MIRA INFORM REPORT

Report Date :

05.04.2013

IDENTIFICATION DETAILS

Name :	TIMEX GROUP PRECISION ENGINEERING LIMITED
Registered Office :	117, Ground Floor, World Trade Centre, Babar Road, New Delhi – 110001, Delhi
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.05.2008
Com. Reg. No.:	55-178234
Capital Investment / Paid-up Capital :	Rs. 395.813 Millions
CIN No.: [Company Identification No.]	U74210DL2008PLC178234
TAN No.: [Tax Deduction & Collection Account No.]	DELT07970E
PAN No.: [Permanent Account No.]	AACCT9314M
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer of High Precision Injection Molds.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (33)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 1000000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “ TIMEX NEDERLAND B.V” Netherlands It is an established company having a moderate track record. The financial position of the company is improving. There appears no external borrowing. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with slight caution.

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.

LOCATIONS

Registered Office :	117, Ground Floor, World Trade Centre, Babar Road, New Delhi – 110001, Delhi, India
Tel. No.:	91-11-23417080/ 23417081
Fax No.:	91-11-23417082
E-Mail :	ppuri@timex.com sverma@timex.com b2bindia@timex.com
Website :	www.timexindia.com
Corporate Office :	Studio No. 217, 2^nd Floor, International Home Deco Park, Plot No. 7, Sector – 127, Noida - 201301, Uttar Pradesh, India
Tel. No.:	91-120-4741300
Fax No.:	91-120-4741440
Factory :	A-27, Sector – 68, Noida – 201307, Uttar Pradesh, India
Tel. No.:	91-120-3004205
Fax No.:	91-120-3004207
Location :	Owned

DIRECTORS

As on: 29.09.2012

Name :

Mr. Kapil Kapoor

Designation :

Director

Address :

D-402, Som Vihar, R. K. Puram, New Delhi, India

Date of Birth/Age :

06.08.1964

Qualification :

BA and MBA

Date of Appointment :

16.05.2008

DIN No.:

00178966

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	Date of cessation	Company/ LLP Status	Defaulting status
1	L33301DL1988PLC033434	TIMEX GROUP INDIA LIMITED	Director	29/01/2009	19/09/2000	-	Active	NO
2	L74899DL1995PLC068021	INFO EDGE (INDIA) LIMITED	Director	01/10/2002	01/10/2002	-	Active	NO
3	U74899DL1994PTC060706	TIME MASTER INDIA PRIVATE LIMITED	Director	29/09/2007	09/04/2007	-	Active	NO
4	U74210DL2008PLC178234	TIMEX GROUP PRECISION ENGINEERING LIMITED	Director	16/05/2008	16/05/2008	-	Active	NO
5	U74900DL2009PTC193377	NINETY NINE LABELS PRIVATE LIMITED	Director	30/09/2011	05/07/2011	-	Active	NO

Name :

Mr. Kalyan Kumar Ghosh

Designation :

Director

Address :

A – 101, F – 2, Sector – 50, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

31.05.1969

Qualification :

B. Tech

Date of Appointment :

01.07.2011

DIN No.:

02882797

Name :

Mr. Manuel Lopes Henriques

Designation :

Director

Address :

167, Silver Beach Road, Southbury CT, Connecticut, U.S.A.

Date of Birth/Age :

06.07.1948

Qualification :

Industrial Engineer

Date of Appointment :

30.09.2010

DIN No.:

00040398

Name :

Mr. Milan Kumar Bandyopadhyay

Designation :

Additional director

Address :

C-91, Sector-49, Noida Gautam Budh Nagar – 201303, Uttar Pradesh, India

Date of Birth/Age :

20.11.1956

Date of Appointment :

01.02.2013

DIN No.:

02323566

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U74210DL2008PLC178234	TIMEX GROUP PRECISION ENGINEERING LIMITED	Additional director	01/02/2013	23/08/2008	-	Active	NO
2	L33301DL1988PLC033434	TIMEX GROUP INDIA LIMITED	Managing director	01/02/2013	01/02/2013	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Timex Nederland B.V. (Netherlands)	39531253
Vass Dev Wadhwa	49994
Kapil Kapoor	1
Milan Kumar Bandyopadhyay	1
Kalyan Kumar Ghosh	1
Shilpa Verma	1
R. Chandrasekhar	1
G. Lakshman Rao	1
Total	39581253

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	99.87
Directors or relatives of Directors	0.13
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of High Precision Injection Molds.

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	HSBC Bank, Noida, Uttar Pradesh, India

Banking Relations :	--
Auditors :
Name :	B S R and Company Chartered Accountants
Address :	Building No. 10, 8^th Floor, Tower – B, DLF Cyber City, Phase II, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-2549191
Fax No.:	91-124-2549101
PAN.:	AAAFB9852F
Holding Company :	Timex Nederland B. V. Timex Group India Limited CIN No.: L33301DL1988PLC033434
Ultimate Holding Company :	Timex Group B. V.

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
40000000	Equity Shares	Rs.10/- each	Rs. 400.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
39581253	Equity Shares	Rs.10/- each	Rs. 395.813 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		395.813	395.813	313.867
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		16.736	5.442	0.000
4] (Accumulated Losses)		0.000	0.000	(3.739)
NETWORTH		412.549	401.255	310.128
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		8.591	5.726	1.398
TOTAL		421.140	406.981	311.526
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		358.746	292.900	202.935
Capital work-in-progress		0.000	0.000	71.416
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	18.359	23.126	12.216
	Sundry Debtors	72.402	57.797	43.558
	Cash & Bank Balances	18.606	37.705	20.951
	Other Current Assets	0.034	0.037	0.265
	Loans & Advances	5.592	58.388	8.050
Total Current Assets		114.993	177.053	85.040
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	30.815	33.859	39.566
	Current Liabilities	12.718	17.520	2.086
	Provisions	9.066	11.593	6.213
Total Current Liabilities		52.599	62.972	47.865
Net Current Assets		62.394	114.081	37.175
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		421.140	406.981	311.526

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011
	SALES
		Income	253.971	211.134
		Other Income	0.326	1.043
		TOTAL (A)	254.297	212.177
Less	EXPENSES
		Cost of materials consumed	115.472	103.359
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	6.098	(10.482)
		Employee benefit expense	44.612	39.905
		Other expenses	50.755	48.432
		TOTAL (B)	216.937	181.214
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		37.360	30.963
Less	FINANCIAL EXPENSES (D)		0.450	0.064
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		36.910	30.899
Less/ Add	DEPRECIATION/ AMORTISATION (F)		16.390	12.617
	PROFIT BEFORE TAX (E-F) (G)		20.520	18.282
Less	TAX (H)		9.225	9.103
	PROFIT AFTER TAX (G-H) (I)		11.295	9.179
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.440	(3.739)
	BALANCE CARRIED TO THE B/S		16.735	5.440
	Earnings Per Share (Rs.)		0.28	0.23

	PARTICULARS		31.03.2010
	SALES
		Income from operations	144.735
		Other Income	2.363
		TOTAL (A)	147.098
Less	EXPENSES
		Materials consumed and movements in finished goods and work-in-progress	55.371
		Personnel Cost	32.509
		Other expenses	46.499
		Preliminary expenses	0.000
		TOTAL (B)	134.379
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12.719
Less	FINANCIAL EXPENSES (D)		0.000
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.719
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.570
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		2.149
Less	TAX (H)		1.587
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		0.562
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(4.301)
	BALANCE CARRIED TO THE B/S		(3.739)
	IMPORTS
		Raw Materials	1.724
		Capital Goods	1.706
	TOTAL IMPORTS		3.430
	Earnings Per Share (Rs.)		0.02

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.44	4.33	0.38
Net Profit Margin (PBT/Sales)	(%)	8.08	8.66	1.48
Return on Total Assets (PBT/Total Assets}	(%)	4.33	3.89	0.75
Return on Investment (ROI) (PBT/Networth)		0.05	0.05	0.01
Debt Equity Ratio (Total Debt /Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		2.18	2.81	1.78

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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	Yes
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	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATIONS

The Company specializes in manufacturing High Precision Injection Molds up to 300 Ton capacity, using the latest technology machines installed in a controlled environment. Plastic parts are produced on high efficiency microprocessor controlled Injection Molding Machines (up to a capacity of 180 Tons) cap able of handling all types of engineering plastics.

The Company has on its team, qualified and experienced staff from reputed institutes across the country backed up by a strong team of Designers supported by the latest Design software.

The Company continues to conform to ISO 9001:2008 (TUV NORD) standards.

FIXED ASSETS

• Leasehold Land
• Leasehold Improvements
• Plant and Machinery
• Office equipment
• Furniture and Fixture
• IT Equipment

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 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. 54.65
UK Pound	1	Rs. 82.41
Euro	1	Rs. 70.08

INFORMATION DETAILS

Report Prepared by :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		33

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	-

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.