MIRA INFORM REPORT

Report No. :	309804
Report Date :	27.02.2015

IDENTIFICATION DETAILS

Name :	GMM COATINGS PRIVATE LIMITED
Registered Office :	B/102/2, Angle Complex, Near Old High Court Railway, Crossing, Next to Hotel Oasis, Stadium, Ahmedabad – 380014, Gujarat
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	30.11.2010
Com. Reg. No.:	04-063082
Capital Investment / Paid-up Capital :	Rs.4.600 Million
CIN No.: [Company Identification No.]	U24220GJ2010PTC063082
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	AHMG04592A
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Stick coating, Industrial coating, special coating, soft-touch coating, appliances coating, exterior coatings, handle coating.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ca (13)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The Company has incurred huge accumulated losses which has eroded the net worth of the company during FY 2013-14 However, business is active as per status shown in the registrar of companies. Payment terms are reported to be slow. The company can be considered for business dealings on safe and secured 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 – 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

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 DENIED

Management non co-operative

LOCATIONS

Registered Office :	B/102/2, Angle Complex, Near Old High Court Railway, Crossing, Next to Hotel Oasis, Stadium, Ahmedabad – 380014, Gujarat, India
Tel. No.:	91-2764-285034/285041/ 285031
Fax No.:	91-2764-285051
E-Mail :	Nitesh.goswami@gmail.com
Area :	Not Available
Location :	Not Available

DIRECTORS

As on : 30.09.2014

Name :	Mr. Jignesh V Patel
Designation :	Director
Address :	A-304, Ratnajyot Complex, Part - 1, Near, Rameshwar Mahadev, Nirnay Nagar, Ahmedabad – 382481, Gujarat, India
Date of Birth/Age :	18.12.1974
Date of Appointment :	15.12.2010
DIN No.:	03364226
Name :	Mr. Nitesh K. Goswami
Designation :	Director
Address :	8/90, Netaji Nagar, Gujarat Housing Board, Meghani Nagar, Ahmedabad – 380016, Gujarat, India
Date of Birth/Age :	27.01.1977
Date of Appointment :	16.05.2011
DIN No.:	03529171

KEY EXECUTIVES

Name :	Ms. Mansi Patel
Designation :	Purchase Executive
Mobile No.:	91-9099903133

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 30.09.2014

Names of Shareholders	No. of Shares
Sanjiv Gandhi	5000
Mayank Marfatia	4800
Kwok PO Wah (Hongkong)	225000
GMM Holdings LLC (USA)	225000
Ravin Gandhi	100
Bela Gandhi (USA)	100
Total	460000

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	97.87
Other top fifty shareholders	2.13
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Supplier of Stick coating, Industrial coating, special coating, soft-touch coating, appliances coating, exterior coatings, handle coating.
Products :	Epoxy powder coating Crusher backing compound Polyester powder coating Powder coating Steel coating Coating chemicals
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :	Not Divulged
Terms :	Not Divulged

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 :

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 :

Not Divulged

Bankers :

Banker Name	HDFC Bank
Branch Address	Not Divulged
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 :

(Rs. In Million)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Loan from Bank :
HDFC Bank – Secured against vehicle	0.000	0.234
Kotak Mahindra Bank – Secured Against Vehicle	0.445	0.642
Short Term Borrowing
HDFC Current Account (Book Overdraft)	0.087	0.000
Total	0.532	0.876

Auditors :
Name :	Sharp and Tannan Associates Chartered Accountant
Address :	Geeta Kunj, 1 Bhaktinagar Society, Behind ABS Towers, Old Padra Road, Baroda – 390007, Gujarat, India
PAN No.:	AAAFS1034J
Memberships :	Pramod Bhise
Collaborators :	Not Available
Sister Concern :	Not Available

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
460000	Equity Shares	Rs.10/- each	Rs.4.600 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	4.600	4.600	4.600
(b) Reserves & Surplus	(13.525)	(4.159)	(5.314)
(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)	(8.925)	0.441	(0.714)
(3) Non-Current Liabilities
(a) long-term borrowings	0.444	0.876	0.000
(b) Deferred tax liabilities (Net)	0.390	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)	0.834	0.876	0.000
(4) Current Liabilities
(a) Short term borrowings	0.087	0.000	1.297
(b) Trade payables	81.560	50.729	45.833
(c) Other current liabilities	40.522	17.215	0.097
(d) Short-term provisions	2.876	1.613	0.548
Total Current Liabilities (4)	125.045	69.557	47.775
TOTAL	116.954	70.873	47.061
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	13.583	16.372	16.496
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	4.445	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	3.153	3.096
(d) Long-term Loan and Advances	0.387	0.387	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	18.415	19.912	19.592
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	53.520	34.360	13.271
(c) Trade receivables	26.835	12.293	5.061
(d) Cash and cash equivalents	16.461	4.034	5.125
(e) Short-term loans and advances	1.608	0.123	0.342
(f) Other current assets	0.115	0.151	3.670
Total Current Assets	98.539	50.961	27.469
TOTAL	116.954	70.873	47.061

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	148.536	127.120	70.452
		Other Income	1.550	0.490	0.192
		TOTAL	150.086	127.610	70.644
Less	EXPENSES
		Cost of Materials Consumed	122.328	104.175	58.612
		Purchases of Stock-in-Trade	12.234	10.484	0.000
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(2.361)	(3.720)	(0.525)
		Employees benefits expense	7.617	5.307	0.000
		Administrative Expenses	0.000	0.000	10.524
		Other expenses	10.844	7.811	8.051
		TOTAL	150.662	124.057	76.662
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(0.576)	3.553	(6.018)
Less	FINANCIAL EXPENSES		4.178	1.124	0.090
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(4.754)	2.429	(6.108)
Less/ Add	DEPRECIATION/ AMORTISATION		1.069	1.331	0.993
	PROFIT/LOSS BEFORE TAX		(5.823)	1.098	(7.101)
Less	TAX		3.543	(0.056)	(2.503)
	PROFIT / LOSS AFTER TAX		(9.366)	1.155	(4.598)
	Earnings Per Share (Rs.)		(20.36)	2.51	(10.00)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(6.31)	0.91	(6.53)
Operating Profit Margin (PBITD/Sales)	(%)	(0.39)	2.79	(8.54)
Return on Total Assets (PBT/Total Assets}	(%)	(5.18)	1.62	(16.15)
Return on Investment (ROI) (PBT/Networth)		0.65	2.49	9.95
Debt Equity Ratio (Total Debt /Networth)		(0.06)	1.99	(1.82)
Current Ratio (Current Asset/Current Liability)		0.79	0.73	0.57

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	4.600	4.600	4.600
Reserves & Surplus	(5.314)	(4.159)	(13.525)
Net worth	(0.714)	0.441	(8.925)
long-term borrowings	0.000	0.876	0.444
Short term borrowings	1.297	0.000	0.087
Total borrowings	1.297	0.876	0.531
Debt/Equity ratio	(1.817)	1.986	(0.059)

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	70.452	127.120	148.536
		80.435	16.847

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	70.452	127.120	148.536
Profit	(4.598)	1.155	(9.366)
	(6.53%)	0.91%	(6.31%)

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	Yes
18]	Major customers	Yes
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

NOTE :

OPERATION :

The company has achieved jump in the turnover as compared to last year. Total income stood at Rs.150.086 Million as compared to last year’s of Rs.127.610 Million which is increase by 17.61%. However due to higher material cost and employee expenses, the Company has made loss before depreciation and interest of Rs.0.576 Million as compared to last year’s profit of Rs.3.554 Million . Further, due to jump in finance cost due to exchange loss and higher deferred tax provisions, the Company has made Net loss after tax of Rs.9.366 Million as compared to last year’s profit of Rs.1.155 Million. Overall, even though top line has shown improvement, the bottom line has been affected by many reasons.

FUTURE PROSPECTS :

The Company has good future prospectus considering the products manufactured by the company. Cookware market is ever growing market and demand of non stick has also been increasing for the last few years. There are few manufacturers of non stick coating in India and so the company is also focusing on international market and planning to export more of its products to various countries.

NOTE:

The registered address of the company has been shifted from 16/10, Devendra Society, Naranpura, Ahmedabad – 380013, Gujarat, India to the present address w.e.f 23.03.2012

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

FIXED ASSETS

• Lease Hold Building
• Plant and Equipment
• Furniture and Fixture
• Computer
• Office Equipment
• Vehicle
• Air Condition

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.62.04
UK Pound	1	Rs.96.02
Euro	1	Rs.70.42

INFORMATION DETAILS

Analysis Done by :	SUM
Report Prepared by :	SUJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILITY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	2
--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	NO
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		13

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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.