MIRA INFORM REPORT

Report Date :

21.06.2012

IDENTIFICATION DETAILS

Name :	DEGREMONT LIMITED
Formerly Known As :	DEGREMONT INDIA LIMITED
Registered Office :	2^nd Floor, Tower - A, United Business Park, South City-I, Gurgaon – 122001, Haryana
Country :	India
Financials (as on) :	31.12.2010
Date of Incorporation :	14.08.1986
Com. Reg. No.:	55-025120
Capital Investment / Paid-up Capital :	Rs.68.003 Millions
CIN No.: [Company Identification No.]	U29197DL1986PLC025120
TAN No.: [Tax Deduction & Collection Account No.]	DELDO6254D
PAN No.: [Permanent Account No.]	AAACDO136D
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	Manufacturer of Water and Effluent Treatment Plants.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has incurred huge losses during the year. Profitability appears to be under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings on a safe and secured 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/ Head Office :	2^nd Floor, Tower - A, United Business Park, South City-I, Gurgaon – 122001, Haryana, India
Tel. No.:	91-124-408012
Fax No.:	Not Available
E-Mail :	degremont.limited@degremont.com poojasehgal.mehtani@degremont.com skdudha@gmail.com pramod.bapna@degremont.com vijayesh.gupta@degremont.com
Website :	www.degremontindia.net
Corporate Office :	Ground Floor, Unitech Business Park, Gurgaon – 122001, Haryana, India

DIRECTORS

(AS ON 24.06.2011)

Name :	Mr. Remi Lantier
Designation :	Director
Address :	84, Rue Blanche, 75009, Paris, France
Date of Birth/Age :	19.04.1953
Date of Appointment :	14.01.2000
DIN No.:	00238812
Name :	Mr. Francois Marie Fevrier
Designation :	Director
Address :	15, Rue Victor Cousin, Paris, France 75005
Date of Birth/Age :	16.03.1961
Date of Appointment :	30.09.2008
DIN No :	02321127
Name :	Mr. Xavier Boulat
Designation :	Director
Address :	16, Rue, Charles Rhone, Saint Germain En Laye, France, 78100
Date of Birth/Age :	03.11.1965
Date of Appointment :	29.06.2009
DIN No :	02720745
Name :	Mr. Jaisal Singh
Designation :	Director
Address :	F-63, Sujan Singh Parl, New Delhi – 110003, India
Date of Birth/Age :	01.08.1979
Date of Appointment :	07.12.2010
DIN No :	01061018
Name :	Mr. Pramod Bapna
Designation :	Manager Director
Address :	S-465, 1^st Floor, Greater Kailash-11, New Delhi – 110048, India
Date of Birth/Age :	05.03.1967
Date of Appointment :	14.09.2010
DIN No :	00508214
Name :	Mr. Anis Benmoussa
Designation :	Alternate Director
Address :	Unitech Business Park Tower – A, 2^nd Floor, South City, Gurgaon – 122001, Haryana, India
Date of Birth/Age :	29.05.1977
Date of Appointment :	04.01.2012
DIN No :	05212060
Name :	Mr. Vijayeh Gupta
Designation :	Alternate Director
Address :	C-8/8104 Vasant Kunj, New Delhi – 110070, India
Date of Birth/Age :	30.11.1965
Date of Appointment :	04.01.2012
DIN No :	05225903

KEY EXECUTIVES

Name :	Ms. Pooja Sehgal Mehtani
Designation :	Company Secretary
Address :	110-B, First Floor, Krishna Nagar, Safdarjung Enclave, New Delhi – 110029, India
Date of Birth/Age :	17.12.1977
Date of Appointment :	19.09.2005
PAN No :	AWKPS2151G

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 24.06.2011)

Names of Shareholders	No. of Shares
Mohan Gupta	1
Poomima Gupta	4395
Srinivas Kishore	101
Eshwar Chandra Agrawala	1
Indu Agarwala	1
Alka Goel	1
Degemont S.A	346200
Vari Finance Private Limited (India)	800
Asia Investment Private Limited (India)	326955
Demayanti C Patel	150
K Mani	150
Prabha S Kshetrapal	150
S.M. Chandani	125
Mona Sawhney	150
Alok Kukreja	75
Samir Kukreja	75
Sarla Chawla	150
Kavita Tuli	125
Anita Singal	125
V. K. Batra	300
Total	680030

(AS ON 06.07.2011)

Names of Allottee	No. of Shares Allotted
Degremont S.A., France	133510
Asia Investment Private Limited (Anand Group)	123633
Total	257143

(AS ON 30.06.2011)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	50.91
Bodies corporate	48.08
Other top fifty shareholders	1.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Water and Effluent Treatment Plants.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Calyon Bank,

6^th Floor, Birla Tower, 25 Barakhamba Road, New Delhi-110001, India.

· BNP Paribas,

15,Barakhamba Road, New Delhi, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Short Term Loans
From Bank (Secured against book debts and counter guarantee of Rs.10.000 Millions of Degremont S.A. the holding Company	822.098	488.604
From Financial Institution (Secured against book debts)	38.768	100.291
Other Loans and Advances (Secured against specific assets financed) Term Loan From Bank	1.651	4.016
From Others	0.000	0.473
Total	862.517	593.384
NOTE: Term Loans from Bank and other loans aggregating to Rs.1.240 Millions are repayable within one year.

Banking Relations :	--
Financial Institute :	· Societe Generale, 6^th Floor, Mohandev, 13, Tolstoy Marg, New Delhi – 110001, India
Auditors :
Name :	S. P. Puri and Company Chartered Accountant
Address :	4/18, Asaf Ali Road, New Delhi – 110002, India
Tel No.:	91-11-23274888/ 23277410
Fax No.:	91-11-23272805
PAN No.:	AACFS2752D
Email :	sppuri@vsnl.com
Holding Company :	· Degremont SA, France
Fellow Subsidiaries :	· Degrémont A.S., Denmark · Degremont Water Treatment Systems (Beijing) Company Limited, China · Degrémont Projects Private Limited, India · Infilco Degremont Inc., USA · Degremont (Malaysia) SDN BHD, Malaysia · Degremont Middle East LLC, UAE · Degremont Brazil, Brazil · Degremont Australia, Australia · Degremont- Sri Lanka, Sri Lanka · Suez Environnment Asia, Hong Kong · MTHojgaard
Associates :	· Anand Automotive Systems Limited, India · Mahle Filter System India Limited, India · Anchemco Limited, India · Perfect Circle India Limited, India

CAPITAL STRUCTURE

(AS ON 24.06.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.100/- each	Rs.200.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
937173	Equity Shares	Rs.100/- each	Rs.93.717 Millions

(AS ON 31.12.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.100/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
680030	Equity Shares	Rs.100/- each	Rs.68.003 Millions

NOTE:

(Out of above 3,46,200 shares are held by Degremont S.A. The Holding company)

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		68.003	68.003	68.003
2] Share Application Money		275.000	0.000	0.000
3] Reserves & Surplus		9.852	16.678	18.203
4] (Accumulated Losses)		(122.525)	0.000	0.000
NETWORTH		230.330	84.681	86.206
LOAN FUNDS
1] Secured Loans		862.517	593.384	252.096
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		862.517	593.384	252.096
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1092.847	678.065	338.302
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		24.323	22.658	43.046
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		65.093	30.970	25.461
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.708	7.347	76.344
	Sundry Debtors	2409.912	1852.022	1306.529
	Cash & Bank Balances	18.902	103.727	31.611
	Other Current Assets	0.078	3.601	3.366
	Loans & Advances	305.588	269.384	359.077
Total Current Assets		2748.188	2236.08	1776.927
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	798.737	757.780	671.708
	Other Current Liabilities	910.336	817.165	802.144
	Provisions	35.684	36.698	33.280
Total Current Liabilities		1744.757	1611.643	1507.132
Net Current Assets		1003.431	624.437	269.795
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1092.847	678.065	338.302

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2010	31.12.2009	31.12.2008
	SALES
		Sales and Services	2313.759	2706.957	1521.051
		Other Income	20.690	12.740	2.076
		TOTAL (A)	2334.449	2719.697	1523.127
Less	EXPENSES
		Purchases	429.380	660.908	407.942
		Engineering and Site Works	784.500	801.461	403.357
		Freight (increase/Decrease in Store)	46.444	59.078	46.390
		Material in Hand	(6.361)	68.997	(40.053)
		Other Project Expenses	538.420	377.899	222.567
		Insurance	9.388	10.063	7.852
		Staff Cost	301.602	241.266	159.400
		Other Expenses	235.931	352.364	258.651
		Royalty	9.323	7.066	7.695
		Provision for Guarantee Claims and Losses	2.322	2.520	3.263
		TOTAL (B)	2350.949	2581.622	1477.064
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(16.500)	138.075	46.063
Less	FINANCIAL EXPENSES (D)		141.068	112.565	45.357
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(157.568)	25.510	0.706
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.669	19.332	12.502
	PROFIT BEFORE TAX (E-F) (G)		(166.237)	6.178	(11.795)
Less	TAX (H)		(36.886)	7.702	0.516
	PROFIT AFTER TAX (G-H) (I)		(129.351)	(1.524)	(11.279)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6.827	(8.327)	3.168
Less	APPROPRIATIONS
		Tax on Corporate Dividend	0.000	0.000	0.216
		Transfer from General Reserve	0.000	(16.678)	0.000
	BALANCE CARRIED TO THE B/S		(122.524)	6.827	(8.327)
	EARNINGS IN FOREIGN CURRENCY		NA	996.108	479.162
	Earnings Per Share (Rs.)		(190.21)	(2.24)	(16.59)

KEY RATIOS

PARTICULARS		31.12.2010	31.12.2009	31.12.2008
PAT / Total Income	(%)	5.54	(0.05)	(0.74)
Net Profit Margin (PBT/Sales)	(%)	7.18	0.22	(0.77)
Return on Total Assets (PBT/Total Assets}	(%)	5.99	0.27	(0.64)
Return on Investment (ROI) (PBT/Networth)		(0.72)	0.07	(0.13)
Debt Equity Ratio (Total Liability/Networth)		11.32	26.03	20.40
Current Ratio (Current Asset/Current Liability)		1.58	1.38	1.17

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

PERFORMANCE:

During the Calendar year 2010, the Company achieved a turnover of Rs.2313 Million. The Loss for the calendar year ended 31.12.2010 was Rs.166 million. In view of the implementation of IFRS and to align the reporting system and accounting policies and procedures in line with DSA, France the Company had to make certain provisions because of which the profitability figures have substantially gone down.

At the same time, there has been infusion of fresh share capital in the Company to the tune of Rs.450 MINR. This is one of the steps forward by the Company in balancing the debt equity ratio, which will result in decreasing the interest burden on the Company and will help in achieving better results in the years to come.

CONTINGENT LIABILITY ON ACCOUNT OF:

Particulars	31.12.2010	31.12.2009
	(Rs. In Millions)
Guarantees (issued by Company's Bankers)	404.224	427.868

FORM 8:

Corporate identity number of the company	U29197DL1986PLC025120
Name of the company	DEGREMONT LIMITED
Address of the registered office or of the principal place of business in India of the company	1 Sri Aurobindo Marg, Hauz Khas, New Delhi-110016, India Email Id : degremont.limited@degremont.com
This form is for	Creation of charge
Type of charge	Book debts Others: Stocks/ Goods
Particular of charge holder	Societe Generale, 6^th Floor, Mohandev, 13, Tolstoy Marg, New Delhi – 110001, India Email Id : kishor.kalra@socgen.com
Nature of instrument creating charge	Agreement of Hypothecation of stocks/goods and book debts in favour of Societe Generale Bank dated 1^st September, 2010
Date of instrument Creating the charge	01.09.2010
Amount secured by the charge	Rs.200.000 Millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest 2% over bank’s prime lending rate(presently rate being 14.5%) plus interest tax aggregating to 16.5% p.a with monthly rests until further notice in writing will be charged on a daily balance. Terms of repayment The Hypothecated securities and debts are hypothecated as security by way of pari passu charge for the due repayment by the borrower to the bank at any time on the said limits for the payment of all debts and liabilities of the borrower to the bank including all interest thereon calculated from day to day at the rate mentioned and the amount of all charges and expenses which the bank may have paid or incurred or become liable in any way in connection with the hypothecated securities and debts. Margin The borrower shall at all times during the continuation of this security keep and maintain margins of security. The borrower shall not at any time operate or draw against the account so as to cause a debit balance on such account at any time to exceed such percentages that the bank may from time to time fix of the cost or market value whichever is lower of the hypothecated securities as specified by the bank from time to time. Extent and operation of the charge Charge ranks pari passu with charges of BNP Paribas and credit Agricole Corporate and investment bank. Borrower shall give full particulars of all assets and debts and of the hypothecated securities (H.S) and all records of the borrower in reference thereto and also allow them to value the same. All costs charges and expenses incurred by the bank and incidental to such inspection and valuation shall be paid by the borrower. Other Borrower shall at its risk and expense keep the hypothecated securities in marketable and good condition and shall fully insure them against fire, theft, and other risks including riots as the bank may at any time require. All securities shall be kept free from Distress by the borrower and in default the bank will be entitled to pay the same and debit to the account of the borrower.
Short particulars of the property charged (Including location of the property)	Machinery, Instruments, Devices, Fitting and Materials which may be combined with manufacturing operations, Maintenance or dealing with business of cleaning and treatment of water and liquid waste. All the above including stocks there of for the time being whether raw or manufactured or in the process of manufacture and all items manufactured including any such goods in the course of continued. Transit of delivery and all movable property of any kind in or about the premises, warehouse, godowns of the borrower in Delhi/Gurgaon or wherever else the same may be held by any party. All book debts, outstanding, money receivable, claims and bills which are now due and wing or which may at ay time after during the continuance of this security become due and owing to the borrower.

FIXED ASSETS:

· Building

· Leasehold Improvements

· Furniture and Fixtures

· Plant and Machinery

· Vehicles

· Temporary Structure at site

· Computer

Intangible Assets

· 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.55.86
UK Pound	1	Rs.87.93
Euro	1	Rs.70.88

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		31

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.