MIRA INFORM REPORT

Report Date :

07.11.2011

IDENTIFICATION DETAILS

Name :	RALSON (INDIA) LIMITED
Registered Office :	J - 38 Udyog Nagar, Rohtak Road, Delhi-110 041
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	30.03.1974
Com. Reg. No.:	55-42836
Capital Investment / Paid-up Capital :	Rs. 45.347 Millions
CIN No.: [Company Identification No.]	U51909DL1974PLC042836
TAN No.: [Tax Deduction & Collection Account No.]	DELR05554D
PAN No.: [Permanent Account No.]	AABCB7995K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers and Exporters of Tyres and Tubes
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (64)

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 4200000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	J-38, Udyog Nagar, Rohtak Road, Delhi-110041, India
Tel. No.:	91-11-25473917/25473918
Fax No.:	91-11-25473918/25473735
E-Mail :	ralsonindia@vsnl.com ho@ralson.com jaspal.bansal@ralson.com info@ralson.com
Website :	www.ralson.com
Area :	10 acres
Corporate Office :	80/182, Rajender Nagar, Industrial Area, Mohan Nagar, Ghaziabad, Punjab, India
Tel. No.:	91-120-3269871
Area :	Owned
Factory :	Ralson Nagar, GT Road, Ludhiana-141003, Punjab, India
Tel. No.:	91-161-2511501-2511510
Fax No.:	91-161-2511511/ 2511512
E-Mail :	ralson.ldh@rmc.sprintrps.ems.vsnl.net.in ho@ralson.com info@ralson.com
Area :	10 acres

DIRECTORS

AS ON 22.09.2010

Name :	Mr. Sanjeev Pahwa
Designation :	Managing Director
Address :	BXX /3192, Gurdev Nagar, Ludhiana-141002, Punjab, India
Date of Birth/Age :	26.12.1966
Date of Appointment :	02.03.1991
DIN No.:	00022674

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L51909DL1982PLC013850	Ram Commercial Enterprises Limited	Director	28-02-91	28-02-91	Active	NO
2	U51909DL1974PLC042836	Ralson (India) Limited	Managing director	01-03-11	02-03-91	Active	NO
3	U65921PB1992PTC011984	Ralco Finance And Investments Private Limited	Director	30-01-92	30-01-92	Active	NO
4	U74899DL1992PTC049432	Ralco Tyres Private Limited	Director	06-07-92	06-07-92	Active	NO
5	U74899DL1992PTC049476	Ralco Tubes Private Limited	Director	08-07-92	08-07-92	Amalgamated	NO
6	U74899DL1989PTC035801	Ralson Communication Technologies Private Limited	Director	26-12-92	26-12-92	Active	NO
7	U65921PB1994PTC015498	Kosani Finance And Investments Private Limited	Director	28-12-94	28-12-94	Active	NO
8	U74899DL1982PTC013275	Shivansi Investments Private Limited	Director	19-01-95	19-01-95	Active	NO
9	U74899DL1992PTC049475	Ralco Rubbers Private Limited	Director	06-12-06	06-12-06	Amalgamated	NO
10	U45201DL2005PTC133260	New World Buildcon Private Limited	Additional director	08-09-08	08-09-08	Active	NO
11	U27100PB2010PLC033930	Vardhman Special Steels Limited	Director	23-07-11	15-03-11	Active	NO

Name :	Mr. Krishna Rani
Designation :	Whole Time Director
Address :	BXX /3192, Gurdev Nagar, Ludhiana-141002, Punjab, India
Date of Birth/Age :	20.08.1940
Date of Appointment :	15.06.1974
DIN No.:	00040241

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51909DL1974PLC042836	Ralson (India) Limited	Whole-time director	01-03-11	15-06-74	Active	NO
2	U74899DL1989PTC035801	Ralson Communication Technologies Private Limited	Director	15-02-91	15-02-91	Active	NO
3	U65921PB1992PTC011984	Ralco Finance And Investments Private Limited	Director	30-01-92	30-01-92	Active	NO
4	U74899DL1992PTC049432	Ralco Tyres Private Limited	Director	06-07-92	06-07-92	Active	NO
5	U74899DL1992PTC049476	Ralco Tubes Private Limited	Director	08-07-92	08-07-92	Amalgamated	NO
6	U74899DL1992PTC049475	Ralco Rubbers Private Limited	Director	08-07-92	08-07-92	Amalgamated	NO
7	U65910PB1994PTC015497	Priya Finlease Private Limited	Director	28-12-94	28-12-94	Amalgamated	NO
8	L74920DL1982PLC145956	Pahwa Traders And Exporters Limited	Director	17-11-97	17-11-97	Amalgamated	NO
9	L67120DL1982PLC014863	Ujjawal Investments And Tradings Limited	Director	17-11-97	17-11-97	Active	NO
10	U74899DL1990PTC063191	Ralson Remedies Private Limited	Director	28-01-08	28-01-08	Active	NO

Name :	Mr. Mohmad Abdul Zahir
Designation :	Director
Address :	Hose No. 95, New Raj Guru Nagar, Ludhiana-142021, Punjab, India
Date of Birth/Age :	18.12.1942
Date of Appointment :	30.01.1986
DIN No.:	00002973

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U35911PB1966PLC002667	Hero Cycles Limited	Director	29-04-82	29-04-82	-	Active	NO
2	U51909DL1974PLC042836	Ralson (India) Limited	Director	30-01-86	30-01-86	-	Active	NO
3	U00000PB1971PLC003012	Highway Industries Limited	Director	06-09-93	06-09-93	24-07-10	Active	NO
4	U74899DL1991PLC046774	Hero FinCorp Limited	Director	30-08-95	30-08-95	-	Active	NO
5	U17115PB1989PLC009524	Sohrab Spinning Mills Limited	Director	19-06-96	19-06-96	-	Active	NO
6	L24116PB1986PLC007030	IOL Chemicals And Pharmaceuticals Limited	Director	30-07-98	30-07-98	-	Active	NO
7	U67120CH2000PLC023244	L S E Securities Limited	Director	28-09-01	28-09-01	19-07-07	Active	NO
8	L72100PB1996PLC017625	Trident Infotech Corporation Limited	Director	10-10-01	10-10-01	-	Amalgamated	NO
9	U35921PB1981PLC004729	Rockman Industries Limited	Director	11-03-02	11-03-02	-	Active	NO
10	U00000PB1994PLC014271	Sunshine Corporation Limited	Director	29-09-07	01-11-06	30-06-10	Amalgamated	NO
11	U74999PB2006PLC030716	Lotus Integrated Texpark Limited	Director	29-09-07	12-01-07	-	Active	NO
12	L72900PB2007PLC030830	Trident Infotech Limited	Director	27-09-08	30-01-08	-	Active	NO
13	U17100PB2005PLC028371	Asian Trading Corporation Limited	Director	30-09-08	16-03-08	30-06-10	Active	NO
14	L35911PB1973PLC003264	Majestic Auto Limited	Director	22-09-09	27-01-09	-	Active	NO
15	L99999PB1990PLC010307	Trident Limited	Director	25-09-10	21-07-10	-	Active	NO
16	U21012PB2007PLC031416	Saber Papers Limited	Director	15-12-10	15-12-10	-	Active	NO

Name :	Mrs. Rachna Pahwa
Designation :	Whole Time Director
Address :	BXX-3192, Gurdev Nagar, Ludhiana-141002, Punjab, India
Date of Birth/Age :	06.06.1972
Date of Appointment :	01.05.2007
DIN No.:	00040157

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U25111PB1992PLC011972	Ralco Enterprises Limited	Director	01-05-07	08-02-95	Active	NO
2	U74899DL1981PTC028413	Ralson Holdings Private Limited	Director	12-11-97	12-11-97	Amalgamated	NO
3	L74920DL1982PLC145956	Pahwa Traders And Exporters Limited	Director	17-11-97	17-11-97	Amalgamated	NO
4	U51909DL1974PLC042836	Ralson (India) Limited	Whole-time director	01-05-07	27-03-98	Active	NO

Name :	Mrs. Priyanka Arora
Designation :	Whole Time Director
Address :	BXX-3192, Gurdev Nagar, Ludhiana-141002, Punjab, India
Date of Birth/Age :	15.10.1973
Date of Appointment :	30.09.1994
DIN No.:	01183819

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74899DL1990PTC063191	Ralson Remedies Private Limited	Director	25-01-92	25-01-92	Active	NO
2	U74899DL1994PTC058151	Kosani Industries Private Limited	Director	30-03-94	30-03-94	Active	NO
3	L67120DL1982PLC014863	Ujjawal Investments And Tradings Limited	Director	11-04-94	11-04-94	Active	NO
4	U51909DL1974PLC042836	Ralson (India) Limited	Director	30-09-94	30-09-94	Active	NO
5	U65921PB1994PTC015498	Kosani Finance And Investments Private Limited	Director	28-12-94	28-12-94	Active	NO
6	U01403DL2011PTC212394	JPH Agro Developers Private Limited	Director	10-01-11	10-01-11	Active	NO

KEY EXECUTIVES

Name :	Mr. Hari Kishan Sharma
Designation :	Secretary
Address :	H. No. 212, Rishi Mohalla, Nawan Shahr-144514, Punjab, India
Date of Birth/Age :	12.03.1938
Date of Appointment :	25.02.2008
PAN No.:	AEHPS4405A

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 22.09.2010

Names of Shareholders	No. of Shares
Krishna Rani	449565
Neeraj Nanda	8
Sanjeev Pahwa	867076
Shivansi Investments Private Limited, India	597332
Ujjwal Investments and Trading Limited, India	479161
Ram Commercial Enterprises Limited, India	861097
Krishna Rani (Sanjeev Pahwa Family Trust)	2800
Krishna Rani (Om Prakash Family Trust)	2800
Krishna Rani (Krishna Rani Family Trust)	2800
Krishna Rani (Priyanka Family Welfare Trust)	2800
Priyanka Arora	58211
Om Prakash Pahwa	2800
Rachna Pahwa	140169
Sanjeev Pahwa	72812
Ralco Finance And Investments Private Limited, India	213958
Kosani Finance And Investments Private Limited, India	702779
Sanjeev Pahwa HUF	62894
Ralson Communication Technologies Private Limited, India	315
Manjul Pahwa	15353
Total	4534730

AS ON 22.09.2010

Equity Shares Break Up	Percentage
Bodies corporate	62.95
Directors or relatives of Directors	37.05
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Tyres and Tubes

Products :

Product Description	ITC Code
Cycle/ Rickshaw Tyres	401150
Cycle/Rickshaw Tubes	401320
Automotive Tyres (Three Wheelers)	4011.90
Automotive Tyres (Two Wheelers)	4011.20
Automotive Tyres (L.C.V)	4011.90
Tractor Tyres	4011.61 and 92
Auto Tubes	4013.00

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Installed Capacity	Actual Production
Cycle Tyres	Pcs	--	31357065
Cycle Tubes	Pcs	--	34309120
Auto Tyres	Pcs Per day	2000	435127
Auto Tubes	Pcs Per day	1000	181724

GENERAL INFORMATION

No. of Employees :

100 (Approximately)

Bankers :

· State Bank of India, Specialized Commercial Branch, Pahwa Hospital Complex, Miller Ganj, Ludhiana-141003, Punjab, India

· Punjab National Bank

· Corporation Bank, Ludhiana

· State Bank of Patiala, Ludhiana

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Banks
A. Cash Credit Limits
a) State Bank of India, Ludhiana	119.914	190.471
b) State Bank of Patiala, Ludhiana	0.000	10.107
c) Corporation Bank, Ludhiana	29.107	51.465
d) Punjab National Bank, Ludhiana	44.784	85.960
(Secured by first pari-passu charge on entire current assets (present and future) and 2^nd charge on fixed assets (present and future) of the company on pari-passu basis with SBI Factors and Commercial Services Private Limited and personal guarantee of two directors)
B. Term Loans
State Bank of India, Ludhiana (secured by 1^st charge on fixed assets of the company and 2^nd Charge on the current assets of the company on pari passu basis and personal guarantee of two directors	0.000	107.063
II) From Others
SBI Factors and Commercial Services Private Limited (Secured by first pari-passu charge on entire current assets (present and future) along with other consortium banks form working capital limits)	0.000	13.405
Total	193.805	458.471
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Trade Deposits	44.096	44.965
From Banks	0.223	1.485
Other Loans and Advances
From Directors	7.305	2.580
From Inter Corporate	6.000	18.100
Total	57.624	67.130

Banking Relations :	--
Financial Institution:	SBI Factors and Commercial Service Private Limited, BXXI-14627, Gandhi Nagar, Near Dholewal Chowk, G. T. Road, Ludhiana-141003, Punjab, India
Auditors :
Name :	Dass Khanna and Company Chartered Accountants
Address :	B-XX-711, 1^st Floor, Pakhowal Road, Guredev Nagar, Ludhiana,-141001, Punjab, India
Pan No.:	AABFD5151G
Other Related Parties :	· Ralco Exports · Ralco Enterprises Limited · Priya Machines Private Limited · Ujjawal Investments and Trading Limited · Nidhi Enterprises · Shivansi Investments Private Limited · Ram Commercial Enterprises Limited · Ralson Communication Technologies Private Limited · DSA Traders Private Limited · Ralco Finance and Investments Private Limited · Ralson Remedies Private Limited · Kosani Industries Private Limited · Kosani Finance and Investment Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
21000000	Equity Shares	Rs.10/- each	Rs. 210.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4534730	Equity Shares	Rs.10/- each	Rs. 45.347 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		45.347	45.347	45.347
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1013.834	748.291	630.739
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1059.181	793.638	676.086
LOAN FUNDS
1] Secured Loans		193.805	458.471	462.029
2] Unsecured Loans		57.624	67.130	104.315
TOTAL BORROWING		251.429	525.601	566.344
DEFERRED TAX LIABILITIES		0.000	1.069	2.647
TOTAL		1310.610	1320.308	1245.077
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		439.631	475.474	395.537
Capital work-in-progress		70.946	21.993	61.495
INVESTMENT		39.447	2.300	2.100
DEFERREX TAX ASSETS		7.254	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	415.330	413.363	461.412
	Sundry Debtors	708.339	805.085	724.702
	Cash & Bank Balances	140.338	140.141	32.176
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	145.355	109.200	107.898
Total Current Assets		1409.362	1467.789	1326.188
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	198.157	191.101	191.178
	Other Current Liabilities	444.844	437.139	328.324
	Provisions	13.029	19.008	20.741
Total Current Liabilities		656.030	647.248	540.243
Net Current Assets		753.332	820.541	785.945
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1310.610	1320.308	1245.077

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	4842.953	4739.784	4142.371
		Other Income	14.838	75.024	21.188
		TOTAL (A)	4857.791	4814.808	4163.559
Less	EXPENSES
		Cost of Material	3102.856	3332.998	2843.650
		Decrease / (Increase) in stock of Finished Goods	97.841	63.751	37.048
		Manufacturing Expenses	430.909	413.204	397.818
		Personnel Expenses	295.411	277.837	266.974
		Administrative Expenses	152.106	74.095	112.496
		Selling and Distribution Expenses	229.867	285.574	255.314
		Excise Duty on Stocks	1.660	2.174	2.250
		TOTAL (B)	4310.650	4449.633	3915.550
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		547.141	365.175	248.009
Less	FINANCIAL EXPENSES (D)		21.043	84.634	65.135
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		526.098	280.541	182.874
Less/ Add	DEPRECIATION/ AMORTISATION (F)		108.224	101.406	87.328
	PROFIT BEFORE TAX (E-F) (G)		417.874	179.135	95.546
Less	TAX (H)		141.677	59.685	35.325
	PROFIT AFTER TAX (G-H) (I)		276.197	119.450	60.221
Less / Add	DEPRECIATION ADJUSTMENTS OF EARLIER YEARS		6.651	0.000	0.000
	TAX ADJUSTMENTS OF EARLIER YEARS		4.003	1.898	1.868
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		146.701	79.149	67.060
Less	APPROPRIATIONS
		Transfer to General Reserve	112.467	50.000	50.000
	BALANCE CARRIED TO THE B/S		299.777	146.701	79.149
	IMPORTS
		Raw Materials	846.727	420.280	409.138
		Stores & Spares	3.512	2.451	3.487
		Capital Goods	42.995	32.455	42.444
		Stock Trading Goods	7.985	0.000	3.843
		Others	0.010	0.000	0.067
	TOTAL IMPORTS		901.229	455.186	458.979
	Earnings Per Share (Rs.)		60.91	26.34	13.28

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.69	2.48	1.45
Net Profit Margin (PBT/Sales)	(%)	8.63	3.78	2.31
Return on Total Assets (PBT/Total Assets}	(%)	22.51	9.22	5.55
Return on Investment (ROI) (PBT/Networth)		0.39	0.23	0.14
Debt Equity Ratio (Total Liability/Networth)		0.86	1.48	1.64
Current Ratio (Current Asset/Current Liability)		2.15	2.27	2.45

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE REVIEW

During the financial year ended March 31, 2010 Company achieved sales of Rs. 4842.953 millions against Rs. 4739.784 millions during the previous year, registering a growth of 2.18 Percent. Operating profit, before interest and depreciation, increased to Rs. 547.141 millions, as against Rs. 365.175 millions during the previous year. Net profit, after providing for interest, depreciation and current and deferred tax increased to Rs. 276.197 millions, as against Rs. 119.450 millions during the previous year.

MARKETING

The financial year 2009-10 has witnessed the severest labour shortage thus hitting the production. In spite of the availability of fully developed infrastructure, the company could not produce as per capacity because of acute labour shortage. But in spite of the labour Crunch, the company achieved a gross turnover of Rs. 4843.000 millions in the year 2009-10 as against a turnover of Rs. 4739.800 millions in the year 2008-09, thus registering a very marginal growth.

In replacement market the company could achieve a turnover of Rs.2600.000 millions in 2009-10 as against a turnover of Rs.2835.900 millions in 2008-09, thus registering a negative growth of 8.32%.

Similarly, in Export market during the year 2009-10 the company achieved a turnover of Rs. 961.400 millions as against a turnover of Rs.1022.300 millions in the year 2008-09, thus registered a negative growth of 5.96%.

Whereas in OEM segment, the turnover achieved during the year 2009-10 was Rs.1281.600 millions as against a turnover of Rs. 881.600 millions in 2008-09, thus registering a growth of 45.37%.

They are sure that in the financial year 2010-11 the company will be able to produce as per the capacity and will definitely achieve better results.

FORM 8

Corporate identity number of the company	U51909DL1974PLC042836
Name of the company	RALSON (INDIA) LIMITED
Address of the registered office or of the principal place of business in India of the company	J-38, Udyog Nagar, Rohtak Road, Delhi-110041, India
This form is for	Creation of charge
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	State Bank of India, Specialized Commercial Branch, Pahwa Hospital Complex, Miller Ganj, Ludhiana-141003, Punjab, India
Nature of instrument creating charge	1. Agreement of Hypothecation of goods and assets. 2. Letter regarding grant of individual limits within the overall limits. 3. Agreement of loan for overall limit
Date of instrument Creating the charge	30.08.2011
Amount secured by the charge	Rs. 70.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest will be charged at 2.90% above Base Rate, present effective rate 12.40% p.a. with monthly rests. Terms of repayment Repayable on demand. Margin Raw Material Imp./Indg. and Spares 25% Stock in process 25% Finished goods 25% Receivables(Domestic) 40% ILC/FLC NIL BG NIL Extent and operation of the charge 100% Other Security Primary: First charge on entire current assets of the company (both present and future) on pari-passu basis. Collateral: First charge on entire fixed assets of the company (both present and future) on pari-passu basis, with consortium banks.
Short particulars of the property charged (Including location of the property)	The whole of the current assets of the company namely, stocks of Raw Materials, stocks in Process, Semi-Finished and Finished goods, Stores and Spares not relating to Plant and Machinery(consumable stores and spares), Bills Receivable and Book Debts and all other movables of the company, both present and future. Land and Building as enumerated and detailed in the Bank's sanction letter No. RM/MSG/72 dated 20.07.2011.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Trade Marks

· Software

· Live Stock

· Vehicles

WEB SITE DETAILS:-

PROFILE

With professional expertise and thoroughness in every operation, Subject today stands tall as India's company in the field of bicycle and Automobile tyres, tubes and bicycle components. Led from the front by Mr. Sanjeev Pahwa Chairman-Cum-Managing Director, Ralson is taping the full potential of booming global market and the promising domestic scenario. Company's turnover has shot up to US $ 100.00 m in 2008 surpassing the industry's annual growth rate.

Subject is the first and only Bicycle Tyre manufacturer in India to be accredited with an ISO 9001 Certification , and it provides the widest possible range of tyres (Nylon and Cotton, Coloured, Gumwall, White wall and Black), tubes (Natural and Butyl rubber) and components, this way ensuring that customer aspirations are always and fully met.

Subject proactive R and D department fuels momentum for growth by continuously developing newer sizes and designs. Company’s attitude to business modernization and expansion has lead to the set up of a separate plant for automobile tyre: Ralson Auto Tyres, which are being manufactured at Doraha (near Ludhiana) with a production presently concentrating on Moped, Scooter, Motorcycle, Three wheeler and LCV tyres. Rubber compounds of Ralson auto tyres have been developed keeping durability, grip and ruggedness in mind, allowing Riders to race or ride on Ralson Tyres confidently both on and off-road. Ralson Auto Tyres have successfully cleared the quality test at Central Institute of Road Transport, Pune. During actual use, they will last as long as the best brands available in tyre market in India. Subject Tyres are being supplied as original equipment in coveted scooter, moped and motorcycle brands.

Subject worldwide Export activity is also developing very quickly: supplying quality tyres, tubes and components to demanding markets abroad is a challenge that Subject has actively taken, with the aim to repeat in the international market the success the company has enjoyed in the domestic market. Subject exports are already enjoyed in Europe, South and Central America, South East Asia, Gulf, Middle East and Africa.

Subject sustainable approach to business completes the picture of a player being fully integrated and long-lasting competitive within both domestic and international business contexts.

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. 49.08
UK Pound	1	Rs. 78.65
Euro	1	Rs. 67.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		64

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.