MIRA INFORM REPORT

Report Date :

21^st June 2006

IDENTIFICATION DETAILS

Name :	RIMA TRANSFORMERS AND CONDUCTORS PRIVATE LIMITED
Registered Office :	18-D, II Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	02.01.1986
Com. Reg. No.:	08-7385
CIN No.: [Company Identification No.]	U27201KA1986PTC007385
TAN No.: [Tax Deduction & Collection Account No.]	BLRR03453C
PAN No.: [Permanent Account No.]	AAACR7427F
Legal Form :	Private Limited Liability Company
Line of Business :	The company is engaged in manufacturing of Power and Distribution Transformers, Paper covered copper and Aluminium strips, Winding Wires and Copper Flats, Rods

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 150000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Financial position is good. The company is doing well. Payments are correct and as per commitments. The company can be considered god for normal business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long run.

LOCATIONS

Registered Office :	18-D, II Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India
Tel. No.:	91-80-28396305 / 28397140 / 41 / 42
Fax No.:	91-80-28396305
E-Mail :	rtcpl@vsnl.com
Factory 1 :	R-330, T. T. C., MIDC Industrial Area, Behind IPCL, Rable, Thane Belapur Road, P O Ghansoli, Navi Mumbai – 400701
Tel. No.:	91-22-27692558 / 27691168
Fax No.:	91-22-27692780

DIRECTORS

Name :	Mr. Diwakar M. Shetty
Designation :	Managing Director
Address :	701/Woods Rock J P Road, Versova, Andheri (West), Mumbai – 400061, Maharashtra, India
Name :	Mr. Ritesh Shetty
Designation :	Director
Address :	701/Woods Rock J P Road, Versova, Andheri (West), Mumbai – 400061, Maharashtra, India

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Diwakar M. Shetty	19275
Mrs. Rekha Shetty	9625
Mr. Ritesh Shetty	5900
Mrs. Rima S Hegde	16100

BUSINESS DETAILS

Line of Business :

The company is engaged in manufacturing of Power and Distribution Transformers, Paper covered copper and Aluminium strips, Winding Wires and Copper Flats, Rods

Products :

Product Description	ITC Code No.
Paper covered copper and Aluminium strips/ Wires Copper and Aluminium, Bars / Flats/ Precfiles Etc.	8544.11
Power and Distribution Transformers	8504.22

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Copper Bars / Rods, Paper Covered Copper etc. For direct sales On Job Work	MT	1007	2520	866 1336
Transformers			750 MVA	140 Nos.

GENERAL INFORMATION

No. of Employees :

2000

Bankers :

State Bank of India,

Peenya Industrial Estate Branch,

B-94, II Cross, 1^st Stage,

Bangalore – 560058

Facilities :

Secured Loan	(Rs in millions)
From Schedule banks
Cash Credit (Secured by hypothecation of Company’s Stock and Book Debts)	35.975
Term Loan (Secured by hypothecation of Machinery)	1.020
Packing Credit Loan	5.997

Banking Relations :	Good
Auditors :	Acharya and Company Chartered Accountants

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
75000	Equity shares	Rs. 100/- each	Rs. 7.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50900	Equity shares	Rs. 100/- each	Rs. 5.090 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		5.090	5.090
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		31.306	26.953
4] (Accumulated Losses)		0.000	0.000
NETWORTH		36.396	32.043
LOAN FUNDS
1] Secured Loans		42.992	18.258
2] Unsecured Loans		5.664	5.839
TOTAL BORROWING		48.656	24.097
DEFERRED TAX LIABILITIES		1.432	2.697
TOTAL		86.484	58.837
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		18.746	19.302
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.307	7.780
	Sundry Debtors	109.653	67.913
	Cash & Bank Balances	12.221	15.260
	Other Current Assets	0.000	0.000
	Loans & Advances	22.534	8.095
Total Current Assets		167.715	99.048
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	93.760	56.808
	Provisions	6.217	2.705
Total Current Liabilities		99.977	59.513
Net Current Assets		67.738	39.535
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		86.484	58.837

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	393.074	257.326
Profit/(Loss) Before Tax	6.869	6.970
Provision for Taxation
Profit/(Loss) After Tax	4.353	4.595
Import Value	3.529	2.414
Total Expenditure	386.205	250.357

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004
PAT / Total Income	(%)	1.11	1.79
Net Profit Margin (PBT/Sales)	(%)	1.75	2.71
Return on Total Assets (PBT/Total Assets}	(%)	3.68	5.88
Return on Investment (ROI) (PBT/Networth)		0.18	0.21
Debt Equity Ratio (Total Liability/Networth)		4.08	2.60
Current Ratio (Current Asset/Current Liability)		1.67	1.66

LOCAL AGENCY FURTHER INFORMATION

Operational Review

The company’s Gross Receipts amounted to Rs. 393.100 millions as against Rs. 257.300 millions in the previous year.

Fixed Assets :

v Factory building

v Office Building

v Plant and Machinery

v Furniture and Fixture

v Electrical Installations

v Testing Equipments

v Office Equipments

v Vehicles

v Computer

In trade terms with :

v Brite Engineering

v Eltra Equipments Company India Private Limited

v Mil Mech Engineering

v Precimeasure Controls Private Limited

v Rainbow Industries

v Shankar Brazing

v Super Electrical

Name of the company

RIMA TRANSFORMERS AND CONDUCTORS PRIVATE LIMITED

Presented By

State Bank of India, Peenya Industrial Estate Branch, Bangalore – 560058

1) Date and description of instrument creating the change

08.11.1997 Agreement for the grant of Small industrial advance and hypothecation of movable, book debts and other assets (working capital finance)

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 28.000 millions (CC Hypothecation : Rs. 6.000 millions ; Receivable : Rs. 10.500 millions ; Inland : Rs. 7.500 millions and LC : Rs. 4.000 millions)

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of goods, book debts and other assets including monies receivable, Outstanding, Bills, Invoice etc. and present and future machinery belonging to the company and other movable assets.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest and margin as applicable from time to time Repayable on demand.

5) Name and Address and description of the person entitled to the charge.

State Bank of India

Peenya Industrial Estate Branch, Bangalore –

5600 58

6) Date and brief description of instrument modifying the charge

03.05.2001

General Agreement for the grant of small industrial advance and hypothecation of movable book debts and other assets

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Total limits enhanced to Rs. 44.000 millions

CC Hypothecation : Rs. 9.000 millions ; Receivable : Rs. 15.000 millions ; Inland : Rs. 10.000 millions and LC : Rs. 10.000 millions

Equitable mortgage created deposit of title deeds on company’s immovable properties Plot No- 18/D, in Peenya Industrial Estate Branch, Bangalore – 58

All other terms and conditions to continue.

Name of the company

RIMA TRANSFORMERS AND CONDUCTORS PRIVATE LIMITED

Presented By

State Bank of India, Peenya Industrial Estate Branch, Bangalore – 560058

1) Date and description of instrument creating the change

08.11.1997 Agreement for the grant of Small industrial advance and hypothecation of movable, book debts and other assets

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 28.000 millions (CC Hypothecation : Rs. 6.000 millions ; Receivable : Rs. 10.500 millions ; Inland : Rs. 7.500 millions and LC : Rs. 4.000 millions)

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of goods, book debts and other assets including monies receivable, Outstanding, Bills, Invoice etc. and present and future machinery belonging to the company and other movable assets.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest and margin as applicable from time to time Repayable on demand.

5) Name and Address and description of the person entitled to the charge.

State Bank of India

Peenya Industrial Estate Branch, Bangalore – 560058

6) Date and brief description of instrument modifying the charge

03.05.2002

Supplemental general agreement for the grant of small industrial advance and hypothecation of movable book debts and other assets

General Agreement for the grant of small industrial advance and hypothecation of movable book debts and other assets

Letter evidencing deposit of title deeds

All document relate to single modification

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Total limits enhanced to Rs. 54.500 millions

	Existing	New / modified
CC Hypothecation	9.000	9.000
CC Book debts	15.000	15.000
BG	10.000	17.500
LC	10.000	10.000
Term Loan	--	3.000
Total	44.000	54.500

Equitable mortgage created deposit of title deeds on company’s immovable properties Plot No- 18/D, in Peenya Industrial Estate Branch, Bangalore – 58

Against various credit facilities sanction by Bank. TL repayable in equal monthly instalment of Rs. 0.050 millions wef : 20.06.2002 Interest @ 14.50 p.a.

Name of the company

RIMA TRANSFORMERS AND CONDUCTORS PRIVATE LIMITED

Presented By

State bank of India, Peenya Industrial Estate Branch, B-94, II Cross, 1^st Stage, Bangalore – 560058

1) Date and description of instrument creating the change

08.11.1997 Agreement for the grant of Small industrial advance and hypothecation of movable, book debts and other assets

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 28.000 millions (CC Hypothecation : Rs. 6.000 millions ; Receivable : Rs. 10.500 millions ; Inland : Rs. 7.500 millions and LC : Rs. 4.000 millions)

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of goods, book debts and other assets including monies receivable, Outstanding, Bills, Invoice etc. and present and future machinery belonging to the company and other movable assets.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest and margin as applicable from time to time Repayable on demand.

5) Name and Address and description of the person entitled to the charge.

State Bank of India

Peenya Industrial Estate Branch, Bangalore –

5600 58

6) Date and brief description of instrument modifying the charge

24.03.2005

Supplemental general agreement for the grant of small industrial advance and hypothecation of movable book debts and other assets

Letter evidencing deposit of title deeds (Form -B)

All document relate to single modification

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Total limits enhanced from Rs. 78.000 millions to Rs. 118.000 millions by the addition of Rs. 40.000 millions

	Existing	New / modified
CC Hypothecation	9.000	10.000
CC Book debts	21.000	30.000
BG	30.000	35.000
LC	15.000	25.000
Term Loan	3.000	3.000
Stand by line of credit	--	15.000
Total	78.000	118.000

Hypothecation of entire stocks of raw materials, spares, stores semi-finished and finished goods, receivable, book debts, machineries and other assets belonging to the company to continue.

Extension of equitable mortgage of factory land and building situated at Plot No- 18/D, in Peenya Industrial Estate Branch, Bangalore – 58 to continue for the enhanced limits

Interest : 1.50 % above State Bank Advance Rate. Rising and falling therewith, effective rate 11.75 % p.a. with monthly rests.

All other terms, existing security and conditions to continue.

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 records 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 records 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. 46.01
UK Pound	1	Rs. 84.93
Euro	1	Rs. 58.30

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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
TOTAL		54

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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

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