MIRA INFORM REPORT

Report Date :

13.04.2011

IDENTIFICATION DETAILS

Name :	MACCAFERRI ENVIRONMENTAL SOLUTIONS PRIVATE LIMITED
Registered Office :	D – 40, MIDC, Ranjangaon, Taluka Shirur, Pune – 441220, Maharashtra
Country :	India
Financials (as on) :	31.12.2009
Date of Incorporation :	24.04.1998
Com. Reg. No.:	11-131124
CIN No.: [Company Identification No.]	U45200PN1998PTC131124
TAN No.: [Tax Deduction & Collection Account No.]	MUMM22250E MUMM12608B
PAN No.: [Permanent Account No.]	AABCM5896L
Legal Form :	Private Limited Liabilities Company
Line of Business :	Manufacturer, Supplier, Erection, Trading and Installation of Gabions Renomattresses wire, Geosynthetics and Natural Fiber Products

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1600000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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

LOCATIONS

Registered Office/ Factory :	D – 40, MIDC, Ranjangaon, Taluka Shirur, Pune – 441220, Maharashtra, India
Tel. No.:	91-2138-2670327/2670332/22-27580931
Fax No.:	91-2138-2670337
E-Mail :	co.secretaries@gmail.com manjinder@maccaferri-india.com
Website :	http://www.maccaferri-india.com
Corporate Office :	206, 2^nd Floor, Salcon Aurum, Plot No. 4, Jasola District Center, New Delhi – 110044, Delhi, India
Tel. No.:	91-11-43798400/50
Fax No.:	91-11-46546330
Branches :	Located at: Mumbai New Delhi Ahmedabad Kolkata Chennai Pune
Headquarter :	Via Kennedy 10 40069, Zola Predos (Bologna), Italy
Tel. No.:	39-0516436000
Fax No.:	39-0516436201

DIRECTORS

As On 30.06.2010

Name :	Mr. Marcho Finelli
Designation :	Director
Address :	Via Belmeloro – 5, 40100 Bologna, Italy
Date of Appointment :	04.11.1998
DIN No. :	01481866
Name :	Mr. Simone Biagi
Designation :	Director
Address :	Via Persicetana 22, 40010 Sala Bolognese Bo – Italy
Date of Birth/Age :	22.05.1973
Date of Appointment :	05.10.2007
DIN No. :	01455140
Name :	Mr. VikrantJeet Roy
Designation :	Managing Director
Address :	B-158, 2^nd Floor, Shivalik, New Delhi – 110017, Delhi, India
Date of Appointment :	30.01.2007
DIN No. :	00637663
Name :	Mr. Luigi Penzo
Designation :	Director
Address :	Via Puglie, 12 40056, Crespellanc, (Bologna), Italy
Date of Appointment :	20.01.2004
DIN No. :	01520008
Name :	Mr. Ashish D Gharpure
Designation :	Director
Address :	Flat No 07, 3^rd Floor, Dini Homes, Plot No 53, Sector 21, Nerul, NAvi Mumbai-400706, Maharashtra, India
Date of Appointment :	01.01.2009
DIN No. :	02509781

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.06.2010

Names of Shareholders	No. of Shares
Officine Maccaferri SPA – Italy	5575906
International Maccaferri Gabions Holding Co Sa – Luxemburg	69915
Total	5645821

As On 30.06.2010

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	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Supplier, Erection, Trading and Installation of Gabions Renomattresses wire, Geosynthetics and Natural Fiber Products

PRODUCTION STATUS (AS ON 31.12.2009)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Double Twist	MT		6000	1903.82
Paraweb	MTR		7500000	7156820
Paralink	Sqmtr		450000	404003

GENERAL INFORMATION

No. of Employees :

145 (approximately)

Bankers :

· Corporation Bank – Overseas Branch, Earnest House, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

Secured Loans	31.12.2009 (Rs. In Millions)	31.12.2008 (Rs. In Millions)
Loan from Banks
Term Loans	0.160	0.368
Cash Credit facilities	0.000	7.311
Total	0.160	7.679

Notes:

1. Term loans are secured by way of hypothecation of underlying motor vehicles (amount repayable within one year Rs. 0.160 million (Previous year Rs. 0.208 million

Unsecured Loans	31.12.2009 (Rs. In Millions)	31.12.2008 (Rs. In Millions)
Short term loans
From Banks	165.000	65.000
From others	60.356	233.631
Others	19.411	0.000
Total	244.767	298.631

Notes:

1. Short term loans from banks consists of working capital demand loans as follows

a) BNP Paribas

Due within one year Rs. 85.000 millions (Previous year Rs. 65.000 Millions)

b) Calyon Bank

Due within one year Rs. 80.000 millions (Previous year Rs. Nil)

2. Short term loan from other consists of finance facility obtained from Felsinea factor SPA tha associate company
3. other loans consists of finance facility obtained in respect of machinery from Felsinea factor SPA, the associate company

Banking Relations :	--
Auditors :
Name :	S V Ghatalia and Associates Chartered Accountant
Address :	Golf View Corporate Tower B, Sector-42, Sector Road, Gurgaon – 122002, Haryana, India
Pan No.:	AACFS6921Q
Holding Company :	· Officine Maccaferri SPA, Italy
Fellow Subsidiaries :	· Maccaferri Construction Limited, UK · Maccaferri Pty Limited, Australia · France Maccaferri SAS, France · Maccaferri New Zealand Limited, New Zealand · Maccaferri Malaysia Sdn Bhd, Malaysia · Maccaferri (Nepal) Private Limited · Maccaferri SA (Pty) Limited, South Africa · Maccaferri Inc, USA · Maccaferri Portugal, Portugal · Maccaferri Indonesia P.T Indonesia
Associates :	· Felsinea Factor S.P.A., Italy · Linear Composites Limited, United Kingdom

CAPITAL STRUCTURE

As On 31.12.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
5500000	Equity Shares	Rs.100/- each	Rs.550.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
495442	Equity Shares	Rs.100/- each	Rs.495.442 Millions

Notes:

Of the above 4884506 (previous year 4884506) equity shares are held by M/s Officine Maccaferri SPA, the Holding company.

As On 30.06.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
6300000	Equity Shares	Rs.100/- each	Rs.630.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5645821	Equity Shares	Rs.100/- each	Rs.564.582 Millions

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		495.442	495.442	263.657
2] Share Application Money		134.240	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(211.275)	(159.095)	(71.686)
NETWORTH		418.407	336.347	191.971
LOAN FUNDS
1] Secured Loans		0.160	7.679	93.450
2] Unsecured Loans		244.767	298.631	0.032
TOTAL BORROWING		244.927	306.310	93.482
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		663.334	642.657	285.453
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		240.322	280.330	132.323
Capital work-in-progress		5.391	5.270	0.000
INVESTMENT		0.000	0.000	92.439
DEFERREX TAX ASSETS		0.000	1.169	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	131.902	127.476	102.943
	Sundry Debtors	306.317	264.699	78.935
	Cash & Bank Balances	40.036	88.123	5.306
	Other Current Assets	23.255	0.872	2.971
	Loans & Advances	96.367	112.682	84.192
Total Current Assets		597.877	593.852	274.347
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	112.135	212.303	170.317
	Other Current Liabilities	64.423	20.797	43.339
	Provisions	3.698	1.864	0.000
Total Current Liabilities		180.256	234.964	213.656
Net Current Assets		417.621	358.888	60.691
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		663.334	645.657	285.453

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2009	31.12.2008	31.12.2007
	SALES
		Income	1157.018		138.673
		Other Income	NA		1.750
		TOTAL (A)	NA		140.423
Less	EXPENSES
		Administrative and selling expenses			61.245
		Raw Material Consumed			94.595
		Trading Purchases			100.374
		Manufacturing Expenses			6.071
		Expenses pertains to prior period			0.000
		Increase/(Decrease) in Finished Goods			(95.648)
		TOTAL (B)			166.637
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	NA	(26.214)
Less	FINANCIAL EXPENSES (D)				7.482
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)				(33.696)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.100		8.868
	PROFIT BEFORE TAX (E-F) (G)		63.295		(42.564)
Less	TAX (I)		2.282		(0.594)
	PROFIT AFTER TAX (G-I) (J)		35.079		(43.158)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA		(28.528)
	BALANCE CARRIED TO THE B/S		NA		(71.686)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	71.973	50.155	NA
	TOTAL EARNINGS
	IMPORTS
		Raw Materials	137.999	183.564
		Trading Goods	102.778	84.064	NA
		Components and spare parts	0.695	0.000
		Capital Goods	26.218	32.977
	TOTAL IMPORTS		267.690	300.605	NA
	Earnings Per Share (Rs.)		7.08	NA	NA

KEY RATIOS

PARTICULARS		31.12.2009	31.12.2008	31.12.2007
PAT / Total Income	(%)	NA	NA	(30.73)
Net Profit Margin (PBT/Sales)	(%)	5.47	NA	(30.69)
Return on Total Assets (PBT/Total Assets}	(%)	7.55	NA	(10.46)
Return on Investment (ROI) (PBT/Networth)		0.15	NA	(0.22)
Debt Equity Ratio (Total Liability/Networth)		1.02	1.61	1.59
Current Ratio (Current Asset/Current Liability)		3.32	2.53	1.28

LOCAL AGENCY FURTHER INFORMATION

NATURE OF OPERATIONS:

Maccaferri Environmental Solutions Private Limited was incorporated in 1998 and is involved in Manufacturer, Supplier, Erection, Trading and Installation of Gabions Renomattresses wire, Geosynthetics and Natural Fiber Products.

NOTE:

The Registered Office of the company has been shifted from B – 602, Great Eastern Summit, Part 1, Sector 15, CBD Belapur, Navi Mumbai – 400614, Maharashtra, India to the present address w.e.f 01.06.2007

FINANCIAL RESULTS:

During the year your company has earned a Net Profit of Rs 63.295 millions after providing depreciation of Rs. 14.100 millions and before tax and Net Profit of Rs. 35.079 millions after tax after providing for the tax of Rs. 2.282 millions.

PERFORMANCE AND MIS:

Your Directors are applying the resources in the best possible way to obtain the maximum possible results; the Company’s manufacturing plant & factory at Unit No. D-40, MIDC, Ranjangaon, Taluka - Shirur, District – Pune is achieving higher production.

The Company achieved the turnover of Rs. 1157018326 in the financial year ended 31.12.2009. In the next year your Directors are expecting rise in the turnover due to full functionality of the factory AND more construction contracts and consequently rise in the profitability.

FIXED ASSETS:

· Land

· Building leasehold

· Plant and machinery

· Computer

· Furniture and fixtures

· Vehicles

· Office equipments

· Dies and moulds

· Leasehold improvements

· Goodwill

· Software

WEBSITE DETAILS:

HISTORY:

Subject engineering culture can be traced back to their roots in the year 1550 in Italy, when a young man named Johannes was apprenticed to an ironworker in Sacerno, Emilia Romagna. He soon acquired the nickname 'Maccaferri'; literally 'He who strikes iron'. The foundry in which he worked made wrought iron products for the surrounding principalities. These principalities would eventually combine to form the country they now know as Italy from these humble beginnings, the company grew over the centuries until in 1886, company made the first wire products. The wire was hand woven into fences and a brand new 'gabion'. Indeed company is credited with being the inventor of the modern gabions, with a patent granted to company in the late 1890s. The first gabion retaining structure was built in 1893 to retain the river banks of the River Reno at Caselecchio. It took 650 workers, 34 days to install the 2,900 gabions! It still functions to this day!

Later that year, a flatter 'gabion mattress' was fabricated for soil erosion control on the River Reno. The term Reno Mattress was born and remains a company trademark to this day.

Company has continued to grow from strength to strength. The company Industrial Group remains a family owned industrial conglomerate with interests in food, construction, power generation, and finance and construction materials. They have over 20 factories spanning the globe, from India to Brazil and from America to Jakarta.

The continued growth is still based upon the same philosophy - to offer high quality, durable and environmentally sensitive solutions to the construction market. The heritage has helped gain experience, credibility and profound understanding of their environment which is reflected in the solutions they offer their clients.

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.44.20
UK Pound	1	Rs.72.26
Euro	1	Rs.63.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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.