MIRA INFORM REPORT

Report Date :

19.06.2014

IDENTIFICATION DETAILS

Name :	CHERRY PAINTS AND POLYMERS PRIVATE LIMITED
Registered Office :	Plot No. 23-A, Sector-Fsanwar Road, Industrial Area, Indore-452003, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	01.03.1995
Com. Reg. No.:	10-009109
CIN No.: [Company Identification No.]	U24114MP1995PTC009109
TAN No.: [Tax Deduction & Collection Account No.]	BPLC00849C
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of All Grades of Industrial Resins, Alkyds.
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 10000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. External borrowing of the company is huge which act as threat to liquidity position of the company. However, trade relation are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing 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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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. Nikhil Wagle
Designation :	Director
Contact No.:	91-9302103071
Date :	12.06.2014

LOCATIONS

Registered Office/ Factory :	Plot No. 23-A, Sector-Fsanwar Road, Industrial Area, Indore-452003, Madhya Pradesh, India
Tel. No.:	91-731-4047020
Mobile No.:	91-9302103071 (Mr. Nikhil Wagle)
Fax No.:	91-731-4047020
E-Mail :	chepaint@yahoo.com
Area :	4000 sq.ft. (Approximately)

DIRECTORS

As on: 30.09.2013

Name :	Mr. Nikhil Wagle
Designation :	Managing Director
Address :	1 Kachhi Mohalla, Indore-452007, Madhya Pradesh, India
Date of Birth/Age :	30.11.1978
Date of Appointment :	02.01.2009
DIN NO:	01330612
Name :	Mrs. Urweashi Wagle
Designation :	Director
Address :	1 Kachhi Mohalla, Indore-452007, Madhya Pradesh, India
Date of Birth/Age :	12.11.1959
Date of Appointment :	01.03.1995
DIN NO:	01256370

MAJOR SHAREHOLDERS

As on: 30.09.2013

Names of Shareholders	No. of Shares
Urwashi Wagle	5191
Uday Wagle	17125
Vijay Kumar Nadkarni	1
Nikhil Wagle	1155
Sunil Matwankar	1
Sunita Matwankar	1
Uday Kumar Wagle (H.U.F.)	5526
Total	29000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of All Grades of Industrial Resins, Alkyds.
Products :	· DB Oil · Stand Oil · CNSL Resin · Long Oil Alkyd · Rosinated Alkyd · Phenolic Resin · Pentaeastergum · Liquid Phenolic Resin · Malice Modified Resin · Cashew Nut Shell Liaquid Resin · Paints/ Varnishes
Terms :
Selling :	Cash
Purchasing :	Cash

GENERAL INFORMATION

Customers :

End Users and OEM’s

· Suraj Paints

· Zodiac Paint

· Galaxy Industrial Association

· Colour India Paint and Ink Private Limited

· Garnish Paint

· Meena Industries

· Wellbro Paints Private Limited

· IS Paint

· Samtara Paints

· Avanti Paints

· Ishant Synthetics (Private) Limited

· Vijay Paints

· Decora Paints

No. of Employees :

20 (Approximately)

Bankers :

• Canara Bank, Siyaganj Branch, 11 R.N.T. Marg, Indore-452001, Madhya Pradesh, India
• HDFC Bank Limited
• Axis Bank Limited, 01, Kamal Palace, Y.N Road, Indore-452001, Madhya Pradesh, India

Facilities :

Secured Loans	31.03.2013 Rs. In Millions	31.03.2009 Rs. In Millions
Long Term Borrowing
From Canara Bank CCH A/C (Secured By The Hypothecation On Raw Materials Packing)	9.019	7.872
From Canara Bank MTL A/C	0.133	0.213
From IDBI Bank	0.000	0.098
From HDFC Bank (Loan)	0.746	1.000
(B) Deferred Payment Liabilities)
Determent of MP Commercial Tax, CST and Sucharges	0.016	0.016
(C) Loan and Advances From Related Parties
From Directors
Mrs. Urvashi Wagle	2.279	2.013
Mr. Nikhil W Cherry Paints And Polymers Private Limited	0.519	0.468
From Shareholders
Shri. Uday Wagle	4.643	3.266
Shri V.M Nadkarni	1.568	1.451
Col. Skp Matwnkar	1.700	1.700
Mrs. Ss Matwankar	1.435	1.418
From Others
Mrs. Suvarna V. Nadkarni	0.000	0.021
Shri Uday Wagle (HUF)	0.702	0.634
Mrs. Usha Matwankar	0.350	0.350
Ph. Traders	1.779	1.028
Mrs. Prajakta N. Wagle	0.285	0.257
Shri. Gopikrishna Baheti	0.100	0.100
Shri. Pankaj Mantra	0.500	0.500
Shri. Pankaj Mantra (HUF)	1.000	1.000
Shri. Pramod Kumar	0.360	0.000
Shri. Avinash Patkar	0.509	0.514
Shri. Viral Shah	0.205	0.200
Riddhi Daga	0.203	0.203
Shri. Naredra Kumar Baheti	0.256	0.250
Nidhi Mehta	0.140	0.143
Shri. Parasmani Mehta	0.201	0.203
Total	28.648	24.918

Banking Relations :	--
Auditors :
Name :	Kailash C. Agrwal and Company Chartered Accountant
Address :	401, Chetak Centre, 12/2, RNT Marg, Indore-452001, Madhya Pradesh, India
Tel. No.:	91-731-2519777/ 2520777
PAN NO:	ABRPA2326H

CAPITAL STRUCTURE

As on: 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
30000	Equity Shares	Rs.100/- each	Rs. 3.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29000	Equity Shares	Rs.10/- each	Rs. 2.900 Millions

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.100/- each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
9000	Equity Shares	Rs.100/- each	Rs. 0.900 Million

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	0.900	0.900	0.900
(b) Reserves & Surplus	1.814	1.199	0.998
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.063	0.063
Total Shareholders’ Funds (1) + (2)	2.714	2.162	1.961
(3) Non-Current Liabilities
(a) long-term borrowings	28.648	24.918	20.057
(b) Deferred tax liabilities (Net)	0.031	0.000	0.000
(c) Other long term liabilities	0.760	1.608	0.009
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	29.439	26.526	20.066
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	6.798	6.364	6.170
(c) Other current liabilities	0.000	0.000	0.000
(d) Short-term provisions	0.553	0.657	0.346
Total Current Liabilities (4)	7.351	7.021	6.516
TOTAL	39.504	35.709	28.543
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.994	2.075	2.261
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.053	0.579	0.462
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	2.047	2.654	2.723
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	8.014	8.792	5.066
(c) Trade receivables	26.832	23.339	19.224
(d) Cash and cash equivalents	1.077	0.175	0.860
(e) Short-term loans and advances	0.000	0.000	0.000
(f) Other current assets	1.534	0.749	0.670
Total Current Assets	37.457	33.055	25.820
TOTAL	39.504	35.709	28.543

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Total Revenue	53.074	34.590	30.052
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less		TOTAL EXPENSES	NA	NA	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1.285	0.724	0.694
Less/ Add	DEPRECIATION/ AMORTISATION		0.359	0.389	0.397
	PROFIT BEFORE TAX		0.926	0.335	0.297
Less	TAX		0.311	0.135	0.120
	PROFIT AFTER TAX		0.615	0.200	0.177
	Earnings Per Share (Rs.)		68.36	22.29	NA

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.16	0.58	0.59
Net Profit Margin (PBT/Sales)	(%)	1.74	0.97	0.99
Return on Total Assets (PBT/Total Assets}	(%)	2.34	0.94	1.04
Return on Investment (ROI) (PBT/Networth)		0.34	0.15	0.15
Debt Equity Ratio (Total Debt /Networth)		10.56	11.53	10.23
Current Ratio (Current Asset/Current Liability)		5.10	4.71	3.96

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	0.900	0.900	0.900
Reserves & Surplus	0.998	1.199	1.814
Net worth	1.898	2.099	2.714
long-term borrowings	20.057	24.918	28.648
Short term borrowings	599.046	828.271	1886.543
Share Application money pending allotment	0.000	0.063	0.063
Total borrowings	619.103	853.189	1915.191
Debt/Equity ratio	326.187	406.474	705.671

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Revenue	30.052	34.590	53.074
		15.100	53.437

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Revenue	30.052	34.590	53.074
Profit	0.177	0.200	0.615
	0.59%	0.58%	1.16%

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	Yes
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

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10475595	14/12/2013	18,000,000.00	AXIS BANK LIMITED	01, KAMAL PALACE, Y.N. ROAD, INDORE, MADHYA PRADE  SH - 452001, INDIA	B95496725

* Date of charge modification

FIXED ASSETS

· Land Development

· Building

· Plant and Machinery

· Vehicles

· Furniture and Fixture

· Office Equipment

· Computer and Printer

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.60.12
UK Pound	1	Rs.102.00
Euro	1	Rs.81.43

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	SUM
Report Prepared by :	YOG

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	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		28

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.