MIRA INFORM REPORT

Report Date :

19.03.2013

IDENTIFICATION DETAILS

Name :	ARDEX ENDURA (INDIA) PRIVATE LIMITED (w.e.f 10.01.2007)
Formerly Known As :	BAL BUILDING ADHESIVES (INDIA) PRIVATE LIMITED
Registered Office :	73/1B, Byregowda Industrial Estate, Srigandhanagar, Hegganahalli, Vishwaneedem, Post Peenya 2^nd Stage, Bangalore - 560 091, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	13.06.1997
Com. Reg. No.:	08-022383
Paid-Up Capital :	Rs. 130.000 Millions
CIN No.: [Company Identification No.]	U24233KA1997PTC022383
TAN No.: [Tax Deduction & Collection Account No.]	BLRB04011A
PAN No.: [Permanent Account No.]	AACB6072E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Marketing of Tile adhesives, Grouts, Flooring, Waterproofing and Allied Products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 1420000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. There appears some dip in the turnover during 2012 but the financial position of the company appears to be sound. Trade relations are reported as decent. Business is active. Payments terms are usually correct and as per commitments. The company can be considered 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	CRISIL
Rating	A2 [Bank Guarantee]
Rating Explanation	Strong degree of safety and low credit risk.
Date	16.10.2012

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 Office / Factory :	73/1B, Byregowda Industrial Estate, Srigandhanagar, Hegganahalli, Vishwaneedem, Post Peenya 2^nd Stage, Bangalore - 560 091, Karnataka, India
Tel. No.:	91-80-28360266/ 28361672/28361673
Fax No.:	91-80-28362078
E-Mail :	mariyappa.ramachandra@ardexendura.com simm.mark@ardexendura.com krcs@balendura.com customercare@ardexendura.com
Website :	www.ardex.de www.ardex.co.uk www.balendura.com

DIRECTORS

AS ON 24.07.2012

Name :	Mr. Gopinath Krishnan
Designation :	Dy. Managing Director and Finance Director
Address :	Flat 1001/2, Manasarovar, A Wing, Neelkanth Heights, Mumbai-400610. Maharashtra, India
Date of Birth/Age :	30.04.1965
Date of Appointment :	25.07.2007
DIN No.:	01543309
Name :	Mr. Vijay Aggarwal
Designation :	Director
Address :	Storing Diamond, 4^th Floor, 24 Mount Mary Road, Bandra West, Mumbai-400050, Maharashtra, India
Date of Birth/Age :	08.07.1968
Date of Appointment :	14.09.1998
DIN No.:	00515412
Name :	Mr. G S Patnaik
Designation :	Director
Address :	A-74, Moker Kundan Garden, Juhu Tara Road, Santacruz (West), Mumbai-400049, Maharashtra, India
Date of Birth/Age :	09.07.1960
Date of Appointment :	22.03.2005
DIN No.:	00535129
Name :	Mr. Aditya Bob Mahendru
Designation :	Director
Address :	93, Kherapati Colony, Gwaliaer -474002, Madhya Pradesh, India
Date of Birth/Age :	17.08.1978
Date of Appointment :	25.07.2007
DIN No.:	01624473
Name :	Mark John Simm
Designation :	Managing Director
Address :	Plot No, 92, Megnola Garden, 30^th K M Bangalore Mysore Highway, Syammangala Cross Bidadi Industrial Area, Bangalore-562109, Karnataka, India
Date of Birth/Age :	19.01.1953
Date of Appointment :	01.02.1998
DIN No.:	00497190
Name :	Mr. Dieter Axel Gundlach
Designation :	Director
Address :	Baumhofstr 37E, 44799 Bochum, Germany
Date of Birth/Age :	04.05.1948
Date of Appointment :	25.03.2002
DIN No.:	00497374
Name :	Manuel Frederik Wolfgang Baumann
Designation :	Alternate Director
Address :	401 Lavina Courts, 7^th Cross, 8^th Main, RMV Extension, Sadashivanagar, Bangalore – 560080, Karnataka, India
Date of Birth/Age :	23.01.1981
Date of Appointment :	19.05.2010
DIN No.:	03019440
Name :	Mark Charles Edgar Carpenter
Designation :	Director
Address :	9 Mellrose Drive Singapore 358506
Date of Birth/Age :	22.03.1963
Date of Appointment :	04.11.2010
DIN No.:	03281187
Name :	Mark Eslamlooy
Designation :	Director
Address :	IM Mailand 9, Bochum-44797
Date of Birth/Age :	14.08.1966
Date of Appointment :	16.03.2012
DIN No.:	05194893
Name :	Venugopal Madhavan Panicker
Designation :	Director
Address :	A801, Neel Sidhi Towers Sector 12, Plot 195, Vashi Navi, Mumbai – 400703, Maharashtra, India
Date of Birth/Age :	15.07.1964
Date of Appointment :	27.04.2010
DIN No.:	02975912

KEY EXECUTIVES

Name :	Mr. Kurubar Mariyappa Ramchandra
Designation :	Secretary
Address :	No. 130, Ramchandra Nagar, Nandini Lay out, IV Block, Bangalore-560096, Karnataka, India
Date of Birth/Age :	24.06.1961
Date of Appointment :	05.01.1998
Pan No.:	AALPR6341N

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 24.07.2012

Names of Shareholders	No. of Shares
Ardex Investments Mauritius Limited, Mauritius	6500000
Prism Cement Limited, India	6500000
TOTAL	13000000

AS ON 24.07.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	50.00
Bodies corporate	50.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Marketing of Tile adhesives, Grouts, Flooring, Waterproofing and Allied Products.

Products :

PRODUCT DESCRIPTION	ITC CODE
Tile Fixing Cement Adhesives And Allied Products	3214.90

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Installed Capacity*	Actual Production
Tile Fixing Adhesives and Grouts, Flooring Products and Water Proofing Products	MT	38000	29418.42**

NOTE:

*Installed capacity is as certified by the management and relied upon by the auditors, being technical matter. Bangalore Plant 18000 MT (Double Shift) and Savli Plant 20000 MT (Single Shift)

**Including outsourced products.

There is no Licensing requirement for company's products.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

ING Vysya Bank Limited, Chamber of Commerce Building, Kempegowda Road, Bangalore-560009, Karnataka, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Term Loans From Banks	6.190	0.812
Other Loan and Advances	1.963	0.000
Loans Repayable on Demand From Banks	34.108	20.619
TOTAL	42.261	21.431

Banking Relations :	--
Auditors :
Name :	N M Raiji and Company Chartered Accountant
Address :	6^th Floor, Universal Insurance Building, Pherozeshah Mehta Road, Fort, Mumbai – 400001, Maharashtra, India
PAN No:	AAAFN4217G
Fellow Subsidiaries :	· Ardex, Gmbh, Germany · Ardex UK Limited · Ardex Australia PTY Limited · Ardex Singapore PTE Limited · Ardex Middle East FZE · Ardex (Shanghai) Co Limited, China · Building Adhesives Limited, UK · Ardex Newzealand Limited · H and R Johnson (India) TBK Limited · TBK Deziner's Home Private Limited · TBK Krishna Tile Bath Kitchen Private Limited · TBK P B shah Tile Bath kitchen Private Limited · TBK Samiyaz Tile Bath Kitchen Private Limited · TBK Shri Ram Tile Bath Kitchen Private Limited · TBK Unique Jalgaon Tile Bath Kitchen Private Limited
Joint Venture :	· Ardex Investments Mauritius Limited · Prism Cement Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs.130.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs.130.000 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		130.000	130.000	130.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		226.947	155.547	67.308
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		356.947	285.547	197.308
LOAN FUNDS
1] Secured Loans		42.261	21.431	9.995
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		42.261	21.431	9.995
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		399.208	306.978	207.303
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		115.926	122.247	126.747
Capital work-in-progress		12.411	2.944	0.000
INVESTMENT		0.104	0.104	0.104
DEFERREX TAX ASSETS		4.939	3.992	4.012
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	129.551	85.731	62.809
	Sundry Debtors	100.517	81.258	73.105
	Cash & Bank Balances	141.583	119.393	63.484
	Other Current Assets	6.184	3.019	6.801
	Loans & Advances	26.133	18.011	5.058
Total Current Assets		403.968	307.412	211.257
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	76.102	68.292	71.503
	Other Current Liabilities	25.226	28.243	34.214
	Provisions	36.812	33.186	29.100
Total Current Liabilities		138.140	129.721	134.817
Net Current Assets		265.828	177.691	76.440
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		399.208	306.978	207.303

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	106.200	135.700	538.048
		Other Income	NA	NA	12.594
		TOTAL (A)	NA	NA	550.642
Less	EXPENSES
		Cost of Material			164.808
		Cost of Trading Goods			32.562
		Employees Cost	NA	NA	90.024
		Manufacturing, Administration and Selling Expenses			155.425
		TOTAL (B)	NA	NA	442.819
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)				107.823
Less	FINANCIAL EXPENSES (D)				3.134
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		119.958	144.951	104.689
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.668	9.188	9.174
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		106.290	135.763	95.515
Less	TAX (H)		34.890	47.523	33.657
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		71.400	88.240	61.858
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		155.547	67.307	5.449
	BALANCE CARRIED TO THE B/S		226.947	155.547	67.307
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	7.184	9.014
		Commission Earnings	NA	0.000	2.054
	TOTAL EARNINGS		NA	7.184	11.068
	IMPORTS
		Raw Materials	NA	46.404	27.379
		Trading Goods	NA	3.408	18.162
	TOTAL IMPORTS		NA	49.812	45.541
	Earnings / (Loss) Per Share (Rs.)		5.49	6.79	4.76

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	11.23
Net Profit Margin (PBT/Sales)	(%)	100.08	100.05	17.75
Return on Total Assets (PBT/Total Assets}	(%)	20.44	31.60	28.26
Return on Investment (ROI) (PBT/Networth)		0.30	0.47	48.41
Debt Equity Ratio (Total Debt/Networth)		0.12	0.07	0.05
Current Ratio (Current Asset/Current Liability)		2.92	2.37	1.57

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]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

BACKGROUND:

Subject is a joint venture between Ardex Beteiligungs GmbH with holding of 6,500,000 equity shares (50%) and Prism Cement Limited ( Formerly, H and R Johnson (India) Limited which is amalgamated with Prism Cement Limited ) with holding of 6,500,000 equity shares (50%). During the year 6500000 equity shares have been transferred by Ardex Investments Mauritius Limited, to Ardex Beteiligungs GmbH. The Company is engaged in the business of manufacturing and marketing of Tile adhesives, grouts, flooring, waterproofing and allied products.

OPERATIONS:

The Company sold 31,724 MT of adhesives and other products including liquids during the year. The production and sales are expected to continue to grow. The Company has commenced project planning activities in respect of proposed 3rd Plant with a capacity of 50,000 MT of adhesives, grouts and allied products near Bangalore, Karnataka. The Company has planned to set up its new 3 rd Plant near Bangalore to tap the emerging opportunities.

FINANCE:

The Company has adequate arrangement for working capital facilities with the Banks.

FIXED ASSETS:

· Land

· Plant and Machinery

· General

· Data Processing Equipments

· Lab Equipments

· Furniture and Fittings

· Office Equipments

· Vehicles

· Leasehold Improvements

· Roads and Colverts

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.
UK Pound	1	Rs.
Euro	1	Rs.

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	7
--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
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		53

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.