MIRA INFORM REPORT

Report Date :

20.03.2007

IDENTIFICATION DETAILS

Name :	CENTURY FIBRE PLATES PRIVATE LIMITED
Registered Office :	Survey No.296/297/8, IDA, Bollaram, Medak District-500032, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	17.04.1986
Com. Reg. No.:	01-6389
CIN No.: [Company Identification No.]	U25207AP1986PTC006389
TAN No.: [Tax Deduction & Collection Account No.]	HYDC00377G
PAN No.: [Permanent Account No.]	AAACC7842B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Rubberised Coir Mattresses Cushions and Pillows.

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 :
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track records. Directors are reported as experienced 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 :	Survey No.296/297/8, IDA, Bollaram, Medak District-500032, Andhra Pradesh, India
Tel. No.:	91-8458-279093
Fax No.:	91-40-27816246
E-Mail :	hyd2_century@sancharnet.in
Factory 1 :	35, M G Road, Secundarabad-500003, Hyderabad, India
Tel. No.:	91-40-27811568/ 27849586
Fax No.:	91-40-27816246

DIRECTORS

Name :	Mr. Bhagwandas Malani
Designation :	Chairman and Managing Director
Address :	10-3-150/151, East Marredpally, Secunderabad-500026, Andhra Pradesh, India
Date of Birth/Age :	01.11.1934
Date of Appointment :	01.04.2005
Date of Ceasing :	31.03.2010
Name :	Mr. P V Ranveer
Designation :	Director
Address :	1-10-63/1/1, Matrusree, Begumpet, Secunderabad-500016, Andhra Pradesh, India
Date of Birth/Age :	13.11.1947
Date of Appointment :	17.04.1986
Name :	Mr. Kamal Narayan Rathi
Designation :	Director
Address :	4-7-945, Esamia Bazar, Kacheguda, Hyderabad-500027, Andhra Pradesh, India
Date of Birth/Age :	05.05.1947
Date of Appointment :	17.04.1986
Name :	Mr. Purushottam Malani
Designation :	Director
Address :	10-3-150/151, East Marredpally, Secunderabad-500026, Andhra Pradesh, India
Date of Birth/Age :	20.01.1958
Date of Appointment :	01.04.2005
Date of Ceasing :	31.03.2010
Name :	Mr. C N Sita
Designation :	Director
Address :	C/O Prof. C. Amarnath, I.I.T. Powai, Mumbai, Maharashtra, India
Date of Birth/Age :	18.12.1931
Date of Appointment :	24.09.1997
Name :	Mr. C S Suryanarayana
Designation :	Director
Address :	2-2-11/5, Baghamberpet, Hyderabad-500027, India
Name :	Mr. Gopaldas Malani
Designation :	Director
Address :	10-3-150, Nehrunagar, Secunderabad-500026

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Bhagwandas Malani	1773
Mrs. Champa Devi Malani	2415
Mr. Purshottam Malani	1450
Mrs. Urmila Malani	250
Mr. P.V. Ranveer	3250
Mr. P.V. Pratap	2546
Mr. C. Shridhar	31
Mr. C. Amarnath	50
Mrs. P. Ramadevi	100
Mrs. C. N. Sita and C Amarnath	571
Mrs. C N Sita and Mr. Phanindranath	571
Mrs. C N Sita and Mr. C Murlidhar	571
Mrs. C N Sita and C Sridhar	571
Mrs. C N Sita and Mrs. P Ramadevi	571
Mrs. Leelavathi Rathi	1750
Mr. Kamal Narayan Rathi	1930
Total	18400

BUSINESS DETAILS

Line of Business :

Manufacturer of Rubberised Coir Mattresses Cushions and Pillows.

Products :

Product Description	ITC Code
Rubberised Coir	560300
Polyurethene Foam	3921-1100

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Rubberised Coir Blocks and Mattresses	MT	Not Applicable	3600	3070.725
Foam (including Re-bonded Foam)	MT	Not Applicable	1080	443.606

GENERAL INFORMATION

No. of Employees :

200

Bankers :

Union Bank of India, R.P. Road Branch, Secunderabad, Andhra Pradesh

Facilities :

Secured Loans :

From Banks
Working Capital Loan	22.219
From A.P. State Financial Corporation
Term Loan	13.593
Total	35.812

Unsecured Loans :

From Directors	6.540
From Shareholders	2.200
From Others	4.200
Sales Tax Deferment Loan	46.500
Total	59.440

Banking Relations :	Satisfactory
Auditors :
Name :	Nataraja Iyer & Company Chartered Accountants
Address :	Ashok Naghar, Musheerabad, Hyderabad-500020, Andhra Pradesh, India
Associates/Subsidiaries :	Shree Malani Industries Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
24000	Equity Shares	Rs.100/- each	Rs.2.400 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18400	Equity Shares	Rs.100/- each	Rs.1.840 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		1.840	1.840	1.840
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		59.112	46.818	36.288
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		60.952	48.658	38.128
LOAN FUNDS
1] Secured Loans		46.036	35.812	34.515
2] Unsecured Loans		65.563	59.440	44.287
TOTAL BORROWING		111.599	95.252	78.802
DEFERRED TAX LIABILITIES		0.114	0.084	0.104
TOTAL		172.665	143.994	117.034
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		43.100	40.146	45.157
Capital work-in-progress		0.000	1.418	0.016
INVESTMENT		21.418	20.918	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	60.018	42.204	43.819
	Sundry Debtors	55.668	49.501	46.620
	Cash & Bank Balances	6.593	6.064	6.816
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	42.118	31.504	8.571
Total Current Assets		164.397	129.273	105.826
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	30.398	30.437	33.965
	Provisions	25.852	17.324
Total Current Liabilities		56.250	47.761	33.965
Net Current Assets		108.147	81.512	71.861
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		172.665	143.994	117.034

A providing Profit and Loss figures for 2006 will be sent soon.
PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2005	31.03.2004
Sales Turnover		366.793	300.768
Other Income		23.142	26.331
Total Income		389.935	327.099
Profit/(Loss) Before Tax		22.056	13.703
Provision for Taxation		8.380	5.259
Profit/(Loss) After Tax		13.676	8.444
Total Earnings		2.290	0.923
Imports :
	Raw Materials	6.281	5.767
	Stores & Spares	0.060	0.030
Total Imports		6.341	5.797
Expenditures :
	Manufacturing Expenses	122.558	95.080
	Raw Material Consumed	205.621	187.266
	Purchases made for re-sale	3.619	1.026
	Interest	122.558	95.080
	Depreciation & Amortization	8.802	9.289
	Other Expenditure	22.856	15.181
Total Expenditure		367.879	313.396

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	NA	3.51	2.58
Net Profit Margin (PBT/Sales)	(%)	NA	5.66	4.19
Return on Total Assets (PBT/Total Assets}	(%)	NA	13.02	9.07
Return on Investment (ROI) (PBT/Networth)		NA	0.45	0.36
Debt Equity Ratio (Total Liability/Networth)		2.75	2.94	2.96
Current Ratio (Current Asset/Current Liability)		2.92	2.71	3.11

LOCAL AGENCY FURTHER INFORMATION

Form 8 Particular for creation or modification of charges

Name of the company

CENTURY FIBRE PRIVATE LIMITED

Presented By

Mr. Bhagwandas Malani, Managing Director

1) Date and description of instrument creating the change

Hypothecation agreement of goods, book debts etc. dated 08.09.2001.

Sanction letter no. RAD 153 dated 31.08.2001

2) Amount secured by the charge/amount owing on the securities of charge

Particulars	Rs. In millions
CC – Hypothecation	15.000
CC- Book Debts	7.000
ILC	2.000
LG	2.000

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

Primary: Charge on fixed assets of the company excluding machinery of unit 1.

Collateral :

1^st charge on fixed assets of the company excluding machinery of unit 1

2^nd charge on fixed assets of unit No.2 of the company

Personal Guarantees of all directors

4) Gist of the terms and conditions and extent and operation of the charge.

Interest Margin etc. are as per sanction advice and as per bank policy.

5) Name and Address and description of the person entitled to the charge.

Union Bank of India

R.P. Road Branch,

Secunderabad

Andhra Pradesh

6) Date and brief description of instrument modifying the charge

Hypothecation agreement for goods and book debts dated 03.01.2005

UBI sanction letter No. ADV 2168 dated31.10.2005 for enhanced credit facilities.

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.

The credit facilities ha been enhanced from Rs.38.000 millions to Rs.56.000 millions vide letter No. ADV 2168 dated 31.10.2005 and Hypothecation agreement of goods and book debts dated 03.11.2005. detailed modified limits terms and conditions are given below :

Particulars	Existing Limits	Enhanced Limits	Margin	Rate of Interest
Fund Based Limit
CC –Hypothecation of stock	17.500
CC- Hypothecation of Book debts	12.500
CC-Hypothecation of Stock and Book debts		50.000	25 and 40%	BPLR
Non fund Based Limit
LC	5.000	5.000	25%	Usual
LG	1.000	1.000	25%
Total	36.000	56.000

Other terms and conditions :

Primary Security :

Working Capital : Hypothecaion of past, present and future stock, book debts and other current assets fo the compant.

Non fund based limit : 25% margin in form of FDRS and Hypothecation fo fixed assets.

Collateral Security :

First charge on unit I situated at S No. 296/11 and 296/11 and 296/7 (part) Bolaram, Narsapur Rd. Medak Dist. Situated in 3.19 Acres comprising buildings with built up area of 45346 Sq.f.t valued at Rs.16.700 millions. Plant and machinery valued at Rs.15.100 millions. Total value being Rs.31.800 millions

Second Chage on unit II of the company situated at S No. 174 and 176 Bollaran Village Narsapur Taluq, Medak Dist. Situated in 3 Acres of land comprising building with built up area of 68538 Sq. ft. valued at Rs.25.400 millions and machinery woth Rs.36.500 millions. Total value being Rs.61.900 millions

Personal Guarantee of Mr. Bhagwan Das Malani

Mr. Purushottam Malani

Mr. P V Ranveer

Mrs. C N Sita

Mr. K N Rathi

Company’s fixed assets include Land, Factory Building, Plant and Machinery, Office Equipments, Laboratory Equipments, Electrical Fittings, Furniture and Fixtiures, Motor Vehicle, Sewing Machine, Air Conditioner, Computer System, Pollution Control Equipment and Fire fighting Device.

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.43.66
UK Pound	1	Rs.85.91
Euro	1	Rs.58.44

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	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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		54

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