MIRA INFORM REPORT

Report Date :

06.03.2012

IDENTIFICATION DETAILS

Name :	HENKEL ADHESIVES TECHNOLOGIES INDIA PRIVATE LIMITED (w.e.f.17.11.2005)
Formerly Known As :	HENKEL LOCTITE INDIA PRIVATE LIMITED (w.e.f.16.07.2002) LOCTITE INDIA PRIVATE LIMITED
Registered Office :	D-3/D-4, MIDC Industrial Estate, Jejuri, Pune – 412 303, Maharashtra, India.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.01.1990
Com. Reg. No.:	11-014390
Capital Investment / Paid-up Capital :	Rs.412.147 Millions
CIN No.: [Company Identification No.]	U28933PN1990PTC014390
TAN No.: [Tax Deduction & Collection Account No.]	BLRH01954B
PAN No.: [Permanent Account No.]	AAACL1954B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of adhesives.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (73)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1800000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track. It is a part of Henkel Group Worldwide. Trade relations are reported as fair. Business is active. Financial position of the company appears to be sound. Payments are reported to be regular 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. Jeetendra Rananavare
Designation :	Sales Department
Contact No.:	91-20-30460401
Date :	05.03.2012

LOCATIONS

Registered Office/Factory:	D-3/D-4, MIDC Industrial Estate, Jejuri, Pune – 412 303, Maharashtra, India.
Tel. No.:	91-2115-253365 / 253203
Fax No.:	91-2115-253248 / 253448
E-Mail :	r.radhakrishnan@loctite.co.in srinivasan.venkatakrishnan@in.henkel.com renga-rajan.srinivasan@in.henkel.com jeetendra.rananavar@henkel.com sumant.khedekar@inhenkel.com
Website :	http://www.loctite.com http://www.henkel.com http://www.henkel-india.com
Head Office :	10th Floor, Kesar Solitaire, Plot No. 5, Sector – 19, Palm Beach Road, Sanpada, Navi Mumbai – 400705, Maharashtra, India
Tel. No.:	91-22-39296900
Fax No.:	91-22-39296602
E-Mail :	marketing@loctite.co.in
Brach Office :	Located at · Navi Mumbai · Gurgaon · Uttarakhand

DIRECTORS

As on 28.09.2010

Name :	Mr. Naveen Seth
Designation :	Managing Director
Address :	E 69l, Mansarovar Garden, New Delhi-110015, India
Date of Birth/Age :	25.10.1958
Date of Appointment :	21.11.2005
DIN No.:	01756030
Name :	Mr. Chi Wai Benjamin Ho
Designation :	Director
Address :	16F, 308, Canton Road, Block C, Kowcoon
Date of Birth/Age :	12.10.1972
Date of Appointment :	12.03.2009
DIN No.:	02439402
Name :	Mr. Ewe Kooi Sam
Designation :	Director
Address :	2 Castle Lanel, Wellingborough, Northants, England-NN81LBl, United Kingdom
Date of Birth/Age :	14.09.1951
Date of Appointment :	12.03.2009
DIN No.:	02297665
Name :	Mr. Sundararaman Ramakrishnan Iyer
Designation :	Alternate Director
Address :	G-1, Sai Madhura Residency, 12^th Main JP Nagar, 5^th Phase, Bangalore – 560078, Karnataka, India
Date of Birth/Age :	10.06.1961
Date of Appointment :	27.09.2010
DIN No.:	03303029

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2010

Names of Shareholders	No. of Shares
Henkel KGaA, Germany	41214663
Inter Beteligungsverwaltungs-Gesellschaft mbH, Germany	1
Total	41214664

Equity Share Breakup (Percentage of Total Equity)

As on 28.09.2010

Category	Percentage of Holding
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of adhesives.

Products :

Products	ITC Code No.:
Adhesives and Sealants	2926.90 (Cyanocacry late)
Adhesives and Sealants	3506.10 (Ancerobic)
Sealants	2916.14 (Resinol)

Imports:

Products:

Raw Material and Finished Goods

Countries :

Germany

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS

 As on 31.03.2010

Particulars	Unit	Installed Capacity	Actual Capacity
Engineering Sealants and adhesives	MT	476	324

Notes:

1) Installed capacity is based on managements certificate and accepted by auditors, being a technical matter

2) Production is in packed form.

Anaerobic – 80,635 Kgs

Cyanoacrylate – 18,113 Kgs

Resinol – 6,909 Kgs

Others – 218,127 Kgs.

GENERAL INFORMATION

Customers :

End Users, OEM’s and Manufacturing Companies

No. of Employees :

200 (Approximately)

Bankers :

• State Bank of India, Industrial Finance Branch, Residency Road, Bangalore – 560 025, Karnataka

• State Bank of India, Shiv Sagar Estate, Dr. Annie Besant Road, Worli, Mumbai – 400 018

· Central Bank of India, B. S. Marg, Mumbai

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Other Debt Unsecured	51.321	0.000
Total	51.321	0.000

Banking Relations :	--
Auditors :
Name :	BSR and Company Chartered Accountants
Address :	11-12/1, Inner Ring Road, Bangalore – 560 071, Karnataka, India.
Tel. No.:	91-80-2276000
Fax No.:	91-80-2273000/ 39806999
PAN No.:	AAAFB9852F
Holding Company:	Henkel Loctite Corporation 1001, Trout Brook Crossing Rocky Hill, Connecticut, U.S.A. – 06067
Ultimate Holding Company:	Henkel KGaA
Associates:	Loctite International BV De Lairessesstraak, 133, 1070, AG Amsterdam, The Netherlands
Subsidiaries:	· Converter Adhesives Chemicals Private Limited · Henkel CAC Private Limited CIN No. U24110MH1984PTC032433 · Polyinks Limited CIN No. U24220AP1985PLC023791
Other Related Parties:	· Henkel CEE Austria GMBH · Henkel France · Henkel Japan Limited · Henkel Loctite Limited, UK · Henkel Loctite Dentchland GMBH · Henkel SPA Italy · Henkel Taiwan Limited · Henkel Austrialia Limited · Henkel Malaysia · Resin Technology LLC US · Henkel Korea Limited · Henkel (China) Investment · Henkalll China Investment Company Limited · Henkel Philippines · Henkel Hong Kong Limited · Henkel lreland Limited · Henkel (Malaysia) SDN BHD · Henkel Surface Technologies France SAS · Henkel Loctite China Company Limited · Henkel Coporation, USA · Henkel Korea Limited · Henkel Teroson India Limited · Henkel Chembond Surface Technologies Limited · Henkel Huawei Electronics Company Limited · Henkel Thai Limited · National Starch and Chemical B.V. · Henkell Norden OY FI · Polyinks Limited In · Henkel India Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
85750000	Equity shares	Rs. 10/- each	Rs.857.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
41214664	Equity shares	Rs. 10/- each	Rs.412.147 Millions

Note:

Out of the above:

41214663 (31^st March 2008: 13964663) Equity Shares are held by Henkel KgaAl, Germany, The holding company and 1 (31^st March 2008: 1) share is held by Inter Betelligungsverwaltungs- Gesellschat mbH.

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		412.147	412.147	412.147
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4151.673	3833.285	3701.730
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4563.820	4245.432	4113.877
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		51.321	0.000	4.261
TOTAL BORROWING		51.321	0.000	4.261
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		4615.141	4245.432	4118.138
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2929.932	75.987	94.279
Capital work-in-progress		56.241	1.143	6.181
INVESTMENT		0.000	1061.493	1061.495
DEFERREX TAX ASSETS		77.228	12.952	10.687
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1044.222	140.035	101.271
	Sundry Debtors	1262.388	256.983	168.114
	Cash & Bank Balances	244.283	231.734	23.732
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	365.298	2905.893	2882.932
Total Current Assets		2916.191	3534.645	3176.049
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1068.064	294.347	139.785
	Other Current Liabilities	293.642	142.087	93.583
	Provisions	2.745	4.354	3.529
Total Current Liabilities		1364.451	440.788	236.897
Net Current Assets		1551.740	3093.857	2945.496
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		4615.141	4245.432	4118.138

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	5732.906	1090.036
		Other Income	NA	223.825
		TOTAL (A)	NA	1313.861	1023.169
Less	EXPENSES
		Material Cost, Stock, Personnel Cost and Other Charges
		TOTAL (B)	NA	793.357	680.766 (including Financial Chagres)
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1080.442	520.504
Less	FINANCIAL EXPENSES (D)		5.738	0.380
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1074.704	520.124	342.403
Less/ Add	DEPRECIATION/ AMORTISATION (F)		290.177	26.251	23.339
	PROFIT BEFORE TAX (E-F) (G)		784.527	493.873	319.064
Less	TAX (I)		321.960	169.441	112.007
	PROFIT AFTER TAX (G-I) (J)		462.567	324.432	207.057
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		717.993	618.881	411.824
Less	APPROPRIATIONS
		Transfer to General Reserve	46.257	32.443	0.000
		Dividend	144.180	192.877	0.000
	BALANCE CARRIED TO THE B/S		990.123	717.993	618.881
	Earnings Per Share (Rs.)		11.22	7.87	5.02

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	24.69	20.24
Net Profit Margin (PBT/Sales)	(%)	13.86	45.31	NA
Return on Total Assets (PBT/Total Assets}	(%)	13.42	13.68	9.76
Return on Investment (ROI) (PBT/Networth)		0.17	0.12	0.08
Debt Equity Ratio (Total Liability/Networth)		0.31	0.10	0.06
Current Ratio (Current Asset/Current Liability)		2.14	8.02	13.41

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Creditors due others	1068.064	294.347	139.785

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	Yes
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last two years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	No
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

 Note:

The company was incorporated on 1^st January 1990 at District Pune in Maharashtra under the name and style of Loctite India Private Limited having Company Registration Number 61651. The name of the company was changed to Henkel Loctite India Private Limited with effect from 16^th July 2002 and it was further changed to the present name w. e. f. 17.11.2005.

Operations:

Subject has as its main business in the field of Industrial Adhesives.

The Company has recorded a turnover of Rs. 6183.300 Millions for the year ended March 31, 2011. The profit carried to the Balance Sheet was Rs. 990.100 Millions.

During the year, Henkel CAC Private Limited, a wholly-owned subsidiary of subject merged with the Company as per the High Court Order dated 10^th June, 2011.

Fixed Assets:

· Leasehold Land

· Leasehold Improvements

· Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixtures

· Office Equipments

· Vehicles

· Laboratory Equipment

· 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.49.80
UK Pound	1	Rs.78.79
Euro	1	Rs.65.74

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--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		73

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.