MIRA INFORM REPORT

Report Date :

29.11.2008

IDENTIFICATION DETAILS

Name :	LALLUBHAI AMICHAND LIMITED
Registered Office :	48/50 Kansara Chawlkalbadevi Road, Mumbai – 400002, Maharashtra.
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	16.12.1948
Com. Reg. No.:	11-6816
CIN No.: [Company Identification No.]	U51420MH1948PLC006816
TAN No.: [Tax Deduction & Collection Account No.]	MUML04719B
PAN No.: [Permanent Account No.]	AAACL0829R
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer of Utensils

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 400000
Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is an old and established company having moderate track. Company’s performance is declining. Its profitability is under pressure. However, no complaints have been from market sources. The company can be considered for small to mediocre business dealings, initially.

INFORMATION PARTED BY

Name :	Mr. Pratik Shah
Designation :	Accounts Officer
Date :	28.11.2008

LOCATIONS

Registered Office :	48/50 Kansara Chawlkalbadevi Road, Mumbai – 400002, Maharashtra, India
Tel. No.:	91-22-23805806 / 3751329 / 3328 / 3458 / 23819568
Fax No.:	91-22-23805807 / 3758968 / 3738310 / 23803765
E-Mail :	laltd@bom2.vsnl.net.in
Website :	www.lallubhaiamichand
Area :	2000 sq.ft.
Location :	Owned
Factory:	Plot No. 150, Agarwadi Road, Opp. Railway Crossing, Mankhurd, Mumbai-400043, Maharashtra, India.
Tel. No.:	91-22-656 3271
Administrative Office :	225/27, J. Dadaji Road, Mumbai 400 007 , Maharashtra, India.
Tel. No.:	91- 22 -2308 5806
Fax No.:	91- 22 -2307 4285

DIRECTORS

Name :	Mr. Harshad J. Shah
Designation :	Director
Address :	2/64, Nanik Niwas, 91, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India.
Date of Birth/Age :	12.03.1957
Date of Appointment :	05.07.1984
Name :	Mr. Dhirendra R. Shah
Designation :	Director
Address :	21, Anupama, 11, Manav Mandir Road, Mumbai – 400006, Maharashtra, India.
Date of Birth/Age :	10.03.1961
Date of Appointment :	01.01.1984
Name :	Mr. Paresh R. Shah
Designation :	Director
Address :	21, Anupama, 11, Manav Mandir Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	25.04.1964
Date of Appointment :	01.01.1990
Name :	Mr. Ketan J. Shah
Designation :	Director
Address :	A-33, Heera Panna, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India.
Date of Birth/Age :	04.11.1966
Date of Appointment :	05.06.2002
Name :	Mr. Sanjiv R. Shah
Designation :	Director
Address :	21, Anupama, 11, Manav Mandir Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	19.07.1962
Date of Appointment :	05.06.2002
Name :	Mr. Sunil J. Shah
Designation :	Director
Address :	605-606, Dun Apartment, 6^th Floor, 225/27, J. Dadajee Road, Mumbai – 400007, Maharashtra, India.
Date of Birth/Age :	08.05.1961
Date of Appointment :	02.06.1984

KEY EXECUTIVES

Name :	Mr. Pratik Shah
Designation :	Accounts Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
The Metal Rolling Works Limited	1273	99.07
Alco metal Extrusions Limited	10000	99.88
Rameshchandra Limited	17310	90.58
Bombay Conductors and Electricals Limited	25000	100.00
Modern Metal Products Limited	5494	99.89

AS ON 31.03.2007

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	8.02
Directors or relatives of directors	91.98
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Utensils

Products :

Item Code Number	Product Description
0124	Vessels , Cookware

Exports :

Countries :

• South East
• Asia

Imports :

Countries :

• China

Terms :

Selling :

L/C, Cash, Credit

Purchasing :

L/C

GENERAL INFORMATION

Customers :	Dealer Distributor
No. of Employees :	300 ( in office 50 + 250 in factory (including contract workers) )
Bankers :	Ø Union Bank of India Ø Bank of India Ø UCO Bank Ø HDFC Bank Ø State Bank of India.
Facilities :	They enjoy cash credit of Rs.10.000 Millions (HDFC Bank)

Banking Relations :

-

Auditors :

Name :

Bhuta Shah and Company

Chartered Accountant

Address :

901/902 Regent Chambers, Nariman Point, Mumbai – 400021, Maharashtra, India.

Subsidiaries :

Name Of The Company :	Alco Metal Extrusions Limited
CIN No.:	U27200MH1972PLC015931
Name Of The Company :	Rameshchandra Limited
CIN No.:	U27110MH1948PLC006818
Name Of The Company :	The Metal Rolling Works Limited
CIN No.:	U51109MH1948PLC006817
Name Of The Company :	Modern Metal Products Limited
CIN No.:	U28999GJ1973PLC002219
Name Of The Company :	Bombay Conductors And Electricals Limited
CIN No.:	U31909GJ1964PLC001257

CAPITAL STRUCTURE

AS ON 31.03.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs. 1000/- Each	Rs.25.000 Millions
1000000	Preference Shares	Rs.10/- Each	Rs.10.000 Millions
	Total		Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16689	Equity Shares	Rs. 1000/- Each	Rs.16.689 Millions
	Total		Rs.16.689 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		16.689	25.689	25.689
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		55.453	73.578	75.667
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		72.142	99.267	101.356
LOAN FUNDS
1] Secured Loans		5.072	5.737	6.843
2] Unsecured Loans		97.849	86.102	51.761
TOTAL BORROWING		102.921	91.839	58.604
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		175.063	191.106	159.960
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		19.798	17.107	20.723
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		26.843	26.698	19.086
DEFERREX TAX ASSETS		12.824	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	57.582	69.330	92.394
	Sundry Debtors	23.608	18.061	13.824
	Cash & Bank Balances	8.845	17.912	11.524
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	31.433	44.095	33.441
Total Current Assets		121.468	149.398	151.183
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	9.714	8.182	42.627
	Provisions	0.656	3.548	4.212
Total Current Liabilities		10.370	11.730	46.839
Net Current Assets		111.098	137.668	104.344
MISCELLANEOUS EXPENSES		4.500	9.633	15.807
TOTAL		175.063	191.106	159.960

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		116.487	113.251	113.250
Other Income		87.239	350.711	350.710
Total Income		203.726	463.962	463.962
Profit/(Loss) Before Tax		(0.857)	163.767	163.767
Provision for Taxation		0.450	0.730	0.730
Profit/(Loss) After Tax		(1.307)	163.037	163.037
Expenditures :
	Raw Material Consumed	128.986	88.652	88.652
	Consumption of stores and spares parts	2.870	1.900	1.900
	Increase/(Decrease) in Finished Goods	19.777	148.366	148.366
	Salaries, Wages, Bonus, etc.	3.552	4.362	4.362
	Managerial Remuneration	0.210	0.238	0.238
	Payment to Auditors	0.150	0.150	0.150
	Interest	0.856	10.226	10.226
	Insurance Expenses	0.318	0.133	0.133
	Power & Fuel	0.955	0.900	0.900
	Depreciation & Amortization	4.205	3.555	3.555
	Other Expenditure	42.704	41.712	41.712
Total Expenditure		204.583	300.194	300.194

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	(0.64)	35.14	5.14
Net Profit Margin (PBT/Sales)	(%)	(0.73)	144.60	144.60
Return on Total Assets (PBT/Total Assets}	(%)	(0.47)	84.76	85.74
Return on Investment (ROI) (PBT/Networth)		(0.01)	1.64	1.61
Debt Equity Ratio (Total Liability/Networth)		1.57	1.04	1.04
Current Ratio (Current Asset/Current Liability)		11.71	12.73	3.22

LOCAL AGENCY FURTHER INFORMATION

TRADE REFERENCES

Ø Premier Coating Private Limited, Mumbai

Ø Rachna Industries, Mumbai

AS PER WEB SITE DETAILS

COMPANY PROFILE

Subject was established in 1913 as a partnership firm. In 1948, the firm was converted into a Limited Company and has been regarded as the leading manufacturer and marketing organisation in the competitive environment of INDIAN KITCHENWARE INDUSTRY.

Spread over a wide area, the factory has latest fabrication plant and rolling mill with requisite infrastructure to manufacture wide range of Kitchenware. The work force employed is offered the best service conditions and fringe benefits among comparable establishments in the country.

Stringent quality control is applied to meet ISI standards for domestic and industrial uses.

Kitchenware articles whether industrial or domestic can be manufactured as per the buyer's design specifications.

Subject has not confined its activities to only Stainless Steel Kitchenware, but manufactures wide range of products in the other metal and alloys like; ALUMINIUM, BRASS & COPPER. The product range includes Utensils, Cutlery items, Surgicalware, Aluminium Collapsible Tubes, Wall Containers, Monoblock Bottles, Aluminium Pressure Cookers and Bakeware.

Constant product developments, stringent quality control and prompt services to customers has always been cornerstones of Subject Company.

Top quality products and efficient marketing ability resulted in large international clientele with an aim to expand more. Subject started exploring newer markets, across the world and the results were more than rewarding. Subject was able to impress Government departments, agencies and buyers alike and in the process won numerous awards and certificates for excellence in recognition for their export activities from the Engineering Export Promotion Council and State Government.

With the present International Marketing network in USA, UK, Gulf Countries, Saudi Arabia, South East Asia, and Africa, Subject is poised to become a major force in manufacturing and marketing a wide array of Stainless Steel, Aluminium, Brass and Copper finished products in India.

FIXED ASSETS

Ø Land

Ø Building

Ø Plant and machinery

Ø Electrical Installation

Ø Furniture and Fixtures

Ø Air Conditioning Machine

Ø Vehicles

Ø Computer

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.49.84
UK Pound	1	Rs.76.81
Euro	1	Rs.64.38

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		35

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