MIRA INFORM REPORT

Report Date :

19.10.2013

IDENTIFICATION DETAILS

Name :	VAIBHAV RUBBERS PRIVATE LIMITED
Registered Office :	Siontara RL-94, Milap Nagar, MIDC Dombivali (East) Thane – 421201, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	11.12.2003
Com. Reg. No.:	11-143505
Capital Investment / Paid-up Capital :	Rs. 2.500 Millions
CIN No.: [Company Identification No.]	U25100MH2003PTC143505
TAN No.: [Tax Deduction & Collection Account No.]	MUMV13400C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Crumb Rubber, Shredded Tyres, Scrap Tyres, Waste Tyres, etc.
No. of Employees :	15 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 16000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Reserves of the company appears to be low. The company has also recorded huge external borrowings. However, trade relations are reported as fair. Business is active. Payments are reported to be 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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 :	Prashant Vijay Parulekar
Designation :	Director
Contact No.:	91-9820557951
Date :	18.10.2013

LOCATIONS

Registered Office /Factory:	Siontara RL-94, Milap Nagar, MIDC Dombivali (East) Thane – 421201, Maharashtra, India
Tel. No. :	91-251-2860634
Mobile No. :	91-9820557951 (Mr. Prashant Vijay Parulekar)
Fax No. :	Not Available
E-Mail :	vcshah6@gmail.com vaibhavrubbers@gmail.com vcshah_branch@rediffmail.com

DIRECTORS

As on 29.09.2012

Name :	Mr. Prashant Vijay Parulekar
Designation :	Director
Address :	Siontara RL-94, Milap Nagar, MIDC Dombivali (East) Thane – 421201, Maharashtra, India
Date of Birth/Age :	16.03.1969
Date of Appointment :	11.12.2003
DIN No. :	01791470
Name :	Mr. Pradeep Vijay Parulekar
Designation :	Director
Address :	Siontara RL-94, Milap Nagar, MIDC Dombivali (East) Thane – 421201, Maharashtra, India
Date of Birth/Age :	11.08.1970
Date of Appointment :	11.12.2003
DIN No. :	02513071
Name :	Sandhya Vijay Parulekar
Designation :	Director
Address :	Siontara RL-94, Milap Nagar, MIDC Dombivali (East) Thane – 421201, Maharashtra, India
Date of Birth/Age :	10.03.1942
Date of Appointment :	11.12.2003
DIN No. :	03468169
Name :	Mr. Pravin Vijay Parulekar
Designation :	Director
Address :	Siontara RL-94, Milap Nagar, MIDC Dombivali (East) Thane – 421201, Maharashtra, India
Date of Birth/Age :	07.02.1967
Date of Appointment :	11.12.2003
DIN No. :	03468175
Name :	Mr. Prasad Vijay Parulekar
Designation :	Director
Address :	Siontara RL-94, Milap Nagar, MIDC Dombivali (East) Thane – 421201, Maharashtra, India
Date of Birth/Age :	12.08.1963
Date of Appointment :	11.12.2003
DIN No. :	03468176

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 18.09.2010

Names of Shareholders	No. of Shares
Vijay Bhaskar Parulekar	50000
Sandhya Vijay Bhaskar	50000
Prasad Vijay Parulekar	37500
Pravin Vijay Parulekar	37500
Prashant Vijay Parulakar	37500
Pradeep Vijay Parulekar	37500
Total	250000

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Crumb Rubber, Shredded Tyres, Scrap Tyres, Waste Tyres, etc.

Products :

Item Code No. (ITC Code)	Product Description
4016	· Crumb Rubber Shredded Tyres Tyre Cutting Pieces

· Crumb Rubber

Shredded Tyres

Scrap Tyres

Waste Tyres

All Types of Scrap Tyre Materials

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2012)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Crumb Rubber	In Tonnes	NA	1800.000 Tonnes	1215350 Tonnes
Tyre Cutting Pieces	In Nos.	NA	2500000 Nos.	1473292 Nos.
Shedded Tyre Material	In Tonnes	NA	1200.000 Tonnes	N IL

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

15 (Approximately)

Bankers :

Bank of Maharashtra, Bibikar Building, Opposite KDMC Office, Manpada Road, Dombivali, Thane - 421201, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Secured Loans (Term Loans)	5.903	3.313
SHORT TERM BORROWINGS
Bank overdraft	8.406	4.749
Total	14.309	8.062

Banking Relations :	--
Auditors :
Name :	V C Shah and Company Chartered Accountants
Address :	408-409, Commerce Centre, Tandon Road, Ramnagar, Dombivli, Mumbai – 421201, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AADFV8088N

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs. 2.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2.500	2.500
(b) Reserves & Surplus	1.610	0.973
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	4.110	3.473
(3) Non-Current Liabilities
(a) long-term borrowings	10.101	7.603
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	10.101	7.603
(4) Current Liabilities
(a) Short term borrowings	8.406	4.749
(b) Trade payables	3.287	5.302
(c) Other current liabilities	2.647	0.918
(d) Short-term provisions	0.836	1.981
Total Current Liabilities (4)	15.176	12.950
TOTAL	29.387	24.026
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	13.974	7.127
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.059	0.135
(d) Long-term Loan and Advances	0.599	0.397
(e) Other Non-current assets	0.008	0.017
Total Non-Current Assets	14.640	7.676
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	8.803	10.283
(c) Trade receivables	5.653	4.673
(d) Cash and cash equivalents	0.190	0.011
(e) Short-term loans and advances	0.101	0.000
(f) Other current assets	0.000	1.383
Total Current Assets	14.747	16.350
TOTAL	29.387	24.026

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2.500
2] Share Application Money		0.000
3] Reserves & Surplus		0.462
4] (Accumulated Losses)		0.000
NETWORTH		2.962
LOAN FUNDS
1] Secured Loans		9.791
2] Unsecured Loans		4.633
TOTAL BORROWING		14.424
DEFERRED TAX LIABILITIES		0.000
TOTAL		17.386
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.547
Capital work-in-progress		0.000
INVESTMENT		0.869
DEFERRED TAX ASSETS		0.034
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.563
	Sundry Debtors	3.960
	Cash & Bank Balances	0.039
	Other Current Assets	0.008
	Loans & Advances	1.074
Total Current Assets		13.644
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.122
	Other Current Liabilities	0.000
	Provisions	1.611
Total Current Liabilities		5.733
Net Current Assets		7.911
MISCELLANEOUS EXPENSES		0.025
TOTAL		17.386

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	34.885	32.814	19.530
		Other Income	0.016	0.173	0.067
		TOTAL (A)	34.901	32.987	19.597
Less	EXPENSES
		Cost of material consumed	15.939	18.184
		Employee Benefit Expenses	4.054	3.482
		Other Expenses	9.824	9.669
		Changes in inventories of Finished Goods, WIP	1.480	(1.720)
		TOTAL (B)	31.297	29.615	16.970
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.604	3.372	2.627
Less	FINANCIAL EXPENSES (D)		1.227	1.385	1.143
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.377	1.987	1.484
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.530	1.476	1.236
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		0.847	0.511	0.248
Less	TAX (H)		0.210	0.000	0.080
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		0.637	0.511	0.164
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.973	0.462	0.298
	BALANCE CARRIED TO THE B/S		1.610	0.973	0.462
	Earnings / (Loss) Per Share (Rs.)		2.55	2.04	0.66

Particulars	31.03.2013
Sales Turnover (Approximately)	40.000

Expected Sales (2013-2014) : Rs. 45.000 Millions

The above information has been parted by Prashant Vijay Parulekar (Director).

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.83	1.55	0.84
Net Profit Margin (PBT/Sales)	(%)	2.43	1.56	1.27
Return on Total Assets (PBT/Total Assets}	(%)	2.89	2.14	1.12
Return on Investment (ROI) (PBT/Networth)		0.21	0.02	0.01
Debt Equity Ratio (Total Debt/Networth)		4.50	3.56	4.87
Current Ratio (Current Asset/Current Liability)		0.97	1.26	2.38

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	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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10353934	24/03/2012	3,000,000.00	BANK OF MAHARASHTRA	BIBIKAR BUILDING, OPPOSITE KDMC OFFICE, MANPADA ROAD, DOMBIVALI, THANE - 421201, MAHARASHTRA, INDIA	B39024864
2	10288277	25/03/2010	2,475,000.00	BANK OF MAHARASHTRA	BIBIKAR BUILDING, OPPOSITE KDMC OFFICE, MANPADA ROAD, DOMBIVALI, THANE - 421201, MAHARASHTRA, INDIA	B01560564
3	10042384	24/03/2012 *	13,000,000.00	BANK OF MAHARASHTRA	BIBIKAR BUILDING, OPPOSITE KDMC OFFICE, MANPADA ROAD, DOMBIVALI, THANE - 421201, MAHARASHTRA, INDIA	B39022561

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
LONG TERM BORROWINGS
Unsecured loan from director	4.198	4.290
Total	4.198	4.290

WORKING

The company has streamlined its production activities and also proposes to expand the capacities considering the response from the market for the procuct of the company. The company is trying to add vaiue fo the existing products and also trying to new avenues to increase the turnover of the cempany. There was frequent break down in the machineries which has hampered production of the company and the capacities could not be utilized at its full.

FIXED ASSETS

· Office Equipments

Plant and Machinery

Transformer

Office Equipments

Electrical Installations

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.61.28
UK Pound	1	Rs.99.03
Euro	1	Rs.83.80

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.