MIRA INFORM REPORT

Report Date :

15.03.2013

IDENTIFICATION DETAILS

Name :	USR TYRES AND TREADS PRIVATE LIMITED
Registered Office :	No. 25, SIDCO Industrial Estate, Thiruvembur, Trichy – 620014, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.03.2001
Com. Reg. No.:	18-046876
Capital Investment / Paid-up Capital :	Rs. 8.300 Millions
CIN No.: [Company Identification No.]	U25111TN2001PTC046876
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of qualitative range of Polyurethane Caster Wheels, Solid Resilient Tyre, Aerobridge etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 22900
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The management has failed to file its latest financial i.e.2011-12 with the Government Department. From the previous year financial of 2011, it seems that there appear some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments terms are unknown. The company can be considered for business dealings with some caution.

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 :	No. 25, SIDCO Industrial Estate, Thiruvembur, Trichy – 620014, Tamilnadu, India
Tel. No.:	91-431-2552888
Fax No.:	91-431-2552888
E-Mail :	usr_india@yahoo.com info@usrtyres.com
Website :	www.usrtyres.com

DIRECTORS

AS ON 26.09.2011

Name :	Mr. Edmond Miranda Levin Miranda
Designation :	Managing director
Date of Birth/Age :	02.06.1959
Date of Appointment :	29.03.2001
DIN No.:	00889768
Name :	Levin Miranda Sarah Helan
Designation :	Director
Date of Birth/Age :	25.01.1965
Date of Appointment :	22.03.2004
DIN No.:	01702303

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 26.09.2011

Names of Shareholders	No. of Shares
Sara Helen	180000
Jayapal Rayan	10000
Edmond Miranda	150000
Ravi Miranda	60000
Binu Rayan	10000
Jeyaraj Miranda	120000
E. Levin Miranda	144000
E. Nishanth Rayan	26000
Princeton Miranda	10000
Gracy Fernando	120000
Total	830000

AS ON 26.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of qualitative range of Polyurethane Caster Wheels, Solid Resilient Tyre, Aerobridge etc.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø Indian Overseas Bank, Jamal Mohamed College Branch, Kajamalai, Tiruchirapalli - 620020, Tamilnadu, India

Ø Tamilnad Mercantile Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Indian Overseas Bank Term Loan	5.130	6.067
Indian Overseas Bank CC Account	9.987	2.960
Indian Overseas Bank Account	0.000	6.548
Total	15.117	15.575

Banking Relations :	--
Auditors :
Name :	M. Murugesan Chartered Accountant
Address :	60/15, Singapathope, Trichy – 620008, Tamilnadu, India
Tel. No.:	91-431-2702447
Income-tax PAN of auditor or auditor's firm :	AAACU4602K

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
950,000	Equity Shares	Rs. 10/- each	Rs. 9.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
830,000	Equity Shares	Rs. 10/- each	Rs. 8.300 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		8.300	8.300	8.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.215
4] (Accumulated Losses)		(2.564)	(1.933)	0.000
NETWORTH		5.736	6.367	8.515
LOAN FUNDS
1] Secured Loans		15.117	15.575	16.492
2] Unsecured Loans		9.124	9.124	9.124
TOTAL BORROWING		24.241	24.699	25.616
DEFERRED TAX LIABILITIES		0.860	0.860	0.860
TOTAL		30.837	31.926	34.991
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.085	14.959	17.071
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.346	0.346	0.346
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.788	0.000	0.000
	Sundry Debtors	12.170	12.739	14.545
	Cash & Bank Balances	0.010	0.024	0.039
	Other Current Assets	0.000	9.105	8.341
	Loans & Advances	0.000	0.537	0.000
Total Current Assets		22.968	22.405	22.925
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.507	2.728	2.315
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	3.055	3.056	3.036
Total Current Liabilities		5.562	5.784	5.351
Net Current Assets		17.403	16.621	17.574
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		30.837	31.926	34.991

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	41.524	0.117	18.901
		Other Income	0.000	N.A.	N.A.
		TOTAL	41.524	N.A.	N.A.
Less	EXPENSES
		Cost of material consumed	28.143
		Freight	0.416
		Power	0.864
		Fuel and Gas	0.875
		Factory Wages	4.487
		Factory Maintenance	0.041
		Salary, Wages and Bonus Paid	1.154
		Director Salary	0.300
		Bank Interest	2.433
		Labour Charges	0.548
		Terminal and Handling Charges	0.124
		Vehicle Maintenance	0.187
		Other Expenses	0.708
		TOTAL	40.280	N.A.	N.A.
	PROFIT/ [LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION		1.244	N.A.	N.A.
Less/ Add	DEPRECIATION/ AMORTISATION		1.874	N.A.	N.A.
	NET PROFIT/ [LOSS]		(0.630)	(2.148)	(0.561)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(1.52)	N.A.	N.A.
Net Profit Margin (PBT/Sales)	(%)	(1.52)	(1835.90)	(2.97)
Return on Total Assets (PBT/Total Assets}	(%)	(1.75)	(5.75)	(1.40)
Return on Investment (ROI) (PBT/Networth)		(0.11)	(0.34)	(0.07)
Debt Equity Ratio (Total Debt/Networth)		4.23	3.88	3.01
Current Ratio (Current Asset/Current Liability)		4.13	3.87	4.28

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	No
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	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Directors loan	9.124	9.124

PROGRESS OF THE COMPANY:

The Company had made the sales for Rs. 41.524 Millions the Directors anticipate growth in the progress of the Company.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U25111TN2001PTC046876
Name of the company	USR TYRES AND TREADS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 25, SIDCO Industrial Estate, Thiruvembur, Trichy – 620014, Tamilnadu, India Email: usr_india@yahoo.com
This form is for	Modification of charge
Charge identification number of the modified	90292967
Type of charge	Immovable property
Particular of charge holder	Indian Overseas Bank, Jamal Mohamed College Branch, Kajamalai, Tiruchirapalli - 620020, Tamilnadu, India Email: trjamabr@tri1sco.iobnet.co.in
Nature of description of the instrument creating or modifying the charge	Confirmation letter evidencing extension of equitable mortgage on the immovable properties of the company
Date of instrument Creating the charge	13.03.2012
Amount secured by the charge	Rs. 19.251 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest No change in rate of interest. No change in the total limits. Additional security given by way of extension of equitable mortgage on the immovable properties of the company Terms of Repayment No change in terms of repayment. No change in the total limits. Additional security given by way of extension of equitable mortgage on the immovable properties of the company Margin No change in margin. No change in the total limits. Additional security given by way of extension of equitable mortgage on the immovable properties of the company Extent and Operation of the charge No change in the total limits of Rs.19.251 Millions. Additional security given by way of extension of equitable mortgage on the immovable properties of the company
Short particulars of the property charged	Extension of equitable mortgage of factory land and building in the name of the company at Plot No. 25 SIDCO Industrial Estate, Sf. No. 353/2 and 356/2 parts, Koothapar Village, Trichy District all other existing securities will continue to hold good.
Date of Modification	14.01.2012
Particulars of the present modification	No change in the total limits of Rs.19.251 Millions. Additional security given by way of extension of equitable mortgage on the immovable properties of the company. The details of total limits are:- Limits ----- Rs. in Millions---- OCC/PC/UBDF 13.000 Term Loan 3.751 LG 2.500 Total 19.251

FIXED ASSETS:

Ø Land

Ø Building

Ø Machinery

Ø Electrical Fittings

Ø Furniture and Fixture

Ø 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. 54.44
UK Pound	1	Rs. 81.33
Euro	1	Rs. 70.50

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		26

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.