MIRA INFORM REPORT

Report Date :

15.02.2014

IDENTIFICATION DETAILS

Name :	EFTEC (INDIA) PRIVATE LIMITED (w.e.f. 12.10.2012)
Formerly Known As :	EFTEC SHROFF (INDIA) PRIVATE LIMITED (w.e.f. 08.06.2012) EFTEC SHROFF (INDIA) LIMITED
Registered Office :	G-9, MIDC Ranjangaon, Pune-Ahmednagar Highway, Ranjangaon Shirur, Pune – 412210, Maharashtra
Country :	India
Financials (as on) :	31.12.2012
Date of Incorporation :	30.06.2000
Com. Reg. No.:	11-147685
Capital Investment / Paid-up Capital :	Rs. 15.000 Millions
CIN No.: [Company Identification No.]	U25200PN2000PTC147685
TAN No.: [Tax Deduction & Collection Account No.]	PNEE02545E
PAN No.: [Permanent Account No.]	AAACE7652D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Seller of bonding coating and sealing adhesives used in the automobile industry.
No. of Employees :	125 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 860000
Status :	Satsifctory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a wholly owned subsidiary of EFTEC Asia Pte. Limited. It is an established company having satisfactory track record. The management of the company has incurred a heavy loss due to increase in raw material prices and onetime extraordinary losses due to restructuring during 100% takeover of the company by the parent, further we note that capital structure and liquidity position of the company remains comfortable during December, 2012. Trade relations are fair. Business is active. Payment terms are reported as usually correct. Inview of Financial, technical and managerial support received from parent, the subject 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

The worst is over for India’s economy with gross domestic product likely to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s Analytics. Concerns over the rupee and current account deficit are under control, said the agency. Ratings firm Crisil has forecast 6 % growth for 2014/15 up from the estimated 4.8 % for 2013/14.  Total economic growth, infrastructure bottlenecks and lack of transparency and consistency in foreign direct investment policies seem to have taken a toll on India’s attractiveness as an investment destination, says an Ernst & Young survey.  Projects with FDI component fell 16.4 % across the globe in 2012 from the previous year.  The drop in India was steeper at 21 %. State run carrier Air India is doling out free tickets to its 24000 employees, even as it expects to incur a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn. 550000 number of jobs generated across India in 2013, a fall of 0.4 % as compared to with a year earlier. The National  Capital Region has a one-fourth share in total jobs created, according to a study by industry lobby group Assochem, Banks, real estate, automobile and telecommunications sectors are showing a rise of job creation. $ 805 mn investments by venture capital firms in India during 2013, registering a drop of about 18 % over the previous year. The Information Technology and IT-Enabled  Services Industry retained its status as the favourable venture capital investors in 2013. Pakistan has temporarily banned gold imports for the second time in six months, as it tries to stem smuggling into India. India’s import duty on gold is 10 % and curbs on purchases have dried up legal imports into what used to be the world’s biggest bullion buyers. The World Gold Council puts the amount smuggled into India at upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed bank deposits estimated to be about Rs 35000 mn be used for education and awareness among depositors.  According to the plan, deposits that have not been claimed for at least 10 years will be transferred to the scheme.

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long term fund based: “BBB+”
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	November, 2013

Rating Agency Name	ICRA
Rating	Short term non fund based: “A2”
Rating Explanation	Strong degee of safety and low credit risk.
Date	November, 2013

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. Milind Marathe
Designation :	Purchase Head
Contact No.:	91-21-38663400
Date :	12.02.2014

LOCATIONS

Registered Office / Factory 1:	G-9, MIDC Ranjangaon, Pune-Ahmednagar Highway, Ranjangaon Shirur, Pune – 412210, Maharashtra, Idnia
Tel. No. :	91-20-38663400
Fax No. :	91-20-38663401
E-Mail :	esil@eftecindia.com milind.marathe@eftecindia.com samir.naik@eftecindia.com
Website :	www.eftecindia.com
Location :	Owned
Factory 2:	No. E-65, Tarapur Industrial Area, MIDC, Boisar – 401506, Maharashtra, India
Tel No.:	91-2525-275709

DIRECTORS

As on 30.09.2013

Name :	Mr. Markus Johann Kremmel
Designation :	Director
Address :	Sankt-Antonius-Strabe 26A 6890 Lustenau / Austria
Date of Birth/Age :	09.10.1960
Date of Appointment :	31.03.2007
DIN No.:	01460881
Name :	Mr. Ulf Peter Niclas Jakobsson
Designation :	Director
Address :	Unit 1902, Building 4, Parkview Service Apartment, Lane 888 Changing Road, Changing DIS
Date of Birth/Age :	04.08.1965
Date of Appointment :	31.03.2007
DIN No.:	01461018
Name :	Mr. Robert August Schwagler
Designation :	Additional Director
Address :	Leeweid, 620, 9404, ROR Schacherberg, Switzerland
Date of Birth/Age :	01.08.1949
Date of Appointment :	18.04.2012
DIN No.:	05221064

KEY EXECUTIVES

Name :	Mr. Milind Marathe
Designation :	Purchase Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
EFTEC Asia Pte Limited, Singapore	735000	49.00
EFTEC AG, Switzerland	765000	51.00
Total	1500000	100.00

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of bonding coating and sealing adhesives used in the automobile industry.

Products :

Item Code No. (ITC Code)	Product Description
48114900	Sealing Adhesive

Imports :

Products :

Chemicals

Countries :

· Germany

Europe

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

125 (Approximately)

Bankers :

· ING Vysya Bank Limited, 103/104, 'A' Wing, I Floor, Floral Deck Plaza, MIDC Central Road, Andheri (East), Mumbai - 400093, Maharashtra, India

State Bank of India, Industrial Finance Branch, Andheri (East), Mumbai - 400069, Maharashtra, India

ICICI Bank Limited, Pune Branch, "A", Shangrila Gardens, III Floor, Bund Garden Road, Pune - 411001, Maharashtra, India

· Bank of Bardoa

Facilities :

SECURED LOANS	31.12.2012 (Rs. In Millions)	31.12.2011 (Rs. In Millions)
SHORT TERM BORROWINGS
Working capital loans from banks	98.823	80.849
Total	98.823	80.849

Banking Relations :	--
Auditors :
Name :	B K and Company Chartered Accountants
Address :	Pune – 411004, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAAFB0265E
Holding company:	EFTEC AG, Switzerland
Venturer in respect of which the Company is an associate/joint venture:	EFTEC Asia Pte Limited
Entities having common Control:	· EFTEC Thailand (Company) Limited EFTEC Nv EFTEC North America L.L.C EFTEC Engineering GMBH EFTEC Limited (w.e.f. January 12012)
Entities having significant influence:	· Punjab Chemical and Crop Protection Limited CIN No.: L24231CH1975PLC003603 L and L Products Shroff Private Limited CIN No.: U25190MH2010PTC209780

CAPITAL STRUCTURE

As on 31.12.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs. 15.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

NOTE: FINANCIAL DETAILS FILE ATTACHED.

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012
	(Rs. In Millions)	(Rs. In Millions)
Share Capital	15.000	15.000
Reserves & Surplus	316.646	200.302
Net worth	331.646	215.302
long-term borrowings	0.000	0.000
Short term borrowings	80.849	98.823
Total borrowings	80.849	98.823
Debt/Equity ratio	0.244	0.459

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2010	31.12.2011	31.12.2012
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	844.473	859.221	996.182
		1.746	15.940

NET PROFIT MARGIN

Net Profit Margin	31.12.2010	31.12.2011	31.12.2012
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Total Income	844.473	859.221	996.182
Profit	86.339	31.446	(109.291)
	10.22%	3.66%	(10.97%)

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 four years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	Yes
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	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	Yes

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10399451	24/09/2013 *	170,000,000.00	ICICI BANK LIMITED	PUNE BRANCH, "A", SHANGRILA GARDENS, III FLOOR, BUND GARDEN ROAD, PUNE - 411001, MAHARASHTRA, INDIA	B85873792

* Date of charge modification

CHANGE OF ADDRESS

The registered of the company hs been shifted from Plot No.645/646, Oberoi Chambers-II, 4th and 5th Floor, New Link Road, Andheri (West), Mumbai – 400053, Maharashtra, India to the present address w.e.f. 27.11.2012.

COMPANY BACKGROUND

Subject known as Eftec Shroff (India) Limited (the Company) was incorporated on 30 June 2000. The Company is in the business of manufacturing and sales of bonding coating and sealing adhesives used in the automobile industry.

FIXED ASSETS

· Land

Buildings

Plant and Equipment

Furniture and Fixtures

Vehicles

Motor Vehicles

Office Equipment

Computer Equipments

Other 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.62.27
UK Pound	1	Rs.103.47
Euro	1	Rs.84.87

INFORMATION DETAILS

Information Gathered by :	NYA
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.