MIRA INFORM REPORT

Report Date :

01.03.2012

IDENTIFICATION DETAILS

Name :	POLY HOSE INDIA (RUBBER) PRIVATE LIMITED
Registered Office :	Plot No. F37-F42, SIPCOT Industrial Park, Pennalur, Sriperumbuthur Taluk, Tiruvallur – 602105, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.08.2004
Com. Reg. No.:	18-053900
Capital Investment / Paid-up Capital :	Rs.65.000 Millions
CIN No.: [Company Identification No.]	U25191TN2004PTC053900
TAN No.: [Tax Deduction & Collection Account No.]	CHEP07273A
PAN No.: [Permanent Account No.]	AADCP4173F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Hydraulic hose, thermoplastic hose, polyamide/polyurethane tubings.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 1090000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be 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 :	Plot No. F37-F42, SIPCOT Industrial Park, Pennalur, Sriperumbuthur Taluk, Tiruvallur – 602105, Tamilnadu, India
Tel. No.:	91-44-26412830 / 26428116
Fax No.:	91-44-26428093
E-Mail :	export@polyhose.com accounts@rubberhose.in

DIRECTORS

As on 24.09.2011

Name :

Mr. Shabbir Yusufbhai Jamnagarwala

Designation :

Managing director

Address :

Basera Apartments, Flat No.2C, 46, Besant Avenue Road, Adyar, Chennai – 600 020, Tamilnadu, India

Date of Birth/Age :

16.04.1961

Date of Appointment :

05.08.2004

DIN No.:

00958177

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	U51909TN1988PTC016489	CLASSIC ENGINEERS (INDIA) PRIVATE LIMITED	Director	22/11/1988	22/11/1988	-	Active	NO
2	U25209TN1996PTC034257	POLYHOSE INDIA PRIVATE LIMITED	Managing director	24/01/1996	24/01/1996	-	Active	NO
3	U28939TN2004PTC053838	PLATINUM PROFILE (INDIA) PRIVATE LIMITED	Director	28/07/2004	28/07/2004	-	Active	NO
4	U25191TN2004PTC053900	POLY HOSE INDIA (RUBBER) PRIVATE LIMITED	Managing director	5/08/2004	5/08/2004	-	Active	NO
5	U63040TN2007PTC064135	AKASAKA HOSPITALITY PRIVATE LIMITED	Director	28/06/2007	28/06/2007	31/03/2010	Active	NO
6	U45200TN2008PTC066122	PH FOUNDATIONS PRIVATE LIMITED	Director	21/01/2008	21/01/2008	-	Active	NO
7	U24134TN2007PTC062123	ITAL PLASTIC COMPOUNDS PRIVATE LIMITED	Director	27/03/2008	27/03/2008	-	Active	NO
8	U28939TN2008PTC068438	POLYMAK TOOLS (INDIA) PRIVATE LIMITED	Director	2/07/2008	2/07/2008	-	Active	NO
9	U24131TN1961PLC004560	IND-ITAL CHEMICALS LIMITED	Director	30/09/2010	5/04/2010	-	Active	NO
10	U25203TN2010PTC076613	VECTOR HYDRAULICS PRIVATE LIMITED	Director	16/07/2010	16/07/2010	-	Active	NO
11	U34300PN2011PTC139272	POLYHOSE AUTOMOTIVE PRIVATE LIMITED	Director	20/04/2011	20/04/2011	-	Active	NO
12	U28112TN2011PTC081269	ADDLIFE COATING SYSTEMS PRIVATE LIMITED	Director	29/06/2011	29/06/2011	-	Active	NO

Name :

Mrs. Nafisa Shabbir Jamnagarwala

Designation :

Director

Address :

Basera Apartments, Flat No.2C, 46, Besant Avenue Road, Adyar, Chennai – 600 020, Tamilnadu, India

Date of Birth/Age :

11.02.1968

Date of Appointment :

05.08.2004

DIN No.:

01046231

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	U29119MH1999PTC119977	COMPOSITE HOSES AND HYDRAULICS PRIVATE LIMITED	Director	21/05/1999	21/05/1999	25/06/2009	Active	NO
2	U25191TN2004PTC053900	POLY HOSE INDIA (RUBBER) PRIVATE LIMITED	Director	5/08/2004	5/08/2004	-	Active	NO

Name :

Mr. Shamsuddin Ali Asger

Designation :

Director

Address :

No.4, Old No.163, Santhome High Road, Mylapore, Chennai – 600 004, Tamilnadu, India

Date of Birth/Age :

13.11.1979

Date of Appointment :

05.08.2004

DIN No.:

01345230

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	U25209TN1996PTC034257	POLYHOSE INDIA PRIVATE LIMITED	Director	7/02/1998	7/02/1998	-	Active	NO
2	U28939TN2004PTC053838	PLATINUM PROFILE (INDIA) PRIVATE LIMITED	Director	28/07/2004	28/07/2004	-	Active	NO
3	U25191TN2004PTC053900	POLY HOSE INDIA (RUBBER) PRIVATE LIMITED	Director	5/08/2004	5/08/2004	-	Active	NO
4	U31300MH1988PTC048980	MEGA RUBBER PRODUCTS PRIVATE LIMITED	Director	24/01/2006	24/01/2006	-	Active	NO
5	U24134TN2007PTC062123	ITAL PLASTIC COMPOUNDS PRIVATE LIMITED	Director	22/01/2007	22/01/2007	-	Active	NO
6	U45200TN2008PTC066122	PH FOUNDATIONS PRIVATE LIMITED	Director	21/01/2008	21/01/2008	-	Active	NO
7	U24131TN1961PLC004560	IND-ITAL CHEMICALS LIMITED	Director	30/09/2010	5/04/2010	-	Active	NO
8	U25203TN2010PTC076613	VECTOR HYDRAULICS PRIVATE LIMITED	Director	16/07/2010	16/07/2010	-	Active	NO
9	U34300PN2011PTC139272	POLYHOSE AUTOMOTIVE PRIVATE LIMITED	Director	20/04/2011	20/04/2011	-	Active	NO

Name :

Mr. Jonathan Wayne Pressler

Designation :

Nominee director

Address :

For Caterpillar Asia Pte Limited, Via Dante Aligheri, 8, Basiglo, Milan – 200080

Date of Birth/Age :

29.03.1962

Date of Appointment :

12.09.2007

DIN No.:

01759322

Name :

Mr. Michael Eugene Fuchs

Designation :

Nominee director

Address :

10809 Collett Drive Peoria IL 61615

Date of Birth/Age :

19.08.1955

Date of Appointment :

11.06.2008

DIN No.:

02311294

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2011

Names of Shareholders	No. of Shares
Y J Shabbir	15075
Nafisa Shabbir	15050
Polyhose India Private Limited, India	15000
Caterpillar Asia Pte Limited, Singapore	19875
Total	65000

Equity Share Break up (Percentage of Total Equity)

As on 24.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	30.58
Bodies corporate	23.08
Directors or relatives of Directors	46.34
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Hydraulic hose, thermoplastic hose, polyamide/polyurethane tubings.
Products :	· PowerLine-1 (SAE J517-100R1 Type AT & DIN 20022 1SN/EN 853) · PowerLine-2 (SAE J517-100R2 Type AT & DIN 20022 2SN/EN 853) · PowerLine-3 (SAE J517-100R3 / EN 854 R3) · PowerLine-5 (SAE J517-100R5 ) · PowerLine-6 (SAE J517-100R6 / EN 854 R6) · SuperSpiral-4SH (DIN 20023 Part-2 (Type 4SH)) · SuperSpiral-4SP (DIN 20023 Part-1 (Type 4SP)) · SuperSpiral-100R13 (SAE J517-100R13)

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Indian Overseas Bank, Large Advances Branch, Irungattukottai – 602105, Tamilnadu, India

Small Industries Development Bank of India, Overseas Towers, 756L, Anna Salai, Chennai – 600002, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee Term loans banks	2.790	13.310
Foreign currency loans banks	0.000	10.776
Foreign currency loans others	0.000	3.753
Working Capital loans banks	75.638	29.875
Working Capital loans others	21.704	0.000
Other debts	187.344	118.161
Total	287.476	175.875

Notes:

(A) Packing credit Foreign Currency

(B) Cash Credit A/C - Indian Overseas Bank

(C) Cash Credit A/C - Indian Overseas Bank

(D) Includes I.O.B. - Hongkong - Buyers Credit and Export Bill Discounted

(E) Project Loan from Indian Overseas Bank

(F) Project Loan from Indian Overseas Bank

Banking Relations :	--
Auditors :
Name :	Somasundaram and Associates Chartered Accountants
Address :	10E, Karthik Apartments, No. 46, Vijayaraghava Road, T. Nagar, Chennai – 600017, Tamilnadu, India
PAN.:	AASPS4961Q
Associates :	· Polyhose India Private Limited · Rapisarda Industries s.r.l. Italy · Avon Hydraulics and Engineering Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
105000	Equity Shares	Rs.1000/- each	Rs.105.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
65000	Equity Shares	Rs.1000/- each	Rs.65.000 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		65.000	65.000	65.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		207.519	187.271	173.698
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		272.519	252.271	238.698
LOAN FUNDS
1] Secured Loans		287.476	175.875	145.782
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		287.476	175.875	145.782
DEFERRED TAX LIABILITIES		3.410	0.000	0.000
TOTAL		563.405	428.146	384.480
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		326.086	268.162	151.140
Capital work-in-progress		4.540	8.423	110.076
INVESTMENT		3.500	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.135	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	146.860	52.195	64.393
	Sundry Debtors	122.828	88.399	62.566
	Cash & Bank Balances	17.002	21.347	1.374
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	39.503	40.630	16.450
Total Current Assets		326.193	202.571	144.783
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	68.574	37.191	14.151
	Other Current Liabilities	28.340	13.996	5.508
	Provisions	0.000	0.000	1.976
Total Current Liabilities		96.914	51.187	21.635
Net Current Assets		229.279	151.384	123.148
MISCELLANEOUS EXPENSES		0.000	0.042	0.116
TOTAL		563.405	428.146	384.480

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES		521.693	270.686	279.939
	PROFIT BEFORE TAX		25.792	15.925	13.543
Less	TAX		5.544	2.365	1.790
	PROFIT AFTER TAX		20.248	13.560	11.753
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	176.545	120.340
	TOTAL EARNINGS		NA	176.545	120.340
	IMPORTS
		CIF value of Imports	NA	89.398	90.346
	TOTAL IMPORTS		NA	89.398	90.346
	Earnings Per Share (Rs.)		311.51	--	180.83

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	4.94	5.88	4.84
Return on Total Assets (PBT/Total Assets}	(%)	3.95	3.38	4.58
Return on Investment (ROI) (PBT/Networth)		0.09	0.06	0.06
Debt Equity Ratio (Total Liability/Networth)		1.41	0.90	0.70
Current Ratio (Current Asset/Current Liability)		3.37	3.96	6.69

LOCAL AGENCY FURTHER INFORMATION

REVIEW OF OPERATIONS

The Company has commenced Large Bore Hose and Spiral Hose operations in Phase II project during the year under report. The outlook is good for the years to come and your company hopes to achieve a better growth with the support from Joint Venture partner. The Phase II project will bring substantial revenue in the year 2011-12. The company performance during the current financial year was badly hit by rise in principal raw material costs and higher depreciation and interest costs. The company is in the process of continuously initiating various cost management and value addition measures to reduce the cost and increase the profitability.

Bankers Charges Report as per Registry

Corporate identity number of the company	U25191TN2004PTC053900
Name of the company	POLY HOSE INDIA (RUBBER) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.F37-F42, SIPCOT Industrial Park, Pennalur, Sriperumbuthur Taluk, Tiruvallur-602 105, Tamil Nadu, India Email : export@polyhose.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90288704
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Indian Overseas Bank, Large Advances Branch, Irungattukottai – 602105, Tamilnadu, India Email : irungbr@kansco.iobnet.co.in
Nature of instrument creating charge	Letter of Hypothecation Sanction Letter Board Resolution
Date of instrument Creating the charge	30.11.2011
Amount secured by the charge	Rs.485.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest TL/CC-BR+3.25%(14% at present) Packing Credit/FDDBP/FDUBD-Applicable rate(Presently BR+0.75%)LOC-ILC-At applicable rates,FLC-50% of applicable rate, Loc-At applicable rate LOG-As per circulars in force Terms of repayment 1. Term Loan-20 quarterly installments of Rs.10.100 Millions each (in proportion to term loan availed) starting from the quarter ending 30.06.2011. 2. Cash Credit/FDDBP/FDUBD/LC-Repayable on demand 3. Letter of guarantee-Repayable on invocation 4. LC-as and when due Margin TL-20.63% CC-Stocks-25%, Receivables not older than 90 days-30% Packing Credit-25%(Stocks) FDDBP/FDUBD-Nil for LC bills, 10% for Non LC Bills LOC-10% LOG-15% Extent and operation of the charge Exclusive charge on the entire fixed assets and current assets of the company
Short particulars of the property or asset(s) charged (including complete address and location of the property)	TL-Exclusive Charge on entire Fixed assets including EM of factory Land and Building CC/Packing Credit(Sub Limit of CC)-Exclusive charge on the current assets present and future FDDBP/FDUBD-Doc of title to goods/accepted hundies/exclusive charge on the CA LOC-Doc of title to goods/accepted hundies/Goods received under LC/Exclusive charge on the CA LOG-Counter indemnity of the company/Exclusive charge on the current assets Collateral Security:WC limits should continue to be secured by exclusive charge on the residual value(Rs.38.88 crore) of entire fixed assets of the company including factory Land and Building /Plant and Machinery/ other assets In a similar way, Term Loan exposure to be collaterally secured by exclusive charge on the residual value of current assets of the company. EM on Factory land and building created on 10.12.11 Guarantee: Shri Y.J. Shabbir, Managing Director, aged about 44, residing at 46, Basera Apartments, Besant Avenue, Chennai -600 020 - Worth Rs.136.100 Millions dated 31.03.2011
Date of instrument modifying the charge	13.12.2010
Particulars of the present modification	The Total Credit limits has been enhanced from Rs.43,50,00,000/- to Rs.485.000 Millions

Contingent Liabilities not provided for :

Claims not acknowledged as debts – NIL (Previous Year: NIL)

Letter of Guarantees issued by Banker – Rs. 2.797 Millions (Previous Year: Rs. 1.797 Millions)

Letter of Credit opened with Bankers –Rs. 82.342 Millions (Previous Year- Rs. 23.144 Millions)

Estimated amount of Contracts remaining to be executed and not provided for : NIL .

FIXED ASSETS:

· Land (Leasehold)

· Roads and Development

· Buildings

· Plant and Machinery

· Electrical Equipments and Installations

· Office Equipments

· Computer and Accessories

· Furniture and Fixtures

· Vehicles

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.48.94
UK Pound	1	Rs.77.95
Euro	1	Rs.65.94

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	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.