MIRA INFORM REPORT

Report Date :

10.08.2013

IDENTIFICATION DETAILS

Name :	STERLING LAM LIMITED
Registered Office :	Block No.123, At Mahiyal, Taluka Talod, Sabarkantha – 383 215, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.07.2004
Com. Reg. No.:	04-044396
Capital Investment / Paid-up Capital :	Rs. 20.769 Millions
CIN No.: [Company Identification No.]	U25209GJ2004PLC044396
TAN No.: [Tax Deduction & Collection Account No.]	SRTS05209B AHMS11761B
PAN No.: [Permanent Account No.]	AAICS5496D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Decorative Laminates.
No. of Employees :	120 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 550000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Company has incurred loss in the year 2012. However, trade relation are fair. Business is active. Payment terms are reported as slow but correct. The company can be considered for business dealing with some caution.

NOTES :

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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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. Alkesh Joshi
Designation :	Accounts Manager
Contact No.:	91-9376550700
Date :	09.08.2013

LOCATIONS

Registered Office/ Factory :	Block No.123, At Mahiyal, Taluka Talod, Sabarkantha – 383 215, Gujarat, India
Tel. No.:	91-2770-220300
Mobile No.:	91-9376550700 (Mr. Alkesh Joshi)
Fax No.:	91-2770-220500
E-Mail :	manish@siliconlam.com sterlinglam1@rediffmail.com alkeshjoshi30@yahoo.com
Website :	http://www.siliconlam.com
Location :	Owned
Branch Office :	9, Kamraj Road, K.K. Pudur, Coimbatore, Tamilnadu, India

DIRECTORS

As on: 29.09.2012

Name :	Mr. Amrutbhai Karsanbhai Patel
Designation :	Director
Address :	Opposite V.D. Mehta Petrol Pump, At Talod, District Sabarkantha – 383 215, Gujarat India
Date of Birth/Age :	23.07.1958
Date of Appointment :	30.09.2005
DIN No.:	00314335
Name :	Mr. Dharmeshbhai Mansukhbhai Patel
Designation :	Director
Address :	9, Parag Society, Near Mangalam Cinema, Odhav, Ahmedabad – 382 415, India
Date of Birth/Age :	01.03.1981
Date of Appointment :	01.07.2004
DIN No.:	00314086
Name :	Mr. Arvindbhai Vashrambhai Patel
Designation :	Director
Address :	Paras Society, Near GEB at Talod, District Sabarkantha – 383 215, Gujarat India
Date of Birth/Age :	23.09.1965
Date of Appointment :	30.09.2005
DIN No.:	00314312
Name :	Mr. Harshadbhai Valjibhai Patel
Designation :	Director
Address :	Opposite V.D. Mehta Petrol Pump, At Talod, District Sabarkantha – 383 215, Gujarat India
Date of Birth/Age :	10.10.1966
Date of Appointment :	01.07.2004
DIN No.:	00314137

KEY EXECUTIVES

Name :	Mr. Alkesh Joshi
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Shareholders details file attached.

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	4.95
Directors or relatives of directors	95.05
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Decorative Laminates.
Products:	Lamination Sheet
Imports :
Products :	v Base Paper
Countries :	v China v Germany
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit/ Depend

PRODUCTION STATUS As on (31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Laminate Sheets	Nos	N.A	600000	852905

GENERAL INFORMATION

Customers :

End Users

· Mahindra

· Bank of India

· Apollo Hospitals

· Ramoji

· MC Donald

· Punjab National Bank

· Tata Motors

· Jindal

· ICICI Bank

· Satyam

· State Bank of India

No. of Employees :

120 (Approximately)

Bankers :

v The Cosmos Co-operative Bank Limited, Odhav Branch, Vallabh Nagar Society, Near Punjab National Bank, Ahmedabad – 382 415, Gujarat, India

v Punjab National Bank, Odhav Branch, Odhav, Ahmedabad – 382 415, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long term borrowings
Cosmos Bank – Term loan 18073	30.917	14.451
Cosmos Bank – Term loan 18046	0.000	1.821
Cosmos Bank – Term loan 18023	0.000	1.350
Cosmos Bank – Car loan (Dzire)	0.000	0.105
HDFC Bank – Car loan (Liva)	0.335	0.000
HDFC Bank – Car loan Dzire)	0.000	0.027
Kotak Bank – Car loan (Jetta)	0.000	0.491
Short term borrowings
Cosmos Bank	87.591	85.849
Total	118.843	104.094
Note: The Term Loan are secured against 1st charge on Land, Building , Plant and Machinery of the company situated at S .No 127/1, 137/1 and Block No. 123 and 124 of mouje Mahiyal, Talod, District Sabarkantha. Said loan are also secured against personal guarantee of Directors and their relatives. There is no continuing default on the Balance sheet date in repayment of loan and interest. Vehicle Loan from Bank / Financial Institutions are secured against respective assets Financed. The said loan are secured by 1st charge on stock and Undisclosed Debtors bellowed 90 days of the Company and also secured against collateral securities like land, building etc of the Company and personal guarantee of the Directors and their Relatives. There has been no default in repayment of above loan or interest thereon at the end of the year.

Banking Relations :	--
Auditors :
Name :	Deepak R. Soni and Company Chartered Accountants
Address :	Opposite Old Swaminarayan Temple, Dr. Gandhi Road, Himatnagar - 383 001, Gujarat, India
PAN No.:	ACDPS9854R
Associates :	Silicon Jwel Industries Private Limited

CAPITAL STRUCTURE

As on: 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2076850	Equity Shares	Rs.10/- each	Rs. 20.769 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	20.769	20.769
(b) Reserves & Surplus	116.975	117.102
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	137.744	137.871
(3) Non-Current Liabilities
(a) long-term borrowings	64.862	40.105
(b) Deferred tax liabilities (Net)	2.932	0.951
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	67.794	41.056
(4) Current Liabilities
(a) Short term borrowings	87.591	85.849
(b) Trade payables	101.106	61.090
(c) Other current liabilities	20.081	49.411
(d) Short-term provisions	2.091	2.404
Total Current Liabilities (4)	210.869	198.754
TOTAL	416.407	377.681
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	123.593	110.184
(ii) Intangible Assets	0.166	0.142
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	5.000	8.122
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	1.418	1.068
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	130.177	119.516
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	108.205	77.861
(c) Trade receivables	172.457	169.394
(d) Cash and cash equivalents	1.457	2.900
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	4.111	8.010
Total Current Assets	286.230	258.165
TOTAL	416.407	377.681

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		20.769
2] Share Premium		0.000
3] Reserves & Surplus		115.640
4] (Accumulated Losses)		0.000
NETWORTH		136.409
LOAN FUNDS
1] Secured Loans		59.580
2] Unsecured Loans		20.473
TOTAL BORROWING		80.053
DEFERRED TAX LIABILITIES		0.000
TOTAL		216.462
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		64.505
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	75.274
	Sundry Debtors	131.359
	Cash & Bank Balances	3.102
	Other Current Assets	2.772
	Loans & Advances	4.052
Total Current Assets		216.559
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	61.702
	Other Current Liabilities	2.900
	Provisions
Total Current Liabilities		64.602
Net Current Assets		151.957
MISCELLANEOUS EXPENSES		0.000
TOTAL		216.462

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	355.481	378.261	257.069
		Other Income	2.013	0.867	0.375
		TOTAL (A)	357.494	379.128	257.444
Less	EXPENSES
		Cost of materials consumed	268.953	288.817
		Purchase of stock in trade	5.489	0.000
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(9.929)	(0.242)
		Employee benefit expenses	16.140	17.512
		Manufacturing Expenses	13.278	12.472
		Selling, Administration and Other expenses	24.665	32.731
		TOTAL (B)	318.596	351.290	235.132
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		38.898	27.838	22.312
Less	FINANCIAL EXPENSES (D)		21.587	13.981	9.673
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.311	13.857	12.639
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.020	10.942	8.978
	PROFIT BEFORE TAX (E-F) (G)		2.291	2.915	3.661
Less	TAX (H)		2.419	1.452	1.234
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(0.128)	1.463	2.427
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.485	0.022	2.595
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	0.000	5.000
	BALANCE CARRIED TO THE B/S		NA	1.485	0.022
	IMPORTS
		Raw Materials	NA	38.959	33.095
		Capital Goods	NA	18.483	9.356
	TOTAL IMPORTS		NA	57.442	42.451
	Earnings Per Share (Rs.)		(0.06)	0.70	--

Particulars	31.03.2013
Sales Turnover (Approximately)	355.400

The above information has been parted by Mr. Alkesh Joshi

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(0.03)	0.39	0.94
Net Profit Margin (PBT/Sales)	(%)	0.65	0.78	1.42
Return on Total Assets (PBT/Total Assets}	(%)	0.56	0.79	1.30
Return on Investment (ROI) (PBT/Networth)		0.01	0.02	0.02
Debt Equity Ratio (Total Debt/Networth)		1.11	0.91	0.59
Current Ratio (Current Asset/Current Liability)		1.36	1.30	3.35

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last four 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]	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

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS: NOT AVAILABLE

UNSECURED LOAN

(Rs. In Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
From Directors and Shareholders	21.614	19.459
Inter Corporate Deposit	11.996	2.401
Total	33.610	21.860

Note:

The registered office of the company has been shifted from Bhagvati Hardware, 28, Market Yard, Talod, Taluka Talod, Sabarkantha, Gujarat to the present address w.e.f. 10.02.2009.

FINANCIAL RESULT:

The company has achieved turnover of Rs. 355.481 Millions compare to previous year’s turnover of Rs. 378.261 Millions and has achieved profit (PBT) of Rs. 2.292 Millions after providing interest of Rs. 20.998 Millions and depreciation of Rs.15.020 Millions.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10079725	17/05/2011 *	259,200,000.00	THE COSMOS CO OPERATIVE BANK LIMITED	ODHAV BRANCH, 2 VALLABHNAGAR SOCIETY, ODHAV ROAD, AHMEDABAD, Gujarat - 382415, INDIA	B13878426

FIXED ASSETS:

v Land

v Factory Building

v Plant and Machinery

v Furniture and Fixtures

v Computers

v Office and Other Equipments

v 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 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 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. 61.11
UK Pound	1	Rs. 94.77
Euro	1	Rs. 81.54

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	DPH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	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		28

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.