MIRA INFORM REPORT

Report Date :

26.05.2008

IDENTIFICATION DETAILS

Name :	KIRAN UDYOG PRIVATE LIMITED
Registered Office :	27 B/7, New Rohtak Road, New Delhi – 110 005
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	10.01.2000
Com. Reg. No.:	103175
CIN No.: [Company Identification No.]	U51399DL2000PTC103175
TAN No.: [Tax Deduction & Collection Account No.]	DELK04676A
PAN No.: [Permanent Account No.]	AABCK4100H
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturers of Auto Parts

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 608744
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company meeting its normal commitments timeously. Trade relations are fair. The company can be considered good for normal business dealings.

LOCATIONS

Registered Office :	27 B/7, New Rohtak Road, New Delhi – 110 005, India
Tel. No.:	91-11-25723237 / 25731887
Fax No.:	91-11-25728063
E-Mail :	kudie@nda.vsnl.net.in
Location :	Leased
Factory 1 :	Plot No. 14, Sector-3, IMT, Manesar (Gurgaon) – 122 050, India.
Tel. No.:	91-124-4369534, 35, 36
Fax No.:	91-124-4369535
E-Mail :	Mkt1@kiranudyogindia.com
Factory 2 :	Plot No. 32, Sector-3, IMT, Manesar (Gurgaon) – 122 050., India
Tel. No.:	91-124-4369510-17
Fax No.:	91-124-4369507
E-Mail :	Mkt2@kiranudyogindia.com
Factory 3 :	Plot No. 147, Sector-4, IMT, Manesar (Gurgaon) – 122 050., India
Tel. No.:	91-124-4365095-99
Fax No.:	91-124-4369507
E-Mail :	Mkt3@kiranudyogindia.com
Showroom :	Hardhyan Singh Road, Karol Bagh, New Delhi – 110 005
Tel. No.:	91-11-25731374/25723237
Fax No.:	91-11-25728063

DIRECTORS

Name :	Mr. Arvind Kumar Jain
Designation :	Director
Address :	27 B/7, New Rohtak Road, New Delhi – 110 005, India
Date of Birth/Age :	21.06.1960
Date of Appointment :	10.01.2000
Name :	Mr. Vivek Kumar Jain
Designation :	Director
Address :	vkjain@kiranudyogindia.com
Name :	Mr. Prashad Bimal Jain
Designation :	Director
Address :	27 B/7, New Rohtak Road, New Delhi – 110 005, India
Date of Birth/Age :	23.07.1938
Date of Appointment :	10.01.2000
Name :	Mr. Rama Jain
Designation :	Director
Address :	27 B/7, New Rohtak Road, New Delhi – 110 005, India
Date of Birth/Age :	23.07.1963
Date of Appointment :	10.01.2000
Name :	Mr. Sanjay Kumar Jain
Designation :	Director
Address :	27 B/7, New Rohtak Road, New Delhi – 110 005, India
Date of Birth/Age :	01.07.1961
Date of Appointment :	10.01.2000
Name :	Mrs. Monika Jain
Designation :	Director
Address :	27 B/7, New Rohtak Road, New Delhi – 110 005, India
Date of Birth/Age :	02.08.1971
Date of Appointment :	10.01.2000
Name :	Mr. Kiran Kanta Jain
Designation :	Director
Address :	27 B/7, New Rohtak Road, New Delhi – 110 005, India
Date of Birth/Age :	25.12.1936
Date of Appointment :	19.12.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2005
Names of Shareholders	No. of Shares
Arvind Kumar Jain	363200
Sanjay Kumar Jain	494100
Monika Jain	399100
Rama Jain	412600
Abhinav Jain	65500
Himanshu Jain	30000
Lata Jain	106100
Rajeev Kumar Jain (HUF)	109900
Sameer Jain	65000
Sanjay Kumar Jain (HUF)	80100
Sunita Jain	191300
Rajeev Kumar Jain	327700
Vivek Kumar Jain (HUF)	21600
Vivek Kumar Jain	268300
Deepali kalra	100
Nita Karla	100
Raj Karla	100
Sharad CH Jain (HUF)	100
Sapna Jain	100
G L Bansal	100
Hem Chand Jain	100
M P Jain	100
Nirmala Rani	100
Paras Jain	100
Shreehans Jain	100
Kiiran Kanta Jain	101100
Suman Lata	100
Tulsi Ram	100

Equity share breakup (percentage of total equity)

As on 30.09.2007
Bodies corporate	14.01
Directors or relatives of directors	85.96
Other top fifty (50) shareholders	0.03
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of Auto Parts
Products :	· Brake Shoes · Clutch and Brake Lever · Die Cast Spares · Brake Drum · Foot Rest · Front Hub · Brake Shoes · Thermostat housings · Fork Shifts · Housing control · Case Oil Seal · Cam Shift Housings · Water Cap Thermo · Housing Oil Seal · Retainer Input · Starter Housings · Wiper Housings · Frame Starter End · Holders Case Gear Steering Casting · Gear Arm Shift

GENERAL INFORMATION

Customers :	· Honda Motorcycle and Scooter India · Sona Koyo Steering Limited · GE, USA · Maruti Udyog Limited (Suzuki Venture) · Suzuki Motorcycler India (P) Limited · Tata Motor Limited
No. of Employees :	150
Bankers :	ING Vysya Bank Limited Connaught Place Branch, New Delhi HDFC Bank ICICI Bank State Bank of India Industrail Finance Branch, Jawahar Vyapar Bhawan, 1. Tolstoy Marg, New Delhi – 110 001, Delhi, India The Lakshmi Vilas Bank New Delhi

Banking Relations :	Satisfactory
Auditors :	Mr. Ashok Pranshu and Company Chartered Accountants 5A/3A, Darya Ganj, Delhi – 100 002, Delhi, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
8000000	Equity Shares	Rs. 10/- each	Rs 80.000 million
	Total		Rs 80.000 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4639600	Equity shares	Rs. 10/- each	Rs. 46.396 million
	Total		Rs. 46.396 million

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		46.396	46.396	31.049
2] Share Application Money		16.100	2.100	2.500
3] Reserves & Surplus		89.690	51.495	26.264
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		152.186	99.991	59.813
LOAN FUNDS
1] Secured Loans		328.965	295.456	161.832
2] Unsecured Loans		76.522	65.988	77.237
TOTAL BORROWING		405.487	361.444	239.069
DEFERRED TAX LIABILITIES		27.901	17.370	12.075
TOTAL		585.574	478.805	310.957
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		488.713	405.773	282.508
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	73.142	47.260	24.856
	Sundry Debtors	199.898	130.759	68.876
	Cash & Bank Balances	26.723	11.084	12.179
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	52.717	31.071	12.370
Total Current Assets		352.48	220.174	118.281
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	255.739	147.361	88.483
	Provisions	0.000	0.000	1.667
Total Current Liabilities		255.739	147.361	90.15
Net Current Assets		96.741	72.813	28.131
MISCELLANEOUS EXPENSES		0.120	0.219	0.318
TOTAL		585.574	478.805	310.957

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt Equity Ratio (Total Liability/Networth)	4.34	5.09	5.50
Current Ratio (Current Asset/Current Liability)	1.38	1.49	1.31

LOCAL AGENCY FURTHER INFORMATION

Trade References:

• Honda Motorcycle and Scooter India
• Maruti Udyog Limited
• Tata Motor Limited

Form No.8

Corporate identity number (CIN) Foreign company registration number	U51399DL2000PTC103175
Name of the Company	KIRAN UDYOG PRIVATE LIMITED
Address	27 B/7 New Rohtak Road, New Delhi – 110 005, India
This form is for	Modification of charge
Type of Charge	Immovable property Book debts Movable property (not being pledge) Others
Particulars of the charge holder	State Bank of India Industrial Finance Branch, Jawahar Vyapar Bhawan, 1. Tolstoy Marg, New Delhi – 110 001, India
Nature or description of the instrument(s) creating or modifying the charge	Memorandum of Entry
Date of the instrument creating or modifying the charge	24.05.2007
Amount secured by the charge	Rs. 265.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest Cash Credit Limit – 0.50% Below SBAR presently 11.75% p.a. Term Loan – SBAR presently 12.25% Corporate Loan – SBAR presently 12.25% Terms of repayment Cash Credit – On Demand Term Loan – 42 Monthly instalment of Rs. 1.786 millions each commencing from April-07 and ending in Sep-10 Corporate Loan – 30 Monthly instalment of Rs. 2.500 millions each commencing from Oct-07 and ending in march-10. Margin Cash Credit Limit : 25% on Raw Material, Store and Space, SIP, Finished Goods and Receivables Bank Guarantee : 10% Letter of Credit : 10% Extent and operation of the charge Primary : (A) 1^st Pari Passu charge over the entire current assets of the company including Raw Material, SIP, Goods in transit, Stores/Spares/Consumable, Book Debts etc. (B) 1^st Pari Passu charge on present and future fix assets of unit-II at Plot No. 32, Sector-3, IMT Manaser, Haryana (C)1^st Pari Passu charge on all current assets with working capital banks. Collateral : (A) 1^st Pari Passu charge on land and building at 1590/31, Hardhyan Singh Road, Karol Bagh. Others (B) 2^nd Pari Passu charge on fixed assets of the company (C) 2^nd Pari Passu charge on present and future fix assets of unit-I at Plot No. 14, Sector – 3, IMT Manaser, Haryana.
Short particulars of the property charged (including location of the property)	(A) 1^st Pari Passu charge over the entire current assets of the company including Raw Material, Sip, Goods in Transit, Stores/ Spares/ Consumable, Book Debts etc. (B) 1^st Pari Passu charge on present and future fix assets of unit-II at Plot No. 32, Sector-3, IMT Manaser, Haryana. (C) 2^nd Pari Passu charge on fixed assets of the Company (D) 2^nd Pari Passu charge on present and future fix assets of Unit-I at Plot No. 14, Secote-3, IMT Manaser, Haryana.
Particular of the present modification	Charges modified to Rs. 265.00 millions from Rs. 290.00 millions.

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.42.84
UK Pound	1	Rs.84.78
Euro	1	Rs.67.32

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	4
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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