MIRA INFORM REPORT

Report Date :

22.06.2012

IDENTIFICATION DETAILS

Name :	ELIN APPLIANCES PRIVATE LIMITED (w.e.f.14.01.2004)
Formerly Known As :	ECI CABLES PRIVATE LIMITED
Registered Office :	Beli Kol Manpurateh Nalagarh, Distt Solan – 173205, Himachal Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.08.2002
Com. Reg. No.:	06-025355
Capital Investment / Paid-up Capital :	Rs.2.000 Millions
CIN No.: [Company Identification No.]	U31300HP2002PTC025355
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Domestic Appliances.
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 380000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is well established company having satisfactory track. There appears a light dip in the profitability of the company during the year 2010-2011. Trade relations are reported to be decent. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered good 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 :	Beli Kol Manpurateh Nalagarh, Distt Solan – 173205, Himachal Pradesh, India
Tel. No.:	91-1795-236988
Fax No.:	91-1795-236898
E-Mail :	rkc@elinindia.com elinbaddi@sancharnet.in
Factory:	Unit I, Village Belikhol, The Nalagarh, Solan – 174101, Himachal Pradesh, India

DIRECTORS

As on 11.08.2011

Name :

Mr. Vikas Sethia

Designation :

Director

Address :

4771, Bharat Ram Raod, 23 Darya Ganj, Delhi – 110002, India

Date of Birth/Age :

18.05.1978

Date of Appointment :

27.09.2004

DIN No.:

01015622

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31300HP2002PTC025355	ELIN APPLIANCES PRIVATE LIMITED	Director	27/09/2004	27/09/2004	-	Active	NO
2	U34100DL2007PLC164171	ELIN AUTO COMPONENTS LIMITED	Director	30/05/2007	30/05/2007	-	Active	NO
3	U32109WB1988PTC095530	ASIAN MAGNETIC DEVICES PRIVATE LIMITED	Director	30/09/2008	1/08/2008	-	Active	NO
4	U70101DL2011PTC212855	MAVIKA ESTATE CREATORS PRIVATE LIMITED	Director	19/01/2011	19/01/2011	-	Active	NO
5	U32301WB1997PTC082621	CALCUTTA ELECTRONICS PRIVATE LIMITED	Director	28/05/2012	28/05/2012	-	Active	NO

Name :

Mr. Sharad, Sethia

Designation :

Director

Address :

Sethia Sadan, B – 23, Sector 14, Noida – 201301, Uttar Pradesh, India

Date of Birth/Age :

22.09.1971

Date of Appointment :

27.09.2004

DIN No.:

00275864

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U40101DL2004PTC127077	REVLITE ENERGY SOLUTIONS PRIVATE LIMITED	Director	22/06/2004	22/06/2004	-	Active	NO
2	U31300HP2002PTC025355	ELIN APPLIANCES PRIVATE LIMITED	Director	27/09/2004	27/09/2004	-	Active	NO
3	U29269DL2001PTC111442	MONSET FASTNERS PRIVATE LIMITED	Director	27/06/2007	27/06/2007	29/04/2010	Active	NO
4	U72300DL2007PTC166713	GEO CALL CONNECT SERVICE SOLUTIONS PRIVATE LIMITED	Director	7/08/2007	7/08/2007	-	Active	NO
5	U74140DL2005PTC137784	EM KAY IT SOLUTIONS PRIVATE LIMITED	Managing director	29/12/2007	18/11/2007	-	Active	NO

Name :

Mr.Gaurav Sethia

Designation :

Director

Address :

4771, Bharat Ram Raod, 23 Darya Ganj, Delhi – 110002, India

Date of Birth/Age :

19.03.1985

Date of Appointment :

25.01.2010

DIN No.:

02902047

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31300HP2002PTC025355	ELIN APPLIANCES PRIVATE LIMITED	Director	26/08/2010	25/01/2010	-	Active	NO
2	U70101DL2011PTC212855	MAVIKA ESTATE CREATORS PRIVATE LIMITED	Director	19/01/2011	19/01/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 11.08.2011

Names of Shareholders	No. of Shares
Elin Electronics Limited, India	75000
Asian Megatic Private Limited, India	125000
Total	200000

Equity Share Break up (Percentage of Total Equity)

As on 11.08.2011

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Domestic Appliances.
Products :	Product Description	ITC No
	Electric smoothing irons	851640
	Toaster	851672
	Juicer/mixer/grinder	850900
	Switch	853610
	Connector	853590
	Frame	853890

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Irons	Nos	1500000	1420080
Electric toaster	Nos	100000	61928
Bar blender	Nos	100000	92339
Mixer grinder	Nos	15000	20976
Juicer mixer grinder	Nos	200000	185435
Uday lanteren	Nos	10000	919
Mounting Grid/MCB and Acb	Nos	1200000	17410
Cover frame/ mounting frame	Nos	2700000	60822
Modular switch	Nos	6000000	280440
Comm.connector	Nos	1500000	7080
Controller/motor and starter	Nos	1200000	1600
Fan regulator	Nos	960000	23450
Sockets	Nos	2700000	149200

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· HDFC Bank Limited, HDFC Bank House Senapat Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

· Small Industries Development Bank of India (SIDIB), New Delhi B.O. Videocon Tower, Ground Floor, E – 1, Rani Jhasi Raod, Jhandewalan Extension, New Delhi – 110055, India

· Standard Chartered Bank, 90, MG Road, Fort, Mumbai – 400001, Maharashtra, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Term loan Small industries development bank of india (sidbi) (Secured By First Charge By Way Of Mortgage Of All Immovable And Movable (save & except booh debts) properties of company situated at belikhol, nalagarh, dist Solan, himachal pradesh and hypothecation of plant and machinery, equipments, tools, Spares, accessories and all other assets, both present and in future. The loan is further Secured by personal guarantee of the directors and the corporate guarantee) Of elin electronics limited Amount payable within one year Rs.9.468 Millions( previous year Rs. 11.436 Millions)	26.768	25.413
Working Capital Loan Standard Chartered Bank (Secured by first charge by way of hypothecation of stocks in trade and book debts, both present and in future. Loan from the bank is further secured by personal guarantee of the directors and the corporate guarantee of elin electronics limited)	9.450	20.876
Vehicle Loans HDFC Bank (Secured by way of hypothecation of specific vehicle purchased under the scheme). Above loans are further secured by personal guarantee of a director of the company.	0.858	0.891
Total	37.076	47.180

Banking Relations :	--
Auditors :
Name :	Oswal Sunil and Company Chartered Accountants
Address :	71, Daryaganj, New Delhi – 110002, India
Tel. No.:	91-11-23251582/23262907
Fax No.:	91-11-23275175
E-Mail :	oswalsunilco@gmail.com
PAN.:	AABFO2315D
Holding Company:	· Asian Magnetic Devices Private Limited
Associates :	· Elin Electronics Limited
Enterprises Over Which Key Management Personnel Have Significant Influence :	· Geo Call Connect Solutions Private Limited · Lifelong Elin Auto Company Limited · Magtronic Devices Private Limited · Emkay It solutions Private Limited · Revlite Energy Solutions Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.10/- each	Rs.2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.10/- each	Rs.2.000 Millions

Note: Out of above 125000 shares are held by "Asian Magnetic Devices Private Limited."(Holding Company)

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		2.000	2.000	2.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		95.414	92.317	76.778
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		97.414	94.317	78.778
LOAN FUNDS
1] Secured Loans		37.076	47.180	33.794
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		37.076	47.180	33.794
DEFERRED TAX LIABILITIES		1.427	1.429	0.909
TOTAL		135.917	142.926	113.481
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		76.135	72.134	48.672
Capital work-in-progress		0.063	0.161	9.564
INVESTMENT		2.929	0.950	0.641
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	49.557	51.037	37.121
	Sundry Debtors	58.810	47.053	51.566
	Cash & Bank Balances	2.913	4.446	9.418
	Other Current Assets	0.000	0.000	0.020
	Loans & Advances	16.717	23.245	26.872
Total Current Assets		127.997	125.781	124.997
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	53.251	43.375	38.666
	Other Current Liabilities	11.556	8.440	5.757
	Provisions	6.400	4.285	25.970
Total Current Liabilities		71.207	56.100	70.393
Net Current Assets		56.790	69.681	54.604
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		135.917	142.926	113.481

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	868.913	767.237	669.496
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		Office Expenses	NA	NA	NA
		Administrative Expenses	NA	NA	NA
		Advertising Expenses	NA	NA	NA
		TOTAL (B)	NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		40.903	32.388	33.518
Less	FINANCIAL EXPENSES (D)		10.055	5.895	7.268
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		30.848	26.493	26.250
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.624	6.153	5.408
	PROFIT BEFORE TAX (E-F) (G)		21.224	20.340	20.842
Less	TAX (I)		6.466	4.801	0.920
	PROFIT AFTER TAX (G-I) (J)		14.758	15.539	19.922
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		76.817	61.278	66.755
Less	APPROPRIATIONS
		Transfer to General Reserve	2.500	0.000	2.000
		Dividend	10.000	0.000	20.000
		Tax on Dividend	1.661	0.000	3.399
	BALANCE CARRIED TO THE B/S		77.414	76.817	61.278
	IMPORTS
		Raw Materials	104.146	94.439	71.267
	TOTAL IMPORTS		104.146	94.439	71.267
	Earnings Per Share (Rs.)		74.13	77.67	99.51

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	2.44	2.65	3.11
Return on Total Assets (PBT/Total Assets}	(%)	16.58	16.17	16.67
Return on Investment (ROI) (PBT/Networth)		0.22	0.22	0.26
Debt Equity Ratio (Total Liability/Networth)		0.73	0.59	0.89
Current Ratio (Current Asset/Current Liability)		1.80	2.24	1.78

LOCAL AGENCY FURTHER INFORMATION

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	No
10) Designation of contact person	No
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	--
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

Corporate identity number of the company	U31300HP2002PTC025355
Name of the company	ELIN APPLIANCES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Beli Kol Manpurateh Nalagarh, Distt Solan – 173205, Himachal Pradesh, India Email: rkc@elinindia.com
This form is for	Creation of charge
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	Small Industries Development Bank of India (SIDIB), New Delhi B.O. Videocon Tower, Ground Floor, E – 1, Rani Jhasi Raod, Jhandewalan Extension, New Delhi – 110055, India Email: kelkar@sidbi.in
Nature of instrument creating charge	1) Agreement for term loan limit-cum- hypothecation Dated 27.03.2012 2) Declaration and undertaking Dated 27.03.2012
Date of instrument Creating the charge	27.03.2012
Amount secured by the charge	Rs.7.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest SIDBI PLR (current effective rate of interest being 12.75% p.a.) with monthly rests. Terms of Repayment The loan shall be repaid in 57 monthly installments comprising first 56 installments of Rs. 0.130 Million each and 57th and final installment of Rs. 0.220 Million commencing after a moratorium of 3 months from the date of first disbursement of the loan limit Margin Nil Extent and Operation of the charge The charge operates as a first charge on immovable and movable properties of company to secure due repayment and discharge by company to SIDBI of its term loan of Rs.7.500 Millions together with all dues payable in terms of Letter of Intent dated March 26, 2012/Agreement for term loan limit cum hypothecation dated March 27, 2012 and declaration and Undertaking on March 27, 2012 and all dues payable in terms of sanction, as may be amended / modified from time to time.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	[i] First charge by way of hypothecation on all the movables of the borrower including plant and machinery, equipment, machinery spares, tools and accessories, office equipment, computers, furniture and fixtures, miscellaneous fixed assets, acquired / to be acquired under the Loan. [ii] Extension of first charge by way of hypothecation of all the movables including plant and machinery, equipment, machinery spares, tools and accessories, office equipment, computers, furniture and fixtures, miscellaneous fixed assets etc. acquired by the company under its earlier projects assisted by SIDBI and hypothecated to SIDBI as security for its financial assistance by way of Term loan I of Rs.17.500 Millions, Term Loan II of Rs.15.000 Millions under Direct Credit Scheme (Project Finance) and Term loan Limit -I of Rs.5.000 Millions, Term Loan Limit -II of Rs.5.000 Millions and TL Limit -III Term loan I of Rs.17.500 Millions, Term Loan II of Rs.15.000 Millions under Direct Credit Scheme (Project Finance) and Term loan Limit -I of Rs.5.000 Millions, Term Loan Limit -II of Rs.5.000 Millions and TL Limit –II [iii] a. Extension of first charge by way of mortgage of all the immovable properties of the borrower situated at Khasra Nos.442/12-11, 440/1/0-14, 448/1/1-13, 444/1/5-0 in Mouza Belikhol, Pargana Tehsil Nalagarh, District Solan, Himachal Pradesh admeasuring 19 bighas and 18 biswas.

Fixed Assets

· Land – Freehold

· Factory Building

· Plant and Machinery

· Electric Installations

· Tools and Instruments

· Furniture and Fixtures

· Computers

· Office Equipments

· Fire Fighting Equipments

· Motor Cycle/Scooters

· Motor Cars

· Mould and Dies

· Intercom

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.56.41
UK Pound	1	Rs.88.44
Euro	1	Rs.71.52

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	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	YES
--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.