MIRA INFORM REPORT

Report Date :

12.06.2007

IDENTIFICATION DETAILS

Name :	ELASTOCHEMIE IMPEX PRIVATE LIMITED
Registered Office :	87, Sir M V Road, Andheri (East), Mumbai – 400093, Maharashtra.
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	07.06.1989
Com. Reg. No.:	11-52081
CIN No.: [Company Identification No.]	U25110MH1989PTC052081
TAN No.: [Tax Deduction & Collection Account No.]	MUME04853C/MUME05377B
PAN No.: [Permanent Account No.]	AAACE1053G/AAACE1053G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of rubber products, Importer and Distributor of Synthetic Rubber / Rubber Chemicals and Auxiliaries, Distributor of Thermal Insulation Material.

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 50000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established company having satisfactory track records. Financial position can be regarded as good. Trade relations are fair. Payments are correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	87, Sir M V Road, Andheri (East), Mumbai – 400093
Tel. No.:	91-22-56921100
Fax No.:	91-22-56921110
E-Mail :	sales@elastochemie.com, elasto@vsnl.com
Website :	http://www.elastochemie.com
Head Office :	310/B, Samir Apartment, 169, S V Road, Andheri (West), Mumbai – 400058
Factory 1 :	751/1, jayesh Compound Part 1 – 2, Rahnal Village Road, Mumbai – 421302
Branches :	At, Delhi, Chennai, Hyderabad, Bangalore

DIRECTORS

Name :	Mr. Anil Krishnadas Sampat
Designation :	Director
Address :	“Bhagwat”, Plot No. 50, Vallabh Nagar, Cooperative Society, Road No. 2, JVPD. Scheme, Vile Parle (West), Mumbai – 400056
Date of Birth/Age :	04.04.1954
Date of Appointment :	07.06.1989
Name :	Mrs. Kaumudi Anil Sampat
Designation :	Director
Address :	“Bhagwat”, Plot No. 50, Vallabh Nagar, Cooperative Society, Road No. 2, JVPD. Scheme, Vile Parle (West), Mumbai – 400056
Date of Birth/Age :	02.12.1952
Date of Appointment :	07.06.1989
Name :	Mr. Subramanian Kannan
Designation :	Director
Address :	16, Thiru Apartment, 3^RD Main Road, Raja Annamalaipuram, Chennai – 600028, Tamilnadu
Date of Appointment :	20.08.1991

KEY EXECUTIVES

Name :	Mr. Nilesh G. Shah
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Equity Shares
Mr. Anil K. Sampat	26,398
Mrs. Kaumudi Anil Sampat & Mr. Anil Sampat	10,401
Mrs. Trupti Sunil Sampat &Mr. Sunil Sampat	400
Mr.Sunil K. Sampat	400
Mr. Rajesh K. Sampat	400
Miss Minoti Anil Sampat	30,400
Miss Mihika Anil Sampat	30,000
Miss Pooja Sunil Sampat	400
Total	98,799
Names of Shareholders	No. of Preference Shares
Mr. Anil K. Sampat	100
Mrs. Kaumudi Anil Sampat	100
Mrs. Trupti S. Sampat	100
Mr. Sunil K. Sampat	100
Mr. Rajesh K. Sampat	100
Mrs Vyjanti R. Sampat	100
Miss Minoti A. Sampat	100
Miss Pooja S. Sampat	100
Miss Mihika A. Sampat	100
Mrs. Mira K. Sampat	100
Master Karan S. Sampat	100
Mahalaxmi Enterprises	1
Total	1,101

BUSINESS DETAILS

Line of Business :	Manufacture of rubber products, Importer and Distributor of Synthetic Rubber / Rubber Chemicals and Auxiliaries, Distributor of Thermal Insulation Material.
Products :	Synthetic Rubber, Rubber Chemicals, Rubber Compound, Wood, Rubber Foam

GENERAL INFORMATION

No. of Employees :	100
Bankers :	Canara Bank, Sakinaka, Mumbai- 400 072. American Express Bank Citibank
Facilities :	Bank Overdraft from Canara Bank, Car Loans From American Express Bank , Citibank

Banking Relations :	Good
Auditors :	Vora & Associates Chartered Accountant
Address:	103, Rewa Chambers, 31, New Marine Lines, Mumbai – 400020 , Maharashtra, India.
Tel. No.:	91-22-22005934

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
248000	Equity Shares	Rs. 10/- Each	Rs. 2.480 Millions
2000	Preferences Shares	Rs. 10/- Each	Rs. 0.020 Millions
	Total		Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
98799	Equity Shares	Rs. 10/- Each	Rs. 0.987 Millions
1101	Preferences Shares	Rs. 10/- Each	Rs. 0.011 Millions
	Total		Rs. 0.999 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		0.999		0.999		0.999
2] Share Application Money		0.000		0.000		0.000
3] Reserves & Surplus		16.889		13.616		11.176
4] (Accumulated Losses)		0.000		0.000		0.000
NETWORTH		17.888		14.615		12.175
LOAN FUNDS
1] Secured Loans		26.085		18.620		13.053
2] Unsecured Loans		9.337		8.258		5.639
TOTAL BORROWING		35.422		26.878		18.692
DEFERRED TAX LIABILITIES		0.000		0.000		0.000
TOTAL		53.310		41.493		30.867
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.046		2.275		1.878
Capital work-in-progress		0.000		0.000		0.000
INVESTMENT		0.000		0.000		0.000
DEFERREX TAX ASSETS		0.000		0.004		0.004
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	20.123		15.614		20.066
	Sundry Debtors	62.456	40.872		41.630
	Cash & Bank Balances	0.326	0.158		0.643
	Other Current Assets	0.000	0.000		0.000
	Loans & Advances	0.999	1.002		2.684
Total Current Assets		83.904	65.617		57.646
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities & Provisions	50.287	28.661		39.213
Total Current Liabilities		33.618	25.811		28.661
Net Current Assets		28.985	28.427		28.985
MISCELLANEOUS EXPENSES		0.000		0.002		0.000
TOTAL		53.310		41.493		30.867

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	236.398	176.799	139.974
Profit/(Loss) Before Tax	NA	NA	1.983
Provision for Taxation	NA	NA	0.728
Profit/(Loss) After Tax	5.350	3.822	1.255
Export Value	NA	NA	0.138
Import Value	NA	NA	24.292
Total Expenditure	231.047	172.977	140.405

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	2.26	2.16	0.89
Net Profit Margin (PBT/Sales)	(%)	2.26	2.16	1.41
Return on Total Assets (PBT/Total Assets}	(%)	6.15	6.42	3.43
Return on Investment (ROI) (PBT/Networth)		0.30	0.26	0.16
Debt Equity Ratio (Total Liability/Networth)		3.86	3.61	3.88
Current Ratio (Current Asset/Current Liability)		2.50	2.54	2.011

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

v Fax Machine

v Xerox Machine

v Computer

v Printer

v Refrigerator

v Furniture & Fixture

v Motor Car

v Air Conditioner

v Telephones

Name of the company	ELASTOCHEMIE IMPEX PRIVATE LIMITED
Presented By	Canara Bank
1) Date and description of instrument creating the change	Cash Credit Agreement dated 25.04.1995
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 3.000 millions
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	All the present and future, stocks of raw martial, good in progress and finished and manufacturer goods and articles such as rubber chemicals together with all stores All the present and future book debts, outstanding, monies receivable, claims and bills due to the borrower
4) Gist of the terms and conditions and extent and operation of the charge.	The secure cash credit facility granted by the bank to the borrower Rate of Interest – 19.25%
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Sakinaka, Mumbai – 400072
6) Date and brief description of instrument modifying the charge	Supplemental agreement dated 13.10.2000
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.	By earlier modification dated 19.03.1999 and 21.07.1997 the limit had been enchanted Rs. 6.000 Millions By this modification the cash credit limit future been enchanted from Rs. 8.000 Millions Rate of Insets has also been modification 3.75% iver RBI rate with a minimum of 16% Therefore the overall charge now stands Rs. 8.000 Millions
Name of the company	ELASTOCHEMIE IMPEX PRIVATE LIMITED
Presented By	Canara Bank
1) Date and description of instrument creating the change	Cash Credit Agreement dated 25.04.1995
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 3.000 millions
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	All the present and future, stocks of raw martial, good in progress and finished and manufacturer goods and articles such as rubber chemicals together with all stores All the present and future book debts, outstanding, monies receivable, claims and bills due to the borrower
4) Gist of the terms and conditions and extent and operation of the charge.	The secure cash credit facility granted by the bank to the borrower Rate of Interest – 19.25%
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Sakinaka, Mumbai – 400072
6) Date and brief description of instrument modifying the charge	Supplemental agreement dated 09.02.2001
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.	By earlier modification dated 19.03.1997 and 21.07.1997 the limit had been enchanted Rs. 8.000 Millions By this modification the cash credit limit future been enchanted from Rs. 9.500 Millions Rate of Insets has also been modification 3.75% iver RBI rate with a minimum of 16% Therefore the overall charge now stands Rs. 9.500 Millions
Name of the company	ELASTOCHEMIE IMPEX PRIVATE LIMITED
Presented By	Canara Bank
1) Date and description of instrument creating the change	Hypothecation agreement of goods and book debts dated 18.11.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 2.500 millions
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	All the present and future, stocks of raw martial, good in progress and finished and manufacturer goods and articles such as rubber chemicals together with all stores All the present and future book debts, outstanding, monies receivable, claims and bills due to the borrower
4) Gist of the terms and conditions and extent and operation of the charge.	The secure the due repayment of FLC – DA facility grenated by the bank to the borrower
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Sakinaka, Mumbai – 400072
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable
Name of the company	ELASTOCHEMIE IMPEX PRIVATE LIMITED
Presented By	Canara Bank
1) Date and description of instrument creating the change	Cash Credit Agreement dated 25.04.1995
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 3.000 millions
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	All the present and future, stocks of raw martial, good in progress and finished and manufacturer goods and articles such as rubber chemicals together with all stores All the present and future book debts, outstanding, monies receivable, claims and bills due to the borrower
4) Gist of the terms and conditions and extent and operation of the charge.	The secure cash credit facility granted by the bank to the borrower Rate of Interest – 19.25%
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Sakinaka, Mumbai – 400072
6) Date and brief description of instrument modifying the charge	Supplemental agreement dated 09.02.2001
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.	By earlier modification dated 19.03.1997 had been enchanted Rs. 3.000 to Rs. 5.000 Millions dated 25.04.1997 By the 2^nd modification dated 21.07.1997 the charged had been enhanced from Rs. 5.000 Millions to Rs. 6.000 Millions dated 8.08.1997 By the 3^rd modification dated 27.12.1999 the charged had been enhanced from Rs. 6.000 Millions to Rs. 6.500 Millions dated 21.01.2000 By the 4^th modification dated 13.10.2000 the charged had been enhanced from Rs. 8.000 By the 5^th modification dated 09.02.2001 the charged had been enhanced from Rs. 9.500 By the 6^th modification dated 23.09.2003 the charged had been enhanced from Rs. 9.500 to Rs. 12.000 Millions By the 7^th modification dated 14.01.2005 the charged had been enhanced from Rs. 12.000 to Rs. 15.000 Millions
Name of the company	ELASTOCHEMIE IMPEX PRIVATE LIMITED
Presented By	Canara Bank
1) Date and description of instrument creating the change	Cash Credit Agreement dated 25.04.1995
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 3.000 millions
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	All the present and future, stocks of raw martial, good in progress and finished and manufacturer goods and articles such as rubber chemicals together with all stores All the present and future book debts, outstanding, monies receivable, claims and bills due to the borrower
4) Gist of the terms and conditions and extent and operation of the charge.	The secure cash credit facility granted by the bank to the borrower Rate of Interest – 19.25%
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Sakinaka, Mumbai – 400072
6) Date and brief description of instrument modifying the charge	Supplemental agreement dated 14.01.2005
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.	By earlier modification dated 19.03.1997 had been enchanted Rs. 3.000 to Rs. 5.000 Millions dated 25.04.1997 By the 2^nd modification dated 21.07.1997 the charged had been enhanced from Rs. 5.000 Millions to Rs. 6.000 Millions dated 8.08.1997 By the 3^rd modification dated 27.12.1999 the charged had been enhanced from Rs. 6.000 Millions to Rs. 6.500 Millions dated 21.01.2000 By the 4^th modification dated 13.10.2000 the charged had been enhanced from Rs. 8.000 By the 5^th modification dated 09.02.2001 the charged had been enhanced from Rs. 9.500 By the 6^th modification dated 23.09.2003 the charged had been enhanced from Rs. 9.500 to Rs. 12.000 Millions By the 7^th modification dated 14.01.2005 the charged had been enhanced from Rs. 12.000 to Rs. 15.000 Millions

Form 8 Particular for creation or modification of charges

Corporation identity number or foreign company registrations number of the company	U25110MH1989PTC052081
Name of the company	ELASTOCHEMIE IMPEX PRIVATE LIMITED LIMITED
Address	87, Sir M V Road, Andheri (East), Mumbai – 400093, Maharashtra, India.
This Form is for	Modification of Charge
Type of Charges	Hypothecation
Particular of the charge holder	1
Brief of the principal terms and conditions and extent and operation of the charge	To secure the due repayment of cash credit facility granted by the bank of to the company Rate of interest: 19.25% p.a.
Description of the property charge whether it is a charge on	Stock in trade, Book debts
Modification charge Charge identification number of the charge to be modified	90212654
Date of instrument modifying the charge	03.06.2006
Particulars of the Property charged	(1) All, present & future, stocks of raw material, goods in process & manufactured goods & articles such as rubber chemicals, rubber synthetics, shoed, chappls together with all stores, components & spares, of the company. (2) All, present & future, book-debts, outstanding, monies receivables, claims & bills, due to the company

History:

Elastochemie, is poised to cater to India , the fastest growing rubber market of the world. Established in 1943 , Elastochemie is a part of the Sampat Group which has been in the rubber industry in India for more than 58 years. The group is involved in Manufacture of rubber products, Importer and Distributor of Synthetic Rubber / Rubber Chemicals and Auxiliaries, Distributor of Thermal Insulation Material.

Products:

Dealers of Rubber Goods, Raw Materials, Machinery

Company Information:

Specialization :   

Polychloroprene Rubber (CR), Chlorosulphonated Polyethylene ( CSM), Styrene Butadene Rubber ( SBR), Butyl- Chlorobutyl & Bromobutyl ( IIR), Polybutadene Rubber ( BR), EPDM

Quality :   

By adopting Cost Efficiency, Innovation and Modern manufacturing Technology, Elastochemie assures products integrity in the market place.

Facilities :   

Modern well equipped office with On-Line systems resulting in well informed satisfied customers. Our ware houses are situated at strategic locations throughout India.

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.46.91
UK Pound	1	Rs.80.46
Euro	1	Rs.54.60

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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

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