MIRA INFORM REPORT

Report Date :

11.01.2011

IDENTIFICATION DETAILS

Name :	S S APPLIANCES PRIVATE LIMITED
Registered Office :	H-35, South Extention, Part-I, New Delhi-110049
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	09.02.1988
Com. Reg. No.:	55-30560
CIN No.: [Company Identification No.]	U74899DL1988PTC030560
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Flow Meters, Oil Conservation Equipments and Oil Meters.

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 630000
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 :	H-35, South Extention, Part-I, New Delhi-110049, India
Tel. No.:	91-24690574/ 24629285
Fax No.:	91-11-24692529
E-Mail :	snr-clc@snr.net.in
Factory 1 :	B-29, Sector-VII, Noida-201301, Uttar Pradesh, India
Tel. No.:	91-120-3075000/ 2423602
Fax No.:	91-120-4259000
Factory 2 :	C-27, Sector-7, Noida, Uttar Pradesh, India
Tel. No.:	91-120-2423523/ 2423191
E-Mail :	ssengg@vsnl.com

DIRECTORS

As on 24.09.2010

Name :	Mr. Mahesh Gupta
Designation :	Director
Address :	H-35, South Extension, New Delhi-110049, India
Date of Appointment :	09.02.1988
Name :	Mrs. Sunita Gupta
Designation :	Director
Address :	H-35, South Extension, New Delhi-110049, India
Date of Appointment :	01.04.1989
Name :	Mr. Varun Gupta
Designation :	Director
Address :	H-35, South Extension, New Delhi-110049, India
Date of Appointment :	28.09.2004
Name :	Ms. Surbhi Gupta
Designation :	Director
Address :	H-35, South Extension, New Delhi-110049, India
Date of Appointment :	28.09.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2010

Names of Shareholders	No. of Shares
Sunit Gupta	13210
Mahesh Gupta	21770
Surbhi Gupta	50
Varun Gupta	14970
Total	50000

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Flow Meters, Oil Conservation Equipments and Oil Meters.

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Actual Production
Reagents	ML	1086450
Water Meter	--	242
Oil Meter	--	783

GENERAL INFORMATION

Bankers :

• Oriental Bank of Commerce, Vasundhara Enclave, New Delhi-110091, India
• Canara Bank, South Extension, Part-I, New Delhi, India

Facilities :

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Directors	2.000	0.000
From Others	0.000	0.000
Total	2.000	0.000

Banking Relations :	--
Auditors :
Name :	SNR and Company Chartered Accountant
Address :	A-15, Second Floor, Hauz Khas, New Delhi-110016, India
Tel. No.:	91-11-41655801/ 26855884
Fax No.:	91-11-26567540
E-Mail :	snr@snr.net.in
Website:	http://www.snr.net.in
Associates:	Kent Appliances Kent RO Systems Limited Varun Oilcon Marketing Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs. 10/- each	Rs. 0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value		Amount
50000	Equity Shares	Rs. 10/- each	Rs. 0.500 Million

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		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		159.221	152.904	145.490
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		159.721	153.404	145.990
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.059
2] Unsecured Loans		2.000	0.000	11.478
TOTAL BORROWING		2.000	0.000	11.537
DEFERRED TAX LIABILITIES		1.196	0.505	0.013
TOTAL		162.917	153.909	157.540
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		77.227	80.450	86.439
Capital work-in-progress		34.866	13.418	0.612
INVESTMENT		0.026	5.497	7.628
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.754	8.655	7.001
	Sundry Debtors	6.395	6.665	8.462
	Cash & Bank Balances	38.526	34.628	39.330
	Other Current Assets	1.408	1.810	2.455
	Loans & Advances	11.973	10.405	14.060
Total Current Assets		67.056	62.163	71.308
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.933	1.128	2.315
	Other Current Liabilities	2.456	1.460	1.375
	Provisions	5.869	5.031	4.757
Total Current Liabilities		16.258	7.619	8.447
Net Current Assets		50.798	54.544	62.861
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		162.917	153.909	157.540

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	51.811	48.424	51.329
		Other Income	NA	8.969	5.406
		TOTAL (A)	NA	57.393	56.735
Less	EXPENSES
		Purchases Trading Goods		0.165	0.119
		Consumption of Material		11.700	11.388
		Manufacturing Expenses		6.617	8.082
		Personnel Expenses	NA	6.769	7.158
		Administrative Expenses		5.676	4.948
		Selling Expenses		3.387	4.368
		Increase/ Decrease in Stock		[0.050]	[0.297]
		TOTAL (B)	NA	34.264	35.766
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	23.129	20.969
Less	FINANCIAL EXPENSES (D)		NA	0.575	0.480
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		NA	22.554	20.489
Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	6.064	4.427
	PROFIT BEFORE TAX (E-F) (G)		15.378	16.490	16.062
Less	TAX (I)		9.060	9.076	8.956
	PROFIT AFTER TAX (G-I) (J)		6.318	7.414	7.106
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1.266	0.485	NA
	TOTAL EARNINGS		1.266	0.485	NA
	IMPORTS
		Raw Materials	1.130	3.368	NA
	TOTAL IMPORTS		1.130	3.368	NA
	Basic/ Dilute Earnings Per Share (Rs.)		126.36	148.28	142.12

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	12.92	12.52
Net Profit Margin (PBT/Sales)	(%)	29.68	34.05	31.29
Return on Total Assets (PBT/Total Assets}	(%)	10.66	11.56	10.18
Return on Investment (ROI) (PBT/Networth)		0.10	0.11	0.11
Debt Equity Ratio (Total Liability/Networth)		0.11	0.05	0.14
Current Ratio (Current Asset/Current Liability)		4.12	8.16	8.44

LOCAL AGENCY FURTHER INFORMATION

Operations:

During the year the company has achieved a turnover of Rs. 51.811 Millions with a Net Profit before tax of Rs. 15.378 Millions as against a turnover of Rs. 48.424 Millions with a Net Profit before tax of Rs. 16.490 Millions. in the previous year.

Contingent Liabilities and Provisions:

Contingent liabilities are disclosed after an evaluation of the facts and legal aspects of the matter involved. Provisions are recognized when the company has a legal/ constructive obligation and on management discretion as a result of past event, for which it is probable that a cash outflow may be required and a reliable estimate can be made of the amount of the obligation.

Bankers Charges Report as per Registry

Name of the company	S S APPLIANCES PRIVATE LIMITED
Presented By	Canara Bank, South Extension, Part-I, New Delhi, India
1) Date and description of instrument creating the change	Agreement for Discounting of Supply bills dated 16.02.1990
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 0.050 Million
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	First charge over the amounts receivables by borrower in respect of suppliers made to the purchase form time to time against which the borrower has drawn supply bills or any other similar type of instrument and obtained advances form the bank theroen.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest @ 5.5% p.a. above RBI rate with a minimum of 15.5% p.a. Supply bills not to outstand beyond 45 days 2% penal Interest for supply bills outstanding beyond 45 days
5) Name and Address and description of the person entitled to the charge.	Canara Bank, South Extension, Part-I, New Delhi, India
6) Date and brief description of instrument modifying the charge	Nil
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.	Nil

Corporate identity number of the company	U74899DL1988PTC030560
Name of the company	S S APPLIANCES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	H-35, South Extention, Part-I, New Delhi-110049, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	80010586
Type of charge	Immovable Property
Particular of charge holder	Oriental Bank of Commerce, Vasundhara Enclave, New Delhi-110091, India
Nature of instrument creating charge	The Property is mortgaged to collateral secure the credit facilities of Rs. 55.000 Millions (Cash Credit – Hypothecation Rs. 15.000 Millions and Letters of Credit Rs. 40.000 Millions) granted by the bank to Kent Appliances. The company has also undertaken a corporate guarantees to secure the repayment of the credit facilities of Rs. 55.000 Millions granted by the bank to Kent Appliances.
Date of instrument Creating the charge	26.03.2010
Amount secured by the charge	Rs. 55.000 Millions
Short particulars of the property charged	Property situates at C-15, Sector 7, Noida Uttar Pradesh
Date of instrument modifying the charge	29.08.2006
Particulars of the present modification	The Cash Credit (Hypothecation) limit has been reduced from Rs. 20.000 Millions to Rs. 15.000 Millions and the Letters of Credit Limit (Import) has been enhanced from Rs. 30.000 Millions to Rs. 40.000 Millions.

Fixed Assets:

· Land and Factory Buildings

· Office

· Flat

· Machinery

· Computer

· Furniture and Fixtures

· Type Writer and Office Equipments

· Fire Extinguisher

· Scooter

· Motor Cars

· Cycles

· Tampoo

· Generator

· Air Conditioner

· Photostate Machine

· Fax and Telephone Systems

· Refrigerator

· P.A. Systems

· Coollers and Fan

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.45.44
UK Pound	1	Rs.70.61
Euro	1	Rs.58.63

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	NO
--AFFILIATION	YES/NO	YES
--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.