MIRA INFORM REPORT

Report Date :

10.12.2008

IDENTIFICATION DETAILS

Name :	NAVNIT AUTOSPARES (NAGPUR) PRIVATE LIMITED
Registered Office :	C/C Navnit Automobiles, Mount Road, Extension, Nagpur – 440001, Maharashtra.
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	22.04.2002
Com. Reg. No.:	11-135621
CIN No.: [Company Identification No.]	U34102MH2002PTC135621
Legal Form :	Private Limited Liability Company.
Line of Business :	Trader Of Automobile Parts To Ashok Leyland, Tata Motors, Skoda

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 14000
Status :	Satisfactory
Payment Behaviour :	No Complaints.
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Trade relations are fair. Business is active. No complaints have been heard. The company can be considered good for normal business dealings.

INFORMATION PARTED BY

Name :	Mr. Bharat N. Sheth
Designation :	Director
Contact No.:	91-9373281660
Date :	09.12.2008

LOCATIONS

Registered Office :	C/C Navnit Automobiles, Mount Road, Extension, Nagpur – 440001, Maharashtra, India.
Tel. No.:	91-712-2548695
Mobile No.:	91-9373281660 (Mr. Bharat Sheth, Director)
Fax No.:	91-712-2548695
E-Mail :	navnit_ngo@sancharnet.in
Area :	5000 sq.ft.
Location :	Owned

DIRECTORS

Name :	Mr. Navnit M. Sheth
Designation :	Director
Address :	95, Canal Road, Ramdaspeth, Nagpur – 440010, Maharashtra, India.
Date of Birth/Age :	07.05.1928
Qualification :	SSC
Date of Appointment :	22.04.2002
Name :	Mr. Bharat N. Sheth
Designation :	Director
Address :	95, Canal Road, Ramdaspeth, Nagpur – 440010, Maharashtra, India.
Date of Birth/Age :	21.05.1954
Qualification :	B.Com
Date of Appointment :	22.04.2002
Name :	Ms. Renuka B. Sheth
Designation :	Director
Address :	95, Canal Road, Ramdaspeth, Nagpur – 440010, Maharashtra, India.
Date of Birth/Age :	31.12.1953
Qualification :	B.A
Date of Appointment :	22.04.2002
Name :	Mr. Chirag B. Sheth
Designation :	Director
Address :	95, Canal Road, Ramdaspeth, Nagpur – 440010, Maharashtra, India.
Date of Birth/Age :	20.11.1979
Qualification :	MBA
Date of Appointment :	28.03.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2008

Names of Shareholders	No. of Shares
Mr. Navnit M. Sheth	400
Mr. Bharat N. Sheth	350
Ms. Renuka B. Sheth	250
Mr. Kundan N. Sheth	250
Mr. Chirag B. Sheth	200
Mr. Bharat N. Sheth	300
Mr. Navnit M. Sheth	300

AS ON 31.03.2008

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader Of Automobile Parts To Ashok Leyland, Tata Motors, Skoda
Terms :
Selling :	Credit (60 – 90 days)
Purchasing :	Credit (60-90 days)

GENERAL INFORMATION

Customers :	Corporate
No. of Employees :	45
Bankers :	Ø Bank of India, Main Branch, Kingsway, Nagpur – 440001, Maharashtra, India.

Banking Relations :	-
Auditors :
Name :	Sahasrabudhe Paranjpe and Company Chartered Accountant
Address :	G-3, Yashodhan, Gorepeth, Nagpur – 440010, Maharashtra, India.
Showrooms / Sister Concern Company’s :	Ø Navnit Cars Private Limitedd, 14, Kachu Met, Amravati Road, Nasik, Maharashtra, India. Ø Navnit Automobile, Mount Road, Nagpur Ø Navnit Automobile Private Limited Ø N.S.Automotive Spares Private Limited, MIDC Nagpur

CAPITAL STRUCTURE

AS ON 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs. 100/- Each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2050	Equity Shares	Rs. 100/- Each	Rs.0.205 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		0.205	0.205
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		2.659	2.236
4] (Accumulated Losses)		0.000	0.000
NETWORTH		2.864	2.441
LOAN FUNDS
1] Secured Loans		8.466	1.464
2] Unsecured Loans		32.416	29.067
TOTAL BORROWING		40.882	30.531
DEFERRED TAX LIABILITIES		0.000	0.008
TOTAL		43.746	32.980
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.116	1.970
Capital work-in-progress		0.000	0.000
INVESTMENT		0.006	0.006
DEFERREX TAX ASSETS		0.002	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.522	36.452
	Sundry Debtors	24.347	14.426
	Cash & Bank Balances	0.954	0.092
	Other Current Assets	0.001	0.001
	Loans & Advances	1.573	3.711
Total Current Assets		68.397	54.682
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	32.750	22.521
	Provisions	1.025	1.157
Total Current Liabilities		33.775	23.678
Net Current Assets		34.622	31.004
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		43.746	32.980

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2008
Sales Turnover	165.000
Total Income	165.000

KEY RATIOS

PARTICULARS	31.03.2008	31.03.2007
Debt Equity Ratio (Total Liability/Networth)	26.06	22.20
Current Ratio (Current Asset/Current Liability)	2.02	2.30

LOCAL AGENCY FURTHER INFORMATION

This form is for	Creation of charge
Corporate identity number of the company	U34102MH2002PTC135621
Name of the company	NAVNIT AUTOSPARES NAGPUR PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	C/C Navnit Automobiles, Mount Road, Extension, Nagpur – 440001, Maharashtra, India.
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Bank of India, Main Branch, Kingsway, Nagpur – 440001, Maharashtra, India. zonagpur@bankofindia.co.in
Nature of description of the instrument creating or modifying the charge	Hypothecation cum loan agreement (plant and machinery, stocks and book debts)
Date of instrument Creating the charge	08.03.2008
Amount secured by the charge	Rs.4.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest at bank of India prime lending rate (BPLR) with minimum 12.75% per annum at monthly rests. Terms of repayment Repayable on demand Margin 25% against stocks, finished goods 40% against book debts of 2 or 3 months old Extent and operation of the charge First charge on all movable assets and book debts of the borrower.
Short particulars of the property charged	Hypothecation of plant and machinery, hypothecation of stocks of raw materials such as spare parts of Tata light and heavy vehicles, stocks in process, finished goods and other current assets and book debts situate at the Godown of the company at Mount Road, Nagpur.

TRADE REFERENCES

Ø Tata Motors

Ø Ashok Leyland

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.49.22
UK Pound	1	Rs.73.03
Euro	1	Rs.63.14

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