Business information report

1. Summary Information

		Country	India
Company Name	STRATA GEOSYSTEMS (INDIA) PRIVATE LIMITED	Principal Name 1	Mr. Ashok Bhawnani
Status	Moderate	Principal Name 2	Mr. Michael Dorfman
		Registration #	11-148625
Street Address	317, Tantia Jogani Industrial Premises, 3^rd Floor, J R Boricha Marg, Lower Parel, Mumbai – 400011, Maharashtra, India
Established Date	15.09.2004	SIC Code	--
Telephone#	91-22-40635100/ 23016906	Business Style 1	Manufacturer
Fax #	91-22-40635199/ 23018114	Business Style 2	--
Homepage	http://www.strataindia.com	Product Name 1	Strata Grid
# of employees	120	Product Name 2	Neo Web
Paid up capital	Rs. 21,000,000/-	Product Name 3	Soil Reinforcement
Shareholders	Foreign Holding – 50% Bodies Corporate-38.88% Directors and Relatives of Directors-10.00% Other Top 50 – 1.12%	Banking	Bank of India
Public Limited Corp.	--	Business Period	7 years
IPO	--	International Ins.	-
Public Enterprise	--	Rating	B (32)
Related Company
Relation -	Country	Company Name	CEO
Associates	India	Radial Investments Private Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	83,519,000	Current Liabilities	37,809,000
Inventories	30,594,000	Long-term Liabilities	90,638,000
Fixed Assets	83,610,000	Other Liabilities	9,000
Deferred Assets	0	Total Liabilities	128,456,000
Invest& other Assets	0	Retained Earnings	48,267,000
		Net Worth	69,267,000
Total Assets	197,723,000	Total Liab. & Equity	197,723,000
Total Assets	186,168,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	147,900,000	Net Profit	11,329,000
Sales(Previous yr)	63,500,000	Net Loss (Prev.yr)	(1,620,000)

MIRA INFORM REPORT

Report Date :

14.06.2011

IDENTIFICATION DETAILS

Name :		STRATA GEOSYSTEMS (INDIA) PRIVATE LIMITED
Registered Office :		317, Tantia Jogani Industrial Premises, 3^rd Floor, J R Boricha Marg, Lower Parel, Mumbai – 400011, Maharashtra
Country :		India
Financials (as on) :		31.03.2010
Date of Incorporation :		15.09.2004
Com. Reg. No.:		11-148625
Capital Investment / Paid-up Capital :		Rs. 21.000 millions
CIN No.: [Company Identification No.]		U17299MH2004PTC148625
TAN No.: [Tax Deduction & Collection Account No.]		MUMS44304B
PAN No.: [Permanent Account No.]		AAICS3717K
Legal Form :		Private Limited Liability Company
Line of Business :		Manufacturer of Soil Reinforcement Products, Designers and Installers of Soil Containment Systems.
No. of Employees :	120 (Office : 20, Factory : 100) (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 270000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a joint venture between Strata Systems Inc., USA and Omnitex Industries (India) Limited. It is an established company having moderate track. The company has successful in wiping off the accumulated losses of previous years. Trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for small to mediocre 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

LOCATIONS

Registered Office :	317, Tantia Jogani Industrial Premises, 3^rd Floor, J R Boricha Marg, Lower Parel, Mumbai – 400011, Maharashtra, India
Tel. No.:	91-22-40635100/ 23016906
Fax No.:	91-22-40635199/ 23018114
E-Mail :	jrk@strataindia.com info@strataindia.com rsbajaj.cs@gmail.com cumballahill.mumbaisouth@bankofindia.co.in
Website :	http://www.strataindia.com
Location :	Rented
Corporate Office:	416, Maheshwari Chambers, 6-3-650, Somajiguda, Hyderabad 500082, Andhra Pradesh, India
Factory :	Plot No. 62/64, Silver Industrial Estate, Bimpore, Daman, India
Area :	3700 sq. ft.
Location :	Owned

DIRECTORS

AS ON : 29.07.2010

Name :	Mr. Ashok Bhawnani
Designation :	Chairman
Address :	6 Park View, Little Gibbs Road, Malabar Hill, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	12.03.1951
Date of Appointment :	15.09.2004
DIN No :	00058344
Name :	Mr. Harold Webster Hill JR
Designation :	Director
Address :	2911, Forst Dale Dr Burlington – 27215, USA
Date of Birth/Age :	07.09.1960
Date of Appointment :	24.09.2008
DIN No :	02457865
Name :	Mr. Chip Fuller Alvin
Designation :	Director
Address :	3150 Rockport Dr Cumming, Georgia, Georgia 30041, USA
Date of Birth/Age :	20.02.1951
Date of Appointment :	25.10.2004
DIN No :	02457998
Name :	Mr. Narendra K. Dalmia
Designation :	Director
Address :	603/604, Highland Park – A, Off. Link Road, Andheri (W), Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	05.01.1955
Date of Appointment :	18.10.2007
DIN No :	00071559

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON : 29.07.2010

Names of Shareholders	No. of Shares
Mr. Ashok M. Bhawnani	105000
Omnitex Industries (India) Limited, India	711380
John Boyle and Co. Inc, Stateville	199994
Strata Systems Inc, USA	850006
Sun-N-Sand Investment and Finance Company Private Limited, India	105000
Mr. Narendra M. Dalmia	3480
Ms. Manorma N. Dalmia	46500
Mr. Gautam M. Dalmia	1000
Ms. Shaily N. Dalmia	1000
Ms. Vidyadevi M. Dalmia	1000
Mr. Vijay Kumar M. Dalmia	50000
Mr. Neeraj V. Dalmia	1000
Ms. Sangeeta V. Dalmia	1000
Mr. Satish Naik	10500
Mr. C V Kanade	10500
Mr. J Ramakrishnan	2620
Mr. Rajesh S. Saraf	10
Nirmal Manju Ketan	10
Total	2100000

Equity Share break – up as on 30.09.2009

Category	Percentage
Foreign Holding (Foreign institutional investors, Foreign companies, Foreign financial institutions, Non resident Indians or Overseas corporate bodies or Others)	50.00
Bodies Corporate	38.88
Directors or relatives of director	10.00
Other top fifty shareholders	1.12
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Soil Reinforcement Products, Designers and Installers of Soil Containment Systems.

Products :

ITC Code	Product Description
59.11.90.90	Polyester Geogrid

v Strata Grid

v Neo Web

v Soil Reinforcement Products

v Designers

v Installers of Soil Containment Systems

GENERAL INFORMATION

Customers :

v National Highways Authority of India, New Delhi

v Public Works Department, Chattisgarh

v Indore Development Authority, Indore

v Punjab Infrastructure Development Board, Chandigarh

v Thane Municipal Corporation, Thane, Maharashtra

v Indian Oil Corporation, Chandigarh

v Zamil Steels, Ranjangaon, Pune

v G G Constructions, Raipur,

v Prakash Asphalt and Toll Highways, Mhow,

v S P Singla Constructions, Panchkula, Haryana

v Rajdeep Constructions, Pune

v Soma Enterprises, Hyderabad

v Ideal Road Builders, Mumbai

No. of Employees :

120 (Office : 20, Factory : 100) (Approximately)

Bankers :

v Bank of India

Cumballa Hill Branch, Delstar, N S Patkar Marg, (Huges Road), Mumbai - 400026, Maharashtra, India

Facilities :

Secured Loans (Rs. in millions)

Particulars	31.03.2010	31.03.2009
From Bank of India
Term Loan	42.500	50.000
Cash Credit (Stocks)	10.205	5.370
Cash Credit (Book Debts)	24.933	11.205
Total	77.638	66.575

Note: Amount repayable within one year Rs. 10.000 millions (Previous Years Rs. 7.500 millions)

Unsecured Loans (Rs. in millions)

Particulars	31.03.2010	31.03.2009
From Shareholder	3.000	2.550
From Companies	10.000	7.000
Interest Accured and Due	0.000	0.087
Total	13.000	9.637

Banking Relations :	--
Auditors :
Name :	J. G. Verma and Company Chartered Accountant
Address:	301 – B, Niranjan 99, Marine Drive, Mumbai – 400002, Maharashtra, India
Tel. No.:	91-22-22813868/22814743
Fax No.:	91-22-22838867
Associates/Subsidiaries :	v Radial Investments Private Limited v Biznessmart.com (India) Limited v Omnitex Industries (India) Limited v Sun-N-Sand Hotels Private Limited v Sunrise Commercial Private Limited v Saanwaria Polyester Private Limited v Biznessmart.Com (India) Limited v Dalmia Polytex Private Limited v Mahalaxmi Seamless Limited v Sharp Infrastructure private Limited
Holding Company :	v Omnitex Industries (India) Limited – (Member and Holding 33.88% Equity Shares) v John Boyle and Company, USA – (Member and Holding Company of Starta Systems Inc., USA)
Joint Venture :	v Strata Systems Inc., USA – (Member and Party to Joint Venture)

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2250000	Equity Shares	Rs. 10/- each	Rs. 22.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2100000	Equity Shares	Rs. 10/- each	Rs. 21.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		21.000	21.000	12.000
2] Share Application Money		0.000	0.054	25.529
3] Reserves & Surplus		48.267	45.000	0.000
4] (Accumulated Losses)		0.000	(7.978)	(6.358)
NETWORTH		69.267	58.076	31.171
LOAN FUNDS
1] Secured Loans		77.638	66.575	0.000
2] Unsecured Loans		13.000	9.637	6.687
TOTAL BORROWING		90.638	76.212	6.687
DEFERRED TAX LIABILITIES		0.009	0.000	0.000
TOTAL		159.914	134.288	37.858
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		83.610	93.244	7.976
Capital work-in-progress		0.000	0.000	21.415
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.594	14.538	3.158
	Sundry Debtors	62.073	31.796	11.808
	Cash & Bank Balances	5.330	5.943	1.137
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	16.116	14.402	5.709
Total Current Assets		114.113	66.679	21.812
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.760	12.961	8.574
	Current Liabilities	28.746	12.022	4.440
	Provisions	2.303	0.652	0.351
Total Current Liabilities		37.809	25.635	13.365
Net Current Assets		76.304	41.044	8.447
MISCELLANEOUS EXPENSES		0.000	0.000	0.019
TOTAL		159.914	134.288	37.858

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	TURNOVER		147.900	63.500	59.195
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		38.056	5.031	(1.427)
Less	FINANCIAL EXPENSES		12.687	3.161	0.166
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		25.369	1.870	(1.593)
Less	DEPRECIATION/ AMORTISATION		12.011	3.385	0.763
	PROFIT BEFORE TAX		13.358	(1.515)	(2.356)
Less	TAX		(2.029)	(0.105)	0.123
	PROFIT AFTER TAX		11.329	(1.620)	(2.479)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(7.978)	(6.358)	(3.879)
Less	PRIOR PERIOD ADJUSTMENT FOR TAXES		(0.038)	0.000	0.000
Less	PRIOR PERIOD EXPENSES		(0.046)	0.000	0.000
	BALANCE CARRIED TO THE B/S		3.267	(7.978)	(6.358)
	IMPORTS
		Raw Materials	28.228	23.387	12.559
		Capital Goods	0.000	13.825	12.366
	TOTAL IMPORTS		28.228	37.212	24.925
	Earnings Per Share (Rs.)		5.35	(0.85)	(5.97)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Net Profit Margin (PBT/Sales)	(%)	(9.03)	(2.39)	(8.07)
Return on Total Assets (PBT/Total Assets}	(%)	(6.76)	(0.95)	(4.60)
Return on Investment (ROI) (PBT/Networth)		(0.19)	(0.03)	(0.07)
Debt Equity Ratio (Total Liability/Networth)		1.85	1.75	0.43
Current Ratio (Current Asset/Current Liability)		3.02	2.60	1.63

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS AND FINANCE

During the year the Company has made profits and wiped out accumulated losses of previous years.

The company has produced 1,072,267 Sq Meters of StrataGrid during the year as against 68,842 Sq Meters produced during the last year.

During the year the Company achieved a Turnover of Rs 147.9 Million (Net of duties) against Rs 63.5 Million in the previous year.

The Company has not made any fresh issue of its equity shares during the year.

The Company enhanced its credit facilities to Rs 127.5 Million from its Bankers

OUTLOOK

The Company's Manufacturing Facility is streamlined to meet the demands of the market. During the year the company gained further market share and is poised to place itself as a major supplier of Geogrids in Indian Market during the current year.

BACKGROUND:

Subject was incorporated in India on September 15, 2004 as a Private Limited Company under the Companies Act, 1956 with its registered office located in Mumbai. The Company is a Joint Venture between Strata Systems Inc., USA (a subsidiary of John Boyle and Company, Inc. USA ) and Omnitex Industries( India) Limited, Mumbai for manufacturing and marketing of 'Geotextilc' Products including "Geogrids" in India and certain other countries. The Company has commenced manufacturing activities during 2009.

FORM 8

Corporate identity number of the company	U17299MH2004PTC148625
Name of the company	STRATA GEOSYSTEMS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	317, Tantia Jogani Industrial. Premises, 3rd Floor, J. R. Boricha Marg, Lower Parel, Mumbai – 400011, Maharashtra, India E-mail: jrk@strataindia.com
This form is for	Modification of charge
Charge Identification Number of the charge to be modified	10104020
Types of charge	v Immovable property
Particulars of the charge holder	v Bank of India Cumballa Hill Branch, Delstar, N S Patkar Marg, (Huges Road), Mumbai - 400026, Maharashtra, India E-mail : cumballahill.mumbaisouth@bankofindia.co.in
Nature, description and brief particulars of the instrument(s) creating or modifying the charge	Continuing Oral Assent
Date of instrument Creating the charge	30.11.2009
Amount secured by the charge	Rs. 127.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC A/c's :1% over BPLR presently 13% p.a. with monthly rests or at such other rate that may be advised by the Bank from time to time., L/C and Bank Guarantee : As per H. O. guidelines. Terms of Repayment On Demand Margin As required by Bank from time to time Extent and operation of the charge Security in favour of Bank for due repayment by the company to the Bank at Cumballa Hill Mumbai on demand of the said facilities aggregating Rs. 127.500 millions with interest at agreed rate of interest. The security shall remain and continue for any advance of any nature now due or pending or that may be made or become due hereafter from time to time either in the said loan/cash credit account or in any other account/s and whether singly or jointly with another or others Others whether at Cumballa Hill Branch or any other branch or office of the Bank and/or for any indebtedness or liability whatsoever and for all costs, charges, and expenses whatsoever paid or incurred by the Bank. Revised Facility & Limits:1)T/L Rs. 47.500 millions 2)CC Hypothecation of Stocks Rs. 18.000 millions 3)CC Hypothecation of BD Rs. 43.500 millions, Max. (II+III) Rs. 50.000 millions, 4) Letter of Credit (DP/DA) (I/F) up to 90 days Rs. 20.000 millions 5) Bank guarantee Rs. 30.000 millions Max.(I+ II) Rs. 30.000 millions Total Rs. 127.500 millions.
Description of the property charged indicating whether it is a charged on	i) Companies immovable properties comprising land and buildings and other structures now or hereafter to be erected and fixed machinery and plant, fixtures and fittings ii) or installed thereon situated at Plot No.62,63 and 64 admg. about 1138.5 Sq. Mtrs each (Total 3415.5 Sq. Mts.) along with factory Bldg, constructed thereon bearing 35,36,38/1,39/1,41/1-6,50,52/6,53/A,53/B iii) 54,55/3,55/6-8,56/1-5,57/19,58,59,60/1,60/2-A,60/3-6 at Silver Industrial Estate, Bhimpore, Daman admeasuring 1138.50 sq. mtrs registration sub district Daman.
Date of instrument modifying the charge	05.11.2008
Particulars of the present modification	2nd Modification .The principal amount of charge on mortgaged property is increased to Rs.127.500 millions.

FIXED ASSETS

v Land – Freehold

v Factory Building at Daman

v Plant and Machinery

v Electrical Installation

v Computers and Office Equipments

v Furniture and Fixture

v Vehicles

v Computer Software

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. 44.87
UK Pound	1	Rs. 72.83
Euro	1	Rs. 64.37

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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		32

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.