MIRA INFORM REPORT

REVISED REPORT

Report Date :

19.09.2014

IDENTIFICATION DETAILS

Name :	MEP-OLBO INDIA PRIVATE LIMITED
Registered Office :	Plot No. S10 to S15, Integrated Textiles Park, KIADB Industrial Area, Doddaballapur, Bangalore – 561203, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	05.12.2008
Com. Reg. No.:	08-048533
Capital Investment / Paid-up Capital :	Rs. 195.442 Millions
CIN No.: [Company Identification No.]	U51217KA2008FTC048533
IEC No.:	0708027628
PAN No.: [Permanent Account No.]	AAFCM8218C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Technical Textile.
No. of Employees :	45 (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 970000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a subsidiary of “MEP-OLBO GMBH”. It is an established company having moderate track record. The rating takes into consideration company’s moderate financial risk profile marked by continuous loss incurred from its operational activities and below average liquidity position of the company. However, trade relations are fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealing 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 PARTED BY

Name :	Mr. Gnanasekharan Karthikeyan
Designation :	Managing Director
Contact No.:	91-9844028965
Date :	17.09.2014

LOCATIONS

Registered Office/ Factory :	Plot No. S10 to S15, Integrated Textiles Park, KIADB Industrial Area, Doddaballapur, Bangalore – 561203, Karnataka, India
Tel. No. :	91-80-27630008
Mobile No. :	91-9844028965 (Gnanasekharan Karthikeyan)
Fax No. :	91-80-27630008
E-Mail :	karthick.gnanasekharan@mep-olbo.com
Website :	www.mep-olbo.de
Area :	8.7 Acres
Location :	Owned

DIRECTORS

As on 19.08.2011

Name :

Mr. Gnanasekharan Karthikeyan

Designation :

Managing Director

Address :

F-724, Sena Vihar, Kummanahalli Main Road, St.Thomas Town Post, Bangalore - 560043, Karnataka, India

Date of Birth/Age :

18.03.1964

Date of Appointment :

05.12.2008

DIN No. :

01539130

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	U26102KA1988PTC009182	ADEPT POLYMERS PRIVATE LIMITED	Director	10-06-1988	10-06-1988	13-03-2009	Active	NO
2	U51217KA2008FTC048533	MEP-OLBO INDIA PRIVATE LIMITED	Director	05-12-2008	05-12-2008	-	Active	NO
3	U17122KA2013FTC068260	SYNTEEN AND LUECKENHAUS INDIA PRIVATE LIMITED	Director	22-03-2013	22-03-2013	-	Active	NO

Name :

Harald Lothar Keuler

Designation :

Director

Address :

Buttlar Strasse 12, Eichenzell, 36124, Germany

Date of Birth/Age :

06.12.1958

Date of Appointment :

08.07.2011

DIN No. :

02394110

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	U51217KA2008FTC048533	MEP-OLBO INDIA PRIVATE LIMITED	Director	08-07-2011	05-12-2008	Active	NO

Name :

Richard Grobauer

Designation :

Additional Director

Address :

Zaehringerstrasse 6, Fulda, 36043, Germany

Date of Birth/Age :

17.01.1968

Date of Appointment :

08.07.2011

DIN No. :

03328039

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	U51217KA2008FTC048533	MEP-OLBO INDIA PRIVATE LIMITED	Director	08-07-2011	20-01-2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Mep-OLBO GmbH, Germany	19544225	100.00
Total	19544225	100.00

Allottee as on 28.09.2013

Names of Allottee	No. of Shares
Mep-OLBO GmbH, Germany	3822625
Total	3822625

As on 19.08.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Technical Textile.

Products :

Item Code No. (ITC Code)	Product Description
5407	Nylon Yarn

Imports :

Products :

Raw Material

Countries :

· China

European Countries

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

No. of Employees :

45 (Approximately)

Bankers :

· Deutsche Bank AG, Raheja Towers, 26-27, M.G. Road, Bangalore - 560001, Karnataka, India

Axis Bank Limited, No. 9, M.G. Road, Bangalore - 560001, Karnataka, India

Facilities :

Credit Limit: Rs. 420.000 Millions (From Deutsche Bank AG)

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Axis Bank 24207 against SBLC	197.799	13.215
Deutsche Bank a/c no. 2049484-00-0	0.000	57.367
Total	197.799	70.582

Banking Relations :	--
Auditors :
Name :	G. Anantha and Company Chartered Accountants
Address :	“Devi” Krupa, No. 685, 5^th Cross, Mahalakshmi Layout, Bangalore – 560086, Karnataka, India
Tel. No. :	91-80-65958982
Fax No. :	91-80-23191463
E-Mail :	gacb@gananthaandcocas.com ganantha_co@yahoo.com
Holding Company :	Mep-Olbo GMBH
Group Company :	· Mehler AG Mehler Engineered Products, Inc. IT Novum GMBH Segures Texties Mehler Engineered Products, (Suzhou)

CAPITAL STRUCTURE

After 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
38500000	Equity Shares	Rs.10/- each	Rs. 385.000 Millions

7Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
23366850	Equity Shares	Rs.10/- each	Rs. 233.669 Millions

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
38500000	Equity Shares	Rs.10/- each	Rs. 385.000 Millions

7Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19544225	Equity Shares	Rs.10/- each	Rs. 195.442 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	195.442	195.442	48.899
(b) Reserves & Surplus	47.221	144.407	(11.153)
(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)	242.663	339.849	37.746
(3) Non-Current Liabilities
(a) long-term borrowings	491.548	308.847	0.000
(b) Deferred tax liabilities (Net)	2.350	2.350	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)	493.898	311.197	0.000
(4) Current Liabilities
(a) Short term borrowings	197.799	116.677	0.000
(b) Trade payables	46.322	50.240	21.880
(c) Other current liabilities	2.230	1.469	0.283
(d) Short-term provisions	11.095	3.860	1.934
Total Current Liabilities (4)	257.446	172.246	24.097
TOTAL	994.007	823.292	61.843
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	322.610	333.244	0.038
(ii) Intangible Assets	0.253	0.090	0.000
(iii) Capital work-in-progress	471.879	154.086	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)	15.242	8.147	1.830
(d) Long-term Loan and Advances	0.019	0.418	0.000
(e) Other Non-current assets	0.025	0.025	0.025
Total Non-Current Assets	810.028	496.010	1.893
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	26.675	10.650	7.379
(c) Trade receivables	84.660	50.795	14.420
(d) Cash and cash equivalents	13.827	264.004	4.305
(e) Short-term loans and advances	58.303	1.521	33.846
(f) Other current assets	0.514	0.312	0.000
Total Current Assets	183.979	327.282	59.950
TOTAL	994.007	823.292	61.843

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	77.981	33.332	48.206
		Other Income	6.208	8.845	1.962
		TOTAL (A)	84.189	42.177	50.168
Less	EXPENSES
		Cost of Materials Consumed	31.906	1.190	47.482
		Purchase of Stock-in-trade	69.365	32.855	0.000
		Change in inventories of finished goods, WIP	(13.339)	(3.271)	(2.856)
		Other Manufacturing expenses	0.401	0.937	0.777
		Employee Benefits Expenses	14.116	9.432	1.042
		Other Expenses	35.413	34.998	10.706
		Exceptional Items	(2.686)	0.000	0.000
		TOTAL (B)	135.176	76.141	57.151
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		(50.987)	(33.964)	(6.983)
Less	FINANCIAL EXPENSES (D)		37.805	2.478	0.005
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(88.792)	(36.442)	(6.988)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.489	5.422	0.027
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(104.281)	(41.864)	(7.015)
Less	TAX (H)		(7.095)	(3.968)	(0.208)
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(97.186)	(37.896)	(6.807)
	EARNINGS IN FOREIGN CURRENCY		181.448	4.201	2.111
	Earnings / (Loss) Per Share (Rs.)		(4.97)	(1.94)	(1.39)

Particulars	31.03.2014
Sales Turnover (Approximately)	70.000

The above information has been parted by Mr. Gnanasekharan Karthikeyan (Managing Director).

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	(115.44)	(89.85)	(13.57)
Net Profit Margin (PBT/Sales)	(%)	(133.73)	(125.60)	(14.55)
Return on Total Assets (PBT/Total Assets}	(%)	(20.57)	(6.33)	(11.69)
Return on Investment (ROI) (PBT/Networth)		(0.43)	(0.12)	-0.19
Debt Equity Ratio (Total Debt/Networth)		2.84	1.25	0.00
Current Ratio (Current Asset/Current Liability)		0.71	1.90	2.49

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	48.899	195.442	195.442
Reserves & Surplus	(11.153)	144.407	47.221
Net worth	37.746	339.849	242.663
long-term borrowings	0.000	308.847	491.548
Short term borrowings	0.000	116.677	197.799
Total borrowings	0.000	425.524	689.347
Debt/Equity ratio	0.000	1.252	2.841

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	48.206	33.332	77.981
		(30.855)	133.952

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	48.206	33.332	77.981
Profit	(6.807)	(37.896)	(97.186)
	(14.12%)	(113.69%	(124.63%)

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	Yes
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%	-----
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)	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

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10308280	23/08/2011	14,000,000.00	AXIS BANK LIMITED	NO.9, M. G. ROAD, BANGALORE, KARNATAKA - 560001, INDIA	B21550561

UNSECURED LOANS

PARTICULAR	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG TERM BORROWINGS
MEP-OLBO GMBH ECB Loan	490.070	307.369
ECB Loan Interest Payable	1.478	1.478
SHORT TERM BORROWINGS
Loans from related parties	0.000	46.095
Total	491.548	354.942

CHANGE OF ADDRESS

The registered office of the company has been shifted from G-3, Prashant Niketan, Plot No.4, Prashanti Layout, ITPB Main Road, White Field, Bangalore – 560066, Karnataka, India to the present address w.e.f. 01.07.2011.

PERFORMANCE OF THE COMPANY

The company has achieved a total turnover of Rs. 77.981 Millions in the financial year 2012-13 from export of Software. The company hopes to increase its turnover in the subsequent years.

FIXED ASSETS

Tangible Assets

· Land

Building

Mobile

Computers

Car

Office Equipments

Office Interiors

Projector

UPS

Voltas Water Dispenser

Furniture and Fixtures

Intangible Assets

· Computer Software

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.61.06
UK Pound	1	Rs.99.55
Euro	1	Rs.78.57

INFORMATION DETAILS

Information Gathered by :	KAR
Analysis Done by :	HNA
Report Prepared by :	MRI

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	--
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--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.