MIRA INFORM REPORT

Report Date :

25.12.2007

IDENTIFICATION DETAILS

Name :	SHEETAL RUBBER PRODUCTS (PRIVATE) LIMITED
Formerly Known As :	SHEETAL ENTERPRISES
Registered Office :	Plot No. J-395, MIDC, Bhosari, Pune-411 026, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	10.03.2006
Com. Reg. No.:	25 – 17854
CIN No.: [Company Identification No.]	U25191PN2006PTC017854
IEC No.:	3106004185
TAN No.: [Tax Deduction & Collection Account No.]	PNES17814G
PAN No.: [Permanent Account No.]	AAICS8559B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Radiator Hoses, Engine Hoses, Oil Resistant, Air Filler Hose, Turbocharger Hoses, CAC Hoses, Vacuum Hoses, Brake Hoses, Silicon Hoses and Fuel Hoses.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 4948
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well-established company having satisfactory track records. Trade records are fair. General financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. Nothing adverse reported

LOCATIONS

Registered Office / Factory:	Plot No. J-395, MIDC, Bhosari, Pune-411 026, Maharashtra, India
Tel. No.:	91-20-27121388 / 27122244
Mobile No.:	91-9890055353 / 9226557106
Fax No.:	91-20-27122794
E-Mail :	sheetalr1223@vsnl.net
Website :	http://www.sheetalrubber.com
Area :	9590 Sq. ft
Location :	Owned

DIRECTORS

Name :	Mr. Goyal sushil K.
Designation :	Director
Address :	100/19, GIFT, Gidney Park, Salisbury Park, Pune-411 037
Qualification :	B.Pharma
Experience :	25 years
Name :	Mr. Goyal Suraj S.
Designation :	Director
Address :	100/19, GIFT, Gidney Park, Salisbury Park, Pune-411 037
Qualification :	Diploma
Experience :	4 years
Name :	Mrs. Goyal Meena S.
Designation :	Director
Address :	100/19, GIFT, Gidney Park, Salisbury Park, Pune-411 037
Qualification :	B.E.
Experience :	7 years
Name :	Mr. Agarwal Sagar R.
Designation :	Director
Address :	602, Allance Blossoms, 100/36, Salisbury Park, Pune-411 037
Qualification :	B.E.
Experience :	7 years

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Goyal Sushil K.	95
Mr. Goyal Suraj S.	1
Mrs. Goyal Meena S.	1

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Radiator Hoses, Engine Hoses, Oil Resistant, Air Filler Hose, Turbocharger Hoses, CAC Hoses, Vacuum Hoses, Brake Hoses, Silicon Hoses and Fuel Hoses.
Products :	Radiator Hoses Engine Hoses Oil Resistant Air Filler Hose Turbocharger Hoses CAC Hoses Vacuum Hoses Brake Hoses Silicon Hoses Fuel Hoses
Exports to :	U.S.A. European Country Sri Lanka South Africa
Terms :
Selling :	L/C, Cash, Credit (30-60 days)
Purchasing :	Credit [60 days], Cash

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Extruder Hoses	Tons / Monthly	80.00	16.00
Silicone Hoses	Tons / Monthly	20.00	4.00
Fuel Tubes	Tons / Monthly	10.00	0.30
Moulded Hoses	Tons / Monthly	7.00	1.40

GENERAL INFORMATION

Customers :	OEM’s TATA Motors Limited Tata Toyo Radiators Banco Products (India) Limited Bajaj Auto Limited Bajaj Tempo Limited Cotton Greaves Limited EATON Fluid Power Limited Voltas Air International Kirloskar Brothers Limited Behr India Limited Amp India Limited Indian Railways Defence Voltas Limited
No. of Employees :	150
Bankers :	HDFC Bank Limited, Bhandarkar Road, Pune
Facilities :	Credit Limits Rs.250.000 Millions [Bill Purchase]

Banking Relations :	Satisfactory
Auditors :
Name :	S.S. Khot and Company Chartered Accountants
Address :	25, Jewel of Pimpri, Pune, Maharashtra, India
Mobile No.:	91-9822069029

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- Each	Rs.1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
95000	Equity Shares	Rs.10/- Each	Rs.0.950 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		0.950	0.520
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.287	(0.032)
4] (Accumulated Losses)		(0.000)	0.000
NETWORTH		1.237	0.488
LOAN FUNDS
1] Secured Loans		15.518	0.000
2] Unsecured Loans		3.873	0.044
TOTAL BORROWING		19.391	0.044
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		20.628	0.532
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		19.941	0.000
Capital work-in-progress		0.000	0.000
INVESTMENT		0.599	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.163	0.000
	Sundry Debtors	5.822	0.000
	Cash & Bank Balances	2.447	0.000
	Other Current Assets	0.482	0.000
	Loans & Advances	1.559	0.000
Total Current Assets		18.473	0.000
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	14.840	0.000
	Provisions	3.573	0.000
Total Current Liabilities		18.413	0.000
Net Current Assets		0.060	0.497
MISCELLANEOUS EXPENSES		0.000	0.000
Preliminary Expenses		0.028	0.035
TOTAL		20.628	0.532

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		76.953	28.494
Other Income		0.133	0.000
Total Income		77.086	28.494
Profit/(Loss) Before Tax		0.874	(0.016)
Provision for Taxation		0.554	--
Profit/(Loss) After Tax		0.320	(0.016)
Earnings in Foreign Currency :
Total Earnings		0.779	0.000
Imports :
Total Imports		0.000	15.635
Expenditures :
	Cost of Material Consumed	49.737	0.000
	Manufacturing Expenses	13.778	0.000
	Administrative Expenses	8.408	0.000
	Depreciation	4.288	0.000
Total Expenditure		76.211	16.173

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006
PAT / Total Income	(%)	0.41	(0.05)
Net Profit Margin (PBT/Sales)	(%)	1.13	(0.05)
Return on Total Assets (PBT/Total Assets}	(%)	4.73	NA
Return on Investment (ROI) (PBT/Networth)		0.70	(0.03)
Debt Equity Ratio (Total Liability/Networth)		14.88	NA
Current Ratio (Current Asset/Current Liability)		0.00	NA

SHEETAL ENTERPRISES

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		3.618	2.171
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		3.618	2.171
LOAN FUNDS
1] Secured Loans		21.459	17.703
2] Unsecured Loans		1.001	1.183
TOTAL BORROWING		22.460	18.886
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		26.079	21.057
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		19.682	17.999
Capital work-in-progress		0.000	0.000
INVESTMENT		1.107	3.015
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.114	6.388
	Sundry Debtors	4.438	1.874
	Cash & Bank Balances	1.493	1.133
	Other Current Assets	0.000	0.000
	Loans & Advances	0.000	0.000
Total Current Assets		19.045	9.395
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	14.713	7.362
	Provisions	1.470	1.990
Total Current Liabilities		16.183	9.352
Net Current Assets		2.862	0.043
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		26.079	21.057

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005
Sales Turnover		NA	52.497
Other Income		NA	0.000
Total Income		NA	52.497
Profit/(Loss) Before Tax		0.246	0.244
Provision for Taxation		0.000	--
Profit/(Loss) After Tax		0.246	0.244
Export Value		NA	0.003
Import Value		NA	35.561
Expenditures :
	Printing and Stationery	0.284
	Advertisement	0.037
	Petrol and Vehicle Maint Expenses	0.443
	Office Expenses	0.112
	Pooja Expenses	0.089
	Postage and Telegram	0.041
	Traveling and Conveyance	0.400
	Legal and Prof Charges	0.354
	Technical Consultancy Charges	0.093
	Telephone Charges	0.204
	Staff Salary and Bonus	1.431
	Bank Interest, Charges and Comm.	2.365
	Interest on Unsecured Loans	0.148
	Insurance Charges	0.066
	Discount Paid	0.008
	Propery Paid	0.007
	Transport Outward	0.241
	Audit Fee	0.028
	Subscription	0.027
	Bonus and Ex-Gratia	0.179
	Depreciation	3.597
	Data Processing Charges	0.017
	Sales Promotion Expenses	1.153
	Rent	0.041
	Sales Commission Paid	0.149
	Sundry Expenses	0.003
	Repairs and Maintenance	0.492
	Sales Tax	0.168
	Vehicle Repair and Maintenance	0.052
Total Expenditure		13.840	23.418

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	NA	0.46
Net Profit Margin (PBT/Sales)	(%)	NA	0.46
Return on Total Assets (PBT/Total Assets}	(%)	1.17	0.89
Return on Investment (ROI) (PBT/Networth)		0.06	0.11
Debt Equity Ratio (Total Liability/Networth)		4.47	13.01
Current Ratio (Current Asset/Current Liability)		0.63	1.00

LOCAL AGENCY FURTHER INFORMATION

Note:

Subject was previously known as Sheetal Enterprises and was converted into a Private Limited Company on 10.03.2006.

As per Web Details:

Subject supplies multi-application rubber products for the automobile, engineering and pharmaceutical industries. Almost two decades of experience and a forward-looking management make it well-set to supply quality products to a discerning and flourishing market.

• Supplies multi-application rubber products for the Automobile, Engineering and Pharmaceutical Industries

• Two decades of experience and a forward-looking management make it well-set to supply quality products

• Fully integrated world-class manufacturing unit admeasuring 50,000 sq ft with latest machinery, tool room and processes

• An in-house product testing and validation facility

• Offer customized products

• Professionally managed company assisted by well-qualified dedicated human resource

• Situated at Pune, the largest Auto-component hub of Asia

• An ISO/TS 16949: 2002 Certified Company

• Full commitment towards the implementation of the documented Quality Management System

• Current growth rate of 56%. Intends to grow further through the installation of additional capacity

• Caters to superlative clients, keeping customer relations paramount

Facility:

• Manufacturing Facility

Subject has a fully integrated world-class manufacturing unit with latest machinery and processes such as:

v Dispersion kneader to internal mixer & stock blenders

v Hot feed, cold feed and co-extrusion extruders

v Autoclave vulcanisers (Direct & Indirect steam type)

v Compression moulding, transfer moulding

v Automatic hose cutting, cleaning and in jet printing machine

v Knitting / Braiding Machine

· Testing Facility

Quality is a prime focus of subject and to augmented this they have sophisticated testing equipment such as:

v Burst Pressure Test Machine (Horizontal)

v Ozone Test Chamber

v Universal Testing Machines

v Moving Die Rheometer (MDR)

v Heating Ovens

v Polymer identification concept (Used for reverse engineering)

v Chillers for Cold Flexibility Test

Quality:

All their products are the result of stringent quality management systems, based on the requirements of the International Quality Management System Standard of ISO/TS 16949: 2002. They are CQ certified vendor for most of their customers with DOL status.

The company has a Quality Policy that includes:

v Manufacturing products of outstanding quality, consistent with customer requirements, through strict conformance with specifications

v Working towards continual improvement in every functional area, aiming to avoid errors and ensure fault-finding, coupled with immediate corrective and preventive action

v Ensuring the full commitment of all employees towards the implementation of the documented Quality Management System

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 records 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] 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.39.39
UK Pound	1	Rs.78.02
Euro	1	Rs.56.77

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--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
TOTAL		45

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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