MIRA INFORM REPORT

Report Date :

09.12.2008

IDENTIFICATION DETAILS

Name :	BHANSALI CABLES AND CONDUCTORS PRIVATE LIMITED
Registered Office :	GB-17, Shivaji Enclave, Najafgarh Road, New Delhi – 110027
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	02.11.1987
Com. Reg. No.:	55-29645
CIN No.: [Company Identification No.]	U74899DL1987PTC029645
TAN No.: [Tax Deduction & Collection Account No.]	DELB02919A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of Cables, Wires and Data Cables

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 140000
Status :	Satisfactory
Payment Behaviour :	Slow but 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 reported as fair. General financial position is satisfactory. Payments are reported as slow but correct. The company is doing well. It can be considered good for any normal business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Vikas Jain
Designation :	Director
Date :	01.11.2008

LOCATIONS

Registered Office :	GB-17, Shivaji Enclave, Najafgarh Road, New Delhi – 110027, India
Tel. No.:	91-11-28114496/ 25446590 / 25468865 / 51694254
Fax No.:	91-11-28115151/ 25131184
E-Mail :	info@bhansali.net bhansali@mantraonline.com deepakjain@bhansali.net gskohli_ca@yahoo.co.in vikasjain72@gmail.com
Website :	http://www.bhansali.net
Area :	8000 sq ft
Location :	Owned
Marketing Office :	A-38/4, Maya Puri Phase-I, New Delhi – 110064, India
Tel. No.:	91-11-25144496 / 25131086 / 25132203 / 51694254
Fax No.:	91-11-28115151
Email :	info@bhansali.net sales@bhansali.net
Location :	Industrial
Factory :	B-816, RIICO Industrial Area, Phase II, Bhiwadi, Walwar, Rajasthan, India
Tel. No.:	91-1492-223560/ 224105
E-Mail :	cables_1@datainfosys.net
Location :	Industrial

DIRECTORS

Name :	Mr. Suraj Jain
Designation :	Director
Address :	GB-17, Shivaji Enclave, Najafgarh Road, New Delhi – 110027, India
Date of Birth/Age :	20.09.1946
Qualification :	B.E.
Date of Appointment :	02.11.1987
Name :	Mr. Deepak Jain
Designation :	Director
Address :	GB-17, Shivaji Enclave, Najafgarh Road, New Delhi – 110027, India jaindeepak69@rediffmail.com
Date of Birth/Age :	12.05.1969
Qualification :	Post Graduate
Date of Appointment :	02.11.1987
Name :	Mr. Balwant Singh Jain
Designation :	Director
Address :	GB-17, Shivaji Enclave, Najafgarh Road, New Delhi – 110027, India
Date of Birth/Age :	26.03.1946
Date of Appointment :	25.03.1997
Name :	Mr. Vikas Jain
Designation :	Director
Address :	GB-17, Shivaji Enclave, Najafgarh Road, New Delhi – 110027, India bhansali.cables@gmail.com
Date of Birth/Age :	08.09.1972
Qualification :	B.Com
Date of Appointment :	31.03.1999
Name :	Mr. Vishal Jain
Designation :	Director
Address :	GB-17, Shivaji Enclave, Najafgarh Road, New Delhi – 110027, India
Date of Birth/Age :	20.06.1977
Qualification :	B.Com
Date of Appointment :	02.11.1987

KEY EXECUTIVES

Name :	RMG and Associates
Designation :	Company Secretary
Address :	207, Suchet Chambers – 122 415, Bank Street, Karol Bagh, New Delhi – 110 005, India
Telfax No.:	91-11-51450970
Mobile No.:	91-9212221110/ 9868113870
E-Mail :	rmg_pcs@rediffmail.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 29.09.2007)

Names of Shareholders	No. of Shares
B. S. Jain	36516
Suraj Jain	33850
Deepak Jain	13190
Vikas Jain	16308
Vishal Jain	20265
Ritu Jain	75
B. S. Jain and Sons, HUF	19293
Deepak Jain and Sons, HUF	9000
Vikas Jain and Sons, HUF	5957
Sarthak Jain	1523
Bhavik Jain	1523
Total	157500

(As on 29.09.2007)

Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Cables, Wires and Data Cables
Products :	v Switchboard and Telephone Cables v PCM Cables v Radio Frequency Coaxial Cables v Polythylene Insulated Jelly Filled Cables v Ethernet Cables for Broadband Solutions v Power Cables v Equipment Wires v Instrumentation and Data Cables v Control Cables v Local Area Network (LAN) Cables v CATV Cables
Exports :
Products :	Cables
Countries :	UK Europe Middle East
Imports :
Products :	Raw Materials
Countries :	China Korea
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Customers :

End Users and OEM’s

• ABB
• DLF
• Motorola
• Ansals
• Ericcson
• MTNL
• Apollo
• Escorts Heart Institute N
• HPC
• Ascom
• Fujitsu
• Ortel
• Asianet
• HAL
• Philips India
• BCS
• Hathway
• Phoenix Technology
• Bhartia Cutler Hammer Limited
• HFCL
• Punwire
• Bharti Telecom Limited
• HFCL
• BSF
• IOCL
• Taj Hotels
• ITC Group
• CEERI
• ITI
• DESU
• Meltron

No. of Employees :

Around 150

Bankers :

• UCO Bank,

Mayapuri Branch, Phase – I, New Delhi – 110064, India

• Standard Chartered Bank
• State Bank of Bikaner and Jaipur, Bhiwadi, Rajasthan
• HDFC Bank Limited
• ICICI Bank Limited
• Industrial Bank Limited

Facilities :

Secured Loan:	31.03.2007 (Rs. in Millions)
O/D A/c UCO Bank A/c against Bill Discounting	0.000
O/D A/c UCO Bank A/c against (packing credit)	7.500
O/D A/c UCO Bank A/c (against Bill Discounting L/C)	3.093
C/C A/c with UCO Bank	10.548
Term Loan from RIICO-1	0.000
Term Loan from RIICO-2	4.000
ICICI Bank Limited (Car Loan)	0.108
UCO Bank CC A/c 2264 (B.O.)	27.810
Industrial Bank Limited (Term Loan)	0.473
ICICI (Credit Card as per list)	0.111
Total	53.643

Banking Relations :	Satisfactory
Auditors :
Name :	G. S. Kohli and Company Chartered Accountants
Address :	A. R. A. Enclave, E-2, Jhandewalan Extension, New Delhi – 110055, India
Tel. No.:	91-11-23521330
Fax No.:	91-11-25791159
E-Mail :	gskohli_co@yahoo.co.in
Memberships :	v EEPC v TEMA v FISME
Associates/Subsidiaries :	Bhansali Udyog Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
175000	Equity Shares	Rs.100/- each	Rs.17.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
157500	Equity Shares	Rs.100/- each	Rs.15.750 millions

Opening Shares

88859 Equity Shares of Rs.100/- Rs.8.886 Millions

Add: New Issued on Capital

241414 Sales of Rs.1000 Millions Rs.2.414 Millions

Add: Bonus Shares

44500 Shares of Rs.1000 Millions Rs.4.450 Millions

Total Rs.15.750 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2008
Sales Turnover (Estimated)	250.000

Expected Sales (2008-09): Rs.400.000 Millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		15.750	8.886	8.166
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12.867	10.098	6.836
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		28.617	18.984	15.002
LOAN FUNDS
1] Secured Loans		53.643	44.550	29.316
2] Unsecured Loans		8.540	14.438	14.384
TOTAL BORROWING		62.183	58.988	43.700
DEFERRED TAX LIABILITIES		0.729	0.791	1.008
TOTAL		91.529	78.763	59.710
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		20.255	18.941	19.041
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		3.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.849	18.770	12.965
	Sundry Debtors	52.862	47.801	36.481
	Cash & Bank Balances	11.771	5.031	3.565
	Other Current Assets	1.854	1.008	2.006
	Loans & Advances	20.862	3.954	1.510
Total Current Assets		118.198	76.564	56.527
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	48.427	16.742	15.858
	Provisions	1.497	0.000	0.000
Total Current Liabilities		49.924	16.742	15.858
Net Current Assets		68.274	59.822	40.669
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		91.529	78.763	59.710

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005
Sales Turnover	250.120	124.464
Other Income	0.000	0.000
Total Income	250.120	124.464
Profit/(Loss) Before Tax	2.729	2.268
Provision for Taxation	0.739	0.682
Profit/(Loss) After Tax	1.990	1.586
Total Expenditure	241.155	122.196

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	NA	0.79	1.27
Net Profit Margin (PBT/Sales)	(%)	NA	1.09	1.82
Return on Total Assets (PBT/Total Assets}	(%)	NA	2.86	3.00
Return on Investment (ROI) (PBT/Networth)		NA	0.14	0.15
Debt Equity Ratio (Total Liability/Networth)		3.92	3.99	3.97
Current Ratio (Current Asset/Current Liability)		2.37	4.57	3.56

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCES:

• MTNL
• Hatway
• Motorola

BUSINESS:

Incorporated in 1987, a part of Bhansali group, the subject is engaged in the business of manufacturers of Cables, Wires and Data Cables. The subject is manufacturing most comprehensive lines of coaxial cables and their products are designed to meet the needs for safe and reliable transmission of voice, video and data.

The subject has accredited ISO 9001 certification for Quality Practices.

Subject exports its finished Cables Wires and Data Cables to Worldwide.

FORM 8:

Name of the company	BHANSALI CABLES AND CONDUCTORS PRIVATE LIMITED
Presented By	B. S. JAIN
1) Date and description of instrument creating the change	Date of regd. Agreement 30.03.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 38.000 Millions [CC Rs. 7.500 Millions; PCL Rs. 5.000 Millions; BP Rs. 12.000 Millions BG Rs. 6.000 Millions and LC Rs. 7.500 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	Primary – Stock in trade and process all raw materials, finished goods and book debts and all other current assets.
4) Gist of the terms and conditions and extent and operation of the charge.	Collateral : Property at GB 17, Shivaji Enclave, Najafgarh Road, New Delhi – 110027 and second charge on Bhiwandi factory. Repayable on demand with Interest.
5) Name and Address and description of the person entitled to the charge.	UCO Bank, Mayapuri, Phase – I, New Delhi, India
6) Date and brief description of instrument modifying the charge	Date of documents : 16.01.2006
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.	Limits enhancement from 38.600 Millions to Rs. 60.000 Millions

This form is for	Modification of charge
Charge identification number of the modified	80006919
Corporate identity number of the company	U74899DL1987PTC029645
Name of the company	BHANSALI CABLES AND CONDUCTORS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	GB-17, Shivaji Enclave, Najafgarh Road, New Delhi – 110027, India
Type of charge	Immovable Property Book Debts Movable Property Others (Stock, Receivables and Other Current Assets)
Particular of charge holder	UCO Bank, Mayapuri Industrial Area, Phase – I, New Delhi – 110064, India E-Mail: rmgpcs@gmail.com
Nature of description of the instrument creating or modifying the charge	Letter regarding sanction of enhanced Credit facilities. Annexure regarding terms and conditions of sanction. Hypothecation of Goods to secure demand cash credit. Hypothecation of Book debts to secure demand Cash Credit. Agreement for Extension of Charges by way of Hypothecation over current assets to secure non-fund based facilities.
Date of instrument Creating the charge	26.02.2008
Amount secured by the charge	Rs.120.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: 1. Cash Credit – BPLR+2% i.e., presently 13.50% p.a. (monthly rests) 2. Export Packing Credit – as per the guidelines. Terms of Repayment: Repayable on demand. Margin: 25% on Stocks and 25% on Book debts, 25% Obsolete stocks shall be excluded for the purpose of DP calculation, 10% in Cash/ Duly discharged FDRs with lien noted in favour of the Bank. Extent and Operation of the charge: Fund based – Cash Credit Rs.40.000 Millions Non Fund based – L/C Rs.48.000 Millions and B/G Rs.32.000 Millions (interchangeability permitted for B/G and L/C limit on limited scale upto Rs.20.000 Millions Total: Rs.120.000 Millions
Short particulars of the property charged	First pari-passu charge by way of Hypothecation on entire Stocks, Raw material, WIP, FG, Consumables, Stores, Receivables, Bills and Extension of Charge on other Current Assets of the company (both present and future). Second charge on the collateral security situated at B-816, RIICO Industrial Area, Bhiwandi, Alwar, Rajasthan; and Extension of the First charge upon the property situated at H. No. GB-17, Shivaji Enclave, N.D. -27. Second charge on fixed assets of the company both present and future.
Date of latest modification prior to the present modification	10.11.2006
Particulars of the present modification	The total limit enhanced from Rs.80.000 Millions to Rs.120.000 Millions.

FIXED ASSETS:

• Land
• Building
• Air Conditioner
• Computer
• Cycle
• Fan
• Fax/ Telephone Machine
• Furniture and Fixture
• Intercom
• Scooter
• Tempo (Elcher)
• Tubewell
• Sumo (Vehicle)
• Motor Car
• Gizer
• Water Filter
• Plant and Machinery
• Water Cooler
• EPBY Systems
• Cellular Phone
• Fax Machine
• UPS

Group Profile

Established way back in the year 1940 Bhansali Group is a renowned name in the field of manufacturing and exporting the most comprehensive line of Radio Frequency Coaxial cables, Equipment wires, Instrumentation & Data cables, Control cables, Telephone cables, Local Area Network cable, CATV cables for critical installations.

The company has been awarded ISO 9002 certification for its Quality Practices and enjoys a solid client base that include the most reputed names in the Industry.

Bhansali Group has been in existense in India for last six decades. Established in the year 1940 i.e. the pre-independence era the group has seen new heights every year by enhancing its manufacturing technology and manpower skills. Today the company manufactures Radio Frequency Coaxial cables, Equipment wires, Instrumentation & Data cables, Control cables, Telephone cables, Local Area Network cable, CATV cables. Available from a single source all their products are designed to meet the needs of most critical installations for safe and reliable transmission of voice, video and data.

From the beginning customer service has been of utmost importance to us. As they strongly believe in the sovereign position of the customer, they provide quick and efficient service which ensure customer satisfaction. To accomplish this they have a separate unit for customer care that is responsible for taking into account every query given by the customer, which is resolved as quickly as possible.

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.48.96
UK Pound	1	Rs.80.26
Euro	1	Rs.63.08

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	5
--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		46

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/normal.	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