MIRA INFORM REPORT

Report Date :

28.05.2007

IDENTIFICATION DETAILS

Name :	NIRLEP APPLIANCES LIMITED
Formerly Known As :	DURWARE PRIVATE LIMITED
Registered Office :	B - 5, MIDC Railway Station Road, Aurangabad - 431005, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	16.07.1979
Com. Reg. No.:	11-21470
CIN No.: [Company Identification No.]	U247200MH1979PLC021470
TAN No.: [Tax Deduction & Collection Account No.]	NSKD01728G
PAN No.: [Permanent Account No.]	AABCB3162C
Legal Form :	Public Limited Liability Company. Company’s shares are listed on the stock exchange.
Line of Business :	Manufacturing of non-stick cookware

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 150000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track records. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. 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 :	B - 5, MIDC Railway Station Road, Aurangabad - 431005, Maharashtra, India
Tel. No.:	91-240-2376788 / 2376121
Fax No.:	91-240-2376214
E-Mail :	admin@nirlep.com
Website :	http://www.nirlep.com
Area :	5000 sq. ft.
Location :	Owned
Factory :	B – 6/7, MIDC Railway Station Road, Aurangabad – 431001, Maharashtra, India
Tel. No.:	91-240-2376121
Fax No.:	91-240-2376214
Area :	50000 sq. ft.
Location :	Owned

DIRECTORS

Name :	Mr. Ramchandra N. Bhogale
Designation :	Director
Address :	20, Mitra Mandal Co-operative Housing Society, Osmanpura, Aurangabad
Date of Birth/Age :	52 years
Qualification :	B. E. [Mechanical]
Experience :	30 years
Date of Appointment :	17.12.1982
Name :	Mr. Mukund N. Bhogale
Designation :	Director
Address :	8, Mitra Mandal Co-operative Housing Society, Osmanpura, Aurangabad
Date of Birth/Age :	49 years
Qualification :	B. E. [Chemical]
Experience :	25 years
Date of Appointment :	01.08.1980
Name :	Mr. Nityanad J. Bhogale
Designation :	Director
Address :	21, Jayanagar, Aurangabad
Date of Birth/Age :	46 years
Qualification :	B. Sc.
Experience :	20 years
Date of Appointment :	27.03.2001
Name :	Mr. Mariwala V.J.
Designation :	Director
Date of Birth/Age :	05.07.1942
Date of Appointment :	30.05.1997
Name :	Mr. Vinayak M. Joglekar
Designation :	Director
Date of Birth/Age :	05.07.1942
Date of Appointment :	20.07.1993
Name :	Mr. Mukesh S. Sehgal
Designation :	Director
Date of Birth/Age :	15.08.1949
Date of Appointment :	01.08.1980
Name :	Mr. Sanjay P. Sathe
Designation :	Director
Date of Birth/Age :	08.08.1954
Date of Appointment :	26.12.1986
Name :	Mr. Ratandep Joneja
Designation :	Director
Date of Birth/Age :	04.03.1961
Date of Appointment :	30.06.1998
Name :	Mr. Dayal Tushar
Designation :	Director
Date of Birth/Age :	14.12.1952
Date of Appointment :	20.03.2002

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Sanjay P. Sathe	200	100.00
Mukesh Sehgal	200	100.00
Sharayu Joglekar	200	100.00
Vasumati Vaze	10	100.00
Mukund Bhogale	17405	100.00
Ramchandra Bhogale	17628	100.00
P. S. Bhogale	1755	100.00
A. M. Kaley	395	100.00
G D Sathe	620	100.00
Nityanand J. Bhogale	19568	100.00
Madhav Y. Bhogale	100	100.00
Achyut M. Dhamdhere	50	100.00
Asawari S. Kulkarni	305	100.00
Mohan Y. Bhogale	60	100.00
G. D. Mahajan and K. G. Mahajan	3	100.00
Rajani M. Bhogale	20548	100.00
Saurabh R. Bhogale	560	100.00
Malini J. Bhogale	100	100.00
Shyamala R. Bhogale	16447	100.00
Fulkrum Financial Service Private Limited	19450	100.00
Mohan Panse and Mukti M. Panse	250	100.00
Mansarovar Investment Limited	20075	100.00
Marigold Capital service Limited	20075	100.00
Yashwant G. Bhogale	3131	100.00
P. S. Deshpande	300	100.00
Arun S. Chitnis	180	100.00
Subhash K. Paranjape	115	100.00
Shanta K. Paranjape	170	100.00
Satish K. Paranjape	80	100.00
Madhavi A. Apte	115	100.00
Mukkti M. Panse	180	100.00
Suhas N.Bhogale	320	100.00
Sunil N. Deshpande	125	100.00
Vinayak M. Joglekar	100	100.00
Ashish Gaqrde	1	100.00
Milind S. Bapat	1	100.00
Shobha N.Joshi	1	100.00
Deelip Karandikar	1	100.00
Jayanand Kokatey	1	100.00
Deepak Kulkarni	1	100.00
Shilpa Mehta	1	100.00
K. N. Lawande	1	100.00
Lata L.Nasre	1	100.00
Sunetra M. Palekar	1	100.00
Shankar Pendse	1	100.00
Prakash S. Reddy	1	100.00
Puspa D. Kulkarni	1	100.00
Arundhati D. Dhattacharya	1	100.00
Mukund N. Bhogale	2	100.00
Shakuntala G. Joshi	1	100.00
Ujwala R. Ranade	1	100.00
Manorama M. Shiralkar	1	100.00
Mr. Milind Sangwikar	1	100.00
D. B. Ghate	1	100.00
P. B. Ghate	1	100.00
S. P. Ghate	1	100.00
G. G. Gumaste	1	100.00
A. M. Gumaste	1	100.00
B. R. Nadgauda	1	100.00
A. V. Tatke	1	100.00
V. J. Dhande	1	100.00
V. P. Purohit	1	100.00
S. D. Prabhu	1	100.00
S.R. Joshi	1	100.00
Usha P. Sahastrabuddhe	1	100.00

Names of Shareholders	No. of Shares
Bhogale Family and its associates	140702

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Non-stick Cookware, Hard Anodized Cookware, Pressure Cooker, Gas Lighter,etc.

Products :

Item Code No:	Product Description
7615.10	Table Kitchenware or other article and part there of Aluminum

Non-stick Cookware

Hard Anodized Cookware

Pressure Cooker

Enamelware [Cook – N – Serve]

Gasstove

Gas Lighter

Brand Names :

“NIRLEP”

Exports :

Products :

Non Stick Cookware

Countries :

Italy

Imports :

Products :

Coating

Countries :

China and Belgium

GENERAL INFORMATION

Suppliers :	Dupont China Holding Company Limited
No. of Employees :	178
Bankers :	Unknown

Banking Relations :	--
Auditors :
Name :	S. V. Gogate and company Chartered Accountant
Address :	5, Anuruddha Society Sant Janabai Path, Vile Parle, Mumbai:400057, Maharashtra

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs. 100/- each	Rs. 20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
160852	Equity Shares	Rs. 100/- each	Rs. 16.085 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		16.085	16.085
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		21.603	19.217
4] (Accumulated Losses)		0.000	(7.227)
NETWORTH		37.688	28.075
LOAN FUNDS
1] Secured Loans		78.374	58.881
2] Unsecured Loans		24.470	23.188
TOTAL BORROWING		102.844	82.069
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		140.532	110.144
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		43.696	37.457
Capital work-in-progress		0.000	0.000
INVESTMENT		4.286	3.453
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	76.046	51.030
	Sundry Debtors	70.052	50.870
	Cash & Bank Balances	1.555	1.411
	Other Current Assets	0.496	0.496
	Loans & Advances	19.254	14.987
Total Current Assets		167.403	118.794
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	75.628	55.660
	Provisions	6.473	3.795
Total Current Liabilities		82.101	59.455
Net Current Assets		85.302	59.339
MISCELLANEOUS EXPENSES		7.248	9.895
TOTAL		140.532	110.144

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005
Sales Turnover		352.094	303.225
Other Income		0.780	1.873
Total Income		352.874	305.098
Profit/(Loss) Before Tax		10.542	9.724
Provision for Taxation		0.930	0.693
Profit/(Loss) After Tax		9.612	9.031
Earnings in Foreign Currency :
Export Earnings		26.283	25.863
Commission Earnings		0.000	0.000
Other Earnings		0.000	0.000
Total Earnings		26.283	25.863
Expenditures :
	Cost of Goods Sold	236.001	203.519
	Administrative Expenses	89.562	79.200
	Interest	9.663	7.165
	Depreciation & Amortization	7.106	6.997
Total Expenditure		342.332	296.881

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	2.72	2.96
Net Profit Margin (PBT/Sales)	(%)	2.98	3.18
Return on Total Assets (PBT/Total Assets}	(%)	4.99	6.22
Return on Investment (ROI) (PBT/Networth)		0.27	0.34
Debt Equity Ratio (Total Liability/Networth)		4.90	5.04
Current Ratio (Current Asset/Current Liability)		2.03	1.99

LOCAL AGENCY FURTHER INFORMATION

Trade Reference :

Ø Pardini SRL

Name of the company	Durware Private Limited
Presented By	--
1) Date and description of instrument creating the change	--
2) Amount secured by the charge/amount being of the charge	Letter of Hypothecation to executed in favor of Maharashtra State financial Corporation
3) Amount secured by the charge/amount owing on security of the charge	Rs. 0.925 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 Legal hypothecation the companies plant and machinery as per list enclosed moveable and all other similar assets to be acquired in future situated lying being at plot of land bearing plots No.A-21, to 24 in Adddln. Jalna Industrial Area of the MIDC within the village limits of Jalna Tq. Regn. Sub-Dist and Dist Jalna.
4) Gist of the terms and conditions and extent and operation of the charge.	a) In consideration for the aforesaid loan the company has created first legal mortage of the company’s property (short particulars whereof are stated in the proceedings Col. No. (3) in favour of the Corporation . b) Rs. 0.530 Millions upon excution of the said Deed. c) The entire loan of Rs. 0.925 Million to repaid by 9 half yearly install Ist of instalment shall be on 20 and last and 9^th installment shall on 14.3.1992 d) The loan to carry interest 14 from 14.03.1987 being the date of her of 1^st installment out of the enter loan of Rs. 0.935 Millions payable on 15^th Feb. 15^th May, 16^th Aug and 15^th Nov. in each year,the Company is liable to pay addln. Int. upto 12 in case the company commits default in payment of any instalment of principle or interest on due dates on the amount default for defaulted period and case company commits any breach of terms and conditions containded in the said letter of hypothecation the liable t further addln. Interest over and above the said add upto 1 e) the company to maiontaiin margin fo 20% between the market of the mortage assets and to of outstanding loan.
5) Name and Address and description of the person entitled to the charge.	Maharashtra State Financial Company Central Office, 5^th, 7^th, 8^th, and 9^th, floors fort, Bombay-400 001 Maharashtra State financial Company. Regional Office, Station Road, Auragabad.
6) Date and brief description of instrument modifying the charge	--
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.	--

NIRLEP was the first brand of nonstick cookware to be introduced in India in 1968. The entire technology for manufacturing was developed inhouse.

NIRLEP continues to be a strong market leader in the Indian nonstick cookware with a market share of around 40%.

NIRLEP products are manufactured at three factories, two in Aurangabad and one in Jalna (all in Maharashtra). These factories are semi automatic and are equipped with state of the art machinery like automatic spray guns, automatic digressing plant, spiral grooving machines, hydraulic press, base grooving machines and stud welding machines etc.

Quality is taken very seriously at NIRLEP and each and every piece goes through a Quality Control Check at every stage of manufacturing.

The Company is owned by Technocrat Engineers who are deeply involved in day to day operations of the organisation and have a wide knowledge in manufacturing nonstick cookwares.

NIRLEP has a very strong distribution network in India. It has authorized distributors in almost every state of India coupled with a strong & dedicated field force to ensure sales & service at around 9000 retail outlets.

NIRLEP believes in three basic tenets - Integrity in business , Quality & Fair Price.

NIRLEP NON-STICK COOKWARE range includes 44 nonstick items, to meet the daily cooking requirements. These include tawa, frypan, kadhai, multipot, multipan, toaster, griller, appa patra, appam chatty and many more. NIRLEP NON-STICK which meets the requirement the BEST!

NIRLEP ENAMELWARE " Cook 'n' Serve", comes in vibrant colours and design that are feast for the eye, cooks all type of food, and lends aesthetic grace to dinning ambience. Curry pot, Regency pot and Kadahi are the mark of this range.

Experience the Elegance of Cook n Serve.

NIRLEP HARD ANODISED COOKWARE- This rough and tough ....yet so elegant cookware comes with the most asked for kitchen utensils - tawa, kadhai and deep kadhai. The Simply Hard to Resist range.

NIRLEP PRESSURE COOKERS - The daily utility product from Nirlep. Add to the kitchen glory, robust, handsome and durable NIRLEP pressure cooker. "The Robust, Handsome, Durable Nirlep Safe Cooker"

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.40.60
UK Pound	1	Rs.80.65
Euro	1	Rs.54.55

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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