MIRA INFORM REPORT

Report Date :

16.12.2008

IDENTIFICATION DETAILS

Name :	ORIENTAL EXPORT CORPORATION
Registered Office :	5, Guru Nanak Shopping Centre, Shanker Lane, Kandivali [West], Mumbai – 400067, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
TAN No.: [Tax Deduction & Collection Account No.]	MUMO00948D
IEC Code No.:	0388123001
PAN No.: [Permanent Account No.]	AAAFO0211H
Legal Form :	Partnership concern with an unlimited liability of the partners
Line of Business :	Manufacturers and Exporters of Brass and Copper Electrical Products

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is an established concern in its field. Partners are reported as experienced, respectable and having satisfactory means of their own. Trade relations are fair. Business is active. No complaints have been heard. The concern can be considered good for normal business dealings. It would be advisable to take adequate securities while dealing with the subject.

LOCATIONS

Registered Office :	D/12, Kailash Nagar, Shankar Lane, Kandivali [West], Mumbai – 400067, Maharashtra, India
Corporate Office :	5, Guru Nanak Shopping Centre, Shanker Lane, Kandivali [West], Mumbai – 400067, Maharashtra, India
Tel. No.:	91-22-28071438 / 28079980
Fax No.:	91-22-28073908 / 28059293
E-Mail :	info@orientalexportcorp.com sales@orientalexportcorp.com
Website :	http://www.orientalexportcorp.com/
Factory 1 :	Sp. Shed GIDC, Undyognagar, Jamnagar, Gujarat, India
Factory 2 :	GIDC Phase II, Undyognagar, Jamnagar, Gujarat, India
Factory 3 :	13, Sp Shed, Shankar Takri, Udyog Nagar, Jamnagar

PARTNERS

Name :	Mr. Subhash R. Gada
Designation :	Partner
E-Mail :	subhash@orientalexportcorp.com
Address :	C/206 Chintamani Apartments, Shankar Lane, Kandivali [West], Mumbai – 400067
Name :	Mrs. Sushila S. Gada
Designation :	Partner
Address :	C/206 Chintamani Apartments, Shankar Lane, Kandivali [West], Mumbai – 400067

KEY EXECUTIVES

Name :	Mr. Rajen S. Gada
Designation :	Key Executive
E-Mail :	rajen@orientalexportcorp.com
Name :	Mr. Jaideep S. Gada
Designation :	Key Executive
E-Mail :	jaideep@orientalexportcorp.com

BUSINESS DETAILS

Line of Business :	Manufacturers of Brass and Copper Electrical Products
Products :	Electrical Products Plumbing Products Engineering Goods : ITC Code : 107

GENERAL INFORMATION

Bankers :

Corporation Bank, Overseas Branch Corporation Bank [Kandivali] Corporation Bank [Jamnagar] Corporation Bank [Rajkot] State Bank of India [Kandivali] State Bank of India [Air Cargo Complex] State Bank of India [JNPT] Central Bank of India [Nariman Point] HDFC Bank Bank of India [Ballard Estate] Bank of India – Mulund

Banking Relations :

Satisfactory

Auditors :

Name :

Bhikhubhai H. Shah and Company

Chartered Accountants

Address :

Shop No. 15, Navratna CHS, Aasra Colony Road, Dattapada, Borivali [East], Mumbai – 400066

Tel. No.:

91-22-28704492 / 93

Mobile No.:

91-9322216867

Associate / Sister Concern:

Name :	United Enterprises
Address :	Shop No. 9, Chintamani Apartments, S. V. P. Road, Shankar Lane, Kandivali [West], Mumbai – 400067
Present Banker :	Corporation Bank, Overseas Bank, Mumbai
Name :	Oriental Electrical Components Private Limited
Address :	Shop No. 9, Chintamani Apartments, S. V. P. Road, Shankar Lane, Kandivali [West], Mumbai – 400067
Present Banker :	Corporation Bank, Overseas Bank, Mumbai
Name :	Oriental Engineering Company
Address :	C-306, Chintamani Apartments, S. V. P. Road, Shankar Lane, Kandivali [West], Mumbai – 400067
Present Banker :	Corporation Bank, Kandivali [West], Mumbai

CAPITAL STRUCTURE

PARTNERS CAPITAL	31.03.2008	31.03.2007	31.03.2006
Shri S. R. Gada [H.U.F.]
Opening Balance	--	32.887	19.663
Add : Net Profit Transferred from Profit and Loss A/c	--	22.694	16.046
		55.581	35.709
Less : Withdrawals	--	10.031	2.822
Transfer to Loan a/c	--	45.550	--
Closing Balance [A]	--	--	32.887
Smt. S. S. Gada
Opening Balance	49.914	26.722	13.791
Add : Net Profit Transferred from Profit and Loss A/c	33.460	35.638	16.046
	83.374	62.360	29.837
Less : Withdrawals	20.316	12.447	3.115
Closing Balance [B]	63.059	49.913	26.722
Shri Subhash R. Gada
Opening Balance	11.448	--	--
Add : Additions	--	1.000	--
Add : Net Profit Transferred from Profit and Loss A/c	33.460	12.945	--
	44.908	13.945	--
Less : Withdrawals	16.187	2.497	--
Closing Balance [C]	28.721	11.448	--
TOTAL [ A + B + C ]	91.780	61.361	59.609

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] Partner’s Capital		91.780	61.361	59.609
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		91.780	61.361	59.609
LOAN FUNDS
1] Secured Loans		40.724	29.177	5.847
2] Unsecured Loans		0.000	45.897	1.598
TOTAL BORROWING		40.724	75.074	7.445
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		132.504	136.435	67.054
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.751	6.888	7.403
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	3.456	2.986
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	24.252	19.498	13.095
	Sundry Debtors	70.798	86.993	33.004
	Cash & Bank Balances	24.793	18.450	1.952
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	67.737	63.825	45.323
Total Current Assets		187.580	188.766	93.374
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	38.123	45.314	23.737
	Provisions	23.704	17.361	12.972
Total Current Liabilities		61.827	62.675	36.709
Net Current Assets		125.753	126.091	56.665
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		132.504	136.435	67.054

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Income		600.068	592.387	330.912
Profit/(Loss) Before Tax		104.440	109.217	49.648
Provision for Taxation		37.519	37.939	17.555
Profit/(Loss) After Tax		66.921	71.278	32.093
C.I.F. Value		539.545	554.224	307.031
Expenditures :
	Cost of Goods Sold	439.366	428.781	246.600
	Depreciation & Amortization	0.896	0.907	0.957
	Other Expenditure	55.365	53.482	33.707
Total Expenditure		495.627	483.170	281.264

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	11.15	12.03	9.70
Net Profit Margin (PBT/Sales)	(%)	17.40	18.44	15.00
Return on Total Assets (PBT/Total Assets}	(%)	53.74	55.82	49.27
Return on Investment (ROI) (PBT/Networth)		1.14	1.78	0.83
Debt Equity Ratio (Total Liability/Networth)		1.12	2.24	0.74
Current Ratio (Current Asset/Current Liability)		3.03	3.01	2.54

LOCAL AGENCY FURTHER INFORMATION

STATEMENT OF TOTAL INCOME

[Rs in Millions]

HEADS OF INCOME	AMOUNT	AMOUNT	AMOUNT
INCOME FROM BUSINESS AND PROCESSION
Net Profit After Tax as per Profit and Loss Account		69.921
Add : Expenses / Provisions Disallowed
20 % of Motor Car Expenses Rs. 0.094 Million	0.019
Provision and Payment of Tax	37.518	37.537
		104.458
Less : Income Considered Seperately
Short Term Capital Gain		0.133
TAXABLE INCOME FROM BUSINESS AND PROFESSION			104.326
INCOME FROM CAPITAL GAINS
Short Term Capital Gains			0.133
GROSS TOTAL INCOME			104.458
TOTAL TAXABLE INCOME			104.458
ROUNDED OFF			104.458
ON WHICH TAX PAYABLE IS
At Special Rate @ 10 % on
At Normal Rate on	104.458	31.337
	104.458		31.337
ADD : SURCHARGE @ 10 %			3.134
TOTAL TAX AND SURCHARGE			34.471
ADD : EDUCATION CESS @ 3 %			1.034
TOTAL TAX, SURCHARGE AND EDUCATION CESS			35.505
LESS : TAX DEDUCTED AT SOURCE			0.258
BALANCE TAX PAYABLE			35.247
LESS : ADVANCE TAX PAID
ON OR BEFORE 15.09.2007		2.500
ON OR BEFORE 15.12.2007		5.000
ON OR BEFORE 15.03.2008		10.000	17.500
BALANCE TAX PAYABLE			17.747
Add : interest on delayed payments
UNDER SECTION 234 B		1.065
UNDER SECTION 234 C		0.829	1.894
TOTAL TAX AND INTEREST PAYABLE			19.641
LESS : S.A. TAX PAID
PAID ON			19.641
BALANCE TAX PAYABLE			--

FIXED ASSETS

• Land
• Offices Premises
• Machines
• Office Equipments
• Computers
• Furniture and Fixtures
• Motor Car
• Scooters and Cycles

Name of the Partners	Profit Sharing Ratio [%]
Subhash Gada	50
Sushila Gada	50

Mr. Subhash Gada has join as partner on 01.12.2006 having profit sharing ratio of 50 % and Subhash Gada HUF has been retired from 01.12.2006

VALUE OF FRINGE BENEFITS IN TERMS OF SECTION 115 WC READ WITH SECTION 115WB FOR THE ASSESMENT YEAR 2007-08

(Rs. In Millions)

Section under which chargeable to Fringe Benefit Tax	Name	Amount of expenditure incurred or payment made	Deduction, if any,	Total	Percentage expenditure/ Payment being fringe benefits	Value of fringe benefits
1. 115WB(1)(b)	Free or concessional ticket provided by the employer for private journeys of this employees or their family members	--	--	--	100 %	--
2. 115WB(1)(c)	Any contribution by the employer to any approved Superannuation fund for employees (see Note1)	--	--	--	100 %	--
3. 115WB(2)(A)	Entertainment	--	--	--	20 %	--
4. 115WB(2)(B)	Provision of Hospitality of every kind by the employer to any person (see Note 2)	--	--	--	20% [See note 3]	--
5. 115WB(2)(C)	Conference (Other than fee for participation by the employees in any conference) (See Note 4)	--	--	--	20 %	--
6. 115WB(2)(D)	Sales promotion including publicity (see Note 5)	0.046	0	0.046	20 %	0.009
7. 115WB(2)(E)	Employees’ Welfare (see Note 6)	0.306	0.238	0.069	20 %	0.014
8. 115WB(2)(F)	Conveyance, (see Note 7)	0.094	0.000	0.094	20 %	0.019
9. 115WB(2)(G)	Use of hotel, boarding and lodging facilities	--	--	--	20 % [See note 9]	0
10. 115WB(2)(H)	Repair, Running (including fuel), maintenance of motor cars and the amount of depreciation thereon	0.114	0.017	0.098	20 % [See note 10]	0.020
11. 115WB(2)(I)	Repair, Running ( Including Fuel) and maintenance of aircraft and the amount of depreciation thereon	--	--	--	20 % [See note 11]	0
12. 115WB(2)(J)	Use of Telephone (Including mobile phone) other than expenditure on leased telephone lines	0.488	0.00	0.488	20 %	0.098
13. 115WB(2)(K)	Maintenance of any accommodation in the nature of guest house other than accommodation used for training purpose	--	--	--	20 %	0
14. 115WB(2)(L)	Festival Celebrations	0.011	0	0.011	50 %	0.006
15. 115WB(2)(M)	Use of health club and similar facilities	--	--	--	50 %	--
16. 115WB(2)(N)	Use of any other club facilities	--	--	--	50 %	--
17. 115WB(2)(O)	Gifts	--	--	--	50 %	--
18. 115WB(2)(P)	Scholarships	--	--	--	50 %	--
19. 115WB(2)(Q)	Tour and Travel (Including foreign travel) (see Note 12)	2.452	0	2.452	50 %	0.123
Total		3.512	2.543	3.258		0.287

Notes:

Employee’s Welfare Expenses included Expenses worth Rs. 0.227 Million to the expenses of Refreshment [Tea, Snacks etc.] provided to employees at work places.

20 % of Motor Car Expenses including Depreciation considered as personel expenses and hence, the same is taken as deduction.

1. For Assessment year 2007-08 and subsequent assessment years, the value of fringe benefits in respect of contribution by the employer to an approved superannuation fund shall be the amount of contribution which exceeds Rs. 0.100 Million in respect of each employee

2. Expenditure on hospitality does not include the following :-

(i) any expenditure on, or payment for, food or beverage provided by the employer to his employees in office or factory;

(ii) any expenditure on, or payment through paid vouchers which are not transferable and usable only at eating joints or outlets

3. In the case of an employer engaged in the business of hotel 5% shall be substituted for 20%. In addition to this, in the case of an employer engaged in the business of carriage of passengers or goods by aircraft or by ship 5% shall be substituted for 20% for assessment year 2007-08 and subsequent assessment years.

4. For the purpose of this clause, any expenditure on conveyance, tour and travel (including foreign travel), on hotel or boarding and lodging in connection with any conference shall be deemed to be expenditure incurred for the purpose of conference.

5. The following expenditure on advertisement shall not be considered as expenditure on sales promotion including publicity.

(i) the expenditure (including rental) on advertisement of any form in any print (including journals, catalogues or price lists) or electronic media or transport system.

(ii) The expenditure on the holding of, or the participation in any press conference or business convention, fair or exhibition.

(iii) The expenditure on sponsorship of any sport event or any other event organized by any Government agency or trade association or body.

(iv) The expenditure on the publication in any print or electronic media of any notice required to be published by or under any law or by an order of a court or Tribunal

(v) The expenditure on advertisement by way of signs, art work, painting, banners, awnings, direct mail, electric spectaculars, kiosks, hoardings, bill boards or by way of such other medium of advertisement.

(vi) The expenditure byway of payment of any advertising agency for the purpose of clause (i) to (v) above

(vii) The expenditure on distribution of free samples of medicines or of medical equipment, to doctors (not be considered as expenditure or sales promotion, including publicity for assessment year 2007-08 and subsequent assessment years)

(viii) The expenditure by way of payment to any person of repute for promoting the sale of goods or services for the business of the employer (not to be considered as expenditure on sales promotion, including publicity for assessment year 2007-08 and subsequent assessment years)

6. For the purpose of this clause, any expenditure incurred or payment made to fulfill any statutory obligation or mitigate occupational hazards or provide first aid facilities in the hospital or dispensary run by the employer shall not be considered as expenditure for employee’s welfare

7. For assessment year 2007-08 and subsequent assessment years, clause (F) of sub-section (2) of section 115WB refers to expense of ‘conveyance’

8. In the case of an employer engaged in the business of construction, or in the business of manufacture of production of pharmaceuticals or computer software, 5% shall be substituted for 20%

9. In the case of an employer engaged in the business of manufacture or production of pharmaceuticals or computer software, 5% shall be substituted for 20% Besides, in the case on an employer engaged in the business of carriage of passengers or goods by aircraft or by ship 5% shall be substituted for assessment year 2007-08 and subsequent assessment years

10. In the case of and employer engaged in the business of carriage or passengers or goods by motor car, 5% shall be substituted for 20%

11. In the case of an employer engaged in the business of carriage of passengers or goods by aircraft, ‘Nil’ shall be substituted for 20%

12. This clause is applicable for assessment year 2007-08 and subsequent assessment years”.

Details of deviations from method of valuation prescribed under section 145 A

Rs in Millions

Sr. No.	Particulars	Increase in Profit Rs.	Decrease in Profit Rs.
1.	Increase in purchase cost on inclusion of excise duty paid on purchase of finished goods		12.079
2.	Accounting for excise duty refund received / receivable against export sales	12.079

Details of payments made in person specified U/S 40A[2][b]

Rs in Millions

Sr. No.	Name of Person	Nature of Expenses	Amount
1.	Tejal R. Gada	Salary	0.060
2.	Dynamic Industries	Purchase	1.710
3.	Oriental Electrical Components Private Limited	Purchase	89.225

PARTICULARS OF EACH LOAN OF RS. 0.020 MILLION OR MORE REPAID BY THE ASSESSEE DURING THE YEAR

Rs in Millions

Name of Address Of The Party	Amount of loan or deposit taken or Accepted	Amount of Loan or Deposit Repaid	Maximum amount outstanding at any	Whether loan or deposit accepted / repaid otherwise than by account payee cheque / bank draft
UNITED ENTERPRISES Shop No. 9, Chintamani Apartments, Shankar Lane, Kandivali [West], Mumbai – 400067	63.486	63.471	7.958	No
Shri S. R. Gada [H.U.F.] C/206 Chintamani Apartments, Shankar Lane, Kandivali [West], Mumbai – 400067	45.479	0.00	45.479	Retiring partner’s capital balance transferred to Loan a/c
Tejal R. Gada C/206 Chintamani Apartments, Shankar Lane, Kandivali [West], Mumbai – 400067	0.060	0.090	0.147	No

Details of Export / Import Credit Limit/s Including Forward Contact Sought From the Bank

Rs in Millions

Nature of facility	Limit
	Existing	Proposed
Packing Credit	35.000	45.000
FDBN	40.000	45.000
FDBP / FDBD	0.040 / 0.100	0.080 / 0.020
Import / Inland LC	5.000	5.000
Bank	4.000	4.000
Forward Purchase / Sales	15.000	15.000

KEY PERFORMANCE / FINANCIAL INDICATORS OF THE APPLICANT

Rs in Millions

Particulars	Last 2 Years [Actual]		Current Year estimates 2008-09	Next Year’s Projections 2009-10
	2006-07	2007-08
[a] Net Sales [of which exports sales % growth in sales]	554.224	539.545	650.000	780.000
[b] Operating Profit	108.748	104.307	108.848	116.350
[c] Other Income [Specify]	0.470	0.133	--	--
[d] Net Profit	109.218	104.440	108.848	116.350
[e] Cash Accruals	108.312	103.544	107.848	115.250
[f] Capital	61.361	91.780	158.277	173.575
[g] Reserves	--	--	--	--
[h] Net Worth	61.361	91.780	158.277	173.575
[i] Current Ratio	1.25:1	1.62:1	1.77:1	1.66:1

OPERATING STATEMENT

Rs in Millions

Particulars	2008-09 Estimated	2009-10 Projected
1. Gross Sales
Sales – Export	650.000	780.000
Sales – Local	0.000	0.000
	650.000	780.000
Add : Other Incentives, discount exchange difference etc.	62.500	65.000
Total	712.5000	845.000
2. Less : Excise Duty
Other Items
3. Net Sales	712.500	845.000
4. % rise [+] or fall [-] in net sales as compared to previous year	1.876	1.860
5. COST OF SALES
i] Raw Materials [Including stores and other items used in the process of manufacture]
[a] Imported	27.000	--
[b] Indigenous	542.000	654.000
	569.000	654.000
ii] Other Spares
[a] Imported
[b] Indigenous
iii] Power and Fuel	0.450	0.800
iv] Direct labour [Factory Wages and Salaries]	2.900	4.500
v] Other direct expenses – electroplating, packing charges	18.700	28.000
vi] Depreciation	1.000	1.100
vii] SUB TOTAL [i to iv]	592.050	688.400
viii] Add : Opening Stocks – in – process	--	--
Sub Total	592.050	688.400
ix] Deduct : Closing Stock – in – Process	--	--
x] Cost of production	592.050	688.400
xi] Add : Opening Stock of finished goods	24.252	63.750
xii] Deduct: Closing Stock – in - finished goods	63.750	85.000
xiii] Total Cost of Sales	552.552	667.150
6. Selling general and administrative expenses	47.500	57.500
7. SUB – TOTAL [5+6]	600.052	724.650
8. Operation profit before interest [3-7]	112.448	120.350
9. Interest	3.600	4.000
10. Operating profit after interest [8-9]	108.848	116.350
11. i] Add : other non-operating income	--	--
ii] Deduct other non-operating expenses	--	-
iii] Net of other non-operating income / expenses	--	--
12. Profit before tax / Loss [10+11[iii]]	108.848	116.350
13. Provision for taxes	36.997	39.547
Partners Salary	--	--
14. Net profit / loss [12-13]	71.851	76.803
15 [a] Equity Dividend Paid	--	--
[b] Dividend Rate	--	--
16. Retained profit [14-15]	--	--
17. Retained profit / Net profit [%]	--	--

ANALYSIS OF BALANCE SHEET

Rs in Millions

Particulars	2008-09 Estimated	2009-10 Projected
CURRENT LIABILITIES
01 Short – Term borrowings from banks [including bill purchased, discounted and excess borrowings placed on repayment basis]
I] From Bank EPC	35.000	42.000
II] BP and BD	25.000	35.000
Sub Total [A]	60.000	77.000
02 Short Term Borrowings from others	--	--
03 Sundry creditors [Trade]	35.000	35.000
04 Advance payments from customers  / Deposits from dealers	6.500	7.500
05 Provision for tax [net of Tax paid]	95.848	135.396
06 Dividend and Dividend Tax payable	--	--
07 other statutory liabilities [due within one year]	--	--
08 Deposits / Installments of term loans / DPGs / debentures, etc [due within one year]	--	--
09 Other current liabilities and provisions [due within one year]	1.000	1.200
Sub – Total [B]	138.348	179.096
10 TERM LIABILITIES [Total of 1 to 9]	198.348	256.096
11 Debentures [not maturing within one year]	--	--
12 Preference Shares [Redeemable after 1 year]	--	--
13 Term loans [excluding installments  payable within one year]	--	--
14 Deferred Sales Tax / Deferred Loan Deferred Payment Credit [Excluding installments due within one year]	--	--
15 Term deposit [repayable after one year]	--	--
16 other Term Liabilities	--	--
17 TOTAL TERM LIABILITIES [Total of 11 to 16]	--	--
18 TOTAL OUTSIDE LIABILITIES [10 + 17]	198.348	256.096
NET WORTH
19 Partner’s Capital Account	158.277	173.575
20 General Reserve	--	--
21 Revaluation Reserve	--	--
22 Other Reserves [Excluding provisions]	--	--
23 Surplus [+] or deficit [-] in Profit and Loss Account	--	--
Less : Drawings	--	--
24 NET WORTH [19+23]	158.277	173.575
25 TOTAL LIABILITIES [18+24]	356.625	429.671
CURRENT ASSETS
26 Cash and Bank Balance	1.500	2.500
27 Investments [Other than long term investments] Government and other Trustee securities
I] Fixed deposit with bank	--	--
II] Share with Co-operative Bank	26.000	28.000
28 I] Receivables other than deferred and exports [Including bills purchased and discounted by banks]
II] Export receivables [Including bills purchased / discounted by banks]	95.000	100.000
29 Instalments of Deferred  receivables [due within one year]	--	--
30 Inventory	--	--
I] Raw materials [Including stores and other items used in the process of manufacture]
Imported	--	--
Indigenous	--	--
II] Stock – in – process
II] Finished Goods	83.750	105.000
IV] Other consumable spares
Imported	--	--
Indigenous	--	--
31 Advances recordable in Cash or kind
32 Advance payment of taxes [NET]	74.223	118.771
33 Excise and Sales Tax Refund
Other current assets	67.400	65.000
I] Advance to Subsidiaries	--	--
II] Other Advance -	3.000	5.000
34 TOTAL CURRENT ASSETS [Total of 26 to 33]	350.873	424.271
FIXED ASSETS
35 Gross Block	6.752	6.500
36. Depreciation to date	1.000	1.100
37 NET BLOCK [35-36]	5.752	5.400
OTHER NON – CURRENT ASSETS
38 Investments / book / debts / advances / deposits which are not Current Assts
I] [a] Others Investments in Subsidiary	--	--
[b] Others companies / affiliates	--	--
II] Advances to suppliers of capital goods and contractors	--	--
III} Deferred receivables [maturity exceeding one year]	--	--
IV] Others	--	--
39 Non consumables Stores and Spares	--	--
40 Other non – current assets including dues from directors	--	--
41 TOTAL OTHER NON – CURRENT ASSETS [total of 38 to 40]	--	--
42 Intangible assets [Patents, goodwill, prelim, expenses, bad / doubtful debts Not provided for etc.]	--	--
43 TOTAL ASSETS [Total of 34, 37, 41 and 42]	356.625	429.671
44 TANGIBLE NET WORTH [24-22]	158.277	173.575
45 NET WORKING CAPITAL [17 + 24]-[37+41+42]	152.525	168.175
46 Current Ratio  [Items 34/10]	1.77	1.66
47. Total Term Liability / Tang. Net Worth [18/44]	1.25	1.48
48. Total Term Liab / tang. Net Worth [17/44]	--	--
RATIOS NET OF REVALUATION RESERVES
49. TANGIBLE NET WORTH [24-21-42]	158.277	173.575
50. TOTAL OUTSIDE LIABILITIES / TANGIBLE NETWORTH	1.25	1.48
51. TOTAL TERM LIABILITIES / TANGIBLE NET WORTH	--	--

COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES

[Rs in Millions]

Particulars	2008-09 Estimated	2009-10 Projected
A CURRENT ASSETS
1 Raw Materials
[a] Imported
Months Consumption
[b] Indigenous
Months Consumption
2 Other consumable spares
Excluding those included 1 above
[a] Imported
Months Consumption
[b] Indigenous
Months Consumption
3 Stock in process
Months cost of production
4 Finished goods	83.750	105.000
Months cost of sales	0.184	0.191
5 Receivable other than export and deferred receivables [including bills purchased and discounted by bankers]
Months domestic sales
[excluding deferred payment sales]
6 Export receivables [including bills purchased and discounted]	95.000	100.000
months export sales	0.178	0.156
7 Advances to suppliers of raw materials and stores / spares consumable
8 Other current Assets including cash and bank balances and deferred receivable due within one year
Cash and Bank Balance	1.500	2.500
Others	170.623	216.771
9 TOTAL CURRENT ASSETS	350.873	424.271
B CURRENT LIABILITIES
[Other than bank borrowing for working capital]
10 Creditors for purchases of raw materials and stores and consumable spares	35.000	35.000
Months Purchase	0.075	0.065
11 Advances from customers	6.5000	7.500
12 Statutory liabilities	--	--
13 Other current liability including short term borrowing dividend payable, installment of DPG public deposit, debentures etc	1.000	1.200
Other Current Liability and Provision	95.848	135.396
14 TOTAL	138.348	179.096

MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

[Rs in Millions]

Particulars	2008-09 Estimated	2009-10 Projected
First Method of Lending
1. Total Current assets	350.873	424.271
2. Other Current Liabilities
[Other than bank borrowings]	138.348	179.096
3. Working Capital Gap – WCG	212.525	245.175
4. Maximum Stipulated Net Working Capital [25 % of WCG excluding Export Receivables]	29.381	36.294
5. Actual / Project Net Working Capital	152.525	1168.175
6. Item : [3-4]	183.144	208.881
7. Item : [3-5]	60.000	77.000
8. Maximum Permissible Bank Finance Lower of 6 or 7	60.000	77.000
9. Excess borrowing representing short – fall in NWC	--	--
Second Method of Lending
1. Total Current Assets	350.873	424.271
2. Other Current Liabilities	138.348	179.096
[Other than bank borrowing]
3. Working Capital Gap – WCG	212.525	245.175
4. Minimum Stipulated Net Working Capital [25 % of Total Current Assets excluding Export Receivables]	63.968	81.068
5. Actual / Projected Net Working Capital	152.525	168.175
6. Item : [3-4]	148.557	164.107
7. Item : [3-5]	60.000	77.000
8. Maximum Permissible Bank Finance Lower of 6 or 7	60.000	77.000
9. Excess borrowing representing short – fall in NWC	--	--

INVENTORY REQUIREMENT ASSESSMENT IS SHOW

Rs in Millions

Particulars	2008-09 Estimated	2009-10 Projected
Stock and Advance to Suppliers	83.750	105.000
Less : 10 % Margin	8.375	10.500
	75.375	94.500
Less : Creditors	35.000	35.000
Eligible Limit	40.375	59.500
Limit Required	45.000	45.000

FUND FLOW STATEMENT

Rs in Millions

Particulars	2008-09 Estimated	2009-10 Projected
SOURCES
1 Net Profit [after tax]	71.851	76.803
[a] Depreciation	1.000	1.100
[b] Increase in [i] Partner’s Capital	66.497	15.298
[c] [ii] Other Term Liabilities	--	--
Increase in Unsecured Loans	--	--
[d] Increase in Deferred Payment Credits Decrease in	--	--
[e] Other non-current assets	--	--
Fixed Assets
[f] Others	--	--
[g] TOTAL	139.348	93.201
2 USES [a] Net Loss
[b] Decrease in Term Liabilities [Including A Closely Held Public Limited Liability Company Deposits]	--	--
[c] Increase in
Other Non Current Assets	--	--
Fixed Assets	[1.000]	[0.352]
Other Non-Current Assets	--	--
Dividend Payment	--	--
Others	--	--
[f] Total	[1.000]	[0.352]
3 Long – Term Surplus [+] / Deficit [-] [Item 1 minus Item 2]	140.348	93.553
4 Increase / Decrease in Current Assets [As per details given below]	128.148	73.397
5 Increase / Decrease in Current Liabilities other than bank borrowings.	41.375	40.747
6 Increase / Decrease in Working Capital Gap	[86.773]	[32.650]
7 Net Surplus [+] / Deficit [-] [Difference of 3 & 6]	53.575	60.903
8 Increase / Decrease in Bank Borrowings	19.276	17.000
INCREASE / DECREASE IN NET SALES	295.949	252.950
BREAK UP OF [4]
[i] Increase / Decrease in raw Materials	--	--
[ii] Increase / Decrease stock – in – process	--	--
[iii] Increase / Decrease in Finished goods	41.932	21.250
[iii] Increase / Decrease in Receivables
[a] Domestic	--	--
[b] Exports	24.202	5.000
[v] Increase / Decrease in Store and Spares	--	--
[vi] Increase / Decrease in other Current Assets	62.014	47.147
Total	128.148	73.397

ASSUMPTIONS AND CLARIFICATION TO CMA STATEMENT :

• The firm is into 100 % export business, hence P.C.L. / finance is required against confirmed orders with 10 % margin as per RBI norms. Similarly Post Shipment finance also.
• The export orders and export executions are generally seasonal and unseasonal as they are depand upon so many external factors. Mostly, to take advantage of cost benefits and other advantages they have to book bulk orders. They get bulk orders, and they book forward bulk Raw materials for completion of orders with in short time. In such situation, as large advances are to be made to suppliers, the level of stocks and advances to suppliers reaches the optimum. Once the order execution is completed, the level of stocks and advances come down. Therefore CMA data given now and the assessment of MPBF, current ratio, net working capital etc. will become redudent and finance should be made only relying on export orders.
• The peak businesses and financial year ending does not coninside. Hence mismatches are happening resulting in Queries from banks. Hence a practical view is to be given for sanction of limits instead of relying on CMA data / MPBF.
• Many a times even on a given date it may happen so that, creditors for goods outstanding may be more than stock level. This is because, good procured are in the process of shipment, but bills are on collection. Correspondingly creditors will remain high till bills are sent to bank for collection / discount. From collection realization or Discount proceeds, cheques are issued to settle creditors. In this process time creditors. In this process time creditors are likely to be clubbed together and they creditors to be deducted, to drive at real picture.

STATEMENT OF ASSETS AND LIABILITIES

MR. SUBHASH R. GADA

Annual Income	Sources	Sources
2006-07	Business	Rs. 18.131 Millions

Investment in business Capital :

Name of the Company / firm / concern in which investment is made	Amount Invested Rs in Millions
Oriental Export Corporation Shop No. 9, Gurunanak Chs. Shankar Lane, Kandivali [West], Mumbai – 67	28.721
United Enterprises 9, Chintamani Apartments, S. V. P. Road, Shankar Lane, kandivali [W], Mumbai – 67	5.314
Total	34.035

Deposits held with Banks :

Nature of Deposits held	Amount Invested Rs in Millions
Fixed Deposits	35.146

Immovable Properties

Name of the owner	Description of property	Location of property	Extent of building area constructed
Subhash Gada	Flat	C – 206, Chintamani Apartments, S. V. P. Road, Kandivali [W], Mumbai - 67	660 sq. ft.

Type of property	Date of purchase of property	Original purchases cost	Present market value as on
Residential	April 1984	Rs. 0.210 Million	Rs. 3.000 Millions

Total Assets : Rs. 72.181 Millions

Net Worth : Rs. 72.181 Millions

MRS. SUSHILA S. GADA

Annual Income	Sources	Sources
2006-07	Business	Rs. 38.473 Millions

Investment in business Capital :

Name of the Company / firm / concern in which investment is made	Amount Invested Rs in Millions
Oriental Export Corporation Shop No. 5, Gurunanak Chs. S. V. P. Road, Kandivali [West], Mumbai – 67	63.058

Deposits held with Banks :

Nature of Deposits held	Amount Invested Rs in Millions
Fixed Deposits	48.821

Immovable Properties

Name of the owner	Description of property	Location of property	Extent of building area constructed
Sushila S. Gada	Flat	C – 406, Chintamani Apartments, S. V. P. Road, Kandivali [W], Mumbai - 67	660 sq. ft.

Type of property	Date of purchase of property	Original purchases cost	Present market value as on
Residential	1998	Rs. 1.000 Million	Rs. 3.000 Millions

Total Assets : Rs. 114.879 Millions

Net Worth : Rs. 114.879-- Millions

AS PER WEBSITE

Profile :

Established in 1974, Oriental Export Corporation is a privately owned company manufacturing Brass & Copper Accessories. All the products manufactured are directly exported to more than 20 countries.

The company is continuously developing new products as per the customer’s requirements & over the years they have developed vast range of products for various application & installation industry.

Quality:
A Comprehensive product range are manufactured & certified to ISO 9002 Quality approval system. Many of the products are tested and hold approvals from many international standards.

Services:
The company main goal is to supply the customer’s quality products at competitive prices & timely delivery; Customers Designs & specification are accepted.

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 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.47.94
UK Pound	1	Rs.72.08
Euro	1	Rs.64.70

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	YES
--AFFILIATION	YES/NO	NO
--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