MIRA INFORM REPORT

Report Date :

01.12.2014

IDENTIFICATION DETAILS

Name :	FEATHER TOUCH CERAMICS PRIVATE LIMITED
Registered Office :	A-146 G, Riico Ind. Area, Alwar, Bhiwadi – 301019
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	11.06.1987
Com. Reg. No.:	17-003999
Capital Investment / Paid-up Capital :	Rs. 2.400 Millions
CIN No.: [Company Identification No.]	U26933RJ1987PTC003999
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Divulged
PAN No.: [Permanent Account No.]	Not Divulged
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Bone China Crockery and Tableware.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 58000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating reflects moderate financial risk profile marked by continuous losses incurred by the company and also borrowings recorded by the company are huge and increasing during F.Y. 2014. However, trade relations are reported as fair. Business is active. Payments terms are reported to be slow but correct. The company can be considered for business dealings with some caution.

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

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

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. Tejpal Singh
Designation :	Director
Contact No.:	91-11-26513420
Date :	25.11.2014

LOCATIONS

Registered Office :	A-146 G, Riico Ind. Area, Alwar, Bhiwadi – 301019, Rajasthan, India
Tel. No.:	91-1493-220841,220542
Fax No.:	Not Available
Admin Office :	414, West Patel Nagar, New Delhi -110008, India
Tel. No.:	91-11-25888550,25888551
E-Mail :	mail@feathertouch.co.in

DIRECTORS

As on 30.09.2014

Name :

Mr. Surinder Pal Singh Sethi

Designation :

Directors

Address :

91-B, Eastern Avenues Sainik Farms, New Delhi – 110062, India

Date of Birth/Age :

15.02.1949

Date of Appointment :

11.06.1987

DIN No.:

01968064

Others 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	U26933RJ1987PTC003999	FEATHER TOUCH CERAMICS PRIVATE LIMITED	Managing director	11-06-87	11-06-87	-	Active	NO
2	U91990DL1956PLC001601	CHELMSFORD CLUB LTD	Director	29-09-12	29-09-12	-	Active	NO

Name :

Mr. Tejpal Singh Suri

Designation :

Director

Address :

182, Eastern Avenues, Sainik Farms, New Delhi – 110062, India

Date of Birth/Age :

02.12.1960

Date of Appointment :

01.04.2001

DIN No.:

01968071

Others 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	U74899DL1989PTC035964	FEATHER TOUCH DECORS PRIVATE LIMITED	Director	21-01-93	21-01-93	-	Active	NO
2	U26933RJ1987PTC003999	FEATHER TOUCH CERAMICS PRIVATE LIMITED	Director	01-04-01	01-04-01	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders	No. of Shares	% of Age
Surinder Pal Singh Sethi	10160	42.34
Surinder Pal Singh Sethi	3420	14.25
Supreet Singh	2625	10.44
Harpreet Singh	2484	10.35
Tejpal Singh Suri	4150	17.30

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.000
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of Bone China Crockery and Tableware
Products :	Not Divulged
Brand Names :	Not Divulged
Agencies Held :	Not Divulged
Exports :	Not Divulged
Imports :	Not Divulged
Terms :
Selling :	Not Divulged
Purchasing :	Not Divulged

As on 31.03.2014

PRODUCTION STATUS

Particulars	Unit	Actual Production
Opening and Closing Stocks of Goods Manufactured : Opening stock Closing stock	1300 895	2,660,510 2,085,112
Material consumed (Indigenous) Clay, chemicals etc.(MT)	895.240	17,039,298
Turnover of Goods Manufactured Bone China Crockery and Tableware	61420	80,488,367
Stores, Spare parts and Loose tools Consumed Indigenous	--	1,072,433

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Not Divulged

Bankers :

v Canara Bank, Sadar Bazar, Delhi – 110006, India

v HDFC Bank Limited, HDFC Bank Housesenapti Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Term Loans	14.605	0.000
Other Loans and Advance	0.000	0.000
SHORT TERM BORROWING
HDFC Bank – Cash Credit Limit (Secured against Hypothecation of Stocks, Book Debts and Fixed Assets of the company, ROI Base rate + 2.75%)	12.162	2.978
Total	26.767	2.978

Auditors :
Name :	N. Dhawan and Company Chartered Accountant
Address :	411, Bhera Enclave, Paschim Vihar, Outer Ring Road, Delhi – 110087, India
Tel. No.:	91-11-4234-2154
Mobile No.:	9313510400
E-Mail :	mail@ndhco.com
PAN No.:	AESPD3231Q
Memberships :	Not Divulged
Collaborators :	Not Divulged
Associates / Related Parties :	v Ferro and Singh Industrial Corporation

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
24000	Equity Shares	Rs.100/- each	Rs. 2.400 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23995	Equity Shares	Rs.100/- each	Rs. 2.400 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2.400	2.400	2.400
(b) Reserves & Surplus	17.843	19.302	21.163
(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)	20.243	21.702	23.563
(3) Non-Current Liabilities
(a) long-term borrowings	16.605	3.673	3.655
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	16.605	3.673	3.655
(4) Current Liabilities
(a) Short term borrowings	12.163	2.978	1.651
(b) Trade payables	6.798	3.032	4.491
(c) Other current liabilities	23.608	19.837	20.492
(d) Short-term provisions	0.000	0.000	0.765
Total Current Liabilities (4)	42.569	25.847	27.399
TOTAL	79.417	51.222	54.617
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	14.707	17.563	9.520
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	32.967	0.000	7.645
(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)	0.266	0.047	0.234
(d) Long-term Loan and Advances	0.914	0.888	0.888
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	48.854	18.498	18.287
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	10.424	10.520	8.976
(c) Trade receivables	13.052	16.502	18.572
(d) Cash and cash equivalents	1.601	1.865	2.048
(e) Short-term loans and advances	5.486	3.837	6.734
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	30.563	32.724	36.330
TOTAL	79.417	51.222	54.617

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	80.488	92.189	92.884
		Other Income	0.440	0.079	0.145
		TOTAL (A)	80.928	92.268	93.029
Less	EXPENSES
		Cost of Materials Consumed	17.039	14.088	14.386
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(0.852)	(0.215)	0.205
		Employees benefits expense	24.249	25.251	23.596
		Other expenses	37.677	51.108	50.670
		TOTAL (B)	78.113	90.232	88.857
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.815	2.036	4.172
Less	FINANCIAL EXPENSES (D)		2.004	0.896	0.252
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.811	1.140	3.920
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.488	2.813	1.761
	PROFIT BEFORE TAX (E-F) (G)		(1.677)	(1.673)	2.159
Less	TAX (H)		(0.218)	0.187	0.700
	PROFIT AFTER TAX (G-H) (I)		(1.459)	(1.860)	1.459
	TOTAL EARNINGS		15.282	15.548	10.232
	Earnings Per Share (Rs.)		(60.80)	(77.54)	60.82

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	(1.81)	(2.02)	1.57
Operating Profit Margin (PBITD/Sales)	(%)	3.50	2.21	4.49
Return on Total Assets (PBT/Total Assets}	(%)	(3.63)	(3.27)	4.62
Return on Investment (ROI) (PBT/Networth)		(0.08)	(0.08)	0.09
Debt Equity Ratio (Total Debt /Networth)		1.42	0.31	0.23
Current Ratio (Current Asset/Current Liability)		0.72	1.27	1.33

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	2.400	2.400	2.400
Reserves & Surplus	21.163	19.302	17.843
Net worth	23.563	21.702	20.243
long-term borrowings	3.655	3.673	16.605
Short term borrowings	1.651	2.978	12.163
Total borrowings	5.306	6.651	28.768
Debt/Equity ratio	0.225	0.306	1.421

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	92.884	92.189	80.488
		(0.748)	(12.692)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	92.884	92.189	80.488
Profit	1.459	(1.860)	(1.459)
	1.57%	(2.02%)	(1.81%)

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	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	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]	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

(Rs. in Millions)

Unsecured Loan	As on 31.03.2014	As on 31.03.2013
LONG TERM BORROWING
Loans and Advance taken from Directors, Relatives and Associates sh. G.S. Suri	2.000	0.105
Ferro and Singh Industrial Corporation	0.000	0.800
Loans and advance taken from others		2.768
Total	2.000	3.673

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10322299	11/07/2013 *	45,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	B83626424
2	10322296	13/03/2014 *	35,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	C00445411

* Date of charge modification

FIXED ASSETS

v Land

v Building

v Plant and Machinery

v Furniture and Fixtures

v Vehicles

v Computer and Printer

v Office 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 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.61.86
UK Pound	1	Rs.97.23
Euro	1	Rs.77.21

INFORMATION DETAILS

Information Gathered by :	PRT
Analysis Done by :	DIV
Report Prepared by :	ANU

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		28

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.