MIRA INFORM REPORT

Report Date :

02.12.2008

IDENTIFICATION DETAILS

Name :	CONNECT INTERNATIONAL PRIVATE LIMITED
Registered Office :	130, Double Storey, New Rajinder Nagar, New Delhi -110 060
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	23.05.1996
Com. Reg. No.:	55-79152
CIN No.: [Company Identification No.]	U26933DL1996PTC079152
TAN No.: [Tax Deduction & Collection Account No.]	DELC05940E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporter of Building Hardwares, Sanitary Fittings, Decorative Fitting and Importer of Ferrous and Non-Ferrous Metals.

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 490000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is well established company having satisfactory track. Directors are reported as experienced, respectable and resourceful businessmen. 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 :	130, Double Storey, New Rajinder Nagar, New Delhi- 110 060, India
Tel. No.:	91-11-25753200/ 25352026/25351461
E-Mail :	cipl@satyam.net.in info@ciplonline.com rajiv_vajpai2003@yahoo.co.in kcguptafca@yahoo.co.in
Website :	www.ciplonline.com
Head Office :	B-5, Sector 81, Phase 2, Noida- 201 301, Uttar Pradesh, India
Tel. No.:	91-120-2567155/ 2567156/57/ 2563112/3042030
Fax No.:	91-120-2568611
E-Mail :	cipl@satyam.net.in
Area :	64560 sq. fts.
Location :	Owned
Factory 1 :	B-5 and B-12, Sector 81, Phase II, Noida, Uttar Pradesh, India
Factory 2 :	Navada Industrial Area, New Delhi, India

DIRECTORS

Name :	Mrs. Kashmiri Lal Mehra
Designation :	Chairman and Managing Director
Age	76 years
Address :	130, Double Storey, New Rajinder Nagar, New Delhi- 110 060, India
Qualification :	F.C.S.
Experience :	53 Years
Date of Appointment :	23.05.1996
Name :	Mr. Anil Mehra
Designation :	Director
Date of Birth/Age :	26.07.1961 / 44 years
Address :	130, Double Storey, New Rajinder Nagar, New Delhi- 110 060, India
Qualification :	B. Com (Hon)
Experience :	25 Years
Date of Appointment :	23.05.1996
Name :	Mr. Deepak Mehra
Designation :	Director
Date of Birth/Age :	27.08.1965 / 41 years
Address :	130, Double Storey, New Rajinder Nagar, New Delhi- 110 060, India
Qualification :	B. E.
Experience :	16 Years
Date of Appointment :	23.05.1996
Name :	Mr. Jean Lovis Schutt
Designation :	Director (Foreign)
Age	50 years
Address :	468,F- 6114, Eschau, France
Qualification :	B. Tech
Experience :	28 years
Date of Appointment :	23.05.1996

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Sham Lal Mehra	706
Mrs. Kashmiri Lal Mehra	256516
Mrs. Kastura Mehra	254528
Mr. Anil Mehra	241618
Mrs. Priti Mehra	200100
Mr. Deepak Mehra	246835
Mrs. Shikha Mehra	100
Grande Forge Management	1315396
Master Tushar Mehra U/G of Mr. Deepak Mehra	185000

AS ON 30.09.2007:-

Equity Share Breakup		Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]		49.00
Directors or relatives of directors		51.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and Exporter of Building Hardwares, Sanitary Fittings, Decorative Fitting and Importer of Ferrous and Non-Ferrous Metals.
Products :	Builders Hardware Sanitary fitting products Decorative fitting products Ferrous and Non-Ferrous Metals
Exports :
Countries :	France, UK, Australia, Denamark, Spain, Germany, China, UAE, Korea, Europe, USA, Srilanka, Bangladesh, Thailand
Imports :
Countries :	China, France, Germany, UAE
Terms :
Selling :	L/C, Cash and Credit upto 30 days or at sight basis
Purchasing :	L/C and Credit at sight basis

PRODUCTION STATUS (As on 31.03.2007):-

Particulars	Actual Production
Hardware Goods	1894775

GENERAL INFORMATION

Customers :

Wholesalers, End Users and OEM’s

No. of Employees :

198 – office 50 and Factory 148

Bankers :

· Bank of Punjab Limited, L-40, Connaught Place, New Delhi, India

· Punjab National Bank, Barakhamba Road, New Delhi- 110 001, India

· HDFC Bank Limited, L-40, Connaught Circus, New Delhi -110 001, India

· Centurion Bank of Punjab Limited, L -40, Connaught Circus, New Delhi – 110 001, India

Facilities :

Bank of Punjab Limited

Cash Credit limit : Rs. 85.000 million

Punjab National Bank

The company enjoy Loan facility of Rs. 20.000 million and Rs. 22.500 million from its bankers

Secured Loans	31.03.2007 (Rs. In Millions)
From Banks
Term Loan	9.603
Working Capital Facilities	64.159
Other Secured Loans	1.969
Total	75.731

Note:

· Term Loan from Bank of Punjab Limited is secured by way of hypothecation of equipment / machinery. However, the company is yet to registered charge with the registrar of Companies, New Delhi.

· Working capital Facilities from Bank of Punjab Limited are secured by way hypothecation of stock of raw material finished goods, semi finished goods, consumables and goods in transit.

· Fund based and non–fund based facilities are further secured of equitable mortgage of freehold factory land and building at Village Navada, Khasra No. 655, Nawada Industrial Area, Najafgarh Road, New Delhi and equitable mortgage of lease hold factory land and building at B -5 and B -12, Sector 81, phase II, Noida. However, the company is yet to registered charge with the Registrar of companies, New Delhi.

· Others secured loans are secured by way hypothecation of respective assets.

Unsecured Loans	31.03.2007 (Rs. In Millions)
Loan From Foreign Company
Grande Forge Management	7.165
Total	7.165

Banking Relations :

Satisfactory

Auditors :

Name :

P. C. Bindal and Company

(Mr. K C Gupta )

Chartered Accountants

Address :

101, Sita Ram Mansion, 718/21, Joshi Road, Karol Bagh, New Delhi- 110 055, India

Tel. No.:

91-11-23549822/23

Associates/Subsidiaries :

Connect Architectural Product (P) Limited

134, Sector- 80 Phase-II Noida,

Line of Business : Stairacase Railing System

CIN of the Company: U28998DL2004PTC125066

CAPITAL STRUCTURE

AS ON 30.09.2007

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
2700799	Equity Shares	Rs. 10/- Each	Rs. 27.008 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		27.008	27.008	27.008
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		69.123	65.294	59.600
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		96.131	92.302	86.608
LOAN FUNDS
1] Secured Loans		75.731	76.567	60.069
2] Unsecured Loans		7.165	8.220	8.574
TOTAL BORROWING		82.896	84.787	68.643
DEFERRED TAX LIABILITIES		8.443	7.423	6.154
TOTAL		187.470	184.512	161.405
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		90.597	82.157	74.745
Capital work-in-progress		1.330	5.715	2.712
INVESTMENT		4.600	2.500	0.900
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	50.293	46.538	38.308
	Sundry Debtors	32.836	36.105	29.837
	Cash & Bank Balances	11.501	10.857	10.813
	Other Current Assets	0.899	0.871	0.766
	Loans & Advances	18.199	17.842	17.969
Total Current Assets		113.728	112.213	97.693
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	17.123	14.069	13.314
	Provisions	5.662	4.417	2.167
Total Current Liabilities		22.785	18.486	15.481
Net Current Assets		90.943	93.727	82.212
MISCELLANEOUS EXPENSES		0.000	0.413	0.836
TOTAL		187.470	184.512	161.405

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		186.651	184.626	178.330
Other Income		0.000	0.000	0.000
Total Income		186.651	184.626	178.330
Profit/(Loss) Before Tax		9.560	9.188	11.103
Provision for Taxation		4.192	3.494	3.605
Profit/(Loss) After Tax		5.368	5.694	7.498
Import Value		2.014	8.673	NA
Export Value		178.632	177.893	NA
Expenditures :
	Depreciation & Amortization	4.732	4.380	3.744
	Other Expenditure	172.359	171.058	163.483
Total Expenditure		177.091	175.438	167.227

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.88	3.08	4.20
Net Profit Margin (PBT/Sales)	(%)	5.12	4.98	6.23
Return on Total Assets (PBT/Total Assets}	(%)	4.55	4.54	6.31
Return on Investment (ROI) (PBT/Networth)		0.10	0.10	0.13
Debt Equity Ratio (Total Liability/Networth)		1.09	1.12	0.97
Current Ratio (Current Asset/Current Liability)		4.99	6.07	6.31

LOCAL AGENCY FURTHER INFORMATION

TRADE References:-

1. Ansal Construction Company
2. DLF Construction
3. Continental Construction Company Limited
4. Schutt Grande Forge, Route, Departmentale, 468, F-6114, France

FIXED ASSETS:-

· Land

· Factory Building

· Plant and Machinery

· Furniture and Fixtures

· Electrical and Office Equipments

· Computer

· Car

· Air Conditioner

· Motor Cycle

· Tools, Jigs and Dies

· Forklift (Battery Opt)

FORM 8:-

Corporate identity number of the company

U26933DL1996PTC079152

Name of the company

CONNECT INTERNATIONAL PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

130, Double Storey, New Rajinder Nagar, New Delhi- 110 060, India

This form is for

Modification of Charge

Type of charge

Others

Particular of charge holder

Centurion Bank of Punjab Limited, L -40, Connaught Circus, New Delhi – 110 001, India

E-MaiL: virendradel@yahoo.com

Nature of instrument creating charge

Deed of guarantee

Date of instrument Creating the charge

22.05.2007

Amount secured by the charge

Rs.25.000 millions

Brief of the principal terms an conditions and extent and operation of the charge

Extent and Operation of the charge

100 %

Others:

The said charge is to secure following credit facilities granted by bank to connect Architectural Products Private Limited :-

Particulars	Rs. In Millions
Cash Credit	15.000
Bank Guarantee	10.000
Total	25.000

Short particulars of the property charged (Including location of the property)

Corporate Guarantee of the company and Plant and Machinery

Name of the company	CONNECT INTERNATIONAL PRIVATE LIMITED
Presented By	Bank of Punjab Limited, L - 40, Connaught Circus, New Delhi -110 001
1) Date and description of instrument creating the change	08.09.2005 Agreement of Guarantee
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 2.500 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	Corporate guarantee given by the company ion favour of the bank for bank having granted a cash credit (Hypothecation) Limit of Rs. 2.500 millions to Connect Architectural Products Private Limited
4) Gist of the terms and conditions and extent and operation of the charge.	The above is to secure cash credit (Hypothecation) Limit of Rs. 2.500 millions granted to connect Architectural Products Private Limited.
5) Name and Address and description of the person entitled to the charge.	Bank of Punjab Limited, L -40, Connaught Circus , New Delhi – 110 001

Other details:-

Material Changes:

There is no Material changes, affecting the financial position of the company which have occurred between the end of the financial year of the company to which the balance sheet relates and the date of report.

Press RELEASES:

Noida, Uttar Pradesh, India

Building material Products - Manufacturer, Export / Import, Pvt. Ltd. Firm Since 0

With changing facets of technology; hardware & hardware accessories too have under gone transformation. From simple instruments, they have become an icon of class and elegance. We, at Connect International, are known as the leading manufacturer and exporter of quality Hardware Products. Since our inception in the year 1992, we have grown with a vision to provide international quality products and services.

At Connect International, we strive to supply reliable products satisfying customer requirement by creating awareness of quality requirements and implementing quality systems at all levels. Our innate strength, expertise, and enthusiasm ensure both quick and effective response on our part to every need of our clientle.

Products:

Manufacturer and exporter of Bathroom Accessories - Euro, Kubic, Silverline, Wembley Cabinet Knobs & Pulls, Entry Pull Handles

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.50.09
UK Pound	1	Rs.76.68
Euro	1	Rs.63.48

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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