MIRA INFORM REPORT

Report Date :

22.03.2012

IDENTIFICATION DETAILS

Name :	ENDEKA CERAMICS INDIA PRIVATE LIMITED (w.e.f. 27.03.2007)
Formerly Known As :	JOHNSON MATTHEY CERAMICS INDIA PRIVATE LIMITED
Registered Office :	No.23/57, 41^st Cross, East End C Main Road, 9^th Block, Jayanagar, Bangalore – 560 009, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.08.1994
Com. Reg. No.:	08-016130
Capital Investment / Paid-up Capital :	Rs.162.292 millions
CIN No.: [Company Identification No.]	U26914KA1994PTC016130
PAN No.: [Permanent Account No.]	AABCJ4924C
Legal Form :	Private Limited Liability Company
Line of Business :	The company is primarily involved in manufacture of Zirconium Silicate and Frits which are used in the manufacture of tiles.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (17)

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. There appears huge accumulated losses recorded by the company. Profitability of the company is 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 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 Office :	No.23/57, 41^st Cross, East End C Main Road, 9^th Block, Jayanagar, Bangalore – 560 009, Karnataka, India
Tel. No.:	91-80-26636042
Fax No.:	Not Available
E-Mail :	SampaA@endekaceramics.com BhuvanA@endekaceramics.com
Website :	http://www.endekaceramics.com
Factory 1 :	Plot Nos.74 and 75, SIPCOT - Phase II, Electronics Complex, Kumudepalli Post, Hosur – 635 109, Tamilnadu, India
Factory 2 :	Plot Nos.756/8 and 9, GIDC Estate, Jhagadia, Bharuch District – 393 110, Gujarat, India
Tel. No.:	91-4344-260934/ 5/ 6
Fax No.:	91-4344-260118

DIRECTORS

As on 28.09.2011

Name :

Ms. Asha Sampath

Designation :

Managing Director

Address :

14/1, New High School Road, V.V. Puram, Bangalore – 560 004, Karnataka, India

Date of Birth/Age :

13.05.1965

Date of Appointment :

01.04.2008

DIN No.:

02160962

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U26914KA1994PTC016130	Endeka Ceramics India Private Limited	Managing director	16-09-08	01-04-08	Active	NO

Name :

Bertrand Marie Charles Repelin

Designation :

Director

Address :

PS Alameda, 44 8-22, Valencia, 46023, Spain

Date of Birth/Age :

18.09.1953

Date of Appointment :

22.02.2008

DIN No.:

02207708

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U26914KA1994PTC016130	Endeka Ceramics India Private Limited	Director	16-09-08	22-02-08	Active	NO

Name :

Mr. Ricotta Carlo

Designation :

Director

Address :

# 3, Jalan Kiara 2, 50480, Kuala Lumpur, Malaysia

Date of Birth/Age :

04.12.1966

Date of Appointment :

22.03.1999

DIN No.:

02223189

Name :

Mr. Alexander Stephen Pellizzoni

Designation :

Director

Address :

No.68, The Crescent Port, Melbourne VIC 3207 Australia

Date of Birth/Age :

24.05.1949

Date of Appointment :

21.02.1998

DIN No.:

02374618

Name :

Mr. Tyagarajan Ranganathan

Designation :

Director

Address :

2-C, Santosh Apartments, 2, Palmgrove Road, Bangalore – 560 047, Karnataka, India

Date of Birth/Age :

07.05.1933

Date of Appointment :

02.12.2008

DIN No.:

00050579

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U70100MH1978PTC020709	Carmel Properties Private Limited	Director	04-06-87	04-06-87	Active	NO
2	U70100MH1987PLC044721	Paranjape Schemes (Construction) Limited	Director	18-08-06	18-08-06	Active	NO
3	U19129TN1984PTC011128	Polyrez(India) Private Limited	Director	28-09-06	28-09-06	Active	YES
4	U26914KA1994PTC016130	Endeka Ceramics India Private Limited	Director	26-08-09	02-12-08	Active	NO

Name :

Mr. Karangalpadi Jathindra Mohan Shetty

Designation :

Director

Address :

F-88, First Street, Anna Nagar, Chennai – 600 102, Tamilnadu, India

Date of Birth/Age :

03.03.1934

Date of Appointment :

28.09.2011

DIN No.:

00033296

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	U36999TZ1992PLC003662	Roots Multi Clean Limited	Director	16-07-93	16-07-93	28-03-10	Active	NO
2	U72200TN2001PTC046986	Savant India Institute of Technology Private Limited	Director	18-04-01	18-04-01	-	Active	NO
3	L36991TN1990PLC019944	Jumbo Bag Limited	Director	28-05-02	28-05-02	-	Active	NO
4	L17111TN1946PLC001361	Loyal Textile Mills Limited	Director	21-06-02	21-06-02	-	Active	NO
5	L74899MH1994PLC164024	Gateway Distriparks Limited	Director	16-06-04	16-06-04	-	Active	NO
6	U35111KA1994PTC020576	Gateway Distriparks (South) Private Limited	Director	30-11-04	30-11-04	-	Active	NO
7	L72200TN1978PLC058225	Savant Infocomm Limited	Director	29-11-05	29-11-05	15-10-07	Active	NO
8	U72200TN2006PTC060355	Opus IT Services India Private Limited	Director	11-07-06	11-07-06	15-12-07	Active	NO
9	U17111TN1982PLC009317	Shri Chintamani Textile Mills Limited	Director	29-09-09	02-11-08	16-08-10	Amalgamated	NO
10	U74140TN2000PTC045736	VKS Solutions Private Limited	Director	19-07-11	19-07-11	-	Active	NO
11	U26914KA1994PTC016130	Endeka Ceramics India Private Limited	Director	28-09-11	22-07-11	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Asha Sampath
Designation :	Secretary
Address :	14/1, New High School Road, V.V. Puram, Bangalore – 560 004, Karnataka, India
Date of Birth/Age :	13.05.1965
Date of Appointment :	08.09.1994
PAN No.:	AEDPS7904N

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2011

Names of Shareholders	No. of Shares
Alexendar Stephan Pellizoni (Nominee of ECOH)	100
Endeka Cermics Overseas Holdings, London	16228650
Carlo Ricotta (Nominee of ECOH)	25
KJM Shetty (Nominee of ECOH)	100
Asha Sampath (Nominee of ECOH)	75
Betrand Marie Charles Repelin (Nominee of ECOH)	100
Tyagarajan Ranganathan	100
Total	16229150

As on 28.09.2011

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

BUSINESS DETAILS

Line of Business :

The company is primarily involved in manufacture of Zirconium Silicate and Frits which are used in the manufacture of tiles.

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity	Actual Production
Zirconium Silicate	MT	12400	10519.00*
Frits	MT	22000	8974.39

NOTE: * Includes 647.79 MT of Zirconium Silicate which has been used captively for manufacture of frits.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Foreign currency loans	12.538	0.000
Working capital loans	20.000	0.000
Total	32.538	0.000
Unsecured Loan
Deferred sales tax loan	34.021	41.569
Share unsecured loans joint ventures	626.438	626.438
Total	660.459	668.007

Banking Relations :	--
Auditors :
Name :	BSR and Company Chartered Accountants
Address :	Maruth Info-Tech Centre, 11, 121, Inner Ring Road, Koramangala, Bangalore-560071, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AAAFB9852F
Holding company:	Endeka Ceramics Overseas Holdings Unlimited Co, UK
Ultimate Holding Company:	Endeka Ceramics Holding SLU, Spain
Fellow subsidiary:	· Endeka Ceramics, S A · Endeka Ceramics, S P A · Endeka Ceramics Sdn Bhd · Endeka Ceramics (Jiangsu) Company Limited, Jiangsu · PT Endeka Ceramics · Endeka Ceramica LtdA · Endeka Ceramics Holding SL · Endeka Ceramics (Shanghai) Company Limited

CAPITAL STRUCTURE

As on 28.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.10/- each	Rs.180.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16229150	Equity Shares	Rs.10/- each	Rs.162.292 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		162.292	162.292	162.292
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4.819	4.819	4.819
4] (Accumulated Losses)		(190.338)	(172.506)	(106.769)
NETWORTH		(23.227)	(5.395)	60.342
LOAN FUNDS
1] Secured Loans		32.538	0.000	0.000
2] Unsecured Loans		660.459	668.007	697.125
TOTAL BORROWING		692.997	668.007	697.125
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		669.770	662.612	757.467
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		402.435	427.793	421.226
Capital work-in-progress		4.432	0.909	26.978
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	134.334	95.526	167.396
	Sundry Debtors	217.624	175.023	116.406
	Cash & Bank Balances	28.340	73.244	2.825
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	68.123	70.242	85.934
Total Current Assets		448.421	414.035	372.561
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	153.358	166.776
	Other Current Liabilities	13.636	2.541	55.822
	Provisions	18.524	10.808	7.476
Total Current Liabilities		185.518	180.125	63.298
Net Current Assets		262.903	233.910	309.263
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		669.770	662.612	757.467

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	929.035	706.863	634.469
		Interest	0.803	1.804	0.779
		Other Income	4.310	2.377	10.572
		TOTAL	934.148	711.044	645.820
Less	EXPENSES
		Office Expenses
		Administrative Expenses	951.980	773.750	770.264
		Advertising Expenses
		TOTAL	951.980	773.750	770.264
	PROFIT / (LOSS) BEFORE TAX		(17.832)	(62.706)	(124.444)
Less	TAX		0.000	3.032	(13.869)
	PROFIT / (LOSS) AFTER TAX		(17.832)	(65.738)	(110.575)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	138.590	112.745	140.535
	IMPORTS
		Raw Materials	413.680	169.336	286.614
		Traded Goods	21.091	24.241	39.080
		Capital Goods	0.966	0.923	0.699
		Others	8.846	1.217	2.375
	TOTAL IMPORTS		444.583	195.717	328.768
	Earnings / (Loss) Per Share (Rs.)		(1.10)	(4.05)	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(1.91)	(9.25)	(17.12)
Net Profit Margin (PBT/Sales)	(%)	(1.92)	(8.87)	(19.61)
Return on Total Assets (PBT/Total Assets}	(%)	(2.10)	(7.45)	(15.68)
Return on Investment (ROI) (PBT/Networth)		0.77	11.62	(2.06)
Debt Equity Ratio (Total Liability/Networth)		(37.82)	(157.20)	12.60
Current Ratio (Current Asset/Current Liability)		2.42	2.30	5.89

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS AND OPERATIONS:

2010 – 11 IN RETROSPECT:

The year recorded an overall increase of 32% in turnover contributed largely by 43% growth in sale of Zircosil® and minerals and a moderate increase in the growth of Surface Products.

Bottom line recorded a significant improvement over last year not withstanding a hugely volatile raw material market.

ZIRCOSIL:

Zircosil market experienced a very volatile period during the past year owing to unprecceedented growth in consumption globally and especially in China. The trend is expected to continue during the current year as well.

SURFACE PRODUCTS:

Surface Products business reflects a steady growth both in terms of market share and overall financial performance and productivity even amidst severe competition.

OUTLOOK:

The Outlook continues to remain positive with company demonstrating year on year top line growth in both verticals – Zircosil® and Traded surface products and is expected to move well in line with the country’s industry average. The aggressive sales strategy combined with brand equity will translate into year on year growth in terms of topline as also profitability.

FIXED ASSETS:

· Leasehold Land

· Building

· Plant and Machinery

· Office Equipments

· Computers

· Furniture and Fixtures

· Vehicles

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.50.59
UK Pound	1	Rs.80.34
Euro	1	Rs.67.14

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	1
--CREDIT LINES	1~10	-
--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		17

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.