MIRA INFORM REPORT

Report Date :

21.05.2014

IDENTIFICATION DETAILS

Name :	LORENZO VITRIFIED TILES PRIVATE LIMITED
Registered Office :	8 - A, National Highway, Opposite Omkar Petroleum, Post Box No. 411, Lalpar, Morbi – 363642, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	31.10.2006
Com. Reg. No.:	04- 049290
Capital Investment / Paid-up Capital :	Rs. 42.316 Millions
CIN No.: [Company Identification No.]	U26919GJ2006PTC049290
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of floor tiles.
No. of Employees :	300 (Approximately)

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 1310000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating takes into consideration the intense competition in the tiles industry and vulnerability in raw material prices. However, trade relations are reported as fair. Business is active. Payment terms are reported to be 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, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating = B
Rating Explanation	High risk ok default
Date	06.12.2013

Rating Agency Name	CRISIL
Rating	Short term rating = A4
Rating Explanation	Minimal degree of safety. It carry very high credit risk.
Date	06.12.2013

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. Jagdish
Designation :	Manager
Contact No.:	91-9909977789
Date :	09.05.2014

Name :	Mr. Pratik
Designation :	Accounts Manager
Contact No.:	91-9227477719
Date :	09.05.2014

LOCATIONS

Registered Office/Factory :	8 - A, National Highway, Opposite Omkar Petroleum, Post Box No. 411, Lalpar, Morbi – 363642, Gujarat, India
Tel. No.:	91-2822-242424/242323/242121
Mobile No.:	91-9909977789 (Mr. Jagdish) 91-9227477719 (Mr. Pratik)
Fax No.:	91-2822-242322
E-Mail :	pratik@lorenzovitrified.com info@lorenzovitrified.com
Website :	http://www.lorenzovitrified.com

DIRECTORS

AS ON 31.08.2013

Name :

Mr. Babubhai Jivrajbhai Gadara

Designation :

Director

Address :

A/5, Bhagat Nagar Society, Katargam Road, Surat – 395004, Gujarat, India

Date of Birth/Age :

04.10.1957

Date of Appointment :

31.10.2006

DIN No. :

00734988

Name :

Mr. Mansukhlal Polabhai Koradiya

Designation :

Director

Address :

Vishwakarma Society, Morbi – 363641, Gujarat, India

Date of Birth/Age :

11.05.1965

Date of Appointment :

30.11.2011

DIN No. :

01687357

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	U26913GJ2007PTC051688	VICTORY FLOOR TILES PRIVATE LIMITED	Director	07/09/2007	07/09/2007	-	Active	NO
2	U21000GJ2009PTC058933	MILLENIUM PAPERS PRIVATE LIMITED	Director	10/04/2010	10/04/2010	-	Active	NO
3	U26933GJ2011PTC063633	MILLENNIUM VITRIFIED TILES PRIVATE LIMITED	Director	12/01/2011	12/01/2011	-	Active	NO
4	U26919GJ2006PTC049290	LORENZO VITRIFIED TILES PRIVATE LIMITED	Director	30/11/2011	30/11/2011	-	Active	NO
5	U26933GJ2005PTC047029	KORDIYA CERAMIC PRIVATE LIMITED	Director	08/12/2011	08/12/2011	-	Active	NO

Name :

Mr. Swintu Arvindbhai Mavani

Designation :

Director

Address :

08, Bhagat Nagar Society, Katargam Road, Surat – 395004, Gujarat, India

Date of Birth/Age :

31.10.1983

Date of Appointment :

30.12.2006

DIN No. :

00797690

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	U26919GJ2006PTC049290	LORENZO VITRIFIED TILES PRIVATE LIMITED	Director	30/12/2006	30/12/2006	-	Active	NO
2	U70102MH2012PTC237293	ANANTAJIT DEVLOPERS PRIVATE LIMITED	Director	14/10/2013	14/10/2013	-	Active	NO

Name :

Mr. Vasantbhai Haribhai Gajera

Designation :

Director

Address :

01, Vrushal Nagar Society, Near Katargam Police Station, Surat – 395004, Gujarat, India

Date of Birth/Age :

01.06.1958

Date of Appointment :

30.12.2006

DIN No. :

00791418

KEY EXECUTIVES

Name :	Mr. Jagdish
Designation :	Manager

Name :	Mr. Pratik
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.08.2013

Names of Shareholders	No. of Shares
Babubhai Jivrajbhai Gadara	433,700
Mansukhlal Polabhai Koradiya	5,000
Swintu Arvindbhai Mavani	742,000
Vasantbhai Haribhai Gajera	707,500

Date of Allottees 29.03.2014

Names of Allottees	No. of Shares
Arjandas Raysinhbhai	100
Bharat Rasiklal Shah	100
Champak Prabhulal Mehta	100
Daxaben Shashikant Bhai Kayastha	100
Dharmesh Ravindrabhai Kayastha – HUF	100
Dharmesh Ravindrabhai Kayastha	100
Dhirajlal Gokaldas Shah	100
Hitesh K Sanghvi	100
Hitesh Navinchandra Chalthanwala	100
Jayshri Kamleshbhai Sanghvi	100
Kakaladas Amthalal Sanghvi	100
Minaxiben Navinchandra Chalthanwala	100
Narendra Chandulal Shah	100
Prakash Thakordas Jariwala	100
Pravin Dhanjibhai Shah	100
Sangita Rajesh Shah	100
Sarad Dhirajlal Shah	100
Shashikant Bachubhai Kayastha	100
Shreeji Gems, India	100
Mahendra Babubhai Gadara	150
Total	2050

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	49.55
Directors or relatives of Directors	49.18
Other top fifty shareholders	1.27
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of floor tiles.
Exports :
Products :	Floor Tiles
Countries :	Saudi Arabia
Imports :
Products :	Raw Material and Machinery
Countries :	China
Terms :
Selling :	Advance Payment
Purchasing :	Advance Payment

GENERAL INFORMATION

Customers :	Wholesalers and Retailers
No. of Employees :	300 (Approximately)
Bankers :	State Bank of India, Morbi Branch, 8-A, National Highway, Lalpur, Morbi - 363641, Gujarat, India
Facilities :	Cash Credit = Rs. 220.000 Millions Term Loans = Rs. 170.000 Millions

Banking Relations :	--
Auditors :
Name :	S. SHARDA and ASSOCIATES
Address :	8 - 13, ASHAPURA TOWER, SANALA ROAD, MORBI - 363641, Gujarat, India
PAN No.:	AAAFZ3476D

CAPITAL STRUCTURE

AS ON 31.08.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs.130.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
42315750	Equity Shares	Rs.10/- each	Rs.42.316 Millions

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs.130.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4229525	Equity Shares	Rs.10/- each	Rs. 42.295 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	42.295	42.295	42.050
(b) Reserves & Surplus	284.628	275.200	247.575
(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)	326.923	317.495	289.625
(3) Non-Current Liabilities
(a) long-term borrowings	111.543	103.145	200.051
(b) Deferred tax liabilities (Net)	21.372	19.366	16.989
(c) Other long term liabilities	96.305	155.741	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	229.220	278.252	217.040
(4) Current Liabilities
(a) Short term borrowings	212.234	161.286	81.121
(b) Trade payables	80.180	79.325	65.081
(c) Other current liabilities	147.625	94.673	184.084
(d) Short-term provisions	2.002	4.906	0.087
Total Current Liabilities (4)	442.041	340.190	330.373
TOTAL	998.184	935.937	837.038
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	532.730	467.572	472.877
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	4.885	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	2.432	2.557	1.707
(e) Other Non-current assets	0.000	0.000	0.251
Total Non-Current Assets	540.047	470.129	474.835
(2) Current assets
(a) Current investments	0.000	0.000	0.634
(b) Inventories	211.999	228.834	114.504
(c) Trade receivables	170.352	152.208	155.298
(d) Cash and cash equivalents	48.749	68.203	57.108
(e) Short-term loans and advances	26.517	15.717	34.659
(f) Other current assets	0.520	0.846	0.000
Total Current Assets	458.137	465.808	362.203
TOTAL	998.184	935.937	837.038

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012
	SALES
	Revenue From Operations	873.198	849.960
	Other Income	66.379	4.877
	TOTAL (A)	939.577	854.837
Less	EXPENSES
	Cost of Materials Consumed	245.784	193.191
	Purchases of Stock-in-Trade	58.295	23.957
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(29.189)	(12.515)
	Employees benefits expense	36.296	35.439
	Other expenses	504.263	494.377
	TOTAL (B)	815.449	734.449
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	124.128	120.388
Less	FINANCIAL EXPENSES (D)	54.548	44.454
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	69.580	75.934
Less/ Add	DEPRECIATION/ AMORTISATION (F)	55.015	68.470
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	14.565	7.464
Less	TAX (I)	5.137	4.094
	PROFIT/ (LOSS) AFTER TAX (G-I) (J)	9.428	3.370
	Earnings / (Loss) Per Share (Rs.)	2.230	0.800

Particulars	31.03.2014
Sales Turnover (Approximately)	836.019

The above information has been parted by Mr. Pratik (Accounts Manager).

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.00	0.39	NA
Net Profit Margin (PBT/Sales)	(%)	1.66	0.87	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.46	0.79	NA
Return on Investment (ROI) (PBT/Networth)		4.46	2.35	NA
Debt Equity Ratio (Total Debt/Networth)		0.99	0.83	0.97
Current Ratio (Current Asset/Current Liability)		1.04	1.37	1.10

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)	(INR in Mlns.)
Share Capital	42.050	42.295	42.295
Reserves & Surplus	247.575	275.200	284.628
Share Application money pending allotment	0.000	0.000	0.000
Net worth	289.625	317.495	326.923
long-term borrowings	200.051	103.145	111.543
Short term borrowings	81.121	161.286	212.234
Total borrowings	281.172	264.431	323.777
Debt/Equity ratio	0.971	0.833	0.990

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)
Revenue From Operations	849.960	873.198
		2.734

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)
Revenue From Operations	849.960	873.198
Profit After Tax	3.370	9.428
	0.40%	1.08%

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 two 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	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

Note :

The registered office of the company has been shifted form C/O, Maruti Gold Industries, 8-A, National Highway, Lalpur, Morbi – 363642, Gujarat, India to the present address w.e.f. 20.08.2008.

VIEW INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10048293	16/04/2012 *	731,800,000.00	State Bank of India	8 - A, National Highway, Lalpar, Morbi - 363641, Gujarat, India	B39157284

* Date of charge modification

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.58.75
UK Pound	1	Rs.98.77
Euro	1	Rs.80.53

INFORMATION DETAILS

Information Gathered by :	JML
Analysis Done by :	DIV
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--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	YES
--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.