MIRA INFORM REPORT

Report Date :

28.03.2011

IDENTIFICATION DETAILS

Name :	DURAVIT INDIA PRIVATE LIMITED (w.e.f. 26.12.2006)

Formerly Known As :	DURAVIT BATHROOM PRODUCTS PRIVATE LIMITED

Registered Office :	61, Titanium, Near Prahlad Nagar, Auda Garden, Off 100 Feet Road, Prahlad Nagar, Ahmedabad – 380 051, Gujarat

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	09.03.2006

Com. Reg. No.:	047919

CIN No.: [Company Identification No.]	U26910GJ2006PTC047919

TAN No.: [Tax Deduction & Collection Account No.]	AHMD03650D

PAN No.: [Permanent Account No.]	AACCD3485F

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Trader Ceramics and Bathroom Products.

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 2100000

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. However, 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

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. Manav
Designation :	Accounts Department
Date :	26.03.2011

LOCATIONS

Registered Office :	61, Titanium, Near Prahlad Nagar, Auda Garden, Off 100 Feet Road, Prahlad Nagar, Ahmedabad – 380 051, Gujarat, India
Tel. No.:	91-79-66112300
Fax No.:	91-79-66112316
E-Mail :	info@in.duravit.com
Website :	www.duravit.com

DIRECTORS

As on : 01.07.2010

Name :	Mr. Franz Kook
Designation :	Chairman
Address :	Weiderstr 78132, Hornberg, Germany 78132
Date of Birth/Age :	31.05.1946
Date of Appointment :	09.03.2006

Name :	Mr. Asutosh Shah
Designation :	Managing Director
Address :	303, Asopalav Apartment, 31, Gujarat Society Paldi, Ahmedabad – 380 007, Gujarat, India
Date of Birth/Age :	28.03.1963
Date of Appointment :	09.03.2006

Name :	Mr. Reinhard Karl Volk
Designation :	Additional Director
Date of Birth/Age :	26.03.1951
Date of Appointment :	22.08.2009

Name :	Mr. Albrecht Joachim Graf Von Der Groeben
Designation :	Director
Address :	Riedweg Widen, Germany
Date of Birth/Age :	28.01.1954
Date of Appointment :	06.04.2006

Name :	Mr. Michael Werner Griebe
Designation :	Director
Address :	Hohe Str 17 , Weinbohla, Germany - 01689
Date of Birth/Age :	09.03.1949
Date of Appointment :	01.07.2010

KEY EXECUTIVES

Name :	Mr. Dushyant Shah
Designation :	Company Secretary
Address :	A-102, Riviera Heights, Prahladnagar, Ahmedabad – 380051, Gujarat, India
Date of Birth/Age :	25.11.1955
Date of Appointment :	13.12.2007

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on : 01.07.2010

Names of Shareholders		No. of Shares
Asutosh Vimalbhai Shah		100
Franz Kook		100
Duravit AG		61742370
Total		61742570

As on : 01.07.2010

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]		100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader Ceramics and Bathroom Products.

Exports :
Products :	Ceramics Bathroom Products
Countries :	Germany Sri Lanka

Imports :
Products :	Raw Materials
Countries :	China Sri Lanka Germany

Terms :
Selling :	L/C, Cash, Credit

Purchasing :	L/C, Cash, Credit

Production Status (As on : 31.03.2010)

Particulars	Units	Capacity Installed	Actual Production

Ceramic Goods	Nos.	195000	--

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

300 (Approximately) (In Office 30 and In Factory – 270)

Bankers :

State Bank of India, Specialised Commercial Branch, Jay Laxmi Plaza, Ganesh Crossing, Anand – 388 001, Gujarat, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Term Loan from a Bank
In Foreign Currency	346.237	0.000
In Domestic Currency	129.083	0.000
Interest accrues and due on above loans	2.844	0.000
Total	478.164	0.000

Note :

Above term loans from a bank are secured by mortgage of entire land and building, plant and machinery and other fixed assets at the projects site of the company at village indranaj, Taluka Tarapur, District Anand in the state of Gujarat and future collaterally secured by hypothecations charge over entire current assets.
Amount Payable within 12 months out of the above loans is Rs. 90.000 millions.


Banking Relations :	--

Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Heritage, 3^rd Floor, Near Gujarat Vidyapith, Off Ashram Road, Ahmedabad – 380 014, Gujarat, India

Holding Company :	Duravit AG, Germany

Fellow Subsidiaries :	Duravit Aisa Duravit China Duravit Turkey

CAPITAL STRUCTURE

As on : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

70000000	Equity Shares	Rs.10/- each	Rs.700.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

58256145	Equity Shares	Rs.10/- each	Rs.582.561 millions

Note :

58255945 (Previous Year 24598590) Equity Shares are held by Holding Company Duravit AG.

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

70000000	Equity Shares	Rs.10/- each	Rs.700.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

61742570	Equity Shares	Rs.10/- each	Rs.617.426 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		582.561	245.988	8.820
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	1.227	1.143
4] (Accumulated Losses)		(47.100)	0.000	0.000
NETWORTH		535.461	247.215	9.963
LOAN FUNDS
1] Secured Loans		478.164	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		478.164	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		1013.625	247.215	9.963

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		954.028	61.467	4.042
Capital work-in-progress		15.892	152.550	0.000

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.663	0.303

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	102.418	56.828	49.791
	Sundry Debtors	0.238	0.087	0.023
	Cash & Bank Balances	19.614	24.070	14.124
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	33.855	6.312	0.324
Total Current Assets		156.125	87.297	64.262
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	23.713	8.565	10.728
	Sundry Creditors	106.633	48.308	46.984
	Provisions	1.205	3.415	0.932
Total Current Liabilities		131.551	60.288	58.644
Net Current Assets		24.574	27.009	5.618

MISCELLANEOUS EXPENSES		19.131	5.526	0.000

TOTAL		1013.625	247.215	9.963

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	130.993	136.297	84.550
		Other Income	43.201	24.187	21.594
		TOTAL (A)	174.194	160.484	106.144

Less	EXPENSES
		Increase in stock of finished and Process Stock	(33.097)	(7.036)	0.000
		Raw material consumed	4.919	0.000	0.000
		Finished goods purchased	124.616	108.814	58.171
		Manufacturing Expenses	3.288	0.000	0.000
		Personnel Cots	37.775	23.202	14.863
		Operating and Other Expenses	46.538	32.164	29.582
		TOTAL (B)	184.039	157.144	102.616

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(9.845)	3.340	3.528

Less	FINANCIAL EXPENSES (D)		7.817	0.000	0.000

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(17.662)	3.340	3.528

Less/ Add	DEPRECIATION/ AMORTISATION (F)		30.003	1.812	0.936

	PROFIT BEFORE TAX (E-F) (G)		(47.665)	1.528	2.592

Less	TAX (I)		0.662	1.444	1.606

	PROFIT AFTER TAX (G-I) (J)		(48.327)	0.084	0.986

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.226	1.142	0.246

	BALANCE CARRIED TO THE B/S		(47.100)	1.226	1.142

	EARNINGS IN FOREIGN CURRENCY
		Commission Earnings	35.528	20.784	20.764
	TOTAL EARNINGS		35.528	56.312	20.764

	IMPORTS
		Raw Materials	7.913	--	--
		Capital Goods	124.616	108.814	75.528
	TOTAL IMPORTS		132.529	108.814	75.528

	Earnings Per Share (Rs.)		(1.26)	0.01	0.34

Expected Sales (2010-2011) : Rs. 650.000 millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(27.74)	0.05	0.93

Net Profit Margin (PBT/Sales)	(%)	(36.38)	1.12	3.07

Return on Total Assets (PBT/Total Assets}	(%)	(4.29)	1.03	3.80

Return on Investment (ROI) (PBT/Networth)		(0.08)	0.01	0.26

Debt Equity Ratio (Total Liability/Networth)		1.13	0.24	5.89

Current Ratio (Current Asset/Current Liability)		1.18	1.45	1.10

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details :

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Micro and Small Enterprises (To the extent identified with available information)	--	--	--
Others Duravit AG, Germany Rs. 29.155 Millions) Previous Year – Rs. 36.737 Millions) Duravit Asia Rs. 1.056 Millions (Previous Year – Rs. 4.970 Millions)	36.927	42.470	46.984
Creditors for Capital Goods
Includes Duravit China Rs. 6.363 (Previous Year – Rs. Nil)	69.706	5.838	--

Total	106.633	48.308	46.984

HIGHLIGHTS :

The key highlights of the operation and the project are :

Sales of goods traded was almost at same level, however, direct sales for project customers increased from Rs. 115.75 millions to Rs 177.65 millions showing an increase of more than 53 %.

Fixed assets including , machineries worth Rs. 87.531 millions and Rs. 4.726 millions were capitalized on 1^st January 2010 and 31^st March 2010 respectively.

Factory building is fully operational whereas administrative building is expected to complete in August 2010

Draw entire Foreign Currency loan of EURO 5 million and Term Loan of Rs. 179 Millions as on 25^th June 2010

Commercial Production started on 1^st June 2010

First Invoice of the manufactured goods was made on 8^th, June 2010

Old Warehouse Shifted to facto9ry site and now Entire dispatch s are taking place from the factory.

Nos. of Employees including unskilled employees, increased to 161 from 40 as at the end of previous year, in addition, more than 180 unskilled on contract basis are working.

Land Produced for the Housing.

OPERATIONS :

The total income including commission earned from Duravit AG was Rs. 174.20 million during the year as compared to Rs, 160.480 millions In the previous year. The Profit Loss) Before Tax (P81) for he year was Rs.(47.670) Millions as compared to PBT of Rs. 1.530 million, mainly due to depreciation of Rs. 30 million and initial Operating cost due to start of manufacturing activities.

FINANCE :

State Bank of India, Specialized Commercial Branch, Anand had sanction Term Loan of Rs. 790.000 millions. A FCNR (B) Term Loan of equivalent of EURO 5.00 million within the Term Loan of Rs. 790.000 millions was also sanctioned for the project. The Company executed mortgage document during the year and has so far drawn entire FCNR (B) Term Loan of EURO 5.00 Million and Term Loan of Rs. 179.000 Million till 25.06,2010.

The Company has also received equity of worth EURO 8.99 Million TiIl 25.06.2010 for the project.

The repayment of loan will commence from July, 2010.

Note:

The situation of the registered office of the company was changed from B 703, Shapath Opposite Karnavati Club, Near Chimanbhai Patel Institute, S.G. Highway, Ahmedabad – 380 051, Gujarat to the present address w.e.f. 03.12.2008.

This form is for	Creation of charge
Corporate identity number of the company	U26910GJ2006PTC047919
Name of the company	DURAVIT INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	61, Titanium, Near Prahlad Nagar, Auda Garden, Off 100 Feet Road, Prahlad Nagar, Ahmedabad – 380 051, Gujarat, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of India, Specialised Commercial Branch, Jay Laxmi Plaza, Ganesh Crossing, Anand – 388 001, Gujarat, India E-Mail: p.muley@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Agreement of loan for overall limit (Form C.2)
Date of instrument Creating the charge	11.05.2009
Amount secured by the charge	Rs.890.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 12.5% Terms of Repayment: Cash Credit repayable on demand. Term Loan repayment to start after a moratorium of 12 months from first draw down on a monthly basis and the last installment will fall due in March, 2016. Margin: Funds based limits – Raw materials – 25%, semi finished and finished goods – 40%, domestic receivables – 50%, term loan – 40/ 50% Non-fund based limits – Bank guarantees – 25% Extent and Operation of the charge: First charge by way of hypothecation of entire goods, movables and other assets present and future including documents of the title to the goods and other assets such as book debts, outstanding moneys, receivables etc and extension of hypothecation charge over entire current assets as collateral security for term loan.
Short particulars of the property charged	First charge by way of hypothecation of entire goods, movables and other assets present and future including documents of the title to the goods and other assets such as book debts, outstanding moneys, receivables etc and extension of hypothecation charge over entire current assets as collateral security for term loan located at the project site of the company at Village Indranaj, Taluka Tarapur, District Anand in the state of Gujarat.

Corporate identity number of the company	U26910GJ2006PTC047919
Name of the company	DURAVIT INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	61, Titanium, Near Prahladnagar Auda Garden, Off 100 Feet Road, Prahladnagar, Ahmedabad – 380051, Gujarat India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	State Bank of India, Specialised Commercial Branch, Jay Laxmi Plaza, Ganesh Crossing, Anand – 388001, Gujarat, INDIA
Nature of instrument creating charge	Letter regarding the grant of Individual limits within the overall limit
Date of instrument Creating the charge	18/12/2010
Amount secured by the charge
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : For Cash Credit at 4.25% above Base Rate - effective rate 11.75% p. a. For Term Loan at SBAR i.e. 12.25% Terms of repayment : Cash Credit repayable on Demand, Term Loan repayable in monthly installment basis. The last installment will fall due in June, 2016. Margin : For Fund based Limits : Raw materials (Domestic & Imported) - 25%, Stock in process & Finished Goods - 40%, Book debts & Receivables - 50% For Term Loan - 40% / 50% For Non Fund based limits - 25% Extent and operation of the charge : First Charge by way of hypothecation of entire goods, movables and other assets present and future including documents of the title to the goods and other assets such as book debts, outstanding moneys, receivables etc. and extension of hypothecation charge over entire current assets as collateral security for Term Loan. Other : Nil
Short particulars of the property charged (Including location of the property)	First Charge by way of hypothecation of entire goods, movables and other assets present and future located at the plant site at Village Indranaj, Taluka Tarapur, District Anand in the state of Gujarat
Date of instrument modifying the charge	11/05/2009
Particulars of the present modification	1. Term Loan amount reduced from Rs. 790.000 millions to Rs. 650.000 millions. 2. Rate of Interest on Cash Credit Limit reduced from 12.5% to 11.75%. 3. New Non Fund based Letter of Credit limit of Rs. 20.000 millions sanctioned. 4. New Non Fund based Credit Exposure Limit of Rs. 16.700 millions for forward contracts sanctioned.

TRADE REFERNCES :

Rocka
Parrywere

FIXED ASSETS:

Land
Buildings
Plant and Machinery
Furniture and Fixture
Vehicles
Office Equipment
Computer
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. 44.65
UK Pound	1	Rs. 71.91
Euro	1	Rs. 62.28

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
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	2
--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.

MIRA INFORM REPORT

102.418

56.828

0.238

0.087

19.614

24.070

0.000

0.000

33.855

6.312

156.125

87.297

23.713

8.565

1.205

3.415

131.551

60.288

24.574

27.009

(27.74)

0.05

(36.38)

1.12

(4.29)

1.03

(0.08)

0.01

1.13

0.24

1.18

1.45

Unit