MIRA INFORM REPORT

Report Date :

29.03.2008

IDENTIFICATION DETAILS

Name :	FENNER (INDIA) LIMITED
Registered Office :	3, Madurai-Melakkal Road, Kochadai, Madurai – 625 016, Tamilnadu
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	15.07.1955
Com. Reg. No.:	18-00740
CIN No.: [Company Identification No.]	U25199TN1955PLC000740 / U24231TN1992PLC062306
TAN No.: [Tax Deduction & Collection Account No.]	DELF00082F
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Engaged in manufacturing of V Belts and Fan Belts including Cogged Power Transmission Belts, Oil Moulded Rubber Products, Conveyor Beltings and Textile Yarn.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 8127140
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	The company was merged with RR Belts and Seals Limited on 25.10.2007 again renamed as Fenner (India) Limited. Subject is an old established and reputed company having fine track. Fundamentals are strong. Trade relations are fair. Payments are correct and as per commitments. The company is doing well. It can be considered good for any normal business dealings. It can be recorded as a promising business partner in a medium to long – run.

LOCATIONS

Registered Office :	3, Madurai-Melakkal Road, Kochadai, Madurai – 625 016, Tamilnadu, INDIA
Tel. No.:	91-452-2383801 / 2383802
Fax No.:	91-452-2383822
E-Mail :	rk@fenenrmail.com filmdu@fennermail.com ptd_mhq@fennermail.com export@fennermail.com apdoe@fennermail.com export@fennermail.com apdrep@fennemail.com export@fennermail.com fennerunit2@eth.net fenunit1@sancharnet.in pattabiraman@fennermail.com amlanjr@fennermail.com
Website :	www.fennerindia.com
Head Office/ Corporate Office :	5^th Floor, Khivraj Complex II, 480, Anna Salai, Nandanam, Chennai - 600 035, Tamilnadu, India
Tel. No.:	91-44-24312450 to 24312458 (9 lines)
Fax No.:	91-44-24349016 / 24320193
E-Mail :	fenner_india@fennermail.com
Factory :	· Madurai-Melakkal Road, Kochadat, Madurai – 625 016, Tamilnadu Tel. No. 91-452-2383801 Fax No. 91-452-2383822 · Rukatpalli, Rangareddy District, Hyderabad – 500 872, Andhra Pradesh · Manavasi, Tiruchirapalli – 639 108, Tamilnadu · Kumarakottam Dharmapurai District, Tamilnadu · Aralvoimozhi, Kanyakumar District, Tamilnadu · Madurai, Kukatpally- Hyderabad
Branches :	Located at : Madurai, Chennai, Hyderabad, Bangalore, Mumbai, Ahmedabad, Kolkata, New Delhi, Indore, Cuttack, Jaipur, Ludhiana, Faridabad and Secunderabad.

DIRECTORS

Name :	Mr. Lakshminarayan Ramkumar
Designation :	Director
Address :	14, II Floor, Seethamma Colony Extension III Cross Street, Chennai – 600 018, Tamil Nadu, India
Date of Birth/Age :	09.04.1956
Date of Appointment :	14.08.2003
Name :	Mr. Harsh Vardhan Lodha
Designation :	Director
Address :	8 National Tower, 13 London Street, Kolkata – 700 017, West Bengal, India
Date of Birth/Age :	13.02.1967
Date of Appointment :	18.03.1996
Name :	Mr. Lajpat Rai Puri
Designation :	Director
Address :	Bunglow No. 7, Block –D Saket, New Delhi – 110 017, India
Date of Birth/Age :	08.07.1923
Date of Appointment :	10.09.1987
Name :	Mr. Harsh Pati Singhania
Designation :	Director
Address :	20 Jorbagh, New Delhi – 110 003, India
Date of Birth/Age :	31.12.1961
Date of Appointment :	24.12.1988
Name :	Mr. Raghupati Singhania
Designation :	Director
Address :	40, Friends Colony (East), New Delhi -110 065, India
Date of Birth/Age :	08.12.1946
Date of Appointment :	10.09.1987
Name :	Mr. Arun Bharat Ram
Designation :	Director
Address :	1, Silver Oak Avenue West End Green Farms, Phase –I, Rajkari, New Delhi – 110 038, India
Date of Birth/Age :	19.11.1940
Date of Appointment :	15.03.1991
Name :	Mr. Harsh V Lodha
Designation :	Director
Address :	8, National Tower, 13 Loudon Street, Kolkata – 700 017, West Bengal, India
Date of Birth/Age :	13.02.1967
Date of Appointment :	18.03.1996
Name :	Mr. Surendra Malhotra
Designation :	Director
Address :	1-A-1, Girdhar Apartments, 28 Feroze, Shah Road, New Delhi – 110 001, India
Date of Birth/Age :	20.08.1940
Date of Appointment :	09.06.1993
Name :	Mr. Santhanamarimuthu Rajaguru
Designation :	Director
Address :	38, Ashok Nagar Thirds Street. Kochadai Road, Madurai – 625 016, Tamil Nadu, India
Date of Birth/Age :	03.02.1952
Date of Appointment :	22.03.2001
Date of Ceasing:	31.08.2005

KEY EXECUTIVES

Name :	Mrs. Kasturi Gopala Krishnamurthy
Designation :	Secretary
Address :	D -5, Kalpa Viruksha Apartments, 12 Lakshmi Street, New Avadi Road, Kilpauk, Chennai- 600 010, Tamil Nadu, India
Date of Birth/Age :	09.03.1968
Date of Appointment :	08.02.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (as on 31.03.2007)	No. of Shares
Mr. Vinay Chandra Vadilal Shah	6666
Mr. Manjit Singh Anand	5000
Mrs. Bhagwati dEvi	1600
Ms. Shodha Bagrodia	1333
Boribunder Finance and Investments Limited	6666
Mrs. Pallavi Utsav Dhupalia	2666
Terrestrial Finance limited	153333
Vashodhan Investment Limited	155866
Mayfair Finance Limited	144266
Khunor Manufacturing and Industries limited	30666
Prisure Promotion and Trading limited	31333
Mr. Raghubir Singh	4333
Kor Investment Limited	13333
Yarlagadda Krishna Murthy (HUF)	20000
Mr. Annamalai MAA S Venugopal	1600
Mrt. Baisiwala T Mrs Archana Baisiuala	5555
Parlink Consultants (private) Limited	4400
Akshaya Holding (Madras) Private Limited	5383
Mr.Sunil K Mittal Kadambari S Mittal	4033
Mr. Henry F Cookill and Sons limited	154200
Dr. Pratap Ishwar Mrs. Rashmi Pratap	1600
Panchanan Investment Limited	10666
Credit Capital Investment Trust Company Limited A/C Taurus Mutual Fund	31000
Mr. P S. Reddy	6666
Birla Global Finance limited	155000
Mr. Parasram Securities Private Limited	1600
Mr. Hari Shankar Singhania	173115
Mr. Juggilal Kalapat (Agency) Limited	15899
JK Agents limited	9998
Mrs. Archana M Kapani	2666
Mr. Pratap Rashmi	50000
Mr. Alankit Finsel Limited	6000
JK Agri Genetics Limited	3066
Others	20992

Equity Shares Breakup (Percentage of Total Equity): [as on 31.03.2007]:-

Sr No.	Category	Percentage
1	Foreign holdings (Foreign institutional investors ) foreign companies foreign financial institutions , non residents or Overseas corporate bodies or others	6.21
2	Bodies Corporate	88.86
3	Directors or relative of directors	3.25
4	Other top fifty (50) Shareholders	1.68
	Total	100.00

BUSINESS DETAILS

Line of Business :

Engaged in manufacturing of V Belts and Fan Belts including Cogged Power Transmission Belts, Oil Moulded Rubber Products, Conveyor Beltings and Textile Yarn.

Products :

· V Belt and Fan Belts

· Yarn

· Engineering Products

· Industrial V-Belts

· Auto Belts

· Oil Seals

· Power Transmission Products

· Conveyor Belts

· Transtech Material Handling System

· Textiles

ITC Code No.	Product Description
401021.00, 401024.00	V and Fan Belts and Oil Seals
401693.03	Oil Seals
520512.01	Cotton Yarn

Exports :

Products :

V-belts, Fan Belts, Oilseals, Couplings, Cotton Yarn, etc.

Countries :

New Zealand, Sri Lanka, UAE, UK and USA.

Imports :

Products :

Polyester Card, PVC Resin, Nylon Yarn, Synthetic Rubber and Chemicals

Countries :

Japan, Korea, Switzerland, Taiwan, Thailand, UK and USA.

GENERAL INFORMATION

Suppliers :	· Dupont, U.S.A. · Noble Corporation, U.S.A.
Customers :	Wholesalers, Retailers, Actual Users, OEM’s and others. Material Handling Systems – Unit Load Handling Overhead Chain Conveyors
No. of Employees :	1600
Bankers :	· State Bank of India, Madurai, Tamilnadu · Bharat Overseas Bank Limited, · ABN Amro Bank, Madurai, Tamilnadu · Canara Bank Grand Central Branch 118-B, West Perumal Maistry Street, Madurai – 625 001 · Punjab National Bank 74, Janpath, New Delhi -110 001, India · State Bank of Tranvancore Madurai Main Branch , Door No. 103, Kannathal Complex, First Floor, Vakkil New Street, Madurai – 625 001, Tamil Nadu, India
Financial Institutions :	IDBI Trusteeship Services Limited Address: Asian Building , Ground Floor, 17, R Kamani Marg, Ballard Estate, Mumbai – 400 001, Maharashtra, India
Banking Relations :	Good
Auditors :
Name :	S. S. Kothari & Company, Chartered Accountants
Address :	146-149, Tribhuvan Complex, Ishwar Nagar, Mathura Road, New Delhi, India
Holding Company:	· Bengal ands Assam Company Limited
Parent Company:	· Fenner International Limited
Memberships :	· Confederation of Indian Industry
Associates/Subsidiaries :	· J. K. Organisation · BMF Beltings Limited, Madurai, Tamilnadu · Acorn Engineering Limited CIN of the Company: U74210DL1978PLC009175 · BMF Investments Limited CIN of the Company: U67120DL2005PLC161088 · Southern Spinners and processors Limited CIN of the company:U17111TN2005PLC056558 · Modern Cotton Yarn Spinners Limited CIN of the company : U17111TN2005PLC057274

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
80000000	Equity Shares	Rs. 10/- each	Rs.800.000 millions
1000000	Preference shares	Rs. 100/- each	Rs.100.000 millions
		Total	Rs.900.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2483066	Equity Shares	Rs. 10/- each	Rs.24.830 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		24.831
2] Share Application Money		0.000
3] Reserves & Surplus		2006.954
4] (Accumulated Losses)		0.000
NETWORTH		2031.785
LOAN FUNDS
1] Secured Loans		885.939
2] Unsecured Loans		573.369
TOTAL BORROWING		1459.308
DEFERRED TAX LIABILITIES		0.000
TOTAL		3491.093
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		982.601
Capital work-in-progress		112.357
INVESTMENT		1592.155
DEFERREX TAX ASSETS		91.747
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	270.191
	Sundry Debtors	512.498
	Cash & Bank Balances	117.100
	Other Current Assets	32.140
	Loans & Advances	551.085
Total Current Assets		1483.014
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	626.605
	Provisions	188.461
Total Current Liabilities		815.066
Net Current Assets		667.948
MISCELLANEOUS EXPENSES		44.285
TOTAL		3491.093

PROFIT & LOSS ACCOUNT

PARTICULARS			31.03.2007
Sales Turnover			2284.015
Other Income			40.052
Total Income			2324.067
Profit/(Loss) Before Tax			376.468
Provision for Taxation			[1.335]
Profit/(Loss) After Tax			377.803
Expenditures :
	Raw Material Consumed		791.288
	Purchases made for re-sale		173.288
	Consumption of stores and spares parts		85.022
	Increase/(Decrease) in Finished Goods		[14.851]
	Salaries, Wages, Bonus, etc.		317.197
	Managerial Remuneration		6.436
	Payment to Auditors		0.439
	Interest		90.321
	Insurance Expenses		8.821
	Power & Fuel		112.510
	Depreciation & Amortization		79.381
	Other Expenditure		297.614
Total Expenditure		1947.599	1947.599

KEY RATIOS

PARTICULARS		31.03.2007
PAT / Total Income	(%)	16.25
Net Profit Margin (PBT/Sales)	(%)	16.48
Return on Total Assets (PBT/Total Assets}	(%)	8.83
Return on Investment (ROI) (PBT/Networth)		0.19
Debt Equity Ratio (Total Liability/Networth)		1.19
Current Ratio (Current Asset/Current Liability)		1.82

LOCAL AGENCY FURTHER INFORMATION

HISTORY

In 1995, the company entered the wind farm projects at Nuppandal, Kanyakumari, Tamilnadu

The company is the leader in power transmission products and offer users with V-Belts Drives, Conveyor Belting, Automotive Belts, Oil Seals and Power Transmission products. Material Handling Systems has been introduced since last one decade.

In 1987, the company became an associate company of the J. K. Organisation. This provided further impetus to the company's growth and diversification in India.

In 1992, the company diversified into Textiles. It's textile mill is equipped with modern facilities for production of hosiery yarn, warp yarn and sewing threads for overseas market.

BUSINESS

Subject is a Joint Venture between Fenner Plc. U.K. right from inception. The British company holds 35.07% of Equity Shares.

The company is engaged in manufacturing of V Belts and Fan Belts including Cogged Power Transmission Belts, Oil Moulded Rubber Products, Conveyor Beltings and Textile Yarn.

Subject also acts as manufacturer, trader and exporter of Fenner.

Company deals in –

1) Bulk Material handling systems for the following industries

1. Steel
2. Coal
3. Cement
4. Bagasse
5. Miling
6. Ropeways and others

2) Unit handling systems such as

1. Overhead chain conveyor
2. Airport baggage load systems
3. Unit load conveyors

3) V Belts

4) Auto belts

5) Oil Seals

6) Power Transmission Products

7) Conveyor belts

8) Textiles

OTHER INFORMATION:

Subject’s major customers are –

Steel Industry -

· Nagpur Alloys & Castings Limited

· Malvika Steels Limited

· Steel Authority of India Limited – Rourkela Plant

· Jindal Vijaynagar Steels Limited

· Kudremukh Iron & Steel Limited

· Ispat Metallics India Limited

· SJK Steel Corporation Limited

· Neelachal Ispat Nigam Limited, Bhubaneshwar

· Konark Metcoke Limited, Bhubaneshwar

· Vikram Ispat Limited

Coal & Lignite based power plants -

· Neyveli Lignite Corporation Limited

· Associated Cement Companies Limited

· Madras Aluminium Company Limited

· Tamilnadu Chemical Products Limited

· Thiru Arooran Sugars Limited

· Tamilnadu Newsprint and Papers Limited, Kagithapuram

· Straw Products Limited

· Binani Cement Limited

· Vardhaman Acrylics Limited, Bharuch

· National Aluminium Company, Damanjodi

· Rourkela Steel Plant

· Konark Metcoke Limited

· National Aluminium Company, Angul

Cement Plants –

· Orient Cement Limited

· Associated Cement Companies Limited

· Malabar Cements Limited

· Zuari Cement Limited

· Madras Cement Limited

· Orient Cement Limited

· Orrisa Cement Limited

· Steel Authority of India Limited

· Northern Coal Fields

Unit Load Conveyors –

· L & T Niro Limited

· Larsen & Toubro Limited, Mumbai, Maharashtra

· Global Boards Limited

· Indian Oil Corporation Limited

· Indian Furniture Products Limited, Chennai, Tamilnadu

Material Handling Systems – Unit Load Handling Overhead Chain Conveyors

The Over Head Chain Conveyor (OHCC) is an economical mode of conveying unit load material inside a plant through complex routes. The conveyor is suspended from the roof. The material is carried in hangers. The hangers are suspended from a moving endless chain placed in a specially formed track. The drive and lubrication unit are also placed in the roof near the conveyor.

Some of the projects executed by company in OHCC are listed below –

· Power & Free Conveyors for TELCO Limited, Pune, Maharashtra

· Over Head Conveyors for Fruit & Vegetables Project for NDDB, Mumbai, Maharshtra

· Empty Bag Carrying Conveyor for DLF Cement

Material Handling Systems – Unit Load Handling Overhead Chain Conveyors

Airport Baggage Conveyors

Company enjoys a monopoly in the filed of Airport Baggage Handling Systems in India. Company’s conveyors can be seen in the Arrival and Departure Halls of almost every airport in India. Company has supplied two types of conveyors viz.,

· Slider Bed Conveyor in the Departure Halls

The conveyor has a smooth metallic surface on which, a Belt moves or skids over. The conveyor is capable of carrying goods like suitcases, parcels and baggages of different shapes upto 50 kgs each. The belt does not sag and does not have any roller to support. This helps in carrying baggages which can be soft or hard or flexible.

· Multiplanner Conveyor in the Arrival Halls

The conveyor has overlapping rubber slats moving in an endless circular loop. The slats offer good surface support for variety of baggages. The slats are supported below by chain fitted with rollers, which run on a track. The rollers or tyres are specially lined with nylon or poly urethene to reduce friction and noise to acceptable levels.

Following airports has Fenner Conveyors.-

· International Airports in India : Bangalore, Mumbai, Kolkata, Calicut, Delhi, Chennai and Thiruvananthapuram

Form 8:-

Corporation identity number or foreign company registrations number of the company	U25199TN1955PLC000740
Name of the company	FENNER (INDIA) LIMITED
Address	No. 3 Madurai Melakkai Road, Madurai, Tamil Nadu – 625 016, India
This Form is for	Modification of Charge
Type of Charges	Book Debts Movable property
Particular of the charge holder	State Bank of Tranvancore Madurai Main Branch , Door No. 103, Kannathal Complex, First Floor, Vakkil New Street, Madurai – 625 001, Tamil Nadu, India Email : madurai@sbt.co.in
Nature or description of the instrument creating charge	C and I :1 Agreement of loan fro overall working capital limit dated 23.02.0007 C and I :2: Agreement of hypothecation of goods and assets dated 23.02.2007 C and I 12: Letter regarding the grant of individual limit within the overall working capital limit dated 23.02.2007
Date of the instrument creating charge	23.02.2007
Amount Secure by the charge	Rs. 145.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest : Cash Credit : Same as PLR EPC : Upto 180 days 4% below PLR and beyond 180 days and upto 270 days 1% Below PLR WCDL :Same as PLR Terms of Repayment: On Demand Margin: Raw Materials : 25% Stock in process 33.33% Finished goods 25% Any others – EPC -15% Book debts / receivables upto 90 days 40% beyond 90 days 100%
Short particulars of the Property charged	A first charge on Pari – passu basis by way of hypothecation of the borrowers entire goods, movables and other assets present and future including documents of title to the goods and other assets, such as book debts, outstanding moneys, receivables, claims from any scheme, bills, invoices, documents, contracts, insurance policies, guarantee, engagements, securities, investments and rights on uncalled capital, present and future of such form satisfactory to the bank.
Particulars of the present modification	Overall working capital limit increased from Rs. 85.000 millions to Rs. 145.000 millions. Following are the individual limits sanctioned within the overall working capital limit. Cash credit 24.000 millions EPC 25.000 millions WCDL 36.000 millions Bank Guarantee 60.000 millions

Name of the company	FENNER (INDIA) LIMITED
Presented By	FENNER (INDIA) LIMITED
1) Date and description of instrument creating the change	The following agreement / documents all dated 13.11.2000 executed by Fenner (India) Limited (hereinafter referred to as “the Company” ) in favour of Canara Bank (CB) in respect of : Fund Based facilities: Rs. 140.000 millions Non – Fund Based Credit Facilities : Rs. 160.000 millions
2) Amount secured by the charge/amount owing on the securities of charge	Working capital facilities comprising Fund based limit of Rs. 140.000 millions and Non – Fund based limit of Rs. 160.000 millions aggregating to Rs. 300.000 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	Primary Security: Hypothecation of stock of raw materials, work in progress , semi finished goods, finished goods, stores including stocks at the company’s plants factories , up country godowns, depots and receivables. Hypothecation of stocks of raw materials , work in progress and fished goods meant for exports against lodgment of orders / to be supported by LCs to be received thereafter; having paripassu first charge with other banks from whom the Company avails Working Capital Credit facilities. Collateral Security: On the fixed assets of the company having the written down value of Rs. 0.803 millions (as per PBS 31.03.2000) as second charge on paripassu basis with the banks from whom the Company avails working capital / Credit facilities.
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of CB having agreed – to grant working capital / credit facilites as referred in item -2 above as contained in the agreement / documents referred in item -1 above , inter alia as follows: The CBN shall have second charge on paripassu basis on the primary security aforementioned with the banks from whom the Company avails the Working capital / Credit facilities. The CB shall have second charge against the collateral security aforementioned on paripassu basis with banks from whom the Company avails working capitals / Credit facilities.
5) Name and Address and description of the person entitled to the charge.	Canara Bank Grand Central Branch 118-B, West Perumal Maistry Street, Madurai – 625 001
6) Date and brief description of instrument modifying the charge	NA
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.	NA

WEBSITE DETAILS:

Subject is the largest manufacturer of Industrial and Automotive V-Belts, Oilseals and Power Transmission Accessories in India. With a large Sales and Distribution network across the country and a strong brand image, Fenner is undoubtedly the market leader in India.

The Company emphasis on quality and customer satisfaction has earned respect and endorsement from major OEMs. The company is a pioneer and has been a market leader both in terms of new product development and market reach. The Company has regularly introduced state-of-the-art latest products both for domestic and international markets. Today eight out of ten automobiles in India have at least one Fenner Belt or Oil Seal in it.

Apart from being the domestic market leader, subject is also one of the big exporters of V-Belts and Auto Belts in the country with products being exported to over 40 countries, including North and South America, Europe, Australia and South Africa.

Manufacturing and Quality Systems:

Fenner India has 3 state-of-art manufacturing facilities at Madurai, Chennai and Hyderabad. The first manufacturing facility was established in 1955 in the 'Temple City' Madurai, southern India, which is the largest facility today.

In-process Quality control, careful choice of raw materials, technological upgradation has ensured complete product reliability and high levels of customer satisfaction.

Best Manufacturing Practices followed by Fenner India:

· Lean Manufacturing

· TQM

· Poka Yoke (Error Proof)]

· 5S

Technology:

Their Technology Center employs state-of-the-art techniques, starting from simulation studies using Finite Element Analysis, all the way to validation through rigorous indoor testing. The Center has the best in class testing facilities for Raw Materials, In-Process components and Finished Products like Industrial and Automotive Wrapped Belts, Raw Edge Cogged Belts, Poly-V belts, Timing Belts and various types of Oil Seals.

Apart from product development, their experts also work closely with OEMs for Continuous Upgradation of belt drive system and provide sealing solutions.

Their technological efforts have made it possible for them to remain fully competitive in the global market by continuous development of a large range of new products such as Poly F Plus belts, Heavy Duty belts, Kevlar Cord belts, EPDM belts and many others

Products:

For Indian Markets

Industrial Power Transmission Products

Belts

Power Transmission Accessories

Automotive Products

OEM

Replacement Market

· Automotive Belts

· Oilseals

For customers outside India

Industrial Power Transmission Products

Belts

Power Transmission Accessories

Agricultural Products

Belts

Automotive Products

Belts

Oilseals

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.39.97
UK Pound	1	Rs.79.53
Euro	1	Rs.63.09

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--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	NO
TOTAL		72

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