MIRA INFORM REPORT

Report Date :

25.03.2013

IDENTIFICATION DETAILS

Name :	DERIK MONOFIL PRIVATE LIMITED
Registered Office :	89 – C, 1^st Floor, PWD Office Road, Chettikulam, Nagercoil – 629002, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	28.04.1999
Com. Reg. No.:	18-042374
Capital Investment / Paid-up Capital :	Rs.14.936 Millions
CIN No.: [Company Identification No.]	U17111TN1999PTC042374
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing Wood Plastic Composite (WPC) Products
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (31)

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

Maximum Credit Limit :	USD 129800
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part of “Derik Group”. It is an established company having moderate track record. Even though the sales turnover of the company has increased, the net profitability has seen a dip during 2012. Profit margin appears to be low. Liquidity position is weak. However, trade relations are fair. Business is active. Payments terms are slow but correct. The company can be considered for business dealings 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.

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 Office :	89 – C, 1^st Floor, PWD Office Road, Chettikulam, Nagercoil, Kanyakumari – 629002, Tamilnadu, India
Tel. No.:	91-4652-261956
Fax No.:	Not Available
E-Mail :	dfishnet@gmail.com derik@sancharnet.in
Website :	www.derikmonofil.com

DIRECTORS

As on: 29.09.2012

Name :

Mr. Francis Fernando Joseph Stalin

Designation :

Managing Director

Address :

No. 19 B, Jawahar Street, Ramavarmapuram, Nagercoil, Kanyakumari – 629001, Tamilnadu, India

Date of Birth/Age :

10.05.1957

Date of Appointment :

28.04.1999

DIN No. :

00995749

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	U17111TN1999PTC042374	DERIK MONOFIL PRIVATE LIMITED	Managing director	28-04-99	28-04-99	-	Active	NO
2	U50101TN2005PTC056770	DERIK MOTORS PRIVATE LIMITED	Director	30-06-05	30-06-05	-	Active	NO
3	U51900TN2008PTC069092	DERIK MART PRIVATE LIMITED	Managing director	29-08-08	29-08-08	-	Active	NO

Name :

Mathiasgomez Puthans Kasthuri

Designation :

Director

Address :

No. 19 B, Jawahar Street, Ramavarmapuram, Nagercoil, – 629001, Kanyakumari, Tamilnadu, India

Date of Birth/Age :

31.03.1958

Date of Appointment :

28.04.1999

DIN No. :

02498545

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	U17111TN1999PTC042374	DERIK MONOFIL PRIVATE LIMITED	Director	28-04-99	28-04-99	-	Active	NO
2	U50101TN2005PTC056770	DERIK MOTORS PRIVATE LIMITED	Director	30-06-05	30-06-05	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
F. Stailn	47560
Puthans Kasthuri	45552
Derik Stalin	29384
Ronisha Stalin	26872
Total	149368

As on: 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing Wood Plastic Composite (WPC) Products

PRODUCTION STATUS AS ON (31.03.2011)

Particulars	UOM	Actual Production (Qty.)
Fishnet	Kgs	726543
Yarn	Kgs	785074

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Canara Bank, College Road, Nagercoil – 629001, Tamilnadu, India

· Axis Bank

· ICICI Bank Limited

· SBI Bank

Facilities :

Secured Loan	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Long Term Borrowing
Term Loans from Banks :
Axis Bank (A/c No.96837)	14.444	0.000
Canara Bank (A/c No.17928)	0.480	0.000
Canara Bank (A/c No.17930)	0.236	0.000
Short Term Borrowing
Loan repayable on demand :
From Banks :
Canara Bank O.C.C. A/c No.10321 (Secured by hypothecation of stock)	15.856	4.452
Total	31.016	4.452

NOTE :

Nature of Security	Term of Repayment
Axis Bank Term Loan A/c No.96837 is secured by specific charge on WPC Machinery acquired under the loan	Repayable in 60 monthly installments commencing from 21st February 2011. Last installment due on 21st February 2016. Rate of Interest 12.75% p.a. as at year end.
Canara Bank Term Loan A/c No.17928 is secured by specific Charge on EICHER Vehicle acquired under the loan.	Repayable in 60 monthly installments commencing from 10th February 2012. Last installment due on 10th February 2017. Rate of Interest 13.5% p.a. as at year end.
Canara Bank Term Loan A/c No.17930 is secured by specific Charge on Mahindra Mini Van acquired under the loan.	Repayable in 60 monthly installments commencing from 20th February 2012. Last installment due on 20th February 2017. Rate of Interest 13.5% p.a. as at year end.
Installments falling due in respect of all the above loans upto 31-3-2013 have been grouped under “Current maturities of long-term debts”

Banking Relations :	--
Auditors :
Name :	B. Thanu Pillai and Company Chartered Accountants
Address :	No. 18 (Upstairs), Malik Mahal, North Car Street, Nagercoil – 629001, Tamilnadu, India
PAN No. :	ADIPK5474F
Enterprises in which Key : Management Personnel Interested:	Derik Mart (Private) Limited Derik Motor (Private) Limited

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
220000	Equity Shares	Rs.100/- each	Rs.22.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
149368	Equity Shares	Rs.100/- each	Rs.14.936 Millions

Reconciliation of number of equity shares outstanding at the beginning and at the end of the year

Equity Shares	March 31, 2012
Number of equity shares outstanding at the beginning of the year	74684
Add : Number of Bonus shares issued during the year	74684
Number of equity shares outstanding at the end of the year	149368

The Company has only one class of equity shares having a par value of Rs.100/- per share. Each Shareholder is eligible for one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.

Details of share holding more than 5% shares in the company

Name of the shareholder	No. of Shares	% of holding in the class
F. Stalin	47560	31.84
Puthans Kasthuri	45552	30.50
Derik Stalin	29384	19.67
Ronisha Stalin	26872	19.67

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	14.936	7.468
(b) Reserves & Surplus	11.527	18.345
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	6.000	6.000
Total Shareholders’ Funds (1) + (2)	32.463	31.813
(3) Non-Current Liabilities
(a) long-term borrowings	15.160	0.000
(b) Deferred tax liabilities (Net)	2.047	1.825
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	17.207	1.825
(4) Current Liabilities
(a) Short term borrowings	17.347	4.452
(b) Trade payables	25.284	20.933
(c) Other current liabilities	44.953	52.536
(d) Short-term provisions	0.373	0.130
Total Current Liabilities (4)	87.957	78.051
TOTAL	137.627	111.689
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	70.204	23.635
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	5.348
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	4.069	1.321
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	74.273	30.304
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	46.912	37.126
(c) Trade receivables	7.110	20.449
(d) Cash and cash equivalents	3.039	22.187
(e) Short-term loans and advances	6.293	1.623
(f) Other current assets	0.000	0.000
Total Current Assets	63.354	81.385
TOTAL	137.627	111.689

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		7.468
2] Share Application Money		6.000
3] Reserves & Surplus		16.789
4] (Accumulated Losses)		0.000
NETWORTH		30.257
LOAN FUNDS
1] Secured Loans		4.926
2] Unsecured Loans		0.000
TOTAL BORROWING		4.926
DEFERRED TAX LIABILITIES		2.642
TOTAL		37.825
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		30.992
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories
	Sundry Debtors
	Cash & Bank Balances
	Other Current Assets
	Loans & Advances
Total Current Assets		35.293
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities
	Provisions
Total Current Liabilities		28.460
Net Current Assets		6.833
MISCELLANEOUS EXPENSES		0.000
TOTAL		37.825

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	242.127	200.134	157.418
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	229.954	191.707	143.940
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		12.173	8.427	13.478
Less/ Add	DEPRECIATION/ AMORTISATION		10.665	7.516	10.102
	PROFIT BEFORE TAX		1.508	0.911	3.376
Less	TAX		0.509	(0.646)	0.045
	PROFIT AFTER TAX		0.999	1.557	3.331
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on F.O.B. Basis	8.484	7.002	NA
	TOTAL EARNINGS		8.484	7.002	NA
	IMPORTS
		Raw Materials	27.836	28.933	NA
	TOTAL IMPORTS		27.836	28.933	NA
	Earnings Per Share (Rs.)		6.67	10.42	22.30

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.41	0.78	2.12
Return on Total Assets (PBT/Total Assets}	(%)	1.09	0.86	5.09
Return on Investment (ROI) (PBT/Networth)		0.05	0.03	0.11
Debt Equity Ratio (Total Debt/Networth)		1.00	0.14	0.16
Current Ratio (Current Asset/Current Liability)		0.72	1.04	0.81

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	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

UNSECURED LOAN:

Particulars	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Short Term Borrowing
Loans and Advances from related parties :
Derik Stalin (Director)	1.491	0.000
Total	1.491	0.000

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fittings

· Vehicles

· Office Equipments

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] 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.59.73
UK Pound	1	Rs.91.82
Euro	1	Rs.78.23

INFORMATION DETAILS

Report Prepared by :

ANK

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	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		31

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

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.