MIRA INFORM REPORT

Report Date :

19.10.2011

IDENTIFICATION DETAILS

Name :	LAKSHMI TECHNOLOGY AND ENGINEERING INDUSTRIES LIMITED (with effect from 18.10.2004)
Formerly Known As :	LTE Industries Limited (with effect from 18.10.2002) Laxmi Textile Exporters Limited
Registered Office :	No.20, Sitra Kalapatti Road, Kalapatti, Coimbatore-641048, Tamilnadu.
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.04.1968
Com. Reg. No.:	18-000583
CIN No.: [Company Identification No.]	U17111TZ1968PLC000583
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of thrusters, hydraulic pumps, pressurization system modules, actuators and gas motor.
No. of Employees :	Not Available

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 900000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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/Factory :	No.20, Sitra Kalapatti Road, Kalapatti, Coimbatore-641048, Tamilnadu, India
Tel. No.:	91-422-2664100
Fax No.:	91-422-2664121
E-Mail :	fin@lakshmitech.com guruprakash@lakshmitech.com krish@lteindustries.com

DIRECTORS

(AS ON 11.08.2011)

Name :

Mr. Sanjay Jayavarthanavelu

Designation :

Director

Address :

“Shell House” No-695, Avanashi Road, Coimbatore-641037, Tamilnadu, India.

Date of Birth :

15.06.1968

Date of Appointment :

13.05.1992

DIN No :

00004505

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L31200TZ1981PLC001124	Lakshmi Electrical Control Systems Limited	Director	21/06/1989	21/06/1989	-	Active	NO
2	L17111TZ1981PLC001109	Super Sales India Limited	Director	26/11/1989	26/11/1989	-	Active	NO
3	U17111TZ1968PLC000583	Lakshmi Technology And Engineering Industries Limited	Director	13/05/1992	13/05/1992	-	Active	NO
4	U28939TZ1966PLC000559	LAKSHMI PRECISION TOOLS LIMITED	Director	19/06/1992	19/06/1992	21/07/2008	Active	NO
5	U17111TZ1974PLC000712	Lakshmi Ring Travellers (Coimbatore) Limited	Director	19/06/1992	19/06/1992	-	Active	NO
6	L29269TZ1962PLC000463	Lakshmi Machine Works Limited	Managing director	10/9/2010	24/02/1993	-	Active	NO
7	U55101TZ1990PLC002853	Walzer Hotels And Resorts Limited	Director	10/3/1993	10/3/1993	28/07/2007	Active	NO
8	U52599TN1991PLC021857	Lakshmi Cargo Company Limited	Director	3/3/2004	3/3/2004	-	Active	NO
9	L85110TN1989PLC017232	Fortis Malar Hospitals Limited	Director	29/09/2008	31/07/2008	-	Active	NO
10	U80302TZ2009PLC015650	Hermes Academy of Training Limited	Director	2/12/2009	2/12/2009	2/9/2011	Active	NO
11	L29224TN1954PLC000318	Carborundum Universal Limited	Director	30/07/2010	27/01/2010	-	Active	NO
12	L17111TZ1910PLC000093	The Lakshmi Mills Company Limited	Director	22/09/2010	30/07/2010	-	Active	NO
13	U29199TZ1993PLC004443	LMW Machinery Limited	Nominee director	25/07/2011	2/11/2010	17/08/2011	Active	NO

Name :

Mrs. Kasthuri Renga Appaswamy Selvaraj

Designation :

Director

Address :

No.470, Lakshmipuram Mill Colony, Kovilpatti, Tirunelveli-628501, Tamilnadu, India.

Date of Birth :

16.10.1934

Date of Appointment :

15.03.1995

DIN No :

00013882

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U17111TZ1978PTC011945	Shri Laksmi Spinners Private Limited	Managing director	27/09/1978	27/09/1978	15/09/2008	Active	NO
2	U17111TZ1968PLC000583	Lakshmi Technology And Engineering Industries Limited	Director	15/03/1995	15/03/1995	-	Active	NO
3	U00011TZ2003PTC010565	Ravilla Precision Engineering Private Limited	Director	7/4/2004	7/4/2004	-	Active	NO
4	L17111TZ1953PLC000248	VTX Industries Limited	Director	4/9/2009	23/07/2009	-	Active	NO

Name :

Mrs. Jayavarthanavelu Rajyalakhsmi

Designation :

Additional Director

Address :

“Pranaam”, No.26, Circuit House Road, Coimbatore-641018, Tamilnadu, India.

Date of Birth :

23.08.1945

Date of Appointment :

31.01.2011

DIN No :

00004588

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U29191TZ1980PLC000905	Mahalakshmi Engineering Holdings Limited	Director	2/12/2006	18/02/1980	-	Active	NO
2	U31200TZ1983PLC001258	Lakshmi Electrical drives Limited	Director	3/3/1983	3/3/1983	-	Active	NO
3	U51397TZ1991PLC003477	Eshaan Enterprises Limited	Director	23/10/1991	23/10/1991	-	Active	NO
4	U52599TN1991PLC021857	Lakshmi Cargo Company Limited	Director	13/12/1991	13/12/1991	-	Active	NO
5	U63040TZ1981PLC007191	Starline Travels Limited	Managing director	13/10/2007	14/07/1992	-	Active	NO
6	U17111TZ2000PLC009487	Sun Spintex India Limited	Director	15/09/2000	15/09/2000	-	Amalgamated	NO
7	U27310TZ1992PLC003812	Integrated Electrical Controls India Limited	Director	3/3/2004	3/3/2004	-	Active	NO
8	U55101TZ1990PLC002853	Walzer Hotels And Resorts Limited	Director	23/08/2010	27/05/2010	-	Active	NO
9	U17111TZ1968PLC000583	Lakshmi Technology And Engineering Industries Limited	Director	11/8/2011	31/01/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 11.08.2011)

Names of Shareholders	No. of Shares
D. Thayarammal	1200
J.Rajyalakshmi	3600
R. Venkatrangappan	200
Sanjay Jayavarthanavelu	44000
Sathpurushan Veluswamy	200
M/S. Eashan Enterprises Limited, India.	300
Jaidev S. Jayavarthan	400
Shivali Athilakshmi S. Jayavarthan	100
Total	50000

Equity Share Breakup

(AS ON 30.09.2011)

Category	Percentage
Bodies corporate	0.60
Directors or relatives of directors	98.60
Other top fifty shareholders	0.80
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of thrusters, hydraulic pumps, pressurization system modules, actuators and gas motor.

Products :

v Actuators

v Gas Motor

v Hydraulic Pumps

v Pressurization System Modules

v Thrusters

Product Description	Item Code
Plastic Components	84.48
Engg. Components	Not Applicable

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Indian Bank, 31, Variety Hall Road, Coimbtore-641001, Tamilnadu, India.

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Term Loan	22.582	37.046
Cash Credit	22.820	14.261
Total	45.802	51.307

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Loan from Director	12.500	12.500
Interest accrued and due	1.237	1.223
Total	13.737	13.723

Banking Relations :	---
Auditors :
Name :	S. Krishnamoorthy and Company Chartered Accountant
Address :	Kanapathy Towers, 3^rd Floor, No. 1391/A-1, Sathy Road, Ganapathy,Coimbtore-641006, Tamilnadu, India.
Tel. No.:	91-422-4349901 to 09
Fax No.:	91-422-2536673
E-Mail :	skmcoca@skmcoca.com
Income-tax PAN of auditor or auditor’s firm :	AALFS4188C
Associates/Subsidiaries :	v Lakshmi Machine Works Limited v Lakshmi Cargo Company Limited v Lakshmi Ring Travellers (CBE) Limited v Lakshmi Electrical Control Systems Limited v Lakshmi Precision Tools Limited v Super Sales India Limited v Starline Travels Limited v Reiter LMW Machinery Limited v Lakshmi Life Sciences Limited v Ravilla Precision Engineering Private Limited

CAPITAL STRUCTURE

(As On 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Share	Rs.100/- each	Rs.10.000 millions
100000	Preference Share	Rs.100/- each	Rs.10.000 millions
	Total		Rs.20.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity Share	Rs.100/- each	Rs.5.000 millions
	Total		Rs.5.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		5.000	5.000	5.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		220.848	210.115	190.536
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		225.848	215.115	195.536
LOAN FUNDS
1] Secured Loans		45.402	51.307	41.866
2] Unsecured Loans		13.738	13.723	12.577
TOTAL BORROWING		59.140	65.030	54.443
DEFERRED TAX LIABILITIES
TOTAL		284.988	280.145	249.979
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		140.702	164.665	151.937
Capital work-in-progress		3.637	0.000	19.390
INVESTMENT		69.083	69.083	68.583
DEFERREX TAX ASSETS		4.230	2.777	0.222
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	91.236	103.917	109.092
	Sundry Debtors	87.120	97.427	64.745
	Cash & Bank Balances	2.640	13.658	14.563
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	35.041	25.672	32.710
Total Current Assets		216.037	240.674	221.110
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	60.206	75.537	79.570
	Other Current Liabilities	85.592	109.602	120.768
	Provisions	2.903	11.915	10.925
Total Current Liabilities		148.701	197.054	211.263
Net Current Assets		67.336	43.620	9.847
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		284.988	280.145	249.979

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Net sales and Job work Receipts	255.056	314.491	267.008
		Other Income	15.757	13.453	20.999
		TOTAL (A)	270.813	327.944	288.007
Less	EXPENSES
		Operating Expenses	151.637	184.661	147.844
		Administrative and Selling Expenses	20.724	22.190	20.449
		Employee Cost	50.114	46.178	45.923
		TOTAL (B)	222.475	253.029	214.216
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		48.338	74.915	73.791
Less	FINANCIAL EXPENSES/INTEREST PAID (D)		4.531	4.872	3.218
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		43.807	70.043	70.573
Less	DEPRECIATION (F)		32.134	41.022	35.151
	PROFIT BEFORE TAX (E-F) (G)		11.673	29.021	35.422
Less	TAX (I)		(0.513)	6.527	11.433
	PROFIT AFTER TAX (G-I) (J)		12.186	22.494	23.991
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		128.616	111.286	93.720
Less	APPROPRIATIONS
		Transfer to General Reserve	1.219	2.249	3.500
		Dividend	1.250	2.500	2.500
		Tax on Dividend	0.202	0.415	0.425
	BALANCE CARRIED TO THE B/S		138.131	128.616	111.286
	EARNINGS IN FOREIGN CURRENCY
		Export of Goods and Services	23.688	25.841	5.704
	TOTAL EARNINGS		23.688	25.841	5.704
	IMPORTS
		Raw Materials and Spares	33.629	27.363	49.382
		Capital Goods	17.006	9.745	23.533
	TOTAL IMPORTS		50.635	37.108	72.915
	Earnings Per Share (Rs.)		243.73	449.88	479.82

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.50	6.86	8.33
Net Profit Margin (PBT/Sales)	(%)	4.58	9.23	13.27
Return on Total Assets (PBT/Total Assets}	(%)	3.27	7.16	9.49
Return on Investment (ROI) (PBT/Networth)		0.05	0.13	0.18
Debt Equity Ratio (Total Liability/Networth)		0.92	1.22	1.36
Current Ratio (Current Asset/Current Liability)		1.45	1.22	1.04

LOCAL AGENCY FURTHER INFORMATION

Note:

The Registered Office of the company has been shifted from 34A, Kamaraj Road, Coimbatore-641018, Tamilnadu, India to the present address with effect from 01.04.2009

FORM 8:

Corporate identity number of the company

U17111TZ1968PLC000583

Name of the company

LAKSHMI TECHNOLOGY AND ENGINEERING INDUSTRIES LIMITED

Address of the registered office or of the principal place of business in India of the company

No.20, Sitra Kalapatti Road, Kalapatti, Coimbatore-641048, Tamilnadu, India

Email Id : guruprakash@lakshmitech.com

This form is for

Modification of charge

Charge identification number of the charge to be modified

90006686

Type of charge

Immovable Property

Book debts

Movable Property

Floating Charge

Particular of charge holder

Indian Bank, 31, Variety Hall Road, Coimbatore-641001, Tamilnadu, India.

Email Id: coimbatoremain@indianbank.co.in

Nature of instrument creating charge

· Agreement of Deposit of Title Deeds

· Agreement of hypothecation of movables

Date of instrument Creating the charge

06.05.2011

Amount secured by the charge

Rs. 372.600 millions

Brief of the principal terms an conditions and extent and operation of the charge

a) Rate of Interest :

New T.L :1.25%+Bank’s Base Rate

OCC : 2.25%+Bank’s Base Rate

Letter of Credit and Guarantee : As may be stipulated by RBI

b) Terms of Repayment :

New Term Loan of Rs.60.000 millions-60 EMI of Rs.1.000 million each.

OCC, Letter of Credit and Performance/ Money Guarantee – On Demand by Bank

Old Term Loan as per the Original Term loan agreement.

c) Margin :

OCC - 25% of securities hypothecated

Term Loans - 25% of securities hypothecated

Letter of Credit - 10% of securities hypothecated

d) Extent and operation of the charge :

The Charge operates as a security for the due repayments of loan with interest, charges, expenses and claims. First charge on the immovable and movable properties (as detailed in the agreement) to secure the total credit facilities of Rs.372.600 millions.

Short Particulars of the property charged

i) Goods, Produce, Merchandise, Raw materials, Stock stored or to be stored from time to time in premises at No.20, Sitra-Kalapatti Road, Kalapatti, Coimbatore-641048, Tamilnadu, India.

ii) Plant and Machinery (existing and to be purchased) as per annexure.

Book debts, Receivables other claims

iii) 3.63 acres of landed property at S.F.No 277/2 situated at No.20, Sitra-Kalapatti Road, Kalapatti Village, Coimbatore Reg. District, Gandhipuram Sub Reg. District together with buildings.

iv) 28.98 Acres of landed property together with bulding situated at Chennai Arakonam Road, Mappedu Village, Thiruvallur TK.

Date of instrument modifying the charge

08.03.2010

Particulars of the present modification

The total limit enhanced from Rs.341.400 millions to Rs.372.600 nillions as detailed below and charges on the properties of the company has been extended to secure the enhanced limit of Rs.372.600 millions.

(Rs. In millions)

Facilities	Existing	Enhanced
OCC	40.000	20.000
L.C	35.000	35.000
P/MG	200.00	200.000
TL-Old	36.400	22.600
TL-New	---	60.000
F.C	30.000	35.000

FIXED ASSETS:

v Land

v Building

v Plant and Machinery

v Vehicles

v Furniture and Fixtures

v Office Equipments

v Computer

v Software

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.49.14
UK Pound	1	Rs.77.58
Euro	1	Rs.67.58

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.