MIRA INFORM REPORT

Report Date :

05.09.2007

IDENTIFICATION DETAILS

Name :	VICTOR ELECTRODES LIMITED
Registered Office :	T1 / 113 -14, Mangolpuri Industrial Area, Phase 1, New Delhi 110 083
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	21.01.1986
Com. Reg. No.:	23137
CIN No.: [Company Identification No.]	U32204DL1986PLC023137
TAN No.: [Tax Deduction & Collection Account No.]	DELV04670B
PAN No.: [Permanent Account No.]	AAACV0667M
Legal Form :	Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Carbon of Graphite Electrodes

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 111684
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 :	T1 / 113 -14, Mangolpuri Industrial Area, Phase 1, New Delhi 110 083, India
Tel. No.:	91-11-27923253 / 27911553 / 279
Mobile No.:	91-9811208384
Fax No.:	91-11-27911553 / 27911554
E-Mail :	gireeshbhalla2000@yahoo.co.in victor@del2.vsnl.net.in

DIRECTORS

Name :	Mrs. Indu Kapoor
Designation :	Director
Address :	18 / 78, Punjabi Bagh (West), New Delhi 110 026, India
Date of Birth/Age :	14.07.1951
Date of Appointment :	10.06.1994
Name :	Mr. Dinesh Kapoor
Designation :	Director
Address :	18 / 78, Punjabi Bagh (West), New Delhi 110 026, India
Date of Birth/Age :	25.01.1977
Date of Appointment :	01.06.1994
Name :	Mrs. Suchitra Kapoor
Designation :	Director
Address :	18 / 78, Punjabi Bagh (West), New Delhi 110 026, India
Date of Birth/Age :	28.01.1979
Date of Appointment :	15.09.1998

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Confidence Leasing And Finance Limited	2000
Zee Courier Private Limited	1250
Shubham Construction Private Limited	11800
Megha Kapoor	25339
Aarti Seth	1000
Ajay Deep Seth	1000
Texo Steels Private Limited	3000
Archana Vermani	1500
K R Vermani	100
Broad Leasing And Finance Limted	5000
Dinesh Kaoor	44891
Indu Kapoor	39178
Seema	400
Gireesh Bhalla	7850
Suchitra Kapoor	21700
Deep Kiran Investments Private Limited	5000
Sanny Finlease Private Limited	9000
Victor Electrode (India) Private Limited	26000
Montarious Investments And Securities Private Limited	7500
Geetika Consultants Private Limited	7500
MAB Properties Private Limited	3000
Total	224908

Equity share breakup (percentage of total equity)

S. No.	Category	Percentage
1	Bodies corporate (not mentioned above)	18.34
2	Directors or relatives of directors	81.66
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Carbon of Graphite Electrodes
Products :	Ø Welding Electrode Ø Machinery Ø Equipment Ø Electrodes

GENERAL INFORMATION

Suppliers :

Ø Apolo Extrusions

Ø Arupri Industries

Ø Associated Mach Manufacturing Private Limited

Ø Bansal Industries (Delhi)

Ø Bansal Wire Industries (GBD)

Ø Bansal Wire Industries Limited

Ø Bimla Enterprise (Shilai)

Ø Gulati Acids And Chemicals

Ø Haryana Electrododes Corporation

Ø Imaje India Private Limited

Ø Indian Rare Earths Limited

Ø Jai Shakti Enterprises

Ø Jayesh Industries Limited

Ø Jlc Electromet Private Limited

Ø Kamman Corporation

Ø KEI Industries Limited

Ø Kiran Art Press

Ø Kuwer Industries Limited

Ø Lilikem Industries

Ø Master Marketing Associates

Ø Noble Alchemy Private Limited

Ø Noble Cholorochem Private Limited

Ø Panki Metachem Privae Limited

Ø Premier Industial Corporation

Ø Rahul Packers And Printers

Ø Royal Packers

Ø Sail (Bhila)

Ø Shrikarnipal Minerals And Chem.

Ø Star Alloys

Ø Steel Authority Of (India) Limited

Ø The TATA Authority Of (India) Limited

Ø The TATA Iron And Steel Company (FBD)

Ø U P Organics

Ø Venus Wire Industries Limited

Ø Vicas Trading Company

Customers :

Ø Advance Machinery Stores

Ø Ankur Agencies

Ø Bharat Welding Stores

Ø Electro Engineering Corporation

Ø Ghaziabad Mech Feb Private Limited

Ø Gupta Sales Corporation (Delhi\\0

Ø Highland Enterprise

Ø Intergral Coachi Factory (Chennai)

Ø J M D Welding Company Secretary Jagi Enternational

Ø Jai Ambe Traders

Ø Jainco Buildcon Private Limited

Ø Kailash HW Mill Stores

Ø Kanyaka Parmeshwari Enoo. Limited

Ø Kuma Rtraders

Ø Mintech Private Limited

Ø Nau Nidhi Enterprises

Ø P A R Heavy Duty Spares Center

Ø Fandey Furniture Privae Limited

Ø Paras Hardware

Ø Pluto Engineers

Ø R K Associates

Ø Rampur Engineering Company Limited

Ø Rohit Enterprises

Ø Rukamini Sales Corporation

Ø Scenario India

Ø Sharddha Enterprises (Baroda)

Ø Simit Consultancy And Services

Ø V N Enterprises

Ø V R K Traders

Ø Victor Electrodes (India) Private Limited

Ø Vekrant Techno Steel Private Limited

Ø Vishal Industrial Gases

Ø Zigma Sales

Ø Anu Enterprises

Ø B D Gupta And Company Private Limited

Ø B M Sales A/C

Ø Bimla Enterprises

Ø Comfort Enterprises

Ø Ganpati Sales Corporation

Ø Gold Traders

Ø Hari Om Traders Company

Bankers :

Punjab National Bank, Punjabi Bagh, New Delhi 110 026, India

Facilities :

SECURED LOAN (as on 31.03.2005)

	Amount in millions
Citi Bank A4A 359 6880186	0.147
ICICI Bank LADEL00002571843	0.842
ICICI Bank LUDEL00002054673	1.651
ICICI Bank Car Loan (Indica)	0.072
ICICI Bank LUDEL00002979743(M Car)	0.161
Kotak Mahindra Lprimus Limited	1.916
Punjab National Bank Book Debt A/C (CC 87-1676)	2.500
Punjab National Bank CC 87 1667	9.970

Banking Relations :	Satisfactory
Auditors :
Name :	Gireesh Bhalla and Company Chartered Accountants
Address :	M – 1, Ashok Centre, E – 4 /15, Jhandewalan Extension, New Delhi 110 05, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity shares	Rs. 10/- each	Rs. 25.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2399080	Equity shares	Rs. 10/- each	Rs. 23.990 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		23.990	22.490	20.591
2] Share Application Money		1.500	1.500	0.000
3] Reserves & Surplus		2.431	2.243	1.961
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		27.921	26.233	22.552
LOAN FUNDS
1] Secured Loans		30.851	17.260	9.771
2] Unsecured Loans		0.000	0.000	1.017
TOTAL BORROWING		30.851	17.260	10.788
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		58.772	43.493	33.340
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		19.236	13.463	11.179
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.529	0.529	0.529
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.649	25.444	23.484
	Sundry Debtors	17.250	15.931	9.511
	Cash & Bank Balances	2.083	1.784	0.861
	Other Current Assets	2.804	2.852	0.193
	Loans & Advances	7.894	4.176	1.448
Total Current Assets		57.680	50.187	35.497
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	17.869	20.193	13.868
	Provisions	0.804	0.493	0.000
Total Current Liabilities		18.673	20.686	13.868
Net Current Assets		39.007	29.501	21.629
MISCELLANEOUS EXPENSES		0.000	0.000	0.003
TOTAL		58.772	43.493	33.340

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		112.980	85.746	48.793
Other Income		0.328	0.337	0.110
Total Income		113.308	86.083	48.903
Profit/(Loss) Before Tax		1.401	1.310	0.710
Provision for Taxation		0.804	0.493	0.000
Profit/(Loss) After Tax		0.597	0.817	0.710
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses	0.000	0.000	9.183
	Employee Cost	0.000	0.000	3.343
	Raw Material Consumed	81.377	60.892	28.221
	Administration and other expenses	0.000	0.000	3.016
	Financial Charges	0.000	0.000	1.664
	Selling and distribution Expenses	0.000	0.000	1.010
	Salaries, Wages, Bonus, etc.	2.590	2.540	0.000
	Managerial Remuneration	1.440	0.960	0.000
	Payment to Auditors	0.020	0.020	0.000
	Interest	3.142	2.099	0.000
	Insurance Expenses	0.337	0.202	0.000
	Power & Fuel	4.954	4.219	0.000
	Depreciation & Amortization	2.110	2.332	1.756
	Other Expenditure	15.937	11.509	0.000
Total Expenditure		111.907	84.773	48.903

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	0.52	0.94	1.45
Net Profit Margin (PBT/Sales)	(%)	1.24	1.52	1.44
Return on Total Assets (PBT/Total Assets}	(%)	1.82	2.05	1.52
Return on Investment (ROI) (PBT/Networth)		0.05	0.04	0.03
Debt Equity Ratio (Total Liability/Networth)		1.77	1.44	1.09
Current Ratio (Current Asset/Current Liability)		3.08	2.42	2.55

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets:

Ø Furniture and fixture

Ø Plant and Machinery

Ø Office equipment

Ø Typewriter

Ø Are conditioner

Ø Cooler

Ø Fan

Ø Laboratory equipment

Ø Generator

Ø Computer

Ø Electric equipment

Ø Telephone equipment

Ø Scooter

Ø Factory land at rohad village

Ø Building

Ø Land and building

Corporation identity number or foreign company registrations number of the company	U32204DL1986PLC023137
Name of the company	VICTOR ELECTRODES LIMITED
Address	T1 / 113 -14, Mangolpuri Industrial Area, Phase 1, New Delhi 110 083, India
This Form is for	Modification of charge
Type of Charges	Immovable property, Book Debts, Movable property (not being pledge), current assets and agreement of guarantee)
Particular of the charge holder	Punjab National Bank, Punjabi Bagh, New Delhi 110 026, India ronorthdelihi@pnb.co.in
Nature or description of the instrument creating charge	Agreement of guarantee and letter of continuity given by Victor Electodes (India) Private Limited, Agreement for hypothecation of Goods and book debts to secure cash credit facility, agreement for hypothecation of current assets agreement of counter indemnity, deeds of hypothecation to secure LC on DA basis. Agreement for Hypothecation of assets to secure term loan and agreement for hypothecation of moveable assets forming part of fixed / block assets to secure the enhanced working capital limits and term loan
Date of the instrument creating charge	14.03.2007
Amount Secure by the charge	Rs. 52.400 millions
Brief of the principal terms and conditions and extent and operation of the charge	a) Rate of Interest: Term loan – BPLR + 2% i. e. 14.75% p. a. CC(H) stocks book debts – BPLR + 25 p. a. 14.25% p. a. Letter of credit (DA/DP foreign) commission as per bank’s instructions issued from time to time Letter of guarantee commission as per banks schedule of charges b) Terms of Repayment: Term loan of Rs. 5.800 millions repayment in 58 EMI of Rs. 0.100 millions starting from April 2007 CC (H) limit of Rs. 36.000 millions with sub limit of CC (Book Debts) of Rs. 7.500 millions letter of credit of Rs. 4.000 millions and letter of guarantee of Rs. 5.000 millions with overall ceiling of non fund based limits is Rs. 8.000 millions shall be subject to renewal after one year c) Margin: Term loan 25% CC(H) stoks book debts 25% in case of stock and 35% in case of book debts Letter of guarantee 25% in shape of FDR d) Extent and operation of the charge The agreement shall operate as a continuing security for balance or balances due to the bank and all other monies due by the borrower
Particulars of the Property charged	Extension of equitable mortgage of factory land and building situated at T-1/113, Mangolpuri industrial area phase 1, New Delhi owned by the company and extension of equitable mortgage of land and building situated at T-1/114, Mangolpuri industrial area, Phase1 New Delhi, owned by Victor Electrodes (India) Private limited which has given corporate guarantee to secure various credit facilities sanctioned to the company

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.40.85
UK Pound	1	Rs.82.54
Euro	1	Rs.55.76

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	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	YES
--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.	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