MIRA INFORM REPORT

Report Date :

19.09.2013

IDENTIFICATION DETAILS

Name :	EVEREST COMPOSITES PRIVATE LIMITED
Registered Office :	4/B, Panchratna Building, Jetalpur Road, Vadodara – 390007, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.04.2008
Com. Reg. No.:	04-053456
Capital Investment / Paid-up Capital :	Rs. 1.000 Million
CIN No.: [Company Identification No.]	U25209GJ2008PTC053456
TAN No.: [Tax Deduction & Collection Account No.]	BRDE00379B
PAN No.: [Permanent Account No.]	AABCE9508P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Fiberglass and GRC Composite Products.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 57000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Company having higher debt component and it seems to have threatening to company. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some cautions.

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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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.

INFORMATION PARTED BY

Name :	Mr. Binish
Designation :	Manager
Contact No.:	91-9879542289
Date :	11.09.2013

LOCATIONS

Registered Office :	4/B, Panchratna Building, Jetalpur Road, Vadodara – 390007, Gujarat, India
Tel. No.:	91-2667-262011
Mobile No.:	91-9879542289 [Mr. Binish]
Fax No.:	91-2667-262011
E-Mail :	chandrajit@everestfibre.com
Website :	http://www.everestcomposites.com
Location :	Owned
Factory :	At Post Lamdapura, Near Lamdapura Bus Stop, Taluka Savli, District Vadodara – 391775, Gujarat, India
Tel. No.:	91-2667-262099
Fax No.:	91-2667-262011
E-Mail :	enquiry@everestfibre.com

DIRECTORS

AS ON 29.09.2012

Name :

Mr. Chandrajit Natvarlal Shah

Designation :

Director

Address :

2, Anuradha Society, Panigate, Vadodara - 390006, Gujarat, India

Date of Birth/Age :

06.01.1968

Date of Appointment :

01.04.2008

DIN No.:

01763632

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	U45200GJ2006PTC049155	COMPOSITE PROJECTS PRIVATE LIMITED	Director	26/09/2006	26/09/2006	27/12/2007	Strike off	NO
2	U25209GJ2008PTC053456	EVEREST COMPOSITES PRIVATE LIMITED	Director	01/04/2008	01/04/2008	-	Active	NO

Name :

Mr. Rajendra Natvarlal Shah

Designation :

Director

Address :

13/B, Nilamber Bungalow, Near Vasna Road, Vadodara - 390015, Gujarat, India

Date of Birth/Age :

14.11.1963

Date of Appointment :

01.04.2008

DIN No.:

01763726

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	Company/ LLP Status	Defaulting status
1	U25209GJ2008PTC053456	EVEREST COMPOSITES PRIVATE LIMITED	Director	01/04/2008	01/04/2008	Active	NO

KEY EXECUTIVES

Name :	Mr. Binish
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Chandrajit Natvarlal Shah	41000
Rajendra Natvarlal Shah	32000
Hetal C. Shah	9000
Sangita R. Shah	9000
Mithil R. Shah	9000
Total	100000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Fiberglass and GRC Composite Products.
Products/ Services :	· FRP Doors Swimming Pools FRP Manholes Roof Tiles Car Porch Coverings Industrial Roof Lights Roof Rain Water Gutter Sky Light Roofing System Grc Claddings Industrial Roof Ventilating System Turbo Roof Ventilating System Industrial Roof Rain Water Gutter System
Exports :
Products :	Finished Goods
Countries :	· UK USA Dubai Australia
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· Aaaka Plastics

Aadi Interiors

Aakruti Steel Traders

Aarvi Marketing Private Limited

Ambaji Glass

Arihant Fasteners

Ashland India Private Limited

Ashok Engineering Works

FRP Accessories

Geeta Enterprise

Gujarat Polymers

Himalaya Enterprise

Hind Hardware

Hindustan Mineral Products

Customers :

End Users

No. of Employees :

100 (Approximately)

Bankers :

· IndusInd Bank Limited, Ground Floor and 1st Floor, Gold Croft Vishwas Colony, Jetalpur Road, Baroda - 390005, Gujarat, India [Tel No.: 91-265-2332409]

Kotak Mahindra Bank Limited

Bank of Baroda

Facilities :

SECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
LONG TERM BORROWINGS
BOB-Honda City	0.073	0.200
BOB-Honda City (EFGI)	0.073	0.200
Kotak Mahindra Prime Limited - SKO	0.000	0.423
Kotak Mahindra Bank Limited – Bus	0.605	0.882
SHORT TERM BORROWINGS
Working Capital Loan from Indusind Bank	22.206	0.000
Total	22.957	1.705
LONG TERM BORROWINGS Bank of Baroda - Honda City Rs. 0.214 Million (PY Rs 0.342 Million) secured by way of Honda City Car of the Company. Repayable in 60 monthly installments of Rs 0.011 Million. Rate of Interest 10.25% Bank of Baroda - Honda City (EFGI) Rs. 0.214 Million (PY Rs 0.342 Million) secured by way of Honda City Car of the Company. Repayable in 60 monthly installments of Rs 0.011 Million. Rate of Interest 10.25% Kotak Mahindra Prime Limited - Skoda Rs.0.422 (PY Rs 1.106 Millions) secured by way of Skoda Car of the Company. Repayable in 36 monthly installments of Rs 0.063 Million. Kotak Mahindra Bank Limited - Bos Rs. 0.882 Million (PY Rs 1.124 Millions) secured by way of Bus of the Company. Repayable in 47 monthly installments of Rs 0.031 Million. Rate of Interest 13.65% SHORT TERM BORROWINGS Working capital loans are secured by Hypothecation of entire raw materials, stock-in-process, finished goods and Book-debts of the Company, both present and future.

Banking Relations :	--
Financial Institution :	· 3i Infotech Trusteeship Services Limited, 3rd to 6th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai - 400703, Maharashtra, India Kotak Mahindra Prime Limited
Auditors :
Name :	Shah Mehta and Bakshi Chartered Accountants
Address :	2nd Floor, Prassana House, Associated Society, Near Akota Stadium, Akota, Vadodara – 390020, Gujarat, India
Tel. No.:	91-265-2331060/ 2337727/ 2355435
Mobile No.:	91-9173202343
Fax No.:	91-265-2343227
E-Mail :	office@smb-ca.com
Income-tax PAN of auditor or auditor's firm :	AABFJ1738M
Other Parties which significantly influences/ are influenced by the Company (either individually or with) :	Advance Roof and Building Systems

CAPITAL STRUCTURE

AS ON 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
250,000	Equity Shares	Rs. 10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs. 10/- each	Rs. 1.000 Million

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs. 10/- each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs. 10/- each	Rs. 1.000 Million

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	1.000	1.000
(b) Reserves & Surplus	13.321	8.320
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	14.321	9.320
(3) Non-Current Liabilities
(a) long-term borrowings	38.727	43.275
(b) Deferred tax liabilities (Net)	0.827	0.587
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	39.554	43.862
(4) Current Liabilities
(a) Short term borrowings	22.206	0.000
(b) Trade payables	59.201	58.955
(c) Other current liabilities	2.799	3.281
(d) Short-term provisions	5.195	3.633
Total Current Liabilities (4)	89.401	65.869
TOTAL	143.276	119.051
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	13.664	14.171
(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	0.205
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	13.664	14.376
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	30.714	32.198
(c) Trade receivables	49.247	43.654
(d) Cash and cash equivalents	12.151	20.663
(e) Short-term loans and advances	8.543	7.374
(f) Other current assets	28.957	0.786
Total Current Assets	129.612	104.675
TOTAL	143.276	119.051

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.000
2] Share Application Money		3.828
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		4.828
LOAN FUNDS
1] Secured Loans		0.442
2] Unsecured Loans		16.278
TOTAL BORROWING		16.720
DEFERRED TAX LIABILITIES		0.000
TOTAL		21.548
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.453
Capital work-in-progress		0.000
INVESTMENT		0.025
DEFERRED TAX ASSETS		0.137
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	26.520
	Sundry Debtors	91.977
	Cash & Bank Balances	3.354
	Other Current Assets	0.000
	Loans & Advances	2.422
Total Current Assets		124.273
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	103.055
	Other Current Liabilities	1.871
	Provisions	2.452
Total Current Liabilities		107.378
Net Current Assets		16.895
MISCELLANEOUS EXPENSES		0.038
TOTAL		21.548

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	231.545	154.075	142.763
		Other Income	0.752	0.468	0.255
		TOTAL (A)	232.297	154.543	143.018
Less	EXPENSES
		Cost of material consumed	135.867	101.158
		Changes in inventories of FG, WIP, Stock in trade	12.181	(2.975)
		Employee Benefit Expenses	33.797	25.288
		Manufacturing and Other Expenses	37.233	21.002
		TOTAL (B)	219.078	144.473	135.722
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13.219	10.070	7.296
Less	FINANCIAL EXPENSES (D)		1.775	0.942	0.521
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.444	9.128	6.775
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.680	1.761	1.176
	PROFIT BEFORE TAX (E-F) (G)		7.764	7.367	5.599
Less	TAX (H)		2.764	2.875	1.771
	PROFIT AFTER TAX (G-H) (I)		5.000	4.492	3.828
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.320	3.828	0.000
	BALANCE CARRIED TO THE B/S		13.320	8.320	3.828
	Earnings Per Share (Rs.)		50.00	44.92	38.28

Particulars	31.03.2013
Sales Turnover (Approximately)	260.000

The above information has been parted by Mr. Binish [Manager]

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.15	2.91	2.68
Net Profit Margin (PBT/Sales)	(%)	3.35	4.78	3.92
Return on Total Assets (PBT/Total Assets}	(%)	5.42	6.20	4.35
Return on Investment (ROI) (PBT/Networth)		0.54	0.79	1.16
Debt Equity Ratio (Total Debt/Networth)		4.25	4.64	3.46
Current Ratio (Current Asset/Current Liability)		1.45	1.59	3.46

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	Yes
10]	Designation of contact person	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10303258	29/07/2011	20,000,000.00	INDUSIND BANK LIMITED	GROUND FLOOR AND 1ST FLOOR, GOLD CROFT VISHWAS COLONY, JETALPUR ROAD,, BARODA - 390005, GUJARAT, INDIA	B19205657

UNSECURED LOANS

UNSECURED LOANS	31.03.2012 (Rs. In Millions)	31.03.2011 (Rs. In Millions)
LONG-TERM BORROWINGS
From Directors	15.449	18.804
From Shareholders	12.527	12.766
From Others	10.000	10.000
Total	37.976	41.570

FIXED ASSETS:

· Building

Factory Building

Plant and Machinery

Office Equipment

Computer

Furniture and Fixture

Vehicles

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 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. 63.14
UK Pound	1	Rs. 100.48
Euro	1	Rs. 84.37

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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.