MIRA INFORM REPORT

Report Date :

22^nd June 2006

IDENTIFICATION DETAILS

Name :	BEHR INDIA LIMITED
Registered Office :	29, Milestone, Pune-Nasik Highway, Village Kuruli, Taluka Khed, District Pune - 410 501, Maharashtra, India.
Country :	India
Financials (as on) :	31.12.2004
Date of Incorporation :	28.04.1997
Com. Reg. No.:	11-107619
CIN No.: [Company Identification No.]	U34300PN1997OLC107619
TAN No.: [Tax Deduction & Collection Account No.]	PNEB01594F
Legal Form :	It is a closely held public limited liability company. Subject is a subsidiary of Behr GmbH & Company, Germany.
Line of Business :	Manufacturers, Producers, Sellers, Importers, Exporters, Distributors, Dealers, Commission Agents and Market Representatives of all kinds of Automotive Components and Systems.

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 1000000
Status :	Satisfactory
Payment Behaviour :	Slow bur correct
Litigation :	Clear
Comments :	The company was not faring well for the last 4 years, but it has been able to perform well and make alround improvements in its turnover and profits. Trade relations are reported as fair. Payments are currently slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	29, Milestone, Pune-Nasik Highway, Village Kuruli, Taluka Khed, District Pune - 410 501, Maharashtra, India.
Tel. No.:	91-20-24101901 / 2
Fax No.:	91-20-24101903
E-Mail :	pravesh.srivastava@behrgroup.com / rao.kishor@behrgroup.com
Website :	http://www.anandgroupindia.com
Area :	12831 sq.mtrs
Factory 1 :	29, Milestone, Pune-Nasik Highway, Village Kuruli, Taluka Khed, District Pune - 410 501, Maharashtra, India.
Tel. No.:	91-20-4101901 / 2
Fax No.:	91-20-4101903
E-Mail :	pravesh.srivastava@behrgroup.com / rao.kishor@behrgroup.com
Website :	http://www.anandgroupindia.com
Area :	12831 sq.mtrs
Factory 2 :	B-5, Chakan Industrial Area, District Khed, Pune, Maharashtra, India

DIRECTORS

Name		Mr. Deep C. Anand
Designation		Chairman and Managing Director
Address		Anand Farm, 25.3 Km Palam Gurgaon Road, Gurgaon - 122016, Haryana, India
Date of Birth/Age :	26^TH August, 1933
Date of Appointment		13^TH May, 1997
Name		Mr. Prakash Bhalekar
Designation		Director
Address		15/16, Anand Farm, Anfilco Colony, Dundahera Old Delhi-Gurgaon Road, Gurgaon, Haryana, India
Date of Birth		9^th December, 1968
Date of Appointment		10^th May, 2004
Name		Mr. Erich Woitsch
Designation		Director
Date of Birth		26^th June, 1959
Date of Appointment		17^th September, 2003
Address		Stetteritzring 109A, 64380, Rossdorf, Germany
Name		Mr. Rainer Horst Shyetz
Designation		Director
Address		Imder Were 16, 70619, Stuttgart, Germany
Date of Birth		3^rd July, 1952
Date of Appointment		13^th May, 1997
Name		Mr. Schmiederer Bernhard Klemens
Designation		Director
Address		Mozartstrasse 28, 75397, Simmozheim, Germany
Date of Birth		9^th November, 1959
Date of Appointment		18^th June, 2002
Name		Mr. Dirk Wolfgang Heers
Designation		Director
Address		DE LA Vall E – 08757, Corbera De, Llobre, Gat Esparia
Date of Birth		29^th July, 1962
Date of Appointment		22^nd December, 2004
Name		Mr. Simanitini Ashok Deochake
Designation		Director
Address		H – 5, H – 6, Samarth Nagar, Vadgaon Budrukh, Mumbai – Bangalore Highway, Pune – 411041, Maharashtra, India
Date of Birth		15^th February, 1983
Date of Appointment		13^th April 2005

Name :	Mr. P. K. Srivastava
Designation :	Senior Vice President
Age :	50 Years
Qualification :	B. E. (Industrial), PGDM (IIM Calcutta)
Date of Appointment	20^th April 1997
Last Employments :	Spicer India Limited – Vice President

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Behr Holdings International GmbH	15460000
Ansyco Limited	7999995
Asia Investments Private Limited	1640000
Mr. Patel S. Chandrakant	1
Mr. Subramaniam N. K.	1
Mr. Deepak Chopra	1
Mr. Sharma P. S.	1
Mr. Srivastava K. Praveen	1
Total	25100000

BUSINESS DETAILS

Line of Business :	Manufacturers, Producers, Sellers, Importers, Exporters, Distributors, Dealers, Commission Agents and Market Representatives of all kinds of Automotive Components and Systems.
Products :	· Air Conditioning Systems · Automotive Components

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Radiators, comprising of radiator assemblies and fan shroud assembly	Nos.	120000	106922
Automotive air conditioning systems, its parts and components	Nos.	120000	82971
Compressor assembly and its components and parts thereof	Nos.	120000	106645
Ventilation Units	Nos.	40000	2833
Heat exchangers	Nos.	300000	249698

GENERAL INFORMATION

No. of Employees :	Around 100
Bankers :	Bank of Baroda Corporate Banking Branch, Mantri Court, 1^st Floor, 39, Ramabai Ambedkar Road, Pune – 411 001, Maharashtra, India
Facilities :	--

Banking Relations :	Satisfactory
Auditors :	S. R. Batliboi and Associates Chartered Accountants The Metropole, F-1, 1^st Floor, B. G. Road, Pune-411001, Maharashtra, India
Branch Office :	Located At: Kolkata, New Delhi, Mumbai, Chennai, Hyderabad, Bangalore and Pune
Tel. No.:	91-20-24016000
Fax No.:	91-20-24015900
Associates :	? Asia Investments Private Limited 1, Sri Aurobindo Marg, New Delhi – 110 016 ? Ansyco Limited 1, Sri Aurobindo Marg, New Delhi – 110 016
Subsidiaries	Ø Behr France SARL Ø Frappe Behr SA Ø Behr Amrica Inc Ø Behr Lorraine SARL Ø Behr Kirchberg GmbH Ø Behr Industrietechnik GmbH and Company
Holding Companies :	? Behr GmbH & Company KG, Germany ? Behr Holding International GmbH Mauserstrasse 3, D-70469, Stuttgart, Germany
Group Companies :	Ø Behr GmbH and Company, KG Ø Behr France SARL Ø Behr Lorraine SARL Ø Behr Kirschberg GmbH Ø Hellas Behr GmbH Ø Behr America Inc Ø Frape Behr SA Ø BIT Stufart GmbH Ø Behr Service GmbH Ø BIT Mylau Ø Behr Climate Systems Ø Hella Behr Fahrzeugsysteme GmbHHH Ø Behr Czech s.r.o.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
24100000	Equity Shares	Rs. 10/-	Rs. 241.000 millions
1000000	Equity Shares	Rs. 100/-	Rs. 100.000 millions
	Total		Rs. 341.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24100000	Equity Shares	Rs. 10/-	Rs. 241.000 millions
1000000	Equity Shares	Rs. 100/-	Rs. 100.000 millions
	Total		Rs. 341.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2004	31.12.2003	31.12.2002
SHAREHOLDERS FUNDS
1] Share Capital	341.000	341.000	341.000
2] Reserves & Surplus	0.000	0.000	0.000
3] Profit and Loss Account	(31.555)	(164.862)	(216.806)
NETWORTH	309.445	176.138	124.194
LOAN FUNDS
1] Secured Loans	0.000	98.983	160.448
2] Unsecured Loans	104.792	236.241	227.460
TOTAL BORROWING	104.792	335.224	387.908
DEFERREX TAX LIABILITY	10.628	0.000	0.000
TOTAL	424.865	1023.464	512.102
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	230.052	247.602	246.774
Capital work-in-progress	3.203	0.000	11.938
Capital Advance	4.481	5.042	7.536
DEFERREX TAX ASSETS	0.000	90.738	117.986
CURRENT ASSETS, LOANS & ADVANCES
Inventories	237.888	202.656	206.614
Sundry Debtors	230.314	332.865	220.608
Cash & Bank Balances	196.437	102.255	6.399
Other Expenses	1.900	0.764	0.000
Loans & Advances	56.881	40.547	47.286
Total Current Assets	723.420	679.087	480.907
Less : CURRENT LIABILITIES & PROVISIONS
Current Liabilities	406.417	501.225	372.172
Provisions	146.058	42.527	28.789
Total Current Liabilities	552.475	543.752	400.961
Net Current Assets	170.945	135.335	79.946
MISCELLANEOUS EXPENSES	16.184	32.645	47.922
TOTAL	424.865	1023.464	512.102

PROFIT & LOSS ACCOUNT

PARTICULARS	31.12.2004	31.12.2003	31.12.2002
Sales Turnover [including other income]	2475.740	2140.953	1270.010
Profit/(Loss) Before Tax	335.590	79.191	(9.833)
Provision for Taxation	132.366	(27.247)	3.665
Profit/(Loss) After Tax	203.224	51.944	(6.168)
Export Value	469.863	365.260	216.827
Import Value	804.047	738.284	494.197
Total Expenditure	2140.150	2042.145	1295.910

KEY RATIOS

PARTICULARS		31.12.2004	31.03.2003	31.03.2002
PAT / Total Income	(%)	8.20	2.42	(0.48)
Net Profit Margin (PBT/Sales)	(%)	13.55	3.69	(0.77)
Return on Total Assets (PBT/Total Assets}	(%)	35.19	7.74	(1.13)
Return on Investment (ROI) (PBT/Networth)		1.08	0.45	(0.08)
Debt Equity Ratio (Total Liability/Networth)		2.12	8.89	7.35
Current Ratio (Current Asset/Current Liability)		1.30	1.25	1.20

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

· Land

· Plant and Machinery

· Furniture and Fixture

· Motor Vehicles

· Computer

· Office and other Equipments

HISTORY

Behr India Ltd., established in December 1997 for the manufacture of air conditioning systems for automobiles, has a state-of-the-art facility near Pune. The Company is a joint venture between Anand Automotive Systems and Behr of Germany, a leading name in the world for the manufacture of products and systems for engine cooling and vehicle air conditioning as well as heating and cooling technology for the industrial sector. The Company is a single source supplier to Mahindra & Mahindra-Scorpio and Tata-Indigo with a 60% share of Tata-Indica.

PERFORMANCE

The Indian Economy continued to witness strong growth in GDP at 6.9 % which was contributed by 1.1 % growth in Agriculture, 8.4 % growth in Industry and 8.9 % growth in Services. The Automotive industry grew by 16 % which was much higher than the overall industrial growth rate of 8.9 %. This growth was fuelled by customer friendly strategies of vehicles manufacturers, easy availability of credit for financing and low interest rates.

While the overall growth in Automotive Industry was 16 % the Passenger car segment grew by 24 % and the Multi Utility Vehicle segment grew by 27 % . these two segments are catered to by the company .

While the company’s passenger car Customer had a growth of 31 %, the MUV Customer growth was 24 %

The company’s sales at Rs. 2451.11 Millions during the year under review recorded growth of 15 % over the previous years sales of Rs. 2128.53 millions.

Export sales at Rs. 510.62 millions constitutes 21 % of total sales, as against Rs. 387.55 millions in the previous year. I.e. a growth of 32 %

As a result the company’s Profit before Tax improved to Rs. 335.6 millions against Rs. 79.200 millions in the previous year, showing a robust increase of 324 %. After making provision for tax, including for deferred tax liability as per accounting standard 22, of Rs. 132.4 million, the company achieved Profit after Tax of Rs. 203.2 million, company with Rs. 51.900 millions in the previous year, showing an increase of 291 %

This was achieved by being cost competitive, improvement in productivity, prudent working capital management and strategic initiatives in product performance.

OPERATION

The production of automotive air-conditioning systems, its components and parts thereof was higher at 106922 number in the year under review against 92829 numbers in the pervious year. Further the production of Heat Exchangers i.e. Evaporate and Condensers was higher at 249698 numbers during the year against 223859 numbers in the previous year.

The company exported hear exchangers with manifold assemblies and EGR parts worth Rs. 272.24 millions during the year against Rs. 138.45 millions in the previous year i.e. an increase of 97 %. Export earning from Engineering Services increased form Rs. 7.0 millions to Rs. 178 millions, which represents increase of 126 %

The company also started commercial supplier to its customers for their Indigo Marine Model, Indica and Scorpio face lifts.

During the year the company increased the supply of Wiring Hearness to Germany and the USA. The company also started for the first time Gravity Die Casting and Pressure Die Casting parts. Further opportunities are being explored for new parts.

The company has fully prepaid the FCNR Loan of Rs. 78 million thereby becoming debt free. The company has also partly prepaid the Sales Tax Deferral loan and booked profit of Rs. 86.8 millions during the year.

DIVIDEND

The directors have recommended payment of accumulated preference dividend on 1000000 6 % Cumulative Redeemable Preference shares for four years. 2001 to 2004 to those members whose name appear on the Register of Members as on May 10, 2005 the record date fixed for the purpose of payment of dividend.

Collaborators

The company wishes to place on record its sincere appreciation for the continued support extended by its Collabotatrs, Berhr GMBH and Company KG and its affiliates, especially in the areas of Quality improvements and technology up gradation. the company has received valuable support from its collaborators for its export program of manufactured products traded goods and engineering services.

Business Segments

The company has considered “Business Segments” as the “Primary Segments” for disclosure. Automotive air conditioning systems, parts , components and services thereof are sold to the Original Equipments Manufacturers and Behr Group Companies.

The service segment provides Engineering product Design Services to Behr Group companies.

Trade Reference

· Kiran Enterprises

· Trimoorthy Decorative Components

· Anupama Enterprises

· Creative Metal Craft

· Remson Industries Limited

· Indica Chemicals industries

· Esteem Engineering Works

· Satson Engineering Works

· Hightensile Fastnuts India Private Limited

· Micro Screw Manufacturing

· Plasto Craft

· Shutham Electrics Limited

· Sai Art

· Strlite Corporate

· Lchalkaranji Mettloy Founders Private Limtied

· Yash industries

Contact

Mr P K Srivastava (Chief Operating Officer)
29 Milestone
Pune- Nashik Highway
Village - Kuruli, Taluka Khed
District Pune - 410501
Maharashtra
India

E-mail	:	pravesh.srivastava@behrgroup.com
Phone	:	+91-2135-52227/8 , +91-20-4101901, 2 & 4
Fax	:	+91-2135-52839 +91-20-4101903

Profile

Anand is a leading manufacturer of automotive components and systems in India. With a sales turnover of US$ 444 million, it has the widest range of auto components, supplied to virtually every vehicle and engine producer in the country.

In 1961, Mr Deep C Anand, Chairman of Anand Automotive Systems, founded the Group’s flagship company - Gabriel India in Mumbai for the manufacture of shock absorbers. Today, Anand comprises 18 companies spread in eight states of the country. It has also built up a sizeable export market, currently about 17% of the total sales of existing products, targeted to reach 30% in the next few years.

Employing over 5800 people, Anand has 800 professionally qualified Engineers, MBAs and CAs. It invests two per cent of its sales every year on training and development programmes, conducted by its in-house technical and management institute - Anand 'U'.

Behr India Limited, established in December 1997 for the manufacture of air conditioning systems for automobiles, has a state-of-the-art facility near Pune. The Company is a joint venture between Anand Automotive Systems and Behr of Germany, a leading name in the world for the manufacture of products and systems for engine cooling and vehicle air conditioning as well as heating and cooling technology for the industrial sector. The Company is a single source supplier to Mahindra & Mahindra-Scorpio and Tata-Indigo with a 60% share of Tata-Indica.

Name of the company

BEHR INDIA LIMITED

Presented By

MR. P. K. SRIVASTAVA

1) Date and description of instrument creating the change

Hypothecation agreement dated 28.11.1998

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

	(Rs in millions)
Term Loan	200.000
Cash Credit	40.000
Letter f Credit	20.000
Bank Guarantee	2.000
Total	262.000

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 whole of the Borrower good both present and future and including but without prejudice to the generality of ht foregoing words, all stock of raw materials, work in process, semi finished good and finished goods such as Aluminium Radiators, Air conditioning systems, components and part thereof, heaters packing Materials spares and stores etc. whatsoever and where so ever situate and or in transit whether now belonging to or that may at any time during the continuance of this security belonging to the borrower or that may be held by party any where to the order and disposition of the borrower.

All the present and future book debs, out debts, outstanding , monies receivable claims, bills contracted, engagements, and secutiries which are now due and owing or which may at any time hereafter during continuance of this security become due and owing ot he borrower in the course of its business by any percon, firm, company or body corporate or by the government of India railways or any government department or officer and any municipal or local or public or semi government body or authority whatsoever including those relating to the assets leased our and given on hire purchase basis.

All ht tangible movable machinery and plant and carnes boats and crafts and the vehicles of the Borrower together with spares, tools and accessories and other movable both preset and future and ht furniture, fixture and fittings and office equipments whether installed or not and whether lying loose or in cases which are now lying or stored in or about or shall be brought into or be in or upon or about the borrowers premises and godwons or where ever else the same many be ro held by any party to the order or disposition of the Borrower relating or pertaining to the Borrowers work at 29, Milestone, Kuruli, Pune or B-5, Chaskan MIDC Mahalung Khed, Pune

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

Facility	Limit	Rate of Interest	Security stipulated	Margin of security
Term Loans	200	PLR 2 % p.a. interest tax	Hypothecation of movable m/ c	25 %
Cash Credit	40	--	Hypothecation of stocks and book debts	25 %
Letters of credit	20	As per FEDAI Rules Bank	Extension of charge on stocks and book debts	10 %
Bank Guarantee	200	As per Bank circlers	Extension of charge on stocks and book debts	10 %

Repayments of term loan 10 equal successive half yearly installments commencing after 18 months from the date of first disbursement of each loan

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

Bank of Baroda

Corporate Banking Branch, Mantri Court, 1^st Floor, 39, Ramabai Ambedkar Road, Pune – 411 001, Maharashtra, India

6) Date and brief description of instrument modifying the charge

Second supplemental memorandum of entry dated 06.02.2004

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.

Original charge created on 28.11.1998 for Rs. 262.000 millions is further modified on 13.10.1999 by memorandum of entry evidencing equitable mortgage created by deposit of title deeds or land as an additional security. 29, Milestone, Kuruli, Pune or B-5, Chaskan MIDC Mahalung Khed, Pune , Maharashtra containing by admeasuring 12831 sq. mt. Or there about bounded as follows that is to say.

On or towards the North by – MIDC Boundary

On or towards the South by – MIDC Road

On or towards the East by – MIDC Land

On or towards the West by – MIDC Land

Together with all building and structures now standing thereon or to be erected hereafter and the plant and machinery attached to the earth or permanently fastened to anything attached to the earth both present and future.

Other terms and conditions remain the same.

Which was further modified by first supplemental composite instrument of hypothecation of goods, book debns, movable machinery and vehicles dated 04.04.2000 supplemental memorandum of entry dated 04.04.2000

Facility	Present limit	Revised Limit
Term,	200	200
Cash credit stock and book dents	20	90
Sub limit bils discounting	--	20
Letter of credit (DA DP 90 days ) for raw materials	2.00	30
Letter of credit for capital goods	--	0.2
In land bank guarantee	2.00	2.0

Which was further modified by second supplemental composite instruments hypothecation of goods book denbts movable machinery and vehicles dated 24.12.2003 revised the limits as under :

Facility	Present limit	Revised Limit
Term,	200	78
Cash credit stock and book dents	90	250
Sub limit bils discounting	(20)	200
Letter of credit (DA DP 90 days ) for raw materials	--	500
Letter of credit for capital goods	50	170
In land bank guarantee	2.00	200

Which is further modified by second sypplemental memorandum of entry dated 06.02.2004. the charge on immovable property extended to cover the enhanced limits.

Name of the company

BEHR INDIA LIMITED

Presented By

MR. P. K. SRIVASTAVA

1) Date and description of instrument creating the change

Hypothecation agreement dated 28.11.1998

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

	(Rs in millions)
Term Loan	200.000
Cash Credit	40.000
Letter f Credit	20.000
Bank Guarantee	2.000
Total	262.000

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 whole of the Borrower good both present and future and including but without prejudice to the generality of ht foregoing words, all stock of raw materials, work in process, semi finished good and finished goods such as Aluminium Radiators, Air conditioning systems, components and part thereof, heaters packing Materials spares and stores etc. whatsoever and where so ever situate and or in transit whether now belonging to or that may at any time during the continuance of this security belonging to the borrower or that may be held by party any where to the order and disposition of the borrower.

All the present and future book debs, out debts, outstanding , monies receivable claims, bills contracted, engagements, and secutiries which are now due and owing or which may at any time hereafter during continuance of this security become due and owing ot he borrower in the course of its business by any percon, firm, company or body corporate or by the government of India railways or any government department or officer and any municipal or local or public or semi government body or authority whatsoever including those relating to the assets leased our and given on hire purchase basis.

All ht tangible movable machinery and plant and carnes boats and crafts and the vehicles of the Borrower together with spares, tools and accessories and other movable both preset and future and ht furniture, fixture and fittings and office equipments whether installed or not and whether lying loose or in cases which are now lying or stored in or about or shall be brought into or be in or upon or about the borrowers premises and godwons or where ever else the same many be ro held by any party to the order or disposition of the Borrower relating or pertaining to the Borrowers work at 29, Milestone, Kuruli, Pune or B-5, Chaskan MIDC Mahalung Khed, Pune

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

Facility	Limit	Rate of Interest	Security stipulated	Margin of security
Term Loans	200	PLR 2 % p.a. interest tax	Hypothecation of movable m/ c	25 %
Cash Credit	40	--	Hypothecation of stocks and book debts	25 %
Letters of credit	20	As per FEDAI Rules Bank	Extension of charge on stocks and book debts	10 %
Bank Guarantee	200	As per Bank circlers	Extension of charge on stocks and book debts	10 %

Repayments of term loan 10 equal successive half yearly installments commencing after 18 months from the date of first disbursement of each loan

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

Bank of Baroda

Corporate Banking Branch, Mantri Court, 1^st Floor, 39, Ramabai Ambedkar Road, Pune – 411 001, Maharashtra, India

6) Date and brief description of instrument modifying the charge

Second supplemental composite deed of hypothecation of goods book debts movable machinery and vehicles dated 24.12.2003

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.

Original charge created on 28.11.1998 for Rs. 262.000 millions is further modified on 13.10.1999 by memorandum of entry evidencing equitable mortgage created by deposit of title deeds or land as an additional security. 29, Milestone, Kuruli, Pune or B-5, Chaskan MIDC Mahalung Khed, Pune , Maharashtra containing by admeasuring 12831 sq. mt. Or there about bounded as follows that is to say.

On or towards the North by – MIDC Boundary

On or towards the South by – MIDC Road

On or towards the East by – MIDC Land

On or towards the West by – MIDC Land

Together with all building and structures now standing thereon or to be erected hereafter and the plant and machinery attached to the earth or permanently fastened to anything attached to the earth both present and future.

Other terms and conditions remain the same.

Which was further modified by first supplemental composite instrument of hypothecation of goods, book debns, movable machinery and vehicles dated 04.04.2000 supplemental memorandum of entry dated 04.04.2000

Facility	Present limit	Revised Limit
Term,	200	200
Cash credit stock and book dents	40	90
Sub limit bils discounting	--	(20)
Letter of credit (DA DP 90 days ) for raw materials	2.00	30
Letter of credit for capital goods	--	0.2
In land bank guarantee	2.00	2.0

Which was further modified by second supplemental composite instruments hypothecation of goods book denbts movable machinery and vehicles dated 24.12.2003 revised the limits as under :

Facility	Present limit	Revised Limit
Term,	200	78
Cash credit stock and book dents	90	250
Sub limit bils discounting	(20)	200
Letter of credit (DA DP 90 days ) for raw materials	--	500
Letter of credit for capital goods	50	170
In land bank guarantee	2.00	200

Other terms and conditions remain same.

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 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.46.20
UK Pound	1	Rs.84.57
Euro	1	Rs.58.12

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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		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