MIRA INFORM REPORT

Report Date :

28.09.2012

IDENTIFICATION DETAILS

Name :	FIBREX CONSTRUCTION CHEMICALS PRIVATE LIMITED
Registered Office :	Plot No.73, First Floor, New DLF Industrial Area, Faridabad – 121 003, Haryana
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	03.08.2007
Com. Reg. No.:	05-166598
Capital Investment / Paid-up Capital :	Rs.1.100 Millions
CIN No.: [Company Identification No.]	U45209DL2007PTC166598
TAN No.: [Tax Deduction & Collection Account No.]	DELF03453C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Construction Chemicals.
No. of Employees :	50 (Approximately)

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 33000
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 – 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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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 [General Details]

Name :	Ms. Leena
Designation :	Sales Coordinator
Contact No.:	91-129-4081412
Date :	17.09.2012

LOCATIONS

Registered / Corporate Office :	Plot No.73, First Floor, New DLF Industrial Area, Faridabad – 121 003, Haryana, India
Tel. No.:	91-129-4081412
Fax No.:	91-129-4113488
E-Mail :	sales@fibrexchem.com pkakroo@fibrexchem.com
Website :	http://www.fibrexchem.com
Location :	Owned
Factory :	Village Sarai Khatela, Gudrana Road, Hodal, District Palwal, Haryana, India
Tel. No.:	91-129-4081412
Fax No.:	91-129-4113488
Area :	50000 sq. ft.
Location :	Owned

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Puneet Kakroo

Designation :

Director

Address :

H. No.218, Sector-21-C, Faridabad, Haryana, India

Date of Birth/Age :

11.01.1976

Date of Appointment :

03.08.2007

DIN No.:

01662848

Voter ID :

JWP2292746

PAN No.:

AOKPK0230L

Name :

Mr. Maharaj Krishen Kakroo

Designation :

Director

Address :

H. No.218, Sector-21-C, Faridabad, Haryana, India

Date of Birth/Age :

08.10.1947

Qualification :

PHD

Date of Appointment :

30.09.2009

PAN No.:

AYOPK1787A

DIN No.:

02097313

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	Company/ LLP Status	Defaulting status
1	U45209DL2007PTC166598	FIBREX CONSTRUCTION CHEMICALS PRIVATE LIMITED	Director	30/09/2009	20/11/2008	Active	NO

KEY EXECUTIVES

Name :	Ms. Leena
Designation :	Sales Coordinator

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Puneet Kakroo	109000
Krishna Kakroo	1000
Total	110000

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Construction Chemicals.
Products :	v Epoxy Floorings / Coatings v Floor Hardeners v Grouts v Repair Compounds v Curing And Sealing Compounds v Waterproofing Admixtures v Tile Grouts / Adhesives v Joint Sealants v Coatings for Corrosion Protection v Admixtures

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Actual Production
Construction Chemicals	1046

Licenced Capacity is not applicable.

The company generates a large variety of different paints, chemicals and other variants and as such the specific production capacity utilization ratios cannot reasonably made out.

GENERAL INFORMATION

No. of Employees :

50 (Approximately)

Bankers :

v Small Industries Development Bank of India, NH5-R/2, Neelam Badshah Khan Road, NIT, Faridabad – 121001, Haryana, India

v ICICI Bank

v HDFC Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
ICICI Bank Car Loan	0.000	0.063
ICICI Bank Van A/c	0.000	0.042
J and K Bank Loan	0.076	0.125
J and K Bank Loan	0.334	0.515
HDFC Safari Loan	0.000	0.479
HDFC Cruze Loan	0.929	0.000
SIDBI Term Loan	2.351	3.311
Total	3.690	4.535
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Puneet Kakroo	0.754	0.754
M.K. Kakroo	0.630	0.630
Total	1.384	1.384

Banking Relations :	--
Auditors :
Name :	MLG Associates Chartered Accountants
Address :	House No. 63, Sector-15, Faridabad – 121007, Haryana, India
Income-tax PAN of auditor or auditor's firm :	AAGFM1817M

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
110,000	Equity Shares	Rs. 10/- each	Rs. 1.100 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
110,000	Equity Share	Rs.10/- each	Rs. 1.100 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		1.100	1.100	1.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		7.034	4.886	2.924
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		8.134	5.986	4.024
LOAN FUNDS
1] Secured Loans		3.690	4.535	3.344
2] Unsecured Loans		1.384	1.384	1.155
TOTAL BORROWING		5.074	5.919	4.499
DEFERRED TAX LIABILITIES		0.000	0.166	0.000
TOTAL		13.208	12.071	8.523
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.762	9.731	5.332
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	2.490	1.650	0.354
	Sundry Debtors	3.805	3.877	4.320
	Cash & Bank Balances	4.380	2.751	2.102
	Other Current Assets	0.932	1.006	1.478
	Loans & Advances	0.305	0.176	0.169
Total Current Assets		11.912	9.460	8.423
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.463	5.980	4.459
	Other Current Liabilities	1.910	1.142	0.891
	Provisions	0.094	0.001	(0.114)
Total Current Liabilities		8.467	7.123	5.236
Net Current Assets		3.445	2.337	3.187
MISCELLANEOUS EXPENSES		0.001	0.003	0.004
TOTAL		13.208	12.071	8.523

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	31.827	27.205	26.405
		Other Income	0.859	0.090	0.037
		TOTAL (A)	32.686	27.295	26.442
Less	EXPENSES
		Cost of Goods Sold			16.449
		Manufacturing Expenses			4.164
		Administrative Expenses			2.111
		Selling and Distribution Expenses			0.460
		TOTAL (B)	29.704	22.639	23.184
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			4.656	3.258
Less	FINANCIAL EXPENSES (D)			0.521	0.127
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			4.135	3.131
Less/ Add	DEPRECIATION/ AMORTISATION (F)			0.860	0.538
	PROFIT BEFORE TAX (E-F) (G)		2.982	3.275	2.593
Less	TAX (H)		1.065	1.066	0.804
	PROFIT AFTER TAX (G-H) (I)		1.917	2.209	1.789
	Earnings Per Share (Rs.)		18.86	20.09	16.27

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.86	8.09	6.77
Net Profit Margin (PBT/Sales)	(%)	9.37	12.04	9.82
Return on Total Assets (PBT/Total Assets}	(%)	13.76	17.07	18.85
Return on Investment (ROI) (PBT/Networth)		0.37	0.55	0.64
Debt Equity Ratio (Total Liability/Networth)		1.66	2.18	2.42
Current Ratio (Current Asset/Current Liability)		1.41	1.33	1.61

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	Yes
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%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	Yes
34]	External Agency Rating, if available	No

Note: The registered address of the company has been shifted from Bp-30, Maurya Enclave Pitam Pura, New Delhi – 110034, India to the present

THE FINANCIALS:

The company started its commercial operations this year. The Directors express satisfaction that in its maiden year of operations, the company has clocked a Turnover from Rs. 35.031 millions. The Company Generated EBDIT of 5.115 millions. After the charge towards the Deprecation and Interest Cost, the Company generated net profit – (P.B.T.) for the year to the tune of Rs.2.982 millions.

BUSINESS OUTLOOK FOR THE COMING YEAR:

The last year marked with recession in market. The company did improve its top line, but due to intense competition from the industry, the prices were under strain. The raw material prices increased continuously and the rising US Dollar price also lead to increase in cost of inputs. The major reason for decrease in profit was the almost doubling of depreciation cost. For the future, the company’s order book is healthy. And the company is expected to post better results on both top line and bottomline.

FIXED ASSETS:

v Plant and Machinery

v Inverter Generator

v Office Equipment

v Tools and Dies

v Furniture and Fixtures

v Computer

v Car

v Cycle

v Land

v Building

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 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. 53.26
UK Pound	1	Rs. 86.23
Euro	1	Rs. 68.64

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	4
--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	NO
--LISTED	YES/NO	YES
--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

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.