MIRA INFORM REPORT

Report Date :

25.04.2008

IDENTIFICATION DETAILS

Name :	JLC ELECTROMET PRIVATE LIMITED
Formerly Known as :	JAIPUR LAMP COMPONENTS PRIVATE LIMITED
Registered Office :	Plot No. 153 A, Road No. 11 – H, Vishwakarma Industrial Area, Jaipur – 302012, Rajasthan
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	31.03.1984
Com. Reg. No.:	17 - 002959
CIN No.: [Company Identification No.]	U27017RJ1984PTC002959
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Ferrous and Non-ferrous Metals.

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 545172
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Trade relations are fair. Financial Position is good. Payments are usually correct and as per commitments. The Company can be considered good for normal business dealings at usual trade terms and conditions. Nothing adverse reported.

INFORMATION PARTED BY

Name :	Mr. Sunil Jain
Designation :	Accounts Manager

LOCATIONS

Registered Office / Factory :	Plot No. 153 A, Road No. 11 – H, Vishwakarma Industrial Area, Jaipur – 302012, Rajasthan, India
Tel. No.:	91-141-2330375, 2331215
Mobile No.:
Fax No.:	91-141-2330345
E-Mail :	jlc@jlcelectromet.com nkshrimal@yahoo.com vkiajai@bankofbaroda.com
Website :	http://www.jlcelectromet.com
Branches :	Located at: v New Delhi v Bangalore, Karnataka v Kolkata, West Bengal v Mumbai, Maharashtra
Overseas Office :	Seoul, Korea Taipei, Taiwan Chonburi, Thailand Tehran, Iran Cairo, Egypt Paris, France London, UK Lviy, Ukraine Moscow, Russia Istanbul, Turkey New Jersey, USA Pennsylvania, USA Rhode Island, USA Sao Paulo, Brazil Bogota, Colombia Eindhoven, Netherlands Paranaque City, Philippines

DIRECTORS

Name :	Mr. Kamal Singh Baid
Designation :	Director
Address :	A-19, Amba Bari, Jaipur – 302012, Rajasthan, India
Date of Birth/Age :	15.08.1947
Date of Appointment :	31.03.1984
Name :	Mrs. Ratna Baid
Designation :	Director
Address :	A-19, Amba Bari, Jaipur – 302012, Rajasthan, India
Date of Birth/Age :	30.08.1949
Date of Appointment :	27.09.1988
Name :	Mr. Naveen Baid
Designation :	Director
Address :	A-19, Amba Bari, Jaipur – 302012, Rajasthan, India
Date of Birth/Age :	26.01.1975
Date of Appointment :	30.09.1998
Name :	Mr. Sanjay Baid
Designation :	Director
Address :	A-18, Amba Bari, Jaipur – 302012, Rajasthan, India
Date of Appointment :	24.02.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2007

Names of Shareholders	No. of Shares
Mr. Kamal Singh Baid	130,300
Mrs. Ratna Baid	32,200
Mr. Naveen Baid	90,500
Mr. Ram Narain Gattani	2,000
Mrs. Chouth Devi Baid	2,000
Mrs. Chitra Baid	6,000
Mr. Kamal Singh Baid	500
Chitra Finance Private Limited	10,000
Mr. Kamal Singh Baid	500
Others	1,000
Total	275,000

Equity Share break-up (Percentage of Total Equity)

As on 31.03.2007

Sr. No.	Category	Percentage
1.	Bodies corporate (not mentioned above)	3.64
2.	Directors or relatives of directors	95.64
3.	Other top fifty (50) shareholders (other than listed above)	0.72
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Ferrous and Non-ferrous Metals.
Products :	v Nickel Alloys v Glass Sealing and Controlled Expansion Alloys v Welding Wires v Electrical Resistance / Heating Element Alloys v Nickel-Chrome-Iron Alloys v Dumet Wires v Lamp Components and Alloys v Nickel-Iron Soft Magnetic Alloys v Alloys for Resistors, Shunts and Rheostats v Spark Plug Alloys v Clad Wires v Thermocouple Compensating and Extension Grade
Terms :
Selling :	Cash / Credit (30 – 60 days)
Purchasing :	Cash / Credit (30 – 60 days)

GENERAL INFORMATION

Customers :	v Wholesalers v Retailers v End Users
No. of Employees :	about 150
Bankers :	v Bank of Baroda, V. K. Industrial Area, Jaipur - 302013, Rajasthan, India. v HDFC Bank
Facilities :	v Term Loan – Rs. 10.400 millions v Cash/Credit – Rs. 35.000 millions v BP/BD – Rs. 5.000 millions v LC & Land – Rs. 70.000 millions v Foreign L/C – Rs. 40.000 millions v Interest from Guarantee – Rs. 2.500 million v Total Rs. 162.900 millions

Banking Relations :	Satisfactory
Auditors :
Name :	N C Dhadda and Company, Chartered Accountants
Address :	Johari Bazar, Jaipur – 302003, Rajasthan, India.
Associates:	v Gem Electro Mechanicals Private Limited v Gem Clad Wires Private Limited v New Age Alloys Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
300,000	Equity Shares	Rs. 10/- Each	Rs. 3.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
275,000	Equity Shares	Rs. 10/- Each	Rs. 2.750 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		2.750	2.750	2.750
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		133.543	79.393	57.689
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		136.293	82.043	60.439
LOAN FUNDS
1] Secured Loans		60.521	81.329	66.196
2] Unsecured Loans		21.791	21.179	32.529
TOTAL BORROWING		82.312	102.508	98.725
DEFERRED TAX LIABILITIES		5.248	4.755	3.943
TOTAL		223.853	189.406	163.107
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		59.827	51.583	48.782
Capital work-in-progress		0.273	0.058	0.040
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	142.260	136.758	77.552
	Sundry Debtors	171.296	108.165	62.764
	Cash & Bank Balances	83.866	29.554	14.769
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	21.968	15.365	5.924
Total Current Assets		419.390	289.842	161.009
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	247.231	147.544	44.061
	Provisions	8.406	4.533	2.663
Total Current Liabilities		255.637	152.077	46.724
Net Current Assets		163.753	137.765	114.285
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		223.853	189.406	163.107

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		1157.454	750.113	551.884
Other Income		0.371	0.054	0.322
Total Income		1157.825	750.167	552.206
Profit/(Loss) Before Tax		78.041	33.253	22.114
Provision for Taxation		23.892	11.549	8.530
Profit/(Loss) After Tax		54.149	21.704	13.584
Earnings in Foreign Currency :
	Other Earnings	759.652	506.247	310.160
Total Earnings		759.652	506.247	310.160
Imports :
	Raw Materials	856.060	546.696	351.746
	Capital Goods	2.551	0.537	0.000
Total Imports		858.611	547.233	351.746
Expenditures :
	Financial Charges	26.321	21.988	17.837
	Depreciation & Amortization	5.663	5.156	4.431
	Other Expenditure	1047.800	689.770	507.824
Total Expenditure		1079.784	716.914	530.092

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	4.68	2.89	2.46
Net Profit Margin (PBT/Sales)	(%)	6.74	4.43	4.01
Return on Total Assets (PBT/Total Assets}	(%)	6.74	4.43	4.01
Return on Investment (ROI) (PBT/Networth)		0.57	0.41	0.37
Debt Equity Ratio (Total Liability/Networth)		1.87	1.85	0.77
Current Ratio (Current Asset/Current Liability)		1.64	1.91	3.45

LOCAL AGENCY FURTHER INFORMATION

Form 8

Name of the company

JLC ELECTROMET PRIVATE LIMITED

Presented By

Director of JLC Electromet Private Limited

1) Date and description of instrument creating the

change

13.08.1999 (Required on 21.09.1999)

Hypothecation Agreement memorandum of Entry for deposit of title deeds.

2) Amount secured by the charge/amount owing on

the securities of charge

Rs. 41.000 millions

Detailed as :

i. Cash Credit (Hypothecation of goods) Rs. 3.500 millions

ii. Cash Credit (pledge) Rs. 4.000 millions

iii. Bills Purchase / Discount – Rs. 11.500 millions

iv. L/C (Inland / Foreign) – Rs. 10.000 millions

v. Bank Guarantee – Rs. 10.000 millions

Total – Rs. 41.000 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

The whole of the borrower’s stock both present and future, all stock of Raw Material, Work in Process, semi finished goods and finished goods such as aluminum wires, resistance wires, strips, components, packing material and stores etc. whatsoever and wheresoever situated and /or in any transit whether now belonging to or that may at any time during the continuance of this security belonging to the borrower. All present and future book debts, outstanding monies, receivables, claims, bills, contracts, engagements etc. All Tangible movable plant and machinery, vehicles etc. of the borrower. Equitable Mortgage is created by deposit of title deeds in respect of land and building belonging to the company at E – 153 (A) and E – 154, (A), Road No. 11 – H, VKIA< Jaipur, Rajasthan, India.

4) Gist of the terms and conditions and extent and

operation of the charge.

Interest @ 4% above PLR with minimum of 16% p.a. payable quarterly + interest tax. Exchange / commission as per bank / IRA / Fedai rules.

Margin 25% on C/C Hypothecation of goods and pledges 10% on C/C Foreign inland; 15% on bank guarantee. Repayable on demand

5) Name and Address and description of the

person entitled to the charge.

Bank of Baroda

VKI Area, Jaipur

6) Date and brief description of instrument

modifying the charge

24.05.2005

Supplemental composite instrument of hypothecation of goods, book debts, movable Machinaries, vehicles.

Credit Facility Agreement

Supplemental Memorandum of Entry

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 amount of limit enhanced from Rs. 175.100 millions to Rs. 253.500 millions detailed as:

(Rs. in million)

	Existing	Enhanced
Fund Based
Term Loan I (old)	2.900	2.400
Term Loan II (old)	5.700	5.100
Term Loan III (old)	6.000	6.000
Cash Credit (Hypothecation of stock / book debts)	20.000	30.000
Export Packing Credit (in rupee or foreign currency)	15.000	30.000
Sub limit
FBP
Bill Purchase / Discount	--	(15.000)
(Inland /FBP/FBD)	5.000	(5.000)
Total Fund Based	54.600	73.500
Non Fund Based
Letter of Credit	120.000	180.000
Inland Bank Guarantee	0.500	0.000
Total	120.500	180.000
Total (FB + NFB)	175.100	253.500

Hypothecation on first charge basis entire current assets of the company viz, stock of raw material, stock in process, finished goods, consumable spares and packing material, all book debts present or future, all movable machinery including all stock and spare parts extended as security on first charge basis.

Equitable Mortgage created by the company on all its immovable property situated at E – 153, E – 153 (A) , E – 154, E – 154 (A), B – 142, Road No. 11 H and E – 862, 863, Road No. 14, VKI Area, Jaipur extended as security on enhanced limit.

Interest to be charged @ 0.5% below BPLR i.e. 10% p.a. with monthly rests in Cash Credit account and 3.5% above BPLR i.e. 11% p.a. with monthly rests in case of term loan account.

Margin – Stock 25%, Book Debts 25% and 25% on movable machinery and 10% in LC/FLC.

Other terms and conditions remain same.

Form 8

This form is for	Modification of charge
Whether charge is modified in favour of asset reconstruction company (ARC) of assignee	No
Charge Identification (ID) number of the charge to be modified	900669421
Corporation identity number (CIN) or foreign company registrations number of the company	U27017RJ1984PTC002959
Name of the company	JLC ELECTROMET PRIVATE LIMITED
Address	Plot No. 153 A, Road No. 11 – H, Vishwakarma Industrial Area, Jaipur – 302012, Rajasthan, India
Type of Charges	v Immovable property v Book Debts v Movable property (not being pledge)
Whether consortium finance is involved	No
Whether joint charge involved	No
Number of charge holder(s)	1
Particular of the charge holder	Name: Bank of Baroda Address: VKI Area Branch City : Jaipur State : Rajasthan ISO country code :IN Pin code: 302021 E-mail ID : vkiajai@bankofbaroda.com
Nature or description of the instrument creating or modifying the charge	1. Supplemental Composite Instrument of Hypothecation of Goods, Book Debts, Movable Machinery and Vehicles. 2. Supplemental Memorandum of Entry.
Date of the instrument creating charge	14.03.2007
Whether charge created or modified outside India	No
Amount Secure by the charge	Rs. 581.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	(a) Rate of Interest Interest @1% below BPLR with a minimum of 11.50% p.a. with monthly rests, subject to change from time to time. (b) Terms of repayment Repayable on demand (c) Margin Margin 25% on stocks, book debts and movable machinery. (d) Extent and operation of the charge The charge will operate as first charge.
Short particulars of the Property charged	1. First charge by way of hypothecation of all stock of raw material, semi finished goods and finished goods, Stock in process packing material, consumable goods, all present and future book debts, all present and future plant, machinery and current and fixed assets of the company. 2. Equitable mortgage extended on immovable property of the company comprising factory land and building situated at E – 153, E – 153 (A) , E – 154, E – 154 (A), B – 142, Road No. 11 H and E – 862, 863, Road No. 14, VKI Area, Jaipur
Whether any of the property or interest therein under reference is not registered in the name of the company	No
Particulars of the present modification	1. By this modification the existing working capital limit enhanced to Rs. 581.000 millions. 2. This is an addition of Term Loan I of Rs. 0.300 millions Term Loan II of Rs. 2.700 millions, Term Loan III of Rs. 1.000 millions, Term Loan IV of Rs. 15.000 millions. 3. Other terms and conditions remain unchanged.

History

Subject was incorporated on 31^st March 1984 at Jaipur in Rajasthan under the name and style of Jaipur Lamp Components Private Limited having Company Registration Number 2959.

The name of the company has been changed to the present.

Business

Subject is engaged in manufacturing of Nickel, Monel, Ferro-nickel Wires, Dumet Wires, Nickel Strip, Molydenum Support Wires, Nickel Alloy Wires, Components for Lamp and Electronic Industries.

Profile

Subject is an ISO 9002 company and is a recognized and an established organization in the field of speciality alloys. The organization dates back to its foundation 25 years ago. A young and ambitious engineer with a vision to contribute to the industrial and economic map of India started his venture for manufacturing Lead-in-Wires for electric lamps. Foresight, diligence, self-innovation and focus on Customer needs helped us flourish into a diversified company. The company are a well-recognized name in manufacturing of Nickel based alloys, Nickel-Chromium alloys, Nickel-Copper alloys, Nickel-Iron alloys and speciality ferrous and non-ferrous alloys. The company’s products cater to a wide spectrum of industries including Electric Lamp, Welding Rod, Thermocouple cable, Spark plug, Rechargeable Battery pack, Resistance and Heating, to name a few.

Infrastructure

The organisation boasts of a fully integrated manufacturing facility for development and production of speciality alloys in Jaipur. Over the years, the company has built up a commendable infrastructure and an investment in know-how, equipment and manpower. They at JLC believe that the biggest asset is skilled and highly trained manpower, dedicated to be 'THE BEST IN CLASS'

The company possess the infrastructure and know-how to cater to the diverse and specific needs of individual customer worldwide.

Quality Assurance / Research & Development

Subject is an ISO 9002 certified company. For ensuring the highest quality, the company installed stringent inspection procedures for incoming, in process and finished materials backed by sophisticated test systems.

New materials and technologies are being continuously developed at JLC so that the customers can make world-class products and compete globally. It has fully equipped in-house laboratories for testing chemical, mechanical, metallurgical and electro-magnetic properties; backed by an experienced team of dedicated engineers.

Manufacturing Process

• Nickel Alloys

• Glass Sealing and Controlled Expansion Alloys

• Welding Rod core wires

• Nickel-Chrome-Iron Alloys

• Dumet Wires

• Lamp Components and Alloys

• Nickel – Iron Soft Magnetic Alloys

• Alloys for Resistors, Shunts and Rheostats

• Spark Plug Alloys

• Clad Wires

• Thermocouple Compensating & Extension Grade

At company, start with the purest available raw materials to achieve the required chemical composition. A correct chemical composition is necessary to give uniform and required properties to different alloys. The alloys are melted. Hot-Rolled and Processed to final sizes using state-of-the-art technology.

The company believe in continious improvement; all processes are constantly monitored at each step using statistical process control tools to ensure the best quality of the final products. The process for making each alloy is set after a detailed exercise using concepts such as Failure Mode Effect Analysis (FEMA) and Design of Experiments (DOE)

• Melting

• Hot Rolling

• Acid Pickling

• Annealing

• Wire Drawing

· Cold Rolling / Slittings

• Quality Control

• Packing

The company can arrange for the best shipping mode to meet the customers scheduling requirements. Jaipur is well connected for International and Domestic Transportation enabling prompt and Just-in-Time supplies anywhere in the world.

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 :

The 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.

The 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. 40.34
UK Pound	1	Rs. 79.11
Euro	1	Rs. 63.44

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		56

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, they 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