MIRA INFORM REPORT

Report Date :

07.11.2008

IDENTIFICATION DETAILS

Name :	L. N. ENGINEERING WORKS PRIVATE LIMITED
Registered Office :	210, Kalindas Udyog Bhawan, Century Bazar, Worli, Mumbai 400018, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	06.10.1989
Com. Reg. No.:	11-053803
CIN No.: [Company Identification No.]	U29300MH1989PTC053803
TAN No.: [Tax Deduction & Collection Account No.]	MUML01495E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Kitchen Appliances.

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 129000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Ms. Pragati of the company parted Details. Subject is an old and established company but it has not filed its latest financials with the Government Departments. We spoke to Mr. Deepak, Accounts Manager of the Company, who parted general information but declined to part with financials. 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 :	Ms. Pragati
Designation :	Accounts Executive
Date :	06.11.2008

LOCATIONS

Registered Office :	210, Kalindas Udyog Bhawan, Century Bazar, Worli, Mumbai 400018, Maharashtra, India
Tel. No.:	91-22-24315500 / 24379457
Fax No.:	91-22-24362543
E-Mail :	niralicookware@vsnl.com
Website :	www.niralicookware.com
Area :	700 Sq ft
Location :	Owned
Factory 1 :	Plot No. 54, Vasai Taluka, Industrial Estate, Sector II, Goudaipada, Vasai [East], Thane, Maharashtra, India
Location :	Owned
Factory 2 :	Plot No. 10/A, Near Blue Chip Industrial Estate No.4, Waliv Phata, Sativalli Road, Vasai [East], Thane, Maharashtra, India
Tel. No.:	91-95250-2457772/ 73

DIRECTORS

Name :	Mr. Ratanshi Velji Gada
Designation :	Director
Address :	2, Vincent View Block No. 5, Dr. B. A. Road, Dadar, Mumbai 400014, Maharashtra, India
Date of Birth/Age :	03.09.1935
Date of Appointment :	06.10.1989
Name :	Mr. Indravadan Chimanlal Shah
Designation :	Director
Address :	146 – A, Jain Society, Block No. 2, Sion [West], Mumbai 400022, Maharashtra, India
Date of Birth/Age :	16.07.1952
Date of Appointment :	06.10.1989
Name :	Mr. Rita Bhailal Gada
Designation :	Director
Address :	2, Vincent View, Dr. B. A. Road, Dadar, Mumbai 400014, Maharashtra, India
Date of Birth/Age :	07.04.1966
Date of Appointment :	01.04.1992
Name :	Mr. Navin Ratanshi Gada
Designation :	Director
Address :	701, Royal Grace, 7^th floor, Lokmanya Vasahat Marg, Dadar [East], Mumbai 400014, Maharashtra, India
Date of Birth/Age :	09.01.1956
Date of Appointment :	01.04.2003
Qualification :	B.S.C.

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2007

Names of Shareholders	No. of Shares
Ratanshi Velji Gada	76200
Navin Ratanshi Gada	73100
Gala Marketing India Private Limited	1400
KNA Marketing India Private Limited	1500
Kumar Shivaramakrishnan	5600
Kanti Gala	5000
Shantilal D. Dedhia HUF	4000
Jagdish S. Dedhia	4000
Total	170800

Names of Allottees	No. of Shares
Gala Marketing India Private Limited	1400
KNA Marketing India Private Limited	1500
Kumar Shivaramakrishnan	5600
Kanti Gala	5000
Shantilal D. Dedhia HUF	4000
Jagdish S. Dedhia	4000
Total	21500

As on 29.09.2007

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	1.70
Directors or relatives of directors	87.41
Other top fifty shareholders	10.89
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Kitchen Appliances.

Products :

Ø Taper Frypans

Ø Fast Pans

Ø Tawa

Ø Casserole

Ø Kadhai

Ø Pathiri Tawa

Ø Sauce Pot

Ø Fry Pan

Product Description	Item Code No. (ITC Code)
Kitchen Appliances	4804.90

Brand Name :

NIRALI

Exports :

Products :

Ø Taper Frypans

Ø Fast Pans

Ø Tawa

Ø Casserole

Ø Kadhai

Ø Pathiri Tawa

Ø Sauce Pot

Ø Fry Pan

Countries :

UK, US, Sri Lanka, South Africa and Mauritius

Imports :

Products :

Raw Materials

Countries :

UK, China, Indonesia and USA

Terms :

Selling :

L/C, Cash and Credit or Advance [30 days to 60 days]

Purchasing :

L/C, Cash and Credit [30 days to 60 days]

GENERAL INFORMATION

Customers :

Ø Wholesalers

Ø Retailers

Ø End Users

Ø Distributors

No. of Employees :

80

Bankers :

Ø The Saraswat Co-operative Bank Limited

Kanchwala Building, Opposite Old Passport Office, Dr. A. B. Road, Worli, Mumbai 400030, Maharashtra, India

Ø State Bank of India (Vasai)

Facilities :

Secured Loans :

	As on 31.03.2007 Rs. in Millions
Cash credit (Secured against hypothecation of Stocks and Books Debt)	25.728
Term Loan	7.624
Total	33.352

Unsecured Loans :

	As on 31.03.2007 Rs. in Millions
From Directors	36.261
Total	36.261

Banking Relations :	Satisfactory
Auditors :
Name :	Chetan N. Dedhia Chartered Accountants
Address :	48, Patwa Chambers, 104/108, Olive Road, Mumbai 400009, Maharashtra, India
Tel. No.:	91-22-23729354
Associates/Subsidiaries :	Ø Jyoti India Metals Address: 210, Kalindas Udyog Bhawan, Century Bazar, Worli, Mumbai 400025, Maharashtra, India Line of Business: Manufacturer, Exporter and Importer of Aluminium Utensils viz Tawa, Frypan, Saucepan, Toaster, Kadhai with Teflon coating inside and decorative coating from outside, other all kitchen appliances operated with electricity as well as manually.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs. 10/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
170800	Equity Shares	Rs. 10/- each	Rs. 1.708 Millions

170800 Equity Shares of Rs.10/- each fully paid up

Add: Allotted Shares during the year

(Face Value sub-divided from Rs.100 to Rs.10)

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		1.708	1.493	1.493
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		24.013	8.667	4.196
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25.721	10.160	5.689
LOAN FUNDS
1] Secured Loans		33.352	29.254	16.772
2] Unsecured Loans		36.261	26.616	18.557
TOTAL BORROWING		69.613	55.870	35.329
DEFERRED TAX LIABILITIES		1.900	2.450	0.000
TOTAL		97.234	68.480	41.018
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		43.364	33.452	15.614
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.010	0.010	0.010
DEPOSITS		0.000	0.000	0.508
DEFERREX TAX ASSETS		0.000	0.000	(2.615)
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	32.601	21.006	15.208
	Sundry Debtors	36.381	32.200	19.496
	Cash & Bank Balances	0.947	0.772	1.148
	Other Current Assets	0.876	0.899	0.000
	Loans & Advances	6.327	3.484	1.526
Total Current Assets		77.132	58.361	37.378
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	16.592	17.066	9.877
	Provisions	6.680	6.277	0.000
Total Current Liabilities		23.272	23.343	9.877
Net Current Assets		53.860	35.018	27.501
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		97.234	68.480	41.018

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Total Income		179.583	139.467	97.343
Profit/(Loss) Before Tax		4.811	4.489	2.530
Provision for Taxation		--	0.018	1.417
Profit/(Loss) After Tax		4.811	4.471	1.113
Export Value		4.227	5.146	NA
Import Value		10.986	13.860	NA
Expenditures :
	Interest	15.155	12.467	2.476
	Depreciation & Amortization			0.987
	Other Expenditure	149.273	114.533	91.350
Total Expenditure		164.428	127.000	94.813

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.68	3.21	1.14
Net Profit Margin (PBT/Sales)	(%)	2.68	3.22	2.60
Return on Total Assets (PBT/Total Assets}	(%)	3.99	4.89	4.77
Return on Investment (ROI) (PBT/Networth)		0.19	0.44	0.44
Debt Equity Ratio (Total Liability/Networth)		3.61	7.80	7.95
Current Ratio (Current Asset/Current Liability)		3.31	2.50	3.78

LOCAL AGENCY FURTHER INFORMATION

The company’s fixed assets of important value include Leasehold Land (Plot), Building, Plant and Machinery, Furniture and Fixtures, Vehicles, Computers, Office Equipments, Air Conditioners, electrical Installation, etc.

Form 8

Bankers Charges Report as per Registry

This Form is for	Creation of charge
Charge identification number of the charge to be modified	NA
Corporate identity number of the company	U29300MH1989PTC053803
Name of the company	L. N. ENGINEERING WORKS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	210, Kalindas Udyog Bhawan, Century Bazar, Worli, Mumbai 400025, Maharashtra, India
Type of charge	Ø Book Debts Ø Movable Property
Particular of charge holder	The Saraswat Co-operative Bank Limited Kanchwala Building, Opposite Old Passport Office, Dr. A. B. Road, Worli, Mumbai 400030, Maharashtra, India E-mail: incharge_worli@saraswatbank.com
Nature of description of the instrument creating or modifying the charge	Agreement of hypothecation of movable property
Date of instrument Creating the charge	18.07.2007
Amount secured by the charge	Rs. 5.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	[a] Rate of interest Rate of interest 12.50% per annum [b] Term of repayment on demand [c] Extent and operation of the charge The charge will operate to the extent of Rs. 5.000 Millions on the company stock and debtors offered as security.
Short particulars of the property charged	The borrowers doth do hereby hypothecate to and in favour of the bank all the goods tangible movable property including the stock for the time being whether new or manufacture or in process of manufacturing and every tangible movable good/property/machineries/plant. Both present and future as and when import or procured by the borrowers place of business at Kalindas udyog bhavan [Worli]

Name of the company	L. N. ENGINEERING WORKS PRIVATE LIMITED
Presented By	The Saraswat Co-operative Bank Limited Worli Branch, Mumbai 400018
1) Date and description of instrument creating the change	Agreement dated 02.04.1990 1] Hypothecation of movable property 2] Hypothecation of Book Debts [Both these agreements together constitute a single charge]
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 2.700 Millions
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	1] All the stocks including the stocks for the time being whether new or manufactured or in process of manufacturing and every tangible movable property, of the borrower. 2] All present and future, book debts, moneys, receivables claims and approved book debts due to the borrower.
4) Gist of the terms and conditions and extent and operation of the charge.	To secure cash credit facility granted by the bank to the borrower 1] Rate of interest : 16.5& p.a. 2] Period : on Demand 3] Basia : 70%
5) Name and Address and description of the person entitled to the charge.	The Saraswat Co-operative bank Limited Worli Branch, Mumbai 400018
6) Date and brief description of instrument modifying the charge	Agreement dated 12.03.2001 1] Supplementary deed of hypothecation for additional advances 2] Supplementary deed for additional advances against hypothecation of book debts [both these agreements together constitute a single modification]
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.	By earlier modification dated 18.01.1991, 01.08.1991, 07.08.1992, 26.04.1995 and 01.06.1996, the limits had been enhanced upto Rs. 11.400 Millions. By this modification the cash credit limit has further been increased by Rs. 1.500 Millions. Hence, the overall limit has been enhanced from Rs. 11.400 Millions to Rs. 12.900 Millions. Rate of interest has also been modified to 17.75% p.a. Therefore, the overall charge now stands at Rs. 12.900 Millions

This form is for	Modification of charge
Charge identification number of the modified	80045251
Corporate identity number of the company	U29300MH1989PTC053803
Name of the company	L. N. ENGINEERING WORKS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	210, Kalindas Udyog Bhawan, Century Bazar, Worli, Mumbai 400018, Maharashtra, India
Type of charge	Immovable Property
Particular of charge holder	The Saraswat Co-operative Bank Limited Kanchwala Building, Opposite Old Passport Office, Dr. A. B. Road, Worli, Mumbai 400030, Maharashtra, India E-mail: incharge_worli@saraswatbank.com
Nature of description of the instrument creating or modifying the charge	Supplementary recording letter evidencing deposit of title deeds.
Date of instrument Creating the charge	24.09.2007
Amount secured by the charge	Rs.15.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As per Bank Rules Terms of Repayment: On demand Margin: Stocks – 30% Debtors – 30% (upto 90 days) Debtors – 50% (91-180 days) Extent and Operation of the charge: The charge will operate to the extend of Rs.15.000 millions on the security offered by the company.
Short particulars of the property charged	The equitable mortgage by deposit of Title deeds of Immovable property being all that land and building lying being and situated at Plot No. 10A, Servey No.80, Hissa No. 1(P) 2(P) at village Valiv, Taluka Vasai, District Thane.
Date of latest modification prior to the present modification	24.10.2005
Particulars of the present modification	By present modification made on 24.09.2007 bank has sanctioned additional advances of Rs.5.000 millions thereby increase charge from Rs.10.000 millions to Rs.15.000 millions on the security offered by the company.

FIXED ASSETS:

• Lease Hold Plot
• Building
• Office Premises
• Factory Land – Vasai
• Factory Building – Vasai
• Factory Elevators
• Plant and Machinery
• Electric Installation
• Furniture and Fixtures
• Vehicles
• Dies and Plates
• Office Equipments
• Air Conditioners
• Computers

AS PER WEBSITE DETAILS:

PROFILE:

Subject established in 1986 is a premier manufacturer of non-stick cookware in India. However, the company sells its non-stick cookware under its brand names "Nirali". The company has equipped itself with a state of art of technology standard equivalent to international standards. The company has a brilliant turnover of over US $ 2 billion that enlist itself as one of the top multi-national company existing in similar trade in Mumbai. With 200 employees network, the company has a production capacity equivalent to 1 million per annum per shift.

With an overwhelming performance from the Indian market, the company has broadened its vision by exporting its non-stick cookwares in several counters like USA, UK, Australia, Kenya, Oman, New Zealand etc. For its brilliant overseas performances, the company is also recognised as licencee of Dupont, USA and the non-stick cookware are manufactured with international Dupont coating. In India, the cookware products are approved by ISI, which is the national institution for quality certification in India. The pioneer leader in non-stick cookware items gives guarantee on its various range of products. Plus it sees that at every stage of manufacturing strict international Dupont coating is met to reduce calorie intake in food and that is why products are not only a smart choice of housewives but even amongst chefs and cooks of the corporate world

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 47.67
UK Pound	1	Rs. 75.47
Euro	1	Rs. 61.19

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