MIRA INFORM REPORT

Report Date :

28.06.2012

IDENTIFICATION DETAILS

Name :	VARROC POLYMERS PRIVATE LIMITED (w.e.f. 18.04.2007)
Formerly Known As :	MOULDCRAFT (HINDUSTAN) PRIVATE LIMITED
Registered Office :	Gut No.99, Village Pharola, Taluka Paithan, Aurangabad – 431 105, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.06.1995
Com. Reg. No.:	11-090037
Capital Investment/ Paid-up Capital:	Rs.32.635 Millions
CIN No.: [Company Identification No.]	U25209MH1995PTC090037
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Automotive Parts and Accessories for Automobile Industry.
No. of Employees:	2500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 7840000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are 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.

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/ Factory :	Gut No.99, Village Pharola, Taluka Paithan, Aurangabad – 431 105, Maharashtra, India
Tel. No.:	91-2431-251625-26
Mobile No.:	91-9673001160 (Mr. Anil Ghatiya)
Fax No.:	91-2431-251627
E-Mail :	varroc.mhpl@varrocgroup.com Varroc.info@varrocgroup.com varroc.cs@varrocgroup.com ghatiya.anil@varrocgroup.com
Website :	http://www.varrocgroup.com
Corporate Office :	E – 4, MIDC Industrial Area, Waluj, Aurangabad – 431136, Maharashtra, India
Tel. No.:	91-240-2556227
Fax No.:	91-240-2564540
Factory 1 :	VPPL-I Gut No.390,Takve Budruk, Taluka Maval, District Pune - 412 106, Maharashtra, India
Tel. No. :	91-2114-244107
Fax No. :	91-2114-244447
E-Mail :	varroc.pp1@varrocgroup.com
Factory 2 :	VPPL-II E-88, MIDC Ranjangaon, Taluka Shirur, District Pune - 412 220, Maharashtra, India
Tel. No. :	91-2138-232738
Fax No. :	91-2138-232788
E-Mail :	varroc.pp2@varrocgroup.com
Factory 3 :	VPPL-III M-165-167, MIDC Industrial Area, Waluj, District Aurangabad- 431 136, Maharashtra, India
Tel. No. :	91-240-2551807 / 8
Fax No. :	91-240-2551102
E-Mail :	varroc.wp3@varrocgroup.com
Factory 4 :	VPPL-GN Plot No.35A, Udyog Vihar, Noida, District Gautam Budh Nagar - 201 306, Uttar Pradesh, India
Tel. No. :	91-120-2230740
Fax No. :	91-120-2230739
E-Mail :	varroc.gnp1@varrocgroup.com
Factory 5 :	VPPL-BN 58th Milestone, Village Binola, District Gurgaon, Haryana, India
Tel. No. :	91-124-2279004
E-Mail :	varroc.bp1@varrocgroup

DIRECTORS

AS ON 23.07.2011

Name :

Mr. Naresh Adishwarlal Chandra

Designation :

Director

Address :

Bhagwati Bhavan, 31/B, M L Dahanukar Marg, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

11.02.1935

Date of Appointment :

28.06.1995

DIN No.:

00027696

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	L45400MH1962PLC012385	Hercules Hoists Limited	Director	20-09-72	20-09-72	-	Active	NO
2	U28920MH1988PTC047335	Varroc Engineering Private Limited	Director	11-05-88	11-05-88	-	Active	NO
3	U25209MH1995PTC090037	Varroc Polymers Private Limited	Director	28-06-95	28-06-95	-	Active	NO
4	U28113MH1995PTC092249	Endurance Systems (India) Private Limited	Director	28-08-95	28-08-95	-	Amalgamated	NO
5	U34300MH1997PTC105518	Durovalves India Private Limited	Director	03-09-97	03-09-97	-	Active	NO
6	L24100GJ1983PLC006513	GHCL Limited	Director	28-11-97	28-11-97	03-11-10	Active	NO
7	U34102MH1999PLC123296	Endurance Technologies Limited (CN)	Director	27-12-99	27-12-99	-	Active	NO
8	U31506MH2000PTC129904	Varroc Lighting Private Limited	Director	06-12-00	06-12-00	-	Amalgamated	NO
9	U34300MH2002PTC134738	High Technology Transmission Systems (India) Private Limited	Director	29-07-02	29-07-02	-	Active	NO
10	U67120MH1982PTC026669	Varroc Trading Private Limited	Director	21-11-02	21-11-02	-	Active	NO
11	U29100MH2005PTC151756	Varroc Exhaust Systems Private Limited	Director	03-03-05	03-03-05	-	Active	NO
12	U29190MH2005PTC157474	Varroc Elastomers Private Limited	Director	22-11-05	22-11-05	-	Active	NO

Name :

Mr. Tarang Naresh Jain

Designation :

Managing Director

Address :

Gut No. 41 (P), Opposite Walmi, Kachanwadi, Aurangabad – Paithan Road, Aurangabad – 431 005, Maharashtra, India

Date of Birth/Age :

21.03.1962

Qualification :

MBA

Date of Appointment :

28.06.1995

DIN No.:

00027505

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	U67120MH1982PTC026669	Varroc Trading Private Limited	Director	22-11-85	22-11-85	Active	NO
2	U28920MH1988PTC047335	Varroc Engineering Private Limited	Managing director	11-05-88	11-05-88	Active	NO
3	U25209MH1995PTC090037	Varroc Polymers Private Limited	Managing director	01-04-07	28-06-95	Active	NO
4	U34300MH1997PTC105518	Durovalves India Private Limited	Managing director	30-01-97	30-01-97	Active	NO
5	U31506MH2000PTC129904	Varroc Lighting Private Limited	Director	06-12-00	06-12-00	Amalgamated	NO
6	U29100MH2005PTC151756	Varroc Exhaust Systems Private Limited	Director	03-03-05	03-03-05	Active	NO
7	U29190MH2005PTC157474	Varroc Elastomers Private Limited	Director	22-11-05	22-11-05	Active	NO
8	U34300PN2007PTC131148	Plastic Omnium Varroc Private Limited	Director	17-12-07	17-12-07	Active	NO
9	U70102MH2010PTC208318	Rudritara Properties Private Limited	Director	27-09-10	27-09-10	Active	NO

Name :

Mr. Shantaram Narayan Patil

Designation :

Whole Time Director

Address :

14, Mayureah New SBH Cloony, Near Jyoti Nagar, Aurangabad – 431 005, Maharashtra, India

Date of Birth/Age :

16.01.1954

Qualification :

BSC

Date of Appointment :

04.12.2009

DIN No.:

01842641

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	U34300PN2007PTC131148	Plastic Omnium Varroc Private Limited	Director	17-12-07	17-12-07	Active	NO
2	U25209MH1995PTC090037	Varroc Polymers Private Limited	Whole-time director	04-12-09	04-12-09	Active	NO

Name :

Mr. Gautam Premnath Khandelwal

Designation :

Director

Address :

B-2, Alaknanda, 16-A, Nepeansea Road, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

21.09.1956

Date of Appointment :

24.03.2011

DIN No.:

00270717

Email :

gautam@khandelwalindia.com

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	U65990MH1986PTC041183	Zeppelin Investments Private Limited	Director	09-10-86	09-10-86	-	Active	NO
2	L99999MH1958PLC011001	Informed Technologies India Limited	Director	09-03-88	09-03-88	-	Active	NO
3	L74899DL1993PLC052177	Globus Spirits Limited	Director	16-02-93	16-02-93	-	Active	NO
4	U99999MH1993PTC074389	Khandelwal Remedies Privet Limited	Director	08-10-93	08-10-93	-	Active	NO
5	U24239MH1980PTC023041	Magnachem Pharmaceuticals Private Limited	Director	28-03-95	28-03-95	-	Strike off	NO
6	L40100MH1996PLC104361	Nagpur Power and Industries Limited	Whole-time director	01-07-09	06-12-96	-	Active	NO
7	U72900MH2006PTC163664	Krohm Solutions Private Limited	Director	08-08-06	08-08-06	06-07-11	Strike off	NO
8	U32109MH1960PTC011827	The Motwane Manufacturing Company Private Limited	Director	06-09-07	06-09-07	-	Active	NO
9	U74999MH1999PTC121254	MW Com (India)Private Limited	Director	28-11-07	28-11-07	25-03-10	Active	NO
10	U17299MH2007PTC172611	Amigo Sport Private Limited	Director	25-05-10	25-05-10	-	Active	NO
11	U25209MH1995PTC090037	Varroc Polymers Private Limited	Director	23-07-11	24-03-11	-	Active	NO
12	U28920MH1988PTC047335	Varroc Engineering Private Limited	Director	23-07-11	24-03-11	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Anil Ghatiya
Designation :	Company Secretary
Address :	E-14, Chanakya Puri, Daragah Road, Aurangabad - 431 005, Maharashtra, India
Date of Birth/Age :	09.03.1980
Date of Appointment :	01.01.2005
PAN No.:	AGDPG4089J

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 23.07.2011

Names of Shareholders	No. of Shares
Tarang Jain	1614501
Naresh Chandra	342101
Tarang Jain and Rochana Jain	406900
Naresh Chandra and Suman Jain	182601
Suman Jain and Naresh Chandra	78400
Suman Jain	630000
Tarang Jain HUF	4500
Naresh Chandra HUF	4500
Total	3263503

AS ON 23.07.2011

Equity Shares Break Up	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Automotive Parts and Accessories for Automobile Industry.

Products :

Item Code No. (ITC Code)	39269009
Product Description	Plastic Moulded Goods
Item Code No. (ITC Code)	87140000
Product Description	Automobile Seat Assembly
Item Code No. (ITC Code)	39203000
Product Description	Sheets of Polymers of Styrene

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
			Own Mfg.	Job Work
Plastic Moulded Components	MT	35362	16445.48	789.21
Extrusion Sheets	MT	10800	4734.42	2.32
Automobile Sea Assembly	Nos.	7264540	5182188	--
Air Filter Assembly	Nos.	4000000	2740975	--
Mirror Assembly	Nos.	9650000	7966731	--
Tools (Moulds)	Nos.	450	52	--

GENERAL INFORMATION

No. of Employees :

2500 (Approximately)

Bankers :

v IDBI Bank Limited, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

v Corporation Bank, Industrial Finance Branch, 14, Mumbai Pune Road, Wakdewadi, Pune – 411 003, Maharashtra, India

v Saraswat Co-Operative Bank Limited, Kanchan Chambers, Kranti Chowk, Station Road, Aurangabad – 431 001, Maharashtra, India

Facilities :

Secured Loan	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Term Loans [Repayable within one year Rs. 94.191 Millions (Previous year Rs. 44.961 Millions)]	245.007	253.249
Buyers Credit [Repayable within one year Rs. 171.020 Millions (Previous year Rs. 190.778 Millions)]	171.020	190.778
Cash Credit	139.509	191.835
Total	555.536	635.862
Notes 1. Rupee Term Loans and Letter of Credit for Capex facilities from IDBI Bank Limited and Corporation Bank are secured by (a) First Pari-passu Charge by wav of hypothecation of movable fixed assets of the Company bath present and future (b) Joint Mortgage of Immovable properties of the Company located at Takve and Ranjangaon in Pune District and Waluj and Pharola in Aurangabad District 2. Rupee Term Loans from IDBI Bank Limited, are secured by first exclusive charge by way of hypothecation of movable fixed assets of the Company both present and future located at Greater Noida and Binoia Plants and equitable mortgage of immovable properties of the Company located at Greater Noida and Binola Plants. 3. Rupee Term Loan availed for purchase of the Vehicle from IDBI Bank Limited is secured by Hypothecation of the Vehicle purchased. 4. Working capital facilities availed from the Banks are secured by paripassu charge by way of hypothecation of stocks of Raw Materials, Stock in Process, Finished Goods, Consumable Stores and Spares, Packing Materials and Receivables of the Company both present and future
Unsecured Loan	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Deferred Sales Tax Liabilities (Due Within one year Rs. 3.515 Millions (Previous year Rs.2.371 Millions)	190.191	192.258
Total	190.191	192.258

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	Muttha Towers, 5^th Floor, Suite No. 8, Airport Road, Yerwada, Pune – 411 066, Maharashtra, India
PAN No.:	AAHFP0187A
Subsidiaries :	Varroc Elastomers Private Limited (CIN No.: U29190MH2005PTC157474)
Other Related Companies :	v Varroc Engineering Private Limited v Varroc Trading Private Limited v Durovalves India Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3263503	Equity Shares	Rs.10/- each	Rs.32.635 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		32.635	32.635	29.320
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1927.288	1548.588	1126.793
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1959.923	1581.223	1156.113
LOAN FUNDS
1] Secured Loans		555.536	635.862	596.642
2] Unsecured Loans		190.191	192.258	170.712
TOTAL BORROWING		745.727	828.120	767.354
DEFERRED TAX LIABILITIES		112.723	108.242	95.064
TOTAL		2818.373	2517.585	2018.531
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1720.455	1610.971	1267.697
Capital work-in-progress		167.603	42.358	16.411
INVESTMENT		539.405	496.255	380.455
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	352.905	307.366	205.312
	Sundry Debtors	1137.791	1012.974	744.570
	Cash & Bank Balances	174.218	126.554	78.592
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	99.575	85.240	154.626
Total Current Assets		1764.489	1532.134	1183.100
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1278.717	973.395	756.237
	Other Current Liabilities	52.454	126.441	33.677
	Provisions	42.408	64.297	39.218
Total Current Liabilities		1373.579	1164.133	829.132
Net Current Assets		390.910	368.001	353.968
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2818.373	2517.585	2018.531

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	7828.600	6060.429	4706.661
		Other Income
		TOTAL (A)	7828.600	6060.429	4706.661
Less	EXPENSES
		Office Expenses	6977.766	5343.086	4236.966
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	6977.766	5343.086	4236.966
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		850.834	717.343	469.695
Less	FINANCIAL EXPENSES (D)		63.936	72.020	80.302
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		786.898	645.323	389.393
Less/ Add	DEPRECIATION/ AMORTISATION (F)		211.635	182.772	145.436
	PROFIT BEFORE TAX (E-F) (G)		575.263	462.551	243.957
Less	TAX (H)		178.245	160.702	85.769
	PROFIT AFTER TAX (G-H) (I)		397.018	301.849	158.188
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		444.929	192.283	67.066
Less	APPROPRIATIONS
		Transfer to General Reserve	39.701	30.175	15.820
		Dividend	16.318	16.318	14.660
		Tax on Dividend	2.000	2.710	2.491
	BALANCE CARRIED TO THE B/S		783.928	444.929	192.283
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	30.070	5.449	0.357
	TOTAL EARNINGS		30.070	5.449	0.357
	IMPORTS
		Raw Materials	101.599	80.130	93.093
		Stores & Spares	5.824	1.539	1.354
		Capital Goods	88.716	46.377	87.596
	TOTAL IMPORTS		196.139	128.046	182.043
	Earnings Per Share (Rs.)		124.74	102.95	59.89

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.07	4.98	3.36
Return on Total Assets (PBT/Total Assets}	(%)	16.51	14.72	9.95
Return on Investment (ROI) (PBT/Networth)		0.29	0.29	0.21
Debt Equity Ratio (Total Liability/Networth)		1.14	1.33	1.38
Current Ratio (Current Asset/Current Liability)		1.28	1.32	1.43

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

PERFORMANCE

Consequent upon addition in capacities of Air Filter Assembly Division and Mirror Assembly Division, Net sales of these products during the year were higher by 40% and 16% respectively. Owing to improved demand from customers, the sale of seat assemblies also grew 37% as compared to last year. Exports were significantly higher at Rs.30.100 Millions from Rs.5.400 Millions in view of higher off take from the export customer.

Owing to the above and also as a result of increased off take by customers, the Net Sales and Other Income was higher by 29% at Rs.7830.000 Millions against Rs.6060.000 Millions last year. Interest cost was down from 1.2% to 0.8% of Net Sales on account of better financial management. The Selling and Administration Expenses were marginally higher by around 1.2% of Net Sales compared to last year. The cumulative effect was that PBT rose by

24% to Rs.575.300 Millions, from Rs.462.600 Millions in the last year. PAT was significantly higher by 32% at Rs.397.000 Millions, against Rs.301.900 Millions last year. This significant improvement in the bottom line can be attributed to various measures taken to control cost and improve efficiencies. The working results were in line with the targets set.

FUTURE OUTLOOK

The Company has decided to selectively opt out of the business of manufacture of components of white goods in cases where the same are not commercially feasible considering the thin margins and continuous pressure from customers for cost reduction. The resultant free capacities will be utilized either for manufacture of automotive components or white goods components with higher margins.

According to Economists and experts, inflation is likely to remain high in the current fiscal year; the impact of crude oil prices and commodity prices is expected to put pressure on prices and there could be a period of double

digit inflation in the months ahead. The government's proposed move to raise diesel and LPG prices after announcing its sharpest ever increase in petrol prices will impact inflation in the months ahead. Some economists say that India may have to live with 6% - 7% inflation for some time.

The rising cost of input materials had also seen companies increase in prices of vehicles, which also hit their affordability. Margins are already under pressure and it will be very difficult for the vehicle manufacturers to absorb the higher manufacturing costs.

Spiralling fuel prices and hardening interest rates owing to high inflation are adversely affecting vehicle sales which is apparently loosing steam and veering towards a slowdown. Sales numbers released by auto companies for May showed fatigue creeping in as companies saw demand slowing down despite offers of discounts.

The arrival of monsoon on time and prediction of normal monsoon for the June-September period have kindled hopes of bumper crops but economists say it is too early to take a view on the impact of the rains on prices and much would depend on the spread and distribution of rains in the months ahead. While bumper crops should help ease inflation, it is still not enough to ease the pinch, say industry insiders.

Vehicle sales in India, one of the fastest growing auto-markets in the world, grew at a record 30% in 2010 spurred by demand from the burgeoning middle class. That growth is expected to halve to 12% to 15% in the current year.

JOINT VENTURE

The Company injected Rs.41.000 Millions during the year, by subscribing to the equity capital of Plastic Omnium Varroc Private Limited ['POV"]. The Company's total investment in POV's Equity Share Capital amounts to Rs. 230.580 Millions as at 31-03-2011. POV's operating results for the year were satisfactory. POV has embarked on expansion plans and is in the process of acquiring land for setting up additional manufacturing facilities to cater to the needs of existing as well as new customers.

FINANCE

The forex hedging policy which is in place since last year has proved to be prudent yet again. The exchange gain (net) was Rs.3.290 Millions.

The interest cost was brought down by 11.25% to Rs.63.900 Millions from Rs.72.000 Millions.

The Company has availed sufficient working capital facilities and term loans from its Bankers for smooth operations. The Company has been regularly repaying the interest and principal amounts due against term loans.

Bankers Charges Report as per Registry

Corporate identity number of the company	U25209MH1995PTC090037
Name of the company	VARROC POLYMERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Gut No.99 Village Pharola Taluka, Paithan, Aurangabad – 431 105, Maharashtra, India E-Mail Id: ghatiya.anil@varrocgroup.com
This form is for	Modification of Charge
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	IDBI Bank Limited, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India E-Mail Id: abhijit.srivastava@idbi.co.in
Nature of instrument creating charge	Joint Mortgage Deed
Date of instrument Creating the charge	27.12.2010
Amount secured by the charge	Rs.20.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Usance /commitment charges: 0.50% p.a. Plus service tax payable upfront Terms of repayment Honouring of commitments on due date Margin 10% cash margin Extent and operation of the charge The company created hypothecation and mortgage on pari passu basis along with corporation bank in respect of properties, as security for due repayment of inland/import LC cum buyers credit (capital goods) of Rs.20.000 Millions sanctioned by IDBI Bank Limited.
Short particulars of the property charged (Including location of the property)	Hypothecation of Movable Fixed Assets and Mortgage of Immovable Properties Situated at Gut No.390, Takve-Bk, Taluka Maval, District Pune on first pari-passu charge basis along with Corporation Bank Hypothecation of Movable Fixed Assets and Mortgage of Immovable Properties Situated at Plot No. E-88, MIDC, Ranjangaon, District Pune on First pari-passu charge basis along with Corporation Bank Hypothecation of Movable Fixed Assets and Mortgage of Immovable Properties Situated At Plot Nos.M-165-167, MIDC, Waluj, Aurangabad on first pari-passu charge basis along with Corporation Bank Hypothecation of Movable Fixed Assets and Mortgage of Immovable Properties Situated at Gut No.99, Village Pharola, Taluka Paithan, District Aurangabad on first pari-passu charge basis along with Corporation Bank
Charge identification number of the charge to be modified	10255958
Date of instrument modifying the charge	29.11.2010
Particulars of the present modification	By the present modification Inland/Import LC Cum Buyers Credit (Capital Goods) of Rs.20.000 Millions is further secured by way of hypothecation of movable fixed assets and Mortgage of Immovable properties on First Pari-passu Charge basis along with Corporation Bank situated at (1) Gut No.390, Takve Bk, Talula Maval, District Pune (2) Plot No.E-88, MIDC, Ranjangaon, District Pune (3) Plot No. M-165-167, MIDC, Waluj, Aurangabad (4) Gut No. 99, Village Pharola, Taluka Paithan, District Aurangabad.

FIXED ASSETS:

v Freehold Land

v Leasehold Land

v Factory Building

v Office Building

v Plant and Machinery

v Factory Equipments

v Electrical Installation

v Computers

v Mould and Dies

v Electrical Fittings

v Vehicles

v Furniture and Fixtures

v Office Equipments

v Software

v User right for expenses Feeder

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.57.22
UK Pound	1	Rs.89.42
Euro	1	Rs.71.46

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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.