MIRA INFORM REPORT

Report Date :

17.06.2008

IDENTIFICATION DETAILS

Name :	COVENTRY COIL O MATIC (HARYANA) LIMITED
Registered Office :	87, KM Stone Delhi-Jaipur Highway Village Salawas, P O Sangwari, Rewari-123401, Haryana
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	23.09.1988
Com. Reg. No.:	05-30370
CIN No.: [Company Identification No.]	L74999HR1988PLC030370
Legal Form :	Public Limited Liability Company. The Company’s shares are listed on Stock Exchanges.
Line of Business :	Manufacturers of Parts and Accessories for Motor Vehicles and their Engines.

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 240000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office/ Factory :	87, KM Stone Delhi-Jaipur Highway Village Salawas, P O Sangwari, Rewari-123401, Haryana, India
Tel. No.:	91-01274-249369/ 68/70/ 371
Fax No.:	91-01274-249372
E-Mail :	info@coilomatic.com, coventry.coil@india.com cchraja@nda.vsnl.net.in
Website:	www.coventrycoil.co.in
Administrative Office :	Delhi 209, Hans Bhawan, 1, Bahadur Shah Zafar Marg, New Delhi-110002, India
Tel. No.:	91-11-23370390/ 23379986
Fax No.:	91-11-23370621

DIRECTORS

Name :	Mr. Narendra Mal Bafna
Designation :	Managing Director
Address :	1476, Gawande Layout, Sneh Nagar, Nagpur-440015, Maharashtra
Date of Birth/Age :	04.12.1947
Date of Appointment :	23.09.1988
Name :	Mr. Rajendra Mal Bafna
Designation :	Whole time Director
Address :	Coventry Coil O Matic Haryana Limited, Village Salawas, Post Sangwari, Rewari-123401, Haryana
Date of Birth/Age :	23.06.1952
Date of Appointment :	16.03.1996
Name :	Mr. Ashok Mal Bafna
Designation :	Director
Address :	57, Raja Basanta Roy Road, Kolkata-700029, West Bengal, India
Date of Birth/Age :	04.02.1946
Date of Appointment :	23.09.1988
Name :	Mr. Arun Kumar Mittal
Designation :	Director
Address :	D 810, New Friends Colony, New Delhi-110065
Date of Birth/Age :	30.06.1954
Date of Appointment :	30.01.2002
Name :	Mr. Sharad Malhotra
Designation :	Director
Address :	# 828, Sector 4, Urban Estate, Gurgaon-122001, Haryana
Date of Birth/Age :	30.10.1974
Date of Appointment :	30.08.2003
Name :	Mr. Basant N Singhvi
Designation :	Director
Address :	B-7/113, Safdarjung Enclave, New Delhi-110029
Date of Birth/Age :	19.01.1952
Date of Appointment :	28.04.2004
Date of Ceasing :	30.09.2004
Name :	Mr. Harbaksh Singh
Designation :	Chairman cum Managing Director
Address :	Sector 24, H No.1022, Chandigarh-160017, Chandigarh
Date of Birth/Age :	15.04.1957
Date of Appointment :	04.08.1999
Date of Ceasing :	29.06.2002
Name :	Ms. Ansuya P Chamoli
Designation :	Director
Address :	Sector 8B, House No.597, Chandigarh-160017, Chandigarh
Date of Birth/Age :	18.08.1952
Date of Appointment :	19.06.1997
Date of Ceasing :	05.08.2002
Name :	Mr. Prabhak G Lele
Designation :	Director
Address :	106, Pariwar Apartment, NTS PNO 30, Patarganj, Delhi-110092
Date of Birth/Age :	04.11.1934
Date of Appointment :	21.02.1994
Date of Ceasing :	30.10.2001
Name :	Mr. Goutam Bhattacharya
Designation :	Director
Address :	BK 181, Sector 2, Salt Lake, Kolkata-700091, West Bengal
Date of Appointment :	30.10.2002
Date of Ceasing :	25.09.2003
Name :	Mr. Yudhister Kumar Bhatia
Designation :	Director
Address :	HSIDC Plot No.13 and 14, Sector 6, Punchkula-134109, Haryana
Date of Birth/Age :	12.05.1949
Date of Appointment :	18.08.2000
Date of Ceasing :	30.07.2002
Name :	Mr. Raj Kumar Gupta
Designation :	Director
Address :	HSIDC Plot No.13 and 14, Sector 6, Punchkula-134109, Haryana
Date of Birth/Age :	19.08.1946
Date of Appointment :	29.06.2002
Date of Ceasing :	05.08.2002
Name :	Mr. Mahavir Singh
Designation :	Director
Address :	HSIDC Plot No.13 and 14, Sector 6, Punchkula-134109, Haryana
Date of Birth/Age :	08.08.1961
Date of Appointment :	30.07.2002
Date of Ceasing :	05.08.2002
Name :	Mr. Dhanendra Kumar (IAS)
Designation :	Director
Name :	Mr. Venu Nallur
Designation :	Director
Name :	Mr. Krishan Kumar Sharma
Designation :	Director
Name :	Mr. Jagdish Chandra Malhotra
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Jay Prakash Lodha
Designation :	Company Secretary
Address :	The Government Emp. GHS Limited, Flat No.O-3, Sector 3, Part II, Bawal Road, Rewari-123401, Haryana
Date of Birth/Age :	16.05.1969
Date of Appointment :	01.04.1999

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

[As on 31.03.2007]

Names of Shareholders	No. of Shares	Percentage of Holding
Promoters	2170450	48.15
Private Corporate bodies	306530	6.80
Banks	300	0.00
NRI'S/OCB'S	5025	0.11
General publics	2025695	44.94
Total	4508000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Parts and Accessories for Motor Vehicles and their Engines.

Products :

Type of Products

Compression Springs

Standard, Barrel, Conical, Hour Glass, Pig Tail and Miniblock

Extension Springs (Tension)

All tyoes of extension and all kinds of Hooks

Torsion Springs

Single and Dohuble Torsion

Wire Forms

All kinds of Wire Forms.

Product Description	ITC Code
Helical Springs	732020.00
Coil Springs for Railways	732090.01
Other Springs	732090.09

PRODUCTION STATUS

(As on 31.03.2005)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Coil Springs	MT		4000.000	3273.281

GENERAL INFORMATION

Customers :

v Maruti Suzuki

v Tata Motors

v Sundaram Clayton

v Bajaj Tempo

v Alstom Limited

v ABB Limited

v BHEL

v Bombardier Transportation India Limited

v Eicher Tractors Limited

v Enexco Limited

v Gerb Vibration Limited

v Miltech Industries Private Limited

v Minda Impco Limited

v Pipe Supports Indi Private Limited

v Railways

v Rifle Factory/ Small Arms Factory

v Salter India Company

No. of Employees :

About 200

Bankers :

• ICICI Bank Limited
• IFCI Limited
• Bank of India
• HDFC Bank Limited
• Industrial Development Bank of India

Facilities :

[As on 31.03.2007]

Secured Loans	[Rs. In millions)
From financial institutions/Banks	77.200
Loan from Bank	1.398
Interest Accrued and due	12.160
Total	90.758

Unsecured Loans :

From other Bodies Corporate	1.200
Interest accrued and due	0.026
Total	1.226

Note :

SECURED LOAN:

A) Term Loans from Financial Institutions are secured by first mortgage ranking pari-passu of all the immovable properties both present and future and a first charge by way of hypothecation of all the movables (save & except book debts) including movable machinery, spares, tools & accessories, present & future subject to prior charge to be created in favour of the company's bankers on the stock of raw materials, semi-finished and finished goods, consumable stock and such movables as may be agreed by the lead institution for securing the working capital requirements.

B) Lenders have at their option a right to convert the 20% of outstanding amount into fully paid equity shares, in the event of default by the Company in payment of principal and / or interest.

C) ICICI Bank Ltd (ICICI), who was the lead institution, has filed a Winding-up petition in Hon'ble Punjab and Haryana High Court, Chandigarh on 08.10.2004, which is still pending. However, the possibility of the Company being wounded-up appears to be remote. In the meanwhile ICICI has assigned its Debts to Kotak Mahindra Bank Ltd. (KMBL) and the same has been objected by the Company Pending the aforesaid petition, in a joint meeting dated 19th June 2006 calle.d by IDBI, the Company's representatives met the representatives of all the Financial Institutions/Banks, for settlement of the outstanding Secured Loans. The Financial Institutions/Banks proposed for a settlement at the principal amount of Rs. 77.200 Millions. The Company, however, expressed its desire for a One Time Settlement

(OTS) as per the parameters and norms of the NPA guidelines issued by Reserve Bank of India (RBI), which are mandatory to all Financial Institutions/Banks. The total dues which would be payable to the Financial Institutions/Banks under the NPA Guidelines works out Rs. 0.262 Millions, after adjusting Rs. 1101.887 Millions already paid by the Company to the consortiun of the financial Institutions / Banks till 28.10.2005. The Company also filed a petition in the Hon'ble Court for directing the Financial Institutions/

Bank to accept the said amount of Rs. 2.621 Millions and the same is pending.

In the meanwhile, KMBL filed a recovery suit in the Debt Recovery Tribunal (DRT), Delhi which is pending in the DRT Court.

In view of the above, write back/provisions of interest & other charges on Secured Loans in the Accounts, of amount being unascertainable, will be made as and when the matters are finally settled.

D) Loan from ICICI Bank Limited, against hypothecation of motorcars

Banking Relations :	Satisfactory
Auditors :
Name :	Singhi & Company Chartered Accountants
Address :	402, Pragati House, 47-48, Nehur Place, New Delhi-110019
Associates/Subsidiaries :	Coventry Spring and Engineering Company Limited Bangalaxmi Steel Trading Company Limited Castleton Tea Company (Private) Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4508000	Equity Shares	Rs.10/- each	Rs.45.080 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		45.035	45.035	45.035
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3.836	5.092	5.067
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		48.871	50.127	50.102
LOAN FUNDS
1] Secured Loans		90.758	90.399	90.594
2] Unsecured Loans		1.226	2.229	3.715
TOTAL BORROWING		91.984	92.628	94.309
DEFERRED TAX LIABILITIES		0.993	3.976	7.279
TOTAL		141.848	146.731	151.690
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		97.172	98.072	102.208
Capital work-in-progress		4.541	4.525	7.272
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.449	17.152	18.335
	Sundry Debtors	44.918	45.630	45.713
	Cash & Bank Balances	0.518	6.700	5.530
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	19.831	9.370	6.536
Total Current Assets		88.716	78.852	76.114
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	48.581	34.718	30.373
	Provisions	0.000	0.000	3.531
Total Current Liabilities		48.581	34.718	33.904
Net Current Assets		40.135	44.134	42.210
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		141.848	146.731	151.690

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		340.197	299.273	265.624
Other Income		5.626	3.720	2.535
Total Income		345.822	302.993	268.159
Profit/(Loss) Before Tax		0.178	0.622	(2.275)
Provision for Taxation		[1.434]	0.598	0.325
Profit/(Loss) After Tax		[1.256]	0.024	(1.950)
Total Earnings		29.772	16.835	18.040
Total Imports		14.437	8.072	1.653
Expenditures :
	Manufacturing Expenses	73.111	68.358	54.713
	Administrative Expenses	35.325	29.017	22.513
	Raw Material Consumed	186.944	152.330	138.692
	Miscellaneous Expenses	30.190	29.455	0.000
	Salaries, Wages, Bonus, etc.	0.000	0.000	22.739
	Interest	0.225	0.223	12.521
	Power & Fuel	0.000	0.000	0.000
	Depreciation & Amortization	21.900	20.485	19.256
	Other Expenditure	0.000	0.000	0.000
	Increase/Decrease in finished goods	[2.051]	2.503
Total Expenditure		345.644	302.371	270.434

QUARTERLY RESULTS

PARTICULARS	30.06.2007	30.09.2007	31.12.2007	31.03.2008
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Sales Turnover	87.300	89.900	88.000	91.200
Other Income	0.800	1.000	1.000	1.300
Total Income	88.100	90.900	89.000	92.500
Total Expenditure	79.600	83.200	87.000	101.400
Operating Profit	8.500	7.700	2.000	-8.900
Interest	0.100	0.100	0.300	0.200
Gross Profit	8.400	7.600	1.700	-9.100
Depreciation	5.900	5.900	6.100	6.100
Tax	0.900	3.500	2.200	-2.200
Reported PAT	1.600	-1.800	-06.800	-8.600

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt-Equity Ratio	1.87	1.87	1.76
Long Term Debt-Equity Ratio	1.87	1.87	1.76
Current Ratio	1.73	1.73	1.58
Fixed Assets	1.59	1.52	1.45
Inventory	19.27	19.53	17.29
Debtors	8.67	7.59	7.60
Interest Cover Ratio	1.50	5.50	0.82
Operating Profit Margin(%)	5.66	6.23	9.67
Profit Before Interest And Tax Margin(%)	0.08	0.32	3.36
Cash Profit Margin(%)	5.25	5.48	5.68
Adjusted Net Profit Margin(%)	-0.33	-0.43	-0.62
Return On Capital Employed(%)	0.21	0.77	7.31
Return On Net Worth(%)	-2.63	-2.99	-3.72

LOCAL AGENCY FURTHER INFORMATION

Form 8 Particular for creation or modification of charges

Name of the company	COVENTRY COIL O MATIC (HARYANA) LIMITED
Presented By	Mr. Ashok Babu, Company Secretary
1) Date and description of instrument creating the change	20.08.1990, Deed of hypothecation.
2) Amount secured by the charge/amount owing on the securities of charge	Foreign currency loan of DM 189950 and US $ 10065 equivalent to US $ 108118
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	First charge by way of hypothecation of all the movable assets except book debts including movable machinery, machinery, spares, tools andaccessories present and future subject to prior change created as to be created by bankers on raw material etc. for working capital.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest with reference to the weighted average cost of qualified borrowings and amount payable to ERAF which rate shall not be less than 17% and shall not be more than 20% p.a.
5) Name and Address and description of the person entitled to the charge.	ICICI Limited 163, Backbay Reclamation, Bombay.
6) Date and brief description of instrument modifying the charge	Letter of ICICI dated 14.06.1991
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.	On the loan disbursed till March 31, 1991, the rate of interest shall noit be less than 17% and shall not be more than 20% p.a. On the balances of loan the rate of interest shall not be les than 23% and shall not be more than 26% p.a.

Name of the company	COVENTRY COIL O MATIC (HARYANA) LIMITED
Presented By	COVENTRY COIL O MATIC (HARYANA) LIMITED
1) Date and description of instrument creating the change	Deed of hypothecation dated 20.08.1190 executed by Conventry Coil On Matic (Haryana) Limited (therein and hereinafter referred to ass the company) in favour of the Industrial Credit and Investment Corporation India Limited (ICICI) (therein and hereinafter referred to as the lead institution) Industrial Development Bank of India (hereinafter referred to as IDBI) and the financial institutions as therein mentioned (therein and hereinafter collectively referred to as the lenders).
2) Amount secured by the charge/amount owing on the securities of charge	Foreign currency loan of DM 276100 equivalent to US $ 142525 (therein and hereinafter referred to as the loan).
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	The whole of the movable properties of the company situate at Village Sahalawas, Tehsil and District Rewari-123401, Haryana including the company’s movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future (save and except book debts) (therein and hereinafter referred to as the said goods).
4) Gist of the terms and conditions and extent and operation of the charge.	In consideration of IDBI having agreed to lend and advance to the company the loan, agreement and declaration by the company, inter alia as follows : Covent by the company to repay the loan and pay interest and all other monies to the lead institutions in the manner set out in the loan agreement between the company, IDBI and other lenders and to comply with the terms and conditions of the said loan agreement. The said goods were thereby hypothecated inter alia, to IDBI as and by way of first charge as security for the repayment of the loan with all interest, commitment charge, liquidated damages, premia on prepayment or on redemption, costs, charges and other expenses payable by the company to IDBI in respect thereof provided that the charge of IDBI on the said goods will be subject to the charge or charges created and/or to be created by the company in favour of its bankers on its stocks of raw materials, semi finished and finished goods, consumable stores and such other moveable as may be agreed to by the lead institution to secure borrowings in the ordinary course of business of the company for its working capital requirements. The company to keep the said goods in marketable and good condition and also insured as provided therein. Power of entry, power to take charge, and/or possession of, seize, recover, receive, appoint and/or sale by public auction or private contract, dispatch for realization or otherwise dispose of or deal with all or any part of the said goods; etc. as provided therein.
5) Name and Address and description of the person entitled to the charge.	Industrial Development Bank of India IDBI Towers, Cuffe Parade, Mumbai-400005
6) Date and brief description of instrument modifying the charge	No instrument was executed but on the 25.01.1991, a first mortgage was created by the company jointly in favour of ICICI, IDBI and Industrial Finance Corporation of India (IFCI) (the rein and hereinafter referred to as the lenders) by deposit of title deeds with ICICI acting for itself ad as agent of IDBI and IFCI in respect of the company’s immoveable properties situate at village Sahalawas, Tehsil and District Rewari-123401, Haryana in order to create a security thereof as and by way of joint mortgage by deposit of title deeds pursuant to the resolution passed by the company on 21.12.1990.
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 loan together with interest, compound interest, addition al interest, commitment charges, liquidated damages, premia on prepayment or on redemption costs, charges and other expenses payable by the company to IDBI in respect thereof secured under the abovementioned deed of hypothecation is also now secured by the said first mortgage by deposit of title deeds in respect of the Company’s immoveable properties situate at Village Sahalwas, Tehsil and District Rewari-123401, Haryana together with buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth.

OPERATIONS

During the year, Gross Sales of the Company increased by 13.1% to Rs.392.134 Millions. As the prices of steel was steady over the last one year, the input cost of Raw Material reduced marginally. The Gross Profit for the year 2006-07 was Rs.22.085 Millions as compared to the previous year which was Rs.21.106 Millions, an increase of 4.6%

COURSE OF BUSINESS AND OUTLOOK

As required under the Corporate Governance, the Management Discussion and Analysis Report, which is forming a part of this report, is a reflection of the current state of the Company's Business. The report also deals with the opportunities and challenges faced by the Company and the outlook for the future.

MANAGEMENT DISCUSSION AND ANALYSIS 

BUSINESS OVERVIEW 

The Company is a leading manufacturer of Auto Suspension Springs and is one of the leading market players in springs for other Industrial Application. Business from the Auto Suspension Springs accounted for more than 67% of the turnover. With most of the economic indicators of the Country recording a growth of 9.5% during 200607, and low interest rates fuelled increased demand. The Automotive Industry witnessed significant growth from 8.5% for the previous year 2005-06 to 22%. Amidst this situation, although the Company's sales grew by 13%, the growth in Auto Components sector has only been 18%. 

The Company, with its record performance of 2.16 million Heavy Coil Springs, now contributes to approx. 40% of the 3 & 4-wheeler Vehicles springs sales. 

INDUSTRY STRUCTURE & DEVELOPMENT 

The passenger vehicle Industry saw a significant growth from the previous year because of a combination of good economic growth and the Government's initiatives In the area of road Infrastructure. And with the low Interest rates, the Industry grew by more than 20% for the current year in comparison to 7.5% for the year 2005-06. Similarly, the growth rate of the commercial vehicle Industry also saw a significant growth to more than 32% from 4.5% for the previous year, This appreciable increase was also partly attributed to the Supreme Counts ruling on vehicle overloading practices. 

The requirement for the Door Checker Hinges Springs In Canada and UK, to whom the Company exports springs, has grown significantly during the current year. Although the requirement of the springs is In huge numbers, the Company has been able to marginally Increase Its supplies (approx. 17 million springs for the year 2008-07) to about 40% of the required demand of this one Customer. 

COMPANY PERFORMANCE

a) Existing Products: 

The Company has a strong presence In the Mini & Compact Passenger Cars segment as Its main customer, Maruti Udyog Ltd., has 5 models in this segment with those compared to competition. Moreover, there was a significant growth of more than 25% in the Compact segment, which also contributes to very high volumes, Due to this reason, the Company has a market share of approx., 37% in the Auto Suspension Springs market in India. Growth in the Mid-size / Executive and Premium / Luxury Passenger Cars segments continue to be about 12%, but the total volumes were not so high, so the Company with its growth of 13% continued to maintain the above market share. 

Although the growth In the Medium and Heavy Commercial Vehicles segment increased by over 36.0%, the Company faced a negative growth of -4.0% thereby reducing Its Market share to less than 60%. The main reason for the drop in the Market share was because of supplies coming in from China. 

The Company Is In the process of further ramping up Its coiling, grinding and prestressing Capacity to enable a substantial growth In Its Export Sales In the coming years and Increase Its Market Share from the present 40%. 

b) New Product Development: 

The Company Is In the process of developing Progressive Suspension Springs for new vehicles under development by Tata Motors Ltd. 

The existing Product Range of Springs up to 14.5 mm wire diameter for Auto Suspension as well as for other Applications was limiting the Company In increasing its Market share, The Company is developing a new process for manufacturing springs using higher wire diameter beyond its existing range. 

BUSINESS OUTLOOK AND OVERVIEW 

Currently the rising Interest rates have affected the overall growth in the Automotive Industry. As per current indications, the growth may sloe down to 10-15% for the year 2007-08. However, the market share of MUL, the Company's main customer is increasing. As such the Company can expect a growth of around 15-20% in the Auto Suspension Springs business due to ramping up of its capacity for Heavy Coil Springs. 

Growth in the Medium and Heavy Commercial Vehicle segment is expected to be negative as the growth is expected to be significant in the Light Commercial Vehicles (LCVs). As a significant growth in supplies from China is expected, the Company could face further negative growth of -20% to -25% in this segment. As such, the Company would have to re-strategize and develop other market opportunities. 

With the re-organisation of its processing systems, the Company has been able to increase its Export Sales to Canada and UK for the Door Checker Hinge Springs. As the demand is ever increasing, the Company has expanded its Capacity and expects to increase its Export Sales substantially in the coming years. 

OPPORTUNITIES & THREATS 

With Maniti Udyog Ltd., the Company's main customer, launching new / modified cars, especially in those segments where the Company has a good share of business, it is expected that these will contribute significantly to the Company's growth. 

However, with negative growth in the Mini Segment, the Company's growth could decline a bit. 
Threat from China and the negative growth in the Medium & Heavy Commercial Vehicles would substantially affect the growth of the Company's Sales in this segment. 

As the Company has only been able to cater to less than 40% of one Customer's requirements for Exports to Canada and UK, there is still ample opportunity for a strong growth in this segment. If the Company is not able to increase its capacity to cater to the increasing requirement by the customer, there could be a major threat by the Customer developing other suppliers, mainly from China. 

Fixed Assets:

Company’s fixed assets include Freehold Land, Buildings, Office Premises, Tube Well, Plant and Machinery, Office Equipments, Furniture and Fixtures, Computers and Vehicles.

Contingent Liabilities :

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and to the extent not provided for atre disclosed by way of notes on accounts.

Contingent Liabilities not provided for :

(Rs. In millions)

Particulars	As at 31.03.2007
Export obligation for availing duty exemption under EPCG Scheme:The Company has imported capital equipments under EPCG Scheme and availed exemption of Custom Duty for which it has executed Bond in favour of Department of 10,179,715 5,500,000 Revenue, Ministry of Finance, of the value of duty saved along with interest calculated at the rate of 15% per annum for ten years. The Company is hopeful of meeting this obligation by making export in future year	10.180
Estimated amount of contracts remaining to be executed on Capital account and not provided for (net of Advance)	1.876

As per Website Details :

Profile

Over the past 50 years, subject maintained and extremely high standard of service to its customers, which is amply reflected in its present position as one of the Spring Manufacturer in India.

Subject responds to the evn expanding international needs for a quicker and more effective transportation system. Subject’s products are identified with superior features and high reliability.

Subject is fully committed to a continuous programme of Total Quality Management (TQM). High quality products are being achieved as a result of constant review and application of stringent internal cquality producrers to meet any internationally recogfgnized standards as specified by the customers.

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.42.92
UK Pound	1	Rs.84.48
Euro	1	Rs.66.66

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions