MIRA INFORM REPORT

Report Date :

04.09.2012

IDENTIFICATION DETAILS

Name :	MODERN INSULATORS LIMITED
Registered Office :	A-4, Vijay Path, Tilak Nagar, Jaipur – 302004, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.05.1982
Com. Reg. No.:	17-002460
Capital Investment / Paid-up Capital :	Rs.217.435 Millions
CIN No.: [Company Identification No.]	L31300RJ1982PLC002460
TAN No.: [Tax Deduction & Collection Account No.]	JDHM06250G/ JPRM00027G
PAN No.: [Permanent Account No.]	AABCM0860G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of High Voltage Alumina Porcelain Insulators.
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 6500000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. It was set up in technical collaboration with Siemens AG, Germany. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	A4 (Short Term Bank Facilities)
Rating Explanation	Minimal degree of safety and very high credit risk
Date	10.05.2012

Rating Agency Name	CARE
Rating	BB+ (Long Term Bank Facilities)
Rating Explanation	Moderate risk of default.
Date	10.05.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	A-4, Vijay Path, Tilak Nagar, Jaipur – 302004, Rajasthan, India
Tel. No.:	91-141-2623431
Fax No.:	91-141-2621382
E-Mail :	modernjaipur@sify.com
Website :	http://www.moderninsulators.com
Corporate Office :	68-69 Godavari, Poachkhanwala Road, Worli, Mumbai – 400030, Maharashtra, India
Tel. No.:	91-22-24973269/ 24934071
Fax No.:	91-22-24950962
E-Mail :	corporate@modern-group.com
Plant and Marketing Office:	Post Box No.23, Abu Road, Talheti – 307026, Rajasthan, India
Tel. No.:	91-2974-228044 to 47
Fax No.:	91-2974-228043
E-Mail :	milabu@vsnl.com milabu@moderninsulators.com

DIRECTORS

(AS ON 24.09.2011)

Name :	Mr. Sachin Ranka
Designation :	Chairman cum Managing Director
Address :	Siddharth, 9^th Floor, R G Thadani Marg, Worli, Mumbai – 400018, Maharashtra, India
Date of Birth/Age :	28.01.1963
Date of Appointment :	30.11.1992
DIN No.:	00335534
Name :	Mr. Hira Lal Sharma
Designation :	Whole-time Director
Address :	605-A, Mansarowar Building, Near Chincholi Crossing, Malad (West), Mumbai – 400064, Maharashtra, India
Date of Birth/Age :	03.01.1951
Date of Appointment :	23.06.1994
DIN No.:	00352410
Name :	Mr. Ram Ratan Maheshwari
Designation :	Whole-time Director
Address :	8-405, Ballerina, 3^rd Cross Lane, Lokhandwala Complex, Mumbai – 400053, Maharashtra, India
Date of Birth/Age :	15.05.1946
Date of Appointment :	08.02.2011
DIN No.:	00332293
Name :	Mr. Raj Kumar Ladia
Designation :	Whole-time Director
Address :	Modern Insulators Limited Officer Colony, Abu Road – 307206, Rajasthan, India
Date of Birth/Age :	26.01.1955
Date of Appointment :	24.03.2001
DIN No.:	00742245
Name :	Mr. Sardarsingh Gopalsingh Karnavat
Designation :	Director
Address :	103, Pleasant Palace, 16 Narayan Dabholkar Road, Mumbai – 400006, Maharashtra, India
Date of Birth/Age :	09.04.1929
Date of Appointment :	29.06.1985
DIN No.:	00381580
Name :	Mr. Satya Bhushan Lal Jain
Designation :	Director
Address :	32, Uniara Garden, Near Police Memorial, Jaipur – 302004, Rajasthan, India
Date of Birth/Age :	16.09.1937
Date of Appointment :	31.03.1998
DIN No.:	00002582
Name :	Mr. Ramanand Goyal
Designation :	Director
Address :	C-94, Lal Kothi Scheme, Jaipur – 302015, Rajasthan, India
Date of Birth/Age :	28.08.1955
Date of Appointment :	29.06.2000
DIN No.:	00364595

KEY EXECUTIVES

Name :	Mr. Anil Sharma
Designation :	Company Secretary
Address :	20, Balaji Vihar – 21, Murlipura Scheme, Jaipur, Rajasthan, India
Date of Birth/Age :	15.08.1986
Date of Appointment :	03.09.2011
PAN No.:	CILPS3381P

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

NOT AVAILABLE

(AS ON 30.06.2011)

Equity Shares Break – up

Category	Percentage
Nationalized or Others Banks	0.01
Mutual Funds	4.60
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas Corporate bodies or others]	2.77
Bodies corporate	55.83
Other top fifty shareholders	4.97
Others	31.82
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of High Voltage Alumina Porcelain Insulators.

Products :

Products Description	Item Code No.
Porcelain Post Insulators	854620
Yarn (FDY)	54024700
Porcelain Post Insulators 66 KV to 132 KV	854620.14
Porcelain Post Insulators above 132 KV	854620.15
Porcelain Solidcore Insulators (H.T.)	854620.31

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
High tension and other insulators and bushings	MT	Not Applicable	16500	25002
Yarn (FDY)	MT	Not Applicable	25000 MT **	22965

** Increased 12500 MT capacity w.e.f . 01.03.2010.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Central Bank of India

Anand Bhawan, S. C. Road, Jaipur – 302001, Rajasthan, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Non-convertible debentures secured	200.000	200.000
Debts bonds other instruments secured	85.000	45.000
Rupee term loans financial institutions secured	372.702	130.000
Working capital loans banks secured	376.375	376.693
Other debt secured	5.918	0.000
Total	1039.995	751.693
NOTE: 1. Term loans from financial institution are secured by (i) Exclusive first charge on all the immovable and movable fixed assets of the yarn division; (ii) First charge on all the assets of Motile Power Trade Private Limited and Gujarat Polyfils (India) Limited (Subsidiary Companies); (iii) Personal guarantee of one of directors; (iv) Corporate guarantee from Motile Power Trade Private Limited and Gujarat Polyfils (India) Limited and (v) Pledge of all shares of Motile Power Trade Private Limited and Gujarat polyfils (India) Limited. 2. Zero Coupon Secured Redeemable Debentures/advance subscription towards Zero Coupon Secured Redeemable Debentures are secured by way of second charge of all the immovable properties of yarn division; redemption to commence from 1st October, 2012 in quarterly installments till entire redemption is completed or before 30th September, 2016. 3. Borrowings for working capital are secured by hypothecation of stocks, book debts and first charge on fixed assets of Insulator Division and are personally guaranteed by some of the Directors. 4. Other loans are secured against hypothecation of the specific assets.

Banking Relations :	--
Auditors :
Name :	S. S. Kothari and Company Chartered Accountants
Address :	B-12, Bhagirath Colony, Chomu House, Jaipur, Rajasthan, India
PAN No.:	AAMFS2589L
Subsidiaries :	· Motile Power Trade Private Limited (CIN No.: U51109MH2009PTC191078) · Gujarat Polyfils (India) Limited (CIN No.: U17214RJ2009PLC028721)
Other Related Parties :	· Modern Denim Limited · Modern Terry Towels Limited · Shubham Corporate Advisory Services Private Limited

CAPITAL STRUCTURE

(AS ON 24.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions
500000	Preference Shares	Rs.100/- each	Rs.50.000 Millions
	Total		Rs.300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21743500	Equity Shares	Rs.10/- each	Rs.217.435 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011 (18 Months)	30.09.2009 (18 Months)	31.03.2008 (12 Months)
SHAREHOLDERS FUNDS
1] Share Capital		217.435	217.435	217.435
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1395.823	1055.616	602.085
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1613.258	1273.051	819.520
LOAN FUNDS
1] Secured Loans		1039.995	751.693	319.197
2] Unsecured Loans		0.000	0.000	30.000
TOTAL BORROWING		1039.995	751.693	349.197
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
Other Liabilities		138.228	118.860	84.708
TOTAL		2791.481	2143.604	1253.425
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1373.054	1009.130	565.481
Capital work-in-progress		40.529	60.807	259.800
INVESTMENT		12.205	11.711	0.001
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	538.301	388.169	279.699
	Sundry Debtors	459.347	546.073	418.132
	Cash & Bank Balances	70.924	263.895	39.058
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	832.924	308.824	95.343
Total Current Assets		1901.496	1506.961	832.232
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	457.846	388.815	302.516
	Other Current Liabilities	13.333	8.450	8.231
	Provisions	64.624	47.740	93.342
Total Current Liabilities		535.803	445.005	404.089
Net Current Assets		1365.693	1061.956	428.143
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2791.481	2143.604	1253.425

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011 (18 Months)	30.09.2009 (18 Months)	31.03.2008 (12 Months)
	SALES
		Income	5397.393	4210.699	2190.553
		Other Income	14.829	14.171	11.377
		TOTAL (A)	5412.222	4224.870	2201.930
Less	EXPENSES
		Consumption Materials Change Inventories	2413.632	1482.757
		Manufacturing Service Cost	1482.926	1385.667
		Employee Related Expenses	323.284	236.790
		Administrative, Selling and Other Expenses	556.078	523.950
		TOTAL (B)	4775.920	3629.164	1891.571
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		636.302	595.706	(Including Interest)
Less	FINANCIAL EXPENSES (D)		166.774	103.224
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		469.528	492.482	310.359
Less/ Add	DEPRECIATION/ AMORTISATION (F)		109.154	87.039	39.427
	PROFIT BEFORE TAX (E-F) (G)		360.374	405.443	270.932
Less	TAX (H)		20.167	(48.088)	96.747
	PROFIT AFTER TAX (G-H) (I)		340.207	453.531	174.185
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1053.116	599.585	425.400
	BALANCE CARRIED TO THE B/S		1393.323	1053.116	599.585
	EARNINGS IN FOREIGN CURRENCY		1148.773	1374.851	956.391
	IMPORTS
		Raw Materials	205.914	117.160	36.310
		Stores & Spares	20.288	19.055	9.755
		Capital Goods	100.028	244.393	0.000
	TOTAL IMPORTS		326.230	380.608	46.065
	Earnings Per Share (Rs.)		15.68	17.03	7.92

QUARTERLY RESULTS

PARTICULARS	30.06.2011	30.09.2011	31.12.2011
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	868.220	944.420	1027.340
Total Expenditure	790.020	837.850	919.840
PBIDT (Excl OI)	78.200	106.570	107.500
Other Income	1.190	1.820	2.520
Operating Profit	79.390	108.390	110.020
Interest	30.390	30.580	29.630
Exceptional Items	0.000	0.000	0.000
PBDT	49.000	77.810	80.390
Depreciation	20.410	19.010	19.090
Profit Before Tax	28.590	58.810	61.290
Tax	0.000	0.000	0.000
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	28.590	58.810	61.290
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	28.590	58.810	61.290

KEY RATIOS

PARTICULARS		31.03.2011 (18 Months)	30.09.2009 (18 Months)	31.03.2008 (12 Months)
PAT / Total Income	(%)	6.29	10.73	7.91
Net Profit Margin (PBT/Sales)	(%)	6.68	9.63	12.37
Return on Total Assets (PBT/Total Assets}	(%)	11.01	16.11	19.38
Return on Investment (ROI) (PBT/Networth)		0.22	0.32	0.33
Debt Equity Ratio (Total Liability/Networth)		0.97	0.94	0.92
Current Ratio (Current Asset/Current Liability)		3.55	3.39	2.06

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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 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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATIONS:

During the period of 18 months the Insulator division has made a turnover of Rs.3540.000 Millions and Yarn division made a turnover of Rs.2260.000 Millions. The operations of the Company has resulted in a net profit of Rs.341.000 Millions including net profit of Rs.72.600 Millions of the yarn division.

However, to consolidate the long term resources for enhanced working capital and further balancing the plant and machineries of the Company to maintain the growth in productivity, profitability and turnover, the Directors of your Company are constrained not to recommend any dividend for the period.

INSULATORS DIVISION

The company is a manufacturer and supplier of high voltage porcelain insulators that are essential components of the global electrical infrastructure. The Company's design and production technology in porcelain insulators make it the preferred supplier of OEMS like Siemens, ABB, AREVA etc. The company's orientation to excellence in technology, research and marketing has helped it in maintaining its place as one of the manufacturer of Insulators. Both in Domestic as well as export market, Company's products are rated high due to their excellent quality, reliability in performance and good services to the customers.

YARN DIVISION

As reported in the previous period report, the yarn division has been implemented in two phases. The Commercial production of the first phase having capacity of 12500 tons per annum has commenced in September, 2008 and commercial production of second phase of the project with capacity of another 12500 tons per annum has commenced in March, 2010. The period was volatile for the Polyester Industry due to weak domestic textile market, over supply of polyester yarns compared to the overall demands, unprecedented increase in oil prices to abnormal hike in the prices of raw materials.

EXPORTS

The Company is one of the major exporter of Insulators from India and the largest in high voltage segment. Company's exports (Insulators) stood at Rs.1140.000 Millions for the period as against Rs.1370.000 Millions in the previous period inspite of worldwide competitive market and deferment of delivery schedule by the overseas customers. The Company has been awarded Trading House Status by JDGFT. The decline in exports have also affected adversely the performance of the insulator division. The company is now focusing to save cost effectively with better process control so that products of the insulator division remain competitive in terms of quality and price in the international market. The company is also exploring new markets to reduce dependence on existing markets and the future growth in exports.

FUTURE PROSPECTS

The future of insulator industry looks promising due to major thrust on power sector reforms and speedier implementation of new power projects. The Government of India has given emphasis on upgrading transmission system in the country along with plans for construction of new power transmission grids. The Company carries sufficient orders in hand and is having long term ;understanding with multinationals for supply of insulators for their world-wide requirement. The company has been successful in getting repeat orders from US market with increased volume.

AMALGAMATION OF MODERN TERRY TOWELS LIMITED WITH THE COMPANY

Modern Terry Towels Limited had filed Draft Rehabilitation Scheme with Hob'ble BIFR for its amalgamation with the company by taking deemed date of amalgamation as 1.1.2008 and same is under active consideration for circulation and thereafter for sanction.

DEMERGER OF YARN DIVISION OF THE COMPANY

With a view to implement and develop the business plan of Insulator division of the company as a focused entity and to take the further opportunities in the Insulator business, it has been decided by the Board of Directors of the company to de-merge the Yarn division into a separate corporate entity by a Scheme of Arrangement under section 391 to 394 of the Companies Act,1956 with effect from 1st April, 2011. The demerger would result in benefit to the shareholders, creditors, employees and the general public. Requisite application before the Hon'ble High Court of Rajasthan at Jaipur has been filed for sanction of the Scheme of Arrangement.

CHANGE OF ACCOUNTING YEAR

It has been decided by the Board of Directors to change the Accounting Year to end on 31st March, 2011 instead of 30th September, 2010 and therefore the accounting year is for a period of 18 months from 1.10.2009 to 31.3.2011. Accordingly necessary approval from the Ministry of Corporate Affairs, Office of Registrar of Companies has also been obtained.

CONTINGENT LIABILITIES NOT PROVIDED FOR: (AS ON 31.03.2011)

· Guarantees given by bankers on behalf of the Company Rs.178.823 Millions (Previous period Rs.116.615 Millions).

· Corporate guarantees given by the Company Rs.0.318 Millions (Previous period Rs.75.318 Millions).

· Outstanding Letters of Credit Rs.14.210 Millions (Previous period Rs.15.222 Millions).

· Liability if any in respect of pending Sales Tax assessment for the year 2009-10 and onwards.

· Claims against the company, not acknowledged as debts Rs.3.981 Millions (Previous period Rs.3.546 Millions).

· Disputed Income Tax demand Rs.0.250 Millions (Previous period Rs.0.250 Millions) against which amount deposited under protest Rs.0.250 Millions (Previous period Rs.0.250 Millions).

· Disputed Land Tax demand Rs.1.244 Millions which has been deposited under protest (Previous period Rs.0.918 Millions).

· Disputed Service Tax demand Rs.0.525 Millions which has been deposited under protest (Previous period Rs.0.525 Millions).

· Disputed Sales Tax demand Rs.51.666 Millions (Previous period Rs.0.071 Millions) against which Rs.6.872 Millions has been deposited under protest (Previous period Rs.0.071 Millions).

· Disputed Excise duty demand Rs.5.131 Millions (Previous period Rs. Nil).

· Interest for the period Rs.7.887 Millions (upto the period Rs.13.378 Millions) not provided in respect of unpaid entry tax, payment of which has been stayed by Hon'ble High Court, Jodhpur.

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	80036567
Corporate identity number of the company	L31300RJ1982PLC002460
Name of the company	MODERN INSULATORS LIMITED
Address of the registered office or of the principal place of business in India of the company	A-4, Vijay Path, Tilak Nagar, Jaipur – 302004, Rajasthan, India modernjaipur@sify.com
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Central Bank of India Anand Bhawan, S. C. Road, Jaipur – 302001, Rajasthan, India agmjaip1065@centralbank.co.in
Nature of description of the instrument creating or modifying the charge	Agreement of Hypothecation of Tangible movable plant and machinery, stock, goods and book debts dated 04/05/2012.
Date of instrument Creating the charge	04/05/2012
Amount secured by the charge	Rs.787.500 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest As per Agreement of Hypothecation dated 04/05/2012. Terms of Repayment As per Agreement of Hypothecation dated 04/05/2012. Margin As per Agreement of Hypothecation dated 04/05/2012. Extent and Operation of the charge The first charge will operate in favour of Central Bank of India (CBI) for its working capital facilities to the extent of Rs. 627.500 Millions (FB Limit of Rs. 402.500 Millions and NFB Limit of Rs. 225.000 Millions) and ranking pari-passu with Punjab National Bank (PNB) for its working capital facilities to the extent of Rs. 160.000 Millions (FB Limit of Rs. 97.500 Millions and NFB Limit of Rs. 62.500 Millions).
Short particulars of the property charged	(a) All tangible movable property, plant fixed or otherwise, machinery, fittings, electric and other installations and all other articles fixed and lying on the premises situated at Abu Road, District Sirohi (Rajasthan) or in the go-downs of the Borrower or in the custody of any person (including those on lease or hire purchase) who are mercantile agents of the Borrower or in the course of transit including all movable assets which may hereinafter be brought, stored or be lying in or upon the said premises which include the machinery by first charge. (b) The whole of the Borrower's stocks, both present and future and including but without prejudice to the generality of the foregoing words, all stocks or raw materials, work in progress, semi-finished goods and finished goods such as Insulators whatsoever, wheresoever’s situated and/or in transit whether now belonging to or that may at any time during the continuance of this security belong to the Borrower or that may be held by any party anywhere to the order and disposition of the Borrower. (c) All the present and future book debts, outstanding, moneys receivable, claims, bills, contracts, engagements and securities which are now due and owing or which may at any time hereafter during continuance of this security become due and owing to the Borrower in the course of its business by any person, firm, company or body corporate or by the Government of India or any State Government or Indian Railways or any Government Department of Office or any Municipal or Local or Public or Semi-Government body or authority whatsoever including those relating to the assets leased out and / or given on hire purchase basis.
Date of latest modification prior to the present modification	11/12/2010
Particulars of the present modification	By this modification the existing overall limit with CBI nd PNB enhanced to Rs. 787.500 Millions detail as under:- FB Limit NFB Limit CBI Rs.402.500 Millions Rs.225.000 Millions PNB Rs.97.500 Millions Rs.62.500 Millions -------------------- -------------------- Total Rs.500.000 Millions Rs. 287.500 Millions

WEBSITE DETAILS:

PROFILE:

Subject is pioneer in High Voltage Porcelain Insulators in India. The Company is managed by a very dynamic and professional entrepreneur, Mr. Sachin Ranka and his dedicated team.

Subject was set up in 1985 in technical collaboration with Siemens AG, Germany, for manufacture of High Voltage Porcelain Insulators. Company, now is one of the largest exporters in the country and has been honoured with various Export Awards from Ministry of Commerce.

· Company manufactures Porcelain Insulators in the range of 33KV to 1200 KV. The main product categories are:

· Solidcore post insulators for Disconnectors and substation requirements.

· Hollow insulators for SF6 Circuit Breakers, Lightning arrestors and Instruments transformers.

· Longrod insulators for overhead Transmission lines.

· Railway insulators.

· Linepost insulators for Distributions.

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.55.45
UK Pound	1	Rs.87.98
Euro	1	Rs.69.70

INFORMATION DETAILS

Report Prepared by :

NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
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	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	YES
--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.