MIRA INFORM REPORT

Report Date :

22.03.2013

IDENTIFICATION DETAILS

Name :	M B RUBBERS PRIVATE LIMITED
Registered Office :	195, Gagan Vihar, Delhi – 110051
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	21.07.1988
Com. Reg. No.:	55-052019
Capital Investment / Paid-up Capital :	Rs.20.000 Millions
CIN No.: [Company Identification No.]	U74899DL1988PTC052019
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Footwear’s
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 170000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established having a moderate track record. Mr. Nikhil Jain, the contacted person has denied to disclose any details of the subject to us. There appears huge external borrowings recorded by the company. The profitability appears to be low. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. 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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	LONG TERM RATING : CRISIL B+
Rating Explanation	High risk of default
Date	18.10.2012

Rating Agency Name	CRISIL
Rating	SHORT TERM RATING : CRISIL A4
Rating Explanation	Minimal degree of safety and very high credit risk
Date	18.10.2012

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. Nikhil Jain
Contact No.:	91-9810863466
Date :	19.03.2013

LOCATIONS

Registered Office :	195, Gagan Vihar, Delhi – 110051, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	jainrakesh412@rediffmail.com
Factory :	D- 13, 14, 15 Site 4, Industrial Area, Shahibabad, Sahibabad - 201 010, Uttar Pradesh, India
Tel. No.:	91-120-2895464
Fax No.:	91-120-2895466

DIRECTORS

As on 29.09.2012

Name :	Mr. Rakesh Jain
Designation :	Director
Address :	195, Gagan Vihar, Delhi – 110051, India
Date of Birth/Age :	18.03.1957
Date of Appointment :	15.12.1990
DIN No.:	00116438
Name :	Mr. Vipan Mehta
Designation :	Director
Address :	195, Gagan Vihar, Delhi – 110051, India
Date of Birth/Age :	22.05.1958
Date of Appointment :	15.12.1990
DIN No.:	00119003
Name :	Mr. Parmod Jain
Designation :	Director
Address :	194, Gagan Vihar, Delhi – 110051, India
Date of Birth/Age :	01.08.1959
Date of Appointment :	03.08.2005
DIN No.:	00120111

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of directors	98.01
Other top fifty shareholders	1.99
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Footwear’s

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Footwear	Pairs	NA	NA	3800199
Footwear parts	Pairs	NA	NA	443835
Raincape/Coat	No.	NA	NA	96108

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Oriental Bank of Commerce, SSI Branch, Sahibabad, Ghaziabad - 201001, Uttar Pradesh, India

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

As on

31.03.2011

TERM LOAN

From Banks

27.046

1.232

From Others

19.378

26.188

LOANS REPAYABLE ON DEMAND

Cash Credit

(Cash Credit Limit from Oriental Bank of Commerce is secured against hypothecation of stocks and book debts and equitable mortgage of specific properties and personal guarantee of directors

111.268

88.581

Total

157.692

116.001

Notes:

I. There are no amounts repayable outstanding beyond twelve months from balance sheet date

II.

(Rs. In Millions)

Loans From	Nature of Security	Repayment Terms	Amount Outstanding As on 31.03.2012
Kotak Prime Limited	Hypothecation of Vehicle under finance	Repayable in Thirty Six equal monthly installments	0.738
Oriental Bank of Commerce	Hypothecation of Vehicle under finance	Repayable in Sixty equal monthly installments	0.495
Deutsche Bank	Equitable mortgage of Specific property	Repayable in One Hundred Twenty equal monthly installments	28.593
GE Money Financial Services Limited	Equitable mortgage of Specific property	Repayable in One Hundred Twenty equal monthly installments	19.828

Banking Relations :	--
Auditors :
Name :	Lalit Gupta and Associates Chartered Accountants
Address :	412, Arunachal Building, 19, Barakhamba Road, Connaught Place, New Delhi – 110001, India
PAN No.:	AAAFL5833E
Related Parties :	Dhruv Marketing Private Limited
Associates :	R. S. Pipes Private Limited H. B. Rubber Private Limited Zee Footwear Private Limited Theta International Private Limited Oshina Expo Vasu Sales Corporation

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.100/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Million

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		20.000	8.000	8.000
2] Share Application Money		0.000	2.100	0.000
3] Reserves & Surplus		21.985	17.701	13.944
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		41.985	27.801	21.944
LOAN FUNDS
1] Secured Loans		157.692	116.001	69.468
2] Unsecured Loans		21.611	44.223	54.670
TOTAL BORROWING		179.303	160.224	124.138
DEFERRED TAX LIABILITIES		0.067	0.278	0.489
TOTAL		221.355	188.303	146.571
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		37.055	35.088	33.388
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.020	0.020	0.040
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	97.627	107.724	78.291
	Sundry Debtors	123.231	70.394	55.150
	Cash & Bank Balances	3.090	2.470	3.884
	Other Current Assets	3.581	3.726	0.000
	Loans & Advances	20.790	23.057	23.485
Total Current Assets		248.319	207.371	160.810
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	49.251	39.878	42.740
	Other Current Liabilities	12.465	12.322	3.775
	Provisions	2.323	1.976	1.152
Total Current Liabilities		64.039	54.176	47.667
Net Current Assets		184.280	153.195	113.143
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		221.355	188.303	146.571

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	457.132	397.122	NA
		Other Income	1.621	4.349
		TOTAL (A)	458.753	401.471	NA
Less	EXPENSES
		Cost of Materials Consumed	361.467	324.054	NA
		Changes in Inventories of finished goods, Stock-on-Process and Stock-in-trade	6.441	(20.076)
		Purchase of stock –in-trade	4.488	17.516
		Employee benefits expenses	15.353	14.244
		Other Expenses	36.211	37.131
		TOTAL (B)	423.960	372.869	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		34.793	28.602	NA
Less	FINANCIAL EXPENSES (D)		22.538	17.663	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.255	10.939	NA
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.858	5.417	NA
	PROFIT BEFORE TAX (E-F) (G)		6.397	5.522	NA
Less	TAX (H)		2.113	1.765	NA
	PROFIT AFTER TAX (G-H) (I)		4.284	3.757	NA
	IMPORTS
		Raw Materials	43.829	37.779	21.562
		Capital Goods	2.842	0.654	1.075
	TOTAL IMPORTS		46.671	38.433	22.637
	Earnings Per Share (Rs.)		39.21	46.96	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.93	0.94	NA
Net Profit Margin (PBT/Sales)	(%)	1.40	1.39	NA
Return on Total Assets (PBT/Total Assets}	(%)	2.24	2.28	NA
Return on Investment (ROI) (PBT/Networth)		0.15	0.20	NA
Debt Equity Ratio (Total Debt/Networth)		4.27	5.76	5.66
Current Ratio (Current Asset/Current Liability)		3.88	3.83	3.37

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

DETAILS OF UNSECURED LOAN

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
LOANS AND ADVANCES
From Related Parties	16.611	35.819
From Other Parties	5.000	8.404
Total	21.611	44.223

FIXED ASSETS

• Land and Building
• Plant and Machinery
• Furniture and Equipments
• 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.54.28
UK Pound	1	Rs.82.06
Euro	1	Rs.70.23

INFORMATION DETAILS

Information Gathered by :	NYN
Report Prepared by :	BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.