MIRA INFORM REPORT

Report Date :

15.06.2007

IDENTIFICATION DETAILS

Name :	SAMCOR GLASS LIMITED
Registered Office :	Village Naya Nohra, Tehsil Ladpura, District Kota, Rajasthan – 324001
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	24.07.1986
Com. Reg. No.:	17-8852
CIN No.	U26101RJ1994PLC008852
TAN No.: (Tax Deduction & Collection Account No.)	JDHS03083D / DELS13583D
PAN No.: [Permanent Account No.]	AAACS2730C
Legal Form :	Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of glass shells, panel, funnel for black and white TV picture tubes and monochrome monitor tubes.

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 4000000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. The company’s profitability is under severe pressure. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Village Naya Nohra, Tehsil Ladpura, District Kota, Rajasthan - 324001, India
Tel. No.:	91-744-2450150 – 153
Fax No.:	91-744-2450156/ 2450154
E-mail :	rsampath@samtelgroup.com shamshersingh@samtelgroup.com skkaura@samtelgroup.com ajaysehgal@samtelgroup.com
Location :	Owned
Corporate Office :	52, Community Centre, New Friends Colony, New Delhi - 110 065, India
Tel. No.:	91-11-26832151 / 26840653 / 26842791 / 26832886
Fax No.:	91-11-26837534 / 26848432
Location :	Owned
Factory :	Village Naya Nohra, Tehsil Ladpura, District Kota, Rajasthan, India
Location :	Owned

DIRECTORS

Name :	Mr. Satish K. Kaura
Designation :	Chairman & Managing Director
Address ;	B – 407, New Friends Colony, New Delhi – 110065, India
Date of Birth :	19.12.1944
Date of Appointment :	15.07.2005
Experience :	7 years
Name :	Mr. V. Narayanan
Designation :	Director
Address :	Flat No. 19, The Manor, 1 Cenotaph, 2^nd Street, Taynampet, Chennai – 600018, Tamilnadu
Date of Birth :	29.01.1938
Date of Appointment :	21.04.1993
Experience :	8 years
Name :	Mr. Subodh Bhargava
Designation :	Director
Address :	Wartsila India Limited, A – 15/1, DLF City, Ph – I, Gurgaon – 122001, Haryana
Date of Birth :	30.03.1942
Date of Appointment :	06.06.2000
Experience :	9 years
Name :	Mr. Arun Bharat Ram
Designation :	Director
Address :	Bhairavi No. 1, Silver Oak Avenue, West Eng, Green Farm Rajokari, New Delhi – 110038
Date of Birth :	15.11.1940
Date of Appointment :	28.04.2001
Experience :	10 years
Name :	Mr. H. S. Mamak
Designation :	Director
Address :	C – 1, Sector 30, Noida – 201303
Date of Birth :	25.08.1933
Date of Appointment :	28.01.1998
Name :	Mr. Willward A. Boyer
Designation :	Director
Address :	Corning Incorporated Video International One Riverfront Plaza, MP – HQ –E1-05, Corning, New York, U.S.A.
Date of Birth :	24.03.1946
Date of Appointment :	17.11.1998
Date of Ceasing :	23.04.2005
Name :	Mr. Clark S. Kintin
Designation :	Director
Address :	Corning Incorporated Video International One Riverfront Plaza, MP – HQ –E2, Corning, New York, U.S.A.
Date of Birth :	27.08.1959
Date of Appointment :	28.04.2001
Date of Ceasing :	23.04.2005
Name :	Mr. Heon Koo Park
Designation :	Director
Address :	Samsung Coming Sdn Bhd, Lot 635 & 660 Kawasan Perindustrian Tuanku Jaafar, 71450 Sungai Gadut Nageri Sembilan Darul Khasus – 71450, Malaysia
Date of Birth :	17.11.1951
Date of Appointment :	16.05.2003
Date of Ceasing :	30.09.2005
Name :	Mr. Don MC Naughton
Designation :	Director
Address :	Corning Incorporated Video International One Riverfront Plaza, MP – HQ –E2, Corning, New York, U.S.A.
Date of Birth :	31.07.1959
Date of Appointment :	16.05.2003
Date of Ceasing :	23.04.2005
Name :	Mr. Shashi Sharma
Designation :	IFCG Nominee Director
Address :	IFCI Tower, Nehru Place, New Delhi – 110019
Date of Birth :	01.08.1960
Date of Appointment :	25.01.2003
Name :	Mr. Navin Bahl
Designation :	Director
Address ;	A – 9/34, Vasant Vihar, New Delhi – 110057, India
Date of Birth :	19.02.1943
Date of Appointment :	24.07.1986
Name :	Mr. Amal Ganguly
Designation :	Director
Address :	J – 6/7, DLF Phase – II, Gurgaon – 122002, Haryana
Date of Birth :	17.10.1939
Date of Appointment :	06.01.2004
Name :	Mr. R. S. Wazir
Designation :	Executive Director
Date of Birth/Age :	57 Years
Qualification :	B. Sc. Chemical
Experience :	34 Years
Date of Appointment :	30/09/1998
Name :	Mr. John A. Raho
Designation :	Alternate Director
Address ;	Corning Incorporated Video International One Riverfront Plaza, MP-HQ-E2, Corning, New York, U.S.A.
Date of Birth :	12.03.1965
Date of Appointment :	21.01.2002
Date of Ceasing :	23.04.2005
Name :	Mr. Allen S. Oldfiled
Designation :	Alternate Director
Address ;	142, Daffodil Drive, Horseheads, New York, U.S.A.
Date of Birth :	08.08.1945
Date of Appointment :	22.09.1998
Date of Ceasing :	23.04.2005
Name :	Mr. Aseem Sharma
Designation :	Alternate Dirctor
Address ;	D – 1/48, Vasant Vihar, New Delhi – 110057
Date of Birth :	24.09.1963
Date of Appointment :	27.04.2004
Date of Ceasing :	23.04.2005
Name :	Mr. Larry Aiello
Designation :	Managing Director

KEY EXECUTIVES

Name :	Mr. Ajay Sehgal
Designation :	Secretary
Address :	J – 11/96, Rajouri Garden Extension, New Delhi – 110027, India
Date of Birth :	18.04.1968
Date of Appointment :	01.12.2006
Voter’s ID No. :	DL/02/015/174349
Name :	Mr. O. P. Gogia
Designation :	Company Secretary
Address :	52/2, Ashok Nagar, New Delhi – 110018
Date of Birth :	15.07.1956
Date of Appointment :	16.07.2001
Date of Ceasing :	23.04.2005
Name :	Mr. Sudheer G. Rangnekar
Designation :	General Manager - Finance
Age :	49 years
Qualification :	FCA
Experience :	27 years
Previous Employment :	J. K. Synthetics Limited - General Manager
Name :	Mr. Rakesh Agarwal
Designation :	Assistant General Manager
Age :	43 years
Qualification :	FCA
Experience :	17 years
Previous Employment :	Shivam Export House - Financial Controller
Name :	Mr. R. Sampath
Designation :	General Manager Finance
Date of Birth/Age :	45 Years
Qualification :	ACA, ICWA
Experience :	20 Years
Date of Appointment :	28/12/2000

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. Satish Kumar Kaura	10
Mr. Krishan Lal Sethi	10
Mr. Romesh Mehra	10
Mr. Narendra Kumar Seghal	10
Mr. Rajeev Gupta	10
Mr. Navin Behl	10
Mr. S. K. Verma	10
Samtel Color Limited	23330000
Samtel India Limited	3200000
Teletube Electronics Limited	8500000
Mr. Sutham Chansrichawla	700000
Mr. Citimark Industries Limited	300000
Lenients Consultants Private Limited	480000
SW Consultants Private Limited	300000
Roxy Investments Private Limited	22620000
Cea Consultants Private Limited	10070000
Tish Consultants Private Limited	300000
The Industrial Finance Corporation of India Limited	2000000
ICICI Trusteeship Services Limited	5000000
J. P. Morgan International Capital Corporation	1000000
Samsung Corning Company Limited	5800000
TOTAL	83600070

BUSINESS DETAILS

Line of Business :

Manufacturing of glass shells, panel, funnel for black and white TV picture tubes and monochrome monitor tubes.

Products :

Item Code No.	Product Description
7008.40	Glass Parts / Glass Shells for picture tubes

Brand Names :

"SAMCOR"

Imports from :

South Korea, Japan and USA

Terms :

Selling :

Cash, Contract, Credit (30 days to 60 days) and Other terms

Purchasing :

Cash, Contract, Credit (30 days to 60 Days), Others and

L/C terms

GENERAL INFORMATION

Suppliers :	Ø Samsung Corning, South Korea Ø Itochu Corporation, Japan Ø Corning Incorporated, USA
Customers :	Its' major customers include manufacturers. Some of its' major customers are as under : Ø Samtel India Limited, India Ø Prakash Industries Limited, India Ø Bharat Electronics Limited, India Ø Tosha Picture Tubes Limited, India Ø Ramavision Limited, India Ø Bestavision Electronics Limited, India Ø Videocon International Limited, India
No. of Employees :	Around 615
Bankers :	Ø Bank of Baroda Jhalawar Road, Kota - 324007, Rajasthan Ø State Bank of India, New Friends Colony, New Delhi Ø Standard Chartered Grindlays Bank Limited, Parliament Street, New Delhi Ø Bank of India, Nehru Place, New Delhi Ø Canara Bank, New Delhi Ø Bank of Baroda, New Delhi Ø State Bank of Bikaner & Jaipur, New Delhi Ø Bank of Baroda, Kota, Rajasthan

Banking Relations :	Satisfactory
Auditors :	Price Waterhouse and Company Chartered Accountants New Delhi A. F. Ferguson Associates Chartered Accountants, 9, Scindia House, K. G. Marg, Connaught Place, New Delhi – 110001, India
Affiliates :	Ø Samtel Colour Limited, India Ø Samtel India Limited, India Ø Teletube Electronics Limited, India Ø Samtel Electron Devices Limited, India
Memberships :	Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000	15% Preference shares	Rs. 100/- each	Rs. 0.100 million
99990000	Equity shares	Rs. 10/- each	Rs. 999.900 millions
	Total		Rs. 1000.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
83600070	Equity shares	Rs. 10/- each	Rs. 836.000 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	836.000	836.000	836.000
2] Reserves & Surplus	281.500	530.428	504.430
3) Share Application Money	0.000	0.000	0.000
4) (Accumulated Losses)	[70.511]	0.000	(17.000)
NETWORTH	1046.989	1366.428	1323.430
LOAN FUNDS
1] Secured Loans	672.110	669.321	895.538
2] Unsecured Loans	0.000	0.000	10.232
TOTAL BORROWING	672.110	669.321	905.770
DEFERRED TAX LIABILITIES	41.756	148.219	144.878
DEFERRED PAYMENT LIABILITIES	15.266	16.905	0.000
TOTAL	1776.121	2200.873	2374.078
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	1584.449	1751.393	1847.213
Capital work-in-progress	37.317	21.068	23.058
Pre Operative Expenses	0.000	0.000	46.105
INVESTMENT	0.002	0.002	0.002
INTANGIBLE ASSESTS	0.000	11.953	0.000
PRE OPERATING EXPENSES PENDING ALLOCATION	0.000	54.106	0.000
CURRENT ASSETS, LOANS & ADVANCES
Inventories	317.724	255.435	226.183
Sundry Debtors	90.003	220.473	326.132
Cash & Bank Balances	32.193	22.000	23.149
Other Current Assets	0.000	10.275	14.820
Loans & Advances	165.100	131.944	108.819
Total Current Assets	605.020	640.127	699.103
Less: CURRENT LIABILITIES & PROVISIONS
Current Liabilities	431.737	262.285	242.828
Provisions	18.930	21.035	14.571
Total Current Liabilities	450.667	283.320	257.399
Net Current Assets	154.353	356.807	441.704
MISCELLANEOUS EXPENSES	0.000	5.544	15.996
TOTAL	1776.121	2200.873	2374.078

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	938.710	1477.646	1384.061
Profit/(Loss) Before Tax	[423.702]	47.219	(63.840)
Provision for Taxation	[104.263	4.221	24.465
Profit/(Loss) After Tax	[319.439]	42.998	(39.375)
Export Value	N.A.	39.908	1.362
Import Value	N.A.	435.790	211.502
Total Expenditures	1362.413	1430.426	1447.902

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	[34.02]	2.90	(2.84)
Net Profit Margin (PBT/Sales)	(%)	[45.13]	3.20	(4.61)
Return on Total Assets (PBT/Total Assets}	(%)	[19.35]	1.91	(2.44)
Return on Investment (ROI) (PBT/Networth)		0.40	0.03	(0.05)
Debt Equity Ratio (Total Liability/Networth)		1.07	0.70	0.88
Current Ratio (Current Asset/Current Liability)		1.34	2.26	2.72

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The company was incorporated on 24^th July, 1986 at Delhi having Company Registration Number 24927. The Registered Office of the company was transferred from Delhi to Rajasthan with effect from 28.09.1994 and a new Company Registration Number 8852 of Rajasthan ROC was obtained.

Safety, Health & Environment:

The company has been recommended for re-certification for the occupational Healthy and Safety Management system (OHMS - 18001) as well as for the Environment Management System (ISO 14001) by TUV – Germany.

The company has now eliminated use asbestos because it is a carcinogenic substance. This initiative has been taken to preserve occupational health of the working people.

These are management programs in place for risk reduction, waste reduction and conservation of resources the Director’s are pleased to place on record the fact that Samcor continues to be a zero water discharged facility Tree plantation and medical programs have been extended to surrounding communities. They plan to continue our efforts to reduce the generation of hazardous waste and ensure its environment friendly disposal.

The company is also engaged in manufacturing of bulletproof glass.

The company's installed capacity of electronic components viz. glass parts/ glass shells for B/W TV picture tubes is 5.5 million nos. per year.

The company is in trade terms with the following :

Ø Akshay Chemicals

Ø Ahluwalia Rubber

Ø Dolson Containers Private Limited

Ø Guljag Industries Limited

Ø Bundi Silica Sand Supply Company

Ø Modern Inorganic Chemicals

Ø Mittal Pigments (Private) Limited

Ø Devkaran Contractor

Ø Agarwal Pigment

The company is a joint venture between Samtel Group of India and Corning Incorporated, USA.

Subject is an ISO 9002 Certified Company.

The company's fixed assets of important value include leasehold land, freehold land, building, plant & machinery, furniture & fixtures, office equipment and vehicles.

Form 8 Particular for creation or modification of charges

Name Of The Company

SAMCOR GLASS LIMITED

Presented By

Jointly by chargeholder & borrower

1) Date and description of instrument creating the change

Joint Deed of Hypothecation dated 21.02.1995 [Registered on 21.04.1995]

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

Rs. 105.750 millions

Modified on	Registered on	Particulars of modification
14.07.95	09.08.95	Add. Security – Joint Mortgage by deposit of title deeds of the company
08.01.97	29.07.97	Add. Security – Joint Mortgage by deposit of title deeds of the company
21.07.00	02.08.00	Overall limit enhanced from Rs. 105.750 millions to Rs. 148.500 millions
17.08.00	24.08.00	Add Security - Joint Mortgage by deposit of title deeds of the company
25.09.03	10.12.03	Overall limit enhanced from Rs. 148.500 millions to Rs. 171.000 millions
26.07.04	15.12.04	Overall limit enhanced from Rs. 171.000 millions to Rs. 204.500 millions
08.03.05	06.06.05	Overall limit enhanced from Rs. 204.500 millions to Rs. 404.500 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

First charge on whole of the current assets of the company namely, stocks of raw materials, stock-in-process, semi-finished and finished goods, stores and spares not relating to plant and machinery [consumable stores and spares], bills receivables and book debts and all other moveables, both present and future whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about of the company’s factories, premises and godowns situated as Village Naya Nohra, Tehsil Ladpura, District Kota [Rajasthan] or wherever else the same may be or be held by any party to the order or disposition of the company or in the course of transit or on high seas or on order, or delivery, howsoever and wheresoever in the possession of the company and either by way of substitution or addition

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

The agreement shall operate continuing security for all monies, indebtedness or liabilities

The charges shall rank pari passu with charge created / to be created in favour of State Bank of India, Canara Bank, Bank of Baroda and State Bank of Bikaner & Jaipur

All the stocks and stores hypothecated should be kept fully insured

Interest rate 2.5% above SBAR presently 12.75% p.a. in case of CC / WCDL and 0.25% below SBAR presently 10% per annum or rate prescribed by the Bank in case of Corporate Loan

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

State Bank of India

Industrial Finance Branch, Jawahar Vyapar Bhawan, 1, Tolstoy Marg, New Delhi – 110001

6) Date and brief description of instrument modifying the charge

Supplemental Agreement of loan for increase in the overall limit dated 12.08.2005

Supplemental agreement of hypothecation of goods and assets dated 12.08.2005

Letter regarding the grant of individual limits within the overall limit dated 12.08.2005

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.

The extent of operation of the charge stands enhanced due to increase in overall limit from Rs. 404.500 millions to Rs. 429.500 millions as under :

[Rs. In Millions]

Nature of Facility	Existing Limit	Modified Limited
Fund Based	285.500	285.500
Non Fund Based	119.000	144.000
TOTAL	404.500	429.500

Other terms and conditions as per Arrangement Letter No. IFB/RM – 1/2004-05/4601 dated 06.04.2005

Name Of The Company	SAMCOR GLASS LIMITED
Presented By	O. P. Gogia – Company Secretary
1) Date and description of instrument creating the change	Joint deed of hypothecation dated 21^st February, 1995.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 58.750 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	The whole of the Current Assets of the company namely, stocks of Raw materials, Stocks in process, semi-finished & finished goods, stores and spears not relating to plant and machinery. (consumable Stores and Spares, Bills Receivable and Book Debts and all other movables, both present and future whether now lying loose or in case or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about of the company’s factories, premises and godowns situated at village. Naya Nohra, Tensil Ladpura, District Kota (Rajasthan) or wherever else the same may be or be held by any party to the order or disposition of the company or in the course of transit or on high-seas or on order. or delivery, howsoever, and Wheresoever in the possession of The Company and either by way of substitution or addition.
4)Gist of the terms and conditions and extent and operation of the charge.	(a) The Agreement shall operate continuing security for all monies, indebtness or liabilities. (b) All the stocks & stores hypothecated should be kept fully insured. (c) The hypothecated premises shall at all times during the currency of security and so. Long as any money shall remain due and owing be maintained in good and saleable condition. (d) All other terms & conditions, interest rate as described in the Working Capital Consortium Agreement dated 21^st February, 1995.
5)Name and Address and description of the person entitled to the charge.	Canara Bank, Janpath branch, 74 Janpath, New Delhi – 110 001
6)Date and brief description of instrument modifying the charge	Hypothecation Agreement dated 25^th January, 2003 for availing LC Adhoc limit of Rs. 30.000 Millions (copy of the Hypothecation Agreement enclosed)
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.	Working capital facilities of Rs. 58.750 Millions together with interest, compound interest, additional interest, liquidated damages, premia on prepayment or on redemption, costs, charges, expenses and all other monies payable by the company to Canara Bank in terms of the said deed of Hypothecation dated 21^st February, 1995 being the original charge, is now also secured by the said joint mortgage by deposit of title deeds created by the company on 8^th January, 1997 on 2^nd charge basis on the fixed assets of the company in favour of Canara Bank.

Name Of The Company	SAMCOR GLASS LIMITED
Presented By	O. P. Gogia – Company Secretary
1) Date and description of instrument creating the change	Joint Deed of Hypothecation dated 21^st February, 1995. further modified by Deed of Hypothecation dated 14^th July, 1995, 8^th January, 1997, 21^st July, 2000 and 17^th August, 2000.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 105.750 Millions further modified by Deed of Hypothecation dated 21^st July, 2000 to Rs. 148.500 Millions and Deed of Hypothecation dated 25^th September, 2003 to Rs. 171.000 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	The whole of the Current Assets of the company namely, stocks of Raw materials, Stocks in process, semi-finished & finished goods, stores and spears not relating to plant and machinery. (consumable Stores and Spares, Bills Receivable and Book Debts and all other movables, both present and future whether now lying loose or in case or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about of the company’s factories, premises and godowns situated at village. Naya Nohra, Tensil Ladpura, District Kota (Rajasthan) or wherever else the same may be or be held by any party to the order or disposition of the company or in the course of transit or on high-seas or on order. or delivery, howsoever, and Wheresoever in the possession of The Company and either by way of substitution or addition.
4)Gist of the terms and conditions and extent and operation of the charge.	The Agreement shall operate continuing security for all monies, indebtness or liabilities. The charges shall rank pari-passu with charge created to be created in favour of Canara Bank, Bank of Baroda & State Bank of Bikaner & Jaipur All the stocks & stores hypothecated should be kept fully insured. 3% above SBI prime Lending rate presently 14.25% per annum with quarterly rests. All other terms & conditions as described in the Working Capital Consortium Agreement dated 25^th September, 2003.
5)Name and Address and description of the person entitled to the charge.	State Bank of India, Industrial finance Branch, Vijaya Building, Barakhamba Road, New Delhi.
6)Date and brief description of instrument modifying the charge	Hypothecation Agreement dated 25^th September, 2003. (A copy of the said Deed Hypothecation dated 25^th September, 2003. is enclosed)
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.	State Bank of India: Working capital facilities of Rs. 105.750 Millions together with interest, compound interest, additional interest, liquidated damages, premia on prepayment or on redemption, costs, charges, expenses and all other monies payable by the company to SBI in terms of the Loan Agreement which is secured by the said said Deed of Hypothecation dated 21^st February, 1995 are enhanced from Rs. 105.750 Millions to Rs. 148.500 Millions vide Deed of Hypothecation dated 21^st July, 2000 to Rs. 171.000 Millions vide joint Deed of Hypothecation and Working Capital Consortium Agreement dated 25^th September, 2003. for Rs. 353.000 Millions.

Name Of The Company	SAMCOR GLASS LIMITED
Presented By	O. P. Gogia – Company Secretary
1) Date and description of instrument creating the change	Joint Deed of Hypothecation dated 21^st February, 1995. further modified by Deed of Hypothecation dated 14^th July, 1995, 8^th January, 1997, 21^st July, 2000 and 17^th August, 2000. & 25^th September, 2003.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 105.750 Millions further modified by Deed of Hypothecation dated 21^st July, 2000 to Rs. 148.500 Millions and Deed of Hypothecation dated 25^th September, 2003 to Rs. 171.000 Millions.further modified by agreement of Hypothecation of goods dated 26^th July, 2004 to Rs.204.500 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	The whole of the Current Assets of the company namely, stocks of Raw materials, Stocks in process, semi-finished & finished goods, stores and spears not relating to plant and machinery. (consumable Stores and Spares, Bills Receivable and Book Debts and all other movables, both present and future whether now lying loose or in case or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about of the company’s factories, premises and godowns situated at village. Naya Nohra, Tensil Ladpura, District Kota (Rajasthan) or wherever else the same may be or be held by any party to the order or disposition of the company or in the course of transit or on high-seas or on order. or delivery, howsoever, and Wheresoever in the possession of The Company and either by way of substitution or addition.
4)Gist of the terms and conditions and extent and operation of the charge.	The Agreement shall operate continuing security for all monies, indebtness or liabilities. The charges shall rank pari-passu with charge created to be created in favour of Canara Bank, Bank of Baroda & State Bank of Bikaner & Jaipur All the stocks & stores hypothecated should be kept fully insured. Interest rate 2.5% above SBI prime Lending rate presently 12.75% per annum with quarterly rests. All other terms & conditions as described in the Working Capital Consortium Agreement dated 25^th September, 2003.
5)Name and Address and description of the person entitled to the charge.	State Bank of India, Industrial finance Branch, 14^th Floor, Jawahar Vypar Bhawan, STC Buliding, 1 Tolstoy Marg, New Delhi – 110 001.
6)Date and brief description of instrument modifying the charge	Agreement of Hypothecation of Goods / Agreement of Loan for overall limit dated 26^th July, 2004. (A copy of the said Agreement of Hypothecation of goods / Agreement of loan dated 26^th July, 2004 is enclosed).
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.	State Bank of India: Working capital facilities of Rs. 105.750 Millions together with interest, compound interest, additional interest, liquidated damages, premia on prepayment or on redemption, costs, charges, expenses and all other monies payable by the company to SBI in terms of the Loan Agreement which is secured by the said Deed of Hypothecation dated 21^st February, 1995 are enhanced from Rs. 105.750 Millions to Rs. 148.500 Millions vide Deed of Hypothecation dated 21^st July, 2000 to Rs. 171.000 Millions vide joint Deed of Hypothecation and Working Capital Consortium Agreement dated 25^th September, 2003. and to Rs. 204.500 Millions vide Agreement of Hypothecation of Goods / Agreement of Loan for overall limit dated 26^th July, 2004..

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.40.97
UK Pound	1	Rs.80.73
Euro	1	Rs.54.56

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	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