MIRA INFORM REPORT

Report Date :

04.03.2013

IDENTIFICATION DETAILS

Name :	POLYBOND (INDIA) PRIVATE LIMITED
Registered Office :	Rathi Chambers, 7, Deccan College Road, Pune – 411 006, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.08.1983
Com. Reg. No.:	11-030558
Capital Investment / Paid-up Capital :	Rs. 39.900 millions
CIN No.: [Company Identification No.]	U25199MH1983PTC030558
PAN No.: [Permanent Account No.]	AAAAA9999A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Rubber Parts and Rubber Hoses.
No. of Employees :	1000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 1188000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. There appear huge external borrowings recorded by the company. However, the performance capacity of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BBB (Long Term Rating)
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	22^nd May, 2012

Rating Agency Name	CRISIL
Rating	A3+ (Short Term Rating)
Rating Explanation	Moderate degree of safety and higher credit risk.
Date	22^nd May, 2012

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.

INFORMATION PARTED BY

Name :	Mr. S. B. Purohit
Designation :	General Manager
Contact No.:	91-20-30517201
Date :	01.03.2013

LOCATIONS

Registered/ Corporate Office:	Rathi Chambers, 7, Deccan College Road, Pune – 411 006, Maharashtra, India.
Tel. No.:	91-20-30517201/ 26696820/ 30517218
Fax No.:	91-20-30517212
E-Mail :	polybond@pn2.vsnl.net.in info@rathigroup.com mkt.polybond@rathigroup.com sbpurohit@rathi.com adit@rathigroup.com
Website :	http://www.polybondindia.com
Area :	3000 Sq.fts
Location :	Owned by Directors
Factory 1 :	144/145, Alandi Markal Road, Village Dhanore, Taluka Khed, Pune – 412 105, Maharashtra, India
Tel. No.:	91-2135-302200
Fax No.:	91-2135-302386
Area :	34790 sq. mtrs
Location :	Owned by Company
Factory 2 :	1087/1088, Pimple - Jagtap Road, Sanaswadi, Taluka – Shirur, Pune – 412 210, Maharashtra, India
Tel. No.:	91-2138-280995
Fax No.:	91-2138-280997
Area :	48000 Sq. fts.

DIRECTORS

As on 10.08.2012

Name :	Mr. Adit Madhusadan Rathi
Designation :	Managing Director
Address :	B4, Abhi Manshree Society, Pashan Road, Pune – 411 008, Maharashtra, India
Date of Birth/Age :	10.09.1970
Date of Appointment :	30.09.1996
DIN No.:	00084380
PAN No.:	AAOPR0726J
Name :	Mr. Madhusudan Laxminarayan Rathi
Designation :	Managing Director
Address :	B4, Abhi Manshree Society, Pashan Road, Pune – 411 008, Maharashtra, India
Date of Birth/Age :	13.08.1940
Qualification :	B. Sc. Pune University ; DME, C Wadia Institute , Pune
Date of Appointment :	30.07.1999
DIN No.:	00084455
PAN No.:	AAOPR0728G
Name :	Mrs. Priyanka Adit Rathi
Designation :	Director
Address :	B4, Abhi Manshree Society, Pashan Road, Pune – 411 008, Maharashtra, India
Date of Birth/Age :	23.06.1972
Date of Appointment :	24.11.1997
DIN No.:	00084668
PAN No.:	AARPR3943C
Name :	Mr. Arun Bhagwandas Toshniwal
Designation :	Director
Address :	16/4, Ishwar Bhavan, Churchgate, Mumbai – 400 020, Maharashtra, India
Date of Birth/Age :	29.08.1942
Date of Appointment :	30.07.1999
DIN No.:	00144662
Name :	Mr. George Joseph
Designation :	Whole-time Director
Address :	A-104, Windsor Estate, Ramwadi, Pune – 411 014, Maharashtra, India
Date of Birth/Age :	14.05.1960
Date of Appointment :	01.10.2011
DIN No.:	05136151

KEY EXECUTIVES

Name :	Mr. S. B. Purohit
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 10.08.2012

Names of Shareholders	No. of Shares (Equity)
Rathi L. Madhusudan Adit	723317
Rathi L. Madhusudan (Preeti Rathi Trust)	201172
Rathi L. Madhusudan	442333
Rathi M. Prema	324046
Rsthi Adit Priyanka	55132
Vorwerk Autotech Beteilgungen GmbH, Germany	194000
TOTAL	1940000

Names of Shareholders	No. of Shares (Preference)
Rathi L. Madhusudan	2225
Rathi M. Preeti	525
Rathi M. Prema	88625
Rathi M. Adit	97625
Rathi A. Priyanka	16000
TOTAL	205000

Equity Share Break up (Percentage of Total Equity)

As on 10.08.2012

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	10.00
Directors or relatives of Directors	90.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Rubber Parts and Rubber Hoses.
Products :	· Automotive Rubber Moulded parts · Rubber Metal Parts Auto · Anti – Vibration Mounts · Silicon Hoses · Extruded Hoses
Exports :
Products :	Finished Goods
Countries :	USA
Imports :
Products :	Raw Materials
Countries :	· Malaysia · Thailand
Terms :
Selling :	L/C / Cash / Credit
Purchasing :	L/C / Cash / Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Rubber Products	Nos.	NA	NA	27452197

GENERAL INFORMATION

Customers :

Retailers and End Users

No. of Employees :

1000 (Approximately)

Bankers :

State Bank of India, Industrial Finance Branch, Tara Chambers, 2^nd Floor, Near Mariaai Police Chowky, Pune - Mumbai High Way, Wakdewadi, Pune - 411003, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Term Loans from banks	17.715	13.452
Working Capital Loans from banks	75.005	78.736
Other loans and advances	48.196	25.124
Total	140.916	117.312

Banking Relations :	--
Auditors :
Name :	Kirtane and Pandit Chartered Accountants
Address :	Sangati, 73/2/2, Bhakti Marg, Off Law Collage Road, Pune-411004, Maharashtra, India
PAN No.:	AACFK3469M
Group Company :	· Rathi Transpower Private Limited · Lovejoy Finance Private Limited
Group Entity :	· Rathi Engineering Services
Associates Company :	· Rathi Polybond Pty Limited

CAPITAL STRUCTURE

As on 10.08.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
1940000	Equity Shares	Rs. 10/- each	Rs. 19.400 millions
206000	6% and 7% Redeemable Preference Shares	Rs. 100/- each	Rs. 20.600 millions
	TOTAL		Rs. 40.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
1940000	Equity Shares	Rs. 10/- each	Rs. 19.400 millions
205000	6% and 7% Redeemable Preference Shares	Rs. 100/- each	Rs. 20.500 millions
	TOTAL		Rs. 39.900 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		39.900	39.900	39.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		257.162	203.767	147.445
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		297.062	243.667	187.345
LOAN FUNDS
1] Secured Loans		140.916	117.312	151.110
2] Unsecured Loans		61.672	71.436	57.669
TOTAL BORROWING		202.588	188.748	208.779
DEFERRED TAX LIABILITIES		11.399	9.466	6.693
TOTAL		511.049	441.881	402.817
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		276.353	222.627	217.994
Capital work-in-progress		1.182	3.926	0.808
INVESTMENT		12.136	12.594	15.497
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	115.392	102.318	79.640
	Sundry Debtors	296.373	226.954	172.125
	Cash & Bank Balances	13.400	17.249	11.158
	Other Current Assets	0.000	0.000	2.254
	Loans & Advances	83.878	65.781	66.585
Total Current Assets		509.043	412.302	331.762
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	201.442	154.031	96.622
	Other Current Liabilities	66.302	39.005	35.553
	Provisions	19.921	16.532	31.069
Total Current Liabilities		287.665	209.568	163.244
Net Current Assets		221.378	202.734	168.518
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		511.049	441.881	402.817

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income			722.854
		Other Income			9.034
		TOTAL (A)	1382.062	1095.940	731.888
Less	EXPENSES
		Cost of Materials			389.583
		Manufacturing Expenses			100.034
		Personal Expenses			75.415
		Increase/(Decrease) in Finished Goods			(15.111)
		Selling and Distribution Expenses			82.251
		Preliminary Expenses to W/Off			0.623
		TOTAL (B)	NA	NA	632.795
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)				99.093
Less	FINANCIAL EXPENSES (D)				15.386
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)				83.707
Less/ Add	DEPRECIATION/ AMORTISATION (F)		36.413	36.132	34.323
Less	PRIOR PERIOD ADJUSTMENT		NA	NA	0.134
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		91.670	79.972	49.250
Less	TAX (H)		30.975	16.352	0.435
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		60.695	63.620	48.815
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		176.666	126.706	90.121
Less	APPROPRIATIONS
		Preference Dividend	1.430	1.430	1.430
		Proposed Equity Dividend	4.850	4.850	4.850
		Tax on Dividend	1.019	1.019	1.067
		Transfer to General Reserve	6.069	6.362	4.881
	BALANCE CARRIED TO THE B/S		223.993	176.665	126.708
	EARNINGS IN FOREIGN CURRENCY		NA	637.115	461.632
	IMPORTS
		Raw Materials, Components and Spares	NA	143.670	78.578
	TOTAL IMPORTS		NA	143.670	78.578
	Earnings/(Loss) Per Share (Rs.)		28.29	32.79	22.76

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.39	5.81	6.67
Net Profit Margin (PBT/Sales)	(%)	NA	NA	6.81
Return on Total Assets (PBT/Total Assets}	(%)	11.67	11.91	8.96
Return on Investment (ROI) (PBT/Networth)		0.31	0.33	0.26
Debt Equity Ratio (Total Debt/Networth)		0.68	0.77	1.11
Current Ratio (Current Asset/Current Liability)		1.77	1.97	2.03

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Trade Payable	201.442	154.031	96.622

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	Yes
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	Yes
17]	Major suppliers	No
18]	Major customers	No
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Term Loans from others	0.000	8.629
Deferred payment liabilities	1.971	3.106
Deposits from Shareholders	48.001	49.501
Intercorporate Deposits	11.700	10.200
Total	61.672	71.436

FINANCIAL AND OPERATIONAL PERFORMANCE:

In the year the Company was able to better its performance and registered a positive growth in top line and bottom line. Of the total sales revenue of Rs. 1364.582 millions achieved during the year, 26 % is contributed by exports. Notwithstanding the rising cost of raw materials and escalation in other operating costs Company was able to maintain a Position the trend in Profits, primarily on account of efficient cost prudent financial management.

OUTLOOK FOR THE FUTURE:

The company has been awarded various orders for projects due to be launched in 2012-2015. Therefore the company is poised to register a sharp growth in sales and profitability.

Barring any unforeseen circumstances, the current year’s prospects look to be good.

Further, business diversification into disposable medical devices has been implemented with commissioning of a new modern plant and required approvals from regulatory authorities in place.

CONTINGENT LIABILITY

Contingent Liability not provided for, in respect of: -

(Rs. in millions)

PARTICULARS	31.03.2012
Bank Guarantees	0.694
Letter of Credit	22.483
Less Margin Money	12.977
Net Contingent Liability	10.199

FIXED ASSETS:-

· Building

· Lab Equipment

· Computer

· Plant and Machinery

· Office Equipment

· Furniture and Fixture

· 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 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.54.48
UK Pound	1	Rs.82.72
Euro	1	Rs.71.27

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		44

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.