MIRA INFORM REPORT

Report Date :

21.06.2011

IDENTIFICATION DETAILS

Name :	MITA LOCKS PRIVATE LIMITED
Registered Office :	Plot No. F-702 A, Road No. 9F2/14, V.K.I. Area, Jaipur – 302 013, Rajasthan
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	07.10.1988
Com. Reg. No.:	17-023264
Capital Investment / Paid-up Capital :	Rs. 2.214 millions
CIN No.: [Company Identification No.]	U28111RJ1988PTC023264
TAN No.: [Tax Deduction & Collection Account No.]	JPRM04494A
PAN No.: [Permanent Account No.]	AAACM9569R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of a wide range of Sprinklers and its Spare Parts.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 7000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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

INFORMATION PARTED BY

Name :	Mr. Mukesh
Designation :	Director
Date :	14.06.2011

LOCATIONS

Registered Office/Factory :	Plot No. F-702 A, Road No. 9F2/14, VKI Area, Jaipur – 302 013, Rajasthan, India
Tel. No.:	91-141-2460849
Mobile No.:	91-9829017296 (Mr. Mukesh) / 91-9829017297 (Mr. Kaushal Gishore)
E-Mail :	digitalsign123@hotmail.com
Location :	Owned

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Kaushal Kishore
Designation :	Director
Address :	5/46, Parasram Nagar, Dher Ka Balaji, Jaipur – 302 023, Rajasthan, India
Date of Birth/Age :	13.05.1976
Date of Appointment :	26.04.2003
DIN No :	01123127
Name :	Mr. Mukesh Samota
Designation :	Director
Address :	5/46, Parasram Nagar, Dher Ka Balaji, Jaipur – 302 023, Rajasthan, India
Date of Birth/Age :	11.11.1978
Date of Appointment :	26.04.2003
DIN No :	01123246

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Kaushal Kishore	92275
Mukesh Samota	34000
Sita Devi	22680
Sunia Samota	11920
Krishna Choudhary	3000
VK Mukherji	6300
Supria Chakervarty	2000
G S Chakervarty	3000
Abhijit Bhattacharya	1000
Shyameniu Bhattacharya	45200
Total	221375

AS ON 30.09.2010

Category	Percentage
Directors or relatives of Directors	73.00
Other top fifty shareholders	27.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of a wide range of Sprinklers and its Spare Parts.

Products :

Product Description	ITC Code
Marble Blocks	680221

· Sprinklers

· Impact Sprinklers

· Metal Sprinklers

· Gunmetal Sprinklers

· Brass Sprinklers

· Micro Sprinklers

· Rain Guns

· Plastic Sprinklers

· Sprinkler Nozzles

· Irrigation Tools, etc.

Exports :

Products :

· Sprinklers

Countries :

· USA

· Middle East

Terms :

Selling :

Credit (30 days), depends

Purchasing :

Credit (30 days), depends

GENERAL INFORMATION

Customers :

· Wholesalers

· Others

· Manufacturer

No. of Employees :

50 (Approximately)

Bankers :

· Punjab and Sind Bank, Station Road Branch, Jaipur – 302 001, Rajasthan, India

· HDFC Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Reliance Capital (Secured by hypothecation of car swift)	0.169	0.000
HDFC Bank (Secured by Hypothecation of Car)	0.313	0.473
Punjab and Sind Bank (Secured by hypothecation of Raw Material, WIP, Finished Goods and Book Debts and Personal Guarantee of Directors)	7.053	4.039
Total	7.535	4.512
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Directors, Shareholders and Relatives	2.247	1.152
From Others	1.492	2.264
From Banks	0.071	1.335
Total	3.810	4.751

Banking Relations :
Auditors :
Name :	D R Mohnot and Company Chartered Accountant
Address :	C-35, A, Naksatra Pride, B-1, Lagpat Marg, C-Scheme, Jaipur – 302 001, Rajasthan, India
Tel. No.:	91-141-2379413 / 2369885

CAPITAL STRUCTURE

AS ON 31.03.2011

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
221375	Equity Shares	Rs.10/- each	Rs. 2.214 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		2.214	2.213	2.213
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.373	0.373	0.373
4] (Accumulated Losses)		(0.733)	(1.207)	(1.965)
NETWORTH		1.854	1.379	0.621
LOAN FUNDS
1] Secured Loans		7.535	4.512	2.001
2] Unsecured Loans		3.810	4.751	4.006
TOTAL BORROWING		11.345	9.263	6.007
DEFERRED TAX LIABILITIES		0.477	0.363	0.431
TOTAL		13.676	11.005	7.059
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.035	3.685	3.400
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	0.922	1.788	0.842
	Sundry Debtors	14.560	9.040	6.276
	Cash & Bank Balances	1.035	0.026	0.230
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.893	2.902	1.264
Total Current Assets		18.410	13.756	8.612
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.485	6.193	4.928
	Other Current Liabilities	0.158	0.139
	Provisions	0.126	0.104	0.025
Total Current Liabilities		8.769	6.436	4.953
Net Current Assets		9.641	7.320	3.659
MISCELLANEOUS EXPENSES		0.000	0.00	0.000
TOTAL		13.676	11.005	7.059

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	33.905	24.148	14.418
		Other Income
		TOTAL (A)	33.905	24.148	14.418
Less	EXPENSES		31.732	21.847	13.191
		TOTAL (B)	31.732	21.847	13.191
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.173	2.301	1.227
Less	FINANCIAL EXPENSES (D)		1.019	1.092	0.817
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.154	1.209	0.410
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.440	0.414	0.390
	PROFIT BEFORE TAX (E-F) (G)		0.714	0.795	0.020
Less	TAX (H)		0.240	0.037	(0.001)
	PROFIT AFTER TAX (G-H) (I)		0.474	0.758	0.021
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1.207)	(1.965)	(1.986)
	BALANCE CARRIED TO THE B/S		(0.733)	(1.207)	(1.965)
	Earnings Per Share (Rs.)		2.14	3.42	0.09

Particulars	31.03.2011
Sales Turnover (Approximately)	40.000

Expected Sales (2011-2012) : Rs.50.000 millions.

The above information has been parted by Mr. Mukesh.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.40	3.13	0.15
Return on Total Assets (PBT/Total Assets}	(%)	3.18	4.55	0.17
Return on Investment (ROI) (PBT/Networth)		0.38	0.57	0.03
Debt Equity Ratio (Total Liability/Networth)		11.11	11.65	17.65
Current Ratio (Current Asset/Current Liability)		2.10	2.13	1.74

LOCAL AGENCY FURTHER INFORMATION

Note

The Registered Office of the company has been shifted from 94, Jodhpur Park, Kolkata, West Bengal, India to the present address w.e.f. 13.09.2006.

WORKING PERFORMANCE:

The Directors have to inform you that their company have achieved better working results during the year however the Directors are taking necessary steps to revitalize the operation and the directors are hopeful to achieve much better working results during current year.

FORM 8

Corporate identity number of the company	U28111RJ1988PTC023264
Name of the company	MITA LOCKS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. F-702 A, Road No. 9F2/14, VKI Area, Jaipur – 302 013, Rajasthan
This form is for	Modification of charge
Type of charge	· Immovable property
Particular of charge holder	Punjab and Sind Bank Station Road Branch, Jaipur – 302 001, Rajasthan, India
Nature of instrument creating charge	· Memorandum of entry by deposit of title deed
Date of instrument Creating the charge	22.06.2010
Amount secured by the charge	Rs.14.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of interest Interest: @ 1.00% below BPLR i.e., 12.50% p.a., at presently with monthly rests subject to change from time to time. · Terms of repayment CC: Repayable on demand. Term Loan: Rs.0.625 millions pm in 72 Installments + Interest on monthly basis as and when charged. · Margin On ODP Limit - 47% On Term Loan - 25% · Extent and operation of the charge The charge will operate as a first charge by way of equitable mortgage on immovable property of the company to cover ODP Limit of Rs.10.000 millions and Term Loan of Rs.4.500 millions granted to the company by the bank..
Particulars of the property charged	· Equitable Mortgage is extended on immovable property of the company situated at Plot No.F-702 A, Road No.14/9F2, VKI Area, Jaipur, together with all buildings and structures · Standing thereon, fixed plant and machinery erected or to be erected hereafter, both present and future to secure ODP Limit of Rs.10.000 millions and Term loan of Rs.4.500 millions · Totaling Rs.14.500 millions granted to the company by the bank.
Particulars of the present modification	By this modification Equitable Mortgage is extended on immovable property of the company situated at Plot No.F-702 A, Road No.14/9F2, VKI Area, Jaipur, to secure ODP Limit of Rs.10.000 millions and Term loan of Rs.4.500 millions totaling Rs.14.500 millions granted to the company by the bank. Other terms and condition remain unchanged.

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.44.99
UK Pound	1	Rs.72.59
Euro	1	Rs.64.01

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.