MIRA INFORM REPORT

Report Date :

01.03.2013

IDENTIFICATION DETAILS

Name :	DURA-LINE INDIA PRIVATE LIMITED
Formerly Known As :	BHARTI DURA-LINE PRIVATE LIMITED
Registered Office :	A/10, Sankrit Bhawan, Aruna Asaf Ali Marg, Qutab Institutional Area, New Delhi – 110067
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.08.1996
Com. Reg. No.:	55-081248
Capital Investment / Paid-up Capital :	Rs.75.000 Millions
CIN No.: [Company Identification No.]	U25209DL1996PTC081248
TAN No.: [Tax Deduction & Collection Account No.]	DELD06373D
PAN No.: [Permanent Account No.]	AABCD4024B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Silicone HDPE Pipes, Ducts and Accessories
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 5800000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Latest financials i.e. 2011-12 are missing from the government department. From the previous year financial there seems some dip in the turnover and profitability of the company. However, general financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be 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 – 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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BBB+ (Long Term Rating)
Rating Explanation	Moderate credit quality it carry higher than average credit risk.
Date	December 2012

Rating Agency Name	ICRA
Rating	A2+ (Short Term Rating)
Rating Explanation	Strong degree of safety it carry low credit risk.
Date	December 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.

LOCATIONS

Registered/ Head Office :	A/10, Sankrit Bhawan, Aruna Asal Ali Marg, Qutab Institutional Area, New Delhi – 110007, India
Tel. No.:	91-11-51710470/ 43123400/ 51733606
Fax No.:	91-11-41716816/ 26516816
E-Mail :	duraline@duralineindia.com poonam@duralineindia.com mahendra@duraline.india.com mahendra@duraline.com mahendra.gambhir@duraline.india.com david.schaufele@duraline.com lkiyawat@duralineindia.com paresh.chari@duralineindia.com
Website :	http://www.duralineindia.com http://www.duraline.com http://www.duraline.in
Area :	5182 sq. ft.
Location :	Owned
Corporate Office 1:	Plot -19/22, Phase – 1 A, Sancoale Industrial Estate, Zuari Nagar, Sout Goa, India
Location :	Leased
Corporate Office 2 :	S-6, Green Park Extention, Near Uphaar Cinema, New Delhi - 110016, India
Tel. No.:	91-11-26533606
Fax No.:	91-11-26516816
Factory 1:	L 24 and 25, Verna Electronic City, Verna, Salcete, Goa - 403722, India
Tel. No.:	91-832-6693200/ 669320204
Fax No.:	91-832-6693201
Email :	works@duralineindiagoa.com academy@duralineindiagoa.com centre@duralineindiagoa.com
Location :	Leased
Factory 2:	S. P. 14 B, RIICO Industrial Area, Nimrana District Alwar - 301705 Rajasthan, India
Location :	Rented
Regional Office :	703, Centre Point, Andheri Kurla Road, J.B. Nagar, Andheri (East), Mumbai – 400059, Maharashtra, India
Tel No.:	91-22-66955315
Fax No.:	91-22-66955316
Email :	info@duralinemumbai.com
Overseas Office :	¯ 835, Innovation Drive, Knoxville, Tennessee, 37932-2563, USA Tel. No. 800-847-7661 1-865-218-3460 Fax. No. 1-865-218-3462 ¯ 804 S. 23^rd Street, Middlesboro, Kentucky 40965, USA ¯ 1284 E. Glendale Ave. Sparks, Nevada – 89341 ¯ Ave. 5 de Febrero, Norte No. 1309-B, Zona Industrial Carillo Puerto, 76130, Queretaro, Qro, Mexico Tel. No. 52-42-177 970 Fax. No. 52-42-177750 E-mail. elem@duralineqr.com.mx ¯ U Pisaku 1, 763 Tlumacov, Czech Republic Tel. No. 420-577-199 111 Fax. No. 420-577-199 10 E-mail. marketing@duraline.cz
Branch Office :	Located at: Mumbai Bangalore Hyderabad Kolkata Chennai

DIRECTORS

As on: 28.09.2012

Name :

Mr. Mahendra Kumar Gambhir

Designation :

Director

Address :

17, G/F, Empire Estate, Sultanpur, Gurgaon Road, New Delhi – 110030, India

Date of Birth/Age :

27.09.1955

Date of Appointment :

03.10.2006

DIN No.:

01273826

Name :

Mr. Abraham George

Designation :

Managing Director

Address :

Avabae, 14 Ferns City, Outer Ring Road, Marthahalli, Bangalore – 560037, Karnataka, India

Date of Birth/Age :

24.11.1959

Date of Appointment :

15.01.2013

DIN No.:

01644481

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	U29195KA1997PTC027954	SKF Technologies (India) Private Limited	Additional director	18/06/2007	18/06/2007	08/05/2008	Active	NO
2	U25209DL1996PTC081248	DURA-LINE INDIA PRIVATE LIMITED	Managing director	15/01/2013	15/01/2013	-	Active	NO

Name :

Mr. Paresh Chari

Designation :

Director

Address :

1012, Geltysvve, Drive Knoxville, Tennessee, USA 37922

Date of Birth/Age :

24.10.1951

Date of Appointment :

09.11.2005

DIN No.:

01383589

Name :

Mr. Wayne Thomas Byrne

Designation :

Director

Address :

14720 Ballantyne Country Club Drzue, Charlotte, NC 28277, USA

Date of Birth/Age :

05.12.1963

Date of Appointment :

18.12.2009

DIN No.:

02897443

Name :

Mr. Yogesh Sudhanshu Kumar

Designation :

Director

Address :

D-81, Tata Symphony, Old Saki Vihar Road, Chandivali, Mumbai – 400072, Maharashtra, India

Date of Birth/Age :

13.10.1954

Date of Appointment :

07.03.2011

DIN No.:

01489969

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U99999MH1998PTC115579	RELPOL PLASTICS PRODUCTS PRIVATE LIMITED	Director	29/09/2007	20/04/2007	15/02/2010	Active	NO
2	U25209DL1996PTC081248	DURA-LINE INDIA PRIVATE LIMITED	Director	7/3/2011	7/3/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
Duraline Int Inc. USA	7499998
Mahendra Kumar Gambhir	1
Total	7499999

Equity Shares Break – up

As on: 28.09.2012

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	99.90
Directors or relatives of directors	0.10
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Silicone HDPE Pipes, Ducts and Accessories

Products :

Products Description	Item Code No.
Silicone HDPE Telecom Ducts and Accessories	3917.21

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Corporation Bank, Industrial Financial Branch, 16/10, 1^st Floor, Main Arya Samaj Road, Karol Bagh, New Delhi – 110005, India

• State Bank of India,, Industrial Financial Branch, 14^th Floor, Jawahar Bhawan, 1 Tolstoy Marg, New Delhi – 110001, India

• IDBI Bank, Srifort Institutional Area, New Delhi – 110016, India

• Oriental Bank of Commerce, I.F.B., New Delhi – 110001, India

• Bank of India, Large Corporate Branch, PTI Building, 4, Parliament Street, New Delhi 110001, India

Facilities :

(Rs. In Millions)

Secured Loans	31.03.2011	31.03.2010
Working capital loans banks secured	167.219	129.076
Working capital loans others secured	270.441	66.461
Finance lease obligation long-term secured	0.000	4.372
Total	437.660	199.909

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountant
Address :	Building No.8, Tower B, 7th and 8th Floor, DLF Cyber City, Gurgaon – 122002, Haryana, India
PAN No.:	AAEFP3641G
Holding Company :	· Dura Line International Inc., USA
Ultimate Holding Company:	· Audax A-D Technologies Holdings, LLC

CAPITAL STRUCTURE

(AS ON 30.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7499999	Equity Shares	Rs.10/- each	Rs.75.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		75.000	75.000	75.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1373.435	1211.234	932.235
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1448.435	1286.234	1007.235
LOAN FUNDS
1] Secured Loans		437.660	199.909	300.667
2] Unsecured Loans		0.000	203.220	236.505
TOTAL BORROWING		437.660	403.129	537.172
DEFERRED TAX LIABILITIES		38.912	28.352	38.464
TOTAL		1925.007	1717.715	1582.871
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		477.100	503.973	460.094
Capital work-in-progress		5.751	3.424	9.765
INVESTMENT		113.590	18.626	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	603.858	545.427	449.642
	Sundry Debtors	844.471	918.460	948.288
	Cash & Bank Balances	5.143	65.758	120.163
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	174.641	144.738	125.794
Total Current Assets		1628.113	1674.383	1643.887
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	246.366	419.368	413.877
	Other Current Liabilities	27.541	40.779	72.372
	Provisions	25.640	22.544	44.626
Total Current Liabilities		299.547	482.691	530.875
Net Current Assets		1328.566	1191.692	1113.012
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1925.007	1717.715	1582.871

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3564.401	3583.830	4775.133
		Other Income		300.058	160.053
		TOTAL (A)	3564.401	3883.888	4935.186
Less	EXPENSES
		Raw Material Consumed		2394.514	3426.986
		Purchases made for re-sale		49.259	99.999
		Increase/(Decrease) in Finished Goods	3221.215	54.559	69.707
		Personnel Expenses		187.582	118.771
		Manufacturing, selling, Administrative and Other Expenses		673.193	600.634
		TOTAL (B)	3221.215	3359.107	4316.097
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		343.186	524.781	619.089
Less	FINANCIAL EXPENSES (D)		44.035	44.216	115.492
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		299.151	480.565	503.597
Less/ Add	DEPRECIATION/ AMORTISATION (F)		54.555	53.778	53.817
	PROFIT BEFORE TAX (E-F) (G)		244.596	426.787	449.780
Less	TAX (H)		82.395	147.788	162.234
	PROFIT AFTER TAX (G-H) (I)		162.201	278.999	287.546
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	932.235	644.689
	BALANCE CARRIED TO THE B/S		NA	1211.234	932.235
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	992.748	627.343
	TOTAL EARNINGS		NA	992.748	627.343
	IMPORTS
		Raw Materials	NA	907.962	278.258
		Stores & Spares	NA	1.186	4.655
		Capital Goods	NA	57.546	15.210
		Others	NA	1.129	29.724
	TOTAL IMPORTS		NA	967.823	327.847
	Earnings Per Share (Rs.)		21.63	37.20	38.34

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.55	7.18	5.83
Net Profit Margin (PBT/Sales)	(%)	NA	11.91	9.42
Return on Total Assets (PBT/Total Assets}	(%)	11.62	19.59	21.38
Return on Investment (ROI) (PBT/Networth)		0.17	0.33	0.44
Debt Equity Ratio (Total Debt/Networth)		0.30	0.31	0.53
Current Ratio (Current Asset/Current Liability)		5.44	3.47	3.09

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	Yes
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	No
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	Yes

NOTE:

The Registered Office of the company has been shifted from S-6, Green Park Extension, Near Uphaar Cinema, New Delhi – 110016 to the present address w.e.f. 17.07.2002.

UNSECURED LOANS

(Rs. In Millions)

Particular	31.03.2011	31.03.2010
Other external commercial borrowings unsecured	0.000	203.220
Total	0.000	203.220

OVERVIEW AND BUSINESS PROSPECTS

Due to low demand for Telecom Duct from domestic telecom companies as they have used their funds in other capital items like 3G Licences and overseas acquisitions, the turnover of domestic telecom companies is lower in the current year. During the year, the company brought more focus on infrastructure structure and this resulted to make over the short fall in sale to Domestic Telecom Companies. Due to cut throat completion in Domestic Market and Infrastructure being the new sector, the margins are adversely affected in the current year.

Company has also started manufacturing of Larger Dia Fluid Pipe and Gas Pipes. The Government has plans lay and connect Gas Pipes in various cities. Company has plans to manufacture Drip Emitters which is used in Micro Irrigation purposes.

Joint Venture Company in Oman has started operations in November 2010. With the full level operations in Joint Venture Company in the next year, company expects to grow exports in Gulf countries and North Africa as there will be big advantage in terms of freight and customs duty.

FIXED ASSETS:

· Land – Leasehold

· Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipment

· Computers

· Vehicles

· 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 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.53.77
UK Pound	1	Rs.81.57
Euro	1	Rs.70.68

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.