MIRA INFORM REPORT

Report Date :

04.09.2013

IDENTIFICATION DETAILS

Name :	HILITE INDUSTRIES PRIVATE LIMITED
Registered Office :	341, Pratap Khand vishwakarma Nagar, Shahdra, Delhi – 110095
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.09.1997
Com. Reg. No.:	55-089459
Capital Investment / Paid-up Capital :	Rs. 4.000 Millions
CIN No.: [Company Identification No.]	U29199DL1997PTC089459
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Jointly Gasket Sheets and Asbestos Jointly Sheets.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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 an established company having a satisfactory track record. Trade relations are fair. 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.

INFORMATION PARTED BY

Name :	Mr. Prasad
Designation :	Accounts Department
Contact No.:	91-120-4144500
Date :	03.09.2013

LOCATIONS

Registered Office :	341, Pratap Khand vishwakarma Nagar, Shahdra, Delhi – 110095, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	hilitefinance@gmail.com anilvaishca@gmail.com
Location :	Owned
Factory :	B-1, Site 1, B.S. Road, Industrial Area, Ghaziabad - 201001, Uttar Pradesh, India
Tel. No.:	91-120-4144500
Fax No.:	91-120-2703385

DIRECTORS

As on: 29.09.2012

Name :	Ms. Sudha Sharma
Designation :	Director
Address :	R-9/168, Raj Nagar, Ghaziabad - 201002, Uttar Pradesh, India
Date of Birth/Age :	09.10.1957
Date of Appointment :	05.09.1997
DIN No.:	00094884
Name :	Ms. Preeti Sharma
Designation :	Director
Address :	R-9/168, Raj Nagar, Ghaziabad - 201002, Uttar Pradesh, India
Date of Birth/Age :	08.03.1980
Date of Appointment :	15.02.2006
DIN No.:	00177188

KEY EXECUTIVES

Name :	Mr. Prasad
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Akshay Sharma	1940
Ashok Kumar Sharma	1860
Anand Behari Sharma	8000
Krishna Devi Family Trust	2200
Sunlite Finevest Private Limited	2900
Preeti Sharma	2100
Sudha Sharma	21000
Total	40000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	7.25
Directors or relatives of directors	92.75
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Jointly Gasket Sheets and Asbestos Jointly Sheets.

Products :

ITC Code	Product or Services
681290-11	Jointing Gasket Sheets

Exports :

Products :

Finished goods

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

PRODUCTION STATUS As on (31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Gasket Sheets	MT	5400000	5307624

GENERAL INFORMATION

Customers :

OEM’s

No. of Employees :

300 (Approximately)

Bankers :

Oriental Bank of Commerce, Razapur Branch, Shastri Nagar, Ghaziabad - 201002, Uttar Pradesh, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Short term borrowings
Oriental Bank of Commerce, GZB-C/C A/C	9.811	3.281
Total	9.811	3.281

Banking Relations :	--
Auditors :
Name :	Anil Vaish and Company Chartered Accountants
Address :	C-98, 3^rd Floor, RDC, Raj Nagar, Ghaziabad - 201002, Uttar Pradesh, India
Tel. No.:	91-120-2822234/ 35
PAN No.:	AAVFA8212F

CAPITAL STRUCTURE

As on: 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

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

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	4.000	4.000
(b) Reserves & Surplus	59.864	43.794
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.100	0.300
Total Shareholders’ Funds (1) + (2)	63.964	48.094
(3) Non-Current Liabilities
(a) long-term borrowings	21.860	21.660
(b) Deferred tax liabilities (Net)	1.730	1.870
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	23.590	23.530
(4) Current Liabilities
(a) Short term borrowings	9.811	3.281
(b) Trade payables	37.457	36.461
(c) Other current liabilities	13.485	12.247
(d) Short-term provisions	8.500	3.900
Total Current Liabilities (4)	69.253	55.889
TOTAL	156.807	127.513
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	30.711	31.943
(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	2.890	2.197
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	33.601	34.140
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	50.991	28.166
(c) Trade receivables	43.316	48.464
(d) Cash and cash equivalents	8.465	6.094
(e) Short-term loans and advances	20.434	10.649
(f) Other current assets	0.000	0.000
Total Current Assets	123.206	93.373
TOTAL	156.807	127.513

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.000
2] Share Application Money		0.300
3] Reserves & Surplus		35.692
4] (Accumulated Losses)		0.000
NETWORTH		39.992
LOAN FUNDS
1] Secured Loans		11.550
2] Unsecured Loans		20.599
TOTAL BORROWING		32.149
DEFERRED TAX LIABILITIES		1.551
TOTAL		73.692
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		27.585
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.000
	Cash & Bank Balances	0.000
	Other Current Assets	0.000
	Loans & Advances	76.752
Total Current Assets		76.752
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities
	Provisions
Total Current Liabilities		30.645
Net Current Assets		46.107
MISCELLANEOUS EXPENSES		0.000
TOTAL		73.692

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	403.023	300.868	232.091
		Other Income	1.851	1.322	0.622
		TOTAL (A)	404.874	302.190	232.713
Less	EXPENSES
		Cost of material consumed	262.879	190.203
		Changes in inventory of finished and semi-finished	(5.884)	(1.810)
		Employee benefit expenses	23.678	19.567
		Other expenses	91.103	74.357
		TOTAL (B)	371.776	282.317	216.727
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		33.098	19.873	15.986
Less	FINANCIAL EXPENSES (D)		3.682	3.496	2.968
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		29.416	16.377	13.018
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.461	4.050	3.267
	PROFIT BEFORE TAX (E-F) (G)		24.955	12.327	9.751
Less	TAX (H)		8.420	4.226	3.054
	PROFIT AFTER TAX (G-H) (I)		16.535	8.101	6.697
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		43.329	35.693	28.996
Less	APPROPRIATIONS
		Dividend	0.697	0.400	0.000
		Tax on Dividend	0.000	0.065	0.000
	BALANCE CARRIED TO THE B/S		59.167	43.329	35.693
	EARNINGS IN FOREIGN CURRENCY		51.592	30.873	29.242
	IMPORTS
		FOB Value	66.723	56.562	43.881
	TOTAL IMPORTS		66.723	56.562	43.881
	Earnings Per Share (Rs.)		413.36	202.53	--

Particulars	31.03.2013
Sales Turnover (Approximately)	440.000

The above information has been parted by Mr. Prasad

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.08	2.69	2.88
Net Profit Margin (PBT/Sales)	(%)	6.19	4.10	4.20
Return on Total Assets (PBT/Total Assets}	(%)	15.91	9.67	9.35
Return on Investment (ROI) (PBT/Networth)		0.40	0.26	0.24
Debt Equity Ratio (Total Debt/Networth)		0.50	0.51	0.80
Current Ratio (Current Asset/Current Liability)		1.78	1.68	2.51

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 four 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)	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	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
Long term borrowings
From Directors and their Relatives	9.300	9.300
From Shareholders	12.560	12.360
Total	21.860	21.660

OPERATIONS

During the year, the sales of the company have increased to Rs. 403.023 millions in 2011-12 as compared to Rs. 300.868 millions in 2010-11 showing an increase of 33.95 % p.a.. However Net Profit after tax of the company have increased to Rs. 16.535 millions in 2011-12 as compared to Rs.8.101 millions in 2010-11, resulting an increase of 104.11% p.a. Similarly Net Cash Accruals of the company have also increased to Rs. 20.855 millions in 2011-12 as compared to Rs. 12.469 millions in 2010-11 showing an increase of 67.25 %.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80008944	13/09/2005	7,500,000.00	ORIENTAL BANK OF COMMERCE	RAZAPUR BRANCH, SHASTRI NAGAR, GHAZIABAD, Uttar Pradesh - 201002, INDIA	-
2	80008840	27/03/2009 *	21,350,000.00	Oriental Bank of Commerce	Razapur Branch, Shastri Nagar, Ghaziabad, Uttar Pradesh - 201002, INDIA	A62079363
3	80008946	15/06/2013 *	20,000,000.00	ORIENTAL BANK OF COMMERCE	RAZAPUR BRANCH, SHASTRI NAGAR, GHAZIABAD, Uttar Pradesh - 201002, INDIA	B78813201

* Date of charge modification

Fixed Assets:

• Plant and Machinery
• Furniture and Fixture
• Computer and Software
• Land and Buildings
• Office Equipments

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. 66.89
UK Pound	1	Rs. 103.94
Euro	1	Rs. 88.09

INFORMATION DETAILS

Information Gathered by :	PLK
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	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.