MIRA INFORM REPORT

Report Date :

23.08.2008

IDENTIFICATION DETAILS

Name :	ASSOCIATED TOOLINGS (INDIA) PRIVATE LIMITED
Registered Office :	Balitikuri, Kalitala, Howrah - 711402, West Bengal
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	04.10.1985
Com. Reg. No.:	21-39591
CIN No.: [Company Identification No.]	U31103WB1985PTC039591
TAN No.: [Tax Deduction & Collection Account No.]	CALA05915A
PAN No.: [Permanent Account No.]	AAECA7887N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Forged and Cast Carbon Steel, Alloy Steel and Stainless Steel Gate

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 100000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are fair. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions

LOCATIONS

Registered Office / Factory :	Balitikuri, Kalitala, Howrah - 711402, West Bengal, India
Tel. No.:	91-33-26530657 / 0488 / 7298
Fax No.:	91-33-26531361 / 26530657
E-Mail :	atipl@cal3.vsnl.net.in
Website :	www.atipl.com
Area :	12240 Sq.ft (including Factory and Warehouse)
Location :	Owned
Branch Office :	Located in Ghaziabad

DIRECTORS

Name :	Mr. Ratan Jyoti Bishnu
Designation :	Whole Time Director
Address :	Duilya Charaktala, Andul Mouri, Howrah – 711 302, West Bengal, India
Date of Birth/Age :	26.10.1947
Date of Appointment :	04.10.1985
Election Commission Identity Card No. :	WB / 24 / 169 / 396119
Name :	Mr. Arup Kanti Karmakar
Designation :	Whole Time Director
Address :	Thanamakua South, Daneshsaik Lane, Howrah - 711 109, West Bengal, India
Date of Birth/Age :	01.07.1947
Date of Appointment :	04.10.1985
Election Commission Identity Card No. :	WB / 24 / 165 / 669137
Name :	Mr. Harish Chandra Som
Designation :	Whole Time Director
Address :	45/5/9 Bholanath Nandy Lane, Santragachi, Howrah – 711 104, West Bengal, India
Date of Birth/Age :	06.12.1941
Date of Appointment :	15.03.1990
Election Commission Identity Card No. :	WB / 24 / 165 / 612222
Name :	Mrs. Manjushree Bishnu
Designation :	Whole Time Director
Address :	Duilya Charaktala, Andul Mouri, Howrah – 711 302, West Bengal, India
Date of Birth/Age :	26.10.1956
Date of Appointment :	04.10.1985
Election Commission Identity Card No. :	WB / 24 / 169 / 396376
Name :	Mrs. Pratima Karmakar
Designation :	Whole Time Director
Address :	Thanamakua South, Daneshsaik Lane, Howrah - 711 109, West Bengal, India
Date of Birth/Age :	18.08.1955
Date of Appointment :	04.10.1985
Election Commission Identity Card No. :	WB / 24 / 165 / 669128
Name :	Mr. Jyotirmoy Karmakar
Designation :	Director
Address :	45, Naskar Para, Sankrail, Howrah – 711 109, West Bengal, India
Date of Birth/Age :	18.03.1977
Date of Appointment :	24.11.2005

KEY EXECUTIVES

Name :	M/s. R N Goswami and Company
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 31.12.2006)

Names of Shareholders	No. of Shares
Ratan Jyoti Bishnu	13415
Manjushree Bishnu	5535
Arup Kanti Karmakar	13415
Pratima Karmakar	4885
Hirak Jyoti Bishnu	550
Deb Jyoti Bishnu	150
Harish Chandra Som	910
Udayan Karmakarkar	670
Jyotirmoy Karmakar	670
Total	40200

(As on 26.03.2007)

Names of Shareholders	No. of Shares
Ratan Jyoti Bishnu	13415
Manjushree Bishnu	5535
Arup Kanti Karmakar	13415
Pratima Karmakar	4885
Hirak Jyoti Bishnu	550
Deb Jyoti Bishnu	150
Harish Chandra Som	910
Udayan Karmakarkar	670
Jyotirmoy Karmakar	670
Total	40200

Equity shares Breakup (percentage of total equity)

(As on 30.09.2007)

Category	Percentage
Directors or relatives of Director	93.00
Other top fifty (50) shareholders	7.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Forged and Cast Carbon Steel, Alloy Steel and Stainless Steel Gate
Products :	· Forged and Cast Steel Gate · Globe · Cryogenic Valves
Imports :
Countries :	· Italy · United Kingdom
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :	Sadhu Forgings Limited
Customers :	Types of customers are Manufacturer and Government Bodies · Haldia Petrochemicals Limited · Indian Oil Corporation Limited (Panipat, Haldia, Barauni, Digboi, Mathura, Guwahati) · Numaligarh Refinery Limited · Kochi Refinery Limited · Mangalore Refinery and Petrochemicals Limited · Bongaigaon Refinery and Petrochemicals Limited · Indian Petrochemicals Corporation Limited (Vadodara, Gandhar, Nagothane) · Hisdustan Petrochemicals Corporation Limited · Visakh Refinery, Vishakhapattanam. · Bharat Pumps and Compressors Limited · Bharat Heavy Plate and Vessels Limited · National Thermal Power Corporation Limited · Rastriya Ispat Nigam Limited · Nuclear Power Corporation of India Limited · The Chief Inspector Boiler, West Bengal · Gujarat Narmada Valley Fertilizers Company Limited · Engineers India Limited · The Chief Inspector of Boilers, West Bengal · Mecon Limited · GAIL Limited
No. of Employees :	30
Bankers :	· Allahabad Bank 17 and 18 Netaji Subhas Road, Howrah Branch, Howrah – 711 101, West Bengal, India · Citi Bank · ABN Amro Bank · ICICI Bank · HDFC Bank

Banking Relations :	Satisfactory
Auditors :
Name :	B K Sen And Company Chartered Accountant
Address :	11, Old Poat Office Street, Ground Floor, Kolkata 700 001, West Bengal, India
Tel. No.:	91-33-22488557
Associates/Subsidiaries :	Associated Tools

CAPITAL STRUCTURE

(As on 30.09.2007)

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs.100/- each	Rs.15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
80400	Equity Shares	Rs.100/- each	Rs.8.040 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		8.040	4.020	4.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12.765	15.848	11.964
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		20.805	19.868	15.964
LOAN FUNDS
1] Secured Loans		17.592	9.704	4.540
2] Unsecured Loans		0.094	0.094	0.094
TOTAL BORROWING		17.686	9.798	4.634
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		38.491	29.666	20.598
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.623	9.741	4.154
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.534	8.985	8.168
	Sundry Debtors	23.776	19.051	20.564
	Cash & Bank Balances	2.649	1.732	1.953
	Other Current Assets	0.000	0.000	000
	Loans & Advances	4.338	3.809	3.316
Total Current Assets		44.297	33.577	34.001
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	18.509	11.389	14.655
	Provisions	2.920	2.263	2.902
Total Current Liabilities		21.429	13.652	17.557
Net Current Assets		22.868	19.925	16.444
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		38.491	29.666	20.598

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		73.059	70.863
Other Income		0.171	0.134
Total Income		73.230	70.997
Profit/(Loss) Before Tax		1.952	6.723
Provision for Taxation		0.657	2.263
Profit/(Loss) After Tax		1.295	4.460
Expenditures :
	Financial charges	2.364	1.079
	Raw Material and Purchases	59.519	51.970
	Indirect Expenses	11.659	10.587
	Increase/(Decrease) in Finished Goods	(4.549)	(0.818)
	Depreciation & Amortization	2.285	1.456
Total Expenditure		71.278	64.274

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	1.77	6.28	NA
Net Profit Margin (PBT/Sales)	(%)	2.67	9.49	NA
Return on Total Assets (PBT/Total Assets}	(%)	3.26	15.52	NA
Return on Investment (ROI) (PBT/Networth)		0.09	0.34	NA
Debt Equity Ratio (Total Liability/Networth)		1.88	1.18	1.39
Current Ratio (Current Asset/Current Liability)		2.07	2.46	1.94

LOCAL AGENCY FURTHER INFORMATION

Form No. 8

Corporate identity number of the company	U31103WB1985PTC039591
Name of the company	ASSOCIATED TOOLINGS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Balitikuri, Kalitala, Howrah - 711402, West Bengal, India
This form is for	Modification of charge
Type of charge	· Book debts · Movable property (not being pledge) · Others
Particular of charge holder	Allahabad Bank 17 and 18 Netaji Subhas Road, Howrah Branch, Howrah – 711 101, West Bengal, India
Nature of instrument creating charge	General Letter of Hypothecation applicable in case of limited liability companies. Sanction letter of the Bank.
Date of instrument Creating the charge	28.02.2008
Amount secured by the charge	Rs.65.306 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of Interest 13.25% per annum with monthly rests · Terms of repayment Term Loan : As per Existing Terms Cash Credit : On Demand · Margin 25% on stocks / book debts 20% in the form of FDR/DDP – For letter of credit and bank guarantee · Extent and operation of the charge The property shall stand hypothecated as first charge as continuing security minimum interest @ 13.25%
Particulars of the property charged	Primary Security : CC – Exclusive hypothecation charge over entire stocks and book debts and other current assets of the company both present and future (Rs.22.963 millions as on 31.01.2008 Term Loan – Exclusive Hypothecation of plant and machinery and other tools and implements financed by our bank valued Rs.15.623 millions as on 31.03.2007 Collateral Security : Hypothecation of P and M of associated tools valued Rs.10.275 millions as per valuation dated 15.03.2006 Etc.
Particulars of the present modification	LIC remain the same Bank guarantee increased from Rs.10.000 millions to 20.000 millions

Website details are attached herewith:-

Subject is a premier organisation manufacturing, exporting and supplying Forged and Cast Steel Gate, Globe, Check as well as Cryogenic Valves from India.

The company was formed in the year 1973 and since then it has passed several milestones to achieve its present status as a preferred supplier of high-quality Valves. Redefining precision engineering the company at present is  serving a host of satisfied industrial customers spread across India as well as overseas.

The strength of the Howrah (West Bengal) based company lies in its skilled workforce, which is capable to engineer products to match the customers specifications. The growing popularity of their products could be gauged from the rising sales volumes over recent times.

The company at present manufacture more than 5000 valves for assorted sizes. The company, an OEM service provider, aims at achieving the highest level of customer satisfaction through quality goods at highly competitive price.

The skills and expertise of key personnel like Mr A K KARMAKAR, Mr. R J BISHNU and Mr H C SOM has significantly the company to achieve its sales objective in various markets.

Quality Assurance and Testing Facilities

The company has expertise and resources to carryout the selection, manufacturing and testing these valves. The products are stringently tested on various parameters to determine maximum performance during harsh testing conditions. The company prepares Quality Assurance Plan against each order to monitor quality. All measuring and test equipments are covered by an approved calibrated system. Every component is thoroughly analysed prior to release as part of a new product.

1. An in-house Hydraulic Test Rig fitted with Air Hydro Power unit.

2. An in-house Cryogenic Test Laboratory with Helium Booster Compressor and Helium Gas Leak Detector.

Design and44 Development

The design office of Subject is equipped with CAD facilities. The Machine Shop of the company is equipped to manufacture superior quality Valves. Top-of-the-line machinery and toolings ensure the highest degree of precision of all Valve components. The company uses special machines like Transpilot for spindle machining, Tig Welding Machine, Stellite Welding and Jigs and fixtures.

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.43.38
UK Pound	1	Rs.81.34
Euro	1	Rs.64.55

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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