MIRA INFORM REPORT

Report Date :

16.10.2014

IDENTIFICATION DETAILS

Name :	METCON COATINGS AND CHEMICALS (INDIA) PRIVATE LIMITED (w.e.f. 05.12.2000)
Formerly Known As :	R. P. FINE-CHEM PRIVATE LIMITED
Registered Office :	11, Ruby Plot 28-30, Chedda Nagar, Chembur, Mumbai – 400089, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	25.03.1998
Com. Reg. No.:	11-114155
Capital Investment / Paid-up Capital :	Rs. 2.500 Millions
CIN No.: [Company Identification No.]	U24110MH1998PTC114155
IEC No.:	0396017282
TAN No.: [Tax Deduction & Collection Account No.]	MUMM14414B
PAN No.: [Permanent Account No.]	AACCM7697Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of High Performance Industrial Coatings and Flooring Systems.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 95000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Management has reported a drastic dip in its net profitability affecting its margin during FY 13. However, trade relations seem to be fair. Business is active. Payment terms are reported as slow but correct. 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

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 31-03-2014.

INFORMATION DECLINED BY

Name :	Mr. Rajgopal Mahadevan
Designation :	Director
Contact No.:	91-9821210232
Date :	15.10.2014

LOCATIONS

Registered Office :	11, Ruby Plot 28-30, Chedda Nagar, Chembur, Mumbai – 400089, Maharashtra
Tel. No. :	91-22-25281583
Mobile No. :	91-9821210232 (Mr. Rajgopal Mahadevan)
Fax No. :	91-22-25288408
E-Mail :	satishs@metconcoatings.com metconcoatings@rediffmail.com
Website :	www.metconcoatings.com
Administrative Office/ Factory :	C-310, Pawane Village, TTC MIDC Area, Pawne, Naviu Mumbai – 400705, Maharashtra, India
Tel. No.:	91-22-41412400/ 499 (100 Lines)/ 27618317/ 27636523/ 27621904
E-Mail :	metconcoatings@rediffmail.com

DIRECTORS

As on 14.08.2013

Name :

Mr. Raman Mahadevan

Designation :

Director

Address :

A-1, Radha, Chedda Nagar, Chembur, Mumbai - 400089, Maharashtra, India

Date of Birth/Age :

12.09.1936

Date of Appointment :

08.03.2000

DIN No.:

00265650

Name :

Mr. Mahadevan Suryanarayanan

Designation :

Director

Address :

11, Ruby, Plot No.28-30, Cheda Nagar, Chembur, Mumbai – 400089, Maharashtra, India

Date of Birth/Age :

30.03.1969

Date of Appointment :

08.03.2000

DIN No.:

00266456

Name :

Mr. Suryanarayanan N. Madevan

Designation :

Director

Address :

11, Ruby, Plot No.28-30, Cheda Nagar, Chembur, Mumbai – 400089, Maharashtra, India

Date of Birth/Age :

11.03.1940

Date of Appointment :

15.03.2001

DIN No.:

00266601

Name :

Mr. Rajgopal Mahadevan

Designation :

Director

Address :

A-2, Saubhagya Building, Mazgaon Dock Staff, Saubhagya CHS, Chheda Nagar, Chembur, Mumbai - 400089, Maharashtra, India

Date of Birth/Age :

27.04.1956

Date of Appointment :

28.07.2010

DIN No.:

00700907

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	Company/ LLP Status	Defaulting status
1	U24110MH1998PTC114155	METCON COATINGS AND CHEMICALS (INDIA) PRIVATE LIMITED	Director	28-07-2010	15-10-2009	Active	NO

Name :

Mr. Satish Suryanarayanan

Designation :

Director

Address :

11, Ruby, Plot 28-30, Chheda Nagar, Chembur, Mumbai – 400089, Maharashtra, India

Date of Birth/Age :

13.08.1975

Date of Appointment :

28.07.2010

DIN No.:

02766955

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	Company/ LLP Status	Defaulting status
1	U24110MH1998PTC114155	METCON COATINGS AND CHEMICALS (INDIA) PRIVATE LIMITED	Director	28-07-2010	15-10-2009	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 14.08.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Raman Mahadevan	7500	30.00
Mahadevan Suryanarayanan	2500	10.00
Suryanarayanan Mahadevan	5000	20.00
Rajagopal Mahadevan	5000	20.00
Satish Suryanarayanan	5000	20.00
Total	25000	100.00

As on 14.08.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of High Performance Industrial Coatings and Flooring Systems.

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

Indian Overseas Bank, Shri. Subramania Samaj Temple Complex, Chheda Nagar, Mumbai - 400089, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Term Loans From Banks	0.259	0.259
SHORT TERM BORROWINGS
Cash Credit from Bank	23.637	25.255
Total	23.896	25.514

NOTE

SHORT TERM BORROWINGS

Cash Credit from bank is secured by way of mortgage/ hypothecation of movable and immovable assets. Cash Credit is additionally secured by personal guarantee from some of the directors. The Cash Credit is repayable on demand and carries interest @ Bank Rate plus 2.5% presently 13.25%

Banking Relations :	--
Auditors :
Name :	M.M. Jaju and Company Chartered Accountants
Address :	308, Damji Shamji Trade Centre, Vidhyavihar (West), Kirol, Mumbai – 400086, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAIFM4685M

CAPITAL STRUCTURE

As on 14.08.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
25,000	Equity Shares	Rs.100/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25,000	Equity Shares	Rs.100/- each	Rs. 2.500 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	2.500	2.500	1.000
(b) Reserves & Surplus	21.261	20.733	18.917
(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)	23.761	23.233	19.917
(3) Non-Current Liabilities
(a) long-term borrowings	5.326	6.099	8.588
(b) Deferred tax liabilities (Net)	1.283	0.655	0.090
(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)	6.609	6.754	8.678
(4) Current Liabilities
(a) Short term borrowings	23.637	25.255	12.692
(b) Trade payables	72.071	69.703	64.348
(c) Other current liabilities	0.391	1.666	2.077
(d) Short-term provisions	8.938	10.064	11.825
Total Current Liabilities (4)	105.037	106.688	90.942
TOTAL	135.407	136.675	119.537
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	25.568	26.285	21.796
(ii) Intangible Assets	0.427	0.553	0.757
(iii) Capital work-in-progress	1.158	0.958	0.080
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.001	0.001	0.001
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.763	0.765	0.332
(e) Other Non-current assets	3.492	1.151	0.620
Total Non-Current Assets	31.409	29.713	23.586
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	9.543	10.449	9.732
(c) Trade receivables	78.451	73.619	70.242
(d) Cash and cash equivalents	14.515	20.127	14.221
(e) Short-term loans and advances	0.434	0.701	0.411
(f) Other current assets	1.055	2.066	1.345
Total Current Assets	103.998	106.962	95.951
TOTAL	135.407	136.675	119.537

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	237.348	285.137
		Other Income	1.555	1.419
		TOTAL (A)	238.903	286.556	247.346
Less	EXPENSES
		TOTAL (B)	234.266 (Including Depreciation and Financial Expenses)	270.145	233.429
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			16.411	13.917
Less	FINANCIAL EXPENSES (D)			2.329	1.885
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			14.082	12.032
Less/ Add	DEPRECIATION/ AMORTISATION (F)			1.846	1.616
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		4.637	12.236	10.416
Less	TAX (H)		1.916	3.681	3.332
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		2.721	8.555	7.084
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.948	10.631	8.049
Less	APPROPRIATIONS
		Transfer to General Reserve	0.500	1.000	1.000
		Dividend and Tax Thereon	2.194	5.238	3.502
	BALANCE CARRIED TO THE B/S		12.975	12.948	10.631
	EARNINGS IN FOREIGN CURRENCY		0.000	0.000	2.904
	IMPORTS
		Raw Materials	0.000	0.042	0.000
	TOTAL IMPORTS		0.000	0.042	0.000
	Earnings / (Loss) Per Share (Rs.)		108.83	855.46	708.00

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.14	2.99	2.86
Net Profit Margin (PBT/Sales)	(%)	1.95	4.29	NA
Return on Total Assets (PBT/Total Assets}	(%)	3.45	9.02	8.72
Return on Investment (ROI) (PBT/Networth)		0.20	0.53	0.52
Debt Equity Ratio (Total Debt/Networth)		1.22	1.35	1.07
Current Ratio (Current Asset/Current Liability)		0.99	1.00	1.06

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	1.000	2.500	2.500
Reserves & Surplus	18.917	20.733	21.261
Net worth	19.917	23.233	23.761
long-term borrowings	8.588	6.099	5.326
Short term borrowings	12.692	25.255	23.637
Total borrowings	21.280	31.354	28.963
Debt/Equity ratio	1.068	1.350	1.219

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 Income	247.346	286.556	238.903
		15.852	(16.630)

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 Income	247.346	286.556	238.903
Profit	7.084	8.555	2.721
	2.86%	2.99%	1.14%

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	No
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	90143502	23/06/2011 *	25,595,154.00	INDIAN OVERSEAS BANK	CHEDA NAGAR BRANCH, CHEDA NAGAR, MUMBAI - 400089, MAHARASHTRA, INDIA	B18441832

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
Term Loans Loan from Directors	5.067	5.840
Total	5.067	5.840

FINANCIAL RESULTS

The year ended 31st March 2013 was a difficult year for most of the Industries due to widespread slowdown emcompassing all industries. The year also saw a deceleration of the GDP. The operations of Metcon which caters significantly to the industrial consumers particularly the commercial vehicle industry, power transformers, corrosion protection were affected. The net sales dropped from Rs. 290.000 Millions to 240.000 Millions. The net profit after tax also dropped from 12.200 Millions to 4.600 Millions. The company expects a marginal increase in sales turnover in the current year. The company is focusing on exports to Africa and Sri Lanka. The first quarter of 2013-14 was better than the last year. However, the rupee depreciation might prove to be a dampener unless immediates steps are not taken to arrest the slide.

CONTINGENT LIABILITIES:

PARTICULARS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
Claims against the company not acknowledge as debts
Bank Guarantees for facilities availed by the company	0.476	0.476
On account of Letter of Credit	1.112	3.872
Demand from Cess Department NMMC for the period 2005-06 to 2008-09	8.061	7.991
Total	9.649	12.339

FIXED ASSETS

· Freehold Land

· Leasehold Land

· Buildings

· Plant and Equipment

· Vehicles

· Furniture and Fixtures

· Office Equipment

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.61.11
UK Pound	1	Rs.98.15
Euro	1	Rs.77.68

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUB
Report Prepared by :	MRI

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	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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	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		32

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.