MIRA INFORM REPORT

Report No. :	315186
Report Date :	03.04.2015

IDENTIFICATION DETAILS

Name :	HINDUSTAN GREASE MFG COMPANY PRIVATE LIMITED
Registered Office :	C-17/4, Ground Floor, Shivaji Park, Punjabi Bagh, New Delhi – 110 026
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	15.01.1998
Com. Reg. No.:	55-091730
Capital Investment / Paid-up Capital :	Rs.4.211 million
CIN No.: [Company Identification No.]	U23201DL1998PTC091730
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	DELH05427C
PAN No.: [Permanent Account No.]	AABCH0647N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of High Tech Grease, Lubricants, Engine Oil, Gear Oil, Coolent, etc.
No. of Employees :	Approximately 110 (In Office: 5 and In Factory: 105)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 17000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Management has reported low profit margin as well as reserves during FY 14. However, trade relations seem to be fair. Business is active. Payment terms are reported as slow but correct. In view of modest scale of operations, the company can be considered for business dealings with 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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

NOT AVAILABLE

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. Anil Kumar Bhalla
Designation :	Director
Contact No.:	91-9810035104
Date :	31.05.2014

LOCATIONS

Registered Office :	C-17/4, Ground Floor, Shivaji Park, Punjabi Bagh, New Delhi – 110 026, India
Tel. No.:	91-11-25472041/ 28314030
Mobile No.:	91-9717170909 (Mr. Gaurav Bhalla) 91-9810035104 (Mr. Anil Kumar Bhalla)
Fax No.:	91-11-45540769
E-Mail :	hindustan_grease@yahoo.co.in info@hindustangrease.com magniphi@gmail.com
Website :	www.hindustangrease.com
Location :	Owned
Factory :	K-31, Udyog Nagar, Industrial Estate, Rohtak Road, New Delhi – 110 041, India

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Tilak Raj Bhalla

Designation :

Director

Address :

M-8, Guru Harkishan Nagar, Paschim Vihar, New Delhi – 110 087, India

Date of Birth/Age :

10.08.1954

Qualification :

Graduate

Date of Appointment :

15.01.1998

DIN No.:

01198376

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	U74899DL1995PTC068359	ZENOL INTERNATIONAL PRIVATE LIMITED	Director	09/05/1995	09/05/1995	-	Active	NO
2	U23201DL1998PTC091730	HINDUSTAN GREASE MFG COMPANY PRIVATE LIMITED	Director	15/01/1998	15/01/1998	-	Active	NO
3	U18101DL2005PTC131998	VARIETY FABRICS AND GARMENTS PRIVATE LIMITED	Director	28/03/2005	28/03/2005	10/02/2015	Active	NO
4	U45200DL2007PTC159612	BSN BUILDWELL PRIVATE LIMITED	Director	22/02/2007	22/02/2007	-	Active	NO
5	U51311DL2005PTC131852	RIZOL PETRO PRODUCTS PRIVATE LIMITED	Director	01/07/2009	01/07/2009	-	Active	NO

Name :

Mr. Anil Kumar Bhalla

Designation :

Director

Address :

M-8, Guru Harkishan Nagar, Paschim Vihar, New Delhi – 110 087, India

Date of Birth/Age :

02.05.1958

Qualification :

Graduate

Date of Appointment :

15.01.1998

DIN No.:

00796537

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	U74899DL1995PTC068359	ZENOL INTERNATIONAL PRIVATE LIMITED	Director	09/05/1995	09/05/1995	-	Active	NO
2	U23201DL1998PTC091730	HINDUSTAN GREASE MFG COMPANY PRIVATE LIMITED	Director	15/01/1998	15/01/1998	-	Active	NO
3	U51311DL2005PTC131852	RIZOL PETRO PRODUCTS PRIVATE LIMITED	Director	28/03/2005	28/03/2005	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Gaurav Bhalla
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares	Percentage of Holding
Tilak Raj Bhalla	229558	54.52
Anil Kumar Bhalla	104010	24.70
Tilak Raj Bhalla and Sons, India	40000	9.50
Anil Kumar Bhalla and Sons, India	30000	7.12
Mani Mala Delhi Properties Private Limited, India	10000	2.37
Micro Land Developers Private Limited, India	7500	1.79
Total	421068	100.00

AS ON 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	4.16
Directors or relatives of Directors	95.84
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of High Tech Grease, Lubricants, Engine Oil, Gear Oil, Coolent, etc.
Products :	High Tech Grease Lubricants Engine Oil Gear Oil Coolent etc.
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Cheque

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Wholesalers

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

Approximately 110 (In Office: 5 and In Factory: 105)

Bankers :

Banker Name	Punjab National Bank
Branch Address	Rajouri Garden, Delhi, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Term Loans	0.000	1.226
Total	0.000	1.226

Banking Relations :	--
Auditors :
Name :	Jagdish Aggarwal and Company Chartered Accountants
Address :	S-2, Vikas House, 34/1, Punjabi Bagh East, New Delhi – 110 026, India
Tel. No. :	91-11-28314020/ 42460006
E-Mail :	info@magniphi.com
PAN No.:	AAEFJ4089L
Memberships :	Not Available
Collaborators :	Not Available
Subsidiaries :	Rizol Petro Products Private Limited (CIN No.: U51311DL2005PTC131852)
Enterprises owned or significantly influenced by key management personnel or their relatives :	Anil Kumar Bhalla and Sons HUF Tilak Raj Bhalla and Sons HUF

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
421068	Equity Shares	Rs.10/- each	Rs.4.211 million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	4.211	4.211	4.211
(b) Reserves & Surplus	1.591	1.452	1.317
(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)	5.802	5.663	5.528
(3) Non-Current Liabilities
(a) Long-term borrowings	9.391	7.748	8.148
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(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)	9.391	7.748	8.148
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	0.814	4.058	2.639
(c) Other current liabilities	1.052	1.134	0.113
(d) Short-term provisions	0.058	0.053	0.000
Total Current Liabilities (4)	1.924	5.245	2.752
TOTAL	17.117	18.656	16.428
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4.750	5.486	6.376
(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	0.060	0.060	0.060
(c) Deferred tax assets (net)	0.041	0.048	0.055
(d) Long-term Loan and Advances	0.325	0.325	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	5.176	5.919	6.491
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	8.769	6.876	4.802
(c) Trade receivables	2.597	3.982	3.895
(d) Cash and cash equivalents	0.570	0.983	0.738
(e) Short-term loans and advances	0.005	0.896	0.477
(f) Other current assets	0.000	0.000	0.025
Total Current Assets	11.941	12.737	9.937
TOTAL	17.117	18.656	16.428

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	14.731	14.603	14.388
		Other Income
		TOTAL	14.731	14.603	14.388
Less	EXPENSES
		TOTAL	13.615	12.347	12.142
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		1.116	2.256	2.246
Less	FINANCIAL EXPENSES		0.089	1.102	1.360
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		1.027	1.154	0.886
Less/ Add	DEPRECIATION/ AMORTISATION		0.823	0.959	0.694
	PROFIT/ (LOSS) BEFORE TAX		0.204	0.195	0.192
Less	TAX		0.065	0.060	0.061
	PROFIT/ (LOSS) AFTER TAX		0.139	0.135	0.131
	Earnings / (Loss) Per Share (Rs.)		0.33	0.32	0.31

Expected Sales (2014-2015): Rs.25.000 million

The above information has been parted by Mr. Anil Bhalla (Director).

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Total Income)	(%)	0.94	0.92	0.91
Operating Profit Margin (PBDIT/Total Income)	(%)	7.58	15.45	15.61
Return on Total Assets (PBT/Total Assets}	(%)	1.20	1.05	1.18
Return on Investment (ROI) (PBT/Networth)		0.04	0.03	0.03
Debt Equity Ratio (Total Debt/Networth)		1.62	1.37	1.47
Current Ratio (Current Asset/Current Liability)		6.21	2.43	3.61

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(INR in Million)	(INR in Million)	(INR in Million)
Share Capital	4.211	4.211	4.211
Reserves & Surplus	1.317	1.452	1.591
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	5.528	5.663	5.802
Long Term borrowings	8.148	7.748	9.391
Short Term borrowings	0.000	0.000	0.000
Total borrowings	8.148	7.748	9.391
Debt/Equity ratio	1.474	1.368	1.619

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(INR in Million)	(INR in Million)	(INR in Million)
Total Income	14.388	14.603	14.731
		1.494	0.877

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(INR in Million)	(INR in Million)	(INR in Million)
Total Income	14.388	14.603	14.731
Profit	0.131	0.135	0.139
	0.91%	0.92%	0.94%

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%	-----
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
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	No
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

Note:

The registered office address of the company has been shifted from 31-B, Madan Park, Rohtak Road, Delhi – 110 026, India, to present address w.e.f. 21.10.2011.

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG TERM BORROWINGS
Other Loans and Advances
Borrowing from – Director/ Shareholders/ Relatives	9.391	6.522
Total	9.391	6.522

INDEX OF CHARGES

No Charges Exist for Company.

FIXED ASSETS

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Computers

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.62.59
UK Pound	1	Rs.92.46
Euro	1	Rs.67.51

INFORMATION DETAILS

Information Gathered by :	MNJ
Analysis Done by :	SUB
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
-- PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		30

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.