MIRA INFORM REPORT

Report Date :

09.04.2011

Note : The company has shifted from the above address.

IDENTIFICATION DETAILS

Name :	EFTEC SHROFF (INDIA) LIMITED
Registered Office :	Plot No.645/ 646, Oberoi Chambers – II, 4^th and 5^th Floor, New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra
Country :	India
Financials (as on) :	31.12.2009
Date of Incorporation :	30.06.2000
Com. Reg. No.:	11-127483
CIN No.: [Company Identification No.]	U25200MH2000PLC127483
TAN No.: [Tax Deduction & Collection Account No.]	MUME05038F/ PNEE02545E
PAN No.: [Permanent Account No.]	AAACE7652D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Importer of Acrylic Coating Chemicals, Preventing Coating Chemicals, Industrial Coating Chemicals, Adhesives and Sealants.

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 860000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Haresh Jagoja
Designation :	Finance Controller
Contact No.:	91-22-26747900

LOCATIONS

Registered Office :	Plot No.645/ 646, Oberoi Chambers – II, 4^th and 5^th Floor, New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra
Tel. No.:	91-22-26747900
Fax No.:	91-22-26736178/ 26736193
E-Mail :	esil@eftecindia.com haresh.jaguja@eftecindia.com
Website :	www.eftecindia.com
Area :	5000 sq ft
Location :	Owned
Factory :	Plot No.G-9, Ranjangaon, M.I.D.C. Area, Taluka Shirur, Pune – 412 201, Maharashtra, India

DIRECTORS

As on 31.05.2010

Name :	Mr. Shalil Shashikumar Shroff
Designation :	Director/ Chairman
Address :	5B/ 5C, Lohtse CHS Limited, Ruia Park, Juhu, Mumbai – 400 049, Maharashtra, India
Date of Birth/Age :	11.12.1964
Date of Appointment :	30.06.2000
DIN No.:	00015621
Name :	Mrs. Rupam Shalil Shroff
Designation :	Director
Address :	5B/ 5C, Lohtse CHS Limited, Ruia Park, Juhu, Mumbai – 400 049, Maharashtra, India
Date of Birth/Age :	02.05.1968
Date of Appointment :	30.06.2000
DIN No.:	00015669
Name :	Mr. Nitin Pravin Mehta
Designation :	Whole-Time Director
Address :	3, Mayflower, Carmichael Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	14.02.1966
Date of Appointment :	08.04.2010
DIN No.:	03047661
Name :	Mr. Ulf Peter Niclas Jakobsson
Designation :	Director
Address :	Unit 1902, Building 4, Parkview Service Apartment, Changing Road, 888, 200042, Shanghai P.R.C.
Date of Birth/Age :	04.08.1965
Date of Appointment :	31.03.2007
DIN No.:	01461018
Name :	Mr. Markus Johann Kremmel
Designation :	Director
Address :	Sankt-Antonius-Strabe 26A 6890 Lustenau
Date of Birth/Age :	09.10.1960
Date of Appointment :	31.03.2007
DIN No.:	01460881
Name :	Mr. Yatin Gordhandas Dossa
Designation :	Director
Address :	101, Trishul Society, Kane Road, Bandra (West), Mumbai – 400 050, Maharashtra, India
Date of Birth/Age :	12.09.1956
Date of Appointment :	30.06.2000
Date of Cessation :	08.04.2010
DIN No.:	02621881

KEY EXECUTIVES

Name :	Mr. Haresh Jaguja
Designation :	Finance Controller

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.05.2010

Names of Shareholders	No. of Shares
Shalil Shashikumar Shroff	5
Rupam Shalil Shroff	5
Shaila Shashikumar Shroff	5
Nitin Pravin Mehta	5
Manhar Shantilal Broker	5
Vipul Harsukhlal Joshi	5
Pankaj Maganlal Naik	5
EFTEC Asia Pte Limited, Singapore	735000
Hem-Sil Trading and Manufacturing Private Limited, India	764965
Total	1500000

As on 31.05.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	49.00
Bodies corporate	51.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Importer of Acrylic Coating Chemicals, Preventing Coating Chemicals, Industrial Coating Chemicals, Adhesives and Sealants.

Products :

Item Code No. (ITC Code)	3506100
Product Description	Anti-Corrosive Chemicals

Imports :

Products :

Calcium Carbonate, Calcium Sulfonate

Countries :

US, Netherlands, Zurich, Bristol

Terms :

Selling :

Cash and Credit (30/ 60/ 90 days)

Purchasing :

L/C, Cash and Credit (30/ 60/ 90 days)

PRODUCTION STATUS (AS ON 31.12.2009)

Particulars	Installed Capacity (Tons)	Actual Production (Tons)
Wax Plant	4800	1365.84
PVC Plant	7584	3118.94

Note: The installed capacities mentioned above have been determined by the Company’s technical officials and have been accepted by Auditors without verification, being a technical matter.

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

150 (Approximately)

Bankers :

• ING Vysya Bank Limited, 103/ 104, ‘A’ Wing, I Floor, Floral Deck Plaza, MIDC Central Road, Andheri (East), Mumbai – 400 093, Maharashtra, India
• State Bank of India, Industrial Finance Branch, Andheri (East), Mumbai – 400 069, Maharashtra, India

Facilities :

Secured Loans	31.12.2009 Rs. In Millions	31.12.2008 Rs. In Millions
Term Loan [Amount repayable within one year Rs.26.200 millions (Previous year Rs.6.667 millions)]	140.552	90.627
Cash credit from a scheduled bank	2.962	72.351
Total	143.514	162.978

Note: Loan from bank on term loan and cash credit account is secured by:

1) Hypothecation of stocks, consumables, stores and spares

2) Hypothecation of book debts

Unsecured Loans	31.12.2009 Rs. In Millions	31.12.2008 Rs. In Millions
Bank overdraft [Amount repayable within one year Rs. Nil (Previous year Rs.0.022 million)]	0.000	0.022
Interest accrued and due on inter corporate deposit	0.000	0.148
Total	0.000	0.170

Banking Relations :	--
Auditors :
Name :	Walker, Chandiok and Company Chartered Accountants
Address :	Engineering Centre, 6^th Floor, 9 Matthew Road, Opera House, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-23671623
Fax No.:	91-22-23671624
E-Mail :	MUMBAI@wcgt.in
Income-tax PAN of auditor or auditor's firm :	AACPP3023C
Holding Company :	Hem-Sil Trading and Manufacturing Private Limited CIN No.: U65944MH1982PTC028087
Venturer in respect of which the Company is an associate/joint venture :	EFTEC Asia Pte Limited
Entities having common Control :	Eftec Thailand (Company) Limited Eftec Nv Eftec North America L.L.C
Entities having significant influence :	Punjab Chemical and Crop Protection Limited

CAPITAL STRUCTURE

AS ON 31.12.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 millions

Of the above,

(i) 764965 Equity Shares of Rs.10 each are held at the year end by Hem-Sil Trading and Manufacturing Private Limited, the holding company.

(ii) 764965 Equity Shares of Rs.10 each are issued for consideration other than cash.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2009	31.12.2008	31.12.2007
SHAREHOLDERS FUNDS
1] Share Capital		15.000	15.000	15.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		200.002	127.846	84.267
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		215.002	142.846	99.267
LOAN FUNDS
1] Secured Loans		143.514	162.978	0.089
2] Unsecured Loans		0.000	0.170	0.000
TOTAL BORROWING		143.514	163.148	0.089
DEFERRED TAX LIABILITIES		0.340	0.437	1.119
TOTAL		358.856	306.431	100.475
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		246.011	57.899	31.532
Capital work-in-progress		8.711	128.812	5.650
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	49.059	62.823	39.349
	Sundry Debtors	110.999	103.057	66.537
	Cash & Bank Balances	9.329	5.024	6.311
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	28.979	16.911	17.419
Total Current Assets		198.366	187.815	129.616
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	85.461	62.949	42.712
	Other Current Liabilities	1.428	1.297	1.516
	Provisions	7.343	3.849	22.095
Total Current Liabilities		94.232	68.095	66.323
Net Current Assets		104.134	119.720	63.293
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		358.856	306.431	100.475

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2009	31.12.2008	31.12.2007
	SALES
		Sales – Manufacturing	479.448	384.899	289.775
		Sale of traded goods	46.335	47.076	38.799
		Service income	4.832	6.941	7.518
		Other Income	11.437	3.586	2.630
		TOTAL (A)	542.052	442.502	338.722
Less	EXPENSES
		Materials Consumed	274.415	241.203	170.686
		Cost of Goods Sold	43.501	36.488	32.361
		Employee Cost	27.486	25.409	19.901
		Operating Expenses	66.571	57.740	49.234
		TOTAL (B)	411.973	360.840	272.182
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		130.079	81.662	66.540
Less	FINANCIAL EXPENSES (D)		10.868	7.759	2.699
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		119.211	73.903	63.841
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.872	3.750	3.037
	PROFIT BEFORE TAX (E-F) (G)		112.339	70.153	60.804
Less	TAX (H)		39.386	25.566	20.003
	PROFIT AFTER TAX (G-H) (I)		72.953	44.587	40.801
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		83.719	39.132	21.715
Less	APPROPRIATIONS
		Dividend	--	--	16.500
		Tax on Dividend	--	--	2.804
		General Reserve	--	--	4.080
	BALANCE CARRIED TO THE B/S		156.672	83.719	39.132
	EARNINGS IN FOREIGN CURRENCY
		Service income	1.192	3.470	2.804
		Commission income	3.200	0.000	0.000
		FOB value of exports	0.988	0.098	0.971
	TOTAL EARNINGS		5.380	3.568	3.775
	IMPORTS
		Raw Materials	69.122	70.491	41.565
		Traded Goods	40.205	42.230	34.511
		Capital Goods	1.864	0.450	1.471
	TOTAL IMPORTS		111.191	113.171	77.547
	Earnings Per Share (Rs.)		48.64	29.72	27.20

Particulars	31.12.2010 (Approximately)
Sales Turnover	650.000

KEY RATIOS

PARTICULARS		31.12.2009	31.12.2008	31.12.2007
PAT / Total Income	(%)	13.46	10.08	12.05
Net Profit Margin (PBT/Sales)	(%)	21.37	16.24	18.51
Return on Total Assets (PBT/Total Assets}	(%)	25.28	28.55	37.73
Return on Investment (ROI) (PBT/Networth)		0.52	0.49	0.61
Debt Equity Ratio (Total Liability/Networth)		1.11	1.62	0.67
Current Ratio (Current Asset/Current Liability)		2.11	2.76	1.95

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.12.2009 (Rs. in millions)	31.12.2008 (Rs. in millions)	31.12.2007 (Rs. in millions)
Sundry creditors
- Total outstanding dues of micro and small enterprises	1.024	0.770	--
- Total outstanding dues of creditors other than micro and small enterprises
-for materials	63.394	40.039	31.016
-for expenses	21.043	22.140	11.696
	85.461	62.949	42.712

COMPANY BACKGROUND:

The Company was incorporated on 30 June 2000. The Company is in the business of manufacturing and sales of bonding, coating and sealing adhesives used in the automobile industry.

FORM 8

Corporate identity number of the company	U25200MH2000PLC127483
Name of the company	EFTEC SHROFF (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.645/ 646, Oberoi Chambers – II, 4^th and 5^th Floor, New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra, India E-Mail: esil@eftecindia.com
This form is for	Modification of charge
Charge identification number of the modified	10115675
Type of charge	Immovable property
Particular of charge holder	ING Vysya Bank Limited, 103/ 104, ‘A’ Wing, I Floor, Floral Deck Plaza, MIDC Central Road, Andheri (East), Mumbai – 400 093, Maharashtra, India E-Mail: cms@companiesinn.com
Nature of description of the instrument creating or modifying the charge	Mortgage by Deposit of Title Deeds
Date of instrument Creating the charge	16.09.2010
Amount secured by the charge	Rs.260.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: No Change Terms of Repayment: No Change Margin: No Change Extent and Operation of the charge: First charge on the immovable property of the company.
Short particulars of the property charged	The immovable property of the company at Plot No.G-9 including Building and structures to be constructed/already constructed, Ranjangaon Industrial Area Village Karegoan, Taluka Shirur, District Pune.
Particulars of the present modification	There is no change in the limit of Rs.260.000 millions. The total limit is additionally secured by the immovable property of the company. All other terms and conditions remain same.

CONTINGENT LIABILITIES (As on 31.12.2009)

a. Rs.2.417 millions for the assessment year 2004-05 in respect of which the Company has referred an appeal with the Income Tax Appellate Tribunal, against the order of Commissioner of Income Tax.

b. Rs.1.956 millions for the assessment year 2005-06 vide order of Additional Commissioner of Income Tax.

c. Rs.0.747 million for the for the assessment year 2006-07 in respect of which the Company has referred an appeal with the Income Tax Appellate Tribunal, against the order of Commissioner of Income Tax.

d. Rs.0.814 million for the assessment year 2007-08 vide order of Additional Commissioner of Income Tax.

FIXED ASSETS:

· Leasehold Land

· Factory Building

· Office Building

· Plant and Machinery

· Computers

· Office Equipment

· Furniture and Fixtures

· Vehicles

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	Indian Rupees
US Dollar	1	Rs.44.04
UK Pound	1	Rs.72.19
Euro	1	Rs.63.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.