MIRA INFORM REPORT

Report Date :

19.07.2013

IDENTIFICATION DETAILS

Name :	ARIHANT CHEMICALS AND RESINS (INDIA) PRIVATE LIMITED
Registered Office :	11, Peninsula Centre S. S. Rao Road, Parel, Mumbai – 400009, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.02.2003
Com. Reg. No.:	11-139400
Capital Investment / Paid-up Capital :	Rs.2.000 Millions
CIN No.: [Company Identification No.]	U51102MH2003PTC139400
TAN No.: [Tax Deduction & Collection Account No.]	MUMA18787G
PAN No.: [Permanent Account No.]	AAECA1296P
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Dealer of Chemical used in Paint Industry.
No. of Employees :	40 (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 140000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Management has failed to file the latest financials as on 2012 with the government department. As per the available financials of 2011, the company has seen a better increase in its sales turnover but there appears a dip in its net profitability. External borrowings appear to be increasing which may act as a threat to the liquidity. However trade relations are fair. Business is active. Payment terms are unknown. The company can be considered for 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

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

Name :	Mr. Sachin Satam
Designation :	Accounts Manager
Contact No.:	91-9869865545
Date :	10.07.2013

LOCATIONS

Registered/ Corporate Office :	11, Peninsula Centre S. S. Rao Road, Parel, Mumbai – 400009, Maharashtra, India They have 2 premises one at 11 Peninsula and 2^nd at 9 Peninsula.
Tel. No.:	91-22-40586777/ 40586718 to 23 (Hunting Lines)
Mobile No.:	91-9619558656 (Mr. Bhaskar) 91-9869865545 (Mr. Sachin Satam)
Fax No.:	91-22-40586752/ 40586770/ 66608077
E-Mail :	info@arihantchemicals.com bhaskar.rao@arihantchemicals.com
Website :	www.arihantchemicals.com
Area :	1600 sq. ft.
Location :	Owned
Warehouse:	Muni Surat Complex, Gala Nos. D-1 and D-2, Ground Floor, Rahnal Village, Taluka Bhiwandi, District Thane – 421302, Maharashtra, India
Area:	Owned
Branch offices :	Located At: · Bangalore · Indore · Kolkata · Pune

DIRECTORS

(AS ON 30.09.2011)

Name :	Mr. Bhupendra Gopalji Sakaria
Designation :	Director
Address :	703, Saumitra CHS. Limited, Plot No.295 A, Bhimani Street, Opposite Nappo Garden, Matunga CR, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	24.08.1939
Date of Appointment :	28.02.2003
DIN No.:	00142682
Name :	Mrs. Aruna Bhupendra Sakaria
Designation :	Director
Address :	703, Saumitra CHS. Limited, Plot No.295 A, Bhimani Street, Opposite Nappo Garden, Matunga CR, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	20.01.1951
Date of Appointment :	06.12.2004
DIN No.:	00142989
Name :	Ms. Shwetal Bhupendra Sakaria
Designation :	Director
Address :	703, Saumitra CHS. Limited, Plot No.295 A, Bhimani Street, Opposite Nappo Garden, Matunga CR, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	06.06.1980
Date of Appointment :	28.02.2003
DIN No.:	00142838
Name :	Ms. Khushi Shwetal Sakaria
Designation :	Director
Address :	703, Saumitra CHS. Limited, Plot No.295 A, Bhimani Street, Opposite Nappo Garden, Matunga CR, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	20.10.1983
Date of Appointment :	06.12.2004
DIN No.:	00143102

KEY EXECUTIVES

Name :	Mr. Sachin Satam
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Bhupendra Gopalji Sakaria	91103
Shwetal Bhupendra Sakaria	630333
Aruna Bhupendra Sakaria	10334
Khushi Shwetal Sakaria	10000
Kanchi Nilesh Mehta (under the Guardianship of Rupal N Mehta)	1000
Rupal N Mehta	1000
Rupal Snehal Shah	1000
Snehal C Shah	1000
Viral J Sakaria	1000
Sujata V Sakaria	1000
Dimple P Vasa	1000
Abhay Rajnikant Shah (HUF)	10
Ajay Rajnikant Shah (HUF)	10
Rajnikant Kodarlal Shah (HUF)	10
Kartik Shashikant Mehta	1000
Sunil Pravin Shah	100
Jaydeep Mehta	100
Total	750000

(AS ON 04.11.2011)

Names of Allottees	No. of Shares Allotted
Shwetal Bhupendra Sakaria	140000
Total	140000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trader and Dealer of Chemical used in Paint Industry.

Products :

Products Description	Item Code No.
Chemicals	202

Exports :

Products :

Chemical

Countries :

South Africa

Imports :

Products :

Chemical

Countries :

· Germany

· Japan

· US

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

40 (Approximately)

Bankers :

· Union Bank of India

Khand Bazar Branch, 109, Kazi Syed Street, Khand Bazar, Mumbai – 400003, Maharashtra, India

Contact No.: 91-22-23422390

· Bank of Baroda

Vapi Industrial Estate Branch, GIDC, Vapi – 396195, Gujarat, India

· HDFC Bank

senapati Bapat Marg, Lower parel (West), Mumbai – 400 013, Maharashtra, India

· Abhyudaya Co-operative Limited

Administrative Office, K T Tower, Abhyudaya Bank, Lane, Office G D Ambedkar Marg, Parel Village, Mumbai – 400012, Maharashtra, India

· Kotak Mahindra Bank

· State Bank of India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
HDFC Bank (Foreign Bill Discounting Facility)	3.657	4.813
Abhyudaya Bank (Term Loan) (Secured against hypothecation of office premises at New Mumbai)	6.050	9.650
Car Loan (Secured against hypothecation of Cars)	3.565	0.225
HDFC Buyers Credit Loan	9.896	12.311
Union Bank of India (Bill Discounting) (Against letter of Credit)	0.000	5.262
Total	23.168	32.261
Note: Secured against hypothecation of all current assets including stocks and Book Debts and Equitable Mortgage of the properties)

Banking Relations :	--
Auditors :
Name :	B. Vithalani and Company Chartered Accountants
Address :	# 246, 2^nd Floor, Shree Naman Plaza, Near Shoppers Stop, S V Road, Kandivali (West), Mumbai – 400067, Maharashtra, India
PAN No.:	AADPV5956B
Associates/Subsidiaries :	· Tridev Resins India Private Limited Line of business : Manufacturer of Resins · Arihant Pigments India Private Limited Line of business : Trader of Pigments · Saitech Coating Private Limited Line of business : Manufacturer of Coating

CAPITAL STRUCTURE

(AFTER 30.09.2011)

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
890000	Equity Shares	Rs.10/- each	Rs.8.900 Millions

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 Millions

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.10/- each	Rs.2.000 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		2.000	2.000	2.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		32.989	27.207	20.885
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		34.989	29.207	22.885
LOAN FUNDS
1] Secured Loans		23.168	32.261	3.293
2] Unsecured Loans		69.808	53.966	50.829
TOTAL BORROWING		92.976	86.227	54.122
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		127.965	115.434	77.007
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.485	11.965	13.533
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		34.971	33.163	6.416
DEFERREX TAX ASSETS		0.548	1.392	1.117
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	35.059	33.830	33.937
	Sundry Debtors	125.676	102.595	86.921
	Cash & Bank Balances	0.519	0.438	0.462
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	18.841	19.073	23.501
Total Current Assets		180.095	155.936	144.821
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	62.816	44.060	56.558
	Other Current Liabilities	33.418	34.408	26.623
	Provisions	5.900	8.554	5.699
Total Current Liabilities		102.134	87.022	88.880
Net Current Assets		77.961	68.914	55.941
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		127.965	115.434	77.007

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income			454.063
		Other Income			8.617
		TOTAL (A)	468.584	404.662	462.680
Less	EXPENSES
		Cost of Goods Sold			406.243
		Personnel Cost			4.934
		Administrative and Selling Expenses			40.737
		TOTAL (B)	456.591	393.613	451.914
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(Including Financial Expenses)	(Including Financial Expenses)	10.766
Less	FINANCIAL EXPENSES (D)				7.070
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.993	11.049	3.696
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.367	2.147	2.541
	PROFIT BEFORE TAX (E-F) (G)		9.626	8.902	1.155
Less	TAX (H)		3.844	2.580	0.630
	PROFIT AFTER TAX (G-H) (I)		5.782	6.322	0.525
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	18.132
	BALANCE CARRIED TO THE B/S		NA	NA	18.657
	EARNINGS IN FOREIGN CURRENCY		32.372	46.758	NA
	Earnings Per Share (Rs.)		28.91	27.31	2.62

Particulars	31.03.2013
Sales Turnover (Approximately)	570.000

Expected Sales (2013-14): Rs.600.000 Millions

The above information has been parted by Mr. Sachin Satam.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.23	1.56	0.11
Net Profit Margin (PBT/Sales)	(%)	NA	NA	0.25
Return on Total Assets (PBT/Total Assets}	(%)	4.95	5.30	0.73
Return on Investment (ROI) (PBT/Networth)		0.28	0.30	0.05
Debt Equity Ratio (Total Debt/Networth)		2.66	2.95	2.36
Current Ratio (Current Asset/Current Liability)		1.76	1.79	1.63

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	Yes
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	Yes
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	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
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	No

UNSECURED LOANS

Particulars	31.03.2011	31.03.2010
	(Rs. In Millions)
From Members	11.184	9.344
From Directors	45.690	44.622
From Banks	12.934	--
Total	69.808	53.966

PERFORMANCE

During the year, the company’s Gross Receipts was Rs.468.584 Millions as against 404.662 Millions in the last year. There is an increase in Gross Receipts to the tune of 15.40% as compared to last year. The Company has earned Profit after tax Rs.5.782 Millions as against Rs.6.322 Millions in the previous year. The Company’s performance was satisfactory during the year.

FIXED ASSETS:

· Office Premises

· Computer

· Furniture and Fixtures

· Office Equipments

· Residential Property

· Motor Vehicles

· godowns

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.59.36
UK Pound	1	Rs.89.69
Euro	1	Rs.77.99

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

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