MIRA INFORM REPORT

Report Date :

18.08.2007

IDENTIFICATION DETAILS

Name :	NEOLITE INDUSTRIES PRIVATE LIMITED
Registered Office :	137, Noida special Economic Zone, Phase II, Noida 201 305, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	20.10.1992
Com. Reg. No.:	50702
CIN No.: [Company Identification No.]	U74899DL1992PTC050702
TAN No.: [Tax Deduction & Collection Account No.]	DELN05185F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of automotive lighting products.

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
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 210000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject appears to be an established company having satisfactory track. Nothing adverse reported. Trade relations are fair. Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	137, Noida special Economic Zone, Phase II, Noida 201 305, Uttar Pradesh, India
Tel. No.:	91-120-3078281
Fax No.:	91-120-3078299
E-Mail :	career@neoliteppi.com export@neoliteppi.com
Website :	http://www.neoliteppi.com
Area :	250 sq. meters
Location :	Owned
Factory/Plant :	Plot No. 137, SEZ Phase – II, Noida, Uttar Pradesh, India

DIRECTORS

Name :	Mr. Sunder Devi Jain
Designation :	Director
Address :	D-4, Rajouri Garden, New Delhi 110027, Delhi, India
Date of Birth/Age :	06.08.1934
Date of Appointment :	15.09.1997
Name :	Ms. Vaishali Jain
Designation :	Director
Address :	D-4, Rajouri Garden, New Delhi 110027, Delhi, India
Date of Birth/Age :	05.08.1972
Date of Appointment :	30.03.1993
Name :	Mr. Pramod Jain
Designation :	Director
Address :	D-4, Rajouri Garden, New Delhi 110 027, India
Date of Birth/Age :	26.10.1971
Date of Appointment :	20.10.1992

KEY EXECUTIVES

Name :	PKS Associates
Designation :	Company Secretary
Address :	B-14, Lajpat Nagar – III, New Delhi – 110 024, India

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Rajesh Jain	170000
Mrs. Sunder Devi Jain	10
Mrs. Vaishali Jain	21000
Mr. Pramod Chand Jain & Sons	20000
Equity Share Breakup	Percentage of Holding
Director or relatives of Directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of automotive lighting products.
Products :	Universal Head Lamps Auxiliary Lamps Fog Lamps Driving Lamps Spot Lamps Agricultural Lamps Work Lamps Trapezoid Lamps Rubber Housing Lamps Emergency Lamps Beacons Multipurpose Lamps Roof Lamps Reading Lamps Brake Lights Decorative Lamps Lamps (Vehicle wise range is as follows) Bedford Benz BMW Citroen Daewoo Fiat Ford General Motors Hindustan Motors Hyundai Isuzu Korean Cars ITL Land Rover Mahindra and Mahindra Mazda Mitsubishi Nissan Open PAL Peugeot Renault Russian Cars Seat Suzuki Maruti Tata Toyota Volswagen
Countries :	Europe North and South America Middle East Africa South East Asia OEM’s
Imports :
Countries :	Korea, Taiwan and China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	Wholesalers Retailers OEM’s Some of its major customer includes: Mahindra and Mahindra BEML TAFE Eicher Motors TATA JCB Piaggio John Deere Enfield ITL Bajaj Tempo MICO Bosch Group Swaraj
No. of Employees :	1050
Bankers :	The Karnataka Bank Limited Connaught Place, New Delhi

Banking Relations :	Satisfactory
Auditors :
Name :	V. Sachdeva & Associates Chartered Accountant
Address :	302, Vikram Tower, 16 Rajindra Place, New Delhi 110 008
Associates/Subsidiaries :	Promod Plastic Industries Private Limited Neolith Industries

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs. 100/- each	Rs. 30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
211010	Equity Shares	Rs. 100/- each	Rs. 21.101 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		21.101	21.101	17.901
2] Share Application Money		0.000	0.000	3.200
3] Reserves & Surplus		32.527	9.507	0.000
4] (Accumulated Losses)		0.000	0.000	(1.220)
NETWORTH		53.628	30.608	19.881
LOAN FUNDS
1] Secured Loans		57.965	42.375	42.579
2] Unsecured Loans		0.023	4.823	0.023
TOTAL BORROWING		57.988	47.198	42.602
DEFERRED TAX LIABILITIES		3.770	2.501	0.936
TOTAL		115.386	80.307	63.419
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		75.095	57.489	48.151
Capital work-in-progress		2.780	0.745	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.733	22.678	16.126
	Sundry Debtors	42.984	23.393	8.568
	Cash & Bank Balances	3.835	2.684	0.269
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	9.571	11.993	3.554
Total Current Assets		85.123	60.748	28.517
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	47.388	39.665	14.581
	Provisions	0.890	0.009	0.000
Total Current Liabilities		48.278	39.674	14.581
Net Current Assets		36.845	21.074	13.936
MISCELLANEOUS EXPENSES		0.666	0.999	1.332
TOTAL		115.386	80.307	63.419

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		297.770	223.150	119.506
Other Income
Total Income		297.770	223.150
Profit/(Loss) Before Tax		26.475	12.476	(0.318)
Provision for Taxation		3.455	--	(0.936)
Profit/(Loss) After Tax		23.020	12.476	(1.254)
Earnings in Foreign Currency :
Total Earnings		176.147	170.198
Imports :
Total Imports		40.383	14.295
Expenditures :
	Interest	3.492	1.872
	Depreciation & Amortization	3.293	1.872
	Other Expenditure	265.516	203.794
Total Expenditure		272.301	207.538	119.824

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	7.73	5.59	1.049
Net Profit Margin (PBT/Sales)	(%)	0.08	5.59	0.309
Return on Total Assets (PBT/Total Assets}	(%)	16.52	10.55	0.414
Return on Investment (ROI) (PBT/Networth)		0.49	0.40	0.015
Debt Equity Ratio (Total Liability/Networth)		0.90	1.29	0.73
Current Ratio (Current Asset/Current Liability)		1.76	1.53	1.92

LOCAL AGENCY FURTHER INFORMATION

Subject imports raw materials and exports automotive lighting products.

The company is in trade terms with :

Ø Tata Motor Limited, Pune

Ø Bajaj Auto

Ø Mahindra And Mahindra Limited

Ø Echer Motor Limited, New Delhi

Sales turnover of March 2005: Rs. 300.000 millions

Group turnover : Rs. 650.000 millions

Bankers Charges Report as per Registry

This form is for	Creation of Charge
Corporate identity number of the company	U74899DL1992PTC050702
Name of the company	NEOLITE INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	137, Noida special Economic Zone, Phase II, Noida 201 305, Uttar Pradesh, India
Type of charge	Immovable Property Book Debts Movable Property Floating Charge
Particular of charge holder	Karnataka Bank Limited K-Block Chaudhary Building, Overseas Branch Connaught Place, New Delhi 110 001
Nature of description of the instrument creating or modifying the charge	Memorandum of Deposit of title deed/hypothecation agreement
Date of instrument Creating the charge	28.06.2007
Amount secured by the charge	Rs. 8.415 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	As per sanction letter The Foreign currency Term loan of Rs. 84,15,000/- is further secured by Equitable mortgage of property situated at Plot No. 137 in Noida SEZ Noida (u.P.0
Short particulars of the property charged	The Foreign Currency Term Loan of Rs. 8.415 Millions is further secured by Equitable Mortgage of property situated at Plot No. 137 Noida (U.P.) besides all stocks and book-debts of the Company both present and future.

Name of the company	NEOLITE INDUSTRIES PRIVATE LIMITED
Presented By
1) Date and description of instrument creating the change	Term Loan Agreement dated 28.09.2005.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 13.500 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 Book-debts/receivables. Hypothecation of plant and machineries to be purchase at a cost of Rs. 9.900 and other fix assets with written down value of Rs. 15.905 Millions
4) Gist of the terms and conditions and extent and operation of the charge.	To grant term loan facility of Rs. 13.500 Millions
5) Name and Address and description of the person entitled to the charge.	Karnataka Bank Limited K-Block, Overseas Branch, Choudhary Building, Connaught Place, New Delhi 110 001.
6) Date and brief description of instrument modifying the charge	Not applicable
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.	Not applicable

AS PER WEBSITE

Their Customers :

Reaching the customers:

To be able to deliver the best, Subject is constantly interacting with its customers spread all over the globe. The close relationship that we maintain with our customers has helped us to understand their specific requirements and serve them in the best possible way.

In the past few years 'Subject has had number of new customers opting to develop new items with us with participation in the moulds and tooling.

Subject’s products are being exported to more than 85 countries across the globe.

Neolite & PPI" products are being used as original equipment by more than 20 prestigious Vehicle Manufacturers.

About Neolite

The Neolite GROUP has been associated for over 50 years in the manufacturing of Automobile Lighting. The largest products range in South East Asia, which comprises of more than 1500 items... Subject has continued its efforts in interacting with its customers spread all over the Globe....

Why Choose Neolite

Subject is has all the latest infrastructure & technology under one roof from designing software, light simulation software , high end...

The company is exporting to more than 85 countries worldwide. 'Subject is' is a ISO-9000 & TS-16949 certified company and is OEM supplier to more than...

North & South America

Exporting to all the countries in the region including USA & CANADA. Many products SAE / DOT approved and more than 200 products 'E' Homologated.

Manufacturing diverse range of products. Which includes Multi-reflector Prismatic lamps, LED lamps etc., supplying to major customers in each country.

Manufacturing

Subject is has the infrastructure, manpower, production equipment & manufacturing techniques to produce high quality products. Besides the above, Subject is has strong desire to be recognized as the best, by producing the best.

Computer Aided design, Engineering process and manufacturing quality controls assure quality products at cost effective prices.

To ably comply with the needs of our customers and to meet their requirements regularly, we lay special emphasis on certain key points for complete customer’s satisfaction - That is, disciplined approach in honoring commitments, meeting the required quality and packing standards, effective communications and proper translation / application of customer’s instructions into specific product. Last, but not the least, timely delivery

THEIR CAPABILITIES INCLUDE:

• Sheet metal press m/cs

• Painting equipment and conveyor

• Injection moulding m/cs

• Hard coating m/cs

• Vacuum metallizing m/cs

• EDM m/cs

• CNC milling m/cs

• Semi conveyorized assy. Lines

• Automatic lacquer conveyors

• Unigraphics / Catia for 3Dmodeling and 'CNC' programming

• CAD-CAM system processor

• Light Simulation Software to generate reports as per ECE and SAE approval. Fully computerized Goniometer.

• Ultra sonic welding m/cs

Milestone

1952

Parent Unit, Pramod Plastic Industries was founded as the first plant manufacturing plastic parts and lights for automobiles in India.

1993

Participation in premier international fairs i.e. Auto-Mechanica Frankfurt, Sema- Las Vegas Equip Auto-Parts etc. Further increase in market share of PPI & NEOLITE products.

1958

Addition of unit for manufacturing Head Light Glasses.

1994

Many products passed European homologation test & are 'E' certified. SAE/DOT certification also achieved from some products

1964

1st O.E. Supplies made to premier manufactures of automobiles in India.

1995

Overseas market of PPI & NEOLITE products grow to include more than 50 countries across the globe covering all continents.

1968

Major expansion drive to increase production facility by 4 times.

1996

ISO 9002” certification achieved by NEOLITE Industries.

1970

Production of Head Lamp Assembly started.

1997

Expansion by adding one more manufacturing unit, to cope up demand with rising export & O.E. demands.

1972

1st exports made to South East Asia.

1998

PPI & NEOLITE Launches widest range of after market lighting equipments in South / South East Asia.

1973

Within a year, 15 countries added to the export list.

1999

NEOLITE Industries achieved QS-9000” certification many O.E.M. companies added to the customers list.

1975

Formation into a Limited Company.

2000

Group Exports crosses 75 countries.

1982

Another New unit dedicated exclusively to exports, commences production.

2001

Keeping pace with the rapidly changing in lighting designs Subject is adapts itself with Hard –Coating BMC-Moulding, Multi-Reflector designing facilities & are able to offer the latest “New Generation Lights” with H.I.D.S., L.E.D’s & Projector Lamps technology.

1986

New unit acquired near Bombay by the Group.

2002

Subject is Group of Industries celebrated “Golden Jubilee Year” for dedicated service to the ”Automotive Industry” worldwide.

1990

New State-of-the-art plant started to enhance the production capacity.

2003

Diversification in the home lightings. Subject is Industries achieved  TS16949 certification.

1992

Major Exports drive launched USA, UK and other major developed countries added to the export list.

2004

Lab certification by 'TUV' Germany.

Customers

Reaching the customers:

To be able to deliver the best, Subject is constantly interacting with its customers spread all over the globe. The close relationship that we maintain with our customers has helped us to understand their specific requirments and serve them in the best possible way.

In the past few years 'Subject has had number of new customers opting to develop new items with us with participation in the moulds and tooling.

Subject has products are being exported to more than 85 countries across the globe.

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. 41.57
UK Pound	1	Rs. 82.14
Euro	1	Rs. 55.74

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.	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