MIRA INFORM REPORT

Report Date :

13.03.2008

IDENTIFICATION DETAILS

Name :	VINEIL HITEK TOOLING COMPANY PRIVATE LIMITED
Registered Office :	F-1/4, Kakade Park, Chinchwad Gaon, Pune – 411033, Maharashtra
Country :	India
Financials (as on) :	31.12.2007
Date of Incorporation :	30.11.2005
Com. Reg. No.:	21616
CIN No.: [Company Identification No.]	U28939PN2005PTC021616
IEC No.:	3106003804
TAN No.: [Tax Deduction & Collection Account No.]	PNEV05611E
PAN No.: [Permanent Account No.]	AACCV1477F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Plastic Moulds, press Tools, Plastic Moulded Components and Sheet Metal Components required for automobiles, electronic and electrical industrious.

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 :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track records, so far. The company has shown satisfactory progress during the first year of its operations and is expecting an even better current year. Directors are reported as experienced and respectable businessmen. Trade relations are fair. Business is active. Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Keshav Narayan Manage
Designation :	Director
Contact No.:	91-9422522911
Date :	06.03.2008

LOCATIONS

Registered Office :	F-1/4, Kakade Park, Chinchwad Gaon, Pune – 411033, Maharashtra, India
Tel. No.:	91-20-27692935 / 27692985 / 2769121
Mobile No.:	91-9422522911 / 9422036744
E-Mail :	hitekpune@sify.com
Area :	540 sq. ft. [Owned]
Corporate Office and Factory :	S. No. 42/2, Gate No. 166, Behind Gangangiri Maharaj Math, Sahayog Nagar, Talwade Road, Pune – 412114, Maharashtra, India
Tel. No.:	91-20-27692935 / 27692985
Area :	5000 sq. ft. [Owned]

DIRECTORS

Name :	Mr. Keshav Narayan Manage
Designation :	Director
Address :	F-1/4, Kakade Park, Chinchwad Gaon, Pune – 411033, Maharashtra, India
Date of Birth/Age :	16.06.1968
Qualification :	Diploma in Tool and Die Making
Experience :	18 Years
Name :	Mr. Anant Narayan Manage
Designation :	Director
Address :	F-1/4, Kakade Park, Chinchwad Gaon, Pune – 411033, Maharashtra, India
Date of Birth/Age :	17.04.1978
Qualification :	Diploma in Civil Engineering
Experience :	9 Years

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Keshav Narayan Manage	130000
Mr. Anant Narayan Manage	20000
Total	150000

BUSINESS DETAILS

Line of Business :

Manufacturer of Plastic Moulds, press Tools, Plastic Moulded Components and Sheet Metal Components required for automobiles, electronic and electrical industrious.

Products :

Item Code :	Product Description
39269099	Plastic Components
85351090	Brass Components
84867100	Moulds

Exports :

Products :

Moulds

Countries :

Netherlands

PRODUCTION STATUS

[As on 31.03.2007]

Particulars	Actual Production
Plastic Brass Components and Moulds and Scrap	8900660 and 632 Kgs

GENERAL INFORMATION

Suppliers :

• Aditit Plastic Industries
• Bhat Metals Research Private Limited
• Dme Company India Private Limited
• Geeta Tools
• H and C Polymate
• Mega Enterprises
• Kanta Plastic Works
• Shambhavi Engineering
• Shivam Trading Corporation
• Sneha Heat Treat Industries
• Spectrum Enterprises
• Versha Tempo Service
• Sujata Packagint Industries
• Trackon Courier Services

Customers :

OEM’s

• VRT- BV
• Amphenol Interonnect [India] Private Limited
• Delstar Auto Components Private Limited
• Elcom International Private Limited
• Invensys India Private Limited
• Minda Industries Limited
• Renata Precision Private Limited
• R Engineering
• Shree Kalyanprush Engineering Private Limited
• Shree Krishna Moulds
• Technocraft Industries Limited

No. of Employees :

23 [In Office – 6 and In Factory - 17]

Bankers :

Canara Bank

SME Branch, Kasarwadi, Pune – 411037

Credit Limit : TL – Rs. 5.000 Millions; Cash Credit Rs. 1.000 Million

Facilities :

Secured Loan	As on 31.12.2007 [Rs in Millions]
Cash Credit facilities from Canara Bank, SME Branch, Kasarwadi, Pune – 411037 [Secured by first charge and hypothecation of inventories, sundry debtors and personal guarantee of all the directors of the company]	0.360
Term Loan from Canara Bank, SME Branch, Kasarwadi, Pune – 411037 [Secured by first charge on factory land and building, plant and machinery and personal guarantee of directors]	4.795
Electronic Finance Limited [Secured by hypothecation of Machineries]	1.334
Total	6.489
Unsecured Loan
Mr. Keshav Narayan Manage	0.850
Mr. Anant Narayan Manage	0.509
Total	1.359

Banking Relations :	Satisfactory
Auditors :
Name :	Surendra Naik and Company Chartered Accountants
Address :	E-24, Atmanagar Complex, Behind Dr. Ambedkar Statue, Pimpri, Pune – 411018, Maharashtra, India
Mobile No.:	91-9822290417
Associates/Subsidiaries :	Hi-Tek Technologies Proprietor : Mr. Keshav N Manage Address : S. No. 234, Pansare Building Rupeenagar, Pune – 412114 Activities : Manufacturing of Injection Moulds and Press Tools Hi Tek Components Proprietor : Mr. Anant N Manage Address : S. No. 234, Pansare Building Rupeenagar, Pune – 412114 Activities : Manufacturing of Plastic and Sheet metal Components

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs. 10/- each	Rs. 1.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
150000	Equity Shares	Rs. 10/- each	Rs. 1.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2007 [9 Months]	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		1.500	1.500	0.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2.465	1.426	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3.965	2.926	0.200
LOAN FUNDS
1] Secured Loans		6.489	6.137	0.000
2] Unsecured Loans		1.359	0.177	0.977
TOTAL BORROWING		7.848	6.314	0.977
DEFERRED TAX LIABILITIES		0.403	0.314	0.000
TOTAL		12.216	9.554	1.177
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.139	6.622	0.000
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.827	1.146	0.000
	Sundry Debtors	4.589	4.197	0.000
	Cash & Bank Balances	0.035	0.013	0.050
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.802	2.888	1.077
Total Current Assets		8.253	8.244	1.127
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	5.335	4.955	0.001
	Provisions	0.901	0.431	0.000
Total Current Liabilities		6.236	5.386	0.001
Net Current Assets		2.017	2.858	1.126
MISCELLANEOUS EXPENSES		0.060	0.074	0.051
TOTAL		12.216	9.554	1.177

PROFIT & LOSS ACCOUNT

PARTICULARS		31.12.2007 [9 Months]	31.03.2007
Sales Turnover		14.685	12.000
Other Income		0.108	0.001
Closing Stock of Finished and Semi Finished Goods		1.521	0.756
Total Income		16.314	12.757
Profit/(Loss) Before Tax		1.598	2.172
Provision for Taxation		0.559	0.746
Profit/(Loss) After Tax		1.039	1.426
Imports :
	Raw Materials	NA	0.136
	Stores & Spares	NA	2.334
Total Imports		NA	2.470
Expenditures :
	Opening Stock of Finished and Semi Finished Goods	0.756	0.000
	Cost of Raw Material Consumed	7.825	6.968
	Manufacturing Expenses	3.369	2.884
	Administrative and Other Expenses	1.695	0.474
	Depreciation	1.070	0.260
Total Expenditure		14.715	10.586

KEY RATIOS

PARTICULARS		31.12.2007 [9 Months]	31.03.2007	31.03.2006
PAT / Total Income	(%)	6.37	11.18	NA
Net Profit Margin (PBT/Sales)	(%)	10.88	18.10	NA
Return on Total Assets (PBT/Total Assets}	(%)	8.69	14.61	NA
Return on Investment (ROI) (PBT/Networth)		0.40	0.74	NA
Debt Equity Ratio (Total Liability/Networth)		3.55	4.00	4.89
Current Ratio (Current Asset/Current Liability)		1.32	1.53	1127.00

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCE

Reference :	Invensys India Private Limited, Pune
Name of the Person :	Mr. Kailash Beedkar
Contact Number :	91-9822020008
Since How Long Known :	Last 5 Years
Experience :	Company is good. Owner is good. We are getting quality material and always on time.
Maximum Limit Dealt :	Minimum credit limit provided by them – Rs. 2.000- Rs. 3.000 Millions
Reference :	R. Engineering, Pune
Name of the Person :	Mr. Shekhar Pore
Contact Number :	91-9225622168
Since How Long Known :	Know the parent company since 2000
Experience :	Technically they are very good.
Maximum Limit Dealt :	Maximum credit limit provided by them – 50-90 days
Reference :	Mindarika, Pune
Name of the Person :	Mr. Jagadish Iholi
Contact Number :	91-9881132735
Reference :	Tata Auto Comp Systems Limited, Pune
Name of the Person :	Mr. Manoj Patil
Contact Number :	91-9881129410

PROJECT PROFILE

GENERAL INFORMATION :

Name of the Applicant

VINEIL HITEK TOOLING COMPANY PRIVATE LIMITED

Particulars of the Guarantors Offered

Both the Directors shall guarantee the Credit limits in their individual capacities.

Present Proposal

The unit has requested for takeover of their existing liabilities with Canara bank and sanction enhanced working capital limit as per following details

[A]

1. Nature of facility

Term Loan

2. Amount Required

Rs. 4.800 Millions

3. Margin

25 %

4. Purpose

Takeover of existing Term Loan liability from Canara Bank, sanctioned for purchase various machineries.

5. Security Proposed

Hypothecation of Machineries

6. Repayment Proposed

The repayment schedule stipulated by Canara bank may be continued as per following details.

The loan shall be repaid in equal monthly installments of Rs. 0.064 Millions, over a period of Seven years, till the closure of the loan in full. Interest to be serviced separately.

[B]

1. Nature of facility

Cash Credit

2. Amount Required

Rs. 3.000 Millions

3. Margin

25 %

4. Purpose

To meet working capital requirements

5. Security Proposed

Hypothecation of stock and book debts.

6. Collateral Security

1. Unregistered Equitable Mortgage of Factory land and Building located at S. No. 42/2, Gate No. 166, Behind Gangangiri Maharaj Math, Sahayog Nagar, Talwade Road, Pune – 412114, valued Rs. 2.200 Millions as per valuation report of December 2006

2. Unregistered Equitable Mortgage of Residential Flat Located at Flat No. F-1/4, Kakade Park, Chinchwad Gaon, Pune – 411033, Valued Rs. 78.500 Millions as per valuation report dated 18.12.2006

3. Insurance Policy in Directors name

BRIEF HISTORY AND MANAGEMENT :

This is a SSI unit promoted by Mr. Keshav Manage and Mr. Anant Manage in the year 2005. Mr. Keshav Manage is technically qualified person having immense practical knowledge and experience in manufacture of Tools and Dies and Plastic moulded components. He passed out his Diploma in Tools and Dies Design from NTTF [Dharwad, Karnataka State] in the year 1991, which is one of the prestigious institutes for tools and Dies making.

He started his career as Design Engineer in the year 1992, with ACGL, Goa. Thereafter he jointed Tektronics, Pune as Design engineer and worked there upto 1994. Subsequently he worked with Terminal Technology [India] Private Limited as Tool room manager up to the year 1998. After gaining sufficient exposure to the Engineering industry, he started proprietorship business, namely Hitek Technologies for the manufacture of Tools and Dies. This unit is well established having achieved a sales turnover of Rs. 6.497 Millions for the FY 2006-07. This unit is enjoying Term Loan of Rs. 0.700 Million and soft loan of Rs. 0.500 Million with Canara Bank, sanctioned under NEF scheme. The repayment under this loan is regular as on date.

The other directors, Mr. Anant Manage is also a qualified diploma engineer and looks after commercial aspects of the project such as purchase, accounts and recovery etc. He is successfully running other unit namely Hitek Components manufacturing plastic moulded components. This unit is also well established having achieved a sales turnover of Rs. 4.346 millions for the FY 2006-07. This unit is banking with Janseva Co-operative Bank, operating current account. There is no liability in the name of this unit.

The party has purchased industrial gala at S No. 42/2 Gat No. 166, Sahayognagar, Talawade having all the infrastructural facilities. The total plot size is about 4530 sq. ft. having built up shed of about 2458 sq. ft. the party has initially installed machines like Injection moulding machines [2 Nos], Eccentric press. Power press and air compressor valued at Rs. 1.387 Millions in view of robust industrial growth in the abound Pune region, the demand for the products manufactured by the unit increased considerably. To meet the market demand and to offer latest technology, the party purchased certain additional machineries, costing about Rs. 6.667 Millions with help of Term Loan sanctioned by Canara Bank, in March / April 2007

The present unit Vineil Hitek Tooling Company Private Limited has been promoted to cater to the ever – growing business of proprietorship concerns in phased manner. The party has commenced its activity under Vineil Hitek in August 20063 and has been able to achieve a sales turnover of Rs. 12.000 Millions during very first year of operation i.e. 2006-2007. The party is in the process of developing market and received very good response from the existing business contacts. The party is targeting a sales turnover of Rs. 22.500 Millions during current year 2007/2008 as against which they have already achieved a turnover of Rs. 14.800 Millions upto th period ended on December 2004. The party is in need and enhanced working capital of Rs. 3.000 Millions to enable to achieve the projected business growth.

The party is technically skilled and experienced and Tools and Dies and Plastic industry and will be managing the day-to-day affairs of the unit efficiently with the help of experienced and skilled workers.

As Canara Bank is very slow in considering enhanced working capital limit, the party is suffering from shortage of working capital. In view of this the party has decided to approach another bank who can respond to the needs of the unit in timely manner. The present proposal is for takeover of existing Term Loan of Rs. 4.800 Millions with Canara bank and sanction of enhanced working capital limit of Rs. 3.000 Millions

TECHNICAL ASPECTS :

Nature of Activity

Manufacture of Plastic mould, Press Tools, Plastic moulded components and Sheets electronic and electrical industrious.

Land and Building

The party owns Industrial plot located at S No. 42/2, gat No. 166, Sahayognagar, Talawade, Pune 412 114, which is purchased from Special Recovery Officer Government of Maharashtra, in April 2006. The total plot size is 4530 sq. ft. o which factory shed admeasuring 2458.60 sq. ft. has been constructed. The total cost of this acquisition was Rs. 0.980 million. The market valuation of this factory premises was Rs. 2.200 Millions in December 06. The factory land and building is having sufficient area for carrying out present level of activity and also there is sufficient space for further expansion.

Plant and machineries

The unit had initially installed Injection Moulding machine [35 MT], Injection Moulding Machine [90 MT], Eccentric press [25 MT], Power Press [20 MT], Air Compressor and other tools and equipments required for production. The party had purchased there machines from its own sources and total value of these machineries was Rs. 1.387 millions as per valuation report dated 09.10.2006

The party added additional machineries in March / April 2007 such as CNC EDM machine, Vertical Milling Centre, Injection moulding machine [Imported] Tooling and Fixtures, Stabilizer, CAD/CAM software for CVC machines etc at a total cost of Rs. 6.667 millions. Detailed list is enclosed.

Arrangements for utilities

Raw Material

Main raw materials for manufacturer of tools the dies is MS.SS and Die sheet etc. RM required for manufacture of plastic components is Plastic granules such as LDFE/HDPA. RM required for sheet metal components is metal sheets of various sizes. These raw materials are easily available from local dealers.

Power and Fuel

The unit has power connection of 195 HP which is sufficient for the existing machineries as well as new machineries to be installed.

Water

The manufacturing process does not require water in large quantities. However required water is available at the site from PCMC supply line.

Transport

As the unit is located Industrial area of Talawade, required transport facility is easily available.

Labour

The required skilled and unskilled labourers are easily available. Presently the unit has employed 11 skilled and 6 unskilled workers and office and supervisory staff of 5.

MANUFACTURING PROCESS IN BRIEF :

Tools and Dies are manufactured using various machining operations such as Turning, Milling, wire cutting etc as per the design and drawing provided by the customers.

The manufacturing Plastic components involve melting HDPE / LDPE [Plastic] granules using heating process, which coverts the plastic into molten state. The molten plastic is injected in the Mould using injection process. The molten material takes the shape of the mould, which is then cooled using circulating water. The entire process is carried out in Injection moulding machine. The moulds are prepared as per the design and drawing provided by the customers. Quality check is made before dispatch.

The sheet metal components are manufactured by pressing the sheet metal in the dies clamped to the table of the Press. The sheet metal takes the shape of the die when pressed.

MARKET POTENTIAL :

The unit is engaged in manufacture of Tools and Dies as per customer’s requirement. This is specialized work requiring high-level of skill and accuracy. The party is having required technological background and expertise and has been receiving regular work from existing clientele. These tools and Dies find application in various Automobile and Engineering industries. For carrying production of repetitive nature of jobs.

Similarly the unit is also engaged in the manufacture of Plastic moulded components having weight upto 90 gms – 150 gms, as per customer’s requirement. The unit is well equipped to produce quality products as per the stringent quality norms set by its customers and hence there will be no difficulty in generating repeat orders. Also due to the improved economic activity in the manufacturing sector, the demand is ever growing.

During the very first year of operation the unit has achieved a sales, turnover of Rs. 12 Millions. With the party’s experience in the line and established business contacts in the unit is well placed to achieve sales target of Rs. 22.500 Millions during the current year 2007-08.

The unit is presently having following work orders from its regular customers for supply of various components.

	Rs in Millions
Invensys India Private Limited	7.483
Raychem RPG	1.088
Elcom International Private Limited	0.200
Tata Autocomp System Limited	0.500
Mindarika Private Limited	0.950
Minda Industries Limited	0.560
Total	10.781

In view of the established business contacts and steady market demand the unit may not face any difficulty in achieving the projected level of growth in business

TERM LOAN REQUIREMENT

The unit was sanctioned Term Loan of Rs. 5.000 Millions by Canara Bank for purchase of various Plant and Machineries as per the details mentioned above at a total cost of Rs. 6.667 millions. This loan was released in March / April 2007. The repayment of this loan has commenced from September 2007, after initial repayment holiday of 6 months. The present balance in the account as on 31.12.2007 is rs. 4.795 millions and account is regular. The present request is for takeover this liability from Canara Bank, with same repayment schedule.

COST OF PRODUCTION / PROFITABILITY STATEMENT

The detailed estimation of cost, performance, and profitability statements is prepared for the unit, which is enclosed.

Based on the installed capacity o the machineries and the position of work orders on hand, the unit has projected a gross sales turnover of Rs. 22.500 Millions during current financial year 2007-2008 and Rs. 25.000 Millions during FY 2008-09, which is well within reach. Various other costs are projected at reasonable level keeping in view the experience of the promoters. The unit would be in a position to post better performance on year – to – year basis.

Debt Services Coverage Ratio / DSCR

The DSCR is estimated for the unit as per following details :

Rs in Millions

Particulars	2007-08	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14
Net Profit after tax	1.390	1.767	2.368	2.948	3.608	4.092	4.564
Depreciation	1.545	1.319	1.129	0.968	0.833	0.716	0.617
Interest on Term Loan	0.673	0.592	0.485	0.377	0.269	0.162	0.054
Interest on Electronic Loan	0.173	0.140	0.105	0.063	0.000	0.000	0.000
Total [A]	3.781	3.818	4.087	4.356	4.710	4.97	5.235
Interest on Term Loan	0.673	0.592	0.485	0.377	0.269	0.162	0.054
Interest on Electronic Loan	0.173	0.140	0.105	0.063	0.000	0.000	0.000
Term Loan	0.385	0.769	0.769	0.769	0.769	0.769	0.770
Annual Loan Electronic Loan	0.255	0.288	0.301	0.685	0.000	0.000	0.000
Total [B]	1.486	1.789	1.66	1.894	1.038	0.931	0.824
DSCR [S/B]	0.254	0.213	0.246	0.230	0.454	0.534	0.635
Average DSCR	0.322

The average DSCR ratio for the unit is above 1.50:1, which indicates comfortable liquidity position in the business. The operations generate sufficient surplus to repay Term loan over a period of Seven Years and also build up required net working capital in the system.

WORKING CAPITAL REQUIREMENT

In respect of SSI units working capital limit can be estimated based on Projected turnover method. However, to have a realistic approach the working capital has been estimated on EWCL method. The detailed working of working capital requirement estimate as under :

	Rs in Millions
Anticipated net sales during the FY 2007-08	22.500
Net profile before tax	1.930
Consumption of raw materials	11.223
Cost of production	15.506
Cost of sales	15.506
Total cost including interest and selling and admn. Cost	1.914

Item	Norm	Rs. In Millions
Current assets
Raw Materials	1.00 Month’s Consumption	0.935
Consumable stores	Month’s Consumption	0.000
Stock in process	1.00 Month’s C O P	1.292
Finished goods Receivables	Month’s C O S 2.00 Month’s Gross Sales	0.000 3.750
Advance to suppliers		0.300
Other current assets		0.293
Total [A]		6.570
Current Liabilities
Creditors for purchases	1.00 Month Purchase	0.935
Advance from customers		0.500
Outstanding expenses		0.250
Other current liability		0.500
Total [B]		2.185
Working capital gap [A-B]		4.385
Less
Margin required / Provided		1.385
Permissible Bank finance		3.000

Remarks on working capital :

The levels of holding of various items of current assets and current liabilities have been projected on realistic basis.

The net working capital is projected to be at Rs. 1.385 Millions as on 31.03.2008 which corresponds to current ratio 1.27:1. In view of this, the unit would need working capital facility of Rs. 3.000 Millions, with 25 % margin, against the security of Stocks and Book debts.

CONCLUSION

The promoters of the unit Mr. Keshav Manage and Mr. Anant Manage are having more than fifteen years experience in the field of manufacturing / production processes / purchase / marketing. The promoters have been successfully running proprietorship concerns namely Hitek Technologies and Hitek Components and combined turnover of these units is Rs. 10.843 Millions for the FY 2006-07. Encouraged by the market response and to cater to the ever growing market demand, the promoters have decided to establish the present unit namely Vineil Hitek Tooling Company Private Limited. After commencing the commercial activity in August 2006, the party has been able to achieve a gross sales turnover of Rs. 12.000 Millions during very first year of operation. The unit has achieved a sales turnover of Rs. 14.792 Millions during the first nine months period of current FY 2007-08.

The party owns Industrial Plot and Shed at Sahayognagar, Talwade, having all the infrastructural facilities. The party has acquired required plant and machineries and production is in full swing.

The party has received encouraging response from its prospective clients. The party has already received work orders worth Rs. 10.781 Millions. Keeping in view the position of orders on hand and favorable market condition. The party has projected a sales target of Rs. 22.500 Millions during current FY 2007-08. The unit may not face any difficulty on both production and marketing fronts.

Due to delay in sanctioning of enhanced working capital limits by Canara Bank, the unit is suffering on account of shortage of working capital. Further the manufacturing facility is fully equipped to handle higher production levels, which can be seen from the performance on the sales front shown by the unit. To mitigate this problem, the unit has decided to approach some other Bank with a request to consider genuine credit requirement of the unit in timely manner.

The promoters will be offering collateral security of factory land and building valued at Rs. 2.200 Millions, residential flat valued at Rs. 0.800 Million and LIC policies of the directors.

The promoters are confident of achieving the projected level of gross income and fulfill the obligation towards the Bank. Promptly as suggested in the projecr report.

The activity is both technically feasible and economically viable and deserve due consideration for sanction of Working capital loan as requested.

NOTES ON PROFITABILITY STATEMENTS

1. The Unit has received work orders worth Rs. 10.781 Millions from various clients. Keeping this in view and party’s experience in the line, a gross sales turnover of Rs. 22.500 Millions has been targeted during current financial year 2007-08 and Rs. 25.000 Millions during next FY 2008-09.

2. In the estimates year-to –year increase in prices has been considered in cost of consumables, electricity and other costs. However, increase in raw material and sales prices has not been considered. These estimates are prepared on conservative basis keeping in view the promoters experience in the line and the same are achievable.

3. Various other items of expenditure are projected at reasonable level taking into account actual level of consumption and promoter’s experience.

4. The interest on Bank Term Loan of Rs. 4.800 Millions calculated @ 14.00 % p.a. after considering the repayments during respective years, on average balance.

5. The interest on Working capital of Rs. 3.000 Millions is calculated @ 14.00 % p.a.

6. The depreciation is estimated on WDV basis as per the applicable norms under Companies Act.

7. Income Tax is calculated as per the I.T. Rules applicable to private limited companies after allowing depreciation as per I. T. act. Presently assumed rate is at IT @ 30%.

PROJECTED SUMMARISED BALANCE SHEET

Rs in millions

PARTICULAR	31.03.2008	31.03.2009	31.03.2010	31.03.2011
LIABILITIES
Equity share capital	1.500	1.500	1.500	1.500
Reserves and Surplus	2.596	3.263	4.531	6.379
Term Loans	4.615	3.846	3.077	2.308
Bank Borrowings for W C	3.000	3.000	2.500	2.000
Unsecured Loans	1.358	1.358	1.358	1.358
Electronica Loan	1.274	0.986	0.685	0.000
Def Tax Liability	0.400	0.400	0.400	0.400
Total	14.743	14.353	14.051	13.945
ASSETS
Gross Block	11.418	11.418	11.418	11.418
Depreciation	1.805	3.124	4.253	5.221
Net Block	9.613	8.294	7.165	6.197
Investments	0.685	0.685	0.685	0.685
Net Current Assets	4.362	5.239	6.061	6.918
Cash and Bank Balances	0.023	0.090	0.110	0.130
Preliminary and Pre-op Exp.	0.060	0.045	0.030	0.015
Total	14.743	14.353	14.051	13.945

BALANCE SHEET – PROJECTED

Rs in millions

PARTICULAR	31.03.2008	31.03.2009	31.03.2010	31.03.2011
	Estimate	Projected	Projected	Projected
Equity Shares Capital	1.500	1.500	1.500	1.500
General Reserve	0.000	0.000	0.000	0.000
Share Premium	0.000	0.000	0.000	0.000
Subsidy	0.000	0.000	0.000	0.000
P & L A/C	2.596	3.263	4.531	6.379
Fresh Term Loan	4.615	3.846	3.077	2.308
Working Capital [Cash Credit]	3.000	3.000	2.500	2.000
Term Loan From Electronica Fin.	1.274	0.986	0.685	0.000
Def. Tax Liability	0.400	0.400	0.400	0.400
Other Unsecured Loans	1.358	1.358	1.358	1.358
Total	14.743	14.353	14.051	13.945
Fixed Assets
Gross Block	11.418	11.418	11.418	11.418
Depreciation	1.805	3.124	4.253	5.221
	9.613	8.294	7.165	6.197
Investment	0.685	0.685	0.685	0.685
Current Assets
Stocks-Rawmat. [1M]	0.935	1.039	1.143	1.217
Stock-Stores	0.000	0.100	0.200	0.300
Stock-WIP [1 M]	1.292	1.408	1.524	1.641
Stock Finished Goods	0.000	0.000	0.000	0.000
Debtors [2.00 M]	3.750	4.167	4.583	5.000
Bank	0.000	0.000	0.000	0.000
Cash	0.023	0.090	0.110	0.130
Advance Income Tax [Net]	0.270	0.414	0.554	0.727
Adv to Suppliers	0.300	0.400	0.500	0.600
Other Advances	0.000	0.050	0.050	0.050
	6.570	7.668	8.664	9.695
Current Liabilities :
Creditors for purchase [1.00 M]	0.935	1.039	1.143	1.247
Advance from customers	0.500	0.500	0.500	0.500
Liabilities for Expenses	0.250	0.300	0.350	0.400
Provision for Taxation [Net]	0.000	0.000	0.000	0.000
Retirement Benefits [Long Term]	0.000	0.000	0.000	0.000
Dividend payable	0.000	0.000	0.000	0.000
Others	0.500	0.500	0.500	0.500
	2.185	2.339	2.493	2.647
Net Current Assets	4.385	5.329	6.171	7.048
Preliminary and Pre-op Exp.	0.060	0.045	0.030	0.015
Total	14.743	14.353	14.051	13.945

PROJECTIONS OF PERFORMANCE, PROFITABILITY AND REPAYMENT

Rs in millions

PARTICULAR	31.03.2008	31.03.2009	31.03.2010	31.03.2011
	Estimate	Projected	Projected	Projected
[A] SALES
Domestic Sales	22.500	25.000	27.500	30.000
Labour Charges	0.000	0.000	0.000	0.000
Deduct : Excise Duty	3.150	3.500	3.850	4.200
Net Sales	19.350	21.500	23.650	25.800
[B] COST PRODUCTION
Raw material Consumption
Imported	0.000	0.000	0.000	0.000
Indigenous	11.223	12.470	13.717	14.964
Electricity Charges	0.484	0.538	0.591	0.645
Direct Labour	1.742	1.935	2.129	2.322
Consumable Stores	0.000	0.000	0.000	0.000
Repairs and Maintenance	0.048	0.100	0.125	0.150
Other Manufacturing Expenses	0.464	0.538	0.591	0.645
Depreciation	1.545	1.319	1.129	0.968
Total [Cost of Production]	15.506	16.900	18.282	19.694
Opening Stock
Finished	0.000	0.000	0.000	0.000
Semi Finished	0.000	0.000	0.000	0.000
	15.506	16.900	18.282	19.694
Less : Closing Stock
Finished	0.000	0.000	0.000	0.000
Semi Finished	0.000	0.000	0.000	0.000
[C] Cost of Sales	15.506	16.900	18.282	19.694
[D] Gross Profit [A-C]	3.844	4.600	5.368	6.106
[E] Interest
On Fresh Term Loan from bank	0.673	0.592	0.482	0.377
On Working Capital	0.100	0.300	0.230	0.175
On Term Loan Electronica Fin.	0.173	0.140	0.105	0.063
Total Interest	0.943	1.032	0.820	0.615
[F] Selling and Administrative Exps.	0.968	1.075	1.183	1.290
Non-operating Income	0.000	0.000	0.000	0.000
[G] Profit Before Taxation	1.930	2.493	3.365	4.201
[H] Provision for Taxes	0.540	0.726	0.997	1.253
[I] Net profit [G-H]	1.390	1.767	2.368	2.948
[J] Depreciation added back	0.545	1.319	1.129	0.968
[K] Net Cash Accruals	2.935	3.086	3.497	3.916
[L] Repayment Obligations
Fresh Term Loan	0.385	0.769	0.769	0.769
Unsecured Loan	0.000	0.000	0.000	0.000
Electronica Loan	0.255	0.288	0.301	0.685
Interest on Term Loans	0.846	0.732	0.590	0.440
	1.486	1.789	1.660	1.894
[M] Debt Services Ratio K:L [DSCR]	0.254	0.213	0.246	0.230
Break Even Value	14.477	15.188	15.131	15.165
Cash Break Even Point	10.575	11.849	12.273	12.714
[N] B/F Surplus	1.426	2.596	3.263	4.531
Transf. From Reserve	0.000	0.000	0.000	0.000
[O] Available for appropriation	2.816	4.363	5.631	7.479
[P] Appropriation
Drawing	0.000	0.000	0.000	0.000
Dividend	0.200	1.000	1.000	1.000
Dividend Tax	0.020	0.100	0.100	0.100
Balance C/F	2.596	3.263	4.531	6.379

FIXED ASSETS

• Land
• Factory Building
• Furniture
• Crates
• Electrical Installation
• Machineries
• Computers

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.40.36
UK Pound	1	Rs.81.27
Euro	1	Rs.61.86

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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

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

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

RATING EXPLANATIONS

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

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