MIRA INFORM REPORT

Report Date :

09.06.2008

IDENTIFICATION DETAILS

Name :	SUPERTECH CONDUCTORS (GUJARAT) PRIVATE LIMITED
Registered Office :	Plot No. 244/15 GIDC Industrial Area Estate, Umbergaon – 396 171, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	24.08.1987
Com. Reg. No.:	04-9916
CIN No.: [Company Identification No.]	U32201GJ1987PTC009916
PAN No.: [Permanent Account No.]	AAECS2386-I
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporter of Copper Commutator, Section, Segment, Strips and Profiles As Per Customer Specification and Drawing and Copper Rods, Strips, Flats, Director CC Wires Super Enamelled Copper Wires and Conductors.

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 48000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and reputed company meetings its normal commitments timeously. Trade relations are fair. Business is active. The company can be considered good for normal business dealings.

INFORMATION PARTED BY

Name :	Mr. Mehul
Designation :	Accountants
Date :	06.06.2008

LOCATIONS

Registered Office/ Factory :	Plot No. 244/15 GIDC Industrial Area Estate, Behind Hotel Round corner, Umbergaon – 396 171, Gujarat, India
Tel. No.:	91-260-3291752 / 2563632 / 3
Mobile No.:	91-9322407757
Fax No.:	91-260-2563622 / 2562132
E-Mail :	super726@vsnl.net hiten@supertechgroup.co.in
Area :	Owned
Location :	2000 Sq.fts

DIRECTORS

Name :	Mr. Arvind Gajraj Hirani
Designation :	Director Cum Chairman
Address :	4, Poonam Building, Daulat Nagar Road, No. 3, Borivali (East), Mumbai – 400 066, Maharashtra, India
Date of Birth/Age :	15.08.1954
Qualification :	SSC
Date of Appointment :	24.08.1987
Name :	Mr. Ramesh Gajraj Jain
Designation :	Director
Address :	D -48, Denhor Apartments, Chandravarkar Road, Borivali (West), Mumbai – 400 092, Maharashtra, India
Date of Birth/Age :	24.11.1957
Qualification :	SSC
Date of Appointment :	24.08.1987
Name :	Mr. Jigna Arvind Hirani
Designation :	Director
Address :	4, Poonam Building, Daulat Nagar Road, No. 3, Borivali (East), Mumbai – 400 066, Maharashtra, India
Date of Birth/Age :	18.01.1980
Qualification :	B Com
Date of Appointment :	28.07.1998
Name :	Mr. Hiten Hirani
Designation :	Director
Address :	4, Poonam Building, Daulat Nagar Road, No. 3, Borivali (East), Mumbai – 400 066, Maharashtra, India
Date of Birth/Age :	06.07.1978
Qualification :	HSC
Date of Appointment :	01.06.1999

KEY EXECUTIVES

Name :	Mr V C Khambata
Designation :	Company Secretary
Address :	14-B, Jawahar society, Halar Road, Valsad – 396 001, Maharashtra,India
Tel No.:	91-2632 – 243254
Mobile No.:	91-9427869342

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (as on 31.03.2007):-		No. of Shares
Mr. Arvind Gajraj Hirani		21450
Mrs. Pushpa Arvind Hirani		4600
Mr. Ramesh Gajraj Jain		4900
Mr. Babulal Hirani		500
Mts. Jaybala Ramesh Jain		500
Mr. Rajmal Hirani		650
Mr. Hiten Arvind Hirani		2625
Mr. Prakash Rajmal Hirani		250
Others		50
	Total	35525

Equity Shares Breakup (Percentage of Total Equity): as on 31.03.2007:-

Sr No.	Category	Percentage
1	Directors or relative of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and Exporter of Copper Commutator, Section, Segment, Strips and Profiles As Per Customer Specification and Drawing and Copper Rods, Strips, Flats, Director CC Wires Super Enamelled Copper Wires and Conductors.
Exports :
Countries :	France, Virginia, South Africa
Terms :
Selling :	Credit (30 days)
Purchasing :	L/C, Cash, Credit and Bank guarantee

GENERAL INFORMATION

Customers :	Direct Customers
No. of Employees :	30 (5 in Office and 25 in Factory)
Bankers :	State Bank of India Address: GIDC Estate Branch, Umbergaon – 396 171, Gujarat, India
Facilities :	B/G, L/C, C/C – Rs. 17.500 millions
Banking Relations :	Satisfactory
Auditors :
Name :	R M Bhatt Chartered Accountants
Address :	G -11, Indrapuri , Sodawalalane, Borivali (West), Mumbai – 400 092, India
Associates/Subsidiaries :	Vijay Industries , Daman

CAPITAL STRUCTURE

(As on 31.03.2007):-

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs. 100/-each	Rs. 5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
35525	Equity Shares	Rs. 100/- each	Rs. 3.553 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		3.553	3.553	3.552
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.896	4.214	4.102
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9.449	7.767	7.654
LOAN FUNDS
1] Secured Loans		10.280	2.347	2.512
2] Unsecured Loans		8.581	1.183	1.380
TOTAL BORROWING		18.861	3.530	3.892
DEFERRED TAX LIABILITIES		0.000	0.005	0.000
TOTAL		28.310	11.302	11.546
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.514	1.553	1.768
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.085	0.000	0.021
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	9.960	6.207	3.932
	Sundry Debtors	18.043	6.796	9.014
	Cash & Bank Balances	5.523	0.235	0.723
	Other Current Assets	0.101	0.090	0.090
	Loans & Advances	3.383	0.250	0.142
Total Current Assets		37.010	13.578	13.901
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	10.016	3.745	4.094
	Provisions	0.296	0.100	0.067
Total Current Liabilities		10.312	3.845	4.161
Net Current Assets		26.698	9.733	9.740
MISCELLANEOUS EXPENSES		0.013	0.016	0.017
TOTAL		28.310	11.302	11.546

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		113.690	11.897
Other Income		3.468	6.543
Total Income		117.158	18.440
Profit/(Loss) Before Tax		1.640	0.238
Provision for Taxation		[0.042]	0.134
Profit/(Loss) After Tax		1.682	0.104
Expenditures :
	Financial charges	1.329	0.687
	Increase/(Decrease) in Finished Goods	[0.974]	[2.017]
	Depreciation & Amortization	0.226	0.252
	Other Expenditure	114.937	19.280
Total Expenditure		115.518	18.202

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	1.46	0.56	NA
Net Profit Margin (PBT/Sales)	(%)	1.44	2.00	NA
Return on Total Assets (PBT/Total Assets}	(%)	4.25	1.57	NA
Return on Investment (ROI) (PBT/Networth)		0.17	0.01	NA
Debt Equity Ratio (Total Liability/Networth)		3.09	0.95	1.05
Current Ratio (Current Asset/Current Liability)		3.59	3.53	9.74

LOCAL AGENCY FURTHER INFORMATION

TRUSTEAL ACCEPTANCE CHART :-

PARAMETER	DETAIL
Statutory Approval
Income Tax Registration	AAECS2386-I
Central Sales Tax Registration	24750500372
State Sales Tax Registration	24250500372
Import Export Code	3494000603
Emp PF Reg Number	GJ/23776
Credibility Factors
India Mart Client Since	3 years
Trade Affiliations
SSI Registration	04/19/62317 dated 07.06.1989
Standard and certifications
Quality Management Systems	ISO : 9001-2000 (Valid upto Dated 31.07.2009

TRADE REFERENCES:

· ABB, Nasik-423 502, Maharashtra, India

· Jay Limited, Vadodara – 390003, Gujarat, India

· Mega Win, Selam – 796 290, India

FORM 8:-

Corporation identity number or foreign company registrations number of the company	U32201GJ1987PTC009916
Name of the company	SUPERTECH CONDUCTORS (GUJARAT) PRIVATE LIMITED
Address	Plot No. 244/15 GIDC Industrial Area Estate, Behind Hotel Round corner, Umbergaon – 396 171, Gujarat, India
This Form is for	Modification of charge
Type of Charges	Immovable property
Particular of the charge holder	State Bank of India Address: GIDC Estate Branch, Umbergaon – 396 171, Gujarat, India E-mail: sbi.09306@sbi.co.in
Nature or description of the instrument creating charge	Extension of mortgage by deposit of title deeds
Date of the instrument creating charge	05.03.2007
Amount Secure by the charge	Rs. 13.700 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest : 13.75% Terms of Repayment: Repayable on Demand Margin: Raw materials 25% Semi finished goods 40% Finished goods 30% book Debts 50% Letter of credit – Margin: 25% Extent and operation of the charge: First charge in favour of State Bank of India
Short Particulars of the Property charged	All that piece of land at survey No. 174/P, plot No. 244/15, GIDC, Umbergaon Industrial Area, Village, Umbergaon district, Valsad together with the building, and other structures, erections and godowns together with any thing attached to the earth.
Particulars of the present modification	The original charge further extended to secure enhanced aggregate limit of Rs. 13.700 millions.

Name of the company

SUPERTECH CONDUCTORS PRIVATE LIMITED

Presented By

The Branch manager, State Bank of India, GIDC, Estate Branch, Umbergaon, Gujarat, India

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

Agreement for the grant of small Industrial Advances , Ancillary Agreement No. 1

Agreement for the grant of small Industrial Advances, ancillary agreement No. 3

Agreement for the grant of small Industrial Advances, Ancillary Agreement No. 6

(Working capital Finance) Dated 30.03.1999

All charges constitute as single charge.

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

Rs. 8.800 millions

Particulars	Rs. in millions
DCC	6.000
DP Purchase	1.000
L/C	1.800
Total	8.800

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 the present and future goods , book debts, movable and other assets of the borrower including document title to goods and other assets , such as outstanding monies , receivable , claims, bills, invoices, documents, contract, engagement, securities, investments and rights and the present machinery listed in the annexure to the agreement and all future machinery belonging to or in the possession or under the control of the borrower where lying stored and kept and whether in possession of the borrower or of the bank or of any third party \whether in India or elsewhere throughout the world (including all such goods, movables and other assets as may be in the courser of shipment, transit or delivery) shall stand hypothecation to the bank by way of first charge (subject to any charge in favour of any third party which may have been notified by the borrower and accepted by the bank as having priority over its own charge ) as security.

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

Interest at the rate of 2.75% over SBAR with a minimum of 16.06% p.a

Demand cash credit	Margin
Raw materials	25%
Semi finished goods	40%
Finished goods	30%
Book Debts	50%
Letter of credit Margin	25%

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

State Bank of India

GIDC Estate Branch, Umbergaon – 396 171, District Valsad, Gujarat, India

6) Date and brief description of instrument modifying the charge

NA

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.

NA

WEBSITE DETAILS:

Company Profile:-

Subject was incorporated in the year 1986, and it is a part of Supertech Group. They are engaged in manufacturing, supplying and exporting copper conductor rods, strips, segments, and other parts made of high grade copper. Initially they had started with the objective to manufacture Commutator and successfully they became an established name in the industry. After achieving a strong place in the field of Commutators in 1990, they gradually diversified their activities in the field of manufacturing complete armature stacks for traction motor, generators etc. Other than this, they even provide other services in rotating electrical machine industries that is rewinding, re insulation, servicing etc.

With over two decades in the industry and two sister concerns, they have attained a strong place in the market. They are a leading firm growing with their parent company and sister concerns.

· Commutator

· Copper Strip

· Copper High Conductivity Bar

· Copper Rods

· Copper Punch Segments

· MICA Segment

· Profile and Ground Rods

· Copper Commutator Section

Their copper rods, strips, flasts, bars, wires, copper commutator segment and section to the satisfaction of their customers in terms of quality and timely delivery by meeting with requirements.

Parent Company and Sister Concerns:

Their parent company Supertech Group is a pioneer name in the industry. With a more than two decades, the company has emerged out as a reckoning name placed in a very strong position. Mjorly they are a well known player in copper strips, items based upon copper. Other than their parent they have two sister concerns which are:

· Power Pack Comutators

· Vijay Industries.

Products Profile:

Manufacturer Supplier and Exporter of conductor rods, strips, segments, and other parts made of high grade copper. Their vast range includes commutator, copper strip, copper high conductivity bar, copper roads bars, copper punch segments, MICA segments, profile and ground rods and copper commutator sections.

All their products possess the Following features:

· Long lasting

· Resistant to extreme temperature variations

· Custom made

Quality Assurance:

All their products are manufactured under RIGID quality control standards which very well confirm to IS / BS / DIN / JIS / ASTM and to the customers specifications. They have full fledge quality inspection division wherein they have all the testing facilities for raw material, in process production and finished product. They are committed to improve their product quality by constantly refining their processes and implementing ISO 9001:2000 quality management system. All the products are tested on account of their dimensions, size, thickness and various other factors. They have with them a pool of experienced quality analysts who check the products on all parameters. Once these professional approve the product, only then they forward it for final delivery.

Methodology:

They follow a systematic process of manufacturing their products. Their well coordinated manner in their work enables them to maintain timeliness and they easily meet the target. Following are the step by step they follow:

· Receipt of raw material

· Hot rolling

· Picking

· Washing

· Pointing

· Drawing and Inspection

· Final inspection

· Cutting

· Straightening

· Packing

· Dispatch

In the above flow of work, buffering, rolling, annealing, pickling are the integral processes executed when it comes to manufacturing copper bus bars, strips and sections.

Manufacturing Facility:

Their well integrated unit spreads to a wide area encompassing all the facilities which are required for optimum production. The entire unit has an excellent working atmosphere with utmost cleanliness. They have a favorable accessibility to transport, communication, water and other necessary facilities. Here, they have advanced technologies, machinery and safe packaging facilities. The unit is well divided into departments pertaining to manufacturing, quality, design and other related ones. Following are the modern machines they are having with them:

· Sheet Making Machines

· Grinders

· Lathe Machines

· Drilling Machines

· Rolling Machines

Clients:

· ABB Limited

· BHEL

· Indian Railways

· Jyoti Limited

· Larsen and Ttheirbo

· Cromption Greaves Limited.

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.42.79
UK Pound	1	Rs.83.77
Euro	1	Rs.66.71

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	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