MIRA INFORM REPORT

Report Date :

25.08.2012

IDENTIFICATION DETAILS

Name :	SMRUTI CERAMICS INDUSTRIES LIMITED
Registered Office :	Navagam Road, Thangadh Taluka Chotila, Surendranagar Surendranagar – 363530, Gujarat, India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.05.1995
Com. Reg. No.:	04-025694
Capital Investment / Paid-up Capital :	Rs.108.136 Millions
CIN No.: [Company Identification No.]	U26932GJ1995PLC025694
PAN No.: [Permanent Account No.]	AACCS8716N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Sanitary Ware.
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 90000
Status :	Moderate
Payment Behaviour :	Slow and delayed
Litigation :	Clear
Comments :	Subject is a company having moderate track. Profitability of the company is very low. There appears huge accumulated losses recorded by the company. Financial strength of the company is under severe pressure. Business is active. Payments are reported to be slow and delayed. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Ajaykumar Arvindkumar Shah
Designation :	Director
Contact No.:	91-9825558555
Date :	24.08.2012

LOCATIONS

Registered Office / Factory :	Navagam Road, Thangadh Taluka Chotila, Surendranagar Surendranagar – 363530, Gujarat, India
Tel. No.:	91-2751-221234 / 221231
Mobile No.:	91-9825558555 (Mr. Ajaykumar Arvindkumar Shah)
Fax No.:	91-2751-221231 / 220234
E-Mail :	info@smruticeramic.com shahaja61@yahoo.com
Website :	http://www.smruticeramic.com
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :

Mr. Ajaykumar Arvindkumar Shah

Designation :

Director

Address :

Main Bazar, P.O. Box20, Thangadh – 363530, Gujarat, India

Date of Birth/Age :

48 Years

Qualification :

B.Com

Date of Appointment :

11.02.2009

DIN No.:

02724317

Voter ID No. :

GJ/02/010/048357

Name :

Mr. Ashish Nemchand Maru

Designation :

Director

Address :

Navagam Road, Thangadh Taluka Chotila, Surendranagar Surendranagar – 363530, Gujarat, India

Date of Birth/Age :

38 Years

Qualification :

B.Com

Date of Appointment :

11.02.2009

DIN No.:

02724332

Voter ID No. :

ZVX0906008

Name :

Mr. Ketan Premchand Shah

Designation :

Director

Address :

71-Chankya C- Building, Shrof Road, Rajkot – 360001, Gujarat, India

Date of Birth/Age :

40 Years

Qualification :

M.Sc

Date of Appointment :

11.08.2009

DIN No.:

00084635

Voter ID No. :

GNC1453067

Other Directorship

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U26921GJ1995PTC025693	ASHIRWAD CERAMICS PRIVATE LIMITED	Director	30/09/2004	30/09/2004	8/8/2008	Active	NO
2	U26913TN2006PLC061407	ARAVIND CERAMIC INDUSTRIES LIMITED	Director	27/09/2007	25/08/2007	1/4/2011	Active	NO
3	U26932GJ1995PLC025694	SMRUTI CERAMICS INDUSTRIES LIMITED	Director	11/08/2009	11/08/2009	-	Active	NO
4	U26913GJ2008PTC052931	SONEX TILES PRIVATE LIMITED	Director	31/01/2011	31/01/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Ajaykumar Arvindkumar Shah (Jointly)	2025520
Ketan P. Shah (Jointly)	1437860
Ashish N. Maru (Jointly)	494600
Jayshree jay Shah (Jointly)	1755320
Mittal Ashish Maru (Jointly)	918000
Neelam Girish Manchanda (Jointly)	255500
Shanta Dilip Manchanda (Jointly)	445000
Shalini Ranbir Manchanda (Jointly)	270000
Disha Hardeep Manchanda (Jointly)	721250
Navkar Enterprises (Jointly)	2490500
Total	10813550

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Sanitary Ware.
Products :	Ceramic Product
Exports :
Products :	Sanitary Ware
Countries :	· Bangladesh · Nepal · Iraq
Imports :
Products :	Raw Material
Countries :	China
Terms :
Selling :	Cash
Purchasing :	Cash

GENERAL INFORMATION

Suppliers :

MIM International, China

Customers :

Wholesalers

· Deep Trader, Bhopal

No. of Employees :

40 (Approximately)

Bankers :

· HDFC Bank Limited

· Dena Bank Thangadh, Gujarat, India

Facilities :

(Rs. In Millions)

Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	0.570	20.579
Total	0.570	20.579

Banking Relations :	--
Auditors :
Name :	Hitesh V. Shah Chartered Accountant
Address :	108, Dwarkesh Main Road Surendranagar, Gujarat, India
PAN.:	ADRPS4565L
Memberships :	Federation of Thangadh Ceramic, Panchal Ceramic Association
Sister Concern :	Sunrise Ceramic Industries

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs.110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10813550	Equity Shares	Rs.10/- each	Rs.108.136 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		108.136	89.777	89.777
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(85.565)	(85.720)	(85.956)
NETWORTH		22.571	4.057	3.821
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.374
2] Unsecured Loans		0.570	20.579	24.134
TOTAL BORROWING		0.570	20.579	24.508
DEFERRED TAX LIABILITIES			0.000	0.000
TOTAL		23.141	24.636	28.329
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		11.116	20.313	21.135
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.657	1.440	0.250
	Sundry Debtors	8.175	2.512	6.828
	Cash & Bank Balances	2.900	2.257	0.383
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.305	0.481	0.141
Total Current Assets		17.037	6.690	7.602
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.701	2.192	0.201
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.311	0.175	0.207
Total Current Liabilities		5.012	2.367	0.408
Net Current Assets		12.025	4.323	7.194
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		23.141	24.636	28.329

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Operating Revenue	26.191	11.146	2.973
		Other Income	0.089	1.272	14.446
		TOTAL (A)	26.280	12.418	17.419
Less	EXPENSES
		Consumption materials changes inventories	18.855	6.339
		Manufacturing service costs	4.179	2.335	17.560
		Employee related expenses	0.921	0.322
		Administrative selling other expenses	0.870	0.562
		TOTAL (B)	24.825	9.558	17.560
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.455	2.860	(0.141)
Less	FINANCIAL EXPENSES (D)		0.000	0.122	0.015
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.455	2.738	(0.156)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.260	2.503	0.677
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		0.195	0.235	(0.833)
Less	TAX (H)		0.040	0.000	0.000
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		1.555	0.235	(0.833)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(85.721)	(85.956)	(85.123)
	BALANCE CARRIED TO THE B/S		(84.166)	(85.721)	(85.956)
	Earnings Per Share (Rs.)		0.14	NA	NA

Particulars	31.03.2012
Sales Turnover (Approximately)	40.000

Expected Sales (2012-13) : Rs.70.000 Millions (More Orders)

The above information has been parted by Mr. Ajaykumar Arvindkumar Shah

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.91	1.89	(4.78)
Net Profit Margin (PBT/Sales)	(%)	0.74	2.11	(28.02)
Return on Total Assets (PBT/Total Assets}	(%)	0.69	0.87	(2.90)
Return on Investment (ROI) (PBT/Networth)		0.00	0.06	(0.22)
Debt Equity Ratio (Total Liability/Networth)		0.25	5.66	6.52
Current Ratio (Current Asset/Current Liability)		3.40	2.83	18.63

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	Yes
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	No

TRADE REFERENCES

· Deep Trader, Bhopal

· MIM International, China

FIXED ASSETS

· Land Improvements

· Office Building

· Factory Building

· Plant Machinery

· Office Equipments

· Computer Equipments

· Other Equipments

· Furniture Fixtures

AS PER WEBSITE

PROFILE

Subject is a company located at Thangadh, Gujarat India. It is into manufacture of Sanitary ware. With more than 20 years of experience in Ceramic sector, the owners of the company have set up the plant to manufacture highest quality sanitary ware. There are many Manufacturers of Sanitary ware in the region, but Smruti is above most when it comes to quality manufacturing.

Its major products are Wash Basins, Pedestal Wash Basins, Water Closets and related ceramic accessories. Their sister concern, Ashirwad tiles is into manufacture of Ceramic Wall tiles. It is the leading Tiles Manufacturing unit in Thangadh.

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.55.38
UK Pound	1	Rs.87.80
Euro	1	Rs.69.48

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	--
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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		28

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.