MIRA INFORM REPORT

Report No. :	501381.2
Report Date :	06.04.2018

IDENTIFICATION DETAILS

Name :	CHEMCOAT ENTERPRISES
Registered Office :	C/O - Speciality Industrial Polymers & Coatings Private Limited, 20 Udyog Bhavan, Sonawala Road, Goregaon (East), Mumbai – 400063, Maharashtra
Mobile No.:	91-8779362772 (Mr. Vikas Singh)
Country :	India
Financials (as on) :	31.03.2017
Year of Establishment :	2014
Capital Investment / Paid-up Capital :	INR (1.454 Million)
IEC No.: [Import-Export Code No.]	Not Divulged
TIN No.:	27021045985
GSTIN : [Goods & Service Tax Registration No.]	27AAGPB8726Q1Z6
PAN No.: [Permanent Account No.]	AAGPB8726Q
Legal Form :	Sole Proprietary Concern
Line of Business :	Manufacturer and Importer of Water based Polymer, Emulsions. (Registered Activity)
No. of Employees :	In Office - 02 (Approximately) In Warehouse – 05 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a proprietorship concern established in the year 2014 and it is engaged as manufacturer and importer of water based polymer emulsions. As per the available financials of 2017, the concern has achieved marginal growth in its sales turnover but has reported thin profit margin during the year. The general financial position of the concern seems to be moderate reflected by its low profitability and modest capital base. Rating further gets constrained on account of excess borrowing recorded by the firm along with highly fragmented industry with presence of other large players and unorganized sector marked by profit margins exposed to fluctuations in the input prices. However, Business is active. Payments seems to be slow but correct. In view of aforesaid, the concern can be considered for business dealing with some caution. Note: Site visit was conducted at the given address and our executive has successfully traced the subject. At the premises our executive met to Mr. Mustafa (Employee) and he confirmed the existence of the subject on the given address. Further provided with contact number (#8446721766). As per our executive’s observation, it is a shed type premises comprising the total area of 3000 SQ.FT. Location was easy to find near “Mukund Hotel” as a landmark. Locality seems to be industrial and area near the premises appears to be neutral. Further, our executive have sighted approximately 5 employees and also sighted furniture items. However, the name board of the subject was not sighted instead of which we have sighted name board of “Swapnil Warehouse Corporation”. Note 2: Mr. Vikas Singh (Senior Commercial Officer) claimed that Swapnil Warehouse Corporation” is a warehouse name of the subject. Note 3: As a Networth of the company is negative, we are unable to recommend any credit limit for the subject.

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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 06.04.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Vikas Singh
Designation :	Senior Commercial Officer
Contact No.:	91-8779362772
Date :	02.04.2018

LOCATIONS

Registered Office :	C/O - Speciality Industrial Polymers & Coatings Private Limited, 20 Udyog Bhavan, Sonawala Road, Goregaon (East), Mumbai – 400063, Maharashtra, India
Tel. No.:	91-22-26861536
Mobile No.:	91-8779362772 (Mr. Vikas Singh)
Fax No.:	Not Available
E-Mail :	sales@spoly.net
Factory :	C/O Swapnil Warehousing Corporation, Survey No.1045/5/5, Gala No.B5, Brahma Bhoirwadi Compound, Rahnal Village, Bhiwandi, District: Thane, Maharashtra, India
Area of premises :	3000 Sq.ft (As per site visit)
Locality:	Industrial (As per site visit)

SOLE PROPRIETOR

Name :	Mr. Ashok Parshuram Bhogan
Designation :	Proprietor

KEY EXECUTIVES

Name :	Mr. Vikas Singh
Designation :	Senior Commercial Officer

BUSINESS DETAILS

Line of Business :	Manufacturer and Importer of Water based Polymer, Emulsions. (Registered Activity)
Products :	Water based Polymer Emulsions
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :
Products :	Raw Material
Countries :	Korea
Terms :
Selling :	Advance Payment and Credit
Purchasing :	Advance Payment and Credit

GENERAL INFORMATION

Suppliers :

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

Customers :

Manufacturer

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

No. of Employees :

In Office - 02 (Approximately)

In Warehouse – 05 (Approximately))

Bankers :

Banker Name :	State Bank of India
Branch :
Person Name (With Designation) :	--
Contact Number :	--
Name of Account Holder :	--
Account Number :	--
Account Since (Date/Year of Account Opening) :	--
Average Balance Maintained :	--
Credit Facilities Enjoyed (CC/OD/Term Loan) :	--
Account Operation :	--
Remark :	--

Auditors :
Name :	Kunal Salvi and Company Chartered Accountant
Address :	Mumbai, Maharashtra, India
Membership No :	127567
Collaborators :	Not Available
Membership :	Not Available
Sister Concern :	Specialty Industrial Polymer Coating Private Limited

CAPITAL STRUCTURE

As on 31.03.2017

CAPITAL ACCOUNT	Amount
Owned :	INR (1.454) Million
Borrowed :	--
Total :	INR (1.454) Million

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2017	31.03.2016
SHAREHOLDERS FUNDS
1] Share Capital		(1.454)	(0.796)
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		(1.454)	(0.796)
LOAN FUNDS
1] Secured Loans		8.867	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		8.867	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		7.413	(0.796)
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.695	0.000
Capital work(in(progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.223	0.000
	Sundry Debtors	0.000	0.943
	Cash & Bank Balances	0.390	0.072
	Other Current Assets	0.999	0.427
	Loans & Advances	4.017	0.000
Total Current Assets		5.629	1.442
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.600	2.234
	Other Current Liabilities	0.311	0.004
	Provisions	0.000	0.000
Total Current Liabilities		7.911	2.238
Net Current Assets		(2.282)	(0.796)
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		7.413	(0.796)

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016
	SALES
	Income	19.451	17.475
	Other Income	5.550	0.000
	TOTAL	25.001	17.475
Less	EXPENSES
	Cost of Materials Consumed	19.295	11.171
	Job Working Charges	0.158	0.058
	Trading Expenses	0.199	0.000
	Fright	0.003	0.000
	Packaging forwarding	0.002	0.000
	Transportation Inward	0.000	0.018
	Administration Expenses	0.268	0.000
	Selling and Distribution	0.005	0.000
	Godown Rent	0.069	0.068
	Interest on Govt Taxes	0.005	0.000
	Loading & Unloading Charges	0.045	0.014
	Professional Fees	0.084	0.032
	Tax Audit Fees	0.000	0.015
	Vehicle Fuel Expenses	0.027	0.000
	vehicle Maintenance	0.065	0.000
	Krishi Kalyan Cess	0.001	0.000
	Swatch Bharat Cess	0.001	0.000
	Services Tax Expenses	0.003	0.000
	Vat Audit Fees	0.000	0.015
	TOTAL	20.230	11.391
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	4.771	6.084
Less	FINANCIAL EXPENSES	1.060	0.003
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	3.711	6.081
Less	DEPRECIATION/ AMORTISATION	1.711	0.000
	PROFIT/ (LOSS) BEFORE TAX	2.000	6.081

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

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016
Average Collection Days (Sundry Debtors / Operating Income * 365 Days)	0.00	19.70
Account Receivables Turnover (Operating Income / Sundry Debtors)	0.00	18.53
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	143.77	72.99
Inventory Turnover (Operating Income / Inventories)	21.39	0.00
Asset Turnover (Operating Income / Net Fixed Assets)	0.49	0.00

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	1.09	1.55
Debt Equity Ratio (Total Liability / Networth)	(6.10)	0.00
Current Liabilities to Networth (Current Liabilities / Net Worth)	(5.44)	(2.81)
Fixed Assets to Networth (Net Fixed Assets / Networth)	(6.67)	0.00
Interest Coverage Ratio (PBIT / Financial Charges)	4.50	2028.00

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016
Net Profit Margin ((PAT / Sales) * 100)	%	10.28	34.80
Return on Total Assets ((PAT / Total Assets) * 100)	%	13.05	421.71
Return on Investment (ROI) ((PAT / Networth) * 100)	%	(137.55)	(763.94)

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016
Current Ratio (Current Assets / Current Liabilities)	0.71	0.64
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.68	0.64
G-Score Ratio Financial (Networth / Total Assets)	(0.09)	(0.55)
G-Score Ratio Debt (Debts / Equity Capital)	(6.10)	0.00
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	0.71	0.64

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are in INR Million]

DEBT EQUITY RATIO

Particular	31.03.2016	31.03.2017
	(INR in Million)	(INR in Million)
Share Capital	(0.796)	(1.454)
Reserves & Surplus	0.000	0.000
Money received against share warrants	0.000	0.000
Share Application money pending allotment	0.000	0.000
Net worth	(0.796)	(1.454)
Secured borrowings	0.000	8.867
Unsecured borrowings	0.000	0.000
Total borrowings	0.000	8.867
Debt/Equity ratio	0.000	(6.098)

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2016	31.03.2017
	(INR in Million)	(INR in Million)
Sales	17.475	19.451
		11.308

NET PROFIT MARGIN

Net Profit Margin	31.03.2016	31.03.2017
	(INR in Million)	(INR in Million)
Sales	17.475	19.451
Profit	6.081	2.000
	34.80%	10.28%

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	Yes
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	Yes
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	No
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 two years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last two years	Yes
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

OBSERVATION POINTS

Name :	Chemcoat Enterprises
Address :	C/O Swapnil Warehousing Corporation, Survey No.1045/5/5, Gala No.B5, Brahma Bhoirwadi Compound, Rahnal Village, Bhiwandi, District: Thane, Maharashtra, India
Person to whom we met:	Mr. Mustafa (Employee)
Contact No :	91-8446721766
Name Board:	Not Sighted (Sighted name board of warehouse “Swapnil Warehouse Corporation”)
Location:	Easy
Landmark :	Near Mukund Hotel
Total Floors of the building:	Shed type premises
Locality:	Industrial
Area of premises :	3000 Sq.ft
Area:	Neutral
No. of employee seen at premises :	05
Visibility of Item :	Office Equipment
Furniture items sighted :	Yes
Proof of visit:	Photographs

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 records 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	INR
US Dollar	1	INR 65.02
UK Pound	1	INR 91.45
Euro	1	INR 80.09

INFORMATION DETAILS

Information Gathered by :	SHW
Analysis Done by :	NIS
Report Prepared by :	TRUP

SCORE FACTORS

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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.