MIRA INFORM REPORT

Report Date :

11.10.2008

IDENTIFICATION DETAILS

Name :	MEENAKSHI POLYMERS PRIVATE LIMITED
Registered Office :	36, Sabarwal Market, Sadar Bazar, Delhi - 110006
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	16.07.1986
Com. Reg. No.:	55-24860
CIN No.: [Company Identification No.]	U74899DL1986PTC024860
TAN No.: [Tax Deduction & Collection Account No.]	DELM08349F
PAN No.: [Permanent Account No.]	AAACM3392G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Suppliers and Exporters of Automobile Accessories and Parts

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 450000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	36, Sabarwal Market, Sadar Bazar, Delhi – 110006, India
Tel. No.:	91-11-23675475
Mobile No.:	91-9818596808 / 9910398570 / 9810020882
E-Mail:	mppl-2@sify.com avin_bhatia@yahoo.co.in
Web-Site:	http://Meenakshipolymers.tradeindia.com
Corporate Office :	E-478, Greater Kailash – 2, New Delhi – 110 048, India
Tel. No.:	91-11-29214034
Fax No.:	91-11-29217127
Factory :	Plot No. 33, Sector 34, Gurgaon – 122001, Haryana
Tel. No.:	91-124-2373639 / 2210432 / 5031621
Fax No.:	91-124-2210432
Mobile No.:	91-9910398570 / 9810081999
Branches :	· Located at Birlova, Maneshwar, Haryana, India · Located at Dadri, Uttar Pradesh, India
Two Wheelers Division :	Soni Traders
Tel. No.:	91-11-28755709
Fax No.:	91-11-28752049
Mobile No.:	91-9818596810 / 9312328921
E-Mail :	mppldel@sify.com
Bus Seat Division :	A-81, Okhla Industrial Area, Phase – II, New Delhi – 110 020, India
Tel. No.:	91-11-41709280 / 81
Fax No.:	91-11-41707370
Mobile No.:	91-9910398586 / 9910398588
E-Mail :	mppl_okhla@yahoo.com

DIRECTORS

Name :	Mrs. Anita Soni
Designation :	Director
Address :	81, The Mall, Civil Lines, Ludhiana – 141001, Punjab, India
Date of Birth/Age :	27.01.1959
Qualification :	Graduate
Date of Appointment :	01.08.1996
Name :	Mrs. Punam Soni
Designation :	Director
Address :	81, The Mall, Civil Lines, Ludhiana – 141001, Punjab, India
Date of Birth/Age :	01.01.1961
Qualification :	Graduate
Date of Appointment :	01.08.1991
Name :	Mr. Sanjeev Soni
Designation :	Director
Address :	81, The Mall, Civil Lines, Ludhiana – 141001, Punjab, India
Date of Birth/Age :	15.10.1957
Qualification :	Graduate
Date of Appointment :	01.06.2006
Name :	Mr. Raj Kumar Soni
Designation :	Director
Address :	81 The Mall, Ludhiana – 141001, Punjab, India
Date of Birth/Age :	01.03.1926
Date of Appointment :	24.01.2007
Other Directorship :	· A K Silk Woollen Mills Limited U17113DL1962PLC003737 · Murari Woollen Mills Limited U17113DL1966PLC004686 · Jabco Industries Private Limited U74899DL1962PTC003763 · Kaam Dhenu Wool Private Limited U17117DL1996PTC076942

KEY EXECUTIVES

Name :	Mr. Bhupesh Wadhwa
Designation :	Manager
Name :	Mr. Deepak Kumar
Designation :	Company Secretary
Address :	S.C.O. 111, Ground Floor, Mehak Tower, Near Kailash Cinema, Civil Lines, Ludhiana – 141 001, Punjab, India
Name :	Rajnish K Sharma and Associates
Designation :	Company Secretary
Address :	C/o. Khanna Ashwani and Associates Off. No – 4, 2^nd Floor, Industrial Estate Road, Guru Har Rai Complex, Near Manju Theatre, Ludhiana
Mobile No.:	91-9814111799

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 31.03.2007)

Names of Shareholders	No. of Shares	Percentage of Holding
Anita Soni	3950	29.92
Punam Soni	4645	35.19
Arjun Soni	1700	12.88
Konal Soni	850	6.44
Rahul Soni	850	6.44
Bharat Soni	1005	7.61
Raj Kumar and Sons	200	1.51
Total	13200	100.00

Equity shares Breakup (percentage of total equity)

(As on 29.09.2007)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Suppliers and Exporters of Automobile Accessories and Parts

Products :

· Two Wheeler Seat Cushion (P.U. Bare Foam)

· Two Wheeler Seat Plates (Sheet Metal)

· Two Wheeler Seat Covers

· Two Wheeler Seat Assy. Component

· Bicycle Seat Cushion

· Tractor Seats

· Bus Seat Cushion

· Polyurethane Foam

· Seat Covers

· Seat Assembly

· PUF Panel

· Metal Plate Base

· Side Box and Bag

· Assembled Bus Seat

· Pressure Die Casting Components

Foams for Bus Seats

· Push Back

· Fixed

· Executive Bus seat

· City Bus

· Push Back (alt.variant)

PU foam for motorcycles

· Bullet (special)

· Bullet new

· Bullet old

·

Name of the Product	Code Number
Polymers	375.8

Imports :

Products :

Chemicals

Countries :

· Japan

· Hongkong

· Germany

· Netherland

· Korea

· Singapore

· China

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

GENERAL INFORMATION

Customers :	· Hero Honda Motors Limited · Hero Puch Limited, Ghaziabad – 100% · JCBL, Ludhiana · Grand Slam, Sahibabad · Open Replacement Markets · Monto Motors Limited · Swaraj Mazda · General Electric Motors of India
No. of Employees :	Around 500
Bankers :	· State Bank of India · HDFC Bank

Banking Relations :	Satisfactory
Financial Institution :	Hero Honda Finance Limited 34 Community Centre Basant Lokvasant Lok, Vasant Vihar, New Delhi – 110057, India
Auditors :
Name :	Nanda and Bhatia Chartered Accountants
Address :	Red Cross Bhawan, The Mall, Ludhiana – 141001, Punjab, India
Tel. No.:	91-124-2444948 / 2449986
Associates/Subsidiaries :	A K Silk Woollen Mills Limited U17113DL1962PLC003737 Murari Woollen Mills Limited U17113DL1966PLC004686 Jabco Industries Private Limited U74899DL1962PTC003763 Kaam Dhenu Wool Private Limited U17117DL1996PTC076942 Govind Industries Soni Traders Raj Kumar Soni and Sons HUF

CAPITAL STRUCTURE

(As on 29.09.2007)

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
13200	Equity Shares	Rs.100 /- each	Rs.1.320 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		1.320	1.320	1.320
2] Share Application Money		7.989	7.000	0.000
3] Reserves & Surplus		80.176	63.574	49.517
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		89.485	71.894	50.837
LOAN FUNDS
1] Secured Loans		101.764	72.643	43.329
2] Unsecured Loans		74.627	48.737	4.241
TOTAL BORROWING		176.391	121.380	47.570
DEFERRED TAX LIABILITIES		6.531	5.737	5.055
TOTAL		272.407	199.011	103.462
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		160.457	109.627	75.123
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	29.924	20.049	25.965
	Sundry Debtors	23.436	25.239	10.886
	Cash & Bank Balances	119.345	86.950	53.168
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	67.989	11.980	11.345
Total Current Assets		240.694	144.218	101.364
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	120.929	47.614	66.285
	Provisions	7.815	7.220	6.740
Total Current Liabilities		128.744	54.834	73.025
Net Current Assets		111.950	89.384	28.339
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		272.407	199.011	103.462

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		607.331	507.658	416.749
Other Income		2.752	1.937	0.054
Total Income		610.083	509.595	416.803
Profit/(Loss) Before Tax		25.209	21.956	21.881
Provision for Taxation		8.607	7.899	8.065
Profit/(Loss) After Tax		16.602	14.057	13.816
Expenditures :
	Cost of Material	0.000	0.000	318.263
	Manufacturing Expenses	0.000	0.000	25.391
	Establishment	0.000	0.000	19.446
	Administration Expenses	0.000	0.000	25.932
	Sales and Distribution Expenses	0.000	0.000	1.714
	Financial Charge	0.000	0.000	1.164
	Depreciation & Amortization	5.472	3.976	0.000
	Other Expenditure	579.402	483.663	0.000
Total Expenditure		584.874	487.639	391.910

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.72	2.76	3.31
Net Profit Margin (PBT/Sales)	(%)	4.15	4.32	5.25
Return on Total Assets (PBT/Total Assets}	(%)	6.28	8.65	12.40
Return on Investment (ROI) (PBT/Networth)		0.28	0.31	0.43
Debt Equity Ratio (Total Liability/Networth)		3.41	2.45	2.37
Current Ratio (Current Asset/Current Liability)		1.87	2.63	1.39

LOCAL AGENCY FURTHER INFORMATION

Trade References:

• Hero Honda
• Swraj Majdha
• Gemmy Capital

Fixed Assets

• Land
• Building
• Plant and Machinery
• Moulds
• Tools and Dies
• Generator Set
• Lab Equipment
• Furniture and Fixture
• Computers
• Vehicles
• Office Equipments
• Capital Work In Progress

Bankers Charges Report as per Registry

Name of the company	MEENAKSHI POLYMERS PRIVATE LIMITED
1) Date and description of instrument creating the change	1] Agreement of Hypothecation of Plant and Machinery dated 1^stJune 2006 – Rs. 15.000 Millions
2) Amount secured by the charge/amount owing on the securities of charge	Rs 15.000 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	1] Hypothecation of Plant and Machinery.
4) Name and Address and description of the person entitled to the charge.	Hero Honda Finance Limited 34 Community Centre, Basant Lokvasant Lok, Vasan Vihar, New Delhi, Delhi - 110057
5) Date and brief description of instrument modifying the charge	Deed of Hypothecation dated 1^stJune 2006

This form is for	Creation of charge
Corporate identity number of the company	U74899DL1986PTC024860
Name of the company	MEENAKSHI POLYMERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	36, Sabarwal Market, Sadar Bazar, Delhi – 110006, India
Type of charge	Movable Property
Particular of charge holder	Hero Honda Finance Limited 34 Community Centre Basant Lokvasant Lok Vasant Vihar New Delhi – 110057, India rohitpuri@herohonda.com
Nature of description of the instrument creating or modifying the charge	Agreement dated 28^th July, 2008
Date of instrument Creating the charge	28.07.2008
Amount secured by the charge	Rs.8.671 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 6.81% flat per annum for 36 months. Terms of repayment EMI Amounting to Rs.0.240 million for 36 months Margin As per agreement Extent operation of the charge · The charge inter alia operates as security by way of first and exclusive charge in favour of the Company on all borrower’s hypothecated assets. · The security hereby created shall operate as continuing security for the balance due to the company EMI (payable in arrear).
Short particulars of the property charged	· Pressure Die Casting Zitai Precision 250 tons. · CNC Lathe Machine · Paramawick Greecing · Furnace Machine The machine will be located at borrowers premises.

Quality Assessment

ISO 9001:2000 and ISO 14001:2004 Certified Company

As Per Website

Subject was established in the year 1987. Today, they are the unmatched manufacturer and exporter of Two wheeler Seat Cushion (P.U. Bare Foam), Two Wheeler Seat Plates (Sheet Metal), Two Wheeler Seat Covers, Two Wheeler Seat Assy. Component, Bicycle Seat Cushion, Tractor Seats, Bus Seat Cushion and Sofa/Chair Cushions. The products manufactured by them are globally recognized for the quality and durability. They have acknowledge the needs of their customers and have served them with the quality and variety of products. They follow a customer centric approach and their name has become synonymous with the quality and reliability. All their quality procedures match the national as well as international quality standards Their focus on delivering high quality products along with proactive client services have positioned them way ahead of their competitors in the industry.

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.48.72
UK Pound	1	Rs.82.17
Euro	1	Rs.65.90

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	NO
--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.	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