MIRA INFORM REPORT

Report Date :

29.04.2008

IDENTIFICATION DETAILS

Name :	DTL ANCILLIARIES LIMITED
Registered Office :	DTL Plaaza, 19 Way Road, Off Ashok Marg, Lucknow, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	29.08.1996
Com. Reg. No.:	20-020585
CIN No.: [Company Identification No.]	U34102UP1996PLC020585
TAN No.: [Tax Deduction & Collection Account No.]	LKNM00339D
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacturer of Cold Roll Forming and Down Stream Production “DTL” – Roll Metal

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 79000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having satisfactory track. Trade relations are fair. Business is active. General financial position is satisfactory. Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. DTL Ancilliaries Limited and DTL Ancilliaries Pune works Limited are the same companies.

INFORMATION PARTED BY

Name :	Mr. J Vijay Mohan
Designation :	Managing Director
Contact No.:	91-9823069893
Date :	29.04.2008

LOCATIONS

Registered Office :	DTL Plaaza, 19 Way Road, Off Ashok Marg, Lucknow, Uttar Pradesh, India
Tel. No.:	91-522-2208485
Mobile No.:	91-9823069893
E-Mail :	dtlpune@hotmail.com vaibhavgupta_ca@yahoo.co.in
Area :	15600 Sq.fts
Location :	Owned
Head Office / Factory 1:	Gat No. 366 , Ambethan Road, Near WMDC Industrial Area, P O Chakan, Taluka Khed, Pune – 410 501, Maharashtra, India
Tel. No.:	91-2135-252771
Fax No.:	91-2135-252026
Area :	80000 Sq.fts
Location :	Owned
Factory 2:	Plot No. 43 W MDC Industrial Area, Chakan Pune -410 501, Maharashtra, India
Tel. No.:	91-2135-326989
Fax No.:	91-2135-252026
Area :	Owned
Location :	28000 Sq.fts

DIRECTORS

Name :	Mr. J Vijay Mohan
Designation :	Chairman and Managing Director
Address :	Plot no. 8, S No. 13, Kohinoor Plant , Near Spicer College, Aundh, Pune – 411 007, Maharashtra, India
Qualification :	BE (Mechanical )
Experience :	40 years
Date of Birth/Age :	25.12.1945
Date of Appointment :	29.08.1996
Name :	Mr. Sidharth Jain
Designation :	Director
Address :	Gate No. 366, Kharabwadi, Ambettan Road, Post Chakan, Pune – 410 501, Maharashtra, India
Qualification :	BE
Experience :	11 years
Date of Birth/Age :	28.07.1975
Date of Appointment :	29.08.1996
Name :	Mrs. Santosh V Jain
Designation :	Director
Address :	19, Way road, Lucknow 226001, Uttar Pradesh, India
Date of Birth/Age :	08.10.1948
Qualification :	BA
Date of Appointment :	29.08.1996

SHAREHOLDING PATTERN

Equity Shares Breakup (Percentage of Total Equity): (as on 31.03.2007):-

Sr No.	Category	Percentage
1	Bodies Corporate	47.51
2	Directors or relative of directors	52.49
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Cold Roll Forming and Down Stream Production “DTL” – Roll Metal
Terms :
Selling :	Cash, Credit (30-60 Days)
Purchasing :	Cash, Credit (30 – 90 days)

PRODUCTION STATUS (as on 31.03.2007):-

Particulars	Unit	Produced and Sold
		Qty
Bodies for Motor Vehicle	Nos	6914
M V Parts	Nos	216839
CRF Section	Nos	37678
TAD Pole	Nos	5282
Collecting Electrode	Kg	309183

NOTES:

Being Small scale unit, no formal documentation of installed capacity is available.

GENERAL INFORMATION

Customers :

OEM’s , Railways

No. of Employees :

290 (35 in Office, 250 in Factory, 5 in Branches)

Bankers :

· HDFC Bank Limited, Opposite Same Dairy Bhawarkar Road, Pune , Maharashtra, India

· SBI Factors and Commercial Services Private Limited, Pune , Maharashtra, India

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2007 (Rs. in millions)
SBI Factors	14.974
Limit sanctioned – Rs. 15.000 millions secured by accepted hundies of buyers for goods supplied and additionally secured by personal guarantee of all the Director
HDFC Car loan	0.255
Amount Sanctioned Secured by hypothecation of new vehicle purchased out of loan proceeds and additionally secured personal guarantee of all the Director
HDFC Funding Loan	24.999
Amount sanctioned – Rs. 25.000 millions Term Loans for working capital finance of company secured by receivables of the company and personal guarantee of Director
	40.228

UNSECURED LOANS	31.03.2007 (Rs. In millions )
Sales Tax Defferment Loan (package Scheme of Incentive by State Government of Maharashtra)	32.684
City Bank Business Loan	7.205
Total	39.889

Financial Institutions:

SBI Factors and Commercial Services Private Limited

Tara Chambers, 2^nd Floor, Mumbai – Pune Road, Wakdewadi, Pune – 411 003, Maharashtra, India

Facilities:

Channel funding Rs. 200.000 millions (HDFC Bank Limited )

Banking Relations :

Satisfactory

Auditors :

Name :

Gavaskar and Doshi Company

Chartered Accountants

Address :

6, Mrunmayee Society, 43/6, Erandwane, Nal Stop, Behind Bank Of India, Karve Road, Pune – 411 004, Maharashtra, India

Associates/Subsidiaries :

· DTL Ancilliaries Uttar Pradesh Limited, 19 Way Road, DTL Plaaza, Lucknow

Activity: Real Estate Management

· VM Jain (HUF)

· Roll Metal N Section

· Roll Metal Section (Division DTL UP Limited)

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs. 10/- each	Rs. 30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1390700	Equity Shares	Rs. 10/- each	Rs.13.907 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		13.907	13.907	13.907
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.753	1.327	0.000
4] (Accumulated Losses)		0.000	0.000	[2.343]
NETWORTH		19.660	15.234	11.564
LOAN FUNDS
1] Secured Loans		40.229	22.461	14.874
2] Unsecured Loans		39.889	32.684	32.684
TOTAL BORROWING		80.118	55.145	47.558
DEFERRED TAX LIABILITIES		1.705	1.551	0.000
TOTAL		101.483	71.930	59.122
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		27.084	25.802	26.266
Capital work-in-progress		1.919	0.000	0.000
INVESTMENT		8.634	2.243	4.495
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.742	23.301	14.981
	Sundry Debtors	33.427	20.334	7.812
	Cash & Bank Balances	0.685	0.423	6.277
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	33.075	25.928	18.670
Total Current Assets		108.929	69.986	47.740
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	43.935	25.028	19.225
	Provisions	1.412	1.073	0.154
Total Current Liabilities		45.347	26.101	19.379
Net Current Assets		63.582	43.885	28.361
MISCELLANEOUS EXPENSES		0.264	0.000	0.000
TOTAL		101.483	71.930	59.122

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		300.726	220.413	222.574
Other Income		1.542	1.712	0.385
Total Income		302.268	222.125	222.959
Profit/(Loss) Before Tax		6.193	5.885	1.677
Provision for Taxation		1.535	2.204	0.140
Profit/(Loss) After Tax		4.658	3.681	1.537
Expenditures :
	Cost of Goods Sold	234.993	178.726	NA
	Manufacturing Expenses	31.951	27.729	NA
	Administrative Expenses	9.144	7.606	NA
	Increase/(Decrease) in Finished Goods	4.934	[9.490]	[0.436]
	Salaries, Wages, Bonus, etc.	8.209	7.252	6.134
	Insurance Expenses	NA	NA	0.620
	Finance charges	3.518	1.151	NA
	Depreciation & Amortization	3.323	3.263	2.649
	Other Expenditure	NA	NA	67.174
Total Expenditure		296.072	216.237	76.141

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	1.54	1.66	0.68
Net Profit Margin (PBT/Sales)	(%)	2.05	2.67	0.75
Return on Total Assets (PBT/Total Assets}	(%)	4.23	6.00	2.140
Return on Investment (ROI) (PBT/Networth)		0.32	0.39	0.15
Debt Equity Ratio (Total Liability/Networth)		6.38	5.33	5.78
Current Ratio (Current Asset/Current Liability)		2.40	2.68	2.46

LOCAL AGENCY FURTHER INFORMATION

Operations and future prospects:

The company expects better utilization of load Body production capacity by:

Trying for higher share of business in M/s Tata Motors Limited. Having crossed 80% capacity utilization they are increasing capacity of LBS fabrication / painting by 60% over previously installed capacity, by additional Machinery and New Painting Line.

The company expects better utilization of CRF production capacity by following;

Company has supplied Tata ACE Load Body Panels to M/s Tata Motors Limited Pune as a single source throughout the year.

Increase in customer base like

· Thermax Limited

· Alstom Projects India Limited

· Force Motors Limited

· Piaggo Vehicles Baramati

Further develop CRF products applicable to Indian Railways and offer same in Corten / Stainless Steel in large volumes

Engage in stainless steel fabrication for railways and seek registration with RDSO.

Research development:

Self certification of quality status has been maintained by the company from M/s Tata Motors Limited as the management is continuously trying to develop practices and procedures to reduce the material and energy consumption at consistent level of quality.

Quality Systems :- ISO /TS -16949

The company has successfully implemented Quality systems and has undergone the surveillance audit successfully, duly certified by NQA QSR. Now going for TS 16949 Certification. Which is expected to be completed in First year 2007-08

Foreign Exchange Earning and Outgo:

Activities relating to export , initiative taken to increase export development of new markets for products and services and exports plans: their products are not directly exported but part of their production is forming a part of completely built units (i.e CBU) of LCV exported by M/s Telco Limited to various Asian and African countries.

Total Foreign exchange used : Rs. 0.453 millions from foreign Traveling by Director to attend Euroblech , Hannover Germany and visit EMARC company in / turin Italy for exploring possible co-operation.

TRADE REFERENCES

· Tata Motors Limited

· Ispat Industries Limited,

Mr. R B Singh GM (Marketing), HR Flats Products

· Piaggo Vehicles MIDC, Baramati ,

Mr. Ravi Bhaya, Director

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Tools and die

· Office Equipments

· Furnitures and fittings

· Vehicles

· Computers

· Electrical Installation

FORM 8:-

Name of the company	DTL ANCILLIARIES PUNE WORKS LIMITED
Presented By	DTL ANCILLIARIES PUNE WORKS LIMITED
1) Date and description of instrument creating the change	Agreement of hypothecation dated 01.09.2003
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 6.500 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	Hypothecated by way of first charge of clients book debts and receivables in respect of agreed customers.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest : Interest will be charged on outstanding in the accounts opened in respect at such rate as may be determined by the factor from time to time at the factor’s sole discretion on the basis of any internal credit rating accorded to the client or otherwise.
5) Name and Address and description of the person entitled to the charge.	SBI Factors and Commercial Services Private Limited Tara Chambers, 2^nd Floor, Mumbai – Pune Road, Wakdewadi, Pune – 411 003, Maharashtra, India
6) Date and brief description of instrument modifying the charge	Supplemental agreement of hypothecation Dated -30.07.2005
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.	Modification by way of increase in the factoring facilities from Rs. 6.500 millions to Rs. 12.500 millions.

Corporation identity number or foreign company registrations number of the company	U34102UP1996PLC020585
Name of the company	DTL ANCILLIARIES PUNE WORKS LIMITED
Address	19 Way Road, Lucknow, Uttar Pradesh, India
This Form is for	Creation of Charge
Type of Charges	· Book Debts · Movable Property · Floating Charge
Particular of the charge holder	HDFC Bank Limited Address: HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India Email: amitaa.gupta@hdfcbank.com CIN: L65920MH1994PLC080618
Nature or description of the instrument creating charge	Letter of Hypothecation of Stocks and book debts dated 14.08.2007
Date of the instrument creating charge	14.08.2007
Amount Secure by the charge	Rs. 25.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest : As per bank norms or as may be decided by the bank from time to time Terms of Repayment: On Demand Margin: As may be advised by the bank from time to time. Extent and operation of the charge: Exclusive first charge on the following: All the goods both present and future consisting of stocks, bonds, debentures, any other securities whatsoever being movables properties belonging to the borrower, both present and future. All the book debts , outstanding monies receivable claims, and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due to the borrowers in the course of the business both present.
Short particulars of the Property charged	Exclusive first charge on the following: All the goods both present and future consisting of stocks, bonds, debentures, any other securities whatsoever being movables properties belonging to the borrower, both present and future. All the book debts , outstanding monies receivable claims, and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due to the borrowers in the course of the business both present.

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.40.18
UK Pound	1	Rs.79.25
Euro	1	Rs.62.90

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