MIRA INFORM REPORT

Report Date :

27.12.2007

IDENTIFICATION DETAILS

Name :	BLUE STAR ELEVATORS [INDIA] LIMITED
Registered Office :	A – 108, Pratik Industrial Estate, Mulund – Goregaon Link Road, Bhandup [West], Mumbai – 400078, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	10.10.1995
Com. Reg. No.:	11-93478
CIN No.: [Company Identification No.]	L29150MH1995PLC093478
TAN No.: [Tax Deduction & Collection Account No.]	MUMB08817E
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturer and Exporter of all types of elevators, lifts, hoists, cranes, chains and conveyers.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
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 2000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track records. Business is steady. Trade relations are fair. Payments are reported as slow but correct. The company can be considered for moderate business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	A – 108, Pratik Industrial Estate, Mulund – Goregaon Link Road, Bhandup [West], Mumbai – 400078, Maharashtra, India
Tel. No.:	91-22-25925891
Factory :	No -1, Nalini, 90 Feet Road, Mulund [East], Mumbai – 400081, Maharashtra, India
Tel. No.:	91-22-25656016 / 17 / 18
Fax No.:	91-22-25692462
E-Mail :	bseil2001@yahoo.com

DIRECTORS

Name :	Mr. Lawrence Jacob D. Souza
Designation :	Director
Address :	Nilam Nagar, Phase – II, Building No. 9 – D, Flat No. 702, Gavanpada Road, Mulund [East], Maharashtra, India
Date of Birth/Age :	01.09.1949
Date of Appointment :	10.10.1995
Name :	Ms. Juliet Lawrence D. Souza
Designation :	Director
Address :	Nilam Nagar, Phase – II, Building No. 9 – D, Flat No. 702, Gavanpada Road, Mulund [East], Maharashtra, India
Date of Birth/Age :	16.05.1964
Date of Appointment :	20.01.2000
Name :	Mr. Rohan Lawrence D Souza
Designation :	Director
Address :	Nilam Nagar, Phase – II, Building No. 9 – D, Flat No. 702, Gavanpada Road, Mulund [East], Maharashtra, India
Date of Birth/Age :	07.09.1986
Date of Appointment :	18.08.2005
Name :	Mr. John D Souza
Designation :	Director
Address :	C – 3, Om Adishakit, Gavanpada, Mulund [East],Mumbai – 400081, Maharashtra, India
Date of Birth/Age :	20.10.1956
Date of Appointment :	10.10.1995

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Lawrence Jacob D. Souza	12510
Juliet Lawrence D. Souza	37480
John D Souza	10
Elias D Souza	01
Leo D Souza	01
Richard D Souza	01
Francis Periera	01
Alex D Souza	01
K. N. Rajan	01
Wilfred D Souza	01
Total	50007
Equity Share Breakup
Category	Percentage of Holding
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of all types of elevators, lifts, hoists, cranes, chains and conveyers.

GENERAL INFORMATION

No. of Employees :	About 40
Bankers :	Model Co-operative Bank Limited Mulund Branch, Kandoi Apartment, Nahur Road, Mulund [West], Mumbai – 400080 Citi Bank N. A. Citi Tower, Dr. S. s. Rao Road, Parel, Mumbai – 400012, Maharashtra, India Standard Chartered Bank

Banking Relations :	Satisfactory
Auditors :
Name :	R. R. Ranade and Company Chartered Accountants
Address :	Casa Piedade, First Floor, Opposite Charai Shiv Sena Shakha, Charai, Thane – 400601, Maharashtra, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs. 10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50007	Equity Shares	Rs. 10/- each	Rs. 0.500 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
NETWORTH		0.500	0.500	0.500
LOAN FUNDS
1] Secured Loans		2.295	3.146	3.277
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		2.295	3.146	3.277
DEFERRED TAX LIABILITIES		0.030	0.021	0.018
TOTAL		2.825	3.667	3.795
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.635	1.712	1.795
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.013	0.013	0.013
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.988	10.138	5.872
	Sundry Debtors	2.406	3.789	2.934
	Cash & Bank Balances	0.471	0.155	0.030
	Loans & Advances	1.180	1.039	0.898
Total Current Assets		11.045	15.121	9.734
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	12.724	17.506	12.951
	Provisions	3.988	1.507	0.722
Total Current Liabilities		16.712	19.013	13.673
Net Current Assets		[5.667]	[3.892]	[3.939]
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
Profit and Loss Account		6.844	5.834	5.926
TOTAL		2.825	3.667	3.795

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		28.516	17.248	7.089
Other Income		0.000	0.000	0.000
Total Income		28.516	17.248	7.089
Profit/(Loss) Before Tax		[0.890]	0.203	[0.357]
Provision for Taxation		--	--	--
Profit/(Loss) After Tax		[0.890]	0.203	[0.357]
Expenditures :
	Raw Material Consumed	19.801	10.610	4.180
	Salaries, Wages, Bonus, etc.	0.730	1.363	0.000
	Managerial Remuneration	0.402	0.200	0.000
	Payment to Auditors	0.047	0.044	0.000
	Interest	0.381	0.468	0.509
	Insurance Expenses	0.009	0.040	0.000
	Power & Fuel	0.080	0.046	0.000
	Depreciation & Amortization	0.231	0.217	0.235
	Other Expenditure	7.726	4.056	2.522
Total Expenditure		29.407	17.044	7.446

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	[3.12]	1.18	[5.04]
Net Profit Margin (PBT/Sales)	(%)	[3.12]	1.18	[5.04]
Return on Total Assets (PBT/Total Assets}	(%)	[7.02]	1.21	[3.10]
Return on Investment (ROI) (PBT/Networth)		[1.78]	0.41	[0.71]
Debt Equity Ratio (Total Liability/Networth)		38.01	44.32	33.90
Current Ratio (Current Asset/Current Liability)		0.66	0.80	0.71

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Name of the company

BLUE STAR ELEVATORS [INDIA] LIMITED

Presented By

Model Co-operative Bank Limited, Mulund Branch, Kandoi Apartment, Nahur Road, Mulund [West], Mumbai – 400080

1) Date and description of instrument creating the change

Agreement of Deed of Hypothecation of Stock in Trade / Plant and Machinery / Goods dated 06.10.2001

Charge and Hypothecation of Book debts dated 06.10.2001

Equitable Mortgage document of Gala No’s 108, 109 and 112, 1^st Floor, “A” wing, Pratik Industrial Estate, C S No. 685, Mulund Goregaon Link Road, Bhandup [West], Mumbai – 400078

All the documents constitute a single charge.

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

Rs. 2.500 Millions

Facility	Amount [In Millions]
Term Loan	1.000
Cash Credit	1.500
Total	2.500

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

All tangible movable Properties / Assets / Stocks of whatsoever nature of the borrower company [Both present and future] and including all stock of raw materials such as all types of elevators Lifts, Hoists. Cranes, Chain Pulleys and Conveyers and elevators and other allied products, Equipments, Accessories etc and Finished goods including spares parts, stores and furniture and fixture and moveable, machinery etc.

All present and future book debts, outstanding, money receivables, claims, bills which are now due and owing or which may at any time hereinafter during the continuance of this security become due and owing to the borrower.

Company’s immovable assets / proerpties situated at of Gala No. 108/109 and 112, 1^st Floor, “A” wing, Pratik Industrial Estate, C S No. 685, Mulund Goregaon Link Road, Bhandup [West], Mumbai – 400078

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

Term loan is repayable in 84 equated monthly installments of Rs. 0.019 Millions each starting form one month after disbursement interest @ 14.50 % p.a. with quarterly rests or any other rate that would be advised from time to time and cash credit amount is repayable on demand.

Margin : 25 %

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

Model Co-operative Bank Limited, Mulund Branch, Kandoi Apartment, Nahur Road, Mulund [West], Mumbai – 400080

6) Date and brief description of instrument modifying the charge

NA

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.

NA

This form is for	Creation of Charge
Corporate identity number of the company	L29150MH1995PLC093478
Name of the company	BLUE STAR ELEVATORS [INDIA] LIMITED
Address of the registered office or of the principal place of business in India of the company	No -1, Nalini, 90 Feet Road, Mulund [East], Mumbai – 400081, Maharashtra, India
Type of charge	Immovable Property
Particular of charge holder	Citi Bank N. A. Citi Tower, Dr. S. s. Rao Road, Parel, Mumbai – 400012, Maharashtra, India viaxman@vsnl.com
Nature of description of the instrument creating or modifying the charge	Loan agreement
Date of instrument Creating the charge	01.05.2007
Amount secured by the charge	Rs. 2.520 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : 10.75 % p.a. at monthly rests Terms of repayment : Repayable in 120 MMRs of Rs. 0.034 Millions each, commencing from 01.03.2007 and ending on 01.02.2007 Margin : As may be stipulated by the Bank from time to time Extent and operation of the charge : Term Loan to be secured against the property described under Item No. 14 together with interest, fees, costs, charges and expenses etc.
Short particulars of the property charged	Property being Gala No’s 108, 109 and 112, 1^st Floor, “A” wing, Pratik Industrial Estate, C S No. 685, Mulund Goregaon Link Road, Bhandup [West], Mumbai – 400078

Fixed Assets

• Fax Machine
• Typewriter
• Furniture, Fixture and Office Equipments
• Motor car
• Computer
• Office Cycle
• Office Premises
• Mobile

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.39.39
UK Pound	1	Rs.78.02
Euro	1	Rs.56.77

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		29

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.	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