MIRA INFORM REPORT

Report Date :

20.01.2012

IDENTIFICATION DETAILS

Name :	CERADECOR INDIA LIMITED
Registered Office :	F- 9, 2^nd Floor, Kailash Colony, New Delhi- 110048
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	28.10.1997
Com. Reg. No.:	55-090456
Capital Investment / Paid-up Capital :	Rs.13.150 Millions
CIN No.: [Company Identification No.]	U74899DL1997PLC090456
TAN No.: [Tax Deduction & Collection Account No.]	DELC04043E
PAN No.: [Permanent Account No.]	AABCC1435F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Trader of Ceramic Tiles Colours.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 210000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an 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

LOCATIONS

Registered Office :	F- 9, 2^nd Floor, Kailash Colony, New Delhi- 110048, India.
Tel. No.:	91-11-65655534 / 26819278 / 26817279 / 26818040
Fax No.:	91-11-29236721
E-Mail :	sales@ceradecor.net meenakshigulati@rediffmail.com
Website :	http://www.ceradecor.in
Location :	Owned
Factory :	C-27-28, Site C, Surajpur, UPSIDC Industrial Area, Greater Noida- 201306, Uttar Pradesh, India.
Tel. No.:	91-120-2560644/ 2569210
Fax No.:	91-120-2569142
	ceragn@ceradecor.in
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Mr. Ramji Lal Verma
Designation :	Director
Address :	K- 46, Kailash Colony, New Delhi- 110048, India.
Date of Birth/Age :	03.07.1930
Date of Appointment :	27.10.2000
DIN :	01227136
Name :	Mr. Rajiv Mohan Verma
Designation :	Director
Address :	K- 46, Kailash Colony, New Delhi- 110048, India.
Date of Birth/Age :	31.10.1957
Date of Appointment :	28.10.1997
DIN :	01227168
Name :	Mrs. Sangeeta Verma
Designation :	Director
Address :	K- 46, Kailash Colony, New Delhi- 110048, India.
Date of Birth/Age :	18.09.1965
Date of Appointment :	28.10.1997
DIN :	01670969

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 30.09.2010

Names of Shareholders	No. of Shares
Ranji Lal Verma	55200
Rajiv Mohan Verma	824000
Sangeeta Verma	170000
Usha Rani Verma	200
Minakshi Sikka	200
Ved Vyas Sharma	200
Vineeta Bali	200
Chirag Verma	265000
TOTAL	1315000

As On 30.09.2010

Equity Share Break up Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of Ceramic Tiles Colours.
Products :	Vitrosa Screen Printing Glazes Metallic Glass and Glazes Spectrum Series Auxiliary Materials Precious Metal Products Glass Decoration Underglaze Decoration

PRODUCTION STATUS [As on 31.03.2010]

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Vitrosa	M.T.	6000	6000	4500

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• HDFC Bank, HDFC Bank House, Senapati Bapat Marg, Lower Parel, (West), Mumbai- 400013, Maharashtra, India
• HDFC Bank, New Delhi, India
• ICICI Bank
• The Federal Bank Limited, Nehru Place, New Delhi- 110019, India

Facilities :

Cash Credit – Rs.700.000 millions [From HDFC Bank]
Secured Loans	31.03.2010 [Rs.in Millions]	31.03.2009 [Rs.in Millions]
Ford Credit Bank Limited – Vehicle Loan	0.000	0.012
Cash credit facility	15.455	30.061
HDFC Bank Vehicle Loan	0.663	1.229
TOTAL	16.118	31.302
Unsecured Loan	31.03.2010 [Rs.in Millions]	31.03.2009 [Rs.in Millions]
Maximum amount due to directors during the year Rs.3.836 millions ( previous year Rs.2.227 millions )	0.025	3.836
TOTAL	0.025	3.836

Banking Relations :	-
Auditors :
Name :	Malhotra Arun and Company Chartered Accountants
Address :	1/84, Basement, Old Rajinder Nagar, New Delhi – 110060, Delhi, India
Tel. No.:	91-11-25728846
Mobile No.:	91-9810308510
PAN No.:	AAFPM1427L

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2,000,000	Equity Shares	Rs.10/- Each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1315000	Equity Shares	Rs.10/- Each	Rs.13.150 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		13.150	10.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		39.514	33.445	32.487
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		52.664	43.445	37.487
LOAN FUNDS
1] Secured Loans		16.118	31.302	16.419
2] Unsecured Loans		0.025	3.836	4.738
TOTAL BORROWING		16.143	35.138	21.157
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		68.807	78.583	58.644
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		29.022	31.977	30.611
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	12.136	28.148	12.056
	Sundry Debtors	45.086	39.997	34.756
	Cash & Bank Balances	0.973	0.843	11.896
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	7.796	6.372	6.011
Total Current Assets		65.991	75.360	64.719
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.139	19.506	29.535
	Current Liabilities	5.203	6.195	5.233
	Provisions	2.864	3.053	1.918
Total Current Liabilities		26.206	28.754	36.686
Net Current Assets		39.785	46.606	28.033
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		68.807	78.583	58.644

PROFIT & LOSS ACCOUNT

Particulars	31.03.2010
Gross Profit	30.649
Other Incomes	3.676
	34.325
Salary and Benefits	7.609
Administrative Expenses	17.781
Net Profit Before Tax	8.935
	34.325
Expenses Pertaining To Previous Year	0.000
Fringe Benefit Tax	0.000
Provision For Tax	2.864
Net Profit After Tax Taken To Reserve and Surplus	6.071

	PARTICULARS		31.03.2009	31.03.2008
	SALES
		Income	188.065	134.945
		Other Income	1.545	0.538
		TOTAL (A)	189.610	135.483
Less	EXPENSES
		Raw material consumed	144.838	99.912
		Consumption of stores and spares	0.757	0.394
		Salaries, Wages and Bonus	6.983	5.372
		Managerial Remuneration	2.264	1.529
		Payment of auditors	0.037	0.036
		Insurance Expenses	0.397	0.000
		Power and fuel	1.411	0.790
		Other expenditure	33.135	20.125
		Increase / Decrease in stock	(16.093)	(3.771)
		TOTAL (B)	173.729	124.387
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.881	11.096
Less	FINANCIAL EXPENSES (D)		2.216	1.542
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13.665	9.554
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.489	4.020
	PROFIT BEFORE TAX (E-F) (G)		9.176	5.534
Less	TAX (H)		3.213	2.052
	PROFIT AFTER TAX (G-H) (I)		5.963	3.482
	IMPORTS VALUE - Raw Material		151.542	91.287
	Earnings Per Share (Rs.)		5.96	3.48

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	3.14	2.57
Net Profit Margin (PBT/Sales)	(%)	NA	4.87	4.10
Return on Total Assets (PBT/Total Assets}	(%)	9.40	8.54	5.80
Return on Investment (ROI) (PBT/Networth)		0.17	0.21	0.14
Debt Equity Ratio (Total Liability/Networth)		0.80	1.47	1.54
Current Ratio (Current Asset/Current Liability)		2.52	2.62	1.76

LOCAL AGENCY FURTHER INFORMATION

Operations:

The current year operation of the company resulted in Net Profit of Rs.8.935 Millions on turnover of Rs.34.325 Millions. After making Provision for Income Tax and FBT, an amount of Rs.6.071 Millions has been transferred to Reserve and Surplus.

Contingent Liability:

Guarantees issued by banks for satisfaction of Customers Rs.0.474 Millions.

Form 8:

Corporate identity number of the company	U74899DL1997PLC090456
Name of the company	CERADECOR INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	F- 9, 2^nd Floor, Kailash Colony, New Delhi- 110048, India E-mail : meenakshigulati@rediffmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10106212
Type of charge	Immovable Property
Particular of charge holder	HDFC Bank, HDFC Bank House, Senapati Bapat Marg, Lower Parel, (West), Mumbai- 400013, Maharashtra, India. E-mail : RBBform8@hdfcbank.com
Nature of instrument creating charge	Memorandum recording past transactions of creation of mortgage by delivery of title deeds.
Date of instrument Creating the charge	03.12.2011
Amount secured by the charge	Rs.77.738 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment : On Demand. Margin: As may be stipulated by the Bank from time to time. Extent and Operation of the charge: The Company accorded and gave oral consent to Bank to continue to hold and retain the title deeds (by way of Constructive delivery) in respect of its immovable properties as stated under Item No.15 below, as security for repayment of Rs.77.738 Millions by the Company, together with principal, interest, liquidated damages, costs, charges and expenses. Others : Nil
Short Particulars of the property charged	Industrial Property at C-27 and 28, Site C, Surajpur, UPSIDC Industrial Area, Greater Noida, Uttar Pradesh, India
Date of instrument modifying the charge	08.02.2011
Particulars of the present modification	The equitable mortgage shall now stand increased from Rs.50.000 Millions to Rs.77.738 Millions, in favour the Bank against the mortgage of immovable property C-27-28, Site-C, Surajpur, UPSIDC Industrial Estate, Greater Noida, Uttar Pradesh, India

Fixed Assets :

• Building
• Electric Fitting
• Plant and Machinery
• Furniture and Fixture
• Office Equipment
• Computer
• Computer Printer
• Cars
• Scooter
• Cycle
• Books

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.50.29
UK Pound	1	Rs.77.60
Euro	1	Rs.64.67

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	5
--LEVERAGE	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.