MIRA INFORM REPORT

Report Date :

06.01.2011

IDENTIFICATION DETAILS

Name :	NORMA GROUP PRODUCTS INDIA PRIVATE LIMITED
Registered Office :	S No. 662, Mumbai Pune Road, Talegaon Dabhade, Pune 410506, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	22.07.2008
Com. Reg. No.:	132475
CIN No.: [Company Identification No.]	U29299PN2008FTC132475
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Connecting and Retaining Products for Auto and Non Auto Industries Worldwide.

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 95000
Status :	New Company
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is a new company establishing itself gradually. There appear some accumulated losses recorded by the company. Business is active. Payment terms are not known. The company can be considered for business dealings with some caution, initially.

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 DECLINED BY

Management Non Co Operative (Name Not Disclose)

LOCATIONS

Registered Office :	S No. 662, Mumbai Pune Road, Talegaon Dabhade, Pune 410506, Maharashtra, India
Tel. No.:	91-211-4308508
Fax No.:	91-211-4308516
E-Mail :	info@normagroup.com
Website :	www.normagroup.com

DIRECTORS

AS ON 27.09.2010

Name :	Mr. Rishi Kshettry
Designation :	Director
Date of Appointment :	22.07.2008
Name :	Mr. Othmar Klaus Josef Belker
Designation :	Director
Date of Appointment :	22.07.2008
Name :	Mr. Bhuvan Kshettry
Designation :	Director
Date of Appointment :	22.07.2008
Name :	Mr. Bernd Kleinhens
Designation :	Director
Date of Appointment :	22.07.2008
Name :	Mr. Werner Manfred Deggim
Designation :	Director
Date of Appointment :	22.07.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2010

Names of Shareholders	No. of Shares
DNL Verwaltungs GMBH, Germany	4560000
Taurus Flexibles Private Limited, Jamshedpur, Jharkhand	1140000
Total	5700000

AS ON 27.09.2010

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]		80.00
Bodies corporate		20.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Connecting and Retaining Products for Auto and Non Auto Industries Worldwide.

GENERAL INFORMATION

No. of Employees :

Not Divulged by the Management

Bankers :

Axis Bank, Ground Floor, Pardeshi Building, Chakan Taluka Khed, District Pune, Chakan 410501, Maharashtra, India

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2010	31.03.2009
From Axis Bank
Cash Credit (Secured by SBLC from Commerz Bank, Germany and hypothecation of stock and book debts)	23.184	0.000
Term Loan (Secured by SBLC from Commerz Bank, Germany and hypothecation of plant and machinery)	3.692	0.000
Total	26.876	0.000

Banking Relations :	--
Auditors :
Name :	Chandorkar and Limaye Chartered Accountant
Address :	33/29, Aviva Prabhat Road, Lane No. 3, Pune 411004, Maharashtra, India
Holding Company:	DNL Verwaltungs GMBH, Germany
Associates:	Indo Australian Hose Manufacturing Private Limited
Fellow Subsidiaries:	Norma Germany Gmbh Norma France S.A.S Norma Pacific (Asia) PTE Limited. Norma Polska Norma China Company Limited Breeze Industrial Products DNL Sweden AB Norma Group Holding Gmbh Norma UK Limited Norma Sweden AB

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4560000	Equity Shares (A)	Rs. 10 each	Rs. 45.600 millions
1140000	Equity Shares (B)	Rs. 10 each	Rs. 11.400 millions
			Rs.57.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4560000	Equity Shares (A)	Rs. 10 each	Rs. 45.600 millions
1140000	Equity Shares (B)	Rs. 10 each	Rs. 11.400 millions
			Rs.57.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		57.000	27.000
2] Share Application Money		0.000	26.800
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		(33.058)	(9.405)
NETWORTH		23.942	44.395
LOAN FUNDS
1] Secured Loans		26.876	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		26.876	0.000
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		50.818	44.395
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		30.040	10.385
Capital work-in-progress		24.645	19.897
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.024	4.935
	Sundry Debtors	27.919	5.966
	Cash & Bank Balances	0.483	7.092
	Other Current Assets	11.571	6.483
	Loans & Advances	0.125	0.457
Total Current Assets		67.122	24.933
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	71.605	12.919
	Other Current Liabilities	0.000	0.000
	Provisions	1.520	2.098
Total Current Liabilities		73.125	15.017
Net Current Assets		(6.003)	9.916
MISCELLANEOUS EXPENSES		2.136	4.197
TOTAL		50.818	44.395

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Sales	50.217	5.378
		Other Income	7.941	0.012
		TOTAL (A)	58.158	5.390
Less	EXPENSES
		Manufacturing Expenses	44.784	5.074
		Employees Remuneration	12.986	2.718
		Increase/(Decrease) in Finished Goods	(0.500)	0.000
		Selling and Distribution Expenses	2.521	0.104
		Administrative Expenses	17.461	6.291
		TOTAL (B)	77.252	14.187
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(19.094)	(8.797)
Less	FINANCIAL EXPENSES (D)		0.653	0.005
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(19.747)	(8.802)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.905	0.460
	PROFIT BEFORE TAX (E-F) (G)		(23.652)	(9.262)
Less	TAX (H)		0.000	0.143
	PROFIT AFTER TAX (G-H) (I)		(23.652)	(9.405)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(9.405)	0.000
	BALANCE CARRIED TO THE B/S		(33.057)	(9.405)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.521	0.000
		Commission Earnings	7.575	0.000
	TOTAL EARNINGS		8.096	0.000
	IMPORTS
		Raw Materials	44.786	6.620
		Capital Goods	16.266	13.992
	TOTAL IMPORTS		61.052	20.612
	Earnings Per Share (Rs.)		(4.55)	(7.05)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009
PAT / Total Income	(%)	(40.66)	(174.48)
Net Profit Margin (PBT/Sales)	(%)	(47.09)	(172.22)
Return on Total Assets (PBT/Total Assets}	(%)	(24.34)	(26.22)
Return on Investment (ROI) (PBT/Networth)		(0.98)	(0.20)
Debt Equity Ratio (Total Liability/Networth)		4.17	0.33
Current Ratio (Current Asset/Current Liability)		0.91	1.66

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Particulars	31.03.2010	31.03.2009
For Capital Goods	17.307	4.143
For Other goods and services (Includes dues to group companies and associates amounting to Rs. 62.483 millions)	54.298	8.776
Total	71.605	12.919

FINANCIAL HIGHLIGHTS:

For the year company achieved turnover of INRM 58.70 (previous year INRM 5.40).During the year major projects with OEM’s like Fiat, M and M, Tata Cummins Limited had started and it would be strong base for the company to achieve its sales growth plan.

During the period under review the Company has incurred a Loss of Rs.23.652. Directors of the Company are hopeful to achieve profit in the coming financial years.

FIXED ASSETS:

• Software
• Plant and Machinery
• Moulds and Patterns
• Computers and Laptops
• Office Equipments
• Electrical Installations
• Furniture and Fixtures
• Vehicles

FORM 8

Corporate identity number of the company	U29299PN2008FTC132475
Name of the company	NORMA GROUP PRODUCTS INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	S No. 662, Mumbai Pune Road, Talegaon Dabhade, Pune 410506, Maharashtra, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Others
Particular of charge holder	Axis Bank, Ground Floor, Pardeshi Building, Chakan Taluka Khed, District Pune, Chakan 410501, Maharashtra, India Email: meena.shankar@axisbank.com
Nature of instrument creating charge	Supplemental Deed of Hypothecation (CCD-21) executed on 06/11/2009 to create a single and exclusive charge against all the Present and Future Current Assets including the stock and book debts, Plant and Machineries of the borrower company including the New Machineries to be purchased through the credit facilities extended by the Bank to the Borrower Company and the un-ecumbered Plant and Machineries of the Company.
Date of instrument Creating the charge	06.11.2009
Amount secured by the charge	Rs. 14.200 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest For CC and Term Loan :1.75% below BPLR , (presently the BPLR is 14.75% p.a.) i.e.13.00% p.a. payable at monthly intervals. Terms of repayment CC: On Demand. The tenor would be of 12 months from the date of sanction. For The Term Loan the Tenor would be of 29 months including Moratorium of 3 months.The Repayment is to be carried out in 26 equal monthly installments of Rs.0.154 million. Margin For Stock in all its elements:25% Book debts:25% , for Term Loan :19.60% Extent and operation of the charge Axis Bank. will have single and exclusive charge on all the present and future current assets, plant and machineries and including the assets that would come into existence through the credit facilities extended by the Bank. All other Terms and Conditions as per sanction letter No. PSC/SW/519/2009-10 dated 31/10/2009 . Other The Company by virtue of Board Resolution dated 15/09/2009 duly given the assents to all the Terms and conditions as appeared in the Sanction Letter No. PSC/SW/519/2009-10 dated 31/10/2009 and all other relevant covenants duly acknowledged by the Directors on behalf of the Company.
Short particulars of the property charged (Including location of the property)	All the Stock ,Book debts, all sorts of plant and machineries and record maintained and kept at Registered Office and at the Works of the company:S.No.662 Talegaon Dabhade Old Mumbai Pune Road,Pune-410506.
Particulars of the present modification	By this present modification the existing limit of Cash credit Rs.1.500 millions has been raised to Rs.10.200 millions and charge noted for New Term loan of Rs.4.000 millions

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.45.20
UK Pound	1	Rs.70.27
Euro	1	Rs.59.99

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--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	YES
--AFFILIATION	YES/NO	NO
--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.