MIRA INFORM REPORT

Report Date :

23.01.2014

IDENTIFICATION DETAILS

Name :	RUBBERKING TYRES INDIA PRIVATE LIMITED [w.e.f.24.01.2010]
Formerly Known As :	RUBBERKING TYERS INDIA PRIVATE LIMITED ASHA RUBBERS PRIVATE LIMITED
Registered Office :	103/104, Nendhara Apartment, Near GNFC Infotowes, S G Road, Bokadev, Ahmedabad – 380 054, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	08.02.1988
Com. Reg. No.:	04-010340
Capital Investment / Paid-up Capital :	Rs.19.200 Millions
CIN No.: [Company Identification No.]	U25110GJ1988PTC010340
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Butyl Rubber Inner Tubes and Curing Air Bags and Curing Bladders.
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 900000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The management has seen a better increase in its sales volume as well as net profitability during 2013. The ratings also take into consideration a decent financial profile marked by a conservative capital structure during the year under review. Trade relations are fair. Business is active. Payment terms are reported as usually correct. The company can be considered 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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating=BBB+
Rating Explanation	Moderate degree of safety and moderate credit risk.
Date	31.10.2013

Rating Agency Name	CRISIL
Rating	Short term rating=A2
Rating Explanation	Strong degree of safety and low credit risk.
Date	31.10.2013

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/ Head Office :	103/104, Nendhara Apartment, Near GNFC Infotowes, S G Road, Bokadev, Ahmedabad – 380 054, Gujarat, India
Tel. No.:	91-79-26855619/ 26850567
Fax No.:	91-79-26853390/ 26751985
E-Mail :	account@rubberking.net mktg@rubberking.net
Website :	http://www.rubberking.net
Unit 1 :	411/2, GIDC, Phase - ll, Vatva, Ahmedabad – 382 445, Gujarat, India
Unit 2 :	Plot No. 9, GIDC, Viramgam -382150, Gujarat, India
USA Liaison Office :	Waterford Business Park, 5201 Blue Lagoon Drive, Suite 839, Miami, FL 33126 USA
Tel. No.:	1-305-753-7068
E-Mail :	paula.guerrero@rubberking.net

DIRECTORS

AS ON 30.08.2013

Name :

Mr. Dineshchandra Ishwarlal Gawarvala

Designation :

Director

Address :

52-C, Goyal Park, Opposite Satellite Tower, Satellite Road, Near Premchandnagar, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

12.05.1942

Date of Appointment :

08.02.1988

DIN No.:

00984329

Name :

Mr. Samirkumar Dineshchanra Gawarvala

Designation :

Director

Address :

52-C, Goyal Park, Opposite Satellite Tower, Satellite Road, Near Premchandnagar, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

28.04.1967

Qualification :

B. Sc

Experience :

24 Years

Date of Appointment :

08.02.1988

DIN No.:

00985984

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U25110GJ1988PTC010340	RUBBERKING TYRES INDIA PRIVATE LIMITED	Director	08/02/1988	08/02/1988	Active	NO
2	U74140GJ2013PTC075352	FIORE VENTURES PRIVATE LIMITED	Director	29/05/2013	29/05/2013	Active	NO

Name :

Mr. Niren Dineshchandra Gawarvala

Designation :

Director

Address :

52-C, Goyal Park, Opposite Satellite Tower, Satellite Road, Near Premchandnagar, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

01.02.1970

Qualification :

A.M.I.E., M.S. [London]

Experience :

20 Years

Date of Appointment :

01.04.1992

DIN No.:

00985931

MAJOR SHAREHOLDERS

AS ON 30.08.2013

Names of Shareholders	No. of Shares
Dineshchandra Ishwarlal Gawarwala	280200
Niren Dineshchandra Gawarwala	375400
Samir Dineshchandra Gawarwala	375400
Bhagawati Rubber Product Industries, India	238800
Asha Dineshchandra Gawarwala	257000
Anar Samir Gawarwala	93400
Anal Niren Gawarwala	93800
Samir D. Gawarwala as a Guardian of Minor Devin S. Gawarwala	103200
Niren D. Gawarwala as a Guardian of Minor Priyanshi N. Gawarwala	102800
Total	1920000

Equity Share Break up (Percentage of Total Equity)

AS ON 30.08.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Butyl Rubber Inner Tubes and Curing Air Bags and Curing Bladders.

Products / Services :

ITC Code No.	Product Descriptions
401310	Inner Tubes of Rubber for Tyres of Automobile vehicles (such as motor cars, buses, lorries, tractors, 2-3 wheelers etc.)

PRODUCTION STATUS (AS ON 31.03.2011)

PARTICULARS OF LICENSED CAPACITY:

Particulars	31.03.2011
Inner Tubes and Rubber Flaps for Tyres of Automobiles Vehicles	No Industrial License is required under Industrial (Development and Regulations) Act, 1951.

PARTICULARS OF INSTALLED CAPACITY:

Particulars	31.03.2011
(As certified by a Director, not verified by Auditor, being a technical matter)
Inner Tubes of Rubber for Tyres of Automobile vehicles (such as motor cars, buses, lorries, tractors, 2-3 wheelers etc.)	Nos.1800000 (on the basis of three shifts, 300 working days per year)

PARTICULARS OF PRODUCTION:

Particulars	31.03.2011
Inner Tubes for Heavy Duty and LCV Tyres	Nos. 774901

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of Baroda, Gandhi Road Branch, Ahmedabad – 380 001, Gujarat, India

· Punjab National Bank, International Banking Branch, Ground Floor, Neelkamal Building, Opposite Sales India, Ahmedabad – 380 009, Gujarat, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
From Bank	0.000	11.469
From other Party	2.966	0.000
Short Term Borrowings
Working Capital Facility from Bank	72.191	90.737
Total	75.157	102.206

NOTES:

Long Term Borrowings:

Details of Security:

· Term loan from banks for purchase of fixed assets is secured by equitable mortgage of land and building and hypothecation of plant and machineries, second charge over entire current assets of the company present and future and personal guarantee of all directors.

· Deferred payment liability for purchase of vehicle is secured by hypothecation of vehicle.

Terms of Repayment:

The term loan and deferred payment liability are repayable in monthly equated installments over five years.

Short Term Borrowings:

Details of Securities:

Borrowings taken for working capital from bank are secured by first charge over the entire current assets of the company, present and future and second charge on block of assets of the company, present and future excluding vehicles and personal guarantee of all director.

Banking Relations :	--
Auditors :
Name :	Manubhai and Company Chartered Accountants
Address :	2nd Floor, B Wing, Premium House, Near Gandhigram Railway Station, Navrangpura, Ahmedabad – 380009, Gujarat, India
Tel. No.:	91-79-26580956/ 26580966/ 26582484/ 26585064
Fax No.:	91-79-26583573
E-Mail :	info@manubhaico.com
Website :	www.manubhaico.com
Income-tax PAN of auditor or auditor's firm :	AAFFM2086H
Subsidiaries :	G8 International FZE
Enterprise over which key management personnel exercise significant influence :	Bhagawati Rubber Product Industries

CAPITAL STRUCTURE

AS ON 30.08.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1920000	Equity Shares	Rs.10/- each	Rs.19.200 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	19.200	9.600	9.600
(b) Reserves & Surplus	227.208	199.320	194.340
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	246.408	208.920	203.940
(3) Non-Current Liabilities
(a) long-term borrowings	2.966	11.469	23.737
(b) Deferred tax liabilities (Net)	15.556	13.324	13.056
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	18.522	24.793	36.793
(4) Current Liabilities
(a) Short term borrowings	72.191	90.737	75.112
(b) Trade payables	44.255	32.205	41.241
(c) Other current liabilities	16.661	14.439	27.034
(d) Short-term provisions	28.362	9.266	7.410
Total Current Liabilities (4)	161.469	146.647	150.797
TOTAL	426.399	380.360	391.530
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	145.441	138.786	145.965
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	1.531	0.000	0.463
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.991	1.991	1.991
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	4.287	4.184	4.070
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	153.250	144.961	152.489
(2) Current assets
(a) Current investments	0.138	0.000	0.000
(b) Inventories	121.180	81.356	109.593
(c) Trade receivables	112.447	111.804	90.734
(d) Cash and cash equivalents	11.590	7.139	4.390
(e) Short-term loans and advances	18.972	19.882	34.324
(f) Other current assets	8.822	15.218	0.000
Total Current Assets	273.149	235.399	239.041
TOTAL	426.399	380.360	391.530

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income
		Other Income
		TOTAL	815.621	563.712	453.898
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	713.469	533.325	375.497
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		102.152	30.387	78.401
Less	DEPRECIATION/ AMORTISATION		15.544	14.380	13.434
	PROFIT BEFORE TAX		86.608	16.007	64.967
Less	TAX		26.657	5.449	22.562
	PROFIT AFTER TAX		59.951	10.558	42.405
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	245.436	182.804	197.573
	IMPORTS
		Raw Materials	247.183	92.509	67.935
	Earnings Per Share (Rs.)		31.22	11.00	44.17

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	7.35	1.87	9.34
Return on Total Assets (PBT/Total Assets}	(%)	20.48	4.24	16.70
Return on Investment (ROI) (PBT/Networth)		0.35	0.08	0.32
Debt Equity Ratio (Total Debt /Networth)		0.31	0.49	0.48
Current Ratio (Current Asset/Current Liability)		1.69	1.61	1.59

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	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

OPERATIONS:

During the year, there has been a smart increase in the top-line as well as the bottom-line figures of subject. The total income has increased from Rs.563.712 Millions in 2011-12 to Rs.815.621 Millions in 2012-13, which reflects an increase of 44.69% approximately. The profit before tax increased from Rs.16.007 Millions in 2011-12 to Rs.86.608 Millions in 2012-13. Subject has shown good performance due to overall positive sentiment in the market conditions as well as the effective steps taken to control the cost at all the levels of the business enterprise. Management expects to provide a better performance in the coming years.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10024655	04/10/2013 *	143,500,000.00	PUNJAB NATIONAL BANK	LARGE CORPORATE BRANCH, GROUND FLOOR, NEELKAMAL BUILDING, OPPOSITE SALES INDIA, AHMEDABAD - 380009, GUJARAT, INDIA	B86040425

* Date of charge modification

FIXED ASSETS:

· Land

· Buildings

· Plant and Equipments

· Electrical Installation

· Furniture and Fixture

· Vehicles

· Computers

· Office Equipments

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.61.92
UK Pound	1	Rs.101.98
Euro	1	Rs.83.93

INFORMATION DETAILS

Report Prepared by :

NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	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		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.