MIRA INFORM REPORT

Report Date :

20.10.2007

IDENTIFICATION DETAILS

Name :	RANOSON SPRINGS PRIVATE LIMITED
Registered Office :	1/39 Old Rajinder Nagar, New Delhi – 110060
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	24.06.1988
Com. Reg. No.:	55-32220
CIN No.: [Company Identification No.]	U74899DL1988PTC032220
TAN No.: [Tax Deduction & Collection Account No.]	MRTR00871D
PAN No.: [Permanent Account No.]	AAACR2295R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Coiled Springs of Tension, Compression and Torsion category.

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 40000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experience 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 :	1/39 Old Rajinder Nagar, New Delhi – 110060, India
Mobile No.:	91-9971494611 / 9971494606
E-Mail :	ranoson@rediffmail.com
Website :	http://www.ranoson.com
Factory 1 :	A-37, Sector-57, Noida - 201301, Uttar Pradesh, India
Tel. No.:	91-120-4327701 / 02 / 03
Fax No.:	91-120-2581337

DIRECTORS

Name :	Mr. Sunil Kumar Ranotra
Designation :	Whole Time Director (Finance and Marketing)
Address :	B – 229, Sector – 50, Gautam Budh Nagar, Noida – 201301, Uttar Pradesh, India
Date of Birth/Age :	27.12.1955
Date of Appointment :	24.06.1988
Name :	Mr. Anil Prakash Ranotra
Designation :	Whole Time Director (Technical)
Address :	H – 33, Sector – 11, Gautam Budh Nagar, Noida – 201301, Uttar Pradesh, India
Date of Birth/Age :	26.03.1953
Date of Appointment :	24.06.1988
Name :	Mr. Ashwani Kumar Ranotra
Designation :	Whole Time Director
Address :	H – 33, Sector – 11, Gautam Budh Nagar, Noida – 201301, Uttar Pradesh, India
Date of Birth/Age :	05.10.1950
Date of Appointment :	24.06.1988
Name :	Mr. Hans Raj Ranotra
Designation :	Director
Address :	H – 33, Sector – 11, Gautam Budh Nagar, Noida – 201301, Uttar Pradesh, India
Date of Birth/Age :	04.11.1915
Date of Appointment :	24.06.1988

KEY EXECUTIVES

Name :	P & G Associates
Designation :	Company Secretary
Address :	8 A / 38, WEA, Karol Bagh, New Delhi – 110005
Tel No. :	91-9810167436
Name :	Mr. I. P. S. Ahluwalia
Designation :	General Manager
Name :	Mr. Narendra K. Negi
Designation :	Marketing Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Sunil Kumar Ranotra	5191
Anil Prakash Ranotra	5211
Hans Raj Ranotra	5061
Ashwani Kumar Ranotra	2572
Jai Kaur Ranotra	560
Renu Ranotra	3800
Savita Ranotra	3750
Sushma Ranotra	1100
Bhim Sen	175
Shanta Razdan	160
Yogesh Kumar Sethi	100
Sandhya Khoat	250
Gurender Singh Ghai	200
Nawaljit Kaur	300
Nita Chadda	200
Prathit Ranotra	10
Arpit Ranotra	10
Anurag Ranotra	10
Vishakh Ranotra	10
Preeti Ranotra	10
Aditi Ranotra	10
Geeta Ranotra	10
Total	28700
Equity Share Breakup
Category	Percentage of Holding
Directors or relatives of directors	95.00
Other top fifty shareholders	5.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Coiled Springs of Tension, Compression and Torsion category.
Products :	Compression Springs Tension Springs Torsion Springs Wireforms
Imports :
Products :	Raw Materials
Countries :	Taiwan, Germany, Italy and Switzerland

GENERAL INFORMATION

Customers :	Sandhar Locking Devices Mindarika Private Limited Gabriel LG Electronics Wipro Samsung Panasonic
No. of Employees :	175
Bankers :	Corporation Bank Sector – 26, Noida Citibank N. A. Jeevan Vihar, 3 Sansad Marg, New Delhi – 110001, India

Banking Relations :	Satisfactory
Auditors :
Name :	V. K. Arora and Associates Chartered Accountants
Address :	245 A Sant Nagar, Main Road, East of Kailash, New Delhi – 110065, India
Memberships :	EEPC and NOIDA Manufacturers Association

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
40000	Equity Shares	Rs. 100/- each	Rs. 4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
28700	Equity Shares	Rs. 100/- each	Rs. 2.870 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		2.870	2.870
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		7.195	5.532
4] (Accumulated Losses)		0.000	0.000
NETWORTH		10.065	8.402
LOAN FUNDS
1] Secured Loans		13.966	10.780
2] Unsecured Loans		2.443	3.363
TOTAL BORROWING		16.409	14.143
DEFERRED TAX LIABILITIES		1.816	1.847
TOTAL		28.290	24.392
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.240	15.835
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.082	5.032
	Sundry Debtors	7.973	6.479
	Cash & Bank Balances	0.283	0.340
	Other Current Assets	0.000	0.000
	Loans & Advances	1.651	1.791
Total Current Assets		14.989	13.642
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	3.246	4.481
	Provisions	0.693	0.604
Total Current Liabilities		3.939	5.085
Net Current Assets		11.050	8.557
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		28.290	24.392

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006
Sales Turnover		34.989
Profit/(Loss) Before Tax		2.407
Provision for Taxation		0.744
Profit/(Loss) After Tax		1.663
Expenditures :
	Depreciation & Amortization	0.993
	Other Expenditure	31.589
Total Expenditure		32.582

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	4.75	NA
Net Profit Margin (PBT/Sales)	(%)	6.88	NA
Return on Total Assets (PBT/Total Assets}	(%)	7.47	NA
Return on Investment (ROI) (PBT/Networth)		0.24	NA
Debt Equity Ratio (Total Liability/Networth)		2.02	2.29
Current Ratio (Current Asset/Current Liability)		3.81	2.68

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

Name of the company	RANOSON SPRINGS PRIVATE LIMITED
Presented By	Corporation Bank, Sector – 26, Noida
1) Date and description of instrument creating the change	Agreement for Term Loan and Unattested Deed of Hypothecation of movable dated
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 1.600 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	Charge by way of first charge in favour of the Bank on Hypothecation of present and future entire fixed assets including EMG of the factory land and building to be constructed thereon with an estimated cost of Rs. 6.358 Millions and movable fixed assets consisting of plant and machinery etc such as spring end grinding machine, Shot Paning Machine, Heat Tecatment Oren etc and hypothecation of fixed assets and movable fixed assets etc to be purchased from time to time.
4) Gist of the terms and conditions and extent and operation of the charge.	The above is hypothecated to secured Term loan limit of Rs. 1.600 Million granted to the company. The term loan shall be repaid in 90 monthly with IRH of 6 months and repayable in 28 equal quarterly installment of Rs. 0.057 Million and last quarterly being Rs. 0.061 million. Interest shall be charged @ 12 % p.a. that is 1.50 % over and above the COBAR rate which is 10.50 % p.a. of present rising or falling therewith or at such other rates as may be specified by the Bank from time to time.
5) Name and Address and description of the person entitled to the charge.	Corporation Bank Sector – 26, Noida
6) Date and brief description of instrument modifying the charge	NA
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.	NA

This form is for	Creation of charge
Corporate identity number of the company	U74899DL1988PTC032220
Name of the company	RANOSON SPRINGS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	New Delhi – 110060, India
Particular of charge holder	Citibank N. A. Jeevan Vihar, 3 Sansad Marg, New Delhi – 110001, India vvlaxman@gmail.com
Nature of description of the instrument creating or modifying the charge	Term Loan Agreement
Date of instrument Creating the charge	20.06.2007
Amount secured by the charge	Rs. 4.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Terms of repayment Repayable on demand other terms governed by the agreement Margin Governed by the agreement Extent operation of the charge Extent and operation of charge
Short particulars of the property charged	First and exclusive charge on all present and future Plant and Machinery of the company

As Per Website

Subject was established in the year 1980 as a manufacturer, exporter and importer and wholesale supplier in the field of springs of 0.3 MM to 5 MM Diameter Wire and Flat Sections of Equivalent Sizes. Subject is a manufacturer of Coiled Springs of Tension, Compression and Torsion category. The company's rich experience of 20 years helped it to bag tremendous appreciation and accolade from various National and International clients.

Subject manufacture Wire Forms for any Engineering use. They can supply Wire Springs in Steel, Stainless Steel, Bronze, Aluminum - Plated/Unplated Type. They are capable of supplying 0.2 MM to 5 MM Diameters of Wire Springs. Their manufactured Coiled Springs of Tension, Compression and Torsion category are very much popular in National and International Markets.

They try to achieve nearly zero defect material for their clients. Their well-versed manufacturing unit is stuffed with the CNC Machines of latest techniques. Their Tool Room is capable of taking on global business of Wire Springs of 0.3 MM to 5 MM Diameters to the highest level. They supply their products to Automotive Sector, Lock Industries, Sprinklers, Engineering Industries, etc.

They have invested and maintained their infrastructure equivalent to the best in the world. The highest quality machines, raw materials and manufacturing processes are imported from world leaders. They use latest Technology and Machines imported from Taiwan, Germany, Italy and Switzerland to produce quality Wire Springs. These combined with the Intellect and expertise of indigenous manufacturing practices makes them at par with the best in the world.

They realise that in a fast paced and hectic world, there is a tremendous pressure for quality on their customers. They understand their place in the process from initial concept to the final product, and understand that to make the projects run smoothly, they must deliver quality Wire Springs.

They can meet customer's stringent requirement of quality and on-time delivery. To ensure superior quality of Wire Springs, they use various types of Quality Control Techniques and Machines, like Tensile Testing Machine, Load Testing Machines, Load Cells Profile Projector, Life Testing Equipment, Torsion Spring Machines etc.

They are looking forward to achieve their goal of becoming a Spring manufacturer of North India within 5 years, which is only possible by keeping the consistency in quality and reliability of the Wire Springs.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.39.57
UK Pound	1	Rs.81.01
Euro	1	Rs.56.35

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	6
--LEVERAGE	1~10	6
--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		48

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

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

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