MIRA INFORM REPORT

Report Date :

29.09.2014

IDENTIFICATION DETAILS

Name :	RISHICHEM DISTRIBUTORS PRIVATE LIMITED
Registered Office :	B-104, Citi Point, J B Nagar, Andheri Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	03.07.1998
Com. Reg. No.:	11-115640
Capital Investment / Paid-up Capital :	Rs.16.130 Millions
CIN No.: [Company Identification No.]	U51900MH1998PTC115640
TAN No.: [Tax Deduction & Collection Account No.]	MUMR14845F
PAN No.: [Permanent Account No.]	AAACR7573G
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Distributor of Specialty Chemical.
No. of Employees :	40 (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 1035000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. There seems slight dip in profitability of the company during the financial year 2013. However, general financial position of the company appears to be sound and healthy. Trade relations are fair. Business is active. Payment terms are usually correct. 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 – 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 slowly 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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Mittal Chawla
Designation :	Finance Manager
Contact No.:	91-22-40952000
Date :	16.09.2014

LOCATIONS

Registered/ Head Office :	B-104, Citi Point, J B Nagar, Andheri Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra, India
Tel. No.:	91-22-40403200
Fax No.:	91-22-28266817
E-Mail :	sbaiwar@rishiroop.com info@rishichem.com akapoor@rishiroop.com
Website :	www.rishichem.com
Back Office :	B-501, Citi Point, Next to Kohinoor Continental, J. B. Nagar, Andheri Kurla Road, Andheri (East), Mumbai -  400059, Maharashtra, India
Tel. No.:	91-22-40403200
Fax No.:	91-22-40403258
E-Mail :	info@rishichem.com
Warehouse :	Located at Bhiwandi, Mumbai, Maharashtra, India
Branch Offices :	Located At : · Delhi Chennai Ahmedabad Bangalore Kolkata

DIRECTORS

As on 30.09.2012

Name :

Mr. Arvind Mahendra Kapoor

Designation :

Director

Address :

12, Manhar Oak, LD Ruparel, Cross Lane, Malabar Hill, Mumbai – 400006, Maharashtra India

Date of Birth/Age :

20.01.1954

Date of Appointment :

03.07.1998

DIN No.:

00002704

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	U24100MH1981PTC023727	DEVI ORGANICS PRIVATE LIMITED	Director	21/01/1981	21/01/1981	-	Active	NO
2	L25200MH1984PLC034093	PUNEET RESINS LIMITED	Director	24/09/1984	24/09/1984	-	Active	NO
3	U24100MH1989PTC054651	RISHIROOP POLYMERS PRIVATE LIMITED	Director	15/12/1989	15/12/1989	-	Active	NO
4	L25191GJ1990PLC017657	RISHIROOP RUBBER (INTERNATIONAL) LIMITED	Managing director	01/07/2010	05/11/1990	-	Active	NO
5	U67120MH1992PTC066414	RISHIROOP INVESTMENTS AND TRADING COMPANY PRIVATE LIMITED	Director	20/04/1992	20/04/1992	-	Active	NO
6	U51900MH1998PTC115640	RISHICHEM DISTRIBUTORS PRIVATE LIMITED	Director	03/07/1998	03/07/1998	-	Active	NO
7	U15490MH2000PTC127013	RISHI FOODS PRIVATE LIMITED	Director	06/06/2000	06/06/2000	-	Active	NO

Name :

Mr. Atul Rameshchandra Shah

Designation :

Director

Address :

D – 405/2, Karachi Citizens Co-operative Hosing Society, Juhu Versova Link Road, Mumbai – 400053, Maharashtra, India

Date of Birth/Age :

26.10.1949

Date of Appointment :

03.07.1998

DIN No.:

00004528

KEY EXECUTIVES

Name :	Mr. Mittal Chawla
Designation :	Finance Manager

MAJOR SHAREHOLDERS

As on 30.09.2012

Names of Shareholders	No. of Shares	% of Holding
Rishiroop Holding Private Limited, India	80650	50.00
Rishiroop Polymers Private Limited, India	80650	50.00
Total	161300	100.00

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2012

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader and Distributor of Specialty Chemical.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· Eastman Chemicals Limited

· Kraton Polymers, USA

Customers :

End Users

No. of Employees :

40 (Approximately)

Bankers :

Citibank N A, Trent House, 2^nd Floor, G Block, Plot No. C60, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
LONG TERM BORROWINGS
Term Loan From Banks	0.243	0.384
SHORT TERM BORROWINGS
Working Capital Loans From Banks	59.162	51.364
Total	59.405	51.748

Banking Relations :	--
Auditors :
Name :	Jayesh Dadia and Associates Chartered Accountants
Address :	422, Arun Chambers, Tardeo, Mumbai - 400034, Maharashtra, India
PAN No:	AADFJ3735C
Associates:	· Rishiroop Polymers Private Limited CIN No.: U24100MH1989PTC054651 · Rishi Foods Private Limited CIN No.: U15490MH2000PTC127013 · Rishiroop Holding Private Limited CIN No.: U67120MH1984PTC032928 · Rishichem Mideast Limited
Other Related Parties :	· Puneet Rresins Limited · Rishiroop Rubber (International) Limited · Rishiroop Investment and Trading Company Private Limited · Devi Organics Private Limited · Puneet Polymers

CAPITAL STRUCTURE

As on 30.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value		Amount
161300	Equity Shares	Rs.100/- each	Rs.16.130 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	16.130	16.130	16.130
(b) Reserves & Surplus	242.713	206.117	151.622
(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)	258.843	222.247	167.752
(3) Non-Current Liabilities
(a) long-term borrowings	0.243	0.384	61.547
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.579	0.527	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	0.822	0.911	61.547
(4) Current Liabilities
(a) Short term borrowings	59.162	51.364	0.000
(b) Trade payables	81.801	90.150	142.842
(c) Other current liabilities	5.048	9.459	5.676
(d) Short-term provisions	4.423	4.224	6.729
Total Current Liabilities (4)	150.434	155.197	155.247
TOTAL	410.099	378.355	384.546
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3.736	4.586	4.876
(ii) Intangible Assets	0.246	0.369	0.553
(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	6.600	6.600	4.100
(c) Deferred tax assets (net)	0.393	0.389	0.167
(d) Long-term Loan and Advances	5.272	5.277	5.241
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	16.247	17.221	14.937
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	200.891	141.711	207.117
(c) Trade receivables	180.216	209.918	155.397
(d) Cash and cash equivalents	7.108	5.814	3.332
(e) Short-term loans and advances	2.453	3.314	0.863
(f) Other current assets	3.184	0.377	2.900
Total Current Assets	393.852	361.134	369.609
TOTAL	410.099	378.355	384.546

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		1051.973	1226.976	1002.308
				(Due to market fluctuation)
		Other Income		NA	NA	NA
		TOTAL		NA	NA	NA
	EXPENSES			NA	NA	NA
	PROFIT/(LOSS) BEFORE TAX			73.422	100.395	98.312
Less	TAX			23.703	32.778	33.017
	PROFIT/(LOSS) AFTER TAX			49.719	67.617	65.295
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			167.482	122.987	80.846
Less	APPROPRIATIONS
			Transfer to General Reserve	5.100	10.000	10.000
			Dividend (Interim and Final)	11.291	11.291	11.291
			Tax on Dividend	1.832	1.831	1.863
	BALANCE CARRIED TO THE B/S			198.978	167.482	122.987
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings		3.559	0.000
			Indenting Commission		2.203	2.338
	TOTAL EARNINGS			9.289	5.762	2.338
	IMPORTS
			Raw Materials	719.747	822.835	693.528
	TOTAL IMPORTS			719.747	822.835	693.528
	Earnings / (Loss) Per Share (Rs.)			308.23	419.20	404.80

Particulars	31.03.2014
Sales Turnover (Approximately)	1065.000

Expected Sales (2014-2015): Rs.1100.000 Millions

The above information has been parted by Mr. Mittal Chawla (Finance Manager).

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PBT/Sales)	(%)	6.97	8.18	9.81
Return on Total Assets (PBT/Total Assets}	(%)	18.21	27.03	25.85
Return on Investment (ROI) (PBT/Networth)		0.28	0.45	0.59
Debt Equity Ratio (Total Debt /Networth)		0.23	0.23	0.37
Current Ratio (Current Asset/Current Liability)		2.62	2.33	2.38

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	16.130	16.130	16.130
Reserves & Surplus	151.622	206.117	242.713
Net worth	167.752	222.247	258.843
long-term borrowings	61.547	0.384	0.243
Short term borrowings	0.000	51.364	59.162
Total borrowings	61.547	51.748	59.405
Debt/Equity ratio	0.367	0.233	0.230

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
Sales	1002.308	1226.976	1051.973
		22.415	(14.263)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	1002.308	1226.976	1051.973
Profit	65.295	67.617	49.719
	6.51%	5.51%	4.73%

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 three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	Yes
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
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	No
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

PERFORMANCE

During the financial year ended 31^st March, 2013, the company operating revenue decreased from Rs. 1226.976 Millions to Rs.1051.973 Millions. The Profit after Tax (PAT) decreased from Rs. 67.618 Millions to Rs. 49.719 Millions. The company continues to add new product lines in its product portfolio with the joint initiative from suppliers and customers to meet their growing requirement

CONTINGENT LIABILITIES (As on 31.03.2013)

(a) The company has filed rectification before Asst. Commissioner of Sales Tax-Business Audit IV against the notice of CST Demand of Rs.5.324 Millions for Financial Year 2008-09. Hence no provision is made in the accounts.

(b) The company has filed appeal before The Deputy Commissioner of Sales Tax-Appeal IV against the notice of VAT Demand of Rs.0.058 Million for Financial Year 2008-09. Hence no provision is made in the accounts.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10087402	16/06/2011 *	200,000,000.00	Citibank N. A.	Trent House, 2nd Floor, G Block, Plot No.C60, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra , India	B15372345

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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.61.57
UK Pound	1	Rs.100.42
Euro	1	Rs.78.45

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	RAS
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--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.