MIRA INFORM REPORT

Report Date :

05.01.2012

IDENTIFICATION DETAILS

Name :	AVADH RUBBER LIMITED
Registered Office :	B-12, Naderganj Industrial Area Amausi, Lucknow – 226 008, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	21.08.1990
Com. Reg. No.:	20-012199
Capital Investment / Paid-up Capital :	Rs.3.993 millions
CIN No.: [Company Identification No.]	U25191UP1990PLC012199
TAN No.: [Tax Deduction & Collection Account No.]	LKNM03827F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Importer of Rubber Products.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Poor Corporate Governance
Payment Behaviour :	Unknown
Litigation :	--
Comments :	As per government, the status of the company is shown as ‘Dormant’. The management has not filed the financials of the company with the government departments after the year 2006. However, the company management claims that business is very much active. Payments are unknown. The company can be considered for business dealings on a safe and secured 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

INFORMATION PARTED BY (General Details)

Name :	Mr. Abhishek Saraf
Designation :	Director
Name :	Mr. Vijay
Designation :	Personal Assistant
Contact No.:	91-522-2435565
Date :	03.01.2011

LOCATIONS

Registered Office/ Factory 1 :	B-12, Naderganj Industrial Area Amausi, Lucknow – 226 008, Uttar Pradesh, India
Tel. No.:	91-522-2435565/ 2436219
Mobile No.:	91-8009563000 (Mr. Rohit)
Fax No.:	91-522-2436219
E-Mail :	arllko@satyam.net.in
Area :	80000 sq ft
Location :	Owned
Factory 2 :	New Khasra No.104, (Old No.1394), Village Charba, Langha Road, Dehradun – 248 197, Uttrakhand, India
Location :	Owned
Factory 3 :	Plot No.105, Sector 7, IIE Sidcul, Haridwar– 249 407, Uttrakhand, India
Location :	Owned

DIRECTORS

Name :	Mr. Subhash Chandra Saraf
Designation :	Director
Address :	9/1, Lower Rowdon Street, Kolkata – 700 020, West Bengal, India
Date of Birth/Age :	14.06.1947
Qualification :	B.Com
Date of Appointment :	14.08.1999
PAN No.:	ALBPS5555J
Name :	Mr. Abhishek Saraf
Designation :	Director
Address :	9/1, Lower Rowdon Street, Kolkata – 700 020, West Bengal, India
Date of Birth/Age :	23.04.1975
Qualification :	MBA
Date of Appointment :	29.07.1994
PAN No.:	AKLPS3649C
Name :	Ms. Anjali Saraf
Designation :	Director
Address :	17, Damodar Puram, Main Road, Chennai – 600 020, Tamilnadu, India
Date of Birth/Age :	04.02.1956
Qualification :	HSC
Date of Appointment :	10.07.2006
PAN No.:	AFFPA8283B
Other Directorship :	CIN of company: U19201TN1997PLC038844 Name of the company: Sumo Airboss India Limited Designation: Director CIN of company: U25199TN1980PLC008354 Name of the company: Madras Elastomers Limited Designation: Director
Name :	Mr. Rohit Srivastava
Designation :	Director
Date of Birth/Age :	36 Years
Qualification :	B.Com

KEY EXECUTIVES

Name :	Mr. Vijay
Designation :	Personal Assistant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2006

Names of Shareholders	No. of Shares
Kumar R.K.	100
Narayana Ananta	100
Shankaran P.	100
Sharma Chandra Naresh	100
Subhash Chandra Saraf	106580
Saraf Abhishek	52200
Pullman Engineering Company Private Limited, India	40000
Zoom Constructions Holding Company Private Limited, India	52400
Saraf Anjali	86000
Saraf Ch. Subhash	61700
Total	399280

As on 26.09.2006

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	23.14
Directors or relatives of directors	76.76
Other top fifty shareholders	0.10
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Importer of Rubber Products.

Products :

Item Code No. (ITC Code)	4016.09
Product Description	Elatomeric Rubber Pads

v Defence

v Freight Wagons

v Locomotive

v Passenger Coaches

v Tracks and Bridges

Imports :

Products :

Raw Materials

Countries :

v China

v USA

Terms :

Selling :

Cash and Credit (depends)

Purchasing :

Cash and Credit (depends)

PRODUCTION STATUS (AS ON 31.03.2006)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Elatomeric Rubber Moulded Goods	Nos.	N.A.	850000	316172

GENERAL INFORMATION

Suppliers :

v Bayer

Customers :

v Indian Railways

No. of Employees :

300 (Approximately)

Bankers :

Indian Overseas Bank, 3, Vidhan Sabha Marg, Lucknow – 226 001, Uttar Pradesh, India

Facilities :

Secured Loans	31.03.2006 Rs. In Millions	31.03.2005 Rs. In Millions
Indian Overseas Bank, Cash Credit Loan (Secured against hypothecation of stock and book debts, first charge over block of asserts of the company and equitable mortgage over factory land and building of the company at Lucknow and also land of associate company Subhmoti Exports Private Limited at Alandur, Chennai. And also against personal guarantee of directors and corporate guarantee of Subhmot Exports Private Limited.	26.540	17.926
Vehicle Loan (Secured against vehicle and personal guarantee of directors)	1.447	1.857
Total	27.987	19.783

Banking Relations :	--
Auditors :
Name :	Surekha Agarwal and Company Chartered Accountants
Address :	6, Jawahar Lal Nehru Road, 4^th Floor, Kolkata – 700 013, West Bengal, India
Tel. No.:	91-33-22280509/ 22289071
PAN No.:	ACRPA9380Q
Associate Company :	v Pullman Engineering Company Private Limited v S.S. Agencies Private Limited v Sumo Pullman Private Limited v Madras Elastomers Limited v Sumo Airboss India Limited v Kamayani Engineering Company Limited
Subsidiaries :	Subhamoti Finance Private Limited CIN No.: U65999WB1995PTC073391 Subhamati Exports Private Limited CIN No.: U27106WB1995PTC073623

CAPITAL STRUCTURE

As on 26.09.2006

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
399280	Equity Shares	Rs.10/- each	Rs.3.993 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		3.993	3.993	3.993
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		47.441	43.937	40.453
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		51.434	47.930	44.446
LOAN FUNDS
1] Secured Loans		27.987	19.783	17.138
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		27.987	19.783	17.138
DEFERRED TAX LIABILITIES		0.246	0.246	0.246
TOTAL		79.667	67.959	61.830
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.016	9.102	9.079
Capital work-in-progress		4.603	0.000	0.000
INVESTMENT		29.207	28.207	27.707
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.958	9.196	5.072
	Sundry Debtors	26.682	21.374	17.762
	Cash & Bank Balances	7.889	7.946	3.142
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	43.394	23.885	31.556
Total Current Assets		91.923	62.401	57.532
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	56.607	30.784	31.622
	Other Current Liabilities	1.897	0.967	0.866
	Provisions	0.762	0.000	0.000
Total Current Liabilities		59.266	31.751	32.488
Net Current Assets		32.657	30.650	25.044
MISCELLANEOUS EXPENSES		0.184	0.000	0.000
TOTAL		79.667	67.959	61.830

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2006	31.03.2005	31.03.2004
	SALES
		Sales	127.363	99.481	82.041
		Miscellaneous Income	0.765	0.186	0.422
		TOTAL (A)	128.128	99.667	82.463
Less	EXPENSES
		Increase/ Decrease in Stock	(1.446)	(1.009)	0.316
		Material & Manufacturing Expenses	87.992	79.527	38.035
		Personnel Expenses	4.091	3.952	3.803
		Administrative, Selling & Other Expenses	29.661	9.963	23.615
		Excise Duty/ Service Tax	0.010	0.000	11.316
		TOTAL (B)	120.308	92.433	77.085
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		7.820	7.234	5.378
Less	INTEREST (D)		1.482	1.782	1.390
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		6.338	5.452	3.988
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.072	1.864	1.789
	PROFIT BEFORE TAX (E-F) (G)		4.266	3.588	2.199
Less	TAX (H)		0.762	0.105	1.318
	PROFIT AFTER TAX (G-H) (I)		3.504	3.483	0.881
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.064	4.581	3.700
	BALANCE CARRIED TO THE B/S		11.568	8.064	4.581
	IMPORT VALUE		3.928	1.462	0.000
	Earnings Per Share (Rs.)		10.38	8.99	2.21

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	2.73	3.49	1.07
Net Profit Margin (PBT/Sales)	(%)	3.35	3.61	2.68
Return on Total Assets (PBT/Total Assets}	(%)	4.07	5.02	3.30
Return on Investment (ROI) (PBT/Networth)		0.08	0.07	0.05
Debt Equity Ratio (Total Liability/Networth)		1.70	1.08	1.12
Current Ratio (Current Asset/Current Liability)		1.55	1.97	1.77

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	No
12) Profitability for last three years	No
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	No
16) Details of sister concerns	--
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	--
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

OPERATIONS:

The company has incurred a Profit of Rs.3.504 millions after Tax as against the Profit after Tax of Rs.3.483 millions earned in the previous year.

FORM 8:

This form is for	Creation of charge
Corporate identity number of the company	U25191UP1990PLC012199
Name of the company	AVADH RUBBER LIMITED
Address of the registered office or of the principal place of business in India of the company	B-12, Naderganj Industrial Area Amausi, Lucknow – 226 008, Uttar Pradesh, India
Type of charge	Immovable Property
Particular of charge holder	Indian Overseas Bank, 3, Vidhan Sabha Marg, Lucknow – 226 001, Uttar Pradesh, India E-Mail: ioba_luc01@infinet.org.in
Nature of description of the instrument creating or modifying the charge	Term Loan Agreement
Date of instrument Creating the charge	05.03.2007.
Amount secured by the charge	Rs.3.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest payable at the rate of BPLR + 0.25% (as applicable to A+ Rated customers) presently 12.75% per annum with monthly rests or such other rate or rates as may be notified by the bank to the borrower from time to time Terms of Repayment: Term loan repayable in 36 equated monthly installments of Rs.0.118 million commencing from April 2007. Margin: 50% Extent and Operation of the charge: Equitable mortgage of factory land and building of Avadh Rubber Limited at Langha Road, Dehradun. Others: Other terms and conditions as per the term loan agreement and the D.P. note dated 05.03.2007.
Short particulars of the property charged	Equitable mortgage of factory land and building of Avadh Rubber Limited at Langha Road, Dehradun.

TRADE REFERENCES:

v Indian Railways

v Bayer

FIXED ASSETS:

v Land (Leasehold)

v Land at Dehradun

v Shed and Building

v Computers

v Office Equipments

v Plant and Machinery

v Vehicles

v Electrical Equipments

v Furniture and Fixture

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.53.14
UK Pound	1	Rs.83.08
Euro	1	Rs.69.25

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.