MIRA INFORM REPORT

Report Date :

14.06.2013

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) :	31.03.2012
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 (46)

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

Maximum Credit Limit :	USD 38000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears a dip in the net profitability during 2012. However, the company has achieved better growth in its sales. Trade relations are fair. Business is active. Payment terms are reported as usually correct. 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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/ Corporate Office :	Plot No.73, First Floor, New DLF Industrial Area, Faridabad – 121003, 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
Factory :	Village Sarai Khatela, Gudrana Road, Hodal, District Palwal – 121106, Haryana, India
Tel. No.:	91-129-4081412
Fax No.:	91-129-4113488
Area :	50000 sq. ft.
Location :	Owned

DIRECTORS

(AS ON 29.09.2012)

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.:	01449680
Voter ID :	JWP2292746
PAN No.:	AOKPK0230L
Name :	Mr. Maharaj Krishen Kakroo
Designation :	Additional Director
Address :	H. No.218, Sector-21-C, Vill. Fatehpur Chandela, The. Faridabad – 121001, Haryana, India
Date of Birth/Age :	08.10.1947
Date of Appointment :	20.11.2008
DIN No.:	02097313

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2012)

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

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
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

Licensed 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 HDFC Bank

v Jammu and Kashmir Bank

v Axis Bank

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
(Loans Against Fixed Assets)
J & K Bank Loan 55	0.023	0.076
J & K Bank Loan 56	0.134	0.334
J & K Bank Loan 116	0.557	0.000
HDFC Cruze loan A/c	0.735	0.929
HDFC Eeco Car loan	0.303	0.000
Axis Bank Beat Loan	0.293	0.000
Axis Bank Hyundai I-20 Loan	0.356	0.000
SIDBI Term Loan	1.390	2.351
Total	3.791	3.690

Short Term : payable within 1 year	1.688
Long Term : payable after 1 year	2.104

Banking Relations :	--
Auditors :
Name :	MLG Associates Chartered Accountants
Address :	House No. 63, Sector-15, Faridabad – 121007, Haryana, India
PAN No.:	AAGFM1817M

CAPITAL STRUCTURE

(AS ON 29.09.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
110000	Equity Shares	Rs.10/- each	Rs.1.100 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
110000	Equity Shares	Rs.10/- each	Rs.1.100 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	1.100	1.100
(b) Reserves & Surplus	8.441	6.961
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
(3) Non-current liabilities
(a) long-term borrowings	3.653	3.666
(b) Deferred tax liabilities (Net)	0.000	0.073
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
(4) Current liabilities
(a) Short term borrowings	1.688	1.408
(b) Trade payables	6.684	6.463
(c) Other current liabilities	1.723	1.910
(d) Short-term provisions	0.070	0.095
TOTAL	23.359	21.676
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	10.111	9.761
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.047	0.000
(d) Long-term Loan and Advances	0.109	0.109
(e) Other Non-current assets	0.000	0.000
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	2.855	2.490
(c) Trade receivables	6.235	3.805
(d) Cash and cash equivalents	3.722	5.313
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	0.280	0.198
TOTAL	23.359	21.676

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.100
2] Share Application Money		0.000
3] Reserves & Surplus		4.886
4] (Accumulated Losses)		0.000
NETWORTH		5.986
LOAN FUNDS
1] Secured Loans		4.535
2] Unsecured Loans		1.384
TOTAL BORROWING		5.919
DEFERRED TAX LIABILITIES		0.166
TOTAL		12.071
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.731
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.650
	Sundry Debtors	3.877
	Cash & Bank Balances	2.751
	Other Current Assets	1.006
	Loans & Advances	0.176
Total Current Assets		9.460
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	5.980
	Other Current Liabilities	1.142
	Provisions	0.001
Total Current Liabilities		7.123
Net Current Assets		2.337
MISCELLANEOUS EXPENSES		0.003
TOTAL		12.071

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	40.739	31.827	27.205
		Other Income	NA	0.859	0.090
		TOTAL (A)	NA	32.686	27.295
Less	EXPENSES
		TOTAL (B)	NA	29.704	22.639
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA		4.656
Less	FINANCIAL EXPENSES (D)		NA		0.521
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		NA		4.135
Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA		0.860
	PROFIT BEFORE TAX (E-F) (G)		2.260	2.982	3.275
Less	TAX (H)		NA	1.065	1.066
	PROFIT AFTER TAX (G-H) (I)		NA	1.917	2.209
	Earnings Per Share (Rs.)		NA	18.86	20.09

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	5.86	8.09
Net Profit Margin (PBT/Sales)	(%)	5.55	9.37	12.04
Return on Total Assets (PBT/Total Assets}	(%)	9.68	13.76	17.07
Return on Investment (ROI) (PBT/Networth)		0.24	0.37	0.55
Debt Equity Ratio (Total Debt/Networth)		0.56	0.63	0.99
Current Ratio (Current Asset/Current Liability)		1.29	1.20	1.33

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	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	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
Mr. Puneet Kakroo (Director)	0.919	0.754
Mr. M. K. Kakroo (Director)	0.630	0.630
Total	1.549	1.384

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 this year, the company has clocked a Turnover of Rs.40.739 Millions. The Company Generated EBDITA of 44.14 Lakhs. After the charge towards the Depreciation and Interest Cost, the Company generated net profit - (P.B.T.) for the year to the tune of Rs.2.260 Millions.

BUSINESS OUTLOOK FOR THE COMING YEAR:-

The last year was 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 profits was the higher administrative costs, and selling and distribution overheads. 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.

FORM 8

This form is for	Creation of charge
Corporate identity number of the company	U45209DL2007PTC166598
Name of the company	FIBREX CONSTRUCTION CHEMICALS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	BP-30 Maurya Enclave Pitam Pura New Delhi – 110034, India pkakroo@fibrexchem.com
Type of charge	Immovable Property Book Debts Movable Property Others: Pledge of FDRs with the SIDBI-FDBO
Particular of charge holder	Small Industries Development Bank of India NH-5- R/2, Neelam Badshah Khan Road, NIT, Faridabad – 121001, Haryana, India riship@sidbi.in
Nature of description of the instrument creating or modifying the charge	Agreement of term loan limit cum hypothecation Letter of intent declaration and undertaking in the matter of a mortgage by deposit of lease deeds Extension of pledge of FDRs.
Date of instrument Creating the charge	19/03/2013
Amount secured by the charge	Rs.4.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest 13% p.a. (fixed) payable monthly Terms of Repayment The loan shall be repayable in 54 monthly installments, consisting of first 53 installments of Rs 75,000/- each, followed by the last installment of Rs. 25,000/- commencing after 6 months from the date of first disbursement of the loan. The date of repayment of installments shall be 10th of each month. Margin Nil Extent and Operation of the charge First Charge by way of hypothecation of P and M to be acquired under PCS. Ext. of first charge by the way of hypo of all the movable/items of plant, machinery and other equipments acquired under previous assistance. Ext of first charge of immovable properties situated at movable District Palwal Bearing Khewat No.536/492 Khatoni No.614, Rect No.64, Killa N No.8 owned by the Company. First Charge by way of hypo on CA including BD, stocks etc. Pledge for FDRs with SIDBI-FDBO for value of Rs.1.066 Million Others Irrevocable and unconditional personal guarantee of Mr. Maharaj K Kakroo and Mr. Puneet Kakroo.
Short particulars of the property charged	First Charge by way of hypothecation of plant and machinery to be acquired by the company under PCS. Extension of first charge by the way of hypothecation of all the movable/items of plant, machinery &other equipments acquired under previous assistance to this company (Fibrex). 'Extension of first charge by way of equitable mortgage of immovable properties situated at immovable Mauza Khatela Sarai, Tehsil Hodal, District Palwal, bearing Khewat No.536/ 492 Khatoni No.614, Rect No. 64, Killa No.8 Min admeasuring 4 Kanals 4 Marals owned Fibrex Construction Chemicals Private Limited First Charge by way of hypothecation on CA including BD, stocks etc. Pledge for FDRs with SIDBI-FDBO for value of Rs.1.066 Millions.

FIXED ASSETS

v Plant and Machinery

v Electric Equipment

v Office Equipment

v Testing Equipments

v Tools and Dies

v Fire Safety Equipments

v Electrical Fittings

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 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.58.41
UK Pound	1	Rs.91.62
Euro	1	Rs.78.12

INFORMATION DETAILS

Report Prepared by :

NIT

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	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.