MIRA INFORM REPORT

Report Date :

11.10.2013

IDENTIFICATION DETAILS

Name :	J K PARAS POLYCOATS LIMITED (w.e.f. 02.01.2010)
Formerly Known As :	PARAS POLYCOAT LIMITED
Registered Office :	WZ – 2A, Hind Nagar, Tilak Nagar, New Delhi – 110018
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.10.1995
Com. Reg. No.:	55-073400
Capital Investment / Paid-up Capital :	Rs. 15.065 Millions
CIN No.: [Company Identification No.]	U74899DL1995PLC073400
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of White, Black Coloured and Additive Masterbatches.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 250000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well-established company having a satisfactory track record. The financial position of the company is good. Trade relations are decent. Business is active. Payment terms are usually correct and as per commitment. The company can be considered 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 – 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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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.

LOCATIONS

Registered Office :	WZ – 2A, Hind Nagar, Tilak Nagar, New Delhi – 110018, India
Tel. No.:	91-11-32621455/ 66/ 25991357/ 25998390
Fax No.:	91-11-25991886
E-Mail :	maneet@capasricha.com
Website :	http://www.jkpmasterbatches.com
Factory :	Bahadurgarh, Haryana – 123001, India

DIRECTORS

As on: 30.09.2012

Name :

Mr. Inderjeet Singh

Designation :

Director

Address :

WZ – 2A, Hind Nagar, Tilak Nagar, New Delhi – 110059, India

Date of Birth/Age :

01.04.1962

Date of Appointment :

20.10.1995

DIN No.:

00251270

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	U74899DL1995PLC073400	J K Paras Polycoats Limited	Director	20/10/1995	20/10/1995	-	Active	NO
2	U25209DL2003PTC123110	J K Master Batch Private Limited	Director	18/11/2003	18/11/2003	-	Active	NO

Name :

Mr. Davinder Pal Singh

Designation :

Director

Address :

WZ – 2A, Hind Nagar, Tilak Nagar, New Delhi – 110059, India

Date of Birth/Age :

19.12.1964

Date of Appointment :

20.10.1995

DIN No.:

00248775

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	U74899DL1995PLC073400	J K Paras Polycoats Limited	Director	20/10/1995	20/10/1995	-	Active	NO
2	U25209DL2003PTC123110	J K Master Batch Private Limited	Director	18/11/2003	18/11/2003	-	Active	NO

Name :

Mr. Manjeet Singh

Designation :

Director

Address :

WZ – 2A, Hind Nagar, Tilak Nagar, New Delhi – 110059, India

Date of Birth/Age :

07.06.1969

Date of Appointment :

01.07.2008

DIN No.:

02235154

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	U25209DL2003PTC123110	J K Master Batch Private Limited	Director	01/07/2008	01/07/2008	-	Active	NO
2	U74899DL1995PLC073400	J K Paras Polycoats Limited	Director	01/07/2008	01/07/2008	-	Active	NO

Name :

Mr. Ravinder Kaur Chatrath

Designation :

Director

Address :

WZ – 2A, Hind Nagar, Tilak Nagar, New Delhi – 110059, India

Date of Birth/Age :

17.12.1968

Date of Appointment :

16.03.2011

DIN No.:

01060875

Name :

Mr. Amarjeet kaur

Designation :

Director

Address :

WZ – 2A, Hind Nagar, Tilak Nagar, New Delhi – 110059, India

Date of Birth/Age :

05.08.1971

Date of Appointment :

16.03.2011

DIN No.:

03494037

Name :

Mr. Tajinder Kaur

Designation :

Director

Address :

WZ – 2A, Hind Nagar, Tilak Nagar, New Delhi – 110059, India

Date of Birth/Age :

12.05.1968

Date of Appointment :

16.03.2011

DIN No.:

03494038

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2012

Names of Shareholders	No. of Shares
Davinder Pal Singh	143800
Inderjeet Singh	67800
Ravinder Kaur	187700
Amarjeet Kaur	182800
Tajinder Kaur	384800
Khajan Singh	113800
Parvinder Kaur	1500
Jaswant Kaur	81300
Charanjeet Singh	2500
Harpreet Kaur	5000
I.S.Bindra	2500
Paramjeet Singh	2500
Davinderpal Singh and Sons (Huf)	120000
Inderjeet Singh and Sons (Huf)	99000
Manjeet Singh and Sons (Huf)	111500
Total	1506500

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of White, Black Coloured and Additive Masterbatches.
Products :	Additive Masterbatches White Masterbatches Black Masterbatches Color Masterbatches Special Effect Masterbatches Master Organic Colours Materbatches

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank Of India, Uttam Nagar, New Delhi - 110059, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long term borrowings
Terms loans ICIC vehicle loan	0.926	0.000
Short term borrowings
Bank loans cash credit limit	12.190	12.242
State bank of India	0.000	2.967
Total	13.116	15.209

Banking Relations :	--
Auditors :
Name :	I. P. Pasricha and Company Chartered Accountants
Address :	A‐31A, 1st Floor, Ring Road, Rajouri Garden, New Delhi‐110027, India
Tel. No.:	91-11-25418722/ 25111233
E-Mail :	ippasrichaca@gmail.com ippasricha_ca_delhi@yahoo.com
PAN No.:	AADFI7432F

CAPITAL STRUCTURE

As on: 30.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1506500	Equity Shares	Rs.10/- each	Rs. 15.065 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2010
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	15.065	15.065
(b) Reserves & Surplus	49.841	40.215
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	64.906	55.280
(3) Non-Current Liabilities
(a) long-term borrowings	0.926	0.000
(b) Deferred tax liabilities (Net)	0.088	0.028
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	1.014	0.028
(4) Current Liabilities
(a) Short term borrowings	23.805	15.430
(b) Trade payables	6.603	5.100
(c) Other current liabilities	1.863	0.572
(d) Short-term provisions	0.000	0.000
Total Current Liabilities (4)	32.271	21.102
TOTAL	98.190	76.410
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	38.331	34.754
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	38.331	34.754
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	19.466	17.299
(c) Trade receivables	17.347	11.870
(d) Cash and cash equivalents	8.912	0.958
(e) Short-term loans and advances	5.335	1.870
(f) Other current assets	8.799	9.659
Total Current Assets	59.859	41.656
TOTAL	98.190	76.410

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		15.065	15.065	15.065
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		49.841	40.214	29.779
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		64.906	55.279	44.844
LOAN FUNDS
1] Secured Loans		13.116	15.209	15.053
2] Unsecured Loans		11.615	0.221	0.000
TOTAL BORROWING		24.731	15.430	15.053
DEFERRED TAX LIABILITIES		0.088	0.028	0.122
TOTAL		89.725	70.737	60.019
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		38.331	34.753	36.416
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	19.466	17.299	0.000
	Trade receivable	17.347	11.870	0.000
	Cash & Bank Balances	8.912	0.958	0.000
	Other Current Assets	8.799	9.659	22.539
	Loans & Advances	5.334	1.870	3.850
Total Current Assets		59.858	41.656	26.389
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.602	5.100	2.273
	Other Current Liabilities	1.862	0.572	0.513
	Provisions	0.000	0.000	0.000
Total Current Liabilities		8.464	5.672	2.786
Net Current Assets		51.394	35.984	23.603
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		89.725	70.737	60.019

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	146.864	89.878	71.744
		Other Income	0.927	2.567	0.507
		TOTAL (A)	147.791	92.445	72.251
Less	EXPENSES
		Purchase of stock-in trade	112.184	65.476
		Changes in inventories of finished goods work-in-progress and stock-in-trade	(2.166)	(3.436)
		Employee benefit expenses	4.811	3.090
		Other expenses	18.147	9.978
		TOTAL (B)	132.976	75.108	55.704
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14.815	17.337	16.547
Less	FINANCIAL EXPENSES (D)		2.333	2.065	2.322
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.482	15.272	14.225
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.974	2.018	1.229
	PROFIT BEFORE TAX (E-F) (G)		10.508	13.254	12.996
Less	TAX (H)		0.060	(0.094)	0.011
	PROFIT AFTER TAX (G-H) (I)		10.448	13.348	12.895
	Earnings Per Share (Rs.)
	Basic		6.39	8.86	NA
	Diluted		6.39	8.86	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.07	14.43	17.84
Net Profit Margin (PBT/Sales)	(%)	7.15	14.74	18.11
Return on Total Assets (PBT/Total Assets}	(%)	10.70	17.34	20.69
Return on Investment (ROI) (PBT/Networth)		0.16	0.23	0.29
Debt Equity Ratio (Total Debt/Networth)		0.38	0.28	0.33
Current Ratio (Current Asset/Current Liability)		1.86	1.98	9.47

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	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 (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	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Short term borrowings
Loans from related parties	11.615	0.000
G. S. Plastics, New Delhi	0.000	0.188
Southern Agencies, Hyderabad	0.000	0.033
Total	11.615	0.221

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10038963	29/05/2012 *	34,200,000.00	STATE BANK OF INDIA	WZ-167, UTTAM NAGAR, NEW DELHI, DELHI - 110059, INDIA	B42189498

* Date of charge modification

FIXED ASSETS

• Land and Building
• Furniture and Fixture
• Fire and Fitting
• Machinery
• Air Conditioner
• Computer

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. 62.13
UK Pound	1	Rs. 99.02
Euro	1	Rs. 83.87

INFORMATION DETAILS

Report Prepared by :

DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	7
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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.