MIRA INFORM REPORT

Report No. :	354384
Report Date :	17.12.2015

IDENTIFICATION DETAILS

Name :	HR POLYCOATS PRIVATE LIMITED (w.e.f. 24.06.2009)
Formerly known as :	HR POLYCOATES PRIVATE LIMITED
Registered Office :	4257/2, Jai Mata Market, Tri Nagar, New Delhi - 110035
Tel. No.:	91-11-27397218/ 19
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	27.05.2009
Com. Reg. No.:	55-190654
Capital Investment / Paid-up Capital :	Rs. 43.974 Million
CIN No.: [Company Identification No.]	U17110DL2009PTC190654
IEC No.:	0510006329
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AACCH2278J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Artificial Leather. (Confirmed by Management)
No. of Employees :	350 (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 465000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company incorporated in the 2009. It is engaged manufacturing artificial leather and its manufacturing facilities located at Bahadurgarh, Haryana. It is having satisfactory track. Rating takes into consideration strong financial risk profile of the company marked by adequate networth base and comfortable gearing in FY15. Further the company has reported significant increase in sales turnover and profit, however reported thin profit margin in the year under consideration. Further, rating constraints on account of the company’s presence in a highly fragmented and competitive industry. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. In view of aforesaid, the company can be considered for business dealings with 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 – 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	CARE
Rating	Long term Bank facilities = (BB+)
Rating Explanation	Inadequate credit quality and high credit risk
Date	30.09.2015

Rating Agency Name	CARE
Rating	Short term Bank facilities = (A3)
Rating Explanation	Moderate degree of safety and higher credit risk
Date	30.09.2015

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. Ajay Verma
Designation :	Accounts Manager
Contact No.:	91-9215513043
Date :	11.12.2015

LOCATIONS

Registered Office :	4257/2, Jai Mata Market, Tri Nagar, New Delhi – 110035, India
Tel. No.:	91-11-27397218/ 19
Mobile No.:	91-9215513043 (Mr. Ajay Verma)
Fax No.:	Not Available
E-Mail :	info@hrcheetal.com ajayverma@hrcheetal.com mail@jda.net.in
Website :	http://www.hrcheetal.com
Location:	Owned
Locality:	Commercial
Factory :	46 Milestone, Dhekura Road, Village Rohad, Bahadurgarh - 124501, Haryana, India
Tel. No.:	91-1276-278026/ 27
Area :	4.50 Acre
Location:	Owned
Locality:	Industrial

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Harish Dhawan

Designation :

Director

Address :

A-3/203, Printer Appartment, Sector-13, Rohini, New Delhi - 110085, India

Date of Birth/Age :

07.09.1970

Date of Appointment :

27.05.2009

DIN No.:

02593508

Name :

Mr. Raj Kumar Dhawan

Designation :

Director

Address :

A-3/203, Printer Appartment, Sector-13, Rohini, New Delhi - 110085, India

Date of Birth/Age :

18.04.1976

Date of Appointment :

27.05.2009

DIN No.:

02593493

Name :

Mr. Ankit Malhotra

Designation :

Director

Address :

N-21, M and N Block, Double Storey, Pratap Nagar, Delhi -110007, India

Date of Birth/Age :

06.12.1981

Date of Appointment :

01.07.2010

DIN No.:

03025358

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	U45400DL2010PTC202457	INSPIRE INFRACON PRIVATE LIMITED	Director	11/05/2010	11/05/2010	01/03/2014	Active	NO
2	U17110DL2009PTC190654	HR POLYCOATS PRIVATE LIMITED	Director	01/07/2010	01/07/2010	-	Active	NO
3	U17210DL2011PTC228859	BEETA IMPEX PRIVATE LIMITED	Director	16/12/2011	16/12/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Ajay Verma
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Names of Shareholders	No. of Shares
Raj Kumar Dhawan	1460799
Harish Dhawan	1673445
Hema Dhawan	476000
Shiwali Dhawan	477178
KV Infracon Private Limited, India	20000
Shalini Holding Limited, India	5000
Alpine stores Private Limited, India	15000
Hamija Resorts	16000
Modi Commercial deals Limited, India	9000
Junoon Capital Services Private Limited	16000
Sunny Cast and Forge Limited, India	15000
Juneja Nagpal Constructions Private Limited, India	9000
Attractive Finlease Limited, India	15000
Apoorva Leasing Finance Investment Co. Limited, India	30000
SRK Pumps and Motors Private Limited, India	10000
Divakar Infosolutions Private Limited, Indai	20000
Megatech Realtors Private Limited, India	10000
Aman Infocomp Limited, india	40000
Wizard Realcon Private Limited, India	20000
Active Promotions private Limited, India	40000
Lea sales Company, India	20000
Total	4397422

AS ON 08.09.2015

Names of Allottees	No. of Shares
Harish Dhawan	359340
Raj Kumar Dhawan	130034
Total	489374

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Artificial Leather. (Confirmed by Management)
Brand Names :	--
Agencies Held :	--
Exports :
Products :	Finished Goods
Countries :	· Sri Lanka · Dubai
Imports :
Products :	Raw Material
Countries :	· Japan · Hong Kong · China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Chemplast Sanmar Limited
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

End Users

Reference:	K. K. Talwar Fabriks Private Limited
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

· Relaxo Footwears Limited

No. of Employees :

350 (Approximately)

Bankers :

Bank Name:	State Bank of India
Branch:	Sme, Industrial Complex Branch, Bahadurgarh - 124507, Haryana, 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 A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Cash Credit = Rs. 50.000 Million
Account Operation:	Not Divulged
Remarks:	Not Divulged

· State Bank of India

Industrial Complex Branch, Bahadurgarh - 124507, Haryana, India

· ICICI Bank Limited

Landmarkrace Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India

Facilities :

--

Auditors :
Name :	JDA and Company Chartered Accountants
Address :	217, Jaina Tower- I , District Centre, Janak Puri, New Delhi - 110058, India
Income-tax PAN of auditor or auditor's firm :	AAHFJ6257B
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital : Not Available

Issued, Subscribed & Paid-up Capital : Rs. 43.974 Million

AFTER 30.09.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs. 10/- each	Rs. 50.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,886,796	Equity Shares	Rs. 10/- each	Rs. 48.868 Million

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs. 10/- each	Rs. 50.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4,397,422	Equity Shares	Rs. 10/- each	Rs. 43.974 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	43.974	39.579	32.560
(b) Reserves & Surplus	118.624	86.329	61.969
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	9.355	0.000
Total Shareholders’ Funds (1) + (2)	162.598	135.263	94.529
(3) Non-Current Liabilities
(a) Long-term borrowings	123.806	162.285	88.272
(b) Deferred tax liabilities (Net)	14.655	9.545	6.033
(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)	138.461	171.830	94.305
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	296.840	259.819	194.547
(c) Other current liabilities	205.481	110.066	98.637
(d) Short-term provisions	5.851	4.518	1.011
Total Current Liabilities (4)	508.172	374.403	294.195
TOTAL	809.231	681.496	483.029
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	256.869	259.082	160.434
(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	1.067	1.182	1.179
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	257.936	260.264	161.613
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	66.283	103.824	49.794
(c) Trade receivables	458.111	301.978	264.555
(d) Cash and cash equivalents	14.532	12.147	6.588
(e) Short-term loans and advances	5.878	3.165	0.112
(f) Other current assets	6.491	0.118	0.367
Total Current Assets	551.295	421.232	321.416
TOTAL	809.231	681.496	483.029

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2015	31.03.2014	31.03.2013
	SALES
		Revenue from Operations	1534.406	1098.681	739.843
		Other Income	8.400	7.468	1.441
		TOTAL (A)	1542.806	1106.149	741.284
Less	EXPENSES
		Cost of Materials Consumed	1313.646	942.483	602.576
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	0.000	0.000	6.129
		Employees benefits expense	15.139	7.927	5.745
		Other expenses	133.196	100.689	82.419
		TOTAL (B)	1461.981	1051.099	696.869
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		80.825	55.050	44.415
Less	FINANCIAL EXPENSES (D)		35.132	25.774	22.859
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		45.693	29.276	21.556
Less/ Add	DEPRECIATION/ AMORTISATION (F)		16.450	7.412	6.088
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		29.243	21.864	15.468
Less	TAX (H)		5.640	8.030	7.316
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		23.603	13.834	8.152
	EARNINGS IN FOREIGN CURRENCY		NA	17.693	NA
	Earnings Per Share (Rs.)		5.37	3.50	2.50

Expected Sales (2015-2016): Rs.1800.000 Million

The above information has been parted by Mr. Ajay Verma (Accounts Manager)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	18.532	14.574
Cash Generated from Operations	NA	NA	NA
Net Cash Flow from used in Operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	1.54	1.26	1.10
Operating Profit Margin (PBDIT/Sales)	(%)	5.27	5.01	6.00
Return on Total Assets (PBT/Total Assets}	(%)	3.61	3.21	3.20
Return on Investment (ROI) (PBT/Networth)		0.18	0.16	0.16
Debt Equity Ratio (Total Debt/Networth)		0.76	1.34	1.09
Current Ratio (Current Asset/Current Liability)		1.08	1.13	1.09

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	32.560	39.579	43.974
Reserves & Surplus	61.969	86.329	118.624
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	9.355	0.000
Net worth	94.529	135.263	162.598
Long-term borrowings	88.272	162.285	123.806
Short term borrowings	0.000	0.000	0.000
Total borrowings	88.272	162.285	123.806
Debt/Equity ratio	0.934	1.200	0.761

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	739.843	1098.681	1534.406
		48.502	39.659

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	739.843	1098.681	1534.406
Profit	8.152	13.834	23.603
	1.10%	1.26%	1.54%

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	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
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	No
18	Major suppliers	Yes
19	Major customers	Yes
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	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10602382	18/11/2015	69,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJ  ARAT, INDIA	C70055769
2	10235641	01/10/2014 *	498,900,000.00	STATE BANK OF INDIA	SME IC BRANCH, BAHADURGARH, BAHADURGARH - 124507, HARYANA , INDIA	C31045420

* Date of charge modification

OPERATIONS

During the year the Company has incurred a profit of Rs. 21.864 Million. The Company is striving to do better in the coming year.

FIXED ASSETS:

· Buildings

· Plant and Equipment

· Other plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer Equipment’s

· Other Equipment’s

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.66.85
UK Pound	1	Rs.100.58
Euro	1	Rs.73.16

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	KIN
Report Prepared by :	ARC

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	YES
--AFFILIATION	YES/NO	NO
--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.