MIRA INFORM REPORT

Report Date :

25.01.2013

IDENTIFICATION DETAILS

Name :	INNOVA RUBBERS PRIVATE LIMITED
Registered Office :	Plot No. A-26/27, Ambad, MIDC, Nashik – 422010, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.01.2000
Com. Reg. No.:	11-123743
Capital Investment / Paid-up Capital :	Rs.39.612 Millions
CIN No.: [Company Identification No.]	U25110MH2000PTC123743
PAN No.: [Permanent Account No.]	AAACI6355F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Automobile Rubber Parts.
No. of Employees :	Not Available

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 910000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

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 innovarpl@sify.com
Website :	http://www.innovarubber.com
Location :	Owned
Factory 2 :	Plot No. H-107, MIDC, Ambad, Nashik-422010, Maharashtra, India
Tel. No.:	91-253-2381809/ 2381059
Fax No.:	91-253-2381411
E-Mail :	sales@innovarubbers.com
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
Date of Birth/Age :	14.06.1975
Date of Appointment :	20.01.2001
DIN No.:	00488506

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

NOT AVAILABLE

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Automobile Rubber Parts.

GENERAL INFORMATION

Customers :

• Mahindra
• Tata
• Bajaj
• Piaggio
• Force Motors
• Ashok Leyland
• Sona Driving Tommorow
• Cummins
• Kirloskar Green Power Ideas
• Lohia Group
• Hindustan Motors
• L & T
• Mahindra Sona
• Endurance Complete Solution
• ICML
• Ford
• Hyundai
• Maruti Suzuki

No. of Employees :

Not Available

Bankers :

• Shree Samarth Sahakari Bank Limited, Nashik Narosahnkar Raje Bahandar Pur, Building; M.G. Road;, Nashik - 422001, Maharashtra, India
• 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 :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long-term Borrowings
Term loans	145.769	146.895
Short-term Borrowings
Working capital loans from banks	86.285	92.312
Loans repayable on demand	56.237	45.803
Total	288.291	285.010

Banking Relations :	--
Auditors :
Name :	APR and Associates Chartered Accountants
Address :	9, Zenab Nivas, L.J. Road, Dadar (West), Mumbai – 400028, Maharashtra, India
PAN.:	AAAFK1568P
Group Concern :	VIG Management Services Private Limited CIN No.: U51900MH1990PTC056403 Supercraft Elastomers Veetee Auto Manufacturing CO. Private Limited CIN No.: U50404MH1988PTC048986

CAPITAL STRUCTURE

As on: 31.03.2012

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		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		39.612	36.012	32.502
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		188.124	125.345	57.912
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		227.736	161.357	90.414
LOAN FUNDS
1] Secured Loans		288.291	285.010	207.453
2] Unsecured Loans		54.207	54.297	59.675
TOTAL BORROWING		342.498	339.307	267.128
DEFERRED TAX LIABILITIES		27.695	24.155	17.415
TOTAL		597.929	524.819	374.957
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		463.041	401.435	324.415
Capital work-in-progress		2.768	13.676	0.000
INVESTMENT		1.311	1.311	0.810
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	109.203	115.111	49.227
	Sundry Debtors	352.998	336.330	182.592
	Cash & Bank Balances	6.687	12.631	1.782
	Other Current Assets	1.942	0.729	0.026
	Loans & Advances	121.811	68.624	21.936
Total Current Assets		592.641	533.425	255.563
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	236.765	289.126	166.975
	Other Current Liabilities	98.062	80.118	19.224
	Provisions	127.005	55.784	19.632
Total Current Liabilities		461.832	425.028	205.831
Net Current Assets		130.809	108.397	49.732
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		597.929	524.819	374.957

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1844.941	1395.710	901.870
		Other Income	21.217	5.935	4.037
		TOTAL (A)	1866.158	1401.645	905.907
Less	EXPENSES
		Material Cost			558.701
		Manufacturing and other Expenses			236.727
		Increase / Decrease in Stocks			(7.171)
		TOTAL (B)	1660.562	1244.006	788.257
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		[Including Financial Expenses ]	[Including Financial Expenses ]	117.650
Less	FINANCIAL EXPENSES (D)				31.446
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		205.596	157.639	86.204
Less/ Add	DEPRECIATION/ AMORTISATION (F)		61.572	49.262	33.989
	PROFIT BEFORE TAX (E-F) (G)		144.024	108.377	52.215
Less	TAX (H)		58.233	36.762	20.155
	PROFIT AFTER TAX (G-H) (I)		85.791	71.615	32.060
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	20.785
Less	APPROPRIATIONS
		Proposed Dividend	NA	NA	3.251
		Dividend Distribution Tax	NA	NA	0.552
		Excess / (Short) Provision For Income Tax	NA	NA	0.030
	BALANCE CARRIED TO THE B/S		NA	NA	49.012
	Earnings Per Share (Rs.)		21.65	19.89	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.60	5.11	3.54
Net Profit Margin (PBT/Sales)	(%)	7.81	7.77	5.79
Return on Total Assets (PBT/Total Assets}	(%)	13.64	11.59	9.00
Return on Investment (ROI) (PBT/Networth)		0.63	0.67	0.57
Debt Equity Ratio (Total Liability/Networth)		3.53	4.74	5.23
Current Ratio (Current Asset/Current Liability)		1.28	1.26	1.24

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
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	No
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATIONS:

The turnover of the Company for the year under report was higher at Rs. 1844.941 Millions as against Rs. 1395.710 Millions previous year. With the strong capital investment base by investing in Machinery and Moulds in past three years the profits before depreciation are substantially higher at Rs. 205.596 Millions as compared to Rs. 157.639 Millions previous year.

FUTURE PROSPECT:

The auto sector is going through challenging times. Slowdown in economic growth and hence subdued rise in income, along with rising cost of ownership will further decelerate growth. With inflation not looking to come down, it is unlikely that the RBI will reduce the rate of interest. Further with the pressure on fiscal deficit and the necessity to contain subsidies the government has recently hiked the diesel prices which has impacted sales. The US economy is also not recovering as fast as it was expected to recover. Hobbled by political uncertainty and a

European-wide debate over the merits of austerity versus growth policies, the euro zone sovereign debt crisis is once again putting the global economic recovery at risk. The world’s number one economy, fragile and hampered by slow growth, is not immune. The U.S. is tied into the global economy through interest rates, through trade, through exchange rates, through credit spreads, through bank borrowing costs, and so if Europe spirals downward, it will certainly impact USA. The continued uncertainty in Europe and the slow recovery in USA is adversely affecting the export. Overall the company is facing significant challenges ahead and as against the high growth achieved in last few years it is unlikely to achieve the same over the next year. On the top of it there is a pressure from OEM’s to reduce prices. Hence in the next financial year, not only is the growth going to be affected, but also the margins.

UNSECURED LOAN

Particulars	As on 31.03.2012	As on 31.03.2011
Long-term Borrowings
Deferred payment liabilities	26.463	28.594
Loans and advances from related parties	0.873	0.373
Other loans and advances	26.871	25.330
Total	54.207	54.297

BANKERS CHARGES REPORT AS PER REGISTRY

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 innovarpl@sify.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10345831
Type of charge	Immovable property
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 shuklass@svcbank.com
Nature of instrument creating charge	Name of Document: Recording Letter evidencing Deposit of Tittle Deeds. Nature of Facility: Term Loan
Date of instrument Creating the charge	31.07.2012
Amount secured by the charge	Rs. 486.500 Millions
Brief 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 Deposit of Title Deeds with an intent to create security in favour of Bank for to secure due repayment of the loan amount along with interest cost charges and expenses there on.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Equitable mortgage of the property situated at Plot bearing No. H-107 admg 15360sq. mtrs. situated at additional MIDC,Village Ambad, District Nashik along with structure thereon. Plot bearing No. Plot No. A-26 admg. 1500 sq. mtrs. situated at additional MIDC, Village Ambad, District Nashik along with structure thereon. Plot bearing No. A-27 admg. 1500 sq. mtrs. situated at additional MIDC, Village Ambad, District Nashik, along with structure thereon.
Particulars of the present modification	The Bank had granted a loan amount of Rs.140.400 Millions, by way of hypothecation of movable assets now the said loan facility has been enhanced by additional facility of cash credit of Rs.86.100 Millions, letter of credit 10.000 Millions and term loan of Rs.7.500 Millions, 30.000 Millions, 20.000 Millions, 37.500 Millions, 75.000 Millions, 65.000 Millions, 15.000 Millions, aggregating and securing the total limits to Rs. 486.500 Millions.

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 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 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.53.85
UK Pound	1	Rs.85.26
Euro	1	Rs.71.72

INFORMATION DETAILS

Report Prepared by :

RAJ

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	NO
--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.