MIRA INFORM REPORT

Report Date :

12.12.2008

IDENTIFICATION DETAILS

Name :	EBCO PRIVATE LIMITED
Formerly Known As :	EARL BIHARI PRIVATE LIMITED
Registered Office :	148 F Fair Lawns Street, Cyril Road, Bandra , Mumbai – 400 050, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	29.09.1973
Com. Reg. No.:	11-16890
CIN No.: [Company Identification No.]	U29299MH1973PTC016890
TAN No.: [Tax Deduction & Collection Account No.]	MUME04633G
PAN No.: [Permanent Account No.]	AAACE1625N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Furniture Fittings.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having fine track. Available information indicates satisfactory financial responsibility of the company. Trade relations are fair. Business is active. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Lewis
Designation :	Accounts Finance Manager
Contact No.:	91-9819529119
Date :	11.12.2008

LOCATIONS

Registered Office :	148 F Fair Lawns Street, Cyril Road, Bandra , Mumbai – 400 050, Maharashtra , India
Tel. No.:	91-22-26404877/ 28575889
Mobile No.:	91-9819529119
Fax No.:	91-22-26401543/ 56920700
E-Mail :	ebco@vsnl.com ebco@mtnl.net.in info@ebcofittings.com
Website :	www.ebcofittings.com
Location :	Owned
Factory :	Saki Vihar Road, Mumbai – 400072, Maharashtra, India
Tel. No.:	91-22-28573888/ 28575889/ 66925211
Fax No.:	91-22-66920700
E-Mail :	info@ebcofittings.com
Websites:	www.ebcofittings.com
Location :	Leased
Corporate Office :	Chandivali Hyde Park, Andheri (East), Mumbai, Maharashtra, India
Location :	Owned
Factory :	Located at: Palghar
Location :	Owned
Overseas Offices:	United Arab Emirates, Dubai, M/s. Little Angel Building Materials LLC, P. O. Box No. 51267, BUR , Dubai UAE
Tel. No.:	9714-3557830
Fax No.:	9714-5473681
E-Mail :	jkagrana@yahoo.com

DIRECTORS

Name :	Mr. Geoggrey Biharti Nagpal
Designation :	Director
Address :	1148 F, St Cyril Road, Bandra West, Mumbai – 400 050, Maharashtra, India
Date of Birth/Age :	08.01.1955
Qualification :	BE
Date of Appointment :	10.06.1986
Email :	geoff.nagpal@gmail.com
Name :	Mr. Ashley Bihari Nagpal
Designation :	Director
Address :	1148 F, St Cyril Road, Bandra West, Mumbai – 400 050, Maharashtra, India
Date of Birth/Age :	16.02.1964
Qualification :	Graduate
Date of Appointment :	31.03.1984
Name :	Mrs. Antoi Geoffrey Nagpal
Designation :	Director
Address :	1148 F, St Cyril Road, Bandra West, Mumbai – 400 050, Maharashtra, India
Date of Birth/Age :	28.10.2005
Date of Appointment :	01.06.1986
Date of Ceasing:	29.08.2005
Name :	Mrs. Jennifer Nagpal
Designation :	Director
Name :	Mr. Nishant Nagpal
Designation :	Director
Name :	Mrs. Verna Nagpal
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 16.08.2007)

Names of Shareholders	No. of Shares
Geoffery Bihari Nagpal	39003
Ashley Bhaghwandas Nagpal	45975
Bianca Ashley Nagpal	1140
Nisdhant Geoffrey Nagpal	8502
Karan Ashley Nagpal	380
Total	95000

(As on 30.09.2007)

Category	Percentage
Directors or relative of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Furniture Fittings.

Products :

· Drawer Slides of Various Types and sizes

· Friction Stay

· Hings of various and sizes

Product Description	Item Code (ITC Code No.)
Drawer Slides of Various Types and sizes	83024200
Computer Key Board Tray	94032010
Friction Stay	83024110

Exports :

Products :

Furniture Fittings

Countries :

• China
• Dubai

Imports :

Products :

• Sample and Defective Items
• Furniture Fittings

Countries :

• China
• Taiwan
• Italy

Terms :

Selling :

L/C, Credit and DD Payable

Purchasing :

L/C , Credit and T/T

GENERAL INFORMATION

Customers :

• End Users
• Distributors

No. of Employees :

500 (Office – 100, Factory – 300 and Branches – 100)

Bankers :

• State Bank of India

MID Corporate Loan Administration Unit, Shri Hari Building, RTO Lane, Four Bunglows, Andheri (West), Mumbai – 400053, Maharashtra, India

Facilities :

WC, TL – Rs.320.000 Millions

Secured Loans	31.03.2008 (Rs. In Millions)
Bank Overdraft from State Bank of India (Secured by hypothecation of immovable and moveable assets along with fixed deposit and personal guarantee of director)	121.062
Term Loans	26.573
Kotak Mahindra Bank	0.084
HDFC Bank	0.223
ICICI Bank	2.277
Total	150.219
Unsecured Loans	31.03.2008 (Rs. In Millions)
From Shareholders and Directors	1.056
Sales Tax Loan	1.194
Total	2.250

Banking Relations :

Satisfactory

Auditors :

Name :

Atul R Shah and Associates

Chartered Accountants

Address :

59 Nityanand CHS Limited, Building No. 2, Swami Nityanand Road, Andheri (East), Mumbai – 400 069, Maharashtra, India

Associates/Subsidiaries :

Essirpress Private Limited, Palghar

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity shares	Rs.100/- each	Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
95000	Equity shares	Rs.100/- each	Rs.9.500 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		9.500	9.500	9.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		133.302	98.301	81.514
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		142.802	107.801	91.014
LOAN FUNDS
1] Secured Loans		150.219	110.089	88.900
2] Unsecured Loans		2.250	1.544	4.514
TOTAL BORROWING		152.469	111.633	93.414
DEFERRED TAX LIABILITIES		10.838	9.155	8.366
TOTAL		306.109	228.589	192.794
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		124.396	100.796	104.186
Capital work-in-progress		26.053	17.419	6.414
INVESTMENT		0.673	0.671	0.771
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	132.071	103.144	79.414
	Sundry Debtors	87.867	69.909	52.387
	Cash & Bank Balances	2.874	3.146	1.595
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	66.677	42.532	28.304
Total Current Assets		289.489	218.731	161.700
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	85.712	83.218	61.688
	Provisions	48.790	25.810	18.612
Total Current Liabilities		134.502	109.028	80.300
Net Current Assets		154.987	109.703	81.400
MISCELLANEOUS EXPENSES		0.000	0.000	0.023
TOTAL		306.109	228.589	192.794

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		614.797	490.044	390.059
Other Income		0.000	0.000	47.848
Total Income		614.797	549.927	437.907
Profit/(Loss) Before Tax		60.218	32.898	25.038
Provision for Taxation		21.328	0.000	8.598
Profit/(Loss) After Tax		38.890	32.898	16.440
Export Value		NA	NA	2.724
Expenditures :
	Interest	16.214	11.639	9.379
	Depreciation & Amortization	7.247	6.229	0.000
	Other Expenditure	531.118	499.161	403.490
Total Expenditure		554.579	517.029	412.869

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	6.33	5.98	3.75
Net Profit Margin (PBT/Sales)	(%)	9.79	5.98	6.45
Return on Total Assets (PBT/Total Assets}	(%)	14.55	9.74	9.16
Return on Investment (ROI) (PBT/Networth)		0.42	0.31	0.28
Debt Equity Ratio (Total Liability/Networth)		2.01	2.04	1.91
Current Ratio (Current Asset/Current Liability)		2.15	2.01	2.01

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCES:

· Aseem Enterprises, Mumbai

· Raj Trading, Delhi

· Techno Build, Gujarat

· South India Agencies, Bangalore

FORM 8:-

Name of the company

EBCO PRIVATE LIMITED (Earlier known as Earl Bihari Private Limited)

Presented By

State Bank of India , industrial Finance Branch, Sakinaka, Mumbai – 400 072

1) Date and description of instrument creating the change

General agreement for the grant of small Industrial Advances and hypothecation of movables book debts and other assets.

Ancillary agreement No. 1

Ancillary agreement No. 3

Ancillary agreement No. 6

All the above agreement are dated 22.03.1996 and executed for the creation of a single charge.

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 9.100 millions

DCC (Stocks) 3.500 millions

CCC (Bills ) 4.000 millions

Letter of credit a guarantee 1.600 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

All present and future goods, book debts and all other movables assets including documents of title to goods and other assets , such as outstanding moneys, receivables , claims, bills, invoices, documents, contracts, engagements, securities , investments, and rights , and the present and future machinery and raw materials Stock in process, , finished goods, etc. DA / DP Bills in course of collection accompanied by Invoices, / Challan / IR/ MTR

4) Gist of the terms and conditions and extent and operation of the charge.

ROI : 2.25% over SBAR Min. 18.75% p.a

Margin:

Raw materials 25%

finished goods 33.33%

Stock in process 40%

Bills 20%

5) Name and Address and description of the person entitled to the charge.

State bank of India

Sakinaka Branch, Mumbai - 72

6) Date and brief description of instrument modifying the charge

Supplemental General agreement for the grant of small Industiral Advances and Hypothecation of goods , book dets, and other assets (WCF)

Ancillary Agreement No. 1

Ancillary Agreement No. 6

All the above agreement are dated 25.02.2004 and executed for the creation of a single modification

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.

The original charge was created on 22.03.1996 for Rs. 9.100 millions 1stly modified on 10.03.1997 by giving san additional collateral security over the company immovable properties 2ndly modified 20.08.1998 for Rs. 11.600 millions 3rdly modified on 10.03.1999 by giving an additional collateral security over the company immovable properties. 6thly modified on 28.04.2003 by giving an additional collateral security over the company immovable properties now by the present modification dated 25.02.2004 the limit has been increased by Rs. 7.500 millions making total to Rs. 30.100 millions The limit are as follows:

DCC (Stocks and Book Debts)	28.500 millions
Stand by line of credit Letter of Credit and guarantee	1.600 millions
Total	30.100 millions

ROI : 1.50% over the state Bank of India advance rate with a minimum of 12% p.a

Margin:

Raw materials / Consumables 25%

finished goods 33.33%

Stock in process 40%

Letter of credit 25%

guarantee 25%

Receivables 40%

Corporation identity number or foreign company registrations number of the company	U29299MH1973PTC016890
Name of the company	EBCO PRIVATE LIMITED
Address	148 F, Fair Lawns Street Cyril Road, Bandra, Mumbai – 400 050, Maharashtra, India
This Form is for	Modification of charge
Type of Charges	Immovable property
Particular of the charge holder	State Bank of India Address: Industrial Finance Branch, Lekhraj Bhavan , 2^nd Floor, Saki Naka, Mumbai – 400 072, Maharashtra, India
Nature or description of the instrument creating charge	Memorandum of Deposit for Creation of further charge for term loan / overall limit where the initial charge is created by way of mortgage by deposit of title deeds.
Date of the instrument creating charge	10.08.2007
Amount Secure by the charge	Rs.184.700 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest : As would be determined by the bank from time to time.
Short particulars of the Property charged	All present and future goods book debts movables and other assets such as outstanding monies , receivables, claims, bills, contracts, engagement, securities, investments, rights and all present and future machinery.
	Now by this modification the company offered it immovable properties as an additional security to secure its enhanced credit facilities to the extent of Rs. 184.700 millions the details of the immovable properties is as per annexure.

FIXED ASSETS:

• Land
• Building
• Plant and Machinery
• Air Conditioner
• Computers
• Factory and Building

WEBSITE DETAILS

PROFILE:

The company origins in 1963 as a Tool Room and the subsequent Mass production of critical components in millions per month has been their strength. In the last 20 years the diversification into Furniture Fittings has fueled their growth.

Today they have a well balanced Design and Development Department using advanced Design Software and latest CNC Machines which enable them to launch new products every month. They will also be introducing several value for money products this year. The office segment has been widened to offer the full range of Hardware requirements by an Office Furniture Manufacturing Unit and so too the Window Fitting Segment. The Furniture Fittings range for the Home Segment is also quite wide with Kitchen Baskets and Accessories, Wardrobe Fittings and other convenience products.

The company has 3 major manufacturing plants with warehousing. In line with their policy, value for money options for the customer have increased their range tremendously in the last 2 years. All segments of their range have been augmented to give customers a wider range and choice, so that they are a one stop source for all Hardware Items for furniture factories and other customers.

With their commitment to quality, launching of new products, automation, increase in capacities and use of new technologies and cycle testing, they are growing from strength to strength and this will benefit the Indian Customer and Furniture Factories in the years to come.

The company has 3 major manufacturing plants and a separate warehouse. Their commissioned Plant 3 in Palghar is a most modern Plant, planned with a superb layout, state-of-the-art facilities, optimum material handling flow and well laid out manufacturing and assembly facilities. It also has provision for further expansion to increase production capacity in phases, as required in the future. The new warehouse close to their new factory in Palghar will also considerably increase their storage and ability to increase their product range further. The idea is to provide the latest products of world-class quality to the Indian consumer with value-for-money pricing.

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] 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.48.52
UK Pound	1	Rs.72.62
Euro	1	Rs.63.76

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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