MIRA INFORM REPORT

Report Date :

14.11.2011

IDENTIFICATION DETAILS

Name :	SAERTEX INDIA PRIVATE LIMITED
Registered Office :	Saertex Excellence Centre, S No. 282, Mann Village, Mulshi Hinjewadi Phase II, Pune-411057, Maharashtra
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	30.05.2005
Com. Reg. No.:	25-20804
Capital Investment / Paid-up Capital :	Rs. 7.040 Millions
CIN No.: [Company Identification No.]	U18109PN2005PTC020804
TAN No.: [Tax Deduction & Collection Account No.]	PNES15293F
PAN No.: [Permanent Account No.]	AAJCS101M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Stitched Bonded Fabrics
No. of Employees :	70 Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 873960
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track. Financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be 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.

INFORMATION PARTED BY

Name :	Mr. Prasad
Designation :	Accounts Manager
Contact No.:	91-20-66537600
Date :	14.11.2011

LOCATIONS

Registered Office/ Factory :	Saertex Excellence Centre, S No. 282, Mann Village, Mulshi Hinjewadi Phase II, Pune-411057, Maharashtra, India
Tel. No.:	91-20-66537600
Fax No.:	91-20-66537603
E-Mail :	info.india@saertex.com nvgopal@vsnl.com s.lukose@saertex.com D.nagarkar@saertex.com Pkc.bose@saertex.com
Website :	www.saeretex.com
Location :	Rented

DIRECTORS

AS ON 27.06.2011

Name :	Mr. Bruno Lammers
Designation :	Director
Address :	Amwedben Stein 1, Emsdetten Northrhine, Westfalia, Emsdetten – 48282, Northrhine Westfalia, DE
Date of Birth/Age :	21.05.1953
Date of Appointment :	08.07.2005
DIN No. :	02461867

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	U18109PN2005PTC020804	Saertex India Private Limited	Director	08/07/2005	08/07/2005	-	Active	NO

Name :	Mr. Stefan Gunter Huge
Designation :	Director
Address :	Sinningen 91, Saerbeck, Northrhine Westfalia, Saerbeck – 048369, Northrhine Westfalia, DE
Date of Birth/Age :	15.05.1966
Date of Appointment :	08.07.2005
DIN No. :	02155010

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	U18109PN2005PTC020804	Saertex India Private Limited	Director	08/07/2005	08/07/2005	-	Active	NO
2	U35303GJ2010PTC061584	Saertex-Kemrock India Private Limited	Director	14/02/2011	28/07/2010	-	Active	NO

Name :	Mr. Chandra P. K. Bose
Designation :	Managing Director
Address :	703, Aria Zircon S No. 1, 197/3, Next to CTR Viman Nagar, Pune – 411014, Maharashtra, India
Date of Birth/Age :	07.01.1959
Date of Appointment :	08.07.2005
DIN No. :	01550320

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	U25200MH1955NPL009601	The Plastics Export Promotion Council	Managing director	01/07/2005	01/07/2005	-	Active	NO
2	U18109PN2005PTC020804	Saertex India Private Limited	Managing director	08/07/2005	08/07/2005	-	Active	NO
3	U35303GJ2010PTC061584	Saertex-Kemrock India Private Limited	Director	14/07/2010	14/07/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Prasad
Designation :	Accounts Manager
Name :	Mr. Gopal N Venkata
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.06.2011

Names of Shareholders	No. of Shares
Saertex Beteilingungs Ges GMBH – Germany	1407
Saertex GMBH and Company KG – Germany	1
Total	1408

AS ON 27.06.2011

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]		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Stitched Bonded Fabrics

Products :

Item Code No. (ITC Code)	Product Description
7019-90-90	Stitched Bonded Fabrics

Exports :

Products :

• Stich Banded Fabrics

Countries :

• China
• Germany
• USA

Imports :

Products :

• Raw Materials

Countries :

• France
• USA

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

L/C, Cash, Credit

PRODUCTION STATUS

AS ON 31.12.2010

Particulars	Unit	Licensed Capacity	Installed Capacity *	Actual Production
Stich Bonded Fabrics	Metric Tons	10000	5400	5323

*The installed capacity is as certified by the management and the actual production is as per company records on which the auditors have placed reliance.

GENERAL INFORMATION

Customers :

Corporates

No. of Employees :

70 Approximately

Bankers :

· Deutsche Bank, Lower Parel Branch, Mumbai

· Axis Bank, Brach Deccan Gymkhana, Pune, Maharashtra, India

· Kotak Mahindra Bank

· State Bank of India

· Deutsche Bank, Branch Aundh, Pune

Facilities :

Rs. In Millions

Unsecured Loans	31.12.2010	31.12.2009
Term Loan from Deutsche Bank (Repayable within a year Rs. 4.000 millions)	12.000	16.000
External Commercial Borrowings form Holding Company	97.311	135.025
Overdraft from Deutche Bank (Overdraft Limit)	12.584	19.865
Total	121.895	170.890

Banking Relations :	--
Auditors :
Name :	Sharp and Tannan Chartered Accountant
Address :	Ravindra Annexe, 194, Churchgate Reclamation, Dinshaw Vachha Road, Mumbai – 400020, Maharashtra, India
Tel. No.:	91-22-22047722/23/66338343/47
Fax No.:	91-22-66338352
E-mail id :	sharp@bom2.vsnl.net.in
Associates :	Saertex GMBH and Company KG, Germany
Holding Company :	Saertex Betelligumgsgesellschaft GMBH, Germany
Fellow Subsidiaries :	Saertex USA LLC Saertex Reinforcement China Company Limited Saertex Portugal Saertex South Africa (PTY) Limited Saertex Kemrock (India) Private Limited Saertex Multicom Gmbh

CAPITAL STRUCTURE

AS ON 27.06.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500	Equity Shares	Rs. 5000/- each	Rs. 7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1408	Equity Shares (The entire share capital is held by the holding company, Saertex Betelligumgsgesellschaft GMBH, Germany and its nominee)	Rs. 5000/- each	Rs. 7.040 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		7.040	7.040	7.040
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		211.450	168.757	115.099
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		218.490	175.797	122.139
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		121.895	170.890	173.838
TOTAL BORROWING		121.895	170.89	173.838
DEFERRED TAX LIABILITIES		9.025	11.786	10.510
Deferred Government Subsidy		4.234	4.818	0.000
TOTAL		353.644	363.291	306.487
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		126.639	141.758	157.453
Capital work-in-progress		0.000	2.546	2.159
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	88.815	60.005	78.264
	Sundry Debtors	125.617	172.933	121.008
	Cash & Bank Balances	9.910	10.816	26.733
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	121.793	102.788	71.078
Total Current Assets		346.135	346.542	297.083
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	70.851	99.153	94.970
	Other Current Liabilities	12.248	14.879	34.690
	Provisions	36.044	13.576	20.643
Total Current Liabilities		119.143	127.608	150.303
Net Current Assets		226.992	218.934	146.780
MISCELLANEOUS EXPENSES		0.013	0.053	0.095
TOTAL		353.644	363.291	306.487

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Income	514.594	607.016	578.739
		Other Income	15.063	6.342	1.314
		TOTAL (A)	529.657	613.358	580.053
Less	EXPENSES
		Office Expenses
		Administrative Expenses		503.403	472.738
		Advertising Expenses
		TOTAL (B)		503.403	472.738
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			109.955	107.315
Less	FINANCIAL EXPENSES (D)		NA	8.531	12.405
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			101.424	94.910
Less/ Add	DEPRECIATION/ AMORTISATION (F)			18.787	13.206
	PROFIT BEFORE TAX (E-F) (G)		62.347	82.637	81.704
Less	TAX (I)		19.654	29.730	28.648
	PROFIT AFTER TAX (G-I) (J)		42.693	53.658	53.056
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	58.537	359.723	290.253
	TOTAL EARNINGS		58.537	359.723	290.253
	Earnings Per Share (Rs.)		30321.73	38110.00	--

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	8.06	8.75	9.15
Net Profit Margin (PBT/Sales)	(%)	12.11	13.61	14.12
Return on Total Assets (PBT/Total Assets}	(%)	13.18	16.92	17.97
Return on Investment (ROI) (PBT/Networth)		0.28	0.47	0.67
Debt Equity Ratio (Total Liability/Networth)		1.16	1.70	2.65
Current Ratio (Current Asset/Current Liability)		2.90	2.72	1.98

LOCAL AGENCY FURTHER INFORMATION

THE DETAILS OF SUNDRY CREDITORS:

RS. IN MILLIONS

Particulars	31.12.2010	31.12.2009	31.12.2008
Sundry Creditors
- Due to Micro, Small and Medium Enterprises	0.623	1.726	0.019
- Due to other than Micro, Small and Medium Enterprises	70.228	97.427	94.951
Total	70.851	99.153	94.970

BACKGROUND:

The company incorporated under the companies act, 1956 on 13^th May 2005 and presently it is a wholly owned subsidiary company of Saertex Betelligumgsgesellschaft GMBH, Germany.

The company is principally engaged in the manufacture of Stitch Bonded Fabrics mainly catering to windmill and other industries manufacturing Auto Bodies, Boat Bodies, Aircraft, etc.

FUTURE OUTLOOK:

The business outlook for SAERTEX INDIA looks to be bright as the wind industry in India is growing in a considerably big way. The Indian government is giving high emphasis on wind energy whereby new investments from overseas majors like Siemens, Denmark, Gamesa, Spain etc are coming to India in a big way. Considering all the aspects there could be a possibility that India will be one of the major producers of wind energy by year 2020. The estimated production of wind energy by year 2020 is approximately 75,000 MW. Also the government is encouraging more advanced technology wind mills and also off-shore whereby bigger wind mills are being installed up to the capacity of 6 MW. This means definitely the SAERTEX products will .have more and more demand in this sector. Currently there are more than 10 major manufacturers in India which includes Suzlon, Enercon, Vestas, Win Wind, Lietner, Regen, Reliance (Global), Godawat, Knersys and RRB. LM the blade manufacturer is also expanding their capacity in India. When all of them go for full production capacity means there could be around 10,000 MW and the new entrants will add more capacity. Also nacelles and spinners manufacturers like M/s. Jupiter and Bach's Composite Denmark's entry to the Indian market will add additional demand for SAERTEX fabrics.

Similarly the automotive industry will give a lot of leverage to SAERTEX products. The all composite bus body project and also the traditional coach builders are converting to SAERTEX fabrics will have a capacity increase for SAERTEX in the coming years. This industry is just in the starting point and down the lane 5 years time they could be one of the largest users of SAERTEX fabrics.

Marine and aeronautical industries in India are just on the budding stage and there is all likely hood that this industries will grow in a bigger Way as auto major Mahindra and also Honda is planning to build high end boats in India which will add more SAERTEX products in the coming years. As such SAERTEX INDIA has started the marine industry business and the progress is promising. Area countries business also will pick up in the coming years but these markets are quite unpredictable hence the emphasis is more to the India market only.

FIXED ASSETS:

• Factory building
• Plant and machinery
• Electrical installations
• Computers
• Furniture and fixtures
• Office equipments
• Vehicles

AS PER WEB SITE DETAILS:

NEWS

SAERTEX multiCom goes China

2010-11-17

SAERTEX multiCom, an international market leader in the production of flexible and highly resilient liners for no-dig sewer pipe renovation, has followed its parent company SAERTEX to China. Since 28.10.2010, SAERTEX multiCom has been represented by a branch in Taicang, southwest of Shanghai. The reason for the expansion of the SAERTEX subsidiary to China is obvious: The Chinese economy is still growing rapidly. With the growing prosperity, there is also increased demand for comprehensive infrastructure among the population. During the expansion and renovation of the sewer system, the patented SAERTEX-LINER® not only saves time and money, but enables better consideration of environmental pollution than conventional sewer renovation processes.

In contrast to all other manufacturers of pipe liners, SAERTEX multiCom produces its product from beginning to end - from the glass-fibre production to the ready-to-install, impregnated liner. This enables the maintenance of the highest quality standards for the SAERTEX-LINER®.

SAERTEX multiCom sees itself purely as a manufacturer of sewer liners from glass fibre fabrics. However, in his opening speech in Taicang, Dr. Jürgen Alexander, Managing Director of SAERTEX multiCom GmbH, emphasized that there is already a demand for consultation and active support from SAERTEX multiCom in China: "They've brought the technology to China and are attempting to sell it as a complete solution, and thus make it easier for potential users to get started. They stand by these users with there experience. They want to grow here in China and would also like to establish thereselves in the northern part of the country.

CHRONOLOGY – SUCCESS THROUGH INDIVIDUAL SOLUTIONS

2008 Production at the new location in Portugal will begin on February 1. The new location provides even better service through its greater proximity to the clients on the Iberian Peninsula. They come primarily from the intensely growing wind industry.

In October 2008, the SAERTEX Group officially opened its 8th location worldwide, in the Dongying, China.  The new factory, 4000 square meters in size, produces primarily glass-fiber fabrics for the growing Chinese wind industry.

2007 25 years of SAERTEX - 25 years of success through customized solutions: The anniversary is celebrated with friends and partners.

SAERTEX Portugal is being established. In the region of the port city of Port, in northern Portugal, a factory with a production area of 2400 square meters is being constructed, with an investment volume of 2.5 million Euros.
SAERTEX China is being established. In Dongying, approx. 400 kilometers southeast of Peking, glass-fiber fabrics for the Asian market will be produced in a 4000 square meter factory. The investment volume amounts to 6 million Euros.

2006 Opening of the production facility in India: located in Pune, 150 kilometers south east of Mumbai (formerly Bombay).  The factory primarily serves the wind power, automobile and shipbuilding industries of the Asian market.

2005 SAERTEX USA LLC moves into its new plant in Huntersville, North Carolina. The area of about 6,500 m2 offers SAERTEX USA LLC three times the space of its former plant in Mooresville. Change of parent company name to SAERTEX GmbH and Co. KG

Foundation of Subject

2003 Installation of the CNC cutter machine

SAERTEX receives EN 9100 certification

2002 Foundation of SAERTEX France SAS

Foundation of SAERTEX Stade GmbH and Co. KG

2001 SAERTEX begins production of multiaxial fabrics in the USA on 01.01.2001.

The production plant is situated in Mooresville, North Carolina. This is the fourth production centre to begin operations worldwide.

2000 Installation of the first 100" multiaxial machine

1999 The Saerbeck-based parent company relocates to new and larger offices.

1997 Foundation of SAERTEX South Africa (PTY) LIMITED

1996 Foundation of SAERTEX multiCom GmbH (sewer refurbishment)

1993 SAERTEX is certified by Germanischer Lloyd in October 1993. There production is therefore in accordance with the quality standards laid down in ISO 9001/EN 29001.

1990 Production of the first carbon fabric

1988 Installation of the first multiaxial machine

1982 SAERTEX is founded in Saerbeck in north-west Germany.

The company brings its experience of textiles production into the concept of producing stitch-bonded reinforcing fabrics - so-called Non-Crimp Fabrics (NCF).

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.50.28
UK Pound	1	Rs.80.08
Euro	1	Rs.68.44

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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.