reg. No.:	04-040987
Capital Investment / Paid-up Capital :	Rs.10.000 millions
CIN No.: [Company Identification No.]	U24224GJ2002PTC040987
TAN No.: [Tax Deduction & Collection Account No.]	BRDA00820B
PAN No.: [Permanent Account No.]	AADCA7427K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Epoxy - hardeners viz. Phenalkamines and its Adducts.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 518000
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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	FITCH RATING
Rating	BB LONG TERM
Rating Explanation	Ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists which supports the servicing of financial commitments.
Date	31.03.2012

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office/ Factory :	Survey No.207, Village - Luna, Taluka: Padra, District: Vadodara, Vadodara – 391 440, Gujarat, India
Tel. No.:	91-2662-221586
Fax No.:	91-2662-221587
E-Mail :	paresh@admarkpolycoats.com info@admarkpolycoats.com
Website :	http://www.admarkpolycoats.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Bharat Punjalal Chokshi

Designation :

Director

Address :

22, Shanti Nagar Society, Dinesh Mill Road, Akota, Vadodara – 390 020, Gujarat, India

Date of Birth/Age :

08.05.1958

Date of Appointment :

22.07.2002

DIN No.:

00111725

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	U74999GJ1988PTC010350	Grand Polycoats Company Private Limited	Director	10-02-88	10-02-88	Active	NO
2	U24224GJ2002PTC040987	Admark Polycoats Private Limited	Director	22-07-02	22-07-02	Active	NO
3	U25200GJ2010PTC062731	Nanovation Products Private Limited	Additional director	27-11-10	27-11-10	Active	NO

Name :

Ms. Anita Bharat Chokshi

Designation :

Director

Address :

22 A, Shanti Nagar Society, Dinesh Mill Road, Akota, Vadodara – 390 020, Gujarat, India

Date of Birth/Age :

20.11.1961

Date of Appointment :

15.07.2007

DIN No.:

01654486

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	U74999GJ1988PTC010350	Grand Polycoats Company Private Limited	Director	10-02-88	10-02-88	Active	NO
2	U24224GJ2002PTC040987	Admark Polycoats Private Limited	Director	15-07-07	15-07-07	Active	NO

Name :

Kirtikumar Narayan Aras

Designation :

Additional Director

Address :

3/151, Shrikrishna Darshan, Garodia Nagar, Ghatkopar (East), Mumbai – 400 077, Maharashtra, India

Date of Birth/Age :

29.07.1939

Date of Appointment :

31.07.2009

DIN No.:

02659069

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Bharat Chokshi and Family Trust	709100
Aditi Bharat Chokshi	50000
Amishi Bharat Chokshi	50000
Ankur Bharat Chokshi	190900
Total	1000000

As on 30.09.2011

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

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Epoxy - hardeners viz. Phenalkamines and its Adducts.
Products :	v Epoxy Hardener v Phenalkamines v Phenalkamine - Epoxy Adducts v Phenalkamides v Mannich Bases v Epoxy Adducts of Mannich Bases v Polyamides v Polyamide - Epoxy Adducts v Polyamines v Polyamine Adducts

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Epoxy Hardener	M.T.	N.A.	7000	5165

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

v Union Bank of India, Sayajigunj Branch, Union Bank Bhavan, Sayajigunj, Vadodara – 390 005, Gujarat, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Working Capital Loan
Packing Credit Facility from Union Bank of India	13.757	5.727
FBP Facility from Union Bank (Above loans are Secured by way of first charge of immovable properties of the company, Inventories, Export Documents and personal guarantee of Directors)	6.305	0.000
Loan from Union Bank of India against Hypothecation of Vehicle	0.000	2.405
Total	20.062	8.132

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Directors	0.000	0.000
From Others	31.611	28.529
Total	31.611	28.529

Banking Relations :	--
Auditors :
Name :	Parikh Mehta and Associates Chartered Accountants
Address :	Happy Home Apartment No.2, 10, Sampatrao Colony, R.C. Dutt Road, Vadodara – 390 007, Gujarat, India
Tel. No.:	91-265-6581665/ 2338100
Mobile No.:	91-9426019863
Fax No.:	91-265-3057834
Income-tax PAN of auditor or auditor's firm :	ACGPM6009B
Associate Companies :	Grand Polycoats Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1150000	Equity Shares	Rs.10/- each	Rs.11.500 millions
160000	12% Redeemable Cumulative Preference Shares	Rs.100/- each	Rs.16.000 millions
	Total		Rs.27.500 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		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		10.000	10.000	10.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		119.529	77.383	31.107
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		129.529	87.383	41.107
LOAN FUNDS
1] Secured Loans		20.062	8.132	28.417
2] Unsecured Loans		31.611	28.529	11.015
TOTAL BORROWING		51.673	36.661	39.432
DEFERRED TAX LIABILITIES		4.657	3.400	1.395
TOTAL		185.859	127.444	81.934
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		65.220	54.938	28.058
Capital work-in-progress		0.653	10.563	11.421
INVESTMENT		0.000	0.000	3.008
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.694	36.940	29.422
	Sundry Debtors	177.935	83.829	37.560
	Cash & Bank Balances	13.307	23.865	19.993
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	7.705	9.108	8.798
Total Current Assets		227.641	153.742	95.773
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	94.114	78.490	53.954
	Other Current Liabilities	11.172	3.664	0.334
	Provisions	2.369	9.645	2.038
Total Current Liabilities		107.655	91.799	56.326
Net Current Assets		119.986	61.943	39.447
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		185.859	127.444	81.934

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	585.808	404.345	297.583
		Other Income	7.044	0.228	9.238
		TOTAL (A)	592.852	404.573	306.821
Less	EXPENSES
		Increase/ Decrease in Inventory	1.544	0.599	(0.111)
		Raw Materials and Packing Materials Consumed	421.557	251.179	188.077
		Manufacturing Expenses	24.939	17.049	10.378
		Payment to and Provision for Employees	9.221	7.437	1.815
		Administrative and Other Expenses	10.097	14.476	4.524
		Selling and Distribution Expenses	57.779	40.169	26.931
		Goodwill W/off	0.000	0.000	23.313
		Prior Period Expenses	(0.161)	0.000	0.134
		TOTAL (B)	524.976	330.909	255.061
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		67.876	73.664	51.760
Less	INTEREST & FINANCIAL EXPENSES (D)		6.784	5.924	2.799
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		61.092	67.740	48.961
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.287	2.123	1.183
	PROFIT BEFORE TAX (E-F) (G)		57.805	65.617	47.778
Less	TAX (H)		15.658	13.491	6.796
	PROFIT AFTER TAX (G-H) (I)		42.147	52.126	40.982
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		46.598	5.535	(12.130)
Less	APPROPRIATIONS
		Dividend	0.000	5.000	8.220
		Tax on Dividend	0.000	0.850	1.397
		Transfer to General Reserve	0.000	5.213	0.000
		Transfer to preference share redemption reserve	0.000	0.000	13.700
	BALANCE CARRIED TO THE B/S		88.745	46.598	5.535
	EARNINGS IN FOREIGN CURRENCY
		F.O.B. Value of Exports	531.401	357.543	280.268
	TOTAL EARNINGS		531.401	357.543	280.268
	IMPORTS
		Raw Materials Purchase	184.318	130.718	96.606
		Capital Items Purchase	0.959	0.000	0.000
	TOTAL IMPORTS		185.277	130.718	96.606
	Earnings Per Share (Rs.)		42.15	46.28	31.36

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.11	12.88	13.36
Net Profit Margin (PBT/Sales)	(%)	9.87	16.23	16.06
Return on Total Assets (PBT/Total Assets}	(%)	0.20	31.44	38.58
Return on Investment (ROI) (PBT/Networth)		0.45	0.75	1.16
Debt Equity Ratio (Total Liability/Networth)		1.23	1.47	2.33
Current Ratio (Current Asset/Current Liability)		2.11	1.67	1.70

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions 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	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
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	--
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE:

The registered office of the company has been shifted from 204, Siddharth Complex, R.C. Dutt Road, Alkapuri, Vadodara – 390 007, Gujarat to the present address w.e.f. 24.08.2009.

OPERATION REVIEW AND FUTURE PROSPECTS:

The company has recorded robust growth in revenue. The income from operation for the financial year (increased by 44%) is Rs.585.808 millions as against Rs.404.345 millions for the previous financial year. The profit before interest and depreciation for the year is Rs.65.891 millions as against Rs.72.516 millions of the previous financial year. Margin reduction is due to stiff increase in cost of raw materials.

FUTURE OUTLOOKS:

It is expected that the Company will register substantial growth in coming year. The Company was built up a solid foundation and it will scale greater heights in the years to follow.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN THE BOOKS:

Particulars	31.03.2011 (Rs. in millions)
Outstanding Bank Guarantee	2.700
Letter of Credit issued by Bank	10.925

Bankers Charges Report as per Registry

Corporate identity number of the company	U24224GJ2002PTC040987
Name of the company	ADMARK POLYCOATS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No.207, Village - Luna, Taluka: Padra, District: Vadodara, Vadodara – 391 440, Gujarat, India E-Mail: maildeveshpathak@rediffmail.com
This form is for	Creation of charge
Type of charge	Immovable Property
Particular of charge holder	CIN No.: L65920MH1994PLC080618 HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India E-Mail: RBBform8@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Memorandum Recording Past Transactions of Creation of Mortgage by Delivery of Title Deeds.
Date of instrument Creating the charge	12.09.2011
Amount secured by the charge	Rs.22.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment: Working capital facility shall be payable on demand. Term loan facility shall be repayable in suitable installments. Margin: As may be stipulated by the Bank from time to time. Extent and Operation of the charge: The Company created an equitable mortgage by way of deposit of title deeds in respect of its immovable properties as security for the due repayment of credit facilities sanctioned by HDFC Bank Limited to Nanovation Products Private Limited of Rs.22.500 millions including principal amount of the Facility, interest, liquidated damages, costs, charges and expenses etc.
Short particulars of the property charged	Immovable properties being Sub Plot No.4 adm. 3935.73 sq. mtrs alongwith construction thereon adm 278.81 sq. mts. forming part of Old survey no. 156, block no. 2020 mouje Luna Sub District Padra and Registration District Vadodara

FIXED ASSETS:

v Land

v Building

v Plant and Machinery

v Computer Equipments

v Furniture and Fixture

v Office Equipment

v Vehicles

v Pattern and Trademark

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 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.55.69
UK Pound	1	Rs.89.20
Euro	1	Rs.72.10

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.