MIRA INFORM REPORT

Report Date :

06.08.2008

IDENTIFICATION DETAILS

Name :	CHETAN CABLETRONICS PRIVATE LIMITED
Registered Office :	45, First Floor Angoori Bagh, Near Hanuman Mandir, Jamuna Bazar, Delhi 110 006
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	18.04.2002
Com. Reg. No.:	55 - 115030
CIN No.: [Company Identification No.]	U30007DL2002PTC115030
TAN No.: [Tax Deduction & Collection Account No.]	DELC05299A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Cables, Wires and Sleeves.

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 58530
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company, The company has improved its performance in 2006-07 and has been successful in wiping-off all its previous losses. Trade relations are fair. Business is active. Payments are reported as usually made as per commitments. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office :	45, First Floor Angoori Bagh, Near Hanuman Mandir, Jamuna Bazar, Delhi 110 006, India
Mobile No.:	91-9350236721 / 91-9351312574 / 91-9341235542
E-Mail :	chetan_cabletronics@hotmail.com
Website :	www.chetabcabletronics.com
Area :	8000 Sq. mtr.
Location :	Leased
Head Office :	Delhi, India
Area :	1000 Sq. ft.
Location :	Rented
Corporate Office :	E – 445 and 446, Chopanki Industrial Area, Alwar 301 707, Rajasthan, India
Tel. No.:	91-1493-513109 / 516789
Fax No.:	91-1493-512200
Area :	400 Sq. ft
Location :	Owned

DIRECTORS

Name :	Mr. Naresh Goyal
Designation :	Director
Address :	WW – 70, Ground Floor, Malibu Town, Sohna Road, Gurgaon – 122 001, Haryana, India
Date of Birth/Age :	09.09.1965
Qualification :	Graduate
Date of Appointment :	18.04.2002
Name :	Mr. Rakesh Goyal
Designation :	Director
Address :	OW – 12, Malibu Town, Sohna Road, Gurgaon – 122 001, Haryana, India
Date of Birth/Age :	19.05.1970
Qualification :	Graduate
Date of Appointment :	18.04.2002
Name :	Mr. Naveen Gupta
Designation :	Director
Address :	1182, Narain Bhawan, Arjunnagar, Kotla, New Delhi – 110 003, India
Date of Birth/Age :	01.01.1973
Date of Appointment :	18.04.2002

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

08.04.2002

Names of Shareholders	No. of Shares
Mr. Naresh Goyal	4000
Mr. Rakesh Goyal	3000
Mr. Naveen Gupta	3000

Equity share breakup (Percentage of total equity)

As on 31.03.2007

Sr. No.	Category	Percentage
1.	Bodies corporate (not mentioned above)	6.54
2.	Directors or relatives of directors	62.18
3.	Other top fifty (50) shareholders (other than listed above)	31.28
	Total	100.00

LIST OF ALLOTTEES

Names of Allottees	No. of Shares
Mrs. Nutan Shrivastava	80000
Mrs. Premvada Chaudhary	80000
Total	160000

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Cables, Wires and Sleeves.

Products :

Cables and Wires	Sleeves
Flexible Wires and Hookup Wires	Glass Fiber Sleeving (Class B)
Double Flexible and Twin Parallers	Silicon Rubber Tubing
OB Van Cables	PVC Not Heat-Shrinkable Tubing
Snake Cables	Silicon Rubber Tubing Reinforced with Glass Fiber
Audio Video and CATV, CCTV Cables	PE Heat Shrinkable Tubing
Snake Cables	Cotton Sleeving
Ribbon Cable	Glass Fiber Sleeving (Class F)
Multicore Round Cable	PTFE Tubing
Multicore Shielded Cables
Earth Wires
Panel Accessories

Telecom Industry

v RF Cable Assembles

v Mobile Phone PC Data Cables

v Telecom Aerial Cables

v Networking Cables

v CAT 6 – Cable – CAT 5E Cables

v Phone Cords

Automobile Industry

v Automobile Wire

v Power Cords

v Jumper Cables

v Automotive Battery Terminals

Exports :

Products :

v Cables, Wires and Sleeves

Countries :

v Dubai

Imports :

Products :

v Machines

Countries :

v China

Terms :

Selling :

Credit (60 days)

Purchasing :

Credit (60 days)

GENERAL INFORMATION

Customers :	v Wholesalers v Retailers v OEM’s
No. of Employees :	Total : 90 (Office : 10, Works : 80)
Bankers :	v ING Vysya Bank 1893, Chandni Chowk Branch, Opp./ Daribakalan, New Delhi – 110 006, India
Facilities :	The total limit has been modified to Rs. 71.000 millions as follows, CC – Rs. 50.000 millions (Enhanced from Rs. 35.000 millions) ILC discounting Rs. 18.000 millions has been made submit of CC, and existing submit ILC of Rs. 7.500 millions continuing). TL I (Outstanding) – Rs. 4.500 millions TL II (Outstanding) – Rs. 1.000 million TL III (Fresh) – Rs. 15.500 millions The hypothecation and EM of the property of the company extended to the enhanced limit. All other terms and conditions remain same.

Banking Relations :	Satisfactory
Auditors :
Name :	Shiv Saroj and Associates Chartered Accountants
Address :	414, Arunachal Building, 19, Barakhamba Road, Connaught Place, New Delhi – 110 001, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity shares	Rs. 10/- each	Rs. 20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1070000	Equity shares	Rs. 10/- each	Rs. 10.700 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		10.700	10.700	9.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.006	0.000	0.000
4] (Accumulated Losses)		0.000	(1.329)	(1.694)
NETWORTH		11.706	9.371	7.406
LOAN FUNDS
1] Secured Loans		43.800	23.068	20.275
2] Unsecured Loans		13.885	8.235	4.176
TOTAL BORROWING		57.685	31.303	24.451
DEFERRED TAX LIABILITIES		0.730	0.000	0.000
TOTAL		70.121	40.674	31.857
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		24.996	21.308	18.732
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.332
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.876	11.153	0.000
	Sundry Debtors	41.931	21.884	9.439
	Cash & Bank Balances	0.407	2.838	0.032
	Other Current Assets	0.000	0.044	6.335
	Loans & Advances	1.863	1.862	0.596
Total Current Assets		60.077	37.781	16.402
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	14.797	18.406	3.694
	Provisions	0.154	0.054	0.000
Total Current Liabilities		14.951	18.460	3.694
Net Current Assets		45.126	19.321	12.708
MISCELLANEOUS EXPENSES		0.000	0.042	0.085
TOTAL		70.121	40.674	31.857

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005
Sales Turnover		79.446	51.311
Other Income		3.072	2.100
Total Income		82.518	49.211
Profit/(Loss) Before Tax		0.883	0.594
Provision for Taxation		0.519	0.242
Profit/(Loss) After Tax		0.364	0.352
Expenditures :
	Cost of Goods Sold	71.063	40.722
	Personnel Expenses	2.174	1.578
	Administrative Expenses	1.076	0.772
	Selling Expenses	0.489	0.355
	Financial Charges	4.260	2.978
	Preliminary Expenses	0.043	0.043
	Short and Excess amount	0.000	0.000
	Depreciation & Amortization	2.529	2.169
Total Expenditure		81.635	48.617

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	--	0.44	0.71
Net Profit Margin (PBT/Sales)	(%)	--	1.11	1.16
Return on Total Assets (PBT/Total Assets}	(%)	--	1.07	1.21
Return on Investment (ROI) (PBT/Networth)		--	0.09	0.08
Debt Equity Ratio (Total Liability/Networth)		1.28	1.97	0.50
Current Ratio (Current Asset/Current Liability)		4.02	2.05	4.44

LOCAL AGENCY FURTHER INFORMATION

Note:

The Registered Office of the company has been shifted from New Kotwali, Daryaganj, New Delhi – 11002, India to 45, First Floor Angoori Bagh, Near Hanuman Mandir, Jamuna Bazar, Delhi 110 006, India with effect from 16.06.2003

Trade References

v Sigma Punch – Chandigarh

v Girish Radio Corporation – Delhi

v Krupa Telecom – Bangalore

Form 8

Name of the company	CHETAN CABLETRONICS PRIVATE LIMITED
Presented By	ING Vysya Bank Limited
1) Date and description of instrument creating the change	Letter of deposit of title deeds dt. 10.01.2006
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 40.500 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	Equitable mortgage by deposit of title deeds of property all That pieces and parcel of lease hold Industrial plot of land bearing no. E – 445/ 446 situated in the Industrial Area of Chopanki, Dist. Alwar, Rajasthan together with super structure constructed thereon measuring 8000 Sq. mtr.
4) Gist of the terms and conditions and extent and operation of the charge.	1^st charge on above property is to secure the following credit facilities sanctioned to the company: Cash credit limit Rs. 12.500 millions LC with DA – 30 days of Rs. 17.500 millions Term Loan of Rs. 10.500 millions aggregating to Rs. 40.500 millions Interest / Other terms are applicable as per loan agreements.
5) Name and Address and description of the person entitled to the charge.	ING Vysya Bank Limited Chandani Chowk, New Delhi – 110 006, India

Form 8

This form is for	Modification of charge
Charge Identification (ID) number of the charge to be modified	80011070
Corporation identity number (CIN) or foreign company registrations number of the company	U30007DL2002PTC115030
Name of the company	CHETAN CABLETRONICS PRIVATE LIMITED
Address	45, First Floor Angoori Bagh, Near Hanuman Mandir, Jamuna Bazar, Delhi 110 006, India
Type of Charges	v Immovable property v Book debts v Movable property (not being pledge) v Floating charge
Particular of the charge holder	Name: ING Vysya Bank Limited Address: 1893, Chandani Chowk, Opp. Darinakalan City : Delhi ISO country code: IN Pin code: 110006 e-mail ID: capudel@ingvysyabank.com
Nature or description of the instrument creating or modifying the charge	General hypothecation agreement Letter of continuity
Date of the instrument creating charge	28.04.2008
Whether charge created or modified outside India	No
Amount Secure by the charge	Rs. 71.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest CC: IVRR – 2.50% TL I to III: IVRR – 2.25% ILC discounting (Sub limit of CC) : IVRR – 4.50% ILC (Sub limit): Commission as per Banks Guidelines. Terms of repayment CC: On demand TL I: Repayable in 21 monthly installments of Rs. 0.219 million TL II: Repayable in 9 monthly installments of Rs. 0.119 million TL III : Repayable in 54 monthly installments of Rs. 0.288 million ILC discounting and inland LC (Sub limit of CC) : On demand Margin CC: 25% on stocks and 30% on book debts TL III: 40% ILC discounting (Sub limit of CC): 15% in the form of fixed deposit. Extent and operation of the charge 1^st charge on all kinds of cables, copper metal of the company stored and to be stored at company premises or anywhere else from time to time. All machineries which are installed and to be installed from time to time. The book debts of the company both present and future. The immovable property of the company.
Short particulars of the Property charged	All kinds of cables, copper metal and all machineries of the company at E – 445/446, Chopanki Industrial Area, Near Bhiwandi, P O Tapukara, Disty. Alwar, Rajasthan or any where else from time to time. Entire book debts of the company both present and future. The property bearing No. E – 445/446, Chopanki Industrial Area, Near Bhiwandi, P O Tapukara, Disty. Alwar, Rajasthan with super structure constructed there on bounded by North: Plot No. E – 444, East: 234 M Wide Road and West : Plot No. A – 455, measurting 8000 Sq. mts.
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	The total limit has been modified to Rs. 71.000 millions as follows, CC – Rs. 50.000 millions (Enhanced from Rs. 35.000 millions) ILC discounting Rs. 18.000 millions has been made submit of CC, and existing submit ILC of Rs. 7.500 millions continuing). TL I (Outstanding) – Rs. 4.500 millions TL II (Outstanding) – Rs. 1.000 million TL III (Fresh) – Rs. 15.500 millions The hypothecation and EM of the property of the company extended to the enhanced limit. All other terms and conditions remain same.

As Per Website Details

Electronic wires and cables are responsible for ensuring the smooth flow of current in all the commercial and household operations. Subject is a well known manufacturer and exporter of high quality wires and cables. The premier business house has carved a niche for itself in today's competitive market by offering higher grade electronic wires, cables, connectors, sleeves and panel accessories. Strict commitment towards product improvement and innovation has generated their strong repute amongst the clients in a very short span of time. Their unmatched quality, client oriented approaches and reasonable prices have provided them an additional edge over other players in their business domain.

As an ISO 9001:2000and ISO 14001:1996 certified company, they are professionally managed by a group of highly experienced professionals at every level of their operations. Their quality levels are at par with the international standards. They are regularly supplying their products to the huge clientele spread at every corner of the globe. They can provide ISI marked cables and also their products are manufactured as per international quality.

Infrastructure

They are the perfect blend of man and machine - the total operating system to manufacture a range of world class wires and cables for their quality savvy clients. Every step is executed by employing the latest standardized machines manned by a team of well trained professionals. They also have an advance laboratory to conduct various tests and also to carry out research and development related activities.

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 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. 42.00
UK Pound	1	Rs. 82.14
Euro	1	Rs. 65.09

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