MIRA INFORM REPORT

Report Date :

24.05.2012

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) :	31.03.2011
Date of Incorporation :	23.05.1996
Com. Reg. No.:	11-99783
Capital Investment / Paid-up Capital :	Rs.5.100 Millions
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.
No. of Employees :	150 Approximately

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 206656
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.

INFORMATION PARTED BY

Name :	Ms. Shilpa
Designation :	Accounts Department
Contact:	91-22-41515151
Date :	23.05.2012

LOCATIONS

Registered Office /Factory :	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 pcsnilesh@gmail.com shilp@nilsan-nishotech.com
Web Site:	www.nilsan-nishotech.com
Location :	Owned
Branches :	Plot No. 15, Ground Floor, Priya Colony, Kakaguda, Secunderabad 500015, Hyderabad, India

DIRECTORS

AS ON 30.09.2011

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
Date of Cessation:	27.08.2010
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

KEY EXECUTIVES

Name :	Ms. Shilpa
Designation :	Accounts Department

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

LIST OF ALLOTTES

AS ON 02.04.2011

Names of Shareholders	No. of Shares
Nilesh Badani	2268900
Priti Badani	237600
Chimanlal Badani	32400
Chandrabala Badani	32400
Nilesh Badani – HUF	214200
Karishma N Badani	900
Sanjay Badani	1324980
Kashmira S Badani	342000
Sanjay Badani – HUF	136620
Total	4590000

NOTE:

As per Registrar of Companies the last available shareholding details are as on 30.09.2008. The latest list of allottes as on 02.04.2011. No other information is available on Shareholding Pattern.

AS ON 30.09.2011

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.
Imports :
Products :	Raw Material
Countries :	USA
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers :

· End Users

· Cipla

· Baxter

· Biocon

· DSM

· Emcure

· FDC Limited

· LPCA

· Merck

· Panacea Biotec

· Promed

· Piramal

· Ranbaxy

· Sandoz

· Torreny

· Hindustan Unilever Limited

· ITC Limited

· Honda

· New Holland

No. of Employees :

150 Approximately

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	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Banks O/D A/c. (Secured Against Working Capital)	10.002	5.000
From Banks OCC A/c. (Secured Against Hypothecation of Book Debts and Personal Guarantee of Directors)	23.067	15.747
From Banks Term Loan (Secured Against Hypothecation of Machineries, Personal Guarantee of Directors)	2.656	0.398
From Banks Term Loan (Secured Against Mortgage of Factory Building and Personal Guarantee of Directors)	0.078	0.294
From Banks Packing Credit A/c. (Secured Against Export Orders)	0.550	2.077
Total	36.353	23.516

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Directors	13.724	9.804
From Members	14.505	10.774
From Inter Company	18.058	14.592
Total	46.287	35.170

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
Associates/Subsidiaries :	--

CAPITAL STRUCTURE

AS ON 31.03.2011

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		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		5.100	5.100	5.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		46.564	40.699	37.696
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		51.664	45.799	42.796
LOAN FUNDS
1] Secured Loans		36.353	23.516	25.707
2] Unsecured Loans		46.287	35.170	31.265
TOTAL BORROWING		82.640	58.686	56.972
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		134.304	104.485	99.768
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		42.118	44.623	45.537
Capital work-in-progress		0.000	0.000	3.801
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	84.006	45.353	34.814
	Sundry Debtors	87.155	70.520	68.965
	Cash & Bank Balances	10.246	7.972	10.540
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	31.985	21.775	24.509
Total Current Assets		213.392	145.620	138.828
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	106.915	73.469	71.546
	Other Current Liabilities	1.953	2.618	1.429
	Provisions	12.338	9.671	15.423
Total Current Liabilities		121.206	85.758	88.398
Net Current Assets		92.186	59.862	50.430
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		134.304	104.485	99.768

PROFIT & LOSS ACCOUNT

Particulars	31.03.2012
Sales Turnover (Approximately)	300.000

The above information has been parted by Ms. Shilpa

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	270.502	201.505	251.715
		Other Income	17.292	13.388	11.503
		TOTAL (A)	287.794	214.893	263.218
Less	EXPENSES
		Cost of Goods Sold	176.592	120.475	158.390
		Manufacturing and Other Expenses	11.203	11.682	16.070
		Selling and Administrative Expenses	77.091	64.012	67.467
		TOTAL (B)	264.886	196.169	241.927
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		22.908	18.724	12.291
Less	FINANCIAL EXPENSES (D)		6.797	6.256	5.889
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		16.111	12.468	15.402
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.528	8.285	5.191
	PROFIT BEFORE TAX (E-F) (G)		8.583	4.183	10.211
Less	TAX (H)		2.668	1.183	3.560
	PROFIT AFTER TAX (G-H) (I)		5.915	3.000	6.651
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.999	1.996	4.558
	Excess (Short) Provision of tax written back/off		(0.050)	0.003	0.086
Less	APPROPRIATIONS
		Transfer to General Reserve	6.000	3.000	6.651
	BALANCE CARRIED TO THE B/S		1.864	1.999	1.996
	Earnings Per Share (Rs.)		11.60	5.88	13.04

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.05	1.40	2.53
Net Profit Margin (PBT/Sales)	(%)	3.17	2.08	4.06
Return on Total Assets (PBT/Total Assets}	(%)	3.35	2.20	5.54
Return on Investment (ROI) (PBT/Networth)		0.16	0.09	0.24
Debt Equity Ratio (Total Liability/Networth)		3.94	3.15	3.40
Current Ratio (Current Asset/Current Liability)		1.76	1.70	1.57

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
For Goods	63.530	46.461	45.025
For Expenses	18.707	18.072	18.775
For Advance	24.678	8.936	7.746
Total	106.915	73.469	71.546

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	NILSAN NISHOTECH SYSTEM PRIVATE LIMITED (w.e.f. 11.11.2010)
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	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Others
Particular of charge holder	Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227,D, Nariman Point, Mumbai- 400 021, Maharashtra, India Email: john.fernandes@kotak.com
Nature of instrument creating charge	Supplementry Deed of Hypothecation.
Date of instrument Creating the charge	22.10.2011
Amount secured by the charge	Rs. 102.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As may be specified by the Bank from time to time. Terms of repayment As may be specified by the Bank from time to time. Margin As may be specified by the Bank from time to time. Extent and operation of the charge First and exclusive charge by way of Hypothecation of Current assets and Movable fixed assets present and future of the Borrower, in favour of Kotak Mahindra bank as security for repayment of financial facilities granted by the Bank to the Borrower.
Short particulars of the property charged (Including location of the property)	The whole of Borrower's Current Assets and Movable Fixed Assets, both present and future.
Particulars of the present modification	Bank had granted facilities of Rs.71.000 millions to the Borrower which was secured by way of Hypothecation on Current assets and Moveable Fixed Assets of the company on 09/10/2009. Now bank has granted additional facility of Rs.31.500 millions to the company and the said charge is modified and extended to the increased total facilities of Rs.102.500 millions.

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	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	Yes
8) No. of employees	Yes
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	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
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

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.55.93
UK Pound	1	Rs.88.15
Euro	1	Rs.70.88

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	PRL

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.