MIRA INFORM REPORT

Report Date :

10.02.2007

IDENTIFICATION DETAILS

Name :	RUBAMIN LIMITED
Registered Office :	Synergy House, Subhanpura, Vadodara-390023, Gujarat
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	01.09.1987
Com. Reg. No.:	04-9942
CIN No.: [Company Identification No.]	U24299GJ1987PLC009942
TAN No.: [Tax Deduction & Collection Account No.]	BRDR00824F
PAN No.: [Permanent Account No.]	AAACR8758H
Legal Form :	A closely held public limited liability company.
Line of Business :	Manufacturers and Marketers of Zinc Oxide, Fine Chemical, Cobalt Metal, Nickel and Cobalt.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 1900000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experience and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Synergy House, Subhanpura, Vadodara-390023, Gujarat, India
Tel. No.:	91-265-2282078-88
Fax No.:	91-265-2282077
E-Mail :	info@rubamin.com Cobalt (RL) suresh.kr@rubamin.com Zinc Oxide (RL) kamlesh.sharma@rubamin.com Pharmaceuticals & Fine Chemicals (RLL) info.rll@rubamin.com
Website :	http://www.rubamin.com
Location :	Owned
Factory 1 :	23, Shree Laxmi Industrial Estate, Village Dunia, Halol - 389350, District Panchmahals, Gujarat Tel. No : 91-2676-220265/220927/223687
Factory 2 :	Plot No. 3, Lamadapura Road, Village Mangusar, Savli - 391770, Dist. Baroda, Gujarat
Factory 3 :	Block No. 21, Village Dabhasa, Taluka Padra, District Baroda - 391440, Gujarat

DIRECTORS

Name :	Mr. Atul Nandkishor Dalmia
Designation :	Managing Director
Address :	29, Charotar Society, Old Padra Road, Vadodara – 390 020, Gujarat, India
Date of Birth/Age :	5^th January 1959
Qualification :	B.E.(Civil)
Date of Appointment :	1^st September 1987
Name :	Mr. Anil Ramanlal Patel
Designation :	Director
Address :	Plot No. 8, Survey 79, At & Post Sevasi, Savli, Vadodara, Gujarat, India
Date of Birth/Age :	23 December1951
Qualification :	M.Sc. (Chem.)
Date of Appointment :	1^st September 1987
Name :	Mr. Ajit Chandulal Kapadia
Designation :	Director
Address :	4-B, Mamia Society, Near Amrakunj, Baroda – 390007, Gujarat
Date of Birth/Age :	4^th January 1942
Date of Appointment :	16^th August 2001
Other Directorship :	Managing Director of HOECL (Hindustan Oil Exploration Company Limited)
Name :	Dr. Prasad Radhanath Das
Designation :	Director
Address :	34, Nrahmeshwar Bag, Tankapani Road, Bhubaneswar – 751018, Orissa
Date of Birth/Age :	1^st November, 1945
Date of Appointment :	26^th March 2002
Name :	Mr. Alok Srivastava T.
Designation :	Director
Address :	Raw House II-D, Rahejamittal Complex, Gurgaon, Haryana
Date of Birth/Age :	2^nd May 1955
Date of Appointment :	17^th July 2004
Name :	Mr. Navin M. Dalmia
Designation :	Company Secretary
Address :	Shrey Astha Avenue, Ellora Park, Baroda – 390023, Gujarat
Date of Birth/Age :	10^th August 1967
Date of Appointment :	1^st October 1990

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Atul Nandkishore Dalmia	518,000
Mr. Nandkishore Jamnadhar Dalmia	450,000
Ms. Seema Atul Dalmia	218,800
Mr. Gyan Nandkishore Dalmia	88,200
Mr. Anil Ramanlal Patel	834,400
Ms. Mita Anil Patel	201,600
Ms. Shantaben Ramanlal Patel	140,400
Ms. Helan Anil Patel	48,600
Total	2,500,000

BUSINESS DETAILS

Line of Business :

Manufacturers and Marketers of Zinc Oxide, Fine Chemical, Cobalt Metal, Nickel and Cobalt.

Products :

Product Description	ITC Code No
Zinc Oxide	2817.0001
Cobalt Cathode	8105.1000
4-Chlorobenzhydryl Chloride	2903.6909

Imports from :

Europe and U.S.A

Terms :

Purchasing :

L/C (120 days) terms

PRODUCTION STATUS

PARTICULARS	Unit	Installed Capacity	Actual Production
Zinc Oxide	M.T	900.000	572.917
Fine Chemical	KG	10.806	21.335
Cobalt / Nickel/Copper Metal and its salts	M.T.	84.000	60.790

GENERAL INFORMATION

Suppliers :

· West Star Inc., U.S.A.

· Gref Metal Processing, Holand

· American Iron and Metal Co., Canada

· Energy Process Equipment

· Nodule Cast

· Shakun Plastic

· Sobead India

· Teckson Engineers

Customers :

· Mintex International Inc., U.S.A.

No. of Employees :

175

Bankers :

· State Bank Of India

Industrial Finance Branch, “Marble Arcade” Race Course, District Baroda – 390007

· Bank of Baroda

· ICICI Bank

· Dena Bank

VIP Road Branch, Karelibaug,

Baroda

Facilities :

Secured Loan	Rs In Millions
Term Loan
State Bank Of India	95.051
State Bank Of India – Corporate Loan	128.759
Hire Purchase Loans – Vehicles	4.890
Working Capital Finance - State Bank Of India
Cash Credit	109.476
Export Finance in Foreign Currency	73.518
Export Finance Indian Rupee	7.255
Short Term Trade Finance in Foreign Currency	99.181

Banking Relations :	Satisfactory
Auditors :	K C Mehta and Company Chartered Accountants 5, Molalisa Apartments, 48, Nutan Bharat Society, Baroda – 390007, Gujarat
Tel. No.:	91-265-5511000 / 004
Fax No.:	91-265-5510666
E-Mail :	kcm@wilnetonline.net office@kcmehta.com
Associates :	· Rubamin Exports Private Limited · Gyan Holdings Private Limited · Rubamin Industry · Zincollied (India) · Techno Chemicals · Atul Chemicals
Subsidiaries :	· Rubamin Investment Private Limited · Synergy Multibase Limited · Soft Genie Limited · Rubamin FZE · Rubaco SPRL
Memberships :	· Federation of Gujarat Industries · Bombay Chamber of Commerce · CAPEXIL

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs.10/- each	Rs. 30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
25,00,000	Equity Shares	Rs.10/- each	Rs. 25.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		25.000	25.000	25.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		458.472	365.800	270.730
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		483.472	390.800	295.730
LOAN FUNDS
1] Secured Loans		518.131	277.406	178.942
2] Unsecured Loans		121.095	50.809	42.450
TOTAL BORROWING		639.226	328.215	221.392
DEFERRED TAX LIABILITIES				19.988
TOTAL		1122.698	719.015	537.110
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		439.432	288.125	269.305
Capital work-in-progress		33.975	10.073	0.325
INVESTMENT		22.423	22.423	20.587
Pre Operating Expenditure		0.000	0.000	6.570
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	225.767	148.669	123.274
	Sundry Debtors	260.809	196.713	173.623
	Cash & Bank Balances	3.198	9.249	10.226
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	309.986	180.323	74.230
Total Current Assets		799.760	534.954	381.353
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	123.039	72.299	110.761
	Provisions	49.853	66.000	35.530
Total Current Liabilities		172.892	138.299	146.291
Net Current Assets		626.868	396.655	235.062
MISCELLANEOUS EXPENSES		0.000	1.739	5.261
TOTAL		1122.698	719.015	537.110

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	1237.646	1055.960	775.524
Profit/(Loss) Before Tax	111.772	118.824	111.860
Provision for Taxation	55.793	61.355	37.668
Profit/(Loss) After Tax	55.979	57.469	74.192
Export Value	345.417	278.322	NA
Import Value	596.158	436.926	NA
Total Expenditure	1125.874	937.136	663.664

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	4.52	5.44	9.56
Net Profit Margin (PBT/Sales)	(%)	9.03	11.25	14.42
Return on Total Assets (PBT/Total Assets}	(%)	9.02	14.44	17.19
Return on Investment (ROI) (PBT/Networth)		0.23	0.30	0.38
Debt Equity Ratio (Total Liability/Networth)		1.68	1.19	1.24
Current Ratio (Current Asset/Current Liability)		4.63	3.87	2.61

LOCAL AGENCY FURTHER INFORMATION

History

The Rubamin Group has always been international in its approach - be it establishment of manufacturing practices, induction of technology, development of products and markets or adherence to quality norms or standards. Each area of activity has a Chief Executive in-charge of entire operations, empowered with the authority to run independently. This has helped the group to spread its wings in diverse fields of business.

VARIOUS MILESTONES ACHIEVED BY THE COMPANY

1985 Commissioned first Rotary Calciner for Zinc Oxide production. Capacity – 1000 TPA

1994 Commissioned continuous Rotary Calciner for production of high quality Zinc Oxide with combined capacity 1000 TPA

1995 Entered into Pharmaceutical Intermediates and Specialty Fine-Chemicals business

1996 Ventured into knowledge based business of Information Technology

1998 Setup Cobalt and Nickel refinery based on indegeneously developed technology

1999 Commissioned new facility with investment of around Rs.150.0 millions for manufacture of Specialty/Fine Chemicals and Pharmaceutical Intermediates

Business

Subject is engaged in the business as manufacturers and marketers of Zinc Oxide, Fine Chemical, Cobalt Metal, Nickel and Cobalt.

The company is one of the leading manufacturers and exporters of Zinc Oxide in India. It can offer various grades of Zinc Oxide for wide range of applications. The complete process know-how and technology for manufacture of Zinc Oxide has been developed in-house by the company.

The company is also one of the largest manufacturers of Cobalt Metal in India. Its main activity comprises of processing and recovery of Cobalt Metal, Cobalt & Nickel Sales from Ores, Concentrates and other Cobalt-Nickel containing recyclable materials.

Its' product range includes :

· Arylpiperazines

· Benzyhydryl Derivatives

· Benzimidazole Derivatives

· Benzophenonoe

· Chloroethylamine Salts

· Diphenyl Ethers

Its main products include two major segments :

· Inorganic Chemicals : Zinc Oxide, Cobalt, Nickel, Copper and other Derivatives

· Organic Chemicals : Speciality Fine Chemicals for Pharmaceutical Industry.

It has the following Divisions :

· Zinc Oxide (Chemical Division)

· Rubamin Pharmaceuticals (Pharmaceutical Division)

· Rubamin System (Information Technology Division)

· Wind Mill Division

Fixed Assets

• Land and Land Development
• Building
• Plant and Machinery
• Furniture and Fixture
• Office Equipments
• Computers
• Vehicles

Review of operation

Total Turnover of the company increased to Rs. 1162.464 Millions from Rs. 1046.834 Millions an increase of 11.04 %

Operating Profit declined marginally to Rs. 226.837 Millions from Rs. 234.937 Millions mainly on account of the lower prices for Cobalt in the international market.

Profit after tax before Extra Ordinary Items, declined to Rs. 112.011 Millions from Rs. 115.550 Millions.

Business Wise Performance

Sales turnover increase by 43 % in year 2005-06 over the previous year 2004-05. this growth has been achieved due to 15 % growth in volume sales and a 24 % increase in average sales realization per kg of product sold, over last year. New product sales, defined as those which are introduced in the last 3 years, constituted 42 % of the sales turnover, as increase of 20 % from last year.

Operating Profit has jumped by more than 50 % in comparison to Last year. Improvement in performance was mainly on account of the newer and better product mix as well productivity initiatives in the manufacturing and process development area. Profit could have been higher but for the 12 weeks engagement of the planned renovation and modernization program in the manufacturing facility which was necessitated to take care of the improvements required in the plant. The objectives targeted and achieved are, de-bottlenecking, improved and logical unitization of reactor capacity, maintaining the quality of assets and to protect future years business. Total capital commitment was Rs. 74.400 Million for the two production modules, creating the neew cGMP Kilo laboratory and additional space in R & D block, including instrumentation.

There was a continuous focus on improving EHS compliances. It resulted in a significant improvement in the safety performance. During the year there was a reduction of 35 % in incident rate as compared to the last year.

Some of the other significant efforts for improving the performance of the business were:

The vision, objective, strategies and action plan has been cascaded down to 2^nd and 3^rd line of management level. This has put entire team on a same platform, thus enabling everone to identify his role and objectives with that of the organization.

The facility R & D, QA and manufacturing process were audited by large Global Pharmaceutical and Fine Chemicals companies.

Two senior positions of COO and Head of the Operations were filed up with senior personnel from the Pharmaceuticals industry.

Implementation of stage-gate process which is helping the business to screen incoming good business from average.

In spite of a difficult year where raw material prices were on the rise, the supply chain initiatives, especially in the 2^nd quarter helped the business to contain costs.

Key Accounts management practice has helped the business to improve service performance and better understanding with the customer.

Quality of R & D resource i.e. the work space, infrastructure, instrumentation and manpower increase. With an average strength of 37 personnel, the business was in a goods position to meet the commitments, except for some minor devotions in certain cases. Five syntheses labs and an analytical lab were added during the year.

Two major international patents were filed for registration, setting a new standard of working on non-infringing processes.

Future

The course set by a 5 year Strategic Plan will be followed in the year 2006-07. Sales are budgeted at 25 % higher then the last year with much higher profitability targets.

The strategy will be further refined based on the learning and changing extent environment. It would be the endeavour to remain current and relevant in the business model, keeping customer requirement in view.

With purpose in place, a greater focus will be to invest in developing people capacity especially in R & D Business Developing and manufacturing.

There will be a thrust to develop high value add low volume business for cGMP kilo lab.

EHS will remain the highest concern area and investment in training and technology will be made to comply with all statutory requirements.

Based on key Accounts Management concept, the business development and R & D team is working to develop a very robust R & D pipe line for the future years.

During the year the company has taken steps to De-merge its Pharma Business into a Separate company under a scheme of demerger filed with the Honble High Court of Gujarat as part of its exercise to focus on metal business.

Zinc Oxide Business

There has been marginal decline in Volumes of Zinc Oxide Business due to de-growth in the Sodium Hydro Sulphite industry and will continue to remain like this in coming years. The operating margin have improved with the improvements in the yield and cost efficiency measures yielding results. There has been a dramatic increase in Zinc price but the company has no impact of the same as the buying and selling price are both linked with the international Zinc price and company stand to receive only the treatment charges.

Future

The business is expected to remain stale and firmly dependent on steadiness of Raw Materials supply from main supplier. The company is exploring the possibilities of expansions through inorganic route and diversification in other value added allied produces in the industry.

Cobalt Business

In cobalt business they have had excellent growth volumes in the last few years and other next year budgets are also showing a continuing trend of substantial increase in volumes. Improvement in processing cost, recoveries and the quality are also very impressive. They have not had impressive increase in profit because of sharp decline in cobalt price and thereby the gross margins have declined sharply.

Last year they took a major initiative of expending their operations in Congo the possibility of setting up backward integrating project and thereby improve the supply chain. The entire cobalt concentrate is transferred to India while only part quality of copper concentrate comes to India for captive consumption.

The company has acquired a very large industrial land and them intent to put their unit following by a leaching plant, which can upgrade this concentrate to value added intermediates. This will make them a very strong fully integrated company in cobalt and copper. In times to come they can leverage their technical competence and their presence in Congo to get into other metals also Congo has the richest cobalt ore co-existing with copper available on the surface which can easily be mined in open cast mining system. Not only Congo is extremely rich in cobalt and copper, but also ahs very rich deposits of several other minerals like gold, silver, zinc led, lin, platinum etc. the political situation in Congo is now fast improving with the first General election being held in June this year. The confidence of World Bank and the international investing community has increased in Congo and lot of multi national companies like Phelps Dodge etc. have substantial investments plan for Congo. Under the circumstances they feel very confident that their entry into Congo has been extremely timely and this will open huge opportunity for their company.

Quality

Quality Management Systems at each of the Plants have been adopted benchmarking against world-class operating models viz. ISO 9001 / ISO 9002 / ISO 14001 / OHSAS 18001. Quality related training continued to receive priority focus.

Foreign exchange earnings and outgo

The company has had a strong focus in the past, and expects its export thrust to continue in the future. One of its plants is 100 % export oriented of which 79.15 % of total production was exported during the year under review. Over the years, the company has established a substantial direct export marketing network. The company has developed its own website to enhance its visibility. Further, the company has taken part in several internationals exhibitions to promote its products.

Notes forming Part of Accounts

A scheme of arrangement under section 391-394 of the Companies Act was approved by the shareholders of the company on the 4^th January 2006 for damager of company’s industrial undertaking at Village Dabhasa, Padra, Vadodara.

The Gujarat High Court upon receipt of the written consents of shareholders and the creditors had dispensed with holding of meeting of the creditors and the creditors and the shareholders.

The company’s petition for demerger of the above unit was admitted by Gujarat High Court, Ahemedabad. The advertisements in newspapers as directed by Gujarat High Court were published.

No objection to the contents of the scheme has so far been received from any person.

Upon receipt of the order of the Gujarat High Court, the industrial undertaking at Dabhasa would stand demerged from the company and shall stand transferred to and vested in Rubamin Laboratories Limtied as a going concern with effect from April 1, 2006.

On the scheme becoming effective, the shareholder’s of the company would be allotted equity shares of Rs. 10/-e ach fully paid up in the proportion to their shareholding of the company.

Contingent lovability not provided for in respect of	Rs In Millions
Unexpired Bank Guarantees issued by Banks	0.513
Letters of Credit issued by Banks	4.144
Sales tax demand in Appeal / Dispute	0.520
Income tax demand in Appeal / Dispute	1.053
Bill Discounted with Bank	11.505

Name of the company	RUBAMIN LIMITED
Presented By	The Managing Director
1) Date and description of instrument creating the change	Mortgage on 27.08.1996 by way of constructive delivery of title deeds in respect of immovable properties at 23, Shree laxmi Industrial Estate, Village Dunia, Halal, Panch Mahals in favour of Stage Bank of India Vide Memorandum of Entry dated 19.04.1996 the title deeds in respect of office premises at 103 and 201 adm 2495 sq.ft,. and 3228 sq. ft. of complex known as “Synergy House” Subhanpura, Baroda were delivered to State Bank of India
2) Amount secured by the charge/amount owing on the securities of charge	Working capital facilities aggregating Rs. 45.000 Millions 27.08.1996 Credit facilities aggregating Rs. 45 Millions 19.04.1996
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Mortgage by way of constructive delivery of title deeds in respect of immovable properties at 23, Shree laxmi Industrial Estate, Village Dunia, Halal, Panch Mahals in favour of Bank of Baroda Immovable property of the company being office premises bearing no 103 and 201 adm 2495 sq.ft,. and 3228 sq. ft. of complex known as “Synergy House” Subhanpura, Baroda
4) Gist of the terms and conditions and extent and operation of the charge.	The terms and conditions with reference to the above three charge are indicated in the documents of modification filed last.
5) Name and Address and description of the person entitled to the charge.	State Bank Of India Industrial Finance Branch, “Marble Arcade” Race Course, District Baroda – 390007
6) Date and brief description of instrument modifying the charge	No instrument was executed. However vide Memorandum of Entry dated 30.07.2004 consent of the company was accorded to allow State Bank Of India, Industrial Finance Branch, “Marble Arcade” Race Course, District Baroda – 390007 to continue to hold title deposit in respect of the properties descried in the memorandum of Entry attached herewith with an intent to create equitable mortgage on the said properties
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Modification sought is to cover the credit facilities to the tune or Rs. 418.300 Millions to merge both the charges on the immovable properties situated at Village Dunia, Halos at Baroda as described in the memorandum of Entry dated 30.07.2004 showing exclusive interest of State Bank of India, Baroda The memorandum of entry covers the property as follows Property of the company at at Plot nos. B/23, B/31 to B/31 of Laxmi Industiral Estate, Village Dunia, Haloal, Panch Mahals Property of the company at at Plot nos. B/13, B/14 to B/19 and B/20 of Laxmi Industiral Estate, Village Dunia, Haloal, Panch Mahals Office premises at 103 and 201 Synergy House, Subhanpura, Baroda Lease hold rights in the land at Village Pransala, Upleta, Rajkot, Gujarat and excluded. Thus by a single Memorandum of Entry dated 30.07.2004 the changes created Separately are merged.

As Per Website

Rubamin is a fast growing group having two companies operating in fields of Inorganic and Organic chemicals.

Rubamin Limited

Cobalt Metal & salts

Zinc Oxide

Rubamin Laboratories Limited

Pharmaceuticals & Fine Chemicals

The Group has three manufacturing sites in India and a sourcing office in D.R. Congo. The Group is committed to excellence in all its endeavours, with an unwavering focus on Customer Delight.

Business Structure and Management

The two business of Rubamin group are run as a separate Strategic Business Unit and Profit centre. These are supported by centralised corporate functions like H.R., Finance & Accounts and MIS.

Rubamin Limited - Board of Directors:

Atul Dalmia – Managing Director

Chemical Engineer from BITS-Pilani. He founded Rubamin in 1985

Anil Patel – Managing Director

A Post-Graduate in Science, he is the co-founder of the Rubamin Group

Ajit Kapadia – Independent Director

Masters Degree in Chemical Engineering from University of Louisville, Kentucky, USA. He has worked in senior positions in India and the US, and retired as the Managing Director of HOEC.

Dr. Radhanath Prasad Das – Independent Director

Internationally known metallurgical engineer. He is a B. Tech and M. Tech from IIT, Bombay and a Ph.D from Pennsylvania State University, USA.

Alok Chandra Gupta – Director

Alok Chandra Gupta is also the Chief Executive Officer of Rubamin Limited. He has done his B.Tech (Chemical Engg.) from IIT, Delhi and MBA from IIM, Ahmedabad. He has worked in senior positions with companies like, Indus International, Swagelok Company, ICI, TATA Steel.

Rubamin Laboratories Limited - Board of Directors:

Atul Dalmia – Director

Chemical Engineer from BITS-Pilani. He founded Rubamin in 1985

Anil Patel – Director

A Post-Graduate in Science, he is the co-founder of the Rubamin Group

Alok Srivastava – Independent Director

He is an MBA from XLRI Jamshedpur. He was Managing Director of Ranbaxy Fine Chemicals & Ranbaxy Nigeria. He was also Director, Speciality Material at Honeywell for Asia Pacific.

Dr. Arun Mandal - Director

Dr. Arun Mandal is also the Chief Executive Officer for Rubamin Laboratories Limited. He has done his Post-Graduation in Chemistry from IIT and Ph.D. from Benares Hindu University. He did his post-doctoral work at Purdue University with Prof. H C Brown (Nobel Laureate). He joined Rubamin in 2003 after a brilliant career with ICI that began in 1982 and saw him reach the position of General Manager and Head of ICI India's R&T centre.

New R&D facility at Rubamin Pharma

Date : 15/08/2006

Rubamin Laboratiries Ltd's R&D facilities are being strengthened with the commissioning of three new laboratories and addition of analytical instrumentation worth Rs 10 Million.

This has significantly added to their R&D capabilities resulting in a speedier response to the development needs of their customers.

CRISIL assigns A+ Rubamin's Rs100mn NCD Program

Date : 06/10/2005

CRISIL’s rating on Rubamin Limited (Rubamin) reflects the company’s diversified business profile, established position in the domestic zinc market, increasing presence in exports, and soundfinacial risk profile.

Rubamin’s presence in three business segments of zinc oxide, cobalt and specialty chemicals provides cushion against downturns in any of its business segment. Further, growing share of export (42%) in the company’s gross sales reduces its geographic dependence on specific markets.

The growing share of exports is primarily driven by an increasing demand for cobalt from the rechargeable battery and aerospace segments in the global market.

Rubamin has more than 15 years of experience in the zinc oxide business and it is the market leader in this segment. The company has a sound financial risk profile marked by healthy operating and net margins, comfortable capital structure, and good debt protection ratios.

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] 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.44.18
UK Pound	1	Rs.86.36
Euro	1	Rs.57.54

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--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
TOTAL		58

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/normal.	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

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