MIRA INFORM REPORT

Report Date :

22.06.2011

IDENTIFICATION DETAILS

Name :	LAMINA SUSPENSION PRODUCTS LIMITED

Registered Office :	8^th Floor, Ram Bhavan Complex, Kodiabail, Mangalore-575003, Karnataka

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	26.11.1975

Com. Reg. No.:	08-002910

Capital Investment / Paid-up Capital :	Rs.22.067 Millions

CIN No.: [Company Identification No.]	U27109KA1975PLC002910

TAN No.: [Tax Deduction & Collection Account No.]	BLRL00837E

PAN No.: [Permanent Account No.]	AAACL3061H

Legal Form :	A closely held Public Limited Liability Company.

Line of Business :	Manufacturer and Exporter of Automobile Leaf Springs.

No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING

STATUS

PROPOSED CREDIT LINE

26-40

Capability to overcome financial difficulties seems comparatively below average.

Small

Maximum Credit Limit :	USD 160000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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

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. Shaker P.
Designation :	AGM Accounts
Contact No.:	91-824-2407501
Date :	20.06.2011

LOCATIONS

Registered Office :	8^th Floor, Rama Bhavan Complex, Kodialbail, Mangalore-575003, Karnataka, India
Tel. No.:	91-824-2408679/2440556/2440561/2440587
Fax No.:	91-824-2440994
E-Mail :	mylamina@hotmail.com saliancs@gmail.com
Website :	http://www.laminasprings.com
Area :	Owned

Factory:	17/19 B, Industrial Area, Baikmpady, Mangalore-575011, Karnataka, India
Area :	Owned

DIRECTORS

As on 09.07.2010

Name :	Mr. Vinay N Hegde
Designation :	Managing Director
Address :	Sadanand Shiv Bagh, Kadri, Mangalore-575002, Karnataka, India
Date of Birth/Age :	02.04.1939
Date of Appointment :	26.11.1975

Name :	Mr. Ramesh T Shenoy
Designation :	Director
Address :	Vaishalya M.G. Cross Road, Kodialbail (West), Mangalore-575003, Karnataka, India
Date of Birth/Age :	13.04.1937
Date of Appointment :	26.11.1975

Name :	Mr. Guru Prasad Adyanthaya
Designation :	Whole Time Director
Address :	SP 3, Hisg Race, Condominium Martin Pais Road, Hat Hill, Mangalore-575006, Dakshina Kannada, Karnataka, India
Date of Birth/Age :	10.09.1953
Date of Appointment :	26.11.1975

Name :	Mr. Vishal Hegde
Designation :	Director
Address :	Sadanand Shiv Bagh, Kadri, Mangalore-575002, Karnataka, India
Date of Birth/Age :	03.10.1971
Date of Appointment :	23.10.1998
Date of Ceasing:	17.08.2007

Name :	Mr. Jayaram Mulloly
Designation :	Director
Address :	Pusha Marnamikatta, Mangalore-575001, Dakshina Kannada, Karnataka, India
Date of Birth/Age :	14.02.1942
Date of Appointment :	30.09.1996

Name :	Mr. Avinash Shenoy
Designation :	Director
Address :	Vaishalya, M G Road, Kodialguthu West, Mangalore-575003, Dakshina Kannada, Karnataka, India
Date of Birth/Age :	21.11.1977
Date of Appointment :	17.08.2007

Name :	Mr. Surendra J Reddy
Designation :	Director
Address :	12/13, Langford Road, Bangalore-560025, Karnataka, India
Date of Birth/Age :	26.06.1937
Date of Appointment :	08.09.2008

KEY EXECUTIVES

Name :	Mr. Kumaravel R
Designation :	Secretary
Address :	Grace 289, 32 Main J P Nagar, Bangalore-560078, Karnataka, India
Date of Birth/Age :	17.06.1939
Date of Appointment :	10.04.2000

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 09.07.2010

Names of Shareholders		No. of Shares
N V Hegde		8833
T R Shenoy		13357
G P Adyanthaya		13626
Sujatha V Hegde		268
B R Adyanthaya		250
Heera V Adyanthaya		250
Asha Y Ajila		110
Sumitra R Shetty		100
Shambhavi V Shetty and Archana Shetty		100
Mohini R Shenoy		410
N Vishwanath Adyanthaya		130
Nirmala Adyanthaya		240
Vishal Hegde		4770
S S Adyanthaya		100
Bhavani Adyanthaya		100

As on 09.07.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		94.20
Other		5.80
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Automobile Leaf Springs.

Products :

Product Description	Item Code
Leaf Springs for Motor Vehicles	732010.01

Exports :

Products :

Automobile

Countries :

USA
UK
Europe

Terms :

Selling :

L/C / Cash / Credit

Purchasing :

Cash / Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Unit	Quantity (M.T)
Installed Capacity	12000
Actual Production	8673

Note: Production does not include the quantity of 260 MT (Previous year 338 MT) of springs produced on conversion basis.

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

Not Divulged

Bankers :

Syndicate Bank, Hampankatta Branch, Mangalore-575001, Karnataka, India
Corporation Bank, Vishwa Kamala Building, Main Road, Baikampady, Mangalore-575011, Karnataka, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Overdraft with Syndicate bank	76.837	74.124
Corporate Loan - Syndicate Bank	49.845	60.181
Term Loan - Lamina Employees Multi Purpose Co-Operative Society	9.327	4.662
Total	136.009	138.967

Unsecured Loan
Deposits from Shareholders and Others	34.270	30.788
Trade Deposits	13.892	13.060
Loans and Deposits from other Companies	56.491	67.655
Total	104.653	111.503

Note:

Working capital loan as referred to in item no. (i) is secured by hypothecation of stock in trade, book debts and personal guarantees of Promoter Directors.

Corporate loan as referred to in item no. (ii) is secured by pari passu charge on the entire fixed assets of the Company.

Term loan as referred to in item no. (iii) is secured by mortgage of the Company's properties at Calicut, Vijayawada and Madurai. It is also secured by personal guarrantees of the promoter directors.


Banking Relations :	--

Auditors :
Name :	G Hariram Shenoy Chartered Accountant
Address :	No. 5 and 6 Sevashram Apartments, Bunts Hostel Road, Mangalore-575003, Karnataka, India

Associates/Subsidiaries :	Lamina Foundries Limited (L85110KA1981PLC004151) Lamina Engineering Company Private Limited Manment Engineering Products Private Limited Elespee Product Private Limited Lamina International General Engineering Services and Industries

CAPITAL STRUCTURE

As on 09.07.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
45690	Equity Shares	Rs.500/- each	Rs.22.845 Millions
71550	Preferences Shares	Rs.100/- each	Rs.7.155 Millions
	Total		Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
44135	Equity Shares	Rs.500/- each	Rs.22.067 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		22.067	22.067	22.067
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		19.614	16.831	15.915
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		41.681	38.898	37.982
LOAN FUNDS
1] Secured Loans		136.009	138.967	103.119
2] Unsecured Loans		104.653	111.503	89.080
TOTAL BORROWING		240.662	250.470	192.199
DEFERRED TAX LIABILITIES		4.962	4.900	4.210

TOTAL		287.305	294.268	234.391

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		98.545	99.279	92.997
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		17.039	16.064	16.074
DEFERREX TAX ASSETS		0.625	0.625	0.625

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	120.728	136.641	106.007
	Sundry Debtors	151.219	145.139	158.345
	Cash & Bank Balances	58.226	29.939	21.519
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	21.786	30.013	20.441
Total Current Assets		351.959	341.732	306.312
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	136.149	133.271
	Other Current Liabilities	23.771	15.330	164.419
	Provisions	20.943	14.831	17.198
Total Current Liabilities		180.863	163.432	181.617
Net Current Assets		171.096	178.300	124.695

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		287.305	294.268	234.391

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	704.213	764.515	671.192
		Other Income	2.688	3.048	2.937
		TOTAL (A)	706.901	767.563	674.129

Less	EXPENSES
		Material and manufacturing expenses	507.450	592.156	490.684
		Employees remuneration and benefits	81.687	73.569	69.423
		Other expenses	44.865	41.870	56.559
		Excess provision of taxes for earlier years	0.000	(1.967)	0.000
		Prior period adjustments	0.000	0.000	0.021
		TOTAL (B)	634.002	705.628	616.687

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		72.899	61.935	57.442

Less	FINANCIAL EXPENSES (D)		40.115	37.008	31.962

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		32.784	24.927	25.480

Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.613	8.073	6.368

	PROFIT BEFORE TAX (E-F) (G)		24.171	16.854	19.112

Less	TAX (H)		8.062	4.462	7.240

	PROFIT AFTER TAX (G-H) (I)		16.109	12.392	11.872

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.992	0.899	0.193

Less	APPROPRIATIONS
		Transfer to General Reserve	1.710	1.239	1.187
		Proposed Dividend on Equity Shares	11.034	8.827	7.456
		Proposed Dividend on Preferences Shares	0.000	0.626	1.073
		Corporate Dividend Tax	1.875	1.607	1.450
	BALANCE CARRIED TO THE B/S		2.482	0.992	0.899

	Earnings Per Share (Rs.)		365	281	NA

Particulars

31.03.2011

Sales Turnover (Approximately)

800.000

The above information has been parted by Mr. Shaker P.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.28	1.61	1.76

Net Profit Margin (PBT/Sales)	(%)	3.43	2.20	2.85

Return on Total Assets (PBT/Total Assets}	(%)	5.37	3.82	4.79

Return on Investment (ROI) (PBT/Networth)		0.57	0.43	0.50

Debt Equity Ratio (Total Liability/Networth)		10.11	10.64	9.84

Current Ratio (Current Asset/Current Liability)		1.95	2.09	1.69

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

The Company achieved a turnover of Rs. 704.200 Millions as against Rs. 764.500 Millions of previous year. The reduction in turnover was on account of reduced price of our products keeping in tune with the reduced raw material prices. The sales in terms of quantity was 8884 tons as against 8819 tons which is marginally higher than that of previous year.

During the year under report, the domestic market recovered from the recession suffered during the previous year. The market showed remarkable turn around during the last quarter of the financial year. However, the international market was subdued and the sales showed a decline from 3509 tons 2870 tons due to recessionary conditions prevailing in the international market and more particularly in the European countries. This situation is likely to continue for some more time. The Directors are confident that the buoyancy in domestic market will continue during the year 2010-11 also which will take care of any possible drop in the international market.

The improvement in domestic sales by more than 12% has resulted in remarkable improvement in the company's margin. Added to this, decrease in raw material price helped the company to improve the gross margin on the products. The profit before tax has therefore increased by more than 62%.

Fixed Assets:

Freehold Land
Building
General Machinery
Furniture and Fixtures
Office Appliances
Vehicles
Plant and Machinery

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.44.91
UK Pound	1	Rs.72.90
Euro	1	Rs.64.48

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		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.

MIRA INFORM REPORT

120.728

151.219

58.226

0.000

21.786

351.959

136.149

23.771

20.943

180.863

171.096

2.28

3.43

5.37

0.57

10.11

1.95

Unit