MIRA INFORM REPORT

Report Date :

01.11.2006

IDENTIFICATION DETAILS

Name :	INNOVA TECHNO PRODUCTS PRIVATE LIMITED
Registered Office :	B-9, Badarpur Extbadarpur Border, New Delhi – 110 044, India.
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	23.03.2005
Com. Reg. No.:	55-134373
CIN No.: [Company Identification No.]	U74999DL2005PTC134373
TAN No.: [Tax Deduction & Collection Account No.]	DELI05404A
Legal Form :	Private Limited Liability Company
Line of Business :	To manufacture and produce, voltage regulators, inverters, heaters, battery chargers, battery eliminators, voltage testing sets, voltage stabilizers, conductors, enarnel wires, cotton/paper covered conductors, fittings, switches and distribution boards, and other articles, instruments and things required for or capable of being used for of in connection with wires for wireless signalling, lighting, heating, motive power, cables, lines, power stations, exchanges, accumulators, dynamos, switching, conrolling, and signalling apparatus. To carry on the business of manufacturing, repairing and machining jobs of pumps, white metal bearings, all types of spares for turbines, boilers, thermal-power stations, hydropower stations, cement plants, steel plants, copper plants and allied plants and manufacturing of ferrous and non ferrous metals, iron and steel foundries, in all or any of their respective branches.

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 5000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Although, subject is new company, it has produced satisfactory results. Trade relations are fair. Nothing adverse reported. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	B-9, Badarpur Extbadarpur Border, New Delhi – 110 044, India.
Factory :	Plot No. 21, Sector – 4, Ballabhgarh, Faridabad – 121 004, Haryana, India.
Tel. No.:	91-129-2243660
Fax No.:	91-129-4040438

DIRECTORS

Name :	Mrs. Renu Mukherjee
Designation :	Director
Address :	406/14 Sector, Faridabad – 121 004, Haryana, India.
Name :	Mr. Atanu Mukherjee
Designation :	Director
Address :	406/14 Sector, Faridabad – 121 004, Haryana, India.

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mrs. Renu Mukherjee	5000
Mr. Atanu Mukherjee	5000
Total:	10000

BUSINESS DETAILS

Line of Business :

To manufacture and produce, voltage regulators, inverters, heaters, battery chargers, battery eliminators, voltage testing sets, voltage stabilizers, conductors, enarnel wires, cotton/paper covered conductors, fittings, switches and distribution boards, and other articles, instruments and things required for or capable of being used for of in connection with wires for wireless signalling, lighting, heating, motive power, cables, lines, power stations, exchanges, accumulators, dynamos, switching, conrolling, and signalling apparatus. To carry on the business of manufacturing, repairing and machining jobs of pumps, white metal bearings, all types of spares for turbines, boilers, thermal-power stations, hydropower stations, cement plants, steel plants, copper plants and allied plants and manufacturing of ferrous and non ferrous metals, iron and steel foundries, in all or any of their respective branches.

Products :

Steel Components, High Tensile Special Links and Shackles for Link Chain Application, Bar Connectors, Sprocket Teeth, Spray Nozzles, Roller Conveyor Chains, Heating Elements & Radiant Tubes, High Temperature Air Circulating Fan, High Temperature Conveyor Chains for Sealed Quench Furnace, Heat Treatment Fixtures and High Temeprature Nut Bolts.

GENERAL INFORMATION

Customers :	Ø Faridabad Thermal Power Station Ø Sona Okegawa Precision Forgings Limited Ø Bajaj Auto Limited, Aurangabad Ø Badarpur Thermal Power Station (NTPC Delhi) Ø Hero Honda Motors Limited Ø Indian Defence Establishment Ø Bharat Gears Limited Ø Eicher Motors Limited Ø Raunaq Automotive Components Limited Ø Musashi Auto Components Private Limited
No. of Employees :	45
Bankers :	Not Divulged
Facilities :	--

Banking Relations :	--
Auditors :	Dinesh Mohan & Company Chartered Accountant (Mr. Dinesh Kumar Agarwal)
Address:	H. No. 2, TCC Colony, Sector-10, Faridabad – 121 006, Haryana, India.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
99200	Equity Shares	Rs. 10/- each	Rs. 0.992 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
99200	Equity Shares	Rs. 10/- each	Rs. 0.992 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		0.992
2] Share Application Money		0.000
3] Reserves & Surplus		0.337
4] (Accumulated Losses)		0.000
NETWORTH		1.329
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		1.643
TOTAL BORROWING		1.643
DEFERRED TAX LIABILITIES		0.000
TOTAL		2.972
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.574
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.375
	Sundry Debtors	3.756
	Cash & Bank Balances	0.237
	Other Current Assets	0.000
	Loans & Advances	1.020
Total Current Assets		6.388
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	3.834
	Provisions	0.178
Total Current Liabilities		4.012
Net Current Assets		2.376
MISCELLANEOUS EXPENSES		0.022
TOTAL		2.972

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006
Sales Turnover [including other income]	18.946
Profit/(Loss) Before Tax	0.547
Provision for Taxation	0.000
Profit/(Loss) After Tax	0.547
Total Expenditure	18.398

KEY RATIOS

PARTICULARS		31.03.2006
PAT / Total Income	(%)	2.89
Net Profit Margin (PBT/Sales)	(%)	2.89
Return on Total Assets (PBT/Total Assets}	(%)	7.83
Return on Investment (ROI) (PBT/Networth)		0.41
Debt Equity Ratio (Total Liability/Networth)		4.25
Current Ratio (Current Asset/Current Liability)		1.59

LOCAL AGENCY FURTHER INFORMATION

They are a quality conscious manufacturer and exporter engaged in the making of engineering goods titled as Innova Techno Products (P) Ltd. Their yearn for specialization and total commitment to quality has helped us in establishing the company in domestic as well as overseas markets. Professional engineering expertise combined with competitive and skilled workforce enables us to capture the high quality conscious international markets. They feel proud for offering cost effective solutions to the exacting needs of their customers.

The gamut of products manufactured in their premises includes:

Steel Components

In the specification of EN8/9, 19, 24, 36, SAE 8620, AISI 410, 420, 304, 316, 321, 310, 314, Incoloy 800, Inconel 600 involving operations like forging, machining, heat treatment and grinding such as :

Ø High tensile special links and shackles for link chain application

Ø Bar Connectors for scrapper conveyor application

Ø Sprockets for scrapper conveyor application

Ø Spray Nozzles for ash conditioning

Ø High tensile foundation bolts

Roller Conveyor Chains

For various applications and pitch ranging between1/2” & 24”.

High Temperature Products – Like:

Ø Heaters, Heating Elements, Radiant Tube, etc.

Ø High Resistant Air Circulating Fans

Ø High Resistant Conveyor Chains for Sealed Quench Furnace

Ø Heat Resistant Fixtures

Ø High Resistant Nut Bolts

Ø Recuperator type burners for sealed quench furnaces

Fabrication

Ø Fabrication in MS & SS for dairy equipments

Ø Chemical plants and thermal powerhouses, air heater etc.

Quality Policy

Their in-house manufacturing facilities and innovative concepts are the best techniques to keep a check over the quality standards of products. Their range of steel components, high tensile special links and shackles for link chain application, bar connectors, sprocket teeth, spray nozzles, roller conveyor chains, heating elements & radiant tubes, high temperature air circulating fans, high temperature conveyor chains for sealed quench furnace, heat treatment fixtures and high temperature nut bolts - itself provides us a competitive edge over their competitors. Strict quality checks are carried out at different stages of manufacturing and only approved product finds its way into the market.

Their Objectives

Ø Understanding their customer's requirements and help them to achieve their goals by providing the right product quality.

Ø Striving to uphold the values of the organizations, they work with order to build a better tomorrow.

Ø To achieve leadership in the market through excellence in products and services.

Ø To satisfy their customers by continuous quality improvement

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. 44.84
UK Pound	1	Rs. 85.55
Euro	1	Rs. 57.28

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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