MIRA INFORM REPORT

Report Date :

23.06.2008

IDENTIFICATION DETAILS

Name :	EMRALD RESILIENT TYRE MANUFACTURERS PRIVATE LIMITED
Registered Office :	KRV House, No. 3, 9^th Lane, Shastri Nagar, Chennai 600020, Tamilnadu
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	27.03.2002
Com. Reg. No.:	048665
CIN No.: [Company Identification No.]	U25111TN2002PTC048665
TAN No.: [Tax Deduction & Collection Account No.]	CHEE03011B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Tyres and Tubes

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 :	USD 290000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company meeting its normal commitments timeously. Trade relations are fair. Business is active. The company can be considered good for normal business dealings.

INFORMATION PARTED BY

Name :	Mr. Shankar Ganesh
Designation :	Accounts Manager
Date :	21.06.2008

LOCATIONS

Registered Office :	KRV House, No. 3, 9^th Lane, Shastri Nagar, Chennai 600020, Tamilnadu, India
Tel. No.:	91-44-24460604 / 24460530 / 26256269 / 26245694
E-Mail :	thirupathi@eth.net emraldgreckster@vsnl.net
Website :	www.greckster.com
Area :	1300 Sq. fts.
Location :	Rented
Corporate Office :	Plot No. 79, Export Promotion Industrial Park, Sipcort Indust. Comp, Gummidipoondi 601201, Tamilnadu, India
Factory:	Sidco Industrial Estate, Ambattur, Madras - 600 098. India
Tel. No.:	91-44-26257714
Fax No.:	91-44-26257714
E-mail:	sales@greckster.com

DIRECTORS

Name :	Mr. K. Ganesan
Designation :	Director
Address :	New No. 10, North Street, VP Colony, Aynavaram, Chennai 600023, Tamilnadu, India
Date of Birth/Age :	25.10.1965
Date of Appointment :	24.05.2002
Name :	Mr. R. Ravichandran
Designation :	Director
Address :	A9, Balaji Arcade, 134-A, Arcot Road, Virugambakkam, Chennai 600092, Tamilnadu, India
Date of Birth/Age :	16.09.1959
Date of Appointment :	24.05.2002
Name :	Mr. V. Thirupathi
Designation :	Director
Address :	No. 3, 9^th Lane, Shasti Nagar, Adyar, Chennai 600020, Tamilnadu, India
Date of Birth/Age :	16.09.1948
Date of Appointment :	24.05.2002
Name :	Mr. V. T. Chandrashekharan
Designation :	Director
Address :	No. 3, 9^th Lane, Shasti Nagar, Adyar, Chennai 600020, Tamilnadu, India
Date of Birth/Age :	26.03.1975
Date of Appointment :	27.03.2002
Name :	Mr. T. Kannaki
Designation :	Director
Address :	No. 3, 9^th Lane, Shasti Nagar, Adyar, Chennai 600020, Tamilnadu, India
Date of Birth/Age :	19.05.1951
Date of Appointment :	27.03.2002
Date of Ceasing:	24.03.2003
Name :	Mr. R. Subramanian
Designation :	Director
Address :	No. 10, Chandrasekharan Street, Iyyanar Nagar, Pondicherry 605013
Date of Birth/Age :	23.01.1958
Date of Appointment :	24.05.2002
Name :	D. Eswarakrishnan
Designation :	Director
Address :	M 10C, Central Avenue, MKB Nagar, Chennai 600039, Tamilnadu, India
Date of Birth/Age :	04.04.1970
Date of Appointment :	24.05.2002

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

[As on 28.09.2005]

Names of Shareholders	No. of Shares
T. Kannaki	320000
V. Thirupathi	220000
V. T. Chandrashekharan	70000
R. Subramanian	55000
S Vijayalakshmi	50000
C. Kalidasan	20000
K. Sugunavalli	20000
L Chittal	50000
R. M. Theivarayan	6000
V. T. Srinivas	15000
Bharani Ravichandran	10000
R. Ravichandran	50000
D. Eswarakrishnan	50000
Total	936000
Name of Allottee [As on 10.10.2007]	No. of Shares
Mustang Trading and Investments Private Limited	425000
Equity Share Break-up [As on 31.03.2007]	Percentage of Holding
Directors or relatives of the Directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Tyres and Tubes
Exports :
Countries :	Russia Panama Egypt
Imports :
Countries :	Sharjaha Belgium Sri Lanka
Terms :
Selling :	L/C and Advance Payment
Purchasing :	L/C

GENERAL INFORMATION

No. of Employees :	330 [In Office 80 + In Factory 250]
Bankers :	State Bank of India Leather and International Branch, MVJ Towers, 177/1, P. H. Road, Kilpauk, Chennai 600010, Tamilnadu, India
Facilities :	C/C Rs. 20.000 Millions EPC Rs. 60.000 Millions

Banking Relations :	Satisfactory
Auditors :
Name :	Rajini and Company Chartered Accountants
Address :	261, Thamuchetty Street, Chennia 600001, Tamilnadu, India
Associates/Subsidiaries :	Mosq Industrial Rubber Product

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs. 10/- each	Rs. 90.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3550000	Equity Shares	Rs. 10/- each	Rs. 35.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		35.500	30.900	9.360
2] Share Application Money		0.000	0.000	4.875
3] Reserves & Surplus		23.740	10.600	4.941
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		59.240	41.500	19.176
LOAN FUNDS
1] Secured Loans		212.827	62.317	29.954
2] Unsecured Loans		4.059	2.991	7.145
TOTAL BORROWING		216.886	65.308	37.099
DEFERRED TAX LIABILITIES		6.153	1.615	1.211
TOTAL		282.279	108.423	57.486
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		199.974	46.635	32.432
Capital work-in-progress		2.831	6.467	0.425
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	18.645	11.366
	Sundry Debtors	0.000	29.702	17.106
	Cash & Bank Balances	0.000	1.383	0.543
	Other Current Assets	0.000	13.713	3.152
	Loans & Advances	129.585	20.820	4.135
Total Current Assets		129.585	84.263	36.302
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	50.576	29.919	12.566
	Provisions	0.000	0.000	0.000
Total Current Liabilities		50.576	29.919	12.566
Net Current Assets		79.009	54.344	23.736
MISCELLANEOUS EXPENSES		0.465	0.977	0.893
TOTAL		282.279	108.423	57.486

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt Equity Ratio (Total Liability/Networth)	4.51	2.29	2.58
Current Ratio (Current Asset/Current Liability)	2.56	2.82	2.88

LOCAL AGENCY FURTHER INFORMATION

Trade References:

• Hitech Carbon, Gummidipoondi
• TVC Logistic

Form 8

This form is for	Modification of charge
Charge identification number of the modified	90290918
Corporate identity number of the company	U25111TN2002PTC048665
Name of the company	EMRALD RESILIENT TYRE MANUFACTURERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	KRV House, No. 3, 9^th Lane, Shastri Nagar, Chennai 600020, Tamilnadu, India
Type of charge	Immovable property Movable property Others
Particular of charge holder	State Bank of India Leather and International Branch, MVJ Towers, 177/1, P. H. Road, Kilpauk, Chennai 600010, Tamilnadu, India
Nature of description of the instrument creating or modifying the charge	Supplemental Agreement of Loan for increase in the overall limit in Form C1-A. Supplemental agreement of hypothecaiton of godos and assets for increase in the overall limit in Form C2-A. Letter regarding the grant of individual limits within the overall limit in Form C-5. No instrument. Extension of Equitable mortgage by deposit of title deeds of company’s immovable property.
Date of instrument Creating the charge	28.11.2007
Amount secured by the charge	Rs. 277.600 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Terms of Repayment The term loan of Rs. 28.500 Millions is to be repaid on 60 monthly installments of Rs. 0.475 Millions each from April 2007. Margin Extent and Operation of the charge As per agreement
Short particulars of the property charged	Hypothecation and extension of equitable mortgage
Date of latest modification prior to the present modification	29.05.2007
Particulars of the present modification	The various credit facilities enjoyed by the company now has been enhanced to Rs. 277.600 Millions and hypothecation and extension of equitable mortgage

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 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. 42.97
UK Pound	1	Rs. 84.75
Euro	1	Rs. 66.72

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		45

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