MIRA INFORM REPORT

Report Date :

27.08.2014

IDENTIFICATION DETAILS

Name :	CENTURY TILES LIMITED
Registered Office :	Block No 208 and 210 Nr Sabardairy Talod Road, Gadhoda Ta Himatnagar, District Sabarkantha – 383001, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	14.11.2003
Com. Reg. No.:	04-043186
Capital Investment / Paid-up Capital :	Rs.70.000 Millions
CIN No.: [Company Identification No.]	U26933GJ2003PLC043186
PAN No.: [Permanent Account No.]	AACCC2531M
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Floor Tiles
No. of Employees :	Information declined by the management.

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 470000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company possesses an acceptable financial profile marked by adequate networth base comprising of low reserves, comfortable capital structure along with modest scale of operations and high working capital intensive operations. Management has withnessed an increase in its sales volume whereas has reported a declining profitability during FY13. The ratings also take into consideration the presence of the subject in highly competitive industry which is directly linked to the cyclical real estate sector. However, trade relations seem to be fair. Business is active. Payment terms are reported as usually correct. In view of experienced promoters, 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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Bank Facilities “BBB”
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	January 07, 2014

Rating Agency Name	CARE
Rating	Short Term Bank Facilities “A3”
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	January 07, 2014

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Bhikalal Patel
Designation :	Account Manager
Contact No.:	91-9879106405
Date :	25.08.2014

LOCATIONS

Registered Office :	Block No 208 and 210 Nr Sabardairy Talod Road, Gadhoda Ta Himatnagar, District Sabarkantha – 383001, Gujarat, India
Tel. No.:	91-2772-226454-55-56
Mobile No.:	Not Available
Fax No.:	91-2772-226457
E-Mail :	info@centurytiles.com
Factory :	Located at Himatnagar (near Ahmedabad) in Gujarat
Branches :	Located At · Delhi · Mumbai

DIRECTORS

AS ON 21.08.2013

Name :

Mr. Jayantibhai Ramabhai Patel

Designation :

Managing Director

Address :

At-Narsinhpura, Post- Kukadiya, Ta-i dar, Sabarkantha – 383410, Gujarat, India

Date of Birth/Age :

31.05.1959

Date of Appointment :

28.01.2008

DIN No. :

02160662

Name :

Mr. Kamlesh Amthabhiai Patel

Designation :

Director

Address :

At- Prathvipura, Po- Ankala, Ta-idar, Sabarkantha - 383410, Gujarat, India

Date of Birth/Age :

03.07.1970

Date of Appointment :

30.09.2010

DIN No. :

02132120

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	U28999GJ1990PTC014023	MURLIMANOHAR MACHINES PRIVATE LIMITED	Director	24/04/2008	24/04/2008	-	Active	NO
2	U26914GJ2007PLC052480	CENGRES TILES LIMITED	Director	01/04/2009	01/04/2009	23/06/2010	Active	NO
3	U26933GJ2003PLC043186	CENTURY TILES LIMITED	Director	30/09/2010	10/06/2010	-	Active	NO
4	U74999DL1990NPL038848	INDIAN COUNCIL OF CERAMIC TILES AND SANITARYWARE	Director	17/06/2010	17/06/2010	01/10/2011	Active	NO
5	U26914GJ2011PLC063746	CENTURY QUARTZ INDIA LIMITED	Managing director	01/02/2012	20/01/2011	-	Active	NO
6	U26960GJ2014PLC079324	ARISTON TILES LIMITED	Director	24/03/2014	24/03/2014	-	Active	NO

Name :

Mr. Mukundkumar Shankarbhai Patel

Designation :

Additional Director

Address :

At & Post-Pruthvipura, Post- Ankola, Ta-idar, Sabarkantha – 383430, Gujarat, India

Date of Birth/Age :

07.06.1984

Date of Appointment :

28.01.2008

DIN No. :

01537797

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	U52341GJ2007PTC051241	VENEX IMPEX PRIVATE LIMITED	Director	29/06/2007	29/06/2007	-	Active	NO
2	U26933GJ2003PLC043186	CENTURY TILES LIMITED	Additional director	28/01/2008	28/01/2008	13/06/2014	Active	NO
3	U26914GJ2011PLC063746	CENTURY QUARTZ INDIA LIMITED	Director	20/01/2011	20/01/2011	01/05/2014	Active	NO
4	U26960GJ2014PLC079324	ARISTON TILES LIMITED	Director	24/03/2014	24/03/2014	-	Active	NO

Name :

Mr. Vinodkumar Valjibhai Patel

Designation :

Director

Address :

Ganesh Ceramic, College Road, Motipura, Himatnagar, Sabarkantha – 383410, Gujarat, India

Date of Birth/Age :

01.06.1970

Date of Appointment :

25.06.2010

DIN No. :

03111353

KEY EXECUTIVES

Name :	Mr. Bhikalal Patel
Designation :	Account Manager

MAJOR SHAREHOLDERS

As on 21.08.2013

Share Holders File Attached

As on 21.08.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	42.86
Directors or relatives of Directors	20.21
Other top fifty shareholders	29.48
Others	7.45
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Floor Tiles

Products :

Item Code No. (ITC Code)	Product Description
69081010	Glazed Tiles

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

State Bank of India, Commercial branch, "paramsiddhi complex", Opp. V.s. hospital, Elissbridge,, Ahmedabad - 380006, Gujarat, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Term Loans from banks	9.444	0.000
SHORT TERM BORROWINGS
Loans repayable on demand from banks	88.937	91.644
Total	98.381	91.644

Banking Relations :	--
Auditors :
Name :	K.K Patel and Associates Chartered Accountants
Address :	F – 53, 2^nd Floor, Aaash Ganga Complex, Nr. S.T. Bust Stand, Himmatnagar – 383001, Gujarat, India
PAN No.:	AGPPP6687D

CAPITAL STRUCTURE

As on 21.08.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs.10/- each	Rs.70.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	70.000	70.000	70.000
(b) Reserves & Surplus	48.256	44.765	40.231
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	118.256	114.765	110.231
(3) Non-Current Liabilities
(a) long-term borrowings	21.714	9.949	22.578
(b) Deferred tax liabilities (Net)	5.714	5.723	6.676
(c) Other long term liabilities	0.000	0.000	54.225
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	27.428	15.672	83.479
(4) Current Liabilities
(a) Short term borrowings	88.937	92.374	82.448
(b) Trade payables	69.323	59.403	0.000
(c) Other current liabilities	18.221	9.220	5.410
(d) Short-term provisions	2.250	4.331	3.086
Total Current Liabilities (4)	178.731	165.328	90.944
TOTAL	324.415	295.765	284.654
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	89.830	83.158	94.584
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	10.876	10.189	11.793
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	100.706	93.347	106.377
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	108.078	104.512	92.322
(c) Trade receivables	109.449	89.565	79.726
(d) Cash and cash equivalents	0.593	1.643	2.716
(e) Short-term loans and advances	5.589	6.698	3.513
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	223.709	202.418	178.277
TOTAL	324.415	295.765	284.654

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012	31.03.2011
	SALES
	Income	522.192	484.209	398.558
	Other Income	2.680	3.479	2.051
	TOTAL (A)	524.872	487.688	400.609
Less	EXPENSES
	Cost of Materials Consumed	427.722	373.650	311.546
	Purchases of Stock-in-Trade	17.777	40.913	15.425
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(3.566)	(12.189)	(8.603)
	Employees benefits expense	14.736	15.660	15.374
	Other expenses	32.509	34.006	34.299
	TOTAL (B)	489.178	452.040	368.041
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	35.694	35.648	32.568
Less	FINANCIAL EXPENSES (D)	16.399	16.422	12.159
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	19.295	19.226	20.409
Less/ Add	DEPRECIATION/ AMORTISATION (F)	12.778	13.537	8.359
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	6.517	5.689	12.050
Less	TAX (H)	2.242	1.046	4.379
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	4.275	4.643	7.671
	Earnings / (Loss) Per Share (Rs.)	0.61	0.66	1.10

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.81	0.95	1.91
Net Profit Margin (PBT/Sales)	(%)	1.25	1.17	3.02
Return on Total Assets (PBT/Total Assets}	(%)	2.01	1.92	4.23
Return on Investment (ROI) (PBT/Networth)		0.06	0.05	0.11
Debt Equity Ratio (Total Debt /Networth)		0.94	0.89	0.95
Current Ratio (Current Asset/Current Liability)		1.25	1.22	1.96

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	70.000	70.000	70.000
Reserves & Surplus	40.231	44.765	48.256
Net worth	110.231	114.765	118.256
long-term borrowings	22.578	9.949	21.714
Short term borrowings	82.448	92.374	88.937
Total borrowings	105.026	102.323	110.651
Debt/Equity ratio	0.953	0.892	0.936

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	398.558	484.209	522.192
		21.490	7.844

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	398.558	484.209	522.192
Profit	7.671	4.643	4.275
	1.92%	0.96%	0.82%

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	No
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	Yes

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90104374	17/10/2012 *	141,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, "PARAMSIDDHI COMPLEX", OPP. V. S. HOSPITAL, ELISSBRIDGE, AHMEDABAD, Gujarat - 380006, INDIA	B60902491
2	90107153	17/10/2012 *	141,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, "PARAMSIDDHI COMPLEX", OPP. V. S. HOSPITAL, ELISSBRIDGE, AHMEDABAD, Gujarat - 380006, INDIA	B60898236

* Date of charge modification

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG TERM BORROWINGS
Loans and Advances from related parties	12.270	9.949
SHORT TERM BORROWINGS
Other Loans and Advances	0.000	0.730
Total	12.270	10.679

FIXED ASSETS

· Land

· Buildings

· Factory Building

· Factory Equipments

· Plant and Equipment

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] 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. 60.49
UK Pound	1	Rs. 100.32
Euro	1	Rs. 79.91

INFORMATION DETAILS

Information Gathered by :	HET
Analysis Done by :	SUB
Report Prepared by :	TRU

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	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--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.