MIRA INFORM REPORT

Report Date :

16.12.2013

IDENTIFICATION DETAILS

Name :	ARIES COLORCHEM PRIVATE LIMITED
Registered Office :	C-1/260 GIDC Phase II,  Vatva, Ahmedabad – 382445, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.05.2009
Com. Reg. No.:	04-056815
Capital Investment / Paid-up Capital :	Rs.120.000 Millions
CIN No.: [Company Identification No.]	U24100GJ2009PTC056815
PAN No.: [Permanent Account No.]	AAHCA7021M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Dyes and Dye Intermediates.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 495000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part of “Aries Group”. It is an established company having moderate track record. There appears a low profit margin reported during 2013 due to the fluctuations in the raw material prices. The rating take into consideration its nascent stage of business operations marked by very low reserve position in the highly fragmented and competitive industry. However, trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of strong support from its group, the company can be considered fair business dealings with some caution

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities = BB
Rating Explanation	Moderate risk of default
Date	01.04.2013

Rating Agency Name	CARE
Rating	Short Term Bank Facilities = A4
Rating Explanation	Minimal degree of safety and very high credit risk
Date	01.04.2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ 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.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Dipen Patel
Designation :	Export Department
Contact No.:	91-9909969791
Date :	14.12.2013

LOCATIONS

Registered Office :	C-1/260 GIDC Phase II,  Vatva, Ahmedabad – 382445, Gujarat, India
Tel. No.:	91-79-25833164 / 25891164
Mobile No.:	91-9909969791 (Mr. Dipen Patel)
Fax No.:	91-79-25830535 / 25897941
E-Mail :	info@ariesgroup.in prahladlpatel@yahoo.com
Website :	www.ariesgroup.in
Location :	Owned
Factory :	Located At: Dahej, Gujarat

DIRECTORS

As on 30.09.2013

Name :

Mr. Kantilal Ishwarlal Patel

Designation :

Director

Address :

10-11 Manichandra Society, Part-IV Memnagar, Ahmedabad - 380052, Gujarat, India

Date of Appointment :

05.05.2009

PAN No.:

AAMPP5809L

DIN No.:

00050544

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24117GJ1995PTC024832	ARIES ORGANICS PRIVATE LIMITED	Director	01/03/1995	01/03/1995	-	Active	NO
2	U24239GJ2007PTC050349	ARIES BIOTECH PRIVATE LIMITED	Director	28/03/2007	28/03/2007	-	Active	NO
3	U24100GJ2009PTC056815	ARIES COLORCHEM PRIVATE LIMITED	Director	05/05/2009	05/05/2009	-	Active	NO

Name :

Mr. Arish Kantilal Patel

Designation :

Director

Address :

10-11 Manichandra Society, Part-IV Memnagar, Ahmedabad - 380052, Gujarat, India

Date of Appointment :

05.05.2009

PAN No.:

AGAPP8858M

DIN No.:

00050565

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24117GJ1995PTC024832	ARIES ORGANICS PRIVATE LIMITED	Director	20/11/2004	20/11/2004	-	Active	NO
2	U24239GJ2007PTC050349	ARIES BIOTECH PRIVATE LIMITED	Director	28/03/2007	28/03/2007	-	Active	NO
3	U24100GJ2007PLC051763	UNISON INDUSTRIES LIMITED	Director	18/09/2007	18/09/2007	27/08/2008	Active	NO
4	U24100GJ2009PTC056815	ARIES COLORCHEM PRIVATE LIMITED	Director	05/05/2009	05/05/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Dipen Patel
Designation :	Export Department

MAJOR SHAREHOLDERS

As on 30.09.2013

Names of Shareholders (Equity)	No. of Shares
Kantilal Ishwarlal Patel	1500000
Arish Kantilal Patel	1500000
Taraben K Patel	1500000
Total	4500000

Names of Shareholders (Preference)	No. of Shares
Kantilal Ishwarlal Patel	5000000
Arish Kantilal Patel	2000000
Taraben K Patel	100000
Kantilal Ishwarlal Patel (HUF)	400000
Total	7500000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Dyes and Dye Intermediates.

Products :

Description of product or service	ITC Code
Acid Black 210	32041218

Exports :

Products :

Finished Goods

Countries :

· Italy

· Spain

· Taiwan

Imports :

Products :

Raw Material

Countries :

China

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

50 (Approximately)

Bankers :

· State Bank of India, Oversea Branch 3rd Floor Amrit Jyoti Bhavan, Navjivan Complex Navjivan, Ahmedabad - 380014, Gujarat, India

Tel No.: 91-79-27544605

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Rupee term loans from banks (Secured by Hypothecation of Plant and Machinery, Mortgage of Land building and Personal Guarantee of Director)	121.200	0.000
Short Term Borrowings
Working capital loans from banks	16.339	0.000
Total	137.539	0.000

Banking Relations :	--
Auditors :
Name :	Prahlad L Patel and Company Chartered accountants
Address :	1, 2nd Floor, Sun Complex, Near Stadium Circle, Narvangpura, Ahmedabad – 380009, Gujarat, India
PAN No.:	AAMPP2304C
Sister Concerns :	· Arise Dyechem Industries · Arise Organics Private Limited

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 Millions
7500000	Preference Shares	Rs.10/- each	Rs.75.000 Millions
	Total		Rs.120.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 Millions
7500000	Preference Shares	Rs.10/- each	Rs.75.000 Millions
	Total		Rs.120.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	120.000	0.100	0.100
(b) Reserves & Surplus	3.781	0.000	0.000
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	123.781	0.100	0.100
(3) Non-Current Liabilities
(a) long-term borrowings	228.701	166.801	45.701
(b) Deferred tax liabilities (Net)	1.973	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	230.674	166.801	45.701
(4) Current Liabilities
(a) Short term borrowings	16.339	0.000	0.000
(b) Trade payables	30.113	7.944	0.000
(c) Other current liabilities	12.820	0.108	0.000
(d) Short-term provisions	1.147	0.000	0.234
Total Current Liabilities (4)	60.419	8.052	0.234
TOTAL	414.874	174.953	46.035
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	310.443	45.422	29.605
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	114.618	15.177
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.020	0.020	0.020
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	6.373	0.198	0.198
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	316.836	160.258	45.000
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	37.977	0.000	0.000
(c) Trade receivables	36.294	0.000	0.000
(d) Cash and cash equivalents	21.814	1.759	0.119
(e) Short-term loans and advances	0.430	12.936	0.916
(f) Other current assets	1.523	0.000	0.000
Total Current Assets	98.038	14.695	1.035
TOTAL	414.874	174.953	46.035

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	479.000	0.000	0.000
		Other Income	NA	0.000	0.000
		TOTAL	NA	0.000	0.000
Less	EXPENSES		NA	0.000	0.000
	PROFIT/(LOSS) BEFORE TAX		NA	0.000	0.000
Less	TAX		NA	0.000	0.000
	PROFIT/(LOSS) AFTER TAX		3.781	0.000	0.000
	EARNINGS IN FOREIGN CURRENCY		0.258	0.000	0.000
	Earnings Per Share (Rs.)		0.84	0.00	0.00

KEY RATIOS

PARTICULARS	31.03.2013	31.03.2012	31.03.2011
Debt Equity Ratio (Total Debt /Networth)	1.98	1668.01	457.01
Current Ratio (Current Asset/Current Liability)	1.62	1.83	4.42

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last one year	Yes
12]	Profitability for last one year	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	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes
26]	Buyer visit details	Yes
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Deposits from directors	107.501	166.801
Total	107.501	166.801

FINANCIAL RESULT

The Directors submit herewith the Audited Statement of accounts for the year Fourth ended 31st March 2013. The Company has started commercial activity in SEZ project for manufacturing of Dyes and Dye Intermediates. It has earned profit of Rs.3.781 Millions after provision for taxation and deferred tax liability.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10383041	01/10/2012	292,200,000.00	State Bank of India	Oversea Branch 3rd Floor Amrit Jyoti Bhavan, Navjivan Complex Navjivan, Ahmedabad, Gujarat - 380014, India	B60723590

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

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 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.62.13
UK Pound	1	Rs.101.53
Euro	1	Rs.85.41

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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.