MIRA INFORM REPORT

Report Date :

09.05.2007

IDENTIFICATION DETAILS

Name :	GLASSTECH INDUSTRIES (INDIA) PRIVATE LIMITED
Registered Office :	F 223 , 2^nd Floor, Tower 7 International Infotech Park, Vashi Street Complex, Navi Mumbai – 400073, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	12.05.1997
Com. Reg. No.:	11-107962
CIN No.: [Company Identification No.]	U26100MH1997PTC107962
TAN No.: [Tax Deduction & Collection Account No.]	MUMG08682C
PAN No.: [Permanent Account No.]	AAACG3416H
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of glass and mirror for architectural needs.

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 420000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is fast expanding for manufacture of glass for interior application. However it’s profit margin is under server pressure. General financial position is satisfactory. Payments are reported as slow but correct. Your proposed business dealings can be considered against D/A or D/P terms.

LOCATIONS

Registered Office :	F 223 , 2^nd Floor, Tower 7 International Infotech Park, Vashi Street Complex, Navi Mumbai – 400073, Maharashtra, India
Tel. No.:	91-22-27812395/27812396
Fax No.:	91-22-27812394
E-Mail :	glasstech@vsnl.com
Factory 1 :	l-113, MIDC, Taloja Industrial Area, District Raigad Taloja – 410208, Maharashtra
Tel. No.:	91-2842-7402694
E-Mail :	mitsheth@vsnl.com

DIRECTORS

Name :	Mr. Ponnarambil Govindan Sathiapalan
Designation :	Chairman
Address :	2002, Solitaire, Hiranandani Garden, Powai, Mumbai-400076
Date of Birth/Age :	15/01/1945
Date of Appointment :	12/05/1997
Name :	Mr. Sandeep Sathiapalan
Designation :	Director
Address :	2002, Solitaire, Hiranandani Garden, Powai, Mumbai-400076
Date of Birth/Age :	03/10/1981
Date of Appointment :	03/01/2003
Name :	Mr. Sandhia Sathiapalan
Designation :	Director
Address :	2002, Solitaire, Hiranandani Garden, Powai, Mumbai-400076
Date of Birth/Age :	23/05/1978
Date of Appointment :	12/05/1997
Name :	Ms. Usha Sathiapalan
Designation :	Director
Address :	2002, Solitaire, Hiranandani Garden, Powai, Mumbai-400076
Date of Birth/Age :	20/11/1954
Date of Appointment :	12/05/1997

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Ponnarambil Govindan Sathiapalan	2999700
Mr. Sandeep Sathiapalan	500000
Sandhia Sathiapalan	499900
Usha Sathiapalan	999900
Category	Percentage of Holding
Directors or relatives of directors	100.00 %

BUSINESS DETAILS

Line of Business :

Manufacturer of glass and mirror for architectural needs.

Products :

Product Description	ITC Code
Float/ Surface Glass	700500

GENERAL INFORMATION

Bankers :	State Bank of India, Navi Mumbai
Facilities :	--

Banking Relations :	Satisfactory
Auditors :
Name :	M. M. Sheth Chartered Accountant
Address :	2/40, Tardeo Air Conditioned Market, Tardeo, Mumbai – 400034, Maharashtra, India
Tel. No.:	91-22-23520031
Fax No.:	91-22-23520031
E-Mail :	mitsheth@vsnl.com

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs. 10 each	Rs. 100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7279500	Equity Shares	Rs. 10 each	Rs. 72.795 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		72.795	49.995	49.995
2] Share Application Money		0.000	57.000	16.000
3] Reserves & Surplus		33.758	5.680	5.907
NETWORTH		106.553	112.675	71.902
LOAN FUNDS
1] Secured Loans		80.175	25.825	(2.184)
2] Unsecured Loans		74.066	66.550	17.385
TOTAL BORROWING		154.241	92.375	15.201
DEFERRED TAX LIABILITIES		9.216	6.556	1.710
TOTAL		270.010	211.606	88.813
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		181.045	171.322	57.863
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.536	1.393	0.000
Deposits		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	56.952	29.429	19.156
	Sundry Debtors	20.073	6.290	6.449
	Cash & Bank Balances	8.374	8.667	2.979
	Other Current Assets	0.000	0.000	0.134
	Loans & Advances	30.406	2.919	5.229
Total Current Assets		115.805	47.305	33.947
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	29.511	9.929	4.520
	Provisions	0.620	0.850
Total Current Liabilities		30.131	10.779	4.520
Net Current Assets		85.674	36.526	29.427
MISCELLANEOUS EXPENSES		1.755	2.365	1.523
TOTAL		270.010	211.606	88.813

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2005	31.03.2004
Sales Turnover		69.120	61.019
Other Income
Total Income		69.120	61.019
Profit/(Loss) Before Tax		5.098	5.769
Provision for Taxation		(4.952)	0.259
Profit/(Loss) After Tax		(0.146)	6.028
Earnings in Foreign Currency :
	Export Earnings
	Commission Earnings	46.312	26.768
	Other Earnings
Total Earnings		46.312	26.768
Imports :
	Raw Materials	119.209	26.768
	Stores & Spares
	Capital Goods
	Others
Total Imports		119.209	26.768
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses
	Administrative Expenses
	Raw Material Consumed
	Purchases made for re-sale
	Consumption of stores and spares parts
	Increase/(Decrease) in Finished Goods	64.021	55.249
	Salaries, Wages, Bonus, etc.
	Managerial Remuneration
	Payment to Auditors
	Interest
	Insurance Expenses
	Power & Fuel
	Depreciation & Amortization
	Other Expenditure
Total Expenditure		64.021	55.249

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	NA	(0.21)	9.878
Net Profit Margin (PBT/Sales)	(%)	NA	7.38	9.454
Return on Total Assets (PBT/Total Assets}	(%)	NA	2.33	6.28
Return on Investment (ROI) (PBT/Networth)		NA	0.05	0.080
Debt Equity Ratio (Total Liability/Networth)		1.73	0.92	0.274
Current Ratio (Current Asset/Current Liability)		3.84	S4.39	7.51

LOCAL AGENCY FURTHER INFORMATION

Business of the company

The Directors are very pleased to inform that the expansion project has been fully completed as on date of this report. All the machineries have been installed and baring a few initial teething problems, the directors expect the company to achieve a substantial hump in the turnover due to the expansion. With the construction industry witnessing a boom, the current year augurs well for the company.

The Indian market and customer is becoming more discerning and has realized the importance of good quality construction material, both for safety and decorative. To meet this growing demand, the directors have embarked on an ambitious expansion plan. This envisages the setting up of additional facilities for the finer processing will meet the growing architectural needs of the customer as such glass is then unbreakable, prevents a thermal cracks and retains the temperature maintained inside the building, thus reducing electricity cost s substantially. The standards to be adopted and the machinery to be employed are the latest available and are up to international standards. As a measure of the confidence that the directors place in the project, a major part of the entire cost of approximately Rs. 130 millions is planned to be funded by way of fresh issue of equity shares, unsecured loans from promoters and internal accruals. The balance will be funded by way of supplier’s credit. This step will also ensure that there is no financial burden on the company. The directors expect the turnover to touch about Rs. 250 millions in a full operating year after the completion of the expansion.

To update on the expansion, land adjacent to the company’s existing factory has been acquired. One of the leading contracting companies has been retained to oversee the construction of the factory, which is also progressing as scheduled. Orders for major machineries are in the process of being finalized. Barring any unforeseen circumstances, this plant should be operational before the end of the current financial year.

Fixed Assets :

Ø Computer and peripheral

Ø Electrical equipments

Ø Factory building

Ø Furniture and fixtures

Ø Land

Ø Office equipments

Ø Office premises

Ø Plant and machinery

Ø Vehicles

Name of the company

GLASSTECH INDUSTRIES (INDIA) PRIVATE LIMITED

Presented By

STATE BANK OF INDIA , CHEMBUR BRANCH, MUMBAI

1) Date and description of instrument creating the change

Agreement for loan for overall limit form C-I

Agreement of Hypothecation of goods and assets form C-II

Letter regarding the grant of individual limits within the overall limit from C-5

All the above agreement are dated 3.3.2005 and executed for the creation of a single charge.

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

Rs. 84.500 millions

	(Rs in millions)
Cash credit against stock and book debts	45.000
Stand by line of credit	4.500
Term Loan against land and building	25.000
Bank guarantee	10.000
Total	84.500

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

A first charge by way of hypothecation of borrowers entire goods movable and other assets present and future including documents bookdebts, outstanding money, receivables including receivable by way of cash assistance and or cash incentives under the cash incentive scheme or any other scheme. Claims including claims by way of refund of customs/ excise duties under the duty drawback credit scheme or any other scheme bills, invoice4 documents contracts insurance policies , guarantees, engagements securities investment and right uncalled capital and all machinery present and future of such form satisfactory to the bank.

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

R. O. I. : Cash credit against stock and Book debts : 11.75 % p.a.

Stand by line of credit : 12.75 % p.a. Term Loan against Land and Building : 11.50 % p.a.

Raw Materials	25 %
Book debts	40 %
Building	33.33 %
Land	34 %

Repayment : First 6 monthly installments of Rs. 0.500 millions each from October 2005 to March 2006.

Next 12 monthly installments of Rs. 0.675 millions each from April 2006 to March 2007.

Next 12 monthly installments of Rs. 0.900 millions each from April 2007 to March 2008

Next 12 monthly installments of Rs. 1.000 millions each from April 2008 to June 2008 and

Last installment of Rs. 1.100 millions

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

State Bank of India

Chembur Branch,

Mumbai - 400071

6) Date and brief description of instrument modifying the charge

Not Available

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 Available

Name of the company

GLASSTECH INDUSTRIES (INDIA) PRIVATE LIMITED

Presented By

STATE BANK OF INDIA , CHEMBUR BRANCH, MUMBAI

1) Date and description of instrument creating the change

Agreement for loan for overall limit form C-I

Agreement of Hypothecation of goods and assets form C-II

Letter regarding the grant of individual limits within the overall limit from C-5

All the above agreement are dated 3.3.2005 and executed for the creation of a single charge.

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

Rs. 84.500 millions

	(Rs in millions)
Cash credit against stock and book debts	45.000
Stand by line of credit	4.500
Term Loan against land and building	25.000
Bank guarantee	10.000
Total	84.500

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

A first charge by way of hypothecation of borrowers entire goods movable and other assets present and future including documents bookdebts, outstanding money, receivables including receivable by way of cash assistance and or cash incentives under the cash incentive scheme or any other scheme. Claims including claims by way of refund of customs/ excise duties under the duty drawback credit scheme or any other scheme bills, invoice4 documents contracts insurance policies , guarantees, engagements securities investment and right uncalled capital and all machinery present and future of such form satisfactory to the bank.

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

R. O. I. : Cash credit against stock and Book debts : 11.75 % p.a.

Stand by line of credit : 12.75 % p.a. Term Loan against Land and Building : 11.50 % p.a.

Raw Materials	25 %
Book debts	40 %
Building	33.33 %
Land	34 %

Repayment : First 6 monthly installments of Rs. 0.500 millions each from October 2005 to March 2006.

Next 12 monthly installments of Rs. 0.675 millions each from April 2006 to March 2007.

Next 12 monthly installments of Rs. 0.900 millions each from April 2007 to March 2008

Next 12 monthly installments of Rs. 1.000 millions each from April 2008 to June 2008 and

Last installment of Rs. 1.100 millions

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

State Bank of India

Chembur Branch,

Mumbai - 400071

6) Date and brief description of instrument modifying the charge

No instrument Memorandum of Deposit for creation of charge for term loan/ overall limit (Form C 9) dated 11.08.205

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 original charge was created on 3.3.2005 for Rs. 84.500 millions Now by the present modification dated 11.08.2005 the company offered an additional collateral security by way of an equitable mortgage by deposit of title deeds over the immovable property by fixing the mortgage at Rs. 84.500 millions together with interest thereon and all immovable property hereinabove referred to under schedule is an follows:

Part II

Plot No L/112 MIDC Taloja MIDC

Plot No L/114 and L/115 MIDC Taloja MIDC

Plot No L/113 land and building MIDC Taloja MIDC

Comprising of Land and Building and erections thereon (both present and future.)

Name of the company

GLASSTECH INDUSTRIES (INDIA) PRIVATE LIMITED

Presented By

STATE BANK OF INDIA , CHEMBUR BRANCH, MUMBAI

1) Date and description of instrument creating the change

General agreement for the grant of Small industrial and hypothecation of movables, book debts and other assets

Ancillary agreement No. 1

Both the above agreement are dated 11.01.2002 and executed for the creation of a single charge.

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

Rs. 0.500 millions

D. C. C. – Hypothecation of stocks

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 present and future goods, book debts and all other movable assets of the Borrowers including documents of title to the goods, outstanding moneys, receivable, bills, invoices, documents, contracts, insurance policies, guarantees engagements, securities, investment and rights and the present and all future machinery and raw materials and consumable spares.

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

R. O. I. : Cash credit against stock and Book debts : 11.75 % p.a.

Stand by line of credit : 12.75 % p.a. Term Loan against Land and Building : 11.50 % p.a.

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

State Bank of India

Chembur Branch,

Mumbai - 400071

6) Date and brief description of instrument modifying the charge

Not available

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 available

Name of the company

GLASSTECH INDUSTRIES (INDIA) PRIVATE LIMITED

Presented By

STATE BANK OF INDIA , CHEMBUR BRANCH, MUMBAI

1) Date and description of instrument creating the change

No instrument but draft recital to be entered in the title deed register while making mortgage by deposit of title deeds dated 31.10.2001

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

Rs. 0.500 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

This charge creates an equitable mortgage by deposit of title deeds on its immovable properties by fixing mortgage at Rs. 5.000 millions the properties described under schedule II are as follows.

All that piece or parcel of land known as Plot No L/113 MIDC Tajola industrial area within the village limits of tondara and Regn. Sub dist- Panvel, dist and Regn Dist Raigad containing by admg. 14453 sq. mtrs. Or thereabouts and bounded as follows : that is to say on or towards North West : By Nalla, South Eats by : Plot No: L – 114

North East : Plot Bo L-112 and Road , South west : Nalla together with the building and structures, immovable plant and machinery and erecatins them or at anything thereafter standing and being thereon.

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

R. O. I. As would be determined by the bank from time to time.

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

State Bank of India

Chembur Branch,

Mumbai - 400071

6) Date and brief description of instrument modifying the charge

Not available

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 available

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 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.41.00
UK Pound	1	Rs.81.80
Euro	1	Rs.55.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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