MIRA INFORM REPORT

Report Date :

31.01.2013

IDENTIFICATION DETAILS

Name :	HI-TECH FIBRE GLASS MATTINGS PRIVATE LIMITED
Registered Office :	3-6-361/19, Behind Lady HY-DRI Club, Bashherbagh, Hyderabad – 500029, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	08.06.1995
Com. Reg. No.:	01-020635
Capital Investment / Paid-up Capital :	Rs. 6.006 Millions
CIN No.: [Company Identification No.]	U26102AP1995PTC020635
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Fiberglass Stitch Bonded Mats.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 50000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

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 :	3-6-361/19, Behind Lady HY-DRI Club, Bashherbagh, Hyderabad – 500029, Andhra Pradesh, India
Tel. No.:	91-40-23227127
Fax No.:	91-40-23226067
E-Mail :	aliasghar_noble@hotmail.com
Website :	http://hitechfibreglass.in

DIRECTORS

As on: 28.09.2012

Name :	Ms. Lubna Hashmi
Designation :	Director
Address :	3-6-361/19, Street No. 20, Himayatnagar, Hyderabad – 500029, Andhra Pradesh, India
Date of Appointment :	06.06.1995
DIN No.:	00977903
Name :	Mr. Azam Mohiuddin
Designation :	Managing director
Address :	8-2-541/B5,Ghandipura Slum, Banjara Hills, Hyderabad – 500029, Andhra Pradesh, India
Date of Appointment :	08.06.1995
DIN No.:	02800630

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
Lubna Hashmi	126338
Azam Mohiuddin	170865
Hamid Mohiuddin	15600
Romana Azam	120655
Faqruunnisa Begum	8500
Aziz Ahmed	4100
Najma Nafees	25000
Anwari Begum	4500
Waheedunnisa Begum	9000
Mohd Zahid	4500
Mohd Hashim	4500
Meher Sultana	4980
H. A.Hashmi	44935
Farah Hashmi	10000
Tasnim Hamid	6695
Ansur Rehman	500
Arif Mohiuddin	39970
Total	600638

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Fiberglass Stitch Bonded Mats.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Canara Bank

· ICICI Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Others	0.049	0.049
Total	0.049	0.049

Banking Relations :	--
Auditors :
Name :	A. Ismail and Associates Chartered Accountant
Address :	04, 3rd Floor Lenaine Estate, Gunfoundry, Hyderabad – 500001, Andhra Pradesh, India
Tel. No.:	91-40-23387679
PAN.:	AAMPA4584B

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs. 7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
600638	Equity Shares	Rs.10/- each	Rs. 6.006 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		6.006	6.006	6.006
2] Share Application Money		0.398	0.398	0.398
3] Reserves & Surplus		6.877	6.221	1.808
4] (Accumulated Losses)		0.000	0.000	4.041
NETWORTH		13.281	12.625	12.253
LOAN FUNDS
1] Secured Loans		0.049	0.049	0.000
2] Unsecured Loans		0.000	0.000	0.049
TOTAL BORROWING		0.049	0.049	0.049
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		13.330	12.674	12.302
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.346	7.253	8.159
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.204	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
OTHER NON CURRENT ASSETS		0.074	0.074	0.074
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.829	1.079	0.000
	Sundry Debtors	2.204	3.344	1.071
	Cash & Bank Balances	1.695	1.008	1.268
	Other Current Assets	0.797	0.425	2.257
	Loans & Advances	0.010	0.010	0.000
Total Current Assets		7.535	5.866	4.596
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.013	0.149	0.502
	Other Current Liabilities	0.056	0.156
	Provisions	0.556	0.418	0.025
Total Current Liabilities		0.625	0.723	0.527
Net Current Assets		6.910	5.143	4.069
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		13.330	12.674	12.302

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	17.675	15.046	8.735
		Other Income	0.153	0.043	3.305
		TOTAL (A)	17.828	15.089	12.040
Less	EXPENSES
		Cost of materials consumed	9.740	8.053
		Changes in inventories of finished goods, work in progress and stock in trade	(0.166)	0.012
		Employee benefit expenses	1.808	1.888
		Other Expenses	4.246	3.239
		TOTAL (B)	15.628	13.192	10.925
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.200	1.897	(Including finance expenses)
Less	FINANCIAL EXPENSES (D)		0.038	0.018
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.162	1.879	1.115
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.906	0.906	0.903
	PROFIT BEFORE TAX (E-F) (G)		1.256	0.973	0.212
Less	TAX (H)		0.000	0.000	0.156
	PROFIT AFTER TAX (G-H) (I)		1.256	0.973	0.056
	EARNINGS IN FOREIGN CURRENCY		0.298	0.000	2.429
	IMPORTS
		Raw Materials	3.311	1.217	1.584
	TOTAL IMPORTS		3.311	1.217	1.584
	Earnings Per Share (Rs.)		2.09	0.16	0.09

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	7.05	6.45	0.46
Net Profit Margin (PBT/Sales)	(%)	7.11	6.47	2.43
Return on Total Assets (PBT/Total Assets}	(%)	9.05	7.42	1.66
Return on Investment (ROI) (PBT/Networth)		0.09	0.08	0.02
Debt Equity Ratio (Total Debt/Networth)		0.00	0.00	0.00
Current Ratio (Current Asset/Current Liability)		12.05	8.11	8.72

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	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	No
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

FINANCIAL RESULTS

Members please note that because of severe competition from China, both Export and Domestic sales have suffered the world over. However our company has still been making profit continuously for last 12 years.

During the current Financial Year Exports continue to suffer due to competition from China. Further from July 2010, the government has imposed 40% Anti Dumping Duty on Raw Material imports from China forcing us to use expensive indigenous material. This will also effect profitability next year.

FUTURE PROSPECTUS:

Job Work with multinational M/s. Owens-Corning is continuing, however without any exclusivity clause. Because of Ibis, The company has started marketing in domestic areas This has increased their domestic sales. Efforts are on to develop new customers.

Company products are being used as Import Substitute in Machine Moulding. Machine moulding applications are increasing very fast in India. Hi-Tech is the first company in India to start manufacture of Stitch Bonded Reinforcements and has good Brand Image

FIXED ASSETS

· Building

· Factory Building

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Motor 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 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. 53.57
UK Pound	1	Rs. 84.37
Euro	1	Rs. 72.23

INFORMATION DETAILS

Report Prepared by :

UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	4
--CREDIT LINES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.