MIRA INFORM REPORT

Report Date :

05.01.2011

IDENTIFICATION DETAILS

Name :	HENKEL CAC PRIVATE LIMITED
Formerly Known As :	CONVERTER ADHESIVES AND CHEMICALS PRIVATE LIMITED
Registered Office :	906, 9^th Floor, Embassy Centre, Nariman Point, Mumbai – 400 021, Maharashtra
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	20.03.1984
Com. Reg. No.:	11-32433
CIN No.: [Company Identification No.]	U24110MH1984PTC032433
TAN No.: [Tax Deduction & Collection Account No.]	MUMC11050E
PAN No.: [Permanent Account No.]	AAACC5534A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Adhesives based on Plastics, Modified Polyurethane Resin Solution and Modified Polyester Resin Solution.

RATING & COMMENTS

MIRA’s Rating :

A (66)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 897000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company and a part of Henkel Germany. There appears to be some losses incurred by the company in the current year. However, it is due to payment of interest on the loans taken for acquiring the adhesive business from ICI India Limited. The operating profit is satisfactory recorded by the company. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 denied BY

Management non – co-operative

LOCATIONS

Registered Office / Head Office:	906, 9^th Floor, Embassy Centre, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22855388
Fax No.:	91-22-22873995
E-Mail :	abbas0854@yahoo.co.in info@cacindia.com info@henkel.com
Website :	http://www.cacindia.com http://www.henkel.com
Factory :	D-73/2 and D-74/2, T.T.C. Industrial Area, Off Thane Belapur Road, Turbhe Naka, Navi Mumbai – 400 613, Maharashtra, India
Tel. No.:	91-22-27672495 / 27670987
Fax No.:	91-22-27672496
Braches :	Plot no. 1/1, Part 2, TTC Industrial Area, Thane Belapur Road, Koparkhairne Navi Mumbai - 400 709, India
Tel. No.:	91-22-2778-0000-04
Fax No.:	91-22-2778-0025

DIRECTORS

Name :	Mr. Ravinder Roshanlal Talwar
Designation :	Managing Director
Address :	5-A, Rashmi, Carmichael Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	05.10.1945
Qualification :	Ph. D (USA)
Date of Appointment :	03.04.2008
Last Employment :	The Paper Products Limited, Manager Conversion Division
Email:	ravi.talwar@in.henkel.com
Name :	Ms. Sucheta Ravindra Talwar
Designation :	Direcor
Address :	5-A, Rashmi, Carmichael Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	15.11.1947
Date of Casing :	20.03.1984
Qualification :	B. A.
Experience :	20 years
Date of Appointment :	24.02.2005
Name :	Mr. Gaurav Ravinder Talwar
Designation :	Whole Time Director
Address :	5-A, Rashmi, Carmichael Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	15.07.1976
Date of Appointment :	03.04.2008
Email:	gaurav.talwar@in.henkel.com
Name :	Mr. Offergeld Hans Josef Thomas
Designation :	Direcor
Address :	AM Heidberg 37, Duesseldorf, Germany – 40191
Date of Birth/Age :	10.02.1964
Date of Appointment :	24.02.2005
Date of Ceasing :	23.03.2006
Name :	Mr. Niyazi Faruk Arig
Designation :	Director
Address :	Room No. 1001-1004, 10.F, Gangtai Plaza, 700, East Yan AN Road, Shanghai – 200 001, China
Date of Birth/Age :	14.07.1952
Date of Appointment :	24.02.2006
Email:	faruk.arig@in.henkel.com
Name :	Mr. B. Ramalingam
Designation :	Director
Address :	101, Brimmer Court Cary, NC 27511, USA – 27511
Date of Birth/Age :	28.09.1954
Date of Appointment :	24.02.2005
Date of Ceasing :	19.06.2006
Name :	Mr. Man – Ying Cheung
Designation :	Director
Address :	Flat A, 5/F, Tower 2, Robinson Heights, No. 8, Robinons Road, Hong Kong
Date of Birth/Age :	22.08.1966
Date of Appointment :	24.02.2005
Date of Ceasing :	19.06.2006
Name :	Mr. Hans Jorg Thomas Auris
Designation :	Director
Address :	J W Marriot Exc. Apartments 3305, 398 Nanjing Road, West Shanghai, China 200003
Date of Birth/Age :	12.03.1961
Date of Appointment :	20.06.2006
Email:	thomas.auris@cn.henkal.com
Name :	Mr. Desikan Ramaswami
Designation :	Alternate Director
Address :	P-340, Vijay Ratan Vihar, Part – II, Sector 15, Gurgaon – 122 001, Haryana, India
Date of Birth/Age :	21.05.1960
Date of Appointment :	03.04.2008
Name :	Mr. Srinivasan Venkatakrishnan
Designation :	Alternate Director
Address :	322, 4^th A Cross, III Block, Hennur Banaswadi Layout, Bangalore – 560 084, Karnataka, India
Date of Birth/Age :	13.02.1957
Date of Appointment :	03.04.2008
Name :	Mr. Anil Puthiyedath Krishna
Designation :	Director
Address :	6, Del House, 7, Central Avenue, Santacruz, Mumbai – 400 054, Maharashtra, India
Date of Birth/Age :	15.07.1955
Date of Appointment :	17.11.2008
Name :	Mr. Eduard Franciscus Taal
Designation :	Director
Address :	Pattscheiderstrasse 32, 40591 Dusseldrof, Dusseldrof, GM 40591
Date of Appointment :	20.06.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.08.2009

Names of Shareholders	No. of Shares
Henkel Adhesives and Technologies India Private Limited	639999
Naveen Sheth	1
Total	640000

Equity share breakup (percentage of total equity)

(As on 30.09.2009):-

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The company is engaged in Prepared Adhesives based on Plastics, Modified Polyurethane Resin Solution and Modified Polyester Resin Solution.

Products :

Item Code No.(ITC Code No.)	Product Description
35069190	Prepared Adhesives based on Plastics
39095000	Modified Polyureth ane Resin Solution
39079790	Modified Polyester Resin Solution

PRODUCTION STATUS (As on 31.03.2008):-

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Laminating Adhesives	--	9922 Tons P.A. (100% Sold Basis)	12070028 Kgs

GENERAL INFORMATION

Suppliers :

· Bootale Products

· Bago Cans

· Commander Corrugates

· Deccan Cans

· New Bombay Drugs Company

· Packing Remedies

· Sai Prasad Containers

No. of Employees:

130 (Confirmed by Mr. Prashant – Operator)

Bankers :

· Bank of Baroda

Nariman Point Branch, Nirmal Building, Nariman Point, Mumbai – 400 021, Maharashtra, India

Tel. No. : 91-22-22021698 / 1699 / 22021622 / 1215 / 22855050 / 22856607

Fax No. : 91-22-22027168

E-mail : nariman@bankofbaroda.com

Website : http://www.bankofbaroda.com

· Deutsche Bank

Facilities :

Unsecured Loans	(As on 31.03.2009) Rs. in millions
Short term loans from bank
Cash Credit	65.013
Packing Credit	50.610
Bills discounted	16.360
Term Loan	39.525
Loan from Holding Company (Repayable on 15.10.2010, further renewable on the mutual consent of both the parties)	2725.000
Total	2896.508

Banking Relations :

Good

Auditors :

Name 1 :

Gautam G. Parekh

Chartered Accountants

Address :

303, Venkatesh Chambers, Prescot Road, Fort, Mumbai – 400 001, Maharashtra, India

Name 2 :

BSR and company

Chartered Accountants

Address :

KPMG House Kamala Mills Compound 488 Senapati Bapat Marg, Lower parel, Mumbai – 400 013, Maharashtra

Associates :

• Henkel (China) Company Limited
• Henkel (Malaysia) Sdn Bhd
• Henkel (Thailand) Limited
• Henkel Adhesives Company Limited
• Henkel Australia Limited
• Henkel Corporation (US)
• Henkel Kenya Limited
• Henkel KGaA
• Henkel KGaA Hong Kong Branch
• Henkel Korea Limited
• Henkel Loctite Adhesives Limited
• Henkel Loctite Adhesives Limited SRL
• Henkel Philippines Inc
• Henkel Singapore Pte Limited
• OOO Rushenk
• P T Henkel Indonesien
• Polylinks Limited

Name:	Henkel Adhesives Technologies India Private Limited
Address:	Office 502-503, Pentagaon P1 Tower, Magapatta City, Hadapsar, Pune - 411 013, Maharashtra, India
Phone No.:	91-20-30460-401 / -402
Fax No.:	91-20-30460-400
Name:	Henkel Teroson India Limited, Gurgaon
Address:	74, Industrial Development Colony, Mehrauli-Gurgaon Road, Gurgaon-122001, Haryana, India
Phone No.:	91-124-4324-100
Fax No.:	91-124-2321-401
Name:	Henkel Teroson India Limited, Tamilnadu
Address:	Plot No.C-22, SIPCOT Industrial Park Irungattukottai, Sriperumbudur Taluk, Tamilnadu-602105, India
Phone No.:	91-44-47109700-730
Fax No.:	91-44-47193017
Name:	Henkel India Limited, Chennai
Address:	TPL House, First Floor, 3 Cenotaph Road, Teynampet Chennai - 600 018, India
Phone No.:	91-44-24330089
Fax No.:	91-44-24344731
Name:	Henkel Chembond Surface Technologies Limited, Navi Mumbai
Address:	EL 71, MIDC Mahape, Navi Mumbai - 400 710, India
Phone No.:	91-22-66143000
Fax No.:	91-22-27681294
Name:	Henkel Teroson India Limited, Himachal Pradesh
Address:	19E, Sector-II, Parwaoo, Himachal Pradesh – 173220, India
Phone No.:	91-1792-308273
Fax No.:	91-1792-233094
Name:	Henkel Teroson India Limited, Dist. Pune
Address:	Gat No. 626/6, plot No. 4 and 5, Pune - Nasik Highway, Behind Hotel Trimurthy, Village - Kuruli, chakan - Tal. Khed, Dist. Pune – 410501, India
Phone No.:	91-20-30948173
Fax No.:	91-2135-286339

Holding Company :

Henkel Adhesives Technologies India Private Limited

CAPITAL STRUCTURE

As on 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
640000	Equity Shares	Rs.10/- each	Rs.6.400 Millions

Notes

· of the above 560,000 (Previous year: 560,000) Equity Shares of Rs. 10/- each were allotted ass fully paid Bonus Shares by capitalization of general reserve.

· 640,000 shares are held by the holding company Henkel adhesive technology Private Limited (Previous year: 640,000 shares). Henkel AG and Company KGaA, Germany who owns the entire Equity Shares capital of Henkel adhesive Technology Private Limited, is the ultimate Holding Company.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		6.400	6.400	6.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		217.996	357.744	282.051
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		224.396	364.144	288.451
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		2896.508	170.243	70.505
TOTAL BORROWING		2896.508	170.243	70.505
DEFERRED TAX LIABILITIES		0.000	14.031	8.459
TOTAL		3120.904	548.418	367.415
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2162.916	228.554	101.842
Capital work-in-progress		31.219	0.000	41.760
INVESTMENT		257.204	0.000	0.000
DEFERREX TAX ASSETS		39.709	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	375.448	202.122	144.923
	Sundry Debtors	764.021	438.498	292.085
	Cash & Bank Balances	1.386	0.742	0.491
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	268.124	24.033	14.036
Total Current Assets		1408.979	665.395	451.535
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	774.073	331.819	222.212
	Provisions	5.050	13.712	5.510
Total Current Liabilities		779.123	345.531	227.722
Net Current Assets		629.856	319.864	223.813
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3120.904	548.418	367.415

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
Sales Turnover		3345.810	1513.187	1185.960
Other Income			20.016	14.889
Total Income		3345.810	1533.203	1200.849
Profit/(Loss) Before Tax		(190.856)	117.425	78.236
Provision for Taxation		(51.106)	41.712	26.400
Profit/(Loss) After Tax		(139.750)	75.713	51.836
Earnings in Foreign Currency :		1373.491	348.578	266.343
Imports :
	Raw Materials		607.430	400.027
	Trading Goods	500.218	35.718	12.766
	Capital Goods		0.000	0.108
Total Imports		500.218	643.148	412.901
Expenditures :
	Interest		0.000	0.000
	Material Cost		1113.428	882.672
	Increase/(Decrease) in Finished Goods	3536.666	(3.023)	(13.471)
	Depreciation & Amortization		13.725	13.970
	Other Expenditure		291.648	239.442
Total Expenditure		3536.666	1415.778	1122.613
Earnings Per Share (Rs.)		(218.36)	118.30	--

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	(4.18)	4.94	4.32
Net Profit Margin (PBT/Sales)	(%)	----	7.76	6.60
Return on Total Assets (PBT/Total Assets}	(%)	(4.89)	13.14	14.14
Return on Investment (ROI) (PBT/Networth)		(0.85)	0.32	0.27
Debt Equity Ratio (Total Liability/Networth)		16.38	1.42	1.03
Current Ratio (Current Asset/Current Liability)		1.81	1.93	1.98

LOCAL AGENCY FURTHER INFORMATION

NOTE

Sundry creditors details are not available.

financial highlights:-

the current year’s performance of the company is therefore, inclusive of the results of the adhesives business acquired from ICI India Limited and not comparable with the performance of the previous year.

Total income from operations for the year amounted to Rs. 3345.810 millions as compared to Rs. 1544.68 millions achieved during the previous financial year. Operating profit (PBDIT) for the year was Rs. 407.140 millions as compared to Rs. 150.380 millions for the previous year.

Net loss after taxation for the year was Rs. 139.750 millions. It was due to substantial rise in interest cost on loan taken for business acquisition and depreciation of the intangible assets.

future prospect:-

The company is setting up a new plant for shoe adhesive in Thane facility which is likely to be commissioned in October, 2009. The new facility will help in improving the competitiveness of company products.

The directors are hopeful of impressive growth both in the top and the bottom line during the current financial year.

Bankers Charges Report as per Registry

Name of the company	CONVERTER ADHESIVES AND CHEMICALS PRIVATE LIMITED
Presented By	Bank of Baroda, Nariman point Branch, Mumbai – 400 021
1) Date and description of instrument creating the change	Composite Hypothecation agreement dated 3^rd February, 2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 10.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The whole of the Borrowers stocks both present and future and including but without prejudice to the generality of the foregoing words. All stocks of raw materials, work in process finished goods such as chemicals for Adhesives Acides, packing Materials packing materials and stores etc. whatever and whatsoever situated and in transit whether now belonging to or that may at any time during the continuance of this security belonging to t he Borrower or that may be held by any party anything to the order and disposition of the borrower. All the present and future book debts outstanding monies receivable claims bills contracts, engagements and securities which are now due and owing or which may at any time hereafter during the continuance of the this security become due and owing to the Borrower in the course of the its business by any person firm company or body corporate or office or any Municipal or local or public or semi8 government body or authority whatsoever including those relating to the assets leased out and given on hire purchase basis.
4) Gist of the terms and conditions and extent and operation of the charge.	The charges is created to secured letter of credit facility Commission - As per Banks Guidelines Margin – 10 %
5) Name and Address and description of the person entitled to the charge.	Bank of Baroda, Nariman point Branch, Mumbai - 4000021

Fixed Assets

· Land Leasehold

· Buildings

· Plant and Machinery

· Computers

· Office equipments

· Furniture and fixture

· Air conditioners

· Motor cars

· Software Licenses

· Research and Development Assets

· Buildings

· Equipments

· Books

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 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.44.84
UK Pound	1	Rs.69.32
Euro	1	Rs.59.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--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		66

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.