MIRA INFORM REPORT

Report Date :

26.05.2012

IDENTIFICATION DETAILS

Name :	INNOVA RUBBERS PRIVATE LIMITED
Registered Office :	Plot No. A-26/27, Ambad, MIDC, Nashik-422010, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.01.2000
Com. Reg. No.:	11-123743
Capital Investment / Paid-up Capital :	Rs.36.012 Millions
CIN No.: [Company Identification No.]	U25110MH2000PTC123743
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Automobile Rubber Parts.
No. of Employees :	2000 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 640000
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.

INFORMATION PARTED BY

Name :	Mr. Rakesh
Designation :	Senior Purchase Officer
Contact No.:	91-9922404280
Date :	24.05.2012

LOCATIONS

Registered Office/ Factory 1 :	Plot No. A-26/27, Ambad, MIDC, Nashik-422010, Maharashtra, India
Tel. No.:	91-253-2381065
Mobile No.:	91-9922404280 [Mr. Rakesh]
Fax No.:	91-253-2381411
E-Mail :	rakesh_bhaviskar@innovarubber.com
Website :	http://www.innovarubber.com
Location :	Owned
Factory 2 :	Plot No. H-107, MIDC, Ambad, Nashik-422010, Maharashtra, India
Branch Office:	201, Planet Industrial Estate, Subhash Road, Vile Parle (East), Mumbai-400057, Maharashtra, India
Tel No.:	91-22-28345256

DIRECTORS

As on 27.09.2011

Name :	Mr. Hemant Madhav Bakshi
Designation :	Director
Address :	Ambarish Plot No. 41, D S Classic, Co-operative Society, Gagapur Road, Nashik-422013, Maharashtra, India
Date of Birth/Age :	20.04.1956
Date of Appointment :	20.01.2001
Din No.:	00361834
Name :	Mr. Sachin Shreeram Ambardekar
Designation :	Director
Address :	B-18, Spring Field Towers, Sawarkar Nagar, Gangapur Road, Nashik-422013, Maharashtra, India
Experience :	14.06.1975
Date of Appointment :	20.01.2001
Din No.:	00488506

KEY EXECUTIVES

Name :	Mr. Rakesh
Designation :	Senior Purchase Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2011

Names of Shareholders	No. of Shares
Hemant Madhav Bakshi	706775
Sachin Shreeram Ambardekar	440000

As on 03.11.2011

Names of Allottees	No. of Shares
Neha Pushkraj Chaphalkar	120000
Shreeram Vasudeo Ambardekar and Vijaya Shreeram Ambardekar	40000
Sachin Shreeram Ambardekar and Ketki Sachin Ambardekar	40000
Sameer Shreeram Ambardekar and Sonali Sameer Ambardekar	40000
Swapneil Santosh Mekal and Dhanashri Swapneil Mekal	20000
Dhanashri Swapneil Mekal and Swapneil Santosh Mekal	20000
Santosh Vasant Mekal	30000
Saroja SAntosh Mekal and Santosh Vasant Mekal	50000
Total	360000

As on 27.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	66.66
Other top fifty shareholders	33.34
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Automobile Rubber Parts.
Exports :
Products :	Automobile Rubber Parts
Countries :	· USA · Italy
Imports :
Products :	Raw Material
Countries :	China
Terms :
Selling :	Credit [30 and 60 days] [Against Performa]
Purchasing :	Credit [30 and 60 days]

PRODUCTION STATUS [AS ON 31.03.2010]

Particulars	Actual Production [Quantity]
Auto Rubber Parts	62838822
Rubber Compound	1438318

GENERAL INFORMATION

Customers :

Others [Manufacturer]

· Bajaj Auto

· Mahindra

No. of Employees :

2000 [Approximately]

Bankers :

The Shamrao Vithal Co-operative Bank Limited, Gala No. L-15 and G-16, Utility Centre, Opposite Rajiv Gandhi Bhavan, NMC, Sharanpur Road, Nashik-422001, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Rupee term loans	192.493	129.854
Working capital loan	138.116	72.587
Loans taken for vehicles	2.614	5.012
Total	333.223	207.453
Unsecured Loan
Working capital loan	0.000	0.073
Director loan	0.373	0.373
Deferred sales tax loan	28.594	30.619
Other debts	25.330	28.610
Total	54.297	59.675

Banking Relations :	--
Auditors :
Name :	APR and Associates Chartered Accountants
Address :	9, Zenab Nivas, L.J. Road, Dadar (West), Mumbai-400028, Maharashtra, India
Pan No.:	AAAFK1568P

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3997000	Equity Shares	Rs.10/- each	Rs.39.970 Millions
3000	Preferences Shares	Rs.10/- each	Rs.0.030 Million
	Total		Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3600000	Equity Shares	Rs.10/- each	Rs.36.000 Millions
1200	Preferences Shares	Rs.10/- each	Rs.0.012 Million
	Total		Rs.36.012 Millions

As on 27.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3997000	Equity Shares	Rs.10/- each	Rs.39.970 Millions
3000	Preferences Shares	Rs.10/- each	Rs.0.030 Million
	Total		Rs.40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3960000	Equity Shares	Rs.10/- each	Rs.39.600 Millions
1200	Preferences Shares	Rs.10/- each	Rs.0.012 Million
	Total		Rs.39.612 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		36.012	32.502	29.486
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		125.345	57.912	29.685
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		161.357	90.414	59.171
LOAN FUNDS
1] Secured Loans		333.223	207.453	216.041
2] Unsecured Loans		54.297	59.675	64.404
TOTAL BORROWING		387.520	267.128	280.445
DEFERRED TAX LIABILITIES		24.155	17.415	13.975
TOTAL		573.032	374.957	353.591
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		401.435	324.415	189.198
Capital work-in-progress		13.676	0.000	70.941
INVESTMENT		0.811	0.810	0.862
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	115.683	49.227	44.252
	Sundry Debtors	336.330	182.592	281.265
	Cash & Bank Balances	13.131	1.782	5.861
	Other Current Assets	0.157	0.026	0.434
	Loans & Advances	29.197	21.936	19.254
Total Current Assets		494.498	255.563	351.066
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	291.200	166.975	236.683
	Other Current Liabilities	24.810	19.224	10.758
	Provisions	21.378	19.632	11.035
Total Current Liabilities		337.388	205.831	258.476
Net Current Assets		157.110	49.732	92.590
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		573.032	374.957	353.591

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1395.710	901.870	672.536
		Other Income	5.935	4.037	9.358
		TOTAL (A)	1401.645	905.907	681.894
Less	EXPENSES
		Material Cost		558.701	404.846
		Manufacturing and other Expenses		236.727	204.102
		Increase / Decrease in Stocks		(7.171)	1.154
		TOTAL (B)	1244.006 [Including Financial Expenses ]	788.257	610.102
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			117.650	71.792
Less	FINANCIAL EXPENSES (D)			31.446	33.300
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		157.639	86.204	38.492
Less/ Add	DEPRECIATION/ AMORTISATION (F)		49.262	33.989	28.381
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		108.377	52.215	10.111
Less	TAX (H)		36.762	20.155	3.152
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		71.615	32.060	6.959
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	20.785	17.378
Less	APPROPRIATIONS
		Proposed Dividend	NA	3.251	2.949
		Dividend Distribution Tax	NA	0.552	0.501
		Excess / (Short) Provision For Income Tax	NA	0.030	0.102
	BALANCE CARRIED TO THE B/S		NA	49.012	20.785
	Earnings / (Loss) Per Share (Rs.)		19.89	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.11	3.54	1.02
Net Profit Margin (PBT/Sales)	(%)	7.77	5.79	1.50
Return on Total Assets (PBT/Total Assets}	(%)	12.10	9.00	1.87
Return on Investment (ROI) (PBT/Networth)		0.67	0.57	0.17
Debt Equity Ratio (Total Liability/Networth)		4.49	5.23	9.11
Current Ratio (Current Asset/Current Liability)		1.47	1.24	1.36

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors	291.200	166.975	236.683

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	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	Yes
10) Designation of contact person	Yes
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	No
17) Major suppliers	No
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	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

NOTE:

The registered office of the company has been shifted from Plot No. A-26, MIDC, Ambad, Nashik-422010, Maharashtra, India to the present address w.e.f. 02.11.2008.

OPERATIONS:

The turnover of the company for the year under report was higher at Rs.1395.710 Millions as against Rs.901.870 Millions previous year. With the strong capital investment base by investing in machinery and moulds in past two years the profit before depreciation are substantially higher at Rs.157.639 Millions as compared to Rs.86.205 Millions previous year.

FINANCE:

The directors are grateful to Shamrao Vitthal Co-operative Bank Limited for providing long term loan as well as working capital finance.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U25110MH2000PTC123743
Name of the company	INNOVA RUBBERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. A-26/27, Ambad, MIDC, Nashik-422010, Maharashtra, India
Type of charge	Movable Property [not being pledge]
Particular of charge holder	The Shamrao Vithal Co-operative Bank Limited, Gala No. L-15 and G-16, Utility Centre, Opposite Rajiv Gandhi Bhavan, NMC, Sharanpur Road, Nashik-422001, Maharashtra, India
Email	shuklass@svcbank.com
Nature of description of the instrument creating or modifying the charge	Name of Document: Composite Hypothecation Agreement (Hypothecation/Pledge of Stocks and Book Debts, Plant and Machinery, Vehicle, Consumer Durables and Other Movable assets) Nature of Facility: Term Loan
Date of instrument Creating the charge	30.03.2012
Amount secured by the charge	Rs.140.400 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest The rate of interest is charged at PLR 4.5% i.e. 13% p.a. Terms of Repayment The loan is to be repaid in 72 EMI's of Rs. 0.319 million. Margin The margin for the loan is 25%. Extent and Operation of the charge The Bank has agreed to grant the borrower the loan facility by way of Composite Hypothecation of Plant and machinery, stocks, Book Debts, Vehicle, Consumer Durables and other movable assets to secure the due repayment of the debt due to the bank along with the interest, discount, commission, charges, additional charges, costs and expenses payable to the bank in respect of the Hypothecation by the way of first charge on all the movable assets of the borrower.
Short particulars of the property charged	All the present and future stocks of Raw Materials, goods in process, of manufacture and all finished and manufactured goods and articles. All the present and future book debts, outstanding monies, receivables, claims, bills, rights to or in movable properties and movable assets which are now due and payable belonging to borrower. All the plant and Machinery, other assets etc. installed at the borrowers factory and all other tangible movable assets imbedded in the earth, Plant and Machinery, furniture’s, fixtures, fittings Continued other installations, accessories and all other articles present and future lying at the factory of the borrower.

FIXED ASSETS:

· Leasehold Land

· Building

· Plant and Machinery

· Electric Installations

· Furniture and Fixtures

· Computers and Software

· Vehicles

· Rubber Moulds

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.56.29
UK Pound	1	Rs.88.25
Euro	1	Rs.70.82

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.