MIRA INFORM REPORT

Report No. :	344953
Report Date :	15.10.2015

IDENTIFICATION DETAILS

Name :	MOMENTIVE PERFORMANCE MATERIALS (INDIA) PRIVATE LIMITED (w.e.f 29.12.2006)
Formerly Known As :	GE BAYER SILICONES (INDIA) PRIVATE LIMITED (w.e.f. 28.12.1998) GE SILICONES (INDIA) PRIVATE LIMITED
Registered Office :	Survey No. 09, Electronic City (West), Hosur Road, Bangalore - 560100, Karnataka
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	22.11.1995
Com. Reg. No.:	08-019244
Capital Investment / Paid-up Capital :	Rs. 286.290 Million
CIN No.: [Company Identification No.]	U24299KA1995PTC019244
IEC No.:	0795012659
TAN No.: [Tax Deduction & Collection Account No.]	BLRG00578E
PAN No.: [Permanent Account No.]	AAACG9931F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing (including manufacture through sub-contract) and Distribution of Silicone and Silicone Related Products.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 4209000
Status :	Satisfactory
Payment Behavior :	Usually Correct
Litigation :	Clear
Comments :	Subject is a part of Momentive Group which is engaged in manufacturing and trading of fluids and intermediaries, heat cured rubber, coatings and sealants made out of silicones and silicone based materials. The company has registered healthy scale of operations marked by decent revenue along with profitability margin of 4.39% in the FY -14. The company has comfortable capital structure and adequate networth position. Further, rating derives strength from company’s healthy market position, diversified product mix and long-term associations with reputed clients like Procter and Gamble Home Products Limited, BASF India Limited, Marico Limited and Kansai Nerolac Paints Limited. Trade relations are fair. Business is active. Payments are usually correct. The company 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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Rating “BBB”
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	August 2014

Rating Agency Name	ICRA
Rating	Short Term Rating “A2”
Rating Explanation	Strong degree of safety and low credit risk
Date	August 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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Arvind
Designation :	Company Secretary
Contact No.:	91-80-49352222

LOCATIONS

Registered Office :	Survey No. 09, Electronic City (West), Hosur Road, Bangalore - 560100, Karnataka, India
Tel. No.:	91-80-49352183 / 49352222
Fax No.:	91-80-49352233
E-Mail :	aravind.menon@momentive.com
Website :	www.momentive.com
Area :	2 Acre
Location :	Leased
Factory :	B-3, SIPCOT Industrial Growth Center, Oragadam, Seiperumbudur Taluk Kanchipuram, Chennai, Tamilnadu, India
Location :	Leased
Research and Development Centre :	The Millenia Tower B, 4^th Floor, Murphy Road Ulsoor, Bangalore - 560008, Karnataka, India
Sales office :	Located at : · Mumbai · New Delhi

DIRECTORS

AS ON 30.09.2014

Name :

Mr. Ramaswamy Muthuraman

Designation :

Director

Address :

No. 48/49 1A, Cross Banshankari 3 Stage, V Block, Bangalore – 560085, Karnataka, India

Date of Birth/Age :

02.06.1962

Date of Appointment :

07.07.2004

PAN No.:

AAGPH8403G

DIN No.:

00043521

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	U24299KA1995PTC019244	MOMENTIVE PERFORMANCE MATERIALS (INDIA) PRIVATE LIMITED	Director	07/07/2004	07/07/2004	Active	NO
2	U74120MH2011FTC213947	MOMENTIVE SPECIALTY CHEMICALS (MUMBAI) PRIVATE LIMITED	Director	22/08/2012	01/03/2011	Active	NO

Name :

Mr. Varghese Poulose Nalian

Designation :

Managing Director

Address :

No. 57, Phase - II, "Palm Meadows", Whitefield, Bangalore - 560066, Karnataka, India

Date of Birth/Age :

03.09.1966

Date of Appointment :

01.08.2004

PAN No.:

ABBPN4660K

DIN No.:

00045961

Name :

Mr. Robert Gnann

Designation :

Director

Address :

Buchenkamosweg 18, Bergisch, Gladbach 51427

Date of Birth/Age :

16.06.1954

Date of Appointment :

30.09.2011

DIN No.:

03320237

KEY EXECUTIVES

Name :	Mr. Aravind Menon
Designation :	Secretary
Address :	666, 13th Cross, 29th Main, BTM 2nd Stage, Bangalore - 560076, Karnataka, India
Date of Birth/Age :	05.10.1985
Date of Appointment :	26.03.2012
PAN No.:	AWHPM5985B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2014

Name of Shareholders	No. of Shares
Momentive Performance Materials GmbH, Germany	28629003
V P Nallian	1
R Muthuraman	1
TOTAL	28629005

AS ON 30.09.2014

Equity Shares Break Up	Percentage of holding
Foreign holdings( Foreign institutional investor(s), Foreign companies (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 :

Manufacturing (including manufacture through sub-contract) and Distribution of Silicone and Silicone Related Products.

Products :

ITC Code No.	Description Product or Services
391000	Silicone

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Silicon Product

Countries :

• Middle East Countries
• Asian Countries
• African Countries

Imports :

Products :

Raw Materials

Countries :

• Germany
• Thailand
• United States

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Reference :	Procter and Gamble Home Products Limited,
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

• Marico Limited
• Kansai Nerolac Paints Limited
• BASF India Limited

No. of Employees :

250 (Approximately)

Bankers :

• The Hongkong and Shanghai Banking Corporation Limited, No.7, MG Road, Bangalore - 560001, Karnataka, India

Facilities :

Secured Loan	Rs. In Million 31.03.2014	Rs. In Million 31.03.2013
Long Term Borrowings
Term Loans from Banks	0.000	47.500
Other loans and advances	7.728	12.417
Short Term Borrowings
Loans repayable on Demand	318.027	293.112
TOTAL	325.755	353.029

Auditors :
Name :	Lovelock and Lewes Chartered Accountant
Address :	5^th Floor, Tower D, The Mellenial and 2 Murohy Road, Ulsoor, Bangalore – 560008, Karnataka, India
PAN No.:	AAEFP3641G
Memberships :	Not Available
Collaborators :	Not Available
Ultimate Holding Company :	Momentive Performance Materials Inc., USA
Holding Company :	Momentive Performance Materials GmbH
Fellow Subsidiaries :	Momentive Performance Materials - Hong Kong Momentive Performance Materials - China Momentive Performance Materials, Japan Momentive Performance Materials, Shanghai Momentive Performance Materials, Thailand Momentive Performance Materials, USA Momentive Performance Material, Nantong Momentive Performance Materials, Singapore Momentive Performance Materials, Brazil Momentive Performance Materials, South Korea Momentive Performance Materials Quartz GmbH, Germany Momentive Specialty Chemicals
	¨
Other related party :	Momentive Performance Materials (India) Private Limited Superannuation Fund, India

CAPITAL STRUCTURE

AS ON 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs. 500.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
28629005	Equity Shares	Rs.10/- each	Rs. 286.290 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	286.290	286.290	286.290
(b) Reserves & Surplus	1186.978	1014.769	885.729
(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)	1473.268	1301.059	1172.019
(3) Non-Current Liabilities
(a) long-term borrowings	184.743	220.043	369.192
(b) Deferred tax liabilities (Net)	35.957	29.237	22.053
(c) Other long term liabilities	26.452	13.850	10.706
(d) long-term provisions	37.504	29.502	13.914
Total Non-current Liabilities (3)	284.656	292.632	415.865
(4) Current Liabilities
(a) Short term borrowings	318.027	293.112	229.005
(b) Trade payables	723.466	625.795	360.537
(c) Other current liabilities	280.192	323.644	214.101
(d) Short-term provisions	67.048	5.549	46.118
Total Current Liabilities (4)	1388.733	1248.100	849.761
TOTAL	3146.657	2841.791	2437.645
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1039.515	1123.476	784.181
(ii) Intangible Assets	0.875	2.468	4.113
(iii) Capital work-in-progress	46.176	3.071	193.187
(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	131.653	101.520	210.080
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1218.219	1230.535	1191.561
(2) Current assets
(a) Current investments	644.764	0.000	0.000
(b) Inventories	821.796	457.772	468.550
(c) Trade receivables	248.808	785.721	522.910
(d) Cash and cash equivalents	194.172	249.378	177.430
(e) Short-term loans and advances	18.898	108.781	71.305
(f) Other current assets	0.000	9.604	5.889
Total Current Assets	1928.438	1611.256	1246.084
TOTAL	3146.657	2841.791	2437.645

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2014	31.03.2013	31.03.2012
	SALES
	Income (Gross)	3926.500	3436.500	2808.100
	Other Income	NA	NA	NA
	TOTAL	NA	NA	NA
Less	EXPENSES	NA	NA	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	408.400	324.400	285.300
Less/ Add	DEPRECIATION/ AMORTISATION	113.700	120.800	45.800
	PROFIT/ (LOSS) BEFORE TAX	294.700	203.600	239.500
Less	TAX	122.500	74.600	84.200
	PROFIT/ (LOSS) AFTER TAX	172.200	129.000	155.300
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	816.600	687.600	532.300
	Balance Carried to the B/S	988.800	816.600	687.600
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	670.456	417.821	231.786
	IMPORTS
	Raw Materials	807.352	446.894	415.917
	Earnings / (Loss) Per Share (Rs.)	6.01	4.51	5.42

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	158.509	235.554	131.068
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operations	208.109	418.913	23.710

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT/Sales)	(%)	4.39	3.75	5.53
Return on Total Assets (PBT/Total Assets}	(%)	9.50	7.17	10.67
Return on Investment (ROI) (PBT/Networth)		0.20	0.16	0.20
Debt Equity Ratio (Total Debt /Networth)		0.45	0.58	0.62
Current Ratio (Current Asset/Current Liability)		1.39	1.29	1.47

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	286.290	286.290	286.290
Reserves & Surplus	885.729	1014.769	1186.978
Net worth	1172.019	1301.059	1473.268
long-term borrowings	369.192	220.043	184.743
Short term borrowings	229.005	293.112	318.027
Current maturities of long-term debts	131.068	235.554	158.509
Total borrowings	729.265	748.709	661.279
Debt/Equity ratio	0.622	0.575	0.449

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)
Sales (Gross)	2808.100	3436.500	3926.500
		22.378	14.259

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales (Gross)	2808.100	3436.500	3926.500
Profit	155.300	129.000	172.200
	5.53%	3.75%	4.39%

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	Yes
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	Yes
18]	Major suppliers	No
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 three years	Yes
27]	Reasons for variation <> 20%	--
28]	Estimation for coming financial year	No
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	Yes
35]	Negative Reporting by Auditors in the Annual Report	No

NOTE

Registered office has been shifted from The Millenia Tower B, 4^th Floor, Murphy Road, Ulsoor, Bangalore-560008, Karnataka, India to the present address w.e.f. 15.06.2012

UNSECURED LOAN

Particulars	Rs. In Million 31.03.2014	Rs. In Million 31.03.2013
Long Term Borrowings
Loans and advances from related parties	177.015	160.126
TOTAL	177.015	160.126

INDEX OF CHARGES

S. No	Charge ID	Date of Charge Creation /Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN
1	10150976	19/03/2009	350,000,000.00	INDIAN BANK	66, RAJAJI SALAI, CHENNAI, TAMIL NADU - 600001, INDIA	A60077153
2	10100135	06/05/2008	696,000,000.00	THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED	NO.7, MG ROAD, BANGALORE, BANGALORE, KARNATAKA - 560001, INDIA	A37401544

YEAR IN RETROSPECT

The Company has made considerable progress in the execution of its strategy this year, delivering production growth and execution. The aggregate sales of Rs. 3926.500 Million (P.Y. Rs.3436.500 Million) for the year under review were higher by 14% when compared to the previous year. The profit after tax during the year was at Rs.172.200 Million when compared to Rs.129.000 Million during the previous year, which is an increase by 34%.

FUTURE PROSPECTS

The Company will continue to expand the product offerings through research and development initiatives. Through these innovation initiatives they will continue to create new generations of products and services which will drive revenue and earnings growth.

PRODUCTS, SALES AND MARKETS

One of the Company’s strong points is its extensive network of channel partners and dealers running across the lengths and breadths of the country. The Company reviews and strengthens its distribution network on an ongoing basis.

The Company is persistently looking out for escalation opportunities and has taken several steps to pioneer new products, explore new markets, and perk up quality and to reduce costs.

Besides this, the marketing and sales division of the company works incessantly on ensuring that its customers are well aware of the ways handling of its products and the safety measures that are required to be taken care.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and equipment

· Furniture and fixtures

· Vehicles

· Office equipment

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. 65.11
UK Pound	1	Rs. 99.50
Euro	1	Rs. 74.24

INFORMATION DETAILS

Information Gathered by :	KMN
Analysis Done by :	TRI
Report Prepared by :	SANS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		51

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.