MIRA INFORM REPORT

Report Date :

25.04.2013

IDENTIFICATION DETAILS

Name :	DURAVIT INDIA PRIVATE LIMITED (w.e.f. 26.12.2006)
Formerly Known As :	DURAVIT BATHROOM PRODUCTS PRIVATE LIMITED
Registered Office :	61, Titanium, Near Prahlad Nagar, Auda Garden, Off 100 Feet Road, Prahlad Nagar, Ahmedabad – 380 051, Gujarat
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	09.03.2006
Com. Reg. No.:	047919
Capital Investment / Paid-up Capital :	Rs.859.162 Millions
CIN No.: [Company Identification No.]	U26910GJ2006PTC047919
TAN No.: [Tax Deduction & Collection Account No.]	AHMD03650D
PAN No.: [Permanent Account No.]	AACCD3485F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter Ceramics and Bathroom Products.
No. of Employees :	375 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 1690000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution. NOTE: The financial for the year December 2012 are not filed by the company till date.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BBB – [Long Term Bank Facilities]
Rating Explanation	Moderate degree of safety it carry moderate credit risk.
Date	03.09.2012

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

Name :	Mr. Hiren Bachubhai Padhya
Designation :	Secretary
Contact No.:	91-8980041701
Date :	23.04.2013

LOCATIONS

Registered Office :	61, Titanium, Near Prahlad Nagar, Auda Garden, Off 100 Feet Road, Prahlad Nagar, Ahmedabad – 380 051, Gujarat, India
Tel. No.:	91-79-66112300
Mobile No.:	91-8980041701 [Mr. Hiren Bachubhai Padhya]
Fax No.:	91-79-66112316
E-Mail :	info@in.duravit.com hiren.padhya@in.duravit.com
Website :	http://www.duravit.com
Area:	6600 sq. ft.
Location:	Rented
Factory :	Post Village, Indranaj, Taluka Tarapur, District Anand-388180, Gujarat, India
Area:	174000 sq. ft.
Location:	Owned

DIRECTORS

AS ON 04.04.2012

Name :	Wolfgang Frank Richter
Designation :	Chairman
Address :	Barbara Kluntz Weg-5, ULM, Germany, Pin Code 89075
Date of Birth/Age :	14.03.1963
Date of Appointment :	09.11.2011
Din No.:	05116643
Name :	Mr. Asutosh Vimalbhai Shah
Designation :	Managing Director
Address :	Aman S. Riviera, 30, Bunglows, Prahladnagar, Ahmedabad-380051, Gujarat, India
Date of Birth/Age :	28.03.1963
Date of Appointment :	09.03.2006
Din No.:	00006578
Name :	Mr. Ernst Volk Reinhard Karl Volk
Designation :	Director
Address :	AM Sohl 3, Privat 76337, Waldbronn, Germany, Pin Code 78132
Date of Birth/Age :	26.03.1951
Date of Appointment :	01.07.2010
Din No.:	01125479
Name :	Mr. Michael Werner Griebe
Designation :	Director
Address :	Hohe Str 17 , Weinbohla, Germany, Pin Code 01689
Date of Birth/Age :	09.03.1949
Date of Appointment :	01.07.2010
Din No.:	02925770

KEY EXECUTIVES

Name :	Mr. Hiren Bachubhai Padhya
Designation :	Secretary
Address :	66, Suramya Bunglow, Sola Science Road, Ahmedabad-380060, Gujarat, India
Date of Birth/Age :	14.10.1968
Date of Appointment :	01.04.2011
Pan No.:	ACKPP9365M

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 04.04.2012

Names of Shareholders	No. of Shares
Asutosh Vimalbhai Shah	100
Wolfgang Frank Richter	100
Duravit AG, Germany	94501605
TOTAL	94501805

AS ON 04.04.2012

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 :	Manufacturer and Exporter Ceramics and Bathroom Products.
Exports :
Products :	Ceramics and Bathroom Products
Countries :	· Nepal · Bangladesh · Malaysia · Sri Lanka · Germany
Imports :
Products :	Raw Materials
Countries :	· Germany · China · Thailand
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

· Raheja Group of Company

No. of Employees :

375 [Approximately]

Bankers :

State Bank of India, Specialized Commercial Branch, Jay Laxmi Plaza, Ganesh Crossing, Anand – 388 001, Gujarat, India

Facilities :

Secured Loan	31.12.2011 [12 Months]	31.12.2010 [9 Months]
	Rs. In Millions
Rupee term loan	488.161	262.243
Other debts	46.757	40.837
Foreign currency loans bank	0.000	292.575
Interest accrued due other debts	0.000	1.200
TOTAL	534.918	596.855
Unsecured Loan	31.12.2011 [12 Months]	31.12.2010 [9 Months]
	Rs. In Millions
Rupee term loans financial institutions	157.093	96.892
TOTAL	157.093	96.892

Banking Relations :	--
Auditors :
Name :	Vinay H. Gupta and Associates Chartered Accountants
Address :	13, Central Lane Babar Road, New Delhi-110001, India
PAN No:	AAJPG4461G
Holding Company :	Duravit AG, Germany
Fellow Subsidiaries :	· Duravit Asia Limited, Singapore · Duravit (China) Sanitaryware Company Limited, China · Duravit Yapi Orunle (Turkey) · Duravit Egypt

CAPITAL STRUCTURE

AS ON 04.04.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
110000000	Equity Shares	Rs.10/- each	Rs.1100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
94501805	Equity Shares	Rs.10/- each	Rs.945.018 Millions

AS ON 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
110000000	Equity Shares	Rs.10/- each	Rs.1100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
85916187	Equity Shares	Rs.10/- each	Rs.859.162 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011 [12 Months]	31.12.2010 [9 Months]	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		859.162	629.869	582.561
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(435.546)	(213.322)	(47.100)
NETWORTH		423.616	416.547	535.461
LOAN FUNDS
1] Secured Loans		534.918	596.855	478.164
2] Unsecured Loans		157.093	96.892	0.000
TOTAL BORROWING		692.011	693.747	478.164
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1115.627	1110.294	1013.625
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		886.595	996.886	954.028
Capital work-in-progress		1.204	3.206	15.892
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	367.218	218.739	102.418
	Sundry Debtors	2.338	2.387	0.238
	Cash & Bank Balances	7.431	7.791	19.614
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	53.875	51.563	33.855
Total Current Assets		430.862	280.480	156.125
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	97.880	153.817	23.713
	Other Current Liabilities	111.743	29.658	106.633
	Provisions	3.156	1.911	1.205
Total Current Liabilities		212.779	185.386	131.551
Net Current Assets		218.083	95.094	24.574
MISCELLANEOUS EXPENSES		9.745	15.108	19.131
TOTAL		1115.627	1110.294	1013.625

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011 [12 Months]	31.12.2010 [9 Months]	31.03.2010
	SALES
		Income			130.993
		Other Income			43.201
		TOTAL (A)	399.268	307.500	174.194
Less	EXPENSES
		Raw material consumed			4.919
		Finished goods purchased			124.616
		Manufacturing Expenses	498.244	397.903	3.288
		Personnel Cots			37.775
		Operating and Other Expenses			46.538
		Increase in stock of finished and Process Stock			(33.097)
		TOTAL (B)	498.244 [Including Financial Expenses]	397.903	184.039
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)				(9.845)
Less	FINANCIAL EXPENSES (D)				7.817
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(98.976)	(90.403)	(17.662)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		123.263	123.217	30.003
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(222.239)	(213.620)	(47.665)
Less	TAX (H)		(0.014)	(0.705)	0.662
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(222.225)	(212.915)	(48.327)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	1.226
	BALANCE CARRIED TO THE B/S		NA	NA	(47.100)
	EARNINGS IN FOREIGN CURRENCY
		Commission Earnings	NA	NA	35.528
	TOTAL EARNINGS		NA	NA	35.528
	IMPORTS
		Raw Materials	NA	NA	7.913
		Capital Goods	NA	NA	124.616
	TOTAL IMPORTS		NA	NA	132.529
	Earnings / (Loss) Per Share (Rs.)		(2.35)	(2.25)	(1.26)

Particulars	2012
Sales Turnover [Approximately]	600.000

Expected Sales (2013) : Rs.750.000 Millions.

The above information has been parted by Mr. Hiren Bachubhai Padhya.

KEY RATIOS

PARTICULARS		31.12.2011 [12 Months]	31.12.2010 [9 Months]	31.03.2010
PAT / Total Income	(%)	(55.65)	(69.24)	(27.74)
Net Profit Margin (PBT/Sales)	(%)	NA	NA	(36.38)
Return on Total Assets (PBT/Total Assets}	(%)	(16.87)	(16.72)	(4.29)
Return on Investment (ROI) (PBT/Networth)		(0.52)	(0.51)	(0.08)
Debt Equity Ratio (Total Debt/Networth)		1.63	1.67	0.89
Current Ratio (Current Asset/Current Liability)		2.02	1.51	1.18

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.12.2011 [12 Months]	31.12.2010 [9 Months]	31.03.2010
	Rs. In Millions
Sundry Creditors	97.880	153.817	23.713

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 five years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONS:

The total income including commission earned from Duravit AG was Rs. 399.270 millions during the year as compared to Rs. 307.500 millions for the previous year. The loss before Interest, Depreciation and Taxes for the year was Rs.28.810 millions as compared to the loss of Rs. 47.380 millions for the previous year.

FINANCE:

Term Loan from State Bank of India, Specialized Commercial Branch, Anand was reduced from Rs. 554.820 millions to Rs. 488.160 millions. The Company had also obtained further Inter Company Loan of Rs. 60.200 millions from Duravit AG, Germany under External Commercial Borrowing (ECB) Automatic Route. The referred ECB is repayable after three years.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10159968
Corporate identity number of the company	U26910GJ2006PTC047919
Name of the company	DURAVIT INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	61, Titanium, Near Prahlad Nagar, Auda Garden, Off 100 Feet Road, Prahlad Nagar, Ahmedabad – 380 051, Gujarat, India
Type of charge	Book Debts Movable Property [not being pledge] Floating Charge
Particular of charge holder	State Bank of India, Specialized Commercial Branch, Jay Laxmi Plaza, Ganesh Crossing, Anand – 388 001, Gujarat, India Email: sbi.04084@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Letter regarding the grant of Individual limits within the overall limit
Date of instrument Creating the charge	17.01.2013
Amount secured by the charge	Rs.561.100 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest For Cash Credit - 3.75% above base rate - effective rate of interest - 13.50% For Term Loan - 3.95% above base rate - effective rate of interest - 13.70% Terms of Repayment Cash Credit repayable on Demand, Term Loan repayable in monthly installment basis. The last installment will fall due in June, 2016. Margin For Fund based Limits : Raw materials (Domestic and Imported) - 25%, Stock in process and Finished Goods - 40%, Book debts and Receivables - 50% For Term Loan - 40% / 50% For Non Fund based limits - 25% Extent and Operation of the charge First Charge by way of hypothecation of entire goods, movables and other assets present and future including documents of the title to the goods and other assets such as book debts, outstanding moneys, receivables etc. and extension of hypothecation charge over entire current assets as collateral security for Term Loan.
Short particulars of the property charged	First Charge by way of hypothecation of entire goods, movables and other assets present and future located at the plant site at Village Indranaj, Taluka Tarapur, District Anand in the state of Gujarat
Date of latest modification prior to the present modification	18.12.2010
Particulars of the present modification	1. Cash Credit Limit increased to Rs. 80.000 Millions. 2. Term Loan amount reduced to Rs. 400.700 Millions. 2. Rate of Interest on Cash Credit Limit revised to 13.50% and on Term Loan revised to 13.70%. 3. Credit Exposure Limit revised to Rs. 10.400 Millions for forward contracts sanctioned.

FIXED ASSETS:

• Land
• Buildings
• Plant and Machinery
• Furniture and Fixture
• Vehicles
• Office Equipment
• Computer
• 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 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.54.30
UK Pound	1	Rs.82.87
Euro	1	Rs.70.80

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

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.