MIRA INFORM REPORT

Report Date :

15.04.2011

IDENTIFICATION DETAILS

Name :	WEILBURGER COATINGS (INDIA) PRIVATE LIMITED
Registered Office :	JL No.04, Kandua Poly Park, Mouja – Sandhipur, P.O. – Jainagar P.S. – Sankrail, District – Howrah – 711302, West Bengal
Country :	India
Financials (as on) :	31.12.2009
Date of Incorporation :	02.06.2006
Com. Reg. No.:	21-109737
CIN No.: [Company Identification No.]	U24222WB2006PTC109737
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Ptfe Resin Based Coating Materials, Silicone Resin Based Coating Materials

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 245000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. Profitability appears to be under pressure. Trade relations are reported as fair. Business is active. Payments are reported to be slow. 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 :	JL No.04, Kandua Poly Park, Mouja – Sandhipur, P.O. – Jainagar P.S. – Sankrail, District – Howrah – 711302, West Bengal, India
Tel. No.:	91-33-22292915
E-Mail :	Adminpr1@weilburger.in

DIRECTORS

AS ON 01.06.2010

Name :	Mr. Rand Charles Timothy
Designation :	Director
Address :	Brair Thatch, Tarporley Road, Cotebrook, Cheshire – CW69EE
Date of Birth/Age :	01.01.1949
Date of Appointment :	02.06.2006
Name :	Mr. Sinha Prasad Soumendra
Designation :	Director
Address :	AB – 4, Sector -1, Salt Lake, Kolkata – 700064, West Bengal, India.
Date of Birth/Age :	28.09.1958
Date of Appointment :	02.06.2006
Name :	Mr. Heywood Mark Christopher
Designation :	Director
Address :	53, Fairview Drive, Adlington Chorley, Adlington – PR69SB, United Kingdom
Date of Birth/Age :	08.12.1973
Date of Appointment :	04.05.2009
Name :	Mr. Bose Pranab
Designation :	Managing Director
Address :	8/1 Alipore Avenue, First Floor, Kolkata- 700027, West Bengal, India.
Date of Birth/Age :	07.12.1965
Qualification :	Bachelor of Commerce
Experience :	19 years
Date of Appointment :	04.05.2009
Name :	Mr. Frank Josef Glaser
Designation :	Director
Date of Birth/Age :	04.06.1967
Date of Appointment :	15.07.2010

KEY EXECUTIVES

Name :	Mr. Kayal Dipanjan
Designation :	Secretary
Address :	99D, D.C. Dey Road, Kolkata – 700015, West Bengal, India.
Date of Birth/Age :	30.05.1983
Date of Appointment :	16.04.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 01.06.2010

Names of Shareholders	No. of Shares
Weilburger Lacke Handelsgesellscraft mbh, Austria	9750000
Sinha PR. Soumendra	250000
TOTAL	10000000

AS ON 01.06.2010

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]		97.50
Directors or relatives of directors		2.50
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Ptfe Resin Based Coating Materials, Silicone Resin Based Coating Materials

Products :

ITEM CODE NO.	PRODUCT DESCRIPTION
Industrial and Engineering Finishes Based on Polytetrafluoroethylene	39046100
Silicone Resin Based Coating Material	32100040
Fine Ceramica Coating Material	32100040

GENERAL INFORMATION

Bankers :

Deutsche Bank, No.9 Shakespeare Sarani, Kolkata – 700071, West Bengal, India.

Facilities :

UNSECURED LOAN	AS ON 31.12.2009 (Rs.in millions)	AS ON 31.12.2008 (Rs.in millions)
Loans from Banks
Short Term Loan from a Bank	0.000	35.000
Overdraft facility with a Bank	38.424	10.500
Loan from Weilburger Lacke Handlesgesellschaft mbh, Austria (the holding company)	96.758	34.613
Interest accrued and due	0.270	0.255
TOTAL	135.452	80.368

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountant
Address :	Bengal EP and GP Sector V. salt Lake Electronic Complex, Kolkata 700091, West Bengal, India
Ultimate Holding Company :	Grebe Holding AG
Holding Company :	Weilburger Lacke Handlesgesellschaft mbh, Austria
Associates/Subsidiaries :	PT Weilburger Coatings, Indonesia

CAPITAL STRUCTURE

AS ON 31.12..2009

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs. 10 each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5950000	Equity Shares (of these 5700000 equity shares are held by the holding company, Weilburger Lacke Handeisgesellschaft mbh, Austria)	Rs. 10 each	Rs.59.500 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		59.500	30.300	29.700
2] Advance against Equity		40.500	29.200	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(38.561)	(14.113)	(0.477)
NETWORTH		61.439	45.387	29.223
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.513
2] Unsecured Loans		135.452	80.368	10.512
TOTAL BORROWING		135.452	80.368	11.025
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		196.891	125.755	40.248
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.452	14.674	0.000
Capital work-in-progress		152.606	75.224	31.494
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		1.729	0.167	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	26.042	11.493	6.061
	Sundry Debtors	25.669	38.274	29.237
	Cash & Bank Balances	5.046	5.446	0.012
	Other Current Assets	0.052	0.141	0.000
	Loans & Advances	6.320	5.690	1.535
Total Current Assets		63.129	61.044	36.845
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	20.618	14.694	26.473
	Other Current Liabilities	14.425	10.231	1.520
	Provisions	0.982	0.429	0.098
Total Current Liabilities		36.025	25.354	28.091
Net Current Assets		27.104	35.690	8.754
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		196.891	125.755	40.248

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2009	31.12.2008
	SALES
		Income	63.680	76.460
		Other Income	0.000	0.262
		TOTAL (A)	63.680	76.722
Less	OPERATING EXPENSES		90.210	90.010
		TOTAL (B)	90.210	90.010
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(26.530)	(13.288)
	PROFIT BEFORE TAX (D)		(26.530)	(13.288)
Less	TAX (E)		2.090	(0.352)
	PROFIT AFTER TAX (E-F) (F)		(24.440)	(13.640)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(14.111)	(0.480)
	BALANCE CARRIED TO THE B/S		(38.560)	(14.120)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	10.544	5.703
	TOTAL EARNINGS		10.544	5.703
	IMPORTS
		Raw Materials	8.696	0.000
		Finished Goods	37.182	46.120
		Capital Goods	5.737	0.000
	TOTAL IMPORTS		51.615	46.120
	Earnings Per Share (Rs.)		(4.34)	(4.75)

KEY RATIOS

PARTICULARS		31.12.2009	31.12.2008	31.12.2007
PAT / Total Income	(%)	0	(17.77)	0
Net Profit Margin (PBT/Sales)	(%)	(41.66)	(17.37)	0
Return on Total Assets (PBT/Total Assets}	(%)	(33.76)	(17.54)	0
Return on Investment (ROI) (PBT/Networth)		(0.43)	(0.29)	(0.45)
Debt Equity Ratio (Total Liability/Networth)		2.64	2.32	1.33
Current Ratio (Current Asset/Current Liability)		1.75	2.40	1.31

LOCAL AGENCY FURTHER INFORMATION

NOTE:

Registered office of the company has been shifted from C/O, S.P. Sinha and Company, 56D Mirza Ghalib Street, 2^nd Floor, Kolkata – 700016, West Bengal, India. to the present address w.e.f. 01.06.2010

OPERATIONS

The turnover of the company declined from Rs.76.500 millions to Rs. 62.200 millions in 2009. This was due to the sharp reduction in demand in the end of 2008 and which continued into first half of 2009. In view of the slowdown and acute price competition, margins were under pressure.

FIXED ASSETS

• Goodwill
• Leasehold Land
• Furniture
• Computer
• Vehicle
• Plant and Machinery
• Property
• Customer and Industry

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.44.48
UK Pound	1	Rs.72.37
Euro	1	Rs.64.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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

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.