MIRA INFORM REPORT

Report Date :

12.07.2012

IDENTIFICATION DETAILS

Name :	L N ENGINEERING WORKS PRIVATE LIMITED
Registered Office :	210, Kaliamdas Udyog Bhuvan, Near Century Bazar, Worli, Mumbai-400018, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	06.10.1989
Com. Reg. No.:	11-053803
Capital Investment / Paid-up Capital :	Rs.1.708 Millions
CIN No.: [Company Identification No.]	U29300MH1989PTC053803
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Kitchen Appliances.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 290000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track record. There appears slight dip in the profitability of the company. However, 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 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.

INFORMATION DECLINED

Name :	Mr. Deepak
Designation :	Accounts Manager
Contact No.:	91-22-24315500
Date :	11.07.2012

LOCATIONS

Registered Office :	210, Kaliamdas Udyog Bhuvan, Near Century Bazar, Worli, Mumbai-400018, Maharashtra, India
Tel. No.:	91-22-24315500 [8 Lines] / 24379457
Fax No.:	91-22-24362543
E-Mail :	niralicookware@vsnl.com
Website :	www.niralicookware.com
Factory 1 :	Plot No. 54, Vasai Taluka, Industrial Estate, Sector II, Goudaipada, Vasai (East), Thane, Maharashtra, India
Factory 2 :	Plot No. 10/A, Near Blue Chip Industrial Estate No.4, Waliv Phata, Sativalli Road, Vasai (East), Thane, Maharashtra, India
Tel. No.:	95-250-2457772/73

DIRECTORS

As on 30.09.2011

Name :	Mrs. Rita Bhailal Gada
Designation :	Director
Address :	2, Vincent View, Dr. B. A. Road, Dadar, Mumbai 400014, Maharashtra, India
Date of Birth/Age :	07.04.1966
Date of Appointment :	01.04.1992
Din No.:	01840789
Name :	Mr. Navin Ratanshi Gada
Designation :	Director
Address :	701, Royal Grace, 7^th floor, Lokmanya Vasahat Marg, Dadar [East], Mumbai 400014, Maharashtra, India
Date of Birth/Age :	09.01.1956
Qualification :	B.S.C.
Date of Appointment :	01.04.2003
Din No.:	00651876
Name :	Mr. Shrenik Navin Gada
Designation :	Director
Address :	701, Royal Grace, Plot No. 28, Lokmanya Tilak Marg, No. 2, Dadar, Mumbai-400014, Maharashtra, India
Date of Birth/Age :	05.12.1986
Date of Appointment :	01.10.2010
Din No.:	03477853
Name :	Mr. Bhailal Ratanshi Gada
Designation :	Director
Address :	702, Royal Grace, Plot No. 28, Lokmanya Tilak Marg, No. 2, Dadar, Mumbai-400014, Maharashtra, India
Date of Birth/Age :	12.07.1961
Date of Appointment :	01.04.2011
Din No.:	00701044

KEY EXECUTIVES

Name :	Mr. Deepak
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Navin Ratanshi Gada jointly with Leena Gada	76400
Bhailal Ratanshi Gada jointly with Rita Bhailal Gada	76400
Leena Gada jointly with Navin Gada	9000
Rita Bhailal Gada jointly with Bhailal Ratanshi Gada	9000
Total	170800

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Kitchen Appliances.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Kitchen Appliance	7615.192

PRODUCTION STATUS [AS ON 31.03.2011]

Installed Capacity	840000 Pcs.
Actual Production	580281 Pcs.

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

· The Saraswat Co-operative Bank Limited, SME Branch, Popatlal Niwas, 1^st Floor, Ranade Road, Dadar, Mumbai-400028, Maharashtra, India

· State Bank of India

Facilities :

SECURED LOAN	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Cash Credit	36.803	22.119
FCNR [Secured against hypothecation of stocks and book debts]	0.000	14.951
TERM LOANS [SECURED AGAINST RESPECTIVE ASSETS]
Factory Building	0.000	0.845
Machinery	0.126	0.968
Imported Machinery	1.771	2.827
Electrical Equipment	0.333	0.636
Bank Loan [against FD of group company]	22.536	22.591
Total	61.569	64.937
UNSECURED LOAN
From Directors	54.406	37.700
Loan From Others	14.139	14.139
Deposit From Customers	2.236	1.641
Total	70.781	53.480

Banking Relations :	--
Auditors :
Name :	Chetan N. Dedhia Chartered Accountants
Address :	48, Patwa Chamber, 104/108, Clive Road, Masjid Bunder, Mumbai-400009, Maharashtra, India
Pan No.:	AACPD8235C
Related Parties :	Jyoti (India) Metal Inds. Private Limited

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
170800	Equity Shares	Rs.10/- each	Rs.1.708 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		1.708	1.708	1.708
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		70.905	53.249	34.774
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		72.613	54.957	36.482
LOAN FUNDS
1] Secured Loans		61.569	64.937	49.299
2] Unsecured Loans		70.781	53.480	46.535
TOTAL BORROWING		132.350	118.417	95.834
DEFERRED TAX LIABILITIES		4.193	4.330	3.780
TOTAL		209.156	177.704	136.096
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		49.021	48.629	60.345
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		8.675	8.675	0.010
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	67.484	80.005	30.488
	Sundry Debtors	97.348	75.687	56.427
	Cash & Bank Balances	2.402	1.586	1.662
	Other Current Assets	0.871	1.070	1.072
	Loans & Advances	21.761	7.198	3.715
Total Current Assets		189.866	165.546	93.364
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	14.362	29.931	12.275
	Other Current Liabilities	1.600	1.252	1.274
	Provisions	22.444	13.963	4.074
Total Current Liabilities		38.406	45.146	17.623
Net Current Assets		151.460	120.400	75.741
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		209.156	177.704	136.096

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income			171.397
		Other Income			0.182
		TOTAL (A)	375.177	309.504	171.579
Less	EXPENSES
		Cost of Goods Sold			96.447
		Manufacturing Expenses			18.304
		Salaries, Wages and Other Benefits	334.715	267.559	4.460
		Marketing and Selling Expenses			24.203
		Administrative Expenses			6.935
		TOTAL (B)	334.715	267.559	150.349
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		40.462	41.945	21.230
Less	FINANCIAL EXPENSES (D)				12.447
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		14.578		8.783
Less/ Add	DEPRECIATION/ AMORTISATION (F)			NA	2.800
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		25.884		5.983
Less	TAX (H)		8.228		2.367
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		17.656	18.358	3.616
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	10.540	3.022	6.575
	Earnings / (Loss) Per Share (Rs.)		104.54	107.48	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.70	5.93	2.11
Net Profit Margin (PBT/Sales)	(%)	NA	NA	3.49
Return on Total Assets (PBT/Total Assets}	(%)	10.84	NA	3.89
Return on Investment (ROI) (PBT/Networth)		0.35	NA	0.16
Debt Equity Ratio (Total Liability/Networth)		2.35	2.97	3.11
Current Ratio (Current Asset/Current Liability)		4.94	3.67	5.30

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors	14.362	29.426	12.275
Sundry Creditors (Delhi Branch)	0.000	0.505	0.000
Total	14.362	29.931	12.275

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U29300MH1989PTC053803
Name of the company	L N ENGINEERING WORKS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	210, Kaliamdas Udyog Bhuvan, Near Century Bazar, Worli, Mumbai-400018, Maharashtra, India
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	The Saraswat Co-operative Bank Limited, SME Branch, Popatlal Niwas, 1^st Floor, Ranade Road, Dadar, Mumbai-400028, Maharashtra, India Email: svg1959@yahoo.com
Nature of description of the instrument creating or modifying the charge	Agreement of Hypothecation of Moveable Property.
Date of instrument Creating the charge	18.01.2012
Amount secured by the charge	Rs.10.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest @14.25% per annum or at such rate as may from time to time be fixed by the Bank. Terms of Repayment Repayable on Demand, renewal every year within maximum period of six months from the close of the accounting year of the Company/ Firm. Margin 30% Extent and Operation of the charge The Charge will operate to the Extent of Rs.10.000 Millions on the security offered of the Company.
Short particulars of the property charged	The Borrower/s doth do hereby Hypothecate to and in favour of the Bank all the Stocks, Tangible movable property (both present and future) belonging to the Borrower/s. The Borrower/s doth/do further hereby Hypothecate and Charge in favour of the Bank by way of First Charge all the Book Debts, Outstanding, Monies Receivable, Claims and Bills which now due and Owing Or which may at any time hereafter during the continuance of this security become due and owing to the Borrower/s in the Course of the Business by any Person, Firm, Company or by the Government or any Local or Public Body or Authority as security for due repayment to the Bank at ay time on demand.

CONTINGENT LIABILITY:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
In respect of counter guarantee given by bank to custom / excise department	1.570	1.570
Total	1.570	1.570

FIXED ASSETS:

• Lease Hold Plot
• Building
• Office Premises
• Factory Land – Vasai
• Factory Building – Vasai
• Factory Elevators
• Plant and Machinery
• Electric Installation
• Furniture and Fixtures
• Vehicles
• Dies and Plates
• Office Equipments
• Air Conditioners
• Computers

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 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.55.37
UK Pound	1	Rs.85.95
Euro	1	Rs.67.87

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		47

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.