MIRA INFORM REPORT

Report Date :

10.12.2011

IDENTIFICATION DETAILS

Name :	TIMEX GROUP PRECISION ENGINEERING LIMITED
Registered Office :	117, Ground Floor, World Trade Centre, Babar Road, New Delhi – 110001, Delhi
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.05.2008
Com. Reg. No.:	55-178234
Capital Investment / Paid-up Capital :	Rs.363.903 Millions
CIN No.: [Company Identification No.]	U74210DL2008PLC178234
TAN No.: [Tax Deduction & Collection Account No.]	DELT07970E
PAN No.: [Permanent Account No.]	AACCT9314M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Tools, Moulds and Plastic Components.
No. of Employees :	150 (Approximately)

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 1240000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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. Kalyan Ghosh
Designation :	Director
Contact No.:	91-9717080891
Date :	07.12.2011

LOCATIONS

Registered Office :	117, Ground Floor, World Trade Centre, Babar Road, New Delhi – 110001, Delhi, India
Tel. No.:	91-11-23417080/ 23417081
Fax No.:	91-11-23417082
E-Mail :	ppuri@timex.com b2bindia@timex.com
Website :	www.timexindia.com
Corporate Office :	Studio No. 217, 2^nd Floor, International Home Deco Park, Plot No. 7, Sector – 127, Noida - 201301, Uttar Pradesh, India
Tel. No.:	91-120-4741300
Fax No.:	91-120-4741440
Factory :	A-27, Sector – 68, Noida – 201307, Uttar Pradesh, India
Tel. No.:	91-120-3004205
Fax No.:	91-120-3004207
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :

Mr. Kapil Kapoor

Designation :

Director

Address :

Apartment 1083, Tower – 15, H.K. Park View 88, Taitam Reservoir Road, Hong Kong

Date of Birth/Age :

06.08.1964

Date of Appointment :

16.05.2008

DIN No.:

00178966

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
L33301DL1988PLC033434	Timex Group India Limited	Director	29/01/2009	19/09/2000	-	Active	NO
L74899DL1995PLC068021	Info Edge (India) Limited	Director	1/10/2002	1/10/2002	-	Active	NO
U74899DL1994PTC060706	Time Master India Private Limited	Director	29/09/2007	9/04/2007	-	Active	NO
U74210DL2008PLC178234	Timex Group Precision Engineering Limited	Director	16/05/2008	16/05/2008	-	Active	NO
U74900DL2009PTC193377	Ninety Nine Labels Private Limited	Additional director	5/07/2011	5/07/2011	-	Active	NO

Name :

Mr. Kalyan Kumar Ghosh

Designation :

Director

Address :

A – 101, F – 2, Sector – 50, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

31.05.1969

Date of Appointment :

29.09.2009

DIN No.:

02882797

Name :

Mr. Vass Dev Wadhwa

Designation :

Director

Address :

122, Third Floor, Jasola – 1, New Delhi – 110025, Delhi, India

Date of Birth/Age :

20.08.1964

Date of Appointment :

06.09.2010

DIN No.:

00439684

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U74899DL1995PTC064767	Jumbo Securities and Finlease Private Limited	Director	30/01/1995	30/01/1995	-	Active	NO
U91110DL2004NPL128854	All India Federation of Horological Industries	Director	6/09/2004	6/09/2004	-	Active	NO
U74899DL1994PTC060706	Time Master India Private Limited	Director	29/01/2007	29/01/2007	-	Active	NO
U74210DL2008PLC178234	Timex Group Precision Engineering Limited	Director	30/09/2010	16/05/2008	-	Active	NO
L33301DL1988PLC033434	Timex Group India Limited	Managing director	22/07/2010	29/04/2010	-	Active	NO

Name :

Mr. Vikram Bhardwaj

Designation :

Director

Address :

#615, Block – E, Jalvayu Towers, Sector – 47, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

28.09.1977

Date of Appointment :

29.09.2009

DIN No.:

02885343

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U74210DL2008PLC178234	Timex Group Precision Engineering Limited	Director	30/10/2009	29/09/2009	-	Active	NO

Name :

Mr. Manuel Lopes Henriques

Designation :

Director

Address :

167, Silver Beach Road, Southbury CT, Connecticut, U.S.A.

Date of Birth/Age :

06.07.1948

Date of Appointment :

28.01.2010

DIN No.:

00040398

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U74210DL2008PLC178234	Timex Group Precision Engineering Limited	Director	30/09/2010	28/01/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Timex Nederland B.V. (Netherlands)	31336653
Vass Dev Wadhwa	49994
Kapil Kapoor	1
Milan Kumar Bandyopadhyay	1
Salil Sadanandan	1
Ananda Mukherjee	1
R. Chandrasekhar	1
G. Lakshman Rao	1
Total	31386653

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

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	99.84
Directors or relatives of Directors	0.16
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Tools, Moulds and Plastic Components.

Products :

PRODUCT DESCRIPTION	ITC Code No.
Tools and Moulds	3499
Plastic Component	3137

Exports :

Products :

Plastic Moulded Parts

Countries :

· Germany

· Switzerland

Terms :

Selling :

L/C/ Cash/ Credit

Purchasing :

L/C/ Cash/ Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Plastic components	Nos.	NA	NA	56256
Tools and Moulds	Nos.	NA	NA	292

GENERAL INFORMATION

Customers :	End Users
No. of Employees :	150 (Approximately)
Bankers :	HSBC Bank, Noida, Uttar Pradesh, India

Banking Relations :	--
Auditors :
Name :	B S R and Company Chartered Accountants
Address :	Building No. 10, 8^th Floor, Tower – B, DLF Cyber City, Phase II, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-2549191
Fax No.:	91-124-2549101
Holding Company :	Timex Nederland B. V.
Ultimate Holding Company :	Timex Group B. V.
Fellow Subsidiaries :	Timex Group India Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs.400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
31386653	Equity Shares	Rs.10/- each	Rs.313.867 Millions

Of the above

- 31,336,653 equity shares of Rs.10 each are held by Timex Netherland B. V., the holding company. The ultimate holding company is Timex Group B. V.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	16.05.2008 to 31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		313.867	257.398
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		(3.739)	(4.301)
NETWORTH		310.128	253.097
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		0.000	0.000
DEFERRED TAX LIABILITIES		1.398	0.000
TOTAL		311.526	253.097
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		202.935	194.098
Capital work-in-progress		71.416	11.141
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12.216	5.852
	Sundry Debtors	43.558	31.879
	Cash & Bank Balances	20.951	31.608
	Other Current Assets	0.265	0.219
	Loans & Advances	8.050	10.855
Total Current Assets		85.040	80.413
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	39.566	26.737
	Current Liabilities	2.086	1.118
	Provisions	6.213	4.700
Total Current Liabilities		47.865	32.555
Net Current Assets		37.175	47.858
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		311.526	253.097

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	16.05.2008 to 31.03.2009
	SALES
		Income from operations	144.735	48.713
		Other Income	2.363	2.036
		TOTAL (A)	147.098	50.749
Less	EXPENSES
		Materials consumed and movements in finished goods and work-in-progress	55.371	21.125
		Personnel Cost	32.509	11.741
		Other expenses	46.499	17.241
		Preliminary expenses	0.000	0.234
		TOTAL (B)	134.379	50.341
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12.719	0.408
Less	FINANCIAL EXPENSES (D)		0.000	0.000
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.719	0.408
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.570	4.609
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		2.149	(4.201)
Less	TAX (H)		1.587	0.100
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		0.562	(4.301)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(4.301)	0.000
	BALANCE CARRIED TO THE B/S		(3.739)	(4.301)
	IMPORTS
		Raw Materials	1.724	0.415
		Capital Goods	1.706	0.000
	TOTAL IMPORTS		3.430	0.415
	Earnings Per Share (Rs.)		0.02	(0.33)

Particulars	31.03.2011
Sales Turnover (Approximately)	210.000

Expected Sales (2011-12): Rs.270.000 Millions

The above information has been parted by Mr. Kalyan Ghosh.

KEY RATIOS

PARTICULARS		31.03.2010	16.05.2008 to 31.03.2009
PAT / Total Income	(%)	0.38	(8.47)
Net Profit Margin (PBT/Sales)	(%)	1.48	(8.62)
Return on Total Assets (PBT/Total Assets}	(%)	0.75	(1.53)
Return on Investment (ROI) (PBT/Networth)		0.01	0.02
Debt Equity Ratio (Total Liability/Networth)		0.15	0.13
Current Ratio (Current Asset/Current Liability)		1.78	2.47

LOCAL AGENCY FURTHER INFORMATION

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	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	Yes
15) Capital in the business	No
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

BACKGROUND

Subject ("TGPEL" or the "Company"), was incorporated on 16 May 2008 under the provisions of the Companies Act, 1956 as a limited liability company, which is a wholly owned subsidiary of Timex Netherland B. V. The ultimate holding company is Timex Group B. V. The Company's business consists of manufacturing of tools, moulds and plastic components.

OPERATIONS

The company, Timex Group Precision Engineering Limited (TGPEL), established in May 2008 moves its operations from leased premises to an owned factory at A-27, Sector-58, Noida.

The new factory, set up in a strategically located Industrial sector of Noida, is built on a land plot of 3200 sq. mtrs of area with a covered space of 43644 sq. ft. This state-of-the-art manufacturing unit houses a modern Tool room and a Plastic Injection Moulding shop. Utmost care has been taken to include adequate support functions like Quality, Material Storage, Finished goods and facilities. The building has been architecturally designed to conform to all laws of environment and safety. The factory was formerly inaugurated in December 2010.

The company specializes in manufacturing of high Precision Injection Moulds up to 300 ton capacity, using the latest technology machines installed in a controlled environment. Plastic parts are produced on high efficiency microprocessor controlled close loop Injection Moulding Machines (up to a capacity of 300 tons) capable of handling of all types of engineering plastics.

The company has on its team, qualified and experienced staff from reputed institutes across the country backed up by a strong team of Designers supported by the latest Design software.

FIXED ASSETS

• Leasehold Land
• Leasehold Improvements
• Plant and Machinery
• Office equipment
• Furniture and Fixture
• IT Equipment

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.52.23
UK Pound	1	Rs.81.55
Euro	1	Rs.69.60

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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	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	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
-	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.