MIRA INFORM REPORT

Report Date :

09.03.2011

Note: The correct name of the company is NILSAN NISHOTECH SYSTEM PRIVATE LIMITED

IDENTIFICATION DETAILS

Name :	NILSAN NISHOTECH SYSTEM PRIVATE LIMITED (w.e.f. 11.11.2010)
Formerly Known As :	NISHOTECH SYSTEMS PRIVATE LIMITED
Registered Office :	W199-E, MIDC, Khairane, TTC Industrial Area, Thane Belapur Road, Navi Mumbai-400 705, Maharasahtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.05.1996
Com. Reg. No.:	11-99783
CIN No.: [Company Identification No.]	U74999MH1996PTC099783
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Water Treatment Purification Systems, Accessories and Providing Purification Solutions.

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 180000
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

INFORMATION DECLINED BY

Name :	Ms. Shilpa
Designation :	Accounts Department
Date :	08.03.2011

LOCATIONS

Registered Office :	W199-E, MIDC, Khairane, TTC Industrial Area, Thane Belapur Road, Navi Mumbai-400 705, Maharasahtra, India
Tel. No.:	91-22-41515151\5773021
Fax No.:	91-22-41515150
E-Mail :	nilesh@nishotech.com

DIRECTORS

Name :	Mr. Nilesh C. Badani
Designation :	Chairman cum Managing Director
Address :	23/24, Vora Apartments, Vallabhbaug Lane, Ghatkopar (East), Mumbai-400 027, Maharasahtra, India
Date of Birth/Age :	24.12.1962
Date of Appointment :	15.05.1996
Name :	Mr. Shoeb A. Kurwadwala
Designation :	Director
Address :	603, Jyoti Vidya, CSTRoad, Kalina, Santacruz (East), Mumbai-400 098, Maharasahtra, India
Date of Birth/Age :	11.12.1960
Date of Appointment :	15.05.1996
Name :	Mr. Sanjay C. Badani
Designation :	Chairman Cum Managing Director
Address :	23/24, Vora Apartments, Vallabhbaug Lane, Ghatkopar (East), Mumbai-400 027, Maharasahtra, India
Date of Birth/Age :	09.04.1964
Date of Appointment :	01.02.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2008

Names of Shareholders	No. of Shares
Nilesh Group
Nilesh Badani	170400
Priti Badani	26400
Nilesh HUF	24000
C. C. Badani	3600
Sanjay Group
Sanjay Badani	112800
Kashmira Badani	18000
Sanjay HUF	15180
C. C. Badani	3600
Shoeb Group
Shoeb Kurawadwala	125220
Sakina Kurawadwala	6000
Sarfraz	2400
Abbasali	1200
Husseina	1200
Total	510000

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Water Treatment Purification Systems, Accessories and Providing Purification Solutions.

GENERAL INFORMATION

No. of Employees :

Not Divulged by the Management

Bankers :

· Canara Bank, Vikhroli (West), Hazeri Bagh, LBS Marg, Vikhroli, Mumbai-400 019, Maharasahtra, India

· Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227,D, Nariman Point, Mumbai- 400 021, Maharashtra, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Banks O/D A/c. (Secured Against Hypothecation of Stock and Personal Guarantee of Directors)	0.000	3.003
From Banks OCC A/c. (Secured Against Hypothecation of Book Debts and Personal Guarantee of Directors)	15.747	7.117
From Banks Term Loan (Secured Against Hypothecation of Machineries, Personal Guarantee of Directors)	0.398	0.567
From Banks Term Loan (Secured Against Mortgage of Factory Building and Personal Guarantee of Directors)	0.294	1.782
From Banks Buyer's Credit A/c.	0.000	6.338
From Banks Packing Credit A/c. (Secured Against Export Orders)	7.077	6.900
Total	23.516	25.707

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Directors	9.804	11.181
From Members	10.774	9.862
From Inter Company	14.592	10.222
Total	35.170	31.265

Banking Relations :	-
Auditors :
Name :	C. D. Mehta and Associates Chartered Accountants
Address :	405, Bhaveshwar Complex, Opposite Vidya vihar Bus Depot, Vidya Vihar (West), Mumbai-400 086, Maharasahtra, India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- Each	Rs.6.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
510000	Equity Shares	Rs.10/- Each	Rs.5.100 Millions

Notes:

Includes the 467500 Equity Shares were allotted as fully paid up Bonus Shares by way of capitalization of General Reserves Accounts

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		5.100	5.100	5.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		40.699	37.696	30.958
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		45.799	42.796	36.058
LOAN FUNDS
1] Secured Loans		23.516	25.707	14.319
2] Unsecured Loans		35.170	31.265	29.224
TOTAL BORROWING		58.686	56.972	43.543
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		104.485	99.768	79.601
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.623	45.537	23.895
Capital work-in-progress		0.000	3.801	12.059
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.353	34.814	31.506
	Sundry Debtors	70.520	68.965	85.794
	Cash & Bank Balances	7.972	10.540	12.328
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	21.775	24.509	28.053
Total Current Assets		145.620	138.828	157.681
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	73.469	71.546	91.093
	Other Current Liabilities	2.618	1.429	3.646
	Provisions	9.671	15.423	19.295
Total Current Liabilities		85.758	88.398	114.034
Net Current Assets		59.862	50.430	43.647
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		104.485	99.768	79.601

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	201.505	251.715	259.278
		Other Income	13.388	11.503	NA
		TOTAL (A)	214.893	263.218	NA
Less	EXPENSES
		Cost of Goods Sold	120.475	158.390
		Manufacturing and Other Expenses	11.682	16.070	NA
		Selling and Administrative Expenses	64.012	67.467
		TOTAL (B)	196.169	241.927	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		18.724	12.291	NA
Less	FINANCIAL EXPENSES (D)		6.256	5.889	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.468	15.402	NA
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.285	5.191	NA
	PROFIT BEFORE TAX (E-F) (G)		4.183	10.211	11.572
Less	TAX (H)		1.183	3.560	7.014
	PROFIT AFTER TAX (G-H) (I)		3.000	6.651	4.558
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.996	4.558	NA
	Excess (Short) Provision of tax written back/off		0.003	0.086	NA
Less	APPROPRIATIONS
		Transfer to General Reserve	3.000	6.651	NA
	BALANCE CARRIED TO THE B/S		1.999	1.996	NA
	Earnings Per Share (Rs.)		5.88	13.04	-

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.40	2.53	NA
Net Profit Margin (PBT/Sales)	(%)	2.08	4.06	4.46
Return on Total Assets (PBT/Total Assets}	(%)	2.20	5.54	6.37
Return on Investment (ROI) (PBT/Networth)		0.09	0.24	0.32
Debt Equity Ratio (Total Liability/Networth)		3.15	3.40	4.37
Current Ratio (Current Asset/Current Liability)		1.70	1.57	1.38

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
For Goods	46.461	45.025	58.509
For Expenses	18.072	18.775	25.598
For Advance	8.936	7.746	6.986

Note:

The registered office of the company has been shifted from 107 Vardhaman Complexlbs Marg, Vikhroli West, Mumbai- 400 083, Maharasahtra, India to the present address w.e.f. 09.04.2009

Bankers Charges Report as per Registry

Corporate identity number of the company	U74999MH1996PTC099783
Name of the company	NISHOTECH SYSTEMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	W199-E, MIDC, Khairane, TTC Industrial Area, Thane Belapur Road, Navi Mumbai-400 705, Maharasahtra, India
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Others Current Assets and Moveable Fixed Assets
Particular of charge holder	Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227,D, Nariman Point, Mumbai- 400 021, Maharasahtra, India
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation.
Date of instrument Creating the charge	09.10.2009
Amount secured by the charge	Rs.71.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC, EPC, FBD, WCTL, TL- Floating over the tenure of the facility. It is linked to Kotak Mahindra Bank's Benchmark Prime Lending Rate. WCDL- As deemed fit by the bank at the time of disbursement. Terms of Repayment EPC - The liquidation of the packing credit advance shall be out of export bill discounted with the bank or out of export realizations only. WCTL, TL - Loan shall be repaid by way of 24 EMIs starting from month following the month of first disbursement of TL. BG - Maximum 24 month including claim period. FFF- Tenure of 12 months. WCDL - On demand as per terms and condition as deemed fit by the bank. Margin FBD - 10% BG - Cash margin - minimum cash margin of 20% shall be provided upfront in the form of Fixed Deposit (100% cash margin for guarantees covering disputed liabilities.) Lien shall be marked on the FD till such time as the BG is cancelled and returned to the bank. LC - minimum cash margin of 20% shall be provided upfront in the form of Fixed Deposit. Lien shall be marked on the Fixed Deposit in favour of the bank. WCDL - On such terms and condition deemed fit by the bank. Extent and Operation of the charge First and exclusive charge created by way of Hypothecation on whole of the Borrower's Present and Future Current and Movable Fixed Assets; to secure the repayment of facilities granted by the Kotak Mahindra Bank Limited to the borrower.
Short particulars of the property charged	The whole of Borrower's current assets and movable fixed assets both present and future as described in Schedule to the Deed of Hypothecation.

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.45.03
UK Pound	1	Rs.72.97
Euro	1	Rs.62.94

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
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	4
--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		43

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.