MIRA INFORM REPORT

Report Date :

25.03.2013

IDENTIFICATION DETAILS

Name :	PRS PERMACEL PRIVATE LIMITED (w.e.f.20.08.1999)
Formerly Known As :	PERMACEL PRIVATE LIMITED
Registered Office :	63, Bombay Samachar Marg, Sonawala Building, Fort, Mumbai – 400001, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.06.1999
Com. Reg. No.:	11-120475
Capital Investment / Paid-up Capital :	Rs. 9.000 Millions
CIN No.: [Company Identification No.]	U74999MH1999PTC120475
TAN No.: [Tax Deduction & Collection Account No.]	MUMP17560E
PAN No.: [Permanent Account No.]	AABCP4401A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Trading in Self Adhesive Tapes and Labels.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 604000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a part of Premchand Group. It is an established company having a satisfactory track record. There appears slight dip in the profitability. However, networth appears to be good. The subject gets strong support from its group companies. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for 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/ Corporate/ Branch Office 1 :	63, Bombay Samachar Marg, Sonawala Building, Fort, Mumbai – 400001, Maharashtra, India
Tel. No.:	91-22-66358333
Fax No.:	91-22-66358383
E-Mail :	contact@prs-permacel.com pshroff@prs-permacel.com vdedhia@prs-permacel.com
Website :	http://www.prs-permacel.com
Area :	3500 sq. ft.
Location :	Owned
Factory :	Mohile Village, Safed Pool, Andheri-Kurla Road, Mumbai – 400072, Maharashtra, India
Tel. No.:	91-22-28515052
Fax No.:	91-22-28510149
Sales and Marketing Office :	Plot No. PL-11/ 1, MIDC, Additional Ambernath Industrial Area, Ambernath (East), Thane - 421506, Maharashtra, India
Tel. No.:	91-251-3082500
Fax No.:	91-251-3082588
Branch Office 2:	Northern Region: 215, Suneja Tower, Plot No.7, District Centre, Janak Puri, New Delhi – 110058, India
Tel. No.:	91-11-47616666
Fax No.:	91-11-47616677
Branch Office 3:	Eastern Region: BJ/134, Sector-II, Ground Floor, Salt lake, Kolkata - 700091, West Bengal, India
Tel. No.:	91-33-23588561/ 62
Fax No.:	91-33-23588565
Branch Office 4:	Southern Region: Office No. 5, 2nd Floor, Ankur Plaza, 52, G.N. Chetty Road, T. Nagar, Chennai – 600017, Tamilnadu, India
Tel. No.:	91-44-28155551/ 28153096
Fax No.:	91-44-28153208

DIRECTORS

AS ON 06.09.2012

Name :	Mr. Nityanand Shekar Shenoy
Designation :	Managing director
Address :	3/11 Jagdish Kunj, Rafi Ahmed Kidwai Road, Wadala, Mumbai – 400031, Maharashtra, India
Date of Birth/Age :	30.01.1962
Qualification :	B. Tech (ME), MBA
Experience :	27 Years
Date of Appointment :	03.01.2011
DIN No.:	02624443
Name :	Mr. Sushil Kishore Premchand
Designation :	Director
Address :	Madhukunj 7 Narayan, Dhabolkar Road, Napean Sea Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	27.07.1945
Qualification :	Economics Graduate, FCA
Experience :	45 Years
Date of Appointment :	05.08.1999
DIN No.:	00571485
Name :	Mr. Haridas Domba Suvarna
Designation :	Director
Address :	Spring Leaf, 4^th Floor, Flat No. 402, 12^th Road, Khar [West], Mumbai – 400052, Maharashtra, India
Date of Birth/Age :	25.01.1959
Qualification :	Graduate
Date of Appointment :	05.08.1999
DIN No.:	00063192
Name :	Mr. Ramakrishna Rajasekharan Nair
Designation :	Director
Address :	785, Aavishkar Cross, IV Block , Koramnagala, Bangalore – 560034, Karnataka, India
Date of Birth/Age :	02.07.1939
Date of Appointment :	30.11.2006
DIN No.:	00202551
Name :	Mr. Viren Bhawanji Dedhia
Designation :	Whole-time director
Address :	507, Maheshwar Niketan, Colbad Naka, Thane – 400601, Maharashtra, India
Date of Birth/Age :	22.03.1961
Qualification :	B. Com, ACA
Experience :	26 Years
Date of Appointment :	23.03.2009
DIN No.:	02624416

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 06.09.2012

Names of Shareholders	No. of Shares	Percentage of Holding
Stock Traders Private Limited, India	458980	50.98
Preroy Holding AG, Switzerland	441000	49.00
Sushil Premchand	10	0.01
Haridas Suvarna	10	0.01
Total	900000	100.00

AS ON 06.09.2012

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]	49.00
Bodies corporate	50.99
Directors or relatives of directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Trading in Self Adhesive Tapes and Labels.

Products :

Item Code No.	Product Description
8546.00	Electrical Insulation Tapes
3919.00	Self Adhesive Tapes
7014.00	Glass Cloth Tapes

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity (note I, II and IV below)	Actual Production
Tapes	Various	3700000	1038383
Labels	Square Meters	1000000	741434

Note:

(i) Installed capacity is as certified by the management, however being a technical matter, this has not been verified by the auditors.

(ii) Installed capacity is on two shift - 300 working days per year basis.

(iii) Under the Industrial Policy Statement dated 24th July, 1991 and the notifications issued there under, no licensing is required for the Company's products.

(iv) Installed capacity as specified above is in square meters.

GENERAL INFORMATION

Customers :

Ø Tata Motors

Ø Fiat

Ø Bajaj

Ø Skoda Auto

Ø ABB

Ø SKF

Ø BHEL

Ø Honda

Ø Scomi

Ø Mahindra

Ø Ford

Ø Jet Airways

Ø Hyundai

Ø Kingfisher

Ø Siemens

Ø Suzuki

No. of Employees :

Not Available

Bankers :

Ø The Saraswat Co-operative Bank Limited, SME Nariman Point Branch, Mittal Court A Wing, 1st Floor, Vidhan Bhavan Marg, Nariman Point, Mumbai - 400021, Maharashtra, India

Ø Yes Bank Limited, 9th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
Term Loans	(Rs. In Millions)
Indian rupee loan from Banks	76.057	101.905
Finance lease obligation	5.489	2.119
Cash Credit from Banks	81.152	87.361
Total	162.698	191.385
Note: Indian rupee loan from Bank includes as below: Term loan of Rs. 19.441 Millions is repayable in 7 equal quarterly installments. Term loan of Rs. 46.573 Millions is repayable in 28 equal quarterly installments. Term loan of Rs. 12.230 Millions is repayable in 22 equal quarterly installments. Term loan of Rs. 47.918 Millions is repayable in 46 equal quarterly installments. All above loans carry interest rate of 14.50% as on 31.03.2012 and are secured by: Exclusive charge on the entire Current Assets and Fixed Assets both present and future. Pledge of 234000 shares of PRS Permacel held by Stock Traders Private Limited. Exclusive charge by way of Pledge of ‘Permacel Brand’. Cash Credit carries interest rate of 14% to 14.25% is repayable on demand and secured by charge on all current assets and fixed assets, land, pledge of part shares held by holding company and pledge of brand name.

Banking Relations :	--
Auditors :
Name :	S.V. Ghatalia and Associates Chartered Accountants
Address :	The Ruby, 16th Floor, 29 Senapati Bapat Marg, Mumbai – 400028., Maharashtra, India
Tel. No.:	91-22-61920000
Fax No.:	91-22-61921000
Income-tax PAN of auditor or auditor's firm :	AACFS6921Q
Holding Company :	Stock Traders Private Limited [U51900MH1937PTC002684]

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2,000,000	Equity Shares	Rs. 10/- each	Rs. 20.000 Millions
8,000,000	Preference Shares	Rs. 10/- each	Rs. 80.000 Millions
	Total		Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
900,000	Equity Shares	Rs. 10/- each	Rs. 9.000 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		9.000	9.000	9.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		141.928	139.331	131.727
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		150.928	148.331	140.727
LOAN FUNDS
1] Secured Loans		162.698	191.385	228.595
2] Unsecured Loans		140.096	140.096	140.096
TOTAL BORROWING		302.794	331.481	368.691
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		453.722	479.812	509.418
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		502.710	474.607	441.832
Capital work-in-progress		0.000	1.740	25.015
INVESTMENT		0.025	0.025	0.025
DEFERRED TAX ASSETS		3.766	4.139	14.454
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	77.483	70.864	69.618
	Sundry Debtors	191.467	192.463	178.734
	Cash & Bank Balances	0.357	0.249	3.405
	Other Current Assets	0.000	0.059	2.447
	Loans & Advances	30.712	22.794	28.813
Total Current Assets		300.019	286.429	283.017
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	129.144	116.410	113.704
	Other Current Liabilities	174.805	128.401	92.952
	Provisions	48.849	42.317	48.269
Total Current Liabilities		352.798	287.128	254.925
Net Current Assets		(52.779)	(0.699)	28.092
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		453.722	479.812	509.418

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Sales excluding Excise Duty	807.320	747.890	677.190
		Other Income	0.350	5.650	4.350
		TOTAL	807.670	753.540	681.540
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	N.A.	735.595	647.883
	PROFIT BEFORE TAX		N.A.	17.945	33.657
Less	TAX		N.A.	9.225	11.607
	PROFIT AFTER TAX		3.710	8.720	22.050
	IMPORTS
		Raw Materials		147.191	156.464
		Stores & Spares		2.856	1.125
		Capital Goods		0.000	0.088
	TOTAL IMPORTS		N.A.	150.047	157.677
	Earnings Per Share (Rs.)		4.12	9.69	24.50

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.46	1.16	3.24
Net Profit Margin (PBT/Sales)	(%)	N.A.	2.40	4.97
Return on Total Assets (PBT/Total Assets}	(%)	N.A.	2.36	4.64
Return on Investment (ROI) (PBT/Networth)		N.A.	0.12	0.24
Debt Equity Ratio (Total Debt/Networth)		2.01	2.23	2.62
Current Ratio (Current Asset/Current Liability)		0.85	1.00	1.11

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	Yes
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 LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Loan from related parties	140.096	140.096
Total	140.096	140.096

CORPORATE INFORMATION:

Subject was incorporated in India on June 22, 1999. The company is principally engaged in the manufacturing and trading in self adhesives tapes and labels. The company is a subsidiary of Stock Traders Private Limited.

Pursuant to an agreement for the purchase of the Permacel division of Johnson and Johnson Limited, dated August 10, 1999 between J and J and the company, the Permacel division was transferred to the company.

OPERATIONS:

The Company posted decent growth in Sales and Earnings for the year ended 31 March 2012. The aggregate of sales and other income of Rs. 807.670 Millions was achieved during the accounting year ended 31.03.2012, reflecting 7% growth over previous year. The Company made profit after tax of Rs. 3.710 Millions for the year ended 31.03.2012.

fixed assets:

Ø Building

Ø Electrical Installations

Ø Plant and machinery

Ø Computers

Ø Vehicles

Ø Office Equipments

Ø Computers

Ø Leasehold Land

Ø Laboratory 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 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. 54.34
UK Pound	1	Rs. 82.56
Euro	1	Rs. 70.10

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		42

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.