MIRA INFORM REPORT

Report Date :

03.03.2007

IDENTIFICATION DETAILS

Name :	STUMPP SCHUELE AND SOMAPPA PRIVATE LIMITED
Registered Office :	139/2, Hosur Road, Koramangala, Bangalore – 560 095, Karnataka, India
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	12.02.1960
Com. Reg. No.:	08-1378
CIN No.: [Company Identification No.]	U31901KA1960PTC001378
TAN No.: [Tax Deduction & Collection Account No.]	BLRS14986G
PAN No.: [Permanent Account No.]	AACCS2285G
Legal Form :	Private limited liability company.
Line of Business :	Manufacturers, Importers, Exporters and Dealers of all kinds of springs, capacitors and metallised plastic films, etc.

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 1000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having fine track. Available information indicates high financial responsibility of the company. General financial position is good. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	139/2, Hosur Road, Koramangala, Bangalore – 560 095, Karnataka, India
Tel. No.:	91-80-25532335/25532282/25521538/25531929
Fax No.:	91-80-25530622/25532379
E-Mail :	1. inks@incowax.com 2. sss.blr@smo.springrpg.ems.vsnl.net.in
Website :	http://www.sss-india.com
Area :	30000 sq.ft.- Owned
Location :	Commercial
Head Office :	139/2, Hosur Road, Koramangala, Bangalore – 560 095, Karnataka
Tel. No.:	91-80-2553 2335 (5 Lines)
Fax No.:	91-80-2553 0622
Factory 1 :	Ø 139/2, Hosur Road, Koramangala, Bangalore – 560 095, Karnataka Tel. No. 91-80-2553 2335 (5 Lines) Fax No. 91-80-2553 0622 E Mail: inks@incowax.com Ø Unit I – No. 115, Bommasandra Industrial Area, Off Hosur Road, Bangalore – 560 068, Karnataka Tel. No. 91-80-2572 1585 Fax No. 91-80-2572 1871 Area – 10000 Sq. ft (Owned) Location – Commercial Ø Unit II – Pl-4, Industrial Area, Bommasandra, Bangalore – 560 068, Karnataka Tel. No. 91-80-2553 2239 Fax No. 91-80-2553 2242 Area – 10000 Sq. ft (Owned ) Location – Commercial Ø Electronic Division – Bull Temple Road, Bangalore – 560 019, Karnataka Tel. No. 91-80-2661 0074 / 7024 / 2124 Fax No. 91-80-2660 4189 Telex: 0845-2406 NIPN IN Area – 10000 Sq. ft (Owned) Location – Industrial
Branches :	Located At: Ø Sapphire Complex, Flat No. 16, No. 31/32, Mumbai – Pune Road, Pune – 411 012, Maharashtra Tel. No. 91-20-2316606 / 07 Ø Devedarshan, 207 Ground Floor, No. 1, Bornaby Road, Kilpauk, Chennai – 600 010, Tamilnadu Tel. No. 91-44-2642 7155 Ø 60/124, Harpida Dutta Lane, Gold Gardens, Kolkata – 700 033, West Bengal Tel. No. 91-33-2472 5216 Ø Malargam, 1^st Floor, No. 66, Ramaswamy Thevar Street, Ramanathapuram Coimbatore – 641 045, Tamilnadu Ø Flat No. 305, 3^rd Floor, Ansal Bhavan, No. 10, Kasturba Gandhi Marg, Curzon Road, New Delhi – 110 001 Tel. No. 91-11-2331 3450 Ø C/O Ladiwale Joshi & Sons, 364/C, D. N. C. Kelkar Road, Ladiwale Joshi Compound, Dadar (West), Mumbai – 400 028, Maharashtra Tel. No. 91-22-24304394 Ø Nos. 1 & 2, 2^nd Floor, Emerald House, Sarojini Devi Road, Secunderabad – 500 003, Andhra Pradesh Tel. No. 91-40-2784 4644

DIRECTORS

Name :	Mr. M. Ramanna
Designation :	Chairman
Date of Birth/Age :	85 Years
Name :	Mr. M. R. Ramesh
Designation :	Vice-Chairman and Managing Director
Date of Birth/Age :	57 Years
Name :	Mr. M. P. Somanna
Designation :	Director
Name :	Mr. M. R. Satish
Designation :	Executive Director
Name :	Mr. M. R. Ganganna
Designation :	Director
Name :	Mr. M. R. Gangadhar
Designation :	Director
Name :	Dr. Ing Hans Jochem Steim
Designation :	Director (Nominee of Kern Liebers Inernational GmbH, Germany)
Name :	Mr. Gert Wagner
Designation :	Director
Name :	Mr. J. Alexander
Designation :	Nominee Director – KSIIDC
Name :	Mr. S. K. Sharma
Designation :	Alternate Director
Name :	Mr. A. Murali
Designation :	Alternate Director to Dr. Ing Hans Jochem Steim

KEY EXECUTIVES

Name :	Mr. H S Venkata Ramu
Designation :	General Manager – Administration & Secretary
Name :	Mr. R. Shanmukha
Designation :	Vice President – Technical
Name :	Mr. A. Rathanakumar
Designation :	Deputy General Manager - Finance
Name :	Mr. M. Prabhakar
Designation :	Additional General Manager - Electronic Division
Name :	Mr. Krishna Kumar
Designation :	General Manager- Finance
Name :	Mr. Klaus Scheuble
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Kern – Liebers International GmbH, Germany	52500
Mr. M R Ramesh	24196
Mr. M Ramanna	15364
Mr. M N Chaitanya	11864
Mr. M G Metallic Springs Private Limited	11120
Mr. M Naveen	10810
Mr. M R Satish	8552
Mr. M R Ravi	8548
Mr. M Raghvendra	6254
Mr. M Gopalakrishna (Minor)	6060
Mr. M P Somanna	5510
Mr. M S Nagappa	5324
Mr. M R Ganganna	4370
Mrs. Rangaswamy Bhagya Rekha	4032
Mr. S Narasappa	3000

BUSINESS DETAILS

Line of Business :	Manufacturers, Importers, Exporters and Dealers of all kinds of springs, capacitors and metallised plastic films, etc.
Exports to :	Spain, Australia, Germany, UK and USA
Imports from :	Germany, Japan, Australia and Sweden
Terms :
Selling :	L/C (90 days) and Payment on Delivery + Selective Credit maximum (up to 45 days)
Purchasing :	Credit (up to 90 days) + L/C

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Springs Division	Tonnes	2200	4748
Electronic Division	Millions Pcs	26.000	1.69
Metallization Unit	Tonnes	84	0.000
Automotive Lamps	Millions Pcs	--	2.480

GENERAL INFORMATION

Suppliers :	· G. World, Korea · Kanematsu Corporation, Japan · Totto International Inc., Japan · Tokyo Sangyo Yoshi Company Limited, Japan · Marubeni Corporation, Japan · Toray International Inc., Japan · Kopafol Electrofoiin GmbH, Germany · S. K. Sonderkeramaik & Company GmbH, Germany · Stahl and Draftwerk Roslau GmbH, Germany · Garphyttan Wire AB, Sweden · G. Wored, Korea · Blastwell Enterprises · Joepeng, Austria · Arvind International Rubber · Pavithra Powder Coaters · Nippon Plastics
Customers :	· Ashok Leyland Limited (Hinduja Group) · Bajaj Tempo Limited (Bajaj Group) · Cummins India Limited · Defence Establishments (Government of India) · Delphi Automation Systems · Diesel Loco Works (Indian Railways) · Escorts Tractors Limited (Escort Group) · Ford India (Ford Motor Company) · General Motors India (General Motors) · Honda Motors India (Honda) · Hyundai Motor India (Hyundai Motor Company) · Kirloskar Copland (Kirloskar Group) · Lucas-TVS Limited (TVS Group) · Mahindra & Mahindra (Mahindra Group) · Maruti Udyog Limited (Suzuki Group) · Mico Bosch Limited (Bosch Group) · Tata Motors Limited (Tata Group) · Toyota Kirloskar Motor Limited (Toyota) · TVS Motors · Yamaha Motor (Yamaha) · Multitech Industries, USA · PT Perkasa (Indonesia) · Daikin Clutch (Australia) · Industrial Equipments (Egypt) · Fiberona (Theran)
No. of Employees :	350
Bankers :	Ø Canara Bank Cantonment Branch, M. G. Road, Queens Road, Bangalore – 560 001, Karnataka Ø The Karnataka Bank Limited Jayanagar, 9^th Block, Bangalore – 560 069, Karnataka Ø State Bank of India, Bangalore
Facilities :	--

Banking Relations :	Good
Auditors :	Ø Brahmayya & Company Chartered Accountants, 10/2, Kasturba Road, Bangalore – 560 001, Karnataka Ø K P Rao & Company Chartered Accountants, 25, Madras Bank Road, Bangalore – 560 001, Karnataka
Associates/Subsidiaries :	· Merkel Seals (India) Private Limited, Bangalore, Karnataka · M. G. Bros Oil Mills Private Limited, Kurnool, Andhra Pradesh · M. G. Brothers, Kurnool, Andhra Pradesh · M. G. Automobiles Sales and Serive, Bellary, Karnataka · M. G. Metallic Springs Private Limited, Anantapur, Andhra Pradesh

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs. 10/- each	Rs. 40.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
298500	Equity Shares	Rs. 10/- each	Rs. 29.850 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		29.850	29.850	29.850
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		243.570	133.234	119.516
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		273.420	163.084	149.366
LOAN FUNDS
1] Secured Loans		327.850	139.895	140.706
2] Unsecured Loans		84.410	63.242	28.037
TOTAL BORROWING		412.260	203.137	168.743
DEFERRED TAX LIABILITIES		0.000	2.200	1.507
TOTAL		685.680	368.421	319.616
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		285.180	106.271	83.415
Capital work-in-progress		22.100	7.702	17.868
INVESTMENT		18.500	47.423	18.524
DEFERREX TAX ASSETS			0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	208.470	106.134	67.962
	Sundry Debtors	266.390	140.590	159.260
	Cash & Bank Balances	42.050	23.835	18.042
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	42.740	85.605	54.606
Total Current Assets		559.650	356.164	299.870
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	208.620	164.882	122.675
	Provisions
Total Current Liabilities		208.620	164.882	122.675
Net Current Assets		351.030	191.282	177.195
MISCELLANEOUS EXPENSES		8.870	15.743	22.614
TOTAL		685.680	368.421	319.616

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	1072.750	780.950	658.783
Profit/(Loss) Before Tax	36.450	36.423	34.645
Provision for Taxation	3.390	15.193	13.041
Profit/(Loss) After Tax	32.760	21.230	21.604
Export Value	92.360	35.072	36.524
Import Value	222.800	116.047	53.149
Total Expenditure	NA	744.526	624.138

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	3.05	2.72	3.28
Net Profit Margin (PBT/Sales)	(%)	3.39	4.66	5.26
Return on Total Assets (PBT/Total Assets}	(%)	4.11	7.88	9.04
Return on Investment (ROI) (PBT/Networth)		0.13	0.22	0.23
Debt Equity Ratio (Total Liability/Networth)		2.27	2.26	1.95
Current Ratio (Current Asset/Current Liability)		2.68	2.16	2.44

LOCAL AGENCY FURTHER INFORMATION

History

The subject company was deemed public limited company and it has been converted as private limited company w.e.f. 16^th March 2001.

During the year 74500, shares allotted to the shareholders of erstwhile Nippon electronics (India) limited, pursuant to the Scheme of Amalgamation approved by the High Court of Karnataka.

Future Proposals:

Looking for Technical partner to develop new electronic products.

Subject is engaged in the business as manufacturers, importers, exporters and dealers of all kinds of Springs, Capacitors and Metallised Plastic Films, etc.

Its’ products range includes: -

· Damper Springs

· Valve Springs

· Fuel Injector Springs

· Spiral Springs

· Diaphragm Springs

· Flat Springs

· Wire Forms

· Torsion and Tension Springs

· Stabilizer Bars

· Dye Springs

The company has technical collaboration with Kern – Liebers GmbH, Germany.

It is in trade terms with:-

v Toyo Paints Limited

v Strip Traders

v India Packaging

v Shanthi Powder Coaters

v Future Tech Industrial Services

v Komal Industries

v Mysore Steel Suppliers

v Pavithra Powder Coaters

v Nippon Plastics

v Blastwell Enterprises

It imports 78% of the required raw materials and 3% of the required stores/spares, in addition to occasional need for machinery.

It exports account for under 1% of total sales, each year.

It has absorbed technology (for manufacture of springs) from Dr. Stumpp GmbH, Germany.

The technology is provided by Stumpp & Schuele GmbH, Germany. It has obtained ISO 9002 Certificate. Nippo Electronics (India) Private Limited has been amalgamated with this company.

The company is looking for technical partner to develop new electronics products.

The company has received QS 9000 certification.

Fixed Assets of important value are :

Ø Land – Rs. 6.410 millions

Ø Building – Rs. 7.940 millions

Ø Plant and Machinery – Rs. 82.130 millions

Ø Furniture and Fixture – Rs. 2.770 millions

Ø Vehical – Rs. 6.430 millions

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.49
UK Pound	1	Rs.85.71
Euro	1	Rs.58.53

SCORE & RATING EXPLANATIONS

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

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions