MIRA INFORM REPORT

Report No. :	301853
Report Date :	08.01.2015

IDENTIFICATION DETAILS

Name :	INDIANA ACIDS AND CHEMICALS PRIVATE LIMITED
Registered Office :	228-A, Industrial Area A , Ludhiana - 141001, Punjab
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	06.01.1992
Com. Reg. No.:	16-011879
Capital Investment / Paid-up Capital :	Rs. 4.077 Millions
CIN No.: [Company Identification No.]	U24119PB1992PTC011879
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in the processing and trading of inks and chemicals.
No. of Employees :	Not Available

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

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Profitability of the company seems to be low during 2014. However, general financial position of the company seems to be decent. Trade relations are fair. Business is active. Payment terms are reported to be slow but 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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

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

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.

LOCATIONS

Registered Office :	228-A, Industrial Area A , Ludhiana - 141001, Punjab, India
Tel. No.:	91-161-2222040/ 2224963/ 5014340
Fax No.:	91-161-2600972
E-Mail :	yash.dev@indianaacid.com sales@inianaacid.com indiana@satyam.net.in

DIRECTORS

As on 30.09.2014

Name :	Mr. Nirmal Sood
Designation :	Whole Time Director
Address :	H. No 196 Sector A, Agar Nagar, Ludhiana - 141001, Punjab, India
Date of Birth/Age :	21.06.1933
Date of Appointment :	07.10.2012
DIN No.:	02427335
Name :	Mr. Om Parkash Sood
Designation :	Whole Time Director
Address :	H. No 196, Sector A, Agar Nagar, Ludhiana - 141001, Punjab, India
Date of Birth/Age :	06.06.1928
Date of Appointment :	07.10.2012
DIN No.:	02427415
Name :	Mr. Rakesh Sood
Designation :	Managing Director
Address :	Agar Nagar, 196 A Ludhiana - 141001, Punjab, India
Date of Birth/Age :	12.09.1953
Date of Appointment :	07.10.2012
DIN No.:	00996577
Name :	Mr. Suresh Sood
Designation :	Whole Time Director
Address :	196-A, Agar Nagar, Ludhiana - 141001, Punjab, India
Date of Birth/Age :	27.11.1983
Date of Appointment :	07.10.2012
DIN No.:	00996632
Name :	Mrs. Veena Sood
Designation :	Whole Time Director
Address :	H. No 196 Sector A, Agar Nagar, Ludhiana - 141001, Punjab, India
Date of Birth/Age :	12.10.1955
Date of Appointment :	07.10.2012
DIN No.:	01909376

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares
Rakesh Sood	184803
Om Parkash Sood	86801
Rajiv Sood	16941
Veena Sood	76301
Nirmal Sood	42701
Anu	14
Minashi Bansal	14
Monika Bansal	14
M.R. Saluja	14
Rajinder Kapoor	14
Raj Rani Berry	14
Vishal Berry	14
Prem Late	14
Pravin Kumar	14
Ashwani Kumar	14
Tirath Ram Sekri	14
Jagdish Aggarwal	14
Uma Saluja	14
Seema Kapoor	14
Total	407743

As on 30.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the processing and trading of inks and chemicals.
Products :	Inks and Chemicals
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :	Not Available

GENERAL INFORMATION

Suppliers :

• Banwait Enterprises
• CJ. Shah and Company
• Chakkar Dhar
• Creative Industries
• Salarksa Enterprises
• Sanman Trade Impex Private Limited
• Sterling Auxiliries Private Limited
• Suyog Industries
• Gandhi Cycle Mumbai

Customers :

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

No. of Employees :

Not Available

Bankers :

Banker Name 1	Bank of India
Branch Address	S. and M. E. Branch, Industrial Area-A, Ludhiana - 141003, Punjab, India
Banker Name 2	Punjab National Bank
Branch Address	Chaura Bazar, Ludhiana, Punjab, India
Person Name (With Designation)	Not Available
Contact Number	Not Available
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)	Not Available
Account Operation	Not Available
Remarks (If any)	Not Available

• IDBI Bank Limited
• HDFC Bank Limited
• Deutsche Bank AG, Sco 9-10, Green Park Avenue, Canal Colony, Pakhow Al Road, Ludhiana - 141002, Punjab, India

Facilities :

(Rs. In Millions)

SECURED LOAN	As on 31.03.2014	As on 31.03.2013
Short Term Borrowing
Bank of India Cash Credit 221 (Secured against Book Debts)	26.846	26.000
Bank of India Cash Credit 220 ((Secured against hypothecation of stock)	6.208	3.288
Bank of India L/C A/c	3.175	0.000
HDFC loan A/c Tata 407	0.000	0.141
Total	36.229	29.429

Notes: As per Sanction Dated 13.03.2014

Primary Security – The credit facilities sectioned from Bank of India is secured by Stock, Book Debts and Plant and Machinery.

Collateral Security – Extension of Equitable mortgage of property comprising land and building suitated at Plot No. 228-B, M. C. B-231760/407/1, Industrial Area – A, Ludhiana, owned by Mr.Rakesh Sood.

Rate of Interest - @3.90% over base rates as on 13.03.2014 14.10% P.A. with monthly rests.

Auditors :
Name :	Saar and Associates Chartered Accountant
Address :	376, Nanak Puri, Miller Ganj, Ludhiana – 141003, Punjab, India
Tel. No.:	91-161-4607478
PAN No.:	AAHFR8283P
Memberships :	Not Available
Collaborators :	Not Available
Enterprises over which reporting enterprises or shareholders of the company and their relatives or key management personnel and their relatives have significant influence : (as on 31.03.2013)	Indian Adhesive and Chemicals Print Solutions India Indiana Acids and Chemicals RR Bulk Carriers

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs. 6.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
407743	Equity Shares	Rs.10/- each	Rs. 4.077 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

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	4.077	4.077	4.077
(b) Reserves & Surplus	14.338	12.318	11.237
(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)	18.415	16.395	15.314
(3) Non-Current Liabilities
(a) long-term borrowings	17.834	19.920	16.541
(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)	17.834	19.920	16.541
(4) Current Liabilities
(a) Short term borrowings	36.229	29.429	30.405
(b) Trade payables	75.238	37.722	38.405
(c) Other current liabilities	19.475	23.889	10.852
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	130.942	91.040	79.662
TOTAL	167.191	127.355	111.517
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	3.053	3.629	4.048
(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)	0.092	(0.180)	0.164
(d) Long-term Loan and Advances	5.018	4.277	4.050
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	8.163	7.726	8.262
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	34.859	18.106	22.026
(c) Trade receivables	114.664	95.400	77.460
(d) Cash and cash equivalents	8.094	3.480	2.510
(e) Short-term loans and advances	1.411	2.643	1.259
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	159.028	119.629	103.255
TOTAL	167.191	127.355	111.517

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	TOTAL INCOME	395.653	287.918	242.026
Less	EXPENSES	393.029	285.573	239.557
	PROFIT/ (LOSS) BEFORE TAX	2.624	2.345	2.469
Less	TAX	0.605	1.264	0.796
	PROFIT/ (LOSS) AFTER TAX	2.019	1.081	1.673
	Earnings Per Share (Rs.)	4.95	2.65	4.10

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	1.57	1.84	2.22
Return on Investment (ROI) (PBT/Networth)		0.14	0.14	0.16
Debt Equity Ratio (Total Debt /Networth)		2.94	3.01	3.07
Current Ratio (Current Asset/Current Liability)		1.21	1.31	1.30

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	4.077	4.077	4.077
Reserves & Surplus	11.237	12.318	14.338
Net worth	15.314	16.395	18.415
long-term borrowings	16.541	19.920	17.834
Short term borrowings	30.405	29.429	36.229
Total borrowings	46.946	49.349	54.063
Debt/Equity ratio	3.066	3.010	2.936

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	242.026	287.918	395.653
		18.962	37.419

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	242.026	287.918	395.653
Profit	1.673	1.081	2.019
	0.69%	0.38%	0.51%

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	No
10]	Designation of contact person	No
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	Yes
17]	Major suppliers	Yes
18]	Major customers	No
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

UNSECURED LOAN

(Rs. In Million)

Particulars	As on 31.03.2014	As on 31.03.2013
Long Term Borrowing
Asha Rani	0.844	0.774
Bhavna Sood	0.249	0.220
Harish Kumar Sood – Ludhiana	0.300	0.300
Indiana Dyeing Chemicals Ludhiana	0.153	0.153
Manju Rani – Ludhiana	0.200	0.200
Mela Ram Rakesj Kumar	0.075	0.075
Neha Sood	0.051	0.045
Om Prakash Sood	1.907	1.680
Om Prakash Sood HUF	0.194	0.647
Prem Lata	0.890	0.784
Rakesh K.Sood – Ludhiana	2.783	7.302
Rakesh Kumar Sood HUF	4.226	3.088
Sanjeev Kumar And Sons HUF	0.766	0.674
Mrs.Nirmal Sood – Ludhiana	0.827	0.729
Suresh Sood	0.768	0.000
Neena Sood	3.601	3.249
Total	17.834	19.920

OPERATIONS

During the year total income of the company is Rs. 395.653 Millions as compared to Rs.287.918 Millions during the previous financial year. The company has earned a net profit after tax of Rs. 2.019 Millions during the year compared to a net profit after tax of Rs. 1.081 Millions during the previous financial year.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	ADDRESS	Service Request Number (SRN)
1	10533597	01/10/2014	24,000,000.00	DEUTSCHE BANK AG	SCO 9-10, GREEN PARK AVENUE, CANAL COLONY, PAKHOW AL ROAD, LUDHIANA, PUNJAB - 141002, INDIA	C32336208
2	90180832	24/03/2014 *	47,000,000.00	Bank of India	BANK OF INDIA, INDUSTRIAL AREA-A, CHEEMA CHOWK, LUDHIANA, PUNJAB - 141003, INDIA	C02469633

* Date of charge modification

FIXED ASSETS

• Air Conditioner
• Building
• Computer Equipment
• Vehicles
• D. G. Set
• Ephax Alcatel
• Exhaust Fans
• Fire Extinguisher
• Furniture
• Machinery and Pant
• Mobile Phone Set
• Office Equipment
• Photostat Machine
• Pump with Motor
• Water Filter
• Weighing Scale
• Water Cooler
• Stabilizer
• Telephone Exchange

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.63.38
UK Pound	1	Rs.96.71
Euro	1	Rs.75.79

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	KLS

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
--PROFITABILITY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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.