MIRA INFORM REPORT

Report Date :

03.06.2008

IDENTIFICATION DETAILS

Name :	INDO AUSTRALIAN HOSE MANUFACTURING PRIVATE LIMITED

Registered Office :	C-2, NS-3, 1^st Phase, Adityapur Industrial Area, Adityapur, Jamshedpur – 832109, Jharkhand

Country :	India

Financials (as on) :	31.03.2007

Date of Incorporation :	02.06.2005

Com. Reg. No.:	03-11381

CIN No.: [Company Identification No.]	U23203JH2005PTC011381

TAN No.: [Tax Deduction & Collection Account No.]	RCHI00185D

PAN No.: [Permanent Account No.]	AABCI3809F

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Air Brake Rubber Hoses and LPG Hoses

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	USD 67564

Status :	Good

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is a well-established and reputed company having satisfactory track records and a part of Medium Sized Taurus Group. 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. Input for this report was parted by Mr. Gujral, Accountant of the company.

LOCATIONS

Registered Office/ Factory :	C-2, NS-3, 1^st Phase, Adityapur Industrial Area, Adityapur, Jamshedpur – 832109, Jharkhand, India
Tel. No.:	91-657-3091156
Fax No.:	91-657-2225485
Email :	ramakant_rkg@hotmail.com rahul@taurusesdan.com rishi@taurusesdan.com taurusflex@vsnl.com
Website :	http://www.taurusesdan.com
Locations :	Industrial (Owned)

Factory :	S. No. 662, Pune Mumbai Road I, Telegaon, Dabhade, Pune – 410506, Maharashtra, India
Tel. No.:	91-20-3091156
Fax No.:	91-20-2225485
Fax No.:	rahul@taurusesdan.com
Website :	http://www.taurusesdan.com

DIRECTORS

Name :	Mr. Rishi Kshettry
Designation :	Director
Address :	23-C H Area, Bistupur, Jamshedpur East, Singhbhum, Jharkhand – 831001, India
Date of Birth/Age:	24.09.1973
Date of appointment :	02.06.2005

Name :	Mr. Rahul Kshettry
Designation :	Director
Address :	12-C H Area, Bistupur, Jamshedpur East, Singhbhum, Jharkhand – 831001, India
Date of Birth/Age:	11.05.1975
Date of appointment :	02.06.2005
Mobile No. :	91-9334616139

Name :	Mr. Ravi Kshettry
Designation :	Director
Address :	44, Ramdulal Sarkar Street, Kolkata – 700026, West Bengal, India
Date of Birth/Age:	29.11.1940
Date of appointment :	15.07.2005

Name :	Mr. Emmanuel Elizondo
Designation :	Director
Address :	No.2 Portofino Drive, North Crane Victoria, Australia
Date of Birth/Age:	19.12.1955
Date of appointment :	15.07.2005

Name :	Ms. Ruchi Kshettry
Designation :	Director
Address :	23-C H Area, Bistupur, Jamshedpur East, Singhbhum, Jharkhand – 831001, India
Date of Birth/Age:	30.01.1974
Date of appointment :	15.07.2005

Name :	Mr. Bert Ekenaike
Designation :	Director
Address :	11 Broadwalk Grove, Endeavour Hills, Victoria, Australia
Date of Birth/Age:	04.07.1946
Date of appointment :	15.07.2005

Name :	Mr. lan Willimson
Designation :	Director
Address :	Sandringhan NECB, No.1, Royal Avenue, Victoria, Australia
Date of Birth/Age:	13.12.1940
Date of appointment :	15.07.2005

KEY EXECUTIVES

Name :	Ms. Rajashree Singh
Designation :	Company Secretary
Address :	15-B, Ganesh Vihar, Bhatia Basti, Kadma – 831005, Jamshedpur
Tel No. :	91-657-6572707
Email :	raj_suvansh16@yahoo.co.in

SHAREHOLDING PATTERN

(As on 31.03.2007)

Name of Shareholders	No of Shares	Percentage Holding

Mr. Rishi Kshettry	120000	10.00
Mr. Rahul Kshettry	120000	10.00
Mr. Ruchi Kshettry	120000	10.00
Mr. Nirmal Kumar	6000	0.50
Mr. Gourav Kshettry	117000	9.75
Mr. Tulika Kshettry	117000	9.75
Mr. Lan Williamson	240000	20.00
Mr. Bert Ekenaike	240000	20.00
Mr. Emmanuel Elizondo	120000	10.00

Total	1200000	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Air Brake Rubber Hoses and LPG Hoses

Products :	Air Brake Coiled Tubing as per DIN 74324 · U Series · P Series · E Series · Weld Spatter · Imperial Nylon Tubing as per BS 5409 Part 1 · Polyurethane Coiled Tubing · Din and Sae Series Fuel-House as per DIN 73379 · Type B · Type C · Type E · Type PZ · Type PZC · Type PZK · Type PZA Rubber Braided Hoses · SAE 100R1 AT – DIN 20022 A SN Hose · SAE 100R1 AT – High Temperature Hose · Air Brake Rubber Hose · Air Brake Rubber Hose as per DIN 74310 · Vacuum Brake Hose · LPG Hose · Welding Hose · Water Hose Fittings · Adapter for Coiled Hoses and Tubing · Drain Valve · Male Test Point Sleeves Type H · Nut · Light Weight Alloy Palm Coupling · Tube Support For Plastic Tubling · Spiral Wrap · Electrical Coil · Colour Anti – Kink Tail · TC-1 Hose Cutter

Imports :
Products :	· Raw Materials · Rubber Products
Countries :	· Australia · Europe

Exports :
Products :	· All Products
Countries :	· Belgium · Europe

GENERAL INFORMATION

Suppliers :	· Bihar Electric and Refrigeration Company Limited · Bharat Petroleum Corporation Limited · BVQI India Private Limited · Advance chemical Company · Hindustan Petroleum Corporation Limited · Polycab Premiers Private Limited

Customers :	· Gauder and Company, SA Belgium · IAHMPL, Bangalore · Ekta Enterprises · Garhwa Gas Agency · BSFCS Limited · Blur Flames HP Gas Agency, Ranchi · Birsa Indane Agency, Ranchi · Laxmi Agency · Mukti Gas Service · Precision Automotive Company Private Limited · Rekha Bharat gas Service · Indian Oil Corporation · Jyoti Jwal, Dhanbad · Jibasia Gas Services · Mukti Gas Services · Super Flex Engineering and Polly Private Limited · Taturus Flexibles

No. of Employees :	250

Bankers :	· State Bank of India, Commercial Branch, Pratap Tower, Bistupur, Jamshedpur – 831001, Jharkhand, India · Union Bank of India, SSI Branch, Bistupur, Jamshedpur – 831001, Bihar, India · HDFC Bank Limited


Banking Relations :	Satisfactory

Auditors :
Name :	P S Banerjee and Associates Chartered Accountants
Address :	146, Sonari West Layout, Road No. D, Sonari, Jamshedpur – 831001, Jharkhand, India

Associates/Subsidiaries :	· Taurus Flexibles · Taurus Thermoplast · Taurus Esdan Hydraulics Private Limited Address : 63 C, Phase II, Industrial Area, Adityapur, Jamshedpur – 832109, Jharkhand, India Tel No. : 91-657-2200865 / 2200744 Fax No. : 91-657-2225485 Email : taurusflex@vsnl.com Website : http://www.taurusesdan.com

CAPITAL STRUCTURE

As on 30.09.2006

Authorised Capital :

No. of Shares	Type	Value	Amount

3000000	Equity Shares	Rs. 10/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

1200000	Equity Shares	Rs. 10/- each	Rs. 12.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		12.000	12.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		4.891	0.595
4] (Accumulated Losses)		0.000	0.000
NETWORTH		16.891	12.595
LOAN FUNDS
1] Secured Loans		228.180	33.695
2] Unsecured Loans		25.805	11.251
TOTAL BORROWING		253.985	44.946
DEFERRED TAX LIABILITIES		5.085	0.914

TOTAL		275.961	58.455

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		153.803	34.881
Capital work-in-progress		0.000	0.000

INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	44.415	14.863
	Sundry Debtors	34.405	11.438
	Cash & Bank Balances	2.942	0.097
	Other Current Assets	0.000	0.000
	Loans & Advances	79.798	5.893
Total Current Assets		161.560	32.291
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	38.091	8.717
	Provisions	1.311
Total Current Liabilities		39.402	8.717
Net Current Assets		122.158	23.574

MISCELLANEOUS EXPENSES		0.000	0.000

TOTAL		275.961	58.455

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008 [Expected]	31.03.2007	31.03.2006
Sales Turnover		880.000	149.553	52.420
Other Income			0.198	0.121
Total Income			149.751	52.541

Profit/(Loss) Before Tax			9.780	2.229
Provision for Taxation			5.483	1.634
Profit/(Loss) After Tax			4.297	0.595

Expenditures :		NA
	Cost of Goods Sold		75.493	28.373
	Selling and Administrative Expenses		62.330	17.764
	Payment to Auditors		0.000	0.018
	Interest		0.000	2.630
	Depreciation & Amortization		2.148	1.406
Total Expenditure			139.971	50.191

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006
PAT / Total Income	(%)	2.87	1.13

Net Profit Margin (PBT/Sales)	(%)	6.54	4.25

Return on Total Assets (PBT/Total Assets}	(%)	3.10	3.32

Return on Investment (ROI) (PBT/Networth)		0.58	0.18

Debt Equity Ratio (Total Liability/Networth)		17.37	4.26

Current Ratio (Current Asset/Current Liability)		4.10	3.70

LOCAL AGENCY FURTHER INFORMATION

Note:

Taurus Esdan Hydraulics Private Limited and Taudan Auto Components Private Limited merged with this company w. e. f. April 01, 2007

Trade Reference:

· Bihar Electric and Refrigeration Company Limited

· Bharat Petroleum Corporation Limited

· BVQI India Private Limited

· Advance chemical Company

· Hindustan Petroleum Corporation Limited

· Polycab Premiers Private Limited

· Cretions

· Crown Timber and Paper Products

· Ghosh Minerals and Chemicals Company

· Industrial Tools and Equipments

· Medi- Tek International

· M G Polly Coat Private Limited

· National Tube and Alloy Steels Corporations

· Renissance Corrugation Concern

· Tirupti Sales Corporation

· United Machinery Stores Private Limited

· Gauder and Company, SA Belgium

· IAHMPL, Bangalore

· Ekta Enterprises

· Garhwa Gas Agency

· BSFCS Limited

· Blur Flames HP Gas Agency, Ranchi

· Birsa Indane Agency, Ranchi

· Laxmi Agency

· Mukti Gas Service

· Precision Automotive Company Private Limited

· Rekha Bharat gas Service

· Indian Oil Corporation

· Jyoti Jwal, Dhanbad

· Jibasia Gas Services

· Mukti Gas Services

· Super Flex Engineering and Polly Private Limited

· Taturus Flexibles

Form 8:

This form is for	Modification of charge
Charge identification number of the charge to be modified	10020662
Corporate identity number of the company	U23203JH2005PTC011381
Name of the company	INDO AUSTRALIAN HOSE MANUFACTURING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	C-2, NS-3, 1^st Phase, Adityapur Industrial Area, Adityapur, Jamshedpur – 832109, Jharkhand
Type of charge	Immovable Property Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of India Commercial Branch, Pratap Tower, Bistupur, Jamshedpur – 831001 jsr_sbicbjsr@sancharnet.in
Nature of description of the instrument creating or modifying the charge	Sanction Letter List of Plant and Machinery Supplemental Agreement of loan for increase in the overall limits [Form C-1A] Supplemental Agreement of Goods and Assets for increase for increase in the Overall Limit [Form C – 2A] Letter Regarding the Grant of Individual limit within the overall limit [Form C – 5]
Date of instrument Creating the charge	19.05.2007
Amount secured by the charge	Rs.277.600 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit 2 % above SBAR currently 14.75 % EPC 2.75 % below SBAR Currently 10 % p.a. Ash Credit 2 % above SBAR Currently 14.75 % p.a. FBD – Demand Bill and Usance Bill [90 days] – 2.75 % below SBAR Currently 10 % p.a. DDP Cheque – Usance Bill [90-180 days] 1.5 % below SBAR Currently 11.25 % p.a. Term Loan I – 2.5 % above SBAR, Currently 15.25 % p.a. Term Loan II – 2.5 % above SBAR, Currently 15.25 % Stand by line of Credit 1 % above the rate applicable for normal WC Limit Terms of repayment CC Limit – On Demand Term Loan I – In 13 quarterly installments Term Loan Ii – in 19 quarterly installments Margin Raw Material 25 % Stock in process 25 % Finished goods 25 % LC 25 % Book Debts [Domestic 40 %] [Export 25 %] Land and Building / Plant and Machinery [Term Loan] 36.42 % Extent operation of the charge 1^st charge on all the fixed assets including plant and machinery, factory land and building and all current assets including finished goods, stock and raw materials of the company 2^nd charge on the factory land situated at Pune of Taurus Flexibles Private Limited [on which the bank already has a 1^st charge on term loan granted to them] and 2^nd charge over all fixed and current assets of Taurus Flexibles Private Limited
Short particulars of the property charged	Dist – Saraikela – Kharsawan Industrial Plot No – C – 66, 2^nd Phase, AIADA, Jamshedpur [area 15000 sft] Dist – Saraikela – Kharsawan Industrial Plot No – north of C2 and C3, 1^st Phase, AIADA, Jamshedpur [10000 sft Dist – Saraikela – [W] Industrial Plot No – C 2 & 3, 1^st Phase, AIADA, Jamshedpur [area 30000 sft] Survey No. 408, Hissa No. 6, Vill Talegaon Dabhade, Pune
Date of latest modification prior to the present modification	19.08.2006
Particulars of the present modification	Overall limit enhanced to Rs.277.600 Millions

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.42.24
UK Pound	1	Rs.83.26
Euro	1	Rs.65.58

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	YES
--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