MIRA INFORM REPORT

Report No. :	354554
Report Date :	15.12.2015

IDENTIFICATION DETAILS

Name :	POLYCHEM EXPORTS
Registered Office :	U/3227, 2^nd Floor, Surat Textile Market, Ring Road, Surat – 395002, Gujarat
Tel. No.:	91-261-2321100/ 2321200
Country :	India
Financials (as on) :	31.03.2015
Year of establishment :	1994
Capital Investment / Paid-up Capital :	Rs.28.611 Million
IEC No.:	3494000450
TIN No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AADFP1890N
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Trader and Importer of dyes and chemicals [Confirmed by management]
No. of Employees :	50 (Approximately)

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 82000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject was established in the year 1994 as partnership firm and it is engaged in importing and trading of dyes and chemicals. For the financial year ended 2015, the firm has achieved 73.94% growth in its revenue profile but failed to maintained profit margin and reported low margin at 49% during the year under review. Rating takes into consideration its modest scale of operations in the highly fragmented chemical trading industry and working capital-intensive operations. Rating weaknesses is mitigated by the partner’s extensive experience in the textile dyes and chemicals manufacturing and trading industry. Trade relations are reported as fair. Payments are reported to be slow but correct. In view of aforesaid, the partnership firm 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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

Rating Agency Name	CRISIL
Rating	Long Term Rating = B+
Rating Explanation	Risk-prone-credit-quality and carries very high credit risk.
Date	04.11.2015

Rating Agency Name	CRISIL
Rating	Short Term Rating = A4
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	04.11.2015

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Brijesh Mishra
Designation :	Exim Manager
Contact No.:	91-9979866487
Date :	14.12.2015

LOCATIONS

Registered Office :	U/3227, 2^nd Floor, Surat Textile Market, Ring Road, Surat – 395002, Gujarat, India
Tel. No.:	91-261-2321100/ 2321200
Mobile No.:	91-9979866487 (Mr. Brijesh)
Fax No.:	91-261-2321400
E-Mail :	sales@bccindia.com brijesh@bccindia.com
Website :	http://www.bccindia.com
Area :	1500 sq. ft.
Location :	Owned
Locality:	Commercial
Warehouse :	Plot No. 16, 17, Road No. 1, Surat Textile Market, Ring Toad, Surat – 395002, Gujarat, India
Mobile No.:	91-9377726888 (Mr. Vishnu)

PARTNERS

Name :	Mr. Krishankumar Nandlal Bhatia
Designation :	Partner
Name :	Mr. Brijalal Chandaram Bhatia
Designation :	Partner
Name :	Mr. Ashok Kumar Nandla Bhatia
Designation :	Partner
Name :	Mr. Rameshchandra Chandaram Bhatia
Designation :	Partner
Name :	Mr. Rajesh Kumar Liladhar Bhatia
Designation :	Partner

KEY EXECUTIVES

Name :	Mr. Brijesh Mishra
Designation :	Exim Manager

BUSINESS DETAILS

Line of Business :	Trader and Importer of dyes and chemicals [Confirmed by management]
Products :	Dyes Chemicals Textiles
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :
Products :	Dyes, Chemicals, Textiles
Countries :	Germany USA China Middle East
Terms :
Selling :	Cash, L\C and Credit [30,60 Days]
Purchasing :	Cash, L\C and Credit [30,60 Days]

GENERAL INFORMATION

Suppliers :

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

Customers :

Wholesalers, Retailers and End Users

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

No. of Employees :

50 (Approximately)

Bankers :

Banker Name	Indusind Bank Limited
Branch Address	Ring Road, Surat, Gujarat, India
Person Name (With Designation)	Not Available
Contact Number	91-261-2346723 [Continuously Ringing]
Name of Account Holder	Not Available
Account Number	Not Available
Account Since (Date/Year of Account Opening)	Not Available
Average Balance Maintained (If Possible)	Not Available
Credit Facilities Enjoyed (If any)	Cash Credit =Rs.110.000 Million [Not Confirm From Bank]
Account Operation	Not Available
Remarks (If any)	Not Available

Auditors :
Name :	DSI and Company Chartered Accountants
Address :	Surat, Gujarat, India
Tel. No.:	91-261-3992929 [Continuously Ringing]
Memberships :	Not Available
Collaborators :	Not Available
Group Companies :	Vap Chem Bhatia Coloring Company Shreenathji Industries Ravi Chem S.N. Enterprise S.E. Corporation Shreeji Dyestuffs

CAPITAL STRUCTURE

AS ON 31.03.2015

Capital Investment :
Owned :	Rs.28.611 Million
Borrowed :	--
Total :	Rs.28.611 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2015	31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		28.611	19.272	16.043
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		28.611	19.272	16.043
LOAN FUNDS
1] Secured Loans		66.018	75.880	45.337
2] Unsecured Loans		22.049	61.023	21.789
TOTAL BORROWING		88.067	136.903	67.126
DEFERRED TAX LIABILITIES
TOTAL		116.678	156.175	83.169
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.259	0.666	0.799
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	24.940	40.536	79.720
	Sundry Debtors	346.291	213.568	132.509
	Cash & Bank Balances	20.408	8.900	8.274
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	17.401	12.054	3.908
Total Current Assets		409.040	275.058	224.411
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	289.539	115.866	140.712
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	4.081	3.683	1.329
Total Current Liabilities		293.620	119.549	142.041
Net Current Assets		115.420	155.509	82.370
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		116.679	156.175	83.169

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	1005.057	577.803	380.250
	Other Income	1.408	0.716	0.830
	TOTAL (A)	1006.465	578.519	381.080
Less	EXPENSES
	Cost of Goods Sold	975.969	549.144	365.374
	Operating Expenses	0.116	0.402	0.335
	Sales and Administrative Expenses	4.678	4.433	2.283
	TOTAL (B)	980.763	553.979	367.992
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	25.702	24.540	13.088
Less	FINANCIAL EXPENSES (D)	18.244	19.384	8.906
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	7.458	5.156	4.182
Less/ Add	DEPRECIATION/ AMORTISATION (F)	0.223	0.120	0.146
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	7.235	5.036	4.036
Less	TAX (H)	2.266	1.566	1.246
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	4.969	3.470	2.790

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.49	0.60	0.73
Operating Profit Margin (PBIDT/Sales)	(%)	2.56	4.25	3.44
Return on Total Assets (PBT/Total Assets}	(%)	1.77	1.83	1.80
Return on Investment (ROI) (PBT/Networth)		0.25	0.26	0.25
Debt Equity Ratio (Total Debt /Networth)		3.08	7.10	4.18
Current Ratio (Current Asset/Current Liability)		1.39	2.30	1.58

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	16.043	19.272	28.611
Reserves & Surplus	0.000	0.000	0.000
Net worth	16.043	19.272	28.611
Long-term borrowings	45.337	75.880	66.018
Short term borrowings	21.789	61.023	22.049
Total borrowings	67.126	136.903	88.067
Debt/Equity ratio	4.184	7.104	3.078

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	380.250	577.803	1005.057
		51.953	73.945

NET PROFIT MARGIN

Net Profit Margin	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	380.250	577.803	1005.057
Profit	2.790	3.470	4.969
	0.73%	0.60%	0.49%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	Yes
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	No
10	Date of Birth of Proprietor / Partners / Directors	No
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	No
30	Major shareholders, if available	No
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

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.66.99
UK Pound	1	Rs.101.78
Euro	1	Rs.73.47

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	KAR
Report Prepared by :	GEET

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		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.