MIRA INFORM REPORT

Report Date :

31.12.2007

IDENTIFICATION DETAILS

Name :	LIFELONG INDIA LIMITED
Registered Office :	D-1, Soami Nagar-South, New Delhi 110017
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	21.05.1985
Com. Reg. No.:	55-020988
CIN No.: [Company Identification No.]	U32204DL1985PLC020988
TAN No.: [Tax Deduction & Collection Account No.]	DELL02456G
PAN No.: [Permanent Account No.]	AAACL9493K
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Assemblies, Injection Moulded Plastic Components and Injection Moulding Moulds.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 689000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Directors are reported as experienced, respectable and having satisfactory means of their own. Trade relations are fair. Business is active. Payments are usually correct and as per commitments. The Company can be considered good for normal business dealing at usual trade terms and conditions.

LOCATIONS

Registered Office :	D-1, Soami Nagar-South, New Delhi 110017, India
Tel. No.:	91-11-26017063-65
Fax No.:	91-11-26016805
E-Mail :	manasendunayak@lifelongindia.com , info@lifelongindia.com
Website :	www.lifelongindia.com
Area :	10000 Sq. mtrs.
Factory 1 :	76, Dharuhera Industrial Area, Dharuhera, District Rewari, Haryana, India
Tel. No.:	91-1274-242208 / 242461 / 242573 / 242460
Fax No.:	91-1274-242572
E-Mail :	customersupport@lifelongindia.com
Factory 2 :	Plot 23, Sector 5, IMT Manesar, Gurgaon, Haryana, India
Tel. No.:	91-124-4335800
Fax No.:	91-124-2291509
E-Mail :	customersupport@lifelongindia.com

DIRECTORS

Name :	Mr. Atul Raheja
Designation :	Director
Address :	K-6, Sainik Farm, New Delhi 110062, India
Date of Birth/Age :	03.01.1964
Date of Appointment :	15.05.1987
Name :	Mr. Jatender Kumar Mehta
Designation :	Director
Address :	C-762, New Friends Colony, Delhi 110065, India
Date of Birth/Age :	11.04.1949
Date of Appointment :	03.02.1995
Name :	Mr. Suraj Prakash Raheja
Designation :	Director
Address :	K-6, Sainik Farms, New Delhi 110062, India
Date of Birth/Age :	01.05.1929
Date of Appointment :	03.02.1995
Name :	Mr. Ravinder Khanna
Designation :	Director
Address :	A-804, Central Park, Sector 42, Gurgaon 122002, Haryana, India
Date of Birth/Age :	26.02.1959
Date of Appointment :	28.06.2005

KEY EXECUTIVES

Name :	Mr. Manasendu Nayak
Designation :	Secretary
Address :	F-47A, Katwaria Sarai, New Delhi 110016, India
Date of Birth/Age :	03.07.1975
Date of Appointment :	08.04.2002

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Rajesh Raheja	100
Navin Raheja	1000
Atul Raheja	2627220
Mini Raheja	142616
Mohini Vasudev	100
Parvinder Kaur	100
Jatin Raheja	37500
Refam Securities [Private] Limited	896764
Total	3705400
Equity Share Brak-up	Percentage of Holding
Bodies Corporate	24.20
Directors or relatives of the Directors	75.80
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Assemblies, Injection Molded Plastic components and Injection Moulding Moulds.

Products :

Item Code No. (ITC Code)	870899.00
Product Description	Motor Vehicle Parts

Item Code No. (ITC Code)	871419.00
Product Description	Motor Cycle Parts

GENERAL INFORMATION

Customers :

Ø ArvinMeritor

Ø Saf+Way

Ø Maruti & HMSI Thru Pricol

Ø Jiffy-tite

Ø Maruti Suzuki

Ø Hero Honda

Ø Eaton Engineering and Tooling Inc.

No. of Employees :

350

Bankers :

Ø Standard Chartered Bank, Narain Manzil, 23, Barakhamba Road, New Delhi 110001, India

Ø State Bank of Indore

Ø Citi Bank, Jeevan Vihar, Sansad Marg, New Delhi 110001, India

Facilities :

Particulars	As on 31.03.2005 [Rupees in Millions]
SECURED LOANS
From Banks, Financial Institutions and NBFC’s
Term Loans
Standard Chartered Bank	3.351
State Bank of Indore	25.000
External Commercial Borrowings	49.761
Standard Chartered Bank	19.722
Citi Bank [against charge on all fixed assets excluding land and building at Dharuhera]	3.000
Cash Credit
Citi Bank	48.723
Standard Chartered Bank	0.143
State Bank of Indore [limits secured by hypothecation of stocks of Raw material, W.I.P., Finished goods, Book Debts and other current assets]	15.204
Deferred Sales Tax Liability	33.864
UNSECURED LOANS
From Body Corporate	5.000

Banking Relations :	Satisfactory
Auditors :
Name :	Nipun Khurana and Associates Chartered Accountants
Address :	B – 192, Gujranwala Town – 1, Delhi 110009, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value		Amount
3705400	Equity Shares	Rs. 10/- each	Rs. 37.054 Millions

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		37.054	37.054	37.054
2] Share Application Money		12.500	0.000	0.000
3] Reserves & Surplus		122.858	90.063	62.996
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		172.412	127.117	100.050
LOAN FUNDS
1] Secured Loans		187.149	232.601	198.769
2] Unsecured Loans		31.731	10.000	5.000
TOTAL BORROWING		218.880	242.601	203.769
DEFERRED TAX LIABILITIES		35.776	29.870	25.474
TOTAL		427.067	399.588	329.293
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		342.670	308.265	247.575
Capital work-in-progress		25.226	8.081	0.000
INVESTMENT		21.035	23.431	10.431
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	58.100	42.485	22.456
	Sundry Debtors	230.841	150.591	201.076
	Cash & Bank Balances	21.313	28.466	35.987
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	70.486	68.656	24.320
Total Current Assets		380.740	290.198	283.839
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	323.442	199.594	212.552
	Provisions	19.162	30.793
Total Current Liabilities		342.604	230.387	212.552
Net Current Assets		38.136	59.811	71.287
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		427.067	399.588	329.293

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		2018.122	1640.816	1347.788
Other Income		20.803	16.772	5.714
Total Income		2038.925	1657.588	1353.503
Profit/(Loss) Before Tax		72.489	64.665	56.785
Provision for Taxation		--	--	21.524
Profit/(Loss) After Tax		72.489	64.665	35.261
Earnings in Foreign Currency :		135.853	25.922	---
Expenditures :
	Raw Material Consumed	1652.327	1366.456	1152.088
	Manufacturing Expenses	0.000	0.000	60.272
	Financial Expenses	0.000	0.000	7.212
	Selling Expenses	0.000	0.000	18.379
	Administrative Expenses	0.000	0.000	42.917
	Loss on sale of Assets	0.000	0.000	1.368
	Salaries, Wages, Bonus, etc.	43.640	28.561	0.000
	Managerial Remuneration	12.838	11.939	0.000
	Payment to Auditors	0.981	0.605	0.000
	Interest	33.034	11.956	0.000
	Insurance Expenses	3.152	1.988	0.000
	Power & Fuel	28.000	25.060	0.000
	Depreciation & Amortization	26.687	20.183	14.482
	Other Expenditure	165.777	126.175	0.000
Total Expenditure		1966.436	1592.923	1296.718

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	3.55	3.90	2.60
Net Profit Margin (PBT/Sales)	(%)	3.59	3.94	4.21
Return on Total Assets (PBT/Total Assets}	(%)	10.02	10.80	10.68
Return on Investment (ROI) (PBT/Networth)		0.42	0.50	0.56
Debt Equity Ratio (Total Liability/Networth)		3.25	3.72	4.16
Current Ratio (Current Asset/Current Liability)		1.11	1.25	1.33

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets:

Ø Land

Ø Building WIP

Ø Plant and Machinery

Ø Air Conditioner

Ø Office Equipment

Ø Electrical Equipment

Ø Computer

Ø Generator

Ø Furniture and fixtures

Ø Vehicles

Ø Tempo

Ø Cycle

Ø Testing Equipments

Ø Moulds

CONTINGENT LIABILITIES

Outstanding Guarantees as at 31.03.2005 furnished by Bankers Rs. 5.097 Millions [as at 31.03.2004 Rs. 6.144 Millions] Fixed Deposits as at 31.03.2005 of Rs. 1.188 Millions [previous year Rs. 1.228 Millions] made by the company with Company Bankers, Delhi.

Based on certificate received from the management, the Company has given corporate guarantee to the extent of Rs. 53.370 Millions on behalf of other body corporate.

Sales Tax and excise duty matters involving a liability of Rs. 0.577 Millions are pending in Appeal before Honorable Supreme Court of India.

Form 8

Bankers Charges Report as per Registry

Name of the company	LIFELONG APPLIANCE LIMITED
Presented By	Shri. Manasendu Nayak
1) Date and description of instrument creating the change	Goods Security Agreement dated 14.03.2002 and registered on 21.03.2002.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 47.000 Millions Fund based Rs. 37.000 Millions Non Fund based Rs. 10.000 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	First pari passu charge on all present and future stocks and Book debts, the charge being on pari passu basis with State Bank of Bikaner and Jaipur.
4) Gist of the terms and conditions and extent and operation of the charge.	Ø Repayable on Demand Ø Cash credit/Overdraft and Working Capital Demand Loan at 14.0% Ø Other interest rates as per RBI mandated rates specified from time to time.
5) Name and Address and description of the person entitled to the charge.	Citi Bank Jeevan Vihar, 3, Sansad Marg, New Delhi 110001, India
6) Date and brief description of instrument modifying the charge	Date of Modification 21.03.2003
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.	Additional Term Loan facilities of Rs. 15.000 Millions Limits of State Bank of Bikaner and Jaipur cancelled. Citibank shall have first exclusive charge on the Present and future stocks and a first pari passu charge with Standard Chartered Bank, on the present and future Book Debts of the Company. Rate of Interest on CC limits 11.75% p.a. Other terms and conditions remain same.

This Form is for	Modification of Charge
Charge identification number of the charge to be modified	90055680
Corporate identity number of the company	U32204DL1985PLC020988
Name of the company	LIFELONG INDIA LIMITED
Address of the registered office or of the principal place of business in India of the company	D-1, Soami Nagar, New Delhi 110017, India
Type of charge	Immovable property
Particular of charge holder	Standard Chartered Bank [being security agent acting on behalf of and for Standard Chartered Bank, London] Narain Manzil, 23, Barakhamba Road, New Delhi 110001, India
Nature of description of the instrument creating or modifying the charge	No instrument was executed memorandum of entry from State bank of Indore evidencing Joint mortgage by re-deposit of title deeds on the immovable properties situated at Manesar of the Company dated 21.03.2007 Clarification letter dated 10.04.2007
Date of instrument Creating the charge	10.04.2007
Amount secured by the charge	Rs. 51.300 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	[a] Rate of Interest Pricing : 6 months USD LIBOR + 200 BPS P.A. commencing from the date of first draw down interest would be payale every 6 months. Pricing above excludes the cost of hedge. [b] Terms of Repayment Repayable in three equal annual installments. First installment being due at the end of 2^nd year from the date of first drawdown, the second installment at the end of 3^rd year from the date of first drawdown and final installment at the end of the 4^th year from the date of first drawdown. [c] Margin As per Agreement [d] Extent and operation of the charge Pari Passu Charge [e] Others The above is to secure ECB loan of US Dollar 1.14 MIO = 51.300 Millions [US Dollar = Rs. 45 each]
Short particulars of the property charged	Hypothecation by way of 1^st P/P charge over the whole of the fixed assets of the BO. Situated at 76, Industrial area, Dharuhera [Haryana] and Plot No. 23, Sector 5, Manesar [Haryana] including its movable P/mach, machinery spares, tools and Accessories and other mov. Both P/F [Except Fixed assets exclusively charged to Citi Bank N.A.] whether installed or not.
Date of latest modification prior to the present modification	NA
Particulars of the present modification	ECB of Rs. 51.300 Millions [USD 1.14 Millions] shall collaterally be secured by pari passu charge by joint mortgage by re deposit of title deeds with State Bank of Indore on 21.03.2007 in respect of Company’s immovable property at Choudhary Devilal IMT, Manesar, Gurgaon, Haryana. All other terms and conditions remaining the same.

AS PER WEBSITE DETAILS :

They introduce their self as one of the leading System Supplier and Manufacturer of Assemblies, Injection Molded Plastic components and Injection Moulding Moulds.

They are QS 9000 Auto Component Company equipped with latest technology catering high quality standards.

Their growth rate is drastic, they started their commercial Production from the year 1996 having a turnover of 10 million USD and now they are a group having an annual turnover of 200 million USD. Their projected turnover for the coming next three years is approximately 400 million USD.

With the aim of achieving leading positions in all the areas in which it is active and by focusing in polymers based components and systems, Lifelong India Ltd. will continue to take an active part in the ongoing consolidation of the World’s automotive suppliers.

DIRECTORS MESSAGE:

They remain committed to achieve their Vision through Teamwork, Latest Technology, Sincere and Empowered Manpower, Wide Customer Base and an Emphasis on Transparency and Optimisation of Resources.

Dynamic, Customer and Cost Driven, People Oriented, Diversified Organisation with Global interests and High Ethical Standards.

Their Vision

Dynamic, Customer and Cost Driven, People Oriented, Diversified Organisation with Global interests and High Ethical Standards.

Their Mission

They remain committed to achieve their Vision through Teamwork, Latest Technology, Sincere and Empowered Manpower, Wide Customer Base and an Emphasis on Transparency and Optimisation of Resources.

THEIR TEAM

Their Executive Team of trained professionals represents the finest in business development and market planning. Individually, each consultant brings a focus and industry expertise to bear that qualifies him or her as a leading market authority. Together, they form a team whose single driving goal is to provide clients with reliable market data and fresh, thought-provoking insights.

Their Range of Quality Products

• Plastic Injection Molding parts and assemblies
• Aluminum pressure die casting parts and assemblies
• Multiple Commodity parts and assemblies
• Plastic Injection Moulds

Facilities

In pursuance of ‘ TOTAL SOLUTION PROVIDER ’ they are equipped with following facilities under one roof: -

• State -of –Art Injection moulding shop
• Mould Doctor
• Dust Proof fully automated assembly Lines
• Fully Equipped Tool Room
• DNC Machines
• EDM Machines
• Designing Center
• Press Shop
• PU based dust proof spray paint shop and also housing pad printing
• Ultra-sonic welding m/c
• Welding Shop
• Material Testing Laboratory

Their molding capabilities include short to high tonnage injection molding and insert molding. All mold design, mold building and injection molding is done in-house. They have the Molding machines ranging from 50-450 tons. Their engineering department works closely with their customers to establish the most cost effective way to bring their project to completion.

They'll help you from the conceptual stage of the design process as well as in material selection. In-house flow analysis, finite element analysis, modern CNC equipment, rapid prototyping and CAD/CAM computer systems ensure that the parts will work right the first time without requiring time consuming reworks. Lifelong India Ltd builds precision single-cavity and multi-cavity injection molds. Whether you need Hundreds, Thousands or Millions... they have the tools and techniques to bring the part/product to market.

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. 39.44
UK Pound	1	Rs. 78.73
Euro	1	Rs. 57.69

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		66

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