MIRA INFORM REPORT

Report No. :	326303
Report Date :	08.06.2015

IDENTIFICATION DETAILS

Name :	CENGRES TILES LIMITED (w.e.f. 28.09.2010)
Formerly Known As :	M. B. INDUSTRIES LIMITED
Registered Office :	D-401, Ganesh Meridian, Opposite Amiraj Farm, Near Gujarat High Court, S.G. Highway, Ahmedabad – 380 060, Gujarat
Tel. No.:	91-79-29298137
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	28.12.2007
Com. Reg. No.:	04-052480
Capital Investment / Paid-up Capital :	Rs.77.500 million
CIN No.: [Company Identification No.]	U26914GJ2007PLC052480
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAFCM3468G
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of different varieties of vitrified tiles.
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a company established in the year 2007 having satisfactory track. Company is a manufacturer of different varieties of vitrified tiles. In FY 14, company has recorded increase in its sales turnover as compare to FY 13. Rating also takes into consideration the above average financial risk profile backed by strong networth. Overall financials are seems to be decent. Trade relations are fair. Business is active. Payments are considered to be usually correct and as per commitments. In a view of strong financials, the company can be considered for normal business dealings with 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long terms bank facilities: BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	27.10.2014

Rating Agency Name	CARE
Rating	Short term bank facilities: A3
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	27.10.2014

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 31-03-2013.

INFORMATION PARTED BY

Name :	Mr. Parag Shah
Designation :	Senior Accountant
Contact No.:	91-9909990603
Date :	08.06.2015

LOCATIONS

Registered Office/ Corporate Office :	D-401, Ganesh Meridian, Opposite Amiraj Farm, Near Gujarat High Court, S.G. Highway, Ahmedabad – 380 060, Gujarat
Tel. No.:	91-79-29298137
Mobile No.:	91-9909990603 (Mr. Parag Shah)
Fax No.:	91-79-29298138
E-Mail :	info@cengrestiles.com support@cengrestiles.com
Website :	http://www.cengrestiles.com
Factory :	Survey No.1178/2, At and PO: Nandasan, Taluka: Kadi, District: Mehsana – 382 706, Gujarat, India
Tel. No.:	91-2764-308400
Fax No.:	91-2764-267195
Regional Office :	Located at: · Mumbai · Delhi · Chennai · Kolkata · Bangalore
Depots :	Located at: · Bangalore · Bhiwandi (Maharashtra) · Guwahati

DIRECTORS

AS ON 30.09.2014

Name :	Mr. Parth Rajesh Shah
Designation :	Director
Address :	9, Matru Pitru Asish Shrini Ketan Society, Shanti Nagar, Naranpura, Ahmedabad – 380 013, Gujarat, India
Date of Birth/Age :	16.05.1985
Date of Appointment :	15.06.2013
DIN No.:	02489335
Name :	Mr. Ashish Chandravadan Patel
Designation :	Whole-time Director
Address :	At Javangadh, PO Ganthiyol, Taluka – Idar, Javangadh, Sabarkantha – 3834 10, Gujarat, India
Date of Birth/Age :	04.07.1984
Date of Appointment :	15.06.2013
DIN No.:	05295019
PAN No.:	BABPP2721F
Name :	Mr. Rakeshkumar Kacharabhai Patel
Designation :	Additional Director
Address :	Rangpur, Prempur, Himatnagar, Sabarkantha – 383 001, Gujarat, India
Date of Appointment :	11.12.2014
DIN No.:	02944497

KEY EXECUTIVES

Name :	Mr. Parag Shah
Designation :	Senior Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Note:

Shareholding details file attached.

AS ON 30.09.2014

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	5.50
Directors or relatives of directors	15.59
Other top fifty shareholders	49.89
Others	29.02
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of different varieties of vitrified tiles.

Products :

Item Code No.	Product Description
69081090	Vitrified Tiles

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

• Tiles

Countries :

• Australia

Imports :

Products :

• Raw Materials

Countries :

• China
• Hong Kong

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2012):

Particulars	Licensed Capacity	Installed Capacity	Production
Vitrified Tiles	N.A	7000 Sq. Mtr. Per Day	1549512 Box

GENERAL INFORMATION

Suppliers :

Reference :

Uma Minerals, Kutch

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Payment Behaviour	Market Goodwill	Overall
Not Divulged	Not Divulged	Not Divulged

Remark:

Not Divulged

Customers :

Reference :

Gajanan Ceramics, Ahmedabad

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Product Quality	Delivery Behaviour	Overall
Not Divulged	Not Divulged	Not Divulged

Remark:

Not Divulged

No. of Employees :

400 (Approximately)

Bankers :

Banker Name	The Mehsana Urban Co-Operative Bank Limited
Branch Address	Urban Bank Road, Highway, Mehsana – 384 002, Gujarat, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

State Bank of India, Commercial Branch, "Paramsiddhi Complex", Opposite V.S. Hospital, Elissbridge, Ahmedabad – 380 006, Gujarat, India

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG-TERM BORROWINGS
Rupee term loans from banks	171.580	0.000
Other loans and advances (From Bank as Term Loan)	0.000	149.116
SHORT-TERM BORROWINGS
Working capital loans from banks	303.114	0.000
Other loans and advances (From Bank repayable on demand)	0.000	302.749
Total	474.694	451.865

Banking Relations :	--
Auditors :
Name :	K.K. Patel and Associates Chartered Accountants
Address :	F-51, 2^nd Floor, "Akash Ganga" Complex, Near S.T. Stand, Himatnagar – 383 001, Gujarat, India
PAN N Income-tax PAN of auditor or auditor's firm :	AGPPP6687D
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs.10/- each	Rs.80.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7750000	Equity Shares	Rs.10/- each	Rs.77.500 million

FINANCIAL DATA

[all figures are in Rupees Million]

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	77.500	77.500	65.000
(b) Reserves & Surplus	319.554	294.861	196.437
(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)	397.054	372.361	261.437
(3) Non-Current Liabilities
(a) Long-term borrowings	320.323	293.918	141.220
(b) Deferred tax liabilities (Net)	4.021	1.997	1.022
(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)	324.344	295.915	142.242
(4) Current Liabilities
(a) Short term borrowings	303.114	302.749	179.530
(b) Trade payables	265.412	275.797	119.145
(c) Other current liabilities	172.319	94.534	69.020
(d) Short-term provisions	34.463	57.583	45.000
Total Current Liabilities (4)	775.308	730.663	412.695
TOTAL	1496.706	1398.939	816.374
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	605.412	636.822	341.837
(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	1.675	0.650	0.584
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	607.087	637.472	342.421
(2) Current assets
(a) Current investments	2.756	2.928	2.593
(b) Inventories	468.203	444.544	247.250
(c) Trade receivables	354.511	223.360	171.248
(d) Cash and cash equivalents	18.237	21.947	29.539
(e) Short-term loans and advances	8.069	55.981	19.043
(f) Other current assets	37.843	12.707	4.280
Total Current Assets	889.619	761.467	473.953
TOTAL	1496.706	1398.939	816.374

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from Operations	1608.220	1177.086	1143.909
		Other Income	2.960	2.698	2.168
		TOTAL	1611.180	1179.784	1146.077
Less	EXPENSES
		Cost of Materials Consumed	1157.590	930.280	735.648
		Purchases of Stock-in-Trade	33.483	55.659	151.681
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	9.613	(172.075)	(53.114)
		Employees benefits expense	92.289	78.717	59.748
		Other expenses	104.657	91.151	85.390
		TOTAL	1397.632	983.732	979.353
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		213.548	196.052	166.724
Less	FINANCIAL EXPENSES		97.289	66.057	57.433
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION, DEPLETION AND AMORTISATION		116.259	129.995	109.291
Less/ Add	DEPRECIATION, DEPLETION & AMORTISATION		79.208	65.498	56.688
	PROFIT/ (LOSS) BEFORE TAX		37.051	64.497	52.603
Less	TAX		12.358	0.975	16.551
	PROFIT/ (LOSS) AFTER TAX		24.693	63.522	36.052
	IMPORTS
		Raw Materials	NA	NA	36.213
		Components and Stores parts	NA	NA	26.249
	TOTAL IMPORTS		NA	NA	62.462
	Earnings/ (Loss) Per Share (Rs.)		3.19	8.20	5.55

Particulars	31.03.2015
Sales Turnover	1970.000

Expected Sales (2015-2016): Rs.2500.000 million

The above information has been parted by Mr. Parag Shah (Senior Accountant).

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	1.54	5.40	3.15
Operating Profit Margin (PBIDT/Sales)	(%)	13.28	16.66	14.57
Return on Total Assets (PBT/Total Assets}	(%)	2.48	4.61	6.45
Return on Investment (ROI) (PBT/Networth)		0.09	0.17	0.20
Debt Equity Ratio (Total Debt /Networth)		1.57	1.60	1.23
Current Ratio (Current Asset/Current Liability)		1.15	1.04	1.15

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	65.000	77.500	77.500
Reserves & Surplus	196.437	294.861	319.554
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	261.437	372.361	397.054
Long-term borrowings	141.220	293.918	320.323
Short term borrowings	179.530	302.749	303.114
Total borrowings	320.750	596.667	623.437
Debt/Equity ratio	1.227	1.602	1.570

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Revenue from Operations	1143.909	1177.086	1608.220
		2.900	36.627

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Revenue from Operations	1143.909	1177.086	1608.220
Profit	36.052	63.522	24.693
	3.15%	5.40%	1.54%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	Yes
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last four years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

NOTE:

The registered office of the company has been shifted from Survey No.1178/2, At and Post: Nandasan, Taluka Kadi, District Mehsana, Nandasan – 382 706, Gujarat, India to the present address w.e.f. 18.10.2013.

UNSECURED LOAN

PARTICULARS	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
LONG-TERM BORROWINGS
Deposits from Others	148.743	144.802
Total	148.743	144.802

INDEX OF CHARGES

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10117535	26/12/2014 *	940,600,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, "PARAMSIDDHI COMPLEX", OPPOSITE V.S. HOSPITAL, ELISSBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	C40198483
2	10091873	26/12/2014 *	940,600,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, "PARAMSIDDHI COMPLEX", OPPOSITE V.S. HOSPITAL, ELISSBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	C40083172

* Date of charge modification

FIXED ASSETS

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Computer 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 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.63.90
UK Pound	1	Rs.97.98
Euro	1	Rs.71.82

INFORMATION DETAILS

Information Gathered by :	DIP
Analysis Done by :	KIN
Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILITY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	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		46

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.