MIRA INFORM REPORT

Report Date :

12.11.2011

IDENTIFICATION DETAILS

Name :	EFTEC SHROFF (INDIA) LIMITED
Registered Office :	Plot No.645/ 646, Oberoi Chambers – II, 4^th and 5^th Floor, New Link Road, Andheri (West), Mumbai-400053, Maharashtra
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	30.06.2000
Com. Reg. No.:	11-127483
Capital Investment / Paid-up Capital :	Rs.15.000 Millions
CIN No.: [Company Identification No.]	U25200MH2000PLC127483
TAN No.: [Tax Deduction & Collection Account No.]	MUME05038F/ PNEE02545E
PAN No.: [Permanent Account No.]	AAACE7652D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Importer of Acrylic Coating Chemicals, Preventing Coating Chemicals, Industrial Coating Chemicals, Adhesives and Sealants.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1200000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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 – 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. Haresh Jagoja
Designation :	Finance Controller
Contact No.:	91-22-26747900

LOCATIONS

Registered Office :	Plot No.645/ 646, Oberoi Chambers – II, 4^th and 5^th Floor, New Link Road, Andheri (West), Mumbai-400053, Maharashtra, India
Tel. No.:	91-22-26747900
Fax No.:	91-22-26736178 / 26736193
E-Mail :	esil@eftecindia.com haresh.jaguja@eftecindia.com
Website :	www.eftecindia.com
Area :	5000 sq ft
Location :	Owned
Factory :	Plot No.G-9, Ranjangaon, M.I.D.C. Area, Taluka Shirur, Pune-412201, Maharashtra, India

DIRECTORS

As on 27.05.2011

Name :

Mr. Shalil Shashikumar Shroff

Designation :

Director/ Chairman

Address :

5B/ 5C, Lohtse CHS Limited, Ruia Park, Juhu, Mumbai – 400 049, Maharashtra, India

Date of Birth/Age :

11.12.1964

Date of Appointment :

30.06.2000

DIN No.:

00015621

Other Directorship:

S. No.	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
1	U99999MH1990PTC055537	HARSORA ENGINEERING PRIVATE LIMITED	Director	16-07-92	16-07-92	12-03-09	Active	NO
2	L24231CH1975PLC003603	PUNJAB CHEMICALS AND CROP PROTECTION LIMITED	Managing director	15-01-09	15-01-98	-	Active	NO
3	U25200MH2000PLC127483	EFTEC SHROFF (INDIA) LIMITED	Director	30-06-00	30-06-00	-	Active	NO
4	U65944MH1982PTC028087	HEM-SIL TRADING AND MANUFACTURING PRIVATE LIMITED	Director	27-03-03	27-03-03	-	Active	NO
5	U24211MH1997PTC106812	I A AND I C CHEM PRIVATE LIMITED	Director	25-02-06	25-02-06	-	Active	YES
6	U63032MH2007PLC168271	STELLAR MARINE PAINTS LIMITED	Director	01-03-07	01-03-07	-	Active	NO
7	U25190MH2010PTC209780	L AND L PRODUCTS SHROFF PRIVATE LIMITED	Director	03-11-10	03-11-10	-	Active	NO

Name :

Mrs. Rupam Shalil Shroff

Designation :

Director

Address :

5B/ 5C, Lohtse CHS Limited, Ruia Park, Juhu, Mumbai – 400 049, Maharashtra, India

Date of Birth/Age :

02.05.1968

Date of Appointment :

30.06.2000

DIN No.:

00015669

Other Directorship:

S. No.	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
1	U65944MH1982PTC028087	HEM-SIL TRADING AND MANUFACTURING PRIVATE LIMITED	Director	21-09-95	21-09-95	-	Active	NO
2	U25200MH2000PLC127483	EFTEC SHROFF (INDIA) LIMITED	Director	30-06-00	30-06-00	-	Active	NO
3	L24231CH1975PLC003603	PUNJAB CHEMICALS AND CROP PROTECTION LIMITED	Whole-time director	06-04-09	06-04-06	11-08-11	Active	NO
4	U63032MH2007PLC168271	STELLAR MARINE PAINTS LIMITED	Director	01-03-07	01-03-07	-	Active	NO

Name :

Mr. Nitin Pravin Mehta

Designation :

Whole-Time Director

Address :

3, Mayflower, Carmichael Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

14.02.1966

Date of Appointment :

08.04.2010

DIN No.:

03047661

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U25200MH2000PLC127483	EFTEC SHROFF (INDIA) LIMITED	Director	28-04-11	08-04-10	Active	NO

Name :

Mr. Ulf Peter Niclas Jakobsson

Designation :

Director

Address :

Unit 1902, Building 4, Parkview Service Apartment, Changing Road, 888, 200042, Shanghai P.R.C.

Date of Birth/Age :

04.08.1965

Date of Appointment :

31.03.2007

DIN No.:

01461018

Name :

Mr. Markus Johann Kremmel

Designation :

Director

Address :

Sankt-Antonius-Strabe 26A 6890 Lustenau

Date of Birth/Age :

09.10.1960

Date of Appointment :

31.03.2007

DIN No.:

01460881

KEY EXECUTIVES

Name :	Mr. Haresh Jaguja
Designation :	Finance Controller

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.05.2011

Names of Shareholders	No. of Shares
Shalil Shashikumar Shroff	5
Rupam Shalil Shroff	5
Shaila Shashikumar Shroff	5
Nitin Pravin Mehta	5
Manhar Shantilal Broker	5
Vipul Harsukhlal Joshi	5
Pankaj Maganlal Naik	5
EFTEC Asia Pte Limited, Singapore	735000
Hem-Sil Trading and Manufacturing Private Limited, India	764965
Total	1500000

As on 27.05.2011

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]	49.00
Bodies corporate	51.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Importer of Acrylic Coating Chemicals, Preventing Coating Chemicals, Industrial Coating Chemicals, Adhesives and Sealants.

Products :

Product Description	Item Code No. (ITC Code)
Anti-Corrosive Chemicals	3506100

PRODUCTION STATUS (AS ON 31.12.2010)

Particulars	Unit	Installed Capacity	Actual Production
Wax Plant	Tons	4800	2139.68
PVC Plant	Tons	7584	4860.24

Note: The installed capacities mentioned above have been determined by the Company’s technical officials and have been accepted by Auditors without verification, being a technical matter.

GENERAL INFORMATION

No. of Employees :

150 (Approximately)

Bankers :

• ING Vysya Bank Limited, 103/ 104, ‘A’ Wing, I Floor, Floral Deck Plaza, MIDC Central Road, Andheri (East), Mumbai – 400 093, Maharashtra, India
• State Bank of India, Industrial Finance Branch, Andheri (East), Mumbai – 400 069, Maharashtra, India

Facilities :

Secured Loan	As on 31.12.2010 [Rs. in Millions]	As on 31.12.2009 [Rs. in Millions]
Term Loan		140.552
Cash credit from a scheduled bank		2.962
Total	144.043	143.514

Banking Relations :	--
Auditors :
Name :	Walker Chandiok and Company Chartered Accountants
Address :	Engineering Centre, 6^th Floor, 9 Matthew Road, Opera House, Mumbai – 400 004, Maharashtra, India
Tel. No.:	91-22-23671623
Fax No.:	91-22-23671624
E-Mail :	mumbai@wcgt.in
Pan No.:	AACPP3023C
Holding Company:	Hem-Sil Trading and Manufacturing Private Limited [U65944MH1982PTC028087]
Venture in respect of which the Company is an associate/joint venture :	EFTEC Asia Pte Limited
Entities having common Control :	Eftec Thailand (Company) Limited Eftec Nv Eftec North America L.L.C
Entities having significant influence :	Punjab Chemical and Crop Protection Limited

CAPITAL STRUCTURE

As on 27.05.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2010	31.12.2009	31.12.2008
SHAREHOLDERS FUNDS
1] Share Capital		15.000	15.000	15.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		285.805	200.002	127.846
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		300.805	215.002	142.846
LOAN FUNDS
1] Secured Loans		144.043	143.514	162.978
2] Unsecured Loans		0.000	0.000	0.170
TOTAL BORROWING		144.043	143.514	163.148
DEFERRED TAX LIABILITIES		9.132	0.340	0.437
TOTAL		453.980	358.856	306.431
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		259.933	246.011	57.899
Capital work-in-progress		0.000	8.711	128.812
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	108.910	49.059	62.823
	Sundry Debtors	156.631	110.999	103.057
	Cash & Bank Balances	9.373	9.329	5.024
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	27.975	28.979	16.911
Total Current Assets		302.889	198.366	187.815
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		85.461	62.949
	Other Current Liabilities	103.946	1.428	1.297
	Provisions	4.896	7.343	3.849
Total Current Liabilities		108.842	94.232	68.095
Net Current Assets		194.047	104.134	119.720
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		453.980	358.856	306.431

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Sales – Manufacturing	755.793	479.448	384.899
		Sale of traded goods	70.246	46.334	47.076
		Service income	5.062	4.832	6.941
		Other Income	13.372	11.437	3.586
		TOTAL (A)	844.473	542.051	442.502
Less	EXPENSES
		Materials Consumed		274.415	241.203
		Cost of Goods Sold		43.501	36.488
		Employee Cost	678.857	27.486	25.409
		Operating Expenses		66.571	57.740
		Transfer From Revaluation Reserve		(0.797)	(0.797)
		TOTAL (B)	678.857	411.176	360.043
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		165.616	130.875	82.459
Less	FINANCIAL EXPENSES (D)		17.246	10.868	7.759
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		148.370	120.007	74.700
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.840	7.668	4.547
	PROFIT BEFORE TAX (E-F) (G)		129.530	112.339	70.153
Less	TAX (H)		43.191	39.386	25.566
	PROFIT AFTER TAX (G-H) (I)		86.339	72.953	44.587
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	83.719	39.132
	BALANCE CARRIED TO THE B/S		NA	156.672	83.719
	EARNINGS IN FOREIGN CURRENCY
		Service income	0.312	1.192	3.470
		Commission income	0.000	3.200	0.000
		FOB value of exports	5.921	0.988	0.098
	TOTAL EARNINGS		6.233	5.380	3.568
	IMPORTS
		Raw Materials	162.128	69.122	70.491
		Traded Goods	86.480	40.205	42.230
		Capital Goods	0.648	1.864	0.450
	TOTAL IMPORTS		249.256	111.191	113.171
	Earnings Per Share (Rs.)		57.55	48.64	29.72

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	10.22	13.46	10.08
Net Profit Margin (PBT/Sales)	(%)	15.68	21.37	16.24
Return on Total Assets (PBT/Total Assets}	(%)	23.01	25.28	28.55
Return on Investment (ROI) (PBT/Networth)		0.43	0.52	0.49
Debt Equity Ratio (Total Liability/Networth)		0.84	1.11	1.62
Current Ratio (Current Asset/Current Liability)		2.78	2.11	2.76

LOCAL AGENCY FURTHER INFORMATION

COMPANY BACKGROUND:

The Company was incorporated on 30 June 2000. The Company is in the business of manufacturing and sales of bonding, coating and sealing adhesives used in the automobile industry.

PERFORMANCE:

The total net sale including other income for the year ended 31^st December, 2010 were of the order of Rs.844.470 Millions as against the net sales of Rs.542.050 Millions of the previous year thereby showing an increases of about 55.79% over the previous year.

The profit of Rs.129.530 Millions earned during the year before tax against the profit of Rs.112.340 Millions earned in the previous year thereby showing an increase of about 15.30% over the previous year. The profit earned after tax amounting to Rs.86.340 Millions as against the last year of Rs.72.950 Millions thereby showing an increase of about 18.37% over the previous year.

CONTINGENT LIABILITIES (As on 31.12.2010)

a. Rs.2.417 millions for the assessment year 2004-05 in respect of which the Company has referred an appeal with the Income Tax Appellate Tribunal, against the order of Commissioner of Income Tax.

b. Rs.1.956 millions for the assessment year 2005-06 vide order of Additional Commissioner of Income Tax.

c. Rs.0.747 million for the for the assessment year 2006-07 in respect of which the Company has referred an appeal with the Income Tax Appellate Tribunal, against the order of Commissioner of Income Tax.

d. Rs.0.814 million for the assessment year 2007-08 vide order of Additional Commissioner of Income Tax.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U25200MH2000PLC127483
Name of the company	EFTEC SHROFF (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.645/ 646, Oberoi Chambers – II, 4^th and 5^th Floor, New Link Road, Andheri (West), Mumbai – 400 053, Maharashtra, India
This form is for	Modification of charge
Charge identification number of the modified	10115675
Type of charge	Immovable property
Particular of charge holder	ING Vysya Bank Limited, 103/ 104, ‘A’ Wing, I Floor, Floral Deck Plaza, MIDC Central Road, Andheri (East), Mumbai – 400 093, Maharashtra, India E-Mail: cms@companiesinn.com
Nature of description of the instrument creating or modifying the charge	Mortgage by Deposit of Title Deeds
Date of instrument Creating the charge	16.09.2010
Amount secured by the charge	Rs.260.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: No Change Terms of Repayment: No Change Margin: No Change Extent and Operation of the charge: First charge on the immovable property of the company.
Short particulars of the property charged	The immovable property of the company at Plot No.G-9 including Building and structures to be constructed/already constructed, Ranjangaon Industrial Area Village Karegoan, Taluka Shirur, District Pune.
Particulars of the present modification	There is no change in the limit of Rs.260.000 millions. The total limit is additionally secured by the immovable property of the company. All other terms and conditions remain same.

FIXED ASSETS:

· Leasehold Land

· Factory Building

· Office Building

· Plant and Machinery

· Computers

· Office Equipment

· Furniture and Fixtures

· Vehicles

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.50.27
UK Pound	1	Rs.80.07
Euro	1	Rs.68.45

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		48

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.