MIRA INFORM REPORT

Report Date :

01.04.2011

IDENTIFICATION DETAILS

Name :	BEICO INDUSTRIES PRIVATE LIMITED
Registered Office :	04-01/02, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	16.01.1980
Com. Reg. No.:	11-22112
CIN No.: [Company Identification No.]	U31100MH1980PTC022112
TAN No.: [Tax Deduction & Collection Account No.]	MUMB11215B
PAN No.: [Permanent Account No.]	AAACB0467B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Electrical Insulating Paper, Enamelled Copper Wires, Commutators, Varnishes and Resins.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 600000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office / Corporate Office :	04-01/02, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-24938675
Fax No.:	91-22-24938685
E-Mail :	info@beicoindustries.com accounts@beicoindustries.com
Website :	http://www.beicoindustries.com
Factory 1:	Ambad: Insulation Division: B – 68/2, MIDC Area, Ambad, Nashik-422010, Maharashtra, India
Area:	40000 Sq. Ft. (Owned)
Factory 2:	Gonde: Enamelled Wire Division: Date No. 487/488, Village Gonde Dumala, Talika – Igatpuri, District Nashik-422403, Maharashtra, India
Area:	16800 Sq. Ft. (Owned)
Sales Depot :	2B, Aminazar Industrial Estate, 127, Amli, Near 66 KVA Station, Silvassa, Dadra and Nagar Haveli – 393230, India

DIRECTORS

As on 19.06.2010

Name :	Mr. Nikhil Manordas Sanghvi
Designation :	Managing Director
Address :	39, Bharti Manikrao, Lotlikar Marg, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	09.03.1953
Date of Appointment :	01.10.2005
Name :	Mrs. Divya Nikhil Sanghvi
Designation :	Director
Address :	39, Bharti Manikrao, Lotlikar Marg, Mumbai – 400019, Maharashtra, India
Date of Birth/Age :	21.11.1958
Date of Appointment :	23.03.1992
Name :	Mr. Dolar Ratilal Koya
Designation :	Director
Address :	45, Tomlin Circle, Burr Rodge, Illinios, USA
Date of Birth/Age :	08.10.1936
Date of Appointment :	29.09.1997
Name :	Mr. Suhrid Nikhil Sanghvi
Designation :	Director
Address :	39/8, Bharati, Sewri Wadala Road, 14A, Kings Circle, Matunga, Mumbai-400019, Maharashtra, India
Date of Birth/Age :	07.12.1982
Date of Appointment :	01.11.2009
Name :	Mr. Anant Padmakar Kamerkar
Designation :	Director
Address :	29-A, Laxmi Estate, Old Nagardas Road, Andheri (E), Mumbai – 400069, Maharashtra, India
Date of Birth/Age :	02.04.1953
Date of Appointment :	28.09.2005
Date of Ceasing :	22.09.2009

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 19.06.2010

Names of Shareholders	No. of Shares
Nikhil Manordas Sanghvi	976869
Divya Nikhil Sanghvi	901310
Nikhil Manordas Sanghvi, Karta of NMS HUF	469608
Suhrid Sanghvi	712033
Mansi Sanghvi	666
Michelle Sanghvi	468847
Beico Investments Private Limited, India	719367
Pankaj Parekh	1333
Natvarlal Vora	1000
Parag Vora	2084
Janak Vora	1667
Madhusudhan Vora	2084
Devang Vora	1667
Mayank Shah	625
Mukesh K Shah	1674
Illupa Shah	1250
Mukesh K Shah	3350
Nalini Mogul	2671
Jayant Sanghvi	6676
Kiran Shangvi	3339
Rasiklal Sanghvi	6676
Bhanu S Desai	2500
Anant P Kamerkar	5024
Manish Bajaj	2234
Ishita Gandhi	434
Tushar Gandhi	434
Anil Gandhi	347
Biren Vora	8884
Rekha Mehta	2000
Rekha Mehta	2000
Bhanoo Desai	2000
Natubhai Parekh	2227
Dolly Lazar	133
Deepak Dodhiwala	2000
Ashok Khadapkar	300
Shankarnand Pathak	400
Dilip Shelar	334
Shantaram Lohar	334
Vilas Ekhande	125
Balasaheb Kurkute	166
Nila Chandarana	445078
Dolar Koya	111278
Dolar Koya	111278
Sachin Mehta	4019
Rajnikant Sanghvi	1000
Mehul Sanghvi	2000
Bharat Sanghvi	1000
Arun Sanghvi	1000
Jayshree Sanghvi	4000
Neil Sanghvi	1000
Jayant Dangaria	1675
Total	5000000

As on 19.06.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	13.63
Bodies corporate	14.39
Directors or relatives of directors	70.67
Other top fifty shareholders	1.31
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Electrical Insulating Paper, Enamelled Copper Wires, Commutators, Varnishes and Resins.

Products :

Product Description	Item Code
Electrical Insulating Material	8546.9
Electrical Grade Insulating Paper	4811.9
Enameled Copper Wire	8544.9

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Electrical Grade Insulating Paper Composites	MT	1500	583.555
Enameled Copper Wire	MT	1800	350.679
Wire Drawing and Enamelling Machine	Nos.	20	1

GENERAL INFORMATION

Customers :

• Asea Brown Boveri
• Bajaj Auto Limited
• Bharat Bijlee Limited
• CG Newage Electricals Limited
• Crompton Greaves Limited

Bankers :

• HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (W), Mumbai – 400013, Maharashtra, India
• ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda-390015, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loan – Bank Installment failing due within a year Rs. 14.000 Millions	29.500	43.500
Working Capital Loans from Bank	50.846	22.859
Vehicle Loan Secured against assets acquired through such loan Installment failing due within a year Rs. 1.905 Millions	3.060	3.372
Total	83.406	69.731
Unsecured Loan
Directors	29.065	41.001
Shareholders	25.288	19.673
Intercorporate	12.310	9.453
Others	9.932	9.932
Total	76.595	80.059

Banking Relations :	--
Auditors :
Name :	Gunderia and Company Chartered Accountant
Address :	1011, Stock Exchange Tower, Dalal Street, Fort, Mumbai-400001, Maharashtra, India
Tel. No.:	91-22-66335350

CAPITAL STRUCTURE

As on 19.06.2010

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		50.000	50.000	50.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		102.190	90.032	88.188
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		152.190	140.032	138.188
LOAN FUNDS
1] Secured Loans		83.406	69.731	123.478
2] Unsecured Loans		76.595	80.059	65.248
TOTAL BORROWING		160.001	149.790	188.726
DEFERRED TAX LIABILITIES		12.417	13.778	13.226
TOTAL		324.608	303.600	340.140
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		195.020	215.067	216.250
Capital work-in-progress		5.872
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	75.877	60.869	61.303
	Sundry Debtors	86.484	53.997	57.304
	Cash & Bank Balances	4.892	3.812	9.195
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	35.267	30.947	29.523
Total Current Assets		202.520	149.625	157.325
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	38.957	46.885
	Other Current Liabilities	10.343	7.027	45.974
	Provisions	29.504	15.677	6.350
Total Current Liabilities		78.804	69.576	52.324
Net Current Assets		123.716	80.049	105.001
MISCELLANEOUS EXPENSES		0.000	0.098	0.196
TOTAL		324.608	303.600	340.140

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	578.670	452.680	477.100
		Other Income	3.176	4.672	0.401
		TOTAL (A)	581.846	457.352	477.501
Less	EXPENSES
		Office Expenses
		Administrative Expenses	482.396	384.502	431.051
		Advertising Expenses
		TOTAL (B)	482.396	384.502	431.051
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		99.450	72.850	46.450
Less	FINANCIAL EXPENSES (D)		18.290	20.370	14.070
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		81.160	52.480	32.380
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.260	27.820	17.900
	PROFIT BEFORE TAX (E-F) (G)		54.900	24.660	14.480
Less	TAX (H)		19.270	8.210	6.400
	PROFIT AFTER TAX (G-H) (I)		35.630	16.450	8.080
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		43.900	43.530	42.110
	EXCESS / SHORT PROVISION FOR TAX FOR EARLIER YEARS		0.000	0.190	0.000
Less	APPROPRIATIONS
		Transfer to General Reserve	3.560	1.650	0.810
		Dividend	3.320	2.120	0.850
		Tax on Dividend	20.000	12.500	5.000
	BALANCE CARRIED TO THE B/S		52.650	43.900	43.530
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	10.444	6.450	5.376
	IMPORTS
		Raw Materials	110.766	39.793	21.377
		Packing Material / Stores and Spares	0.000	0.114	10.549
	TOTAL IMPORTS		110.766	39.907	31.926
	Earnings Per Share (Rs.)		7.13	3.3	1.62

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.12	3.60	1.69
Net Profit Margin (PBT/Sales)	(%)	9.49	5.45	3.03
Return on Total Assets (PBT/Total Assets}	(%)	13.81	6.76	3.88
Return on Investment (ROI) (PBT/Networth)		0.36	0.18	0.10
Debt Equity Ratio (Total Liability/Networth)		1.57	1.57	1.74
Current Ratio (Current Asset/Current Liability)		2.57	2.15	3.01

LOCAL AGENCY FURTHER INFORMATION

Review of Operations:

Following the Global Downturn in the second half of the Last Financial year business sentiment improved vastly in the year. Increased focus on the Power Sector and Infrastructure saw resumption in stalled projects. This resulted in a substantial increase for your Company’s products.

Gross Revenues of the Insulation Division rose by about 15% to Rs.385 Million from Rs.335 Million in the previous year. Improvement in production processes resulted in Higher Volume of Production with Lower Energy consumption. In absolute terms we used 81% Electricity to produce almost 20% more material. We also achieved a substantial reduction is usage of VOC’s. During the year we could produce app. 20% more Metric Tons of material with an app. 20% reduction in consumption of Solvents.

Copper, an important Raw material used by the company, which had experienced a severe drop in prices during the last financial year climbed just as rapidly with improving business sentiment and reports of heavy buying from China. Copper on LME rose from USS 3963.50 on 1st April 2009 to US$ 7830 on 31st March 2010.

Due to a change in product mix, Sales of Enamelled Copper wires rose by 71% in Volume terms (from 202.7 MT to 347.1 MT) and in Value from Rs.106.8 Million to Rs. 172.4 Million. Increased Efficiency in production processes and larger Volumes enabled the Company to reduce Electricity Consumption. Whilst the volume of production increased by 71%, ‘the energy requirement in Kwh increased by only 33%.

Machine Division shipped its first complete machine to an outside customer during the year. Gross Sales of the Division were Rs.9 Million.

Overall this resulted in the Company ending the year with Total Gross Revenues higher by about 28 % to Rs. 579 Million from Rs. 453 Million in the previous year.

Current Years Outlook:

Gross Revenues in the first two months of the current year were substantially higher by about 68 % as compared to the previous year (Rs.125 Million as against Rs.74 Million in the previous year). Whilst Sales Volumes as well as Values are on an upswing there is an increase in Input Costs which is disturbing. The Company is trying to increase the selling prices considering higher Raw Material costs. However if these do not stabilise the bottom line is likely to be affected.

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U31100MH1980PTC022112
Name of the company	BEICO INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	04-01/02, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Type of charge	Others
Particular of charge holder	ICICI Bank Limited, Landmark Race Cource Circle, Alkapuri, Baroda-390015, Gujarat, India
Email	shanthi.venkatesan@icicibank.com
Nature of description of the instrument creating or modifying the charge	Unattested deed of hypothecation
Date of instrument Creating the charge	18.01.2011
Amount secured by the charge	Rs.8.070 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 8.97% p.a. Terms of Repayment To be repaid in 36 months of Equated monthly Installment (EMl) of Rs.0.254 Millions Margin 10% Extent and Operation of the charge Security created by way of first and exclusive charge and to cover the principal amount together with interest, commission, costs, charges, expenses and all other monies. Others Security created in respect of Auto Loan.
Short particulars of the property charged	I) Car namely, PORSCHE CAYMAN S bearing engine no. MA121CB02061, chassis no. WP0ZKA983BU770561, Model No. Cayman S, registration serial no. DN09G2277 and normally located at Plot No.27 and 43, II) Government Industrial Estate, Masat, Silvassa, UT of Dadra adn Nagar Haveli - 396230.

Fixed Assets:

• Freehold Land
• Leasehold Land
• Building
• Flat
• Plant and Machinery
• Intangible Asset
• Furniture and Fixtures
• Computers
• Motor Cars

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.44.65
UK Pound	1	Rs.71.93
Euro	1	Rs.63.24

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.