MIRA INFORM REPORT

Report Date :

09.01.2013

IDENTIFICATION DETAILS

Name :	KALYANI HAYES LEMMERZ LIMITED (w.e.f. 05.11.2008)
Formerly Known As :	KALYANI LEMMERZ LIMITED
Registered Office :	Gat No. 635, Kuruli Village, Chakan, Taluka Khed, District Pune – 410501, Maharashtra
Country :	India
Financials (as on) :	31.01.2011
Date of Incorporation :	18.01.1996
Com. Reg. No.:	11-096395
Capital Investment / Paid-up Capital :	Rs. 360.000 Millions
CIN No.: [Company Identification No.]	U29303PN1996PLC096395
TAN No.: [Tax Deduction & Collection Account No.]	PNEK08922E
PAN No.: [Permanent Account No.]	AAACK7841A
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Wheel Rims for Commercial Vehicles.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 4450000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established company having good track record. The latest financial are not made available. However from the previous year’s record, the company seems to have good performance capacity. The financial position of the company appears to be good. Trade relations are reported to be trustworthy. Business is active. Payments are reported to be regular 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.

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	ICRA
Rating	Fund based limit : A-
Rating Explanation	Adequate degree of safety and low credit risk.
Date	June 2012

Rating Agency Name	ICRA
Rating	Non-fund based limit : A1
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	June 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 :	Gat No. 635, Kuruli Village, Chakan, Taluka Khed, District Pune – 410501, Maharashtra, India
Tel. No.:	91-2135-305100
Fax No.:	91-2135-305101
E-Mail :	pkodlikeri@hayes-lemmerz.com swagh@hayes-lemmerz.com sshikhare@hayes-lemmerz.com dshah@hayes-lemmerz.com sdahale@hayes-lemmerz.com
Website :	http://www.kalyanigroup.com

DIRECTORS

AS ON 31.07.2012

Name :

Mr. Prakash Vishweshwar Kodlikeri

Designation :

Managing director

Address :

A 18, Abhimanshree Housing Society, Pashan Road, Pune – 411018, Maharashtra, India

Date of Birth/Age :

20.06.1948

Date of Appointment :

01.09.2008

DIN No.:

01373420

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	Company/ LLP Status	Defaulting status
1	U29303PN1996PLC096395	KALYANI HAYES LEMMERZ LIMITED	Managing director	01/09/2008	28/08/1998	Active	NO

Name :

Mr. Babasaheb Neelkanth Kalyani

Designation :

Director

Address :

“Amit”, Survey No. 221, A,B,C,D, Kalyani Nagar, Pune – 411014, Maharashtra, India

Date of Birth/Age :

05.01.1949

Date of Appointment :

18.01.1996

DIN No.:

00089380

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	L27104MH1973PLC016350	KALYANI STEELS LIMITED	Director	15/02/1984	15/02/1984	-	Active	NO
2	L15421PN1939PLC006738	THE UGAR SUGAR WORKS LIMITED	Director	31/01/1986	31/01/1986	19/03/2010	Active	NO
3	L24200MH1988PTC048028	HIKAL LIMITED	Director	05/02/1992	05/02/1992	-	Active	NO
4	L25209PN1961PLC012046	BHARAT FORGE LIMITED	Managing director	30/03/2008	30/03/1993	-	Active	NO
5	U29303PN1996PLC096395	KALYANI HAYES LEMMERZ LIMITED	Director	18/01/1996	18/01/1996	-	Active	NO
6	U91110PN1965NPL018870	ASSOCIATION OF INDIAN FORGING INDUSTRY	Director	29/12/1997	29/12/1997	-	Active	NO
7	L51909KA1981PLC004198	AUTOMOTIVE AXLES LIMITED	Director	05/03/1998	05/03/1998	-	Active	NO
8	U85110KA1996PLC019619	NANDI INFRASTRUCTURE CORRIDOR ENTERPRISE LIMITED	Director	19/02/1999	19/02/1999	-	Active	NO
9	U29221KA1998PLC023383	MERITOR HVS (INDIA) LIMITED	Director	25/03/1999	25/03/1999	-	Active	NO
10	U27106PN1998PTC012742	CARPENTER KALYANI SPECIAL ALLOYS PRIVATE LIMITED	Director	02/08/1999	02/08/1999	24/12/2009	Active	NO
11	U27105PN1998PLC012724	KALYANI CARPENTER SPECIAL STEELS LIMITED	Whole-time director	02/08/2009	02/08/1999	-	Active	NO
12	L40108PN2000PLC015323	BF UTILITIES LIMITD	Director	15/09/2000	15/09/2000	-	Active	NO
13	U72900MH2000PTC140702	EPICENTER TECHNOLOGIES PRIVATE LIMITED	Director	06/10/2000	06/10/2000	-	Active	NO
14	U74999PN2003PLC018350	TRUE VALUE HOLDINGS LIMITED	Director	12/09/2003	12/09/2003	09/07/2010	Active	NO
15	U99999MH1956NPL009708	THE INDO GERMAN CHAMBER OF COMMERCE	Director	28/09/2005	28/09/2005	-	Active	NO
16	U85110KA2000PLC026939	NANDI ECONOMIC CORRIDOR ENTERPRISES LIMITED.	Director	30/09/2006	20/01/2006	-	Active	NO
17	U65991MH2002GOI137868	UTI TRUSTEE COMPANY PRIVATE LIMITED	Director	26/09/2006	27/03/2006	23/08/2011	Active	NO
18	U31909PN2006PLC129138	BF SYSTEMS LIMITED	Director	29/09/2006	29/09/2006	-	Strike off	NO
19	U45203PN2008PTC131242	KHED ECONOMIC INFRASTRUCTURE PRIVATE LIMITED	Director	04/01/2008	04/01/2008	-	Active	NO
20	U70102PN2008PLC131478	KHED DEVELOPERS LIMITED	Director	21/02/2008	21/02/2008	24/12/2009	Active	NO
21	U40102PN2007PTC130881	KENERSYS INDIA PRIVATE LIMITED	Nominee director	13/05/2008	13/05/2008	30/03/2009	Active	NO
22	U40106DL2008PLC179793	BF-NTPC ENERGY SYSTEMS LIMITED	Nominee director	19/06/2008	19/06/2008	-	Active	NO
23	L65993PN2009PLC134021	BF INVESTMENT LIMITED	Director	22/11/2010	26/05/2009	-	Active	NO
24	U29128DL2010PLC197806	KALYANI ALSTOM POWER LIMITED	Director	06/07/2011	08/01/2010	-	Active	NO
25	U29111DL2010FLC197807	ALSTOM BHARAT FORGE POWER LIMITED	Director	08/01/2010	08/01/2010	-	Active	NO
26	U45203PN2010PLC136755	BF INFRASTRUCTURE LIMITED	Director	02/08/2011	05/07/2010	01/06/2012	Active	NO
27	U35923PN2010PLC137191	IMPACT AUTOMOTIVE SOLUTIONS LIMITED	Director	25/08/2010	25/08/2010	-	Active	NO
28	U85100PN2011NPL141427	INSTITUTE FOR PROSTATE CANCER	Director	22/11/2011	22/11/2011	-	Active	NO

Name :

Achim Weber

Designation :

Director

Address :

Brunnenstrasse 41, 53604, Bad Honnef, Germany

Date of Birth/Age :

03.03.1960

Date of Appointment :

28.07.2006

DIN No.:

01483953

Name :

Fred Bentley

Designation :

Director

Address :

19059, Bellavista North Ville, Michigan, USA – 48167

Date of Birth/Age :

28.06.1965

Date of Appointment :

11.07.2005

DIN No.:

01920156

Name :

Petrus Wilhelmus Klinkers

Designation :

Director

Address :

Aylvalaan 4, 6212, Maastrcht

Date of Birth/Age :

16.08.1970

Date of Appointment :

31.07.2010

DIN No.:

02857643

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	Company/ LLP Status	Defaulting status
1	U29303PN1996PLC096395	KALYANI HAYES LEMMERZ LIMITED	Director	31/07/2010	11/11/2009	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.07.2012

Names of Equity Shareholders	No. of Equity Shares
Kalyani Babasaheb N.	1
Kalyani Sunita B.	1
B. F. Investment Limited, India	2399995
A. B. Kalyani	1
Deeksha A. Kalyani	1
S. B. Kanade	1
Hayes Lemmerz Konigswinter GmbH, Germany	13600000
Total	16000000

Names of Preference Shareholders	No. of Preference Shares
Hayes Lemmerz Konigswinter GmbH, Germany	20000000
Total	20000000

AS ON 31.07.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	85.00
Bodies corporate	15.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Wheel Rims for Commercial Vehicles.

Products :

ITC Code	Product Descriptions
870870	Road Wheels and parts and accessories thereof

PRODUCTION STATUS (AS ON 31.01.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Truck		1000000	1000000	--
Car
Rim, Disc, Assembly		2000000	2000000	--
Paint line		4000000	4000000	--
Wheel Rim		--	--	793497

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, Industrial Finance Branch, 2nd Floor, Tara Chambers, Near Mariaai Police Chowki, Old Pune Mumbai Highway, Wakdewadi, Pune – 411003, Maharashtra, India

Facilities :

Secured Loans	31.01.2011	31.01.2010
	(Rs. In Millions)
State Bank of India (SBI) Packing credit finance.	390.235	376.920
Lease obligations in relations to vehicles acquired from First leasing company of India Limited on finance lease	7.278	1.778
Total	397.513	378.698
Unsecured Loans	31.01.2011	31.01.2010
	(Rs. In Millions)
Sales Tax Deferral liability (Repayable within one year)	403.845	403.845
Total	403.845	403.845

Banking Relations :	--
Auditors :
Name :	BSR and Associates Chartered Accountants
Address :	703, 7th Floor, Godrej Castlemine, Bund Garden Road, Pune – 411001, Maharashtra, India
Tel. No.:	91-20-30585754/ 30585765
Fax No.:	91-20-30595775
Income-tax PAN of auditor or auditor's firm :	AADFB6889R
Parent Company :	Hayes Lemmerz Konigswinter GmbH, Germany
Intermediate Holding Company :	Hayes Lemmerz Holdings GmbH, Germany
Ultimate Parent Company :	Hayes Lemmerz International Inc., USA
Fellow Subsidiary Company :	Ø Hayes Lemmerz Jantas Ø Hayes Lemmerz Autokola

CAPITAL STRUCTURE

AS ON 31.01.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
25,000,000	Equity Shares	Rs. 10/- each	Rs. 250.000 Millions
30,000,000	Preference Shares	Rs. 10/- each	Rs. 300.000 Millions
	Total		Rs. 550.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16,000,000	Equity Shares	Rs. 10/- each	Rs. 160.000 Millions
20,000,000	Preference Shares	Rs. 10/- each	Rs. 200.000 Millions
	Total		Rs. 360.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.01.2011	31.01.2010	31.01.2009
SHAREHOLDERS FUNDS
1] Share Capital		360.000	360.000	360.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		753.374	744.832	672.238
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1113.374	1104.832	1032.238
LOAN FUNDS
1] Secured Loans		397.513	378.698	366.500
2] Unsecured Loans		403.845	403.845	445.319
TOTAL BORROWING		801.358	782.543	811.819
DEFERRED TAX LIABILITIES		120.974	98.612	75.102
TOTAL		2035.706	1985.987	1919.159
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1399.444	1360.095	764.554
Capital work-in-progress		53.628	39.499	675.435
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	329.229	272.374	213.064
	Sundry Debtors	433.956	341.585	281.160
	Cash & Bank Balances	40.860	41.591	91.758
	Other Current Assets	6.640	4.827	0.000
	Loans & Advances	156.459	162.672	185.971
Total Current Assets		967.144	823.049	771.953
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	314.181	184.191	198.869
	Other Current Liabilities	40.741	20.781	54.687
	Provisions	29.588	31.684	39.227
Total Current Liabilities		384.510	236.656	292.783
Net Current Assets		582.634	586.393	479.170
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2035.706	1985.987	1919.159

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.01.2011	31.01.2010	31.01.2009
	SALES
		Income	2810.147	2078.666	2265.584
		Other Income	378.637	270.215	392.197
		TOTAL (A)	3188.784	2348.881	2657.781
Less	EXPENSES
		Cost of Goods Sold	1934.960	1369.891	1496.662
		Personnel Expenses	160.355	117.295	145.485
		Manufacturing and Other Expenses	825.207	593.685	665.789
		TOTAL (B)	2920.522	2080.871	2307.936
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		268.262	268.010	349.845
Less	FINANCIAL EXPENSES (D)		47.122	34.641	42.914
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		221.140	233.369	306.931
Less/ Add	DEPRECIATION/ AMORTISATION (F)		148.447	137.265	87.992
	PROFIT BEFORE TAX (E-F) (G)		72.693	96.104	218.939
Less	TAX (H)		64.151	23.510	75.067
	PROFIT AFTER TAX (G-H) (I)		8.542	72.594	143.872
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		507.769	435.175	291.303
	BALANCE CARRIED TO THE B/S		516.311	507.769	435.175
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	688.236	475.365	1004.582
	IMPORTS
		Raw Materials	19.582	7.197	23.833
		Stores & Spares	7.274	7.680	7.325
		Capital Goods	35.032	19.163	308.430
	TOTAL IMPORTS		61.888	34.040	339.588
	Earnings Per Share (Rs.)		(0.05)	3.95	8.41

KEY RATIOS

PARTICULARS		31.01.2011	31.01.2010	31.01.2009
PAT / Total Income	(%)	0.27	3.09	5.41
Net Profit Margin (PBT/Sales)	(%)	2.59	4.62	9.66
Return on Total Assets (PBT/Total Assets}	(%)	3.07	4.40	14.25
Return on Investment (ROI) (PBT/Networth)		0.07	0.09	0.21
Debt Equity Ratio (Total Liability/Networth)		1.07	0.92	1.07
Current Ratio (Current Asset/Current Liability)		2.52	3.48	2.64

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	No
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	Yes

BACKGROUND:

Subject was incorporated on 18 January 1996 and vas jointly promoted by the Kalyani Group and Lernnierz Werke GmbH (Part of the Hayes Group) with 75% and 25% equity participation respectively. The Company acquired the ‘Wheel Rim’ division of Bharat Forge Limited and commenced its commercial operations on 4 June 1996. The principal business of the Company is to manufacture wheel rims for commercial vehicles. The manufacturing facility of the Company is situated in Pune India.

In August 1998, the Hayes Group increased its holding in the Company to 85°/o by acquiring additional 60% of the equity held by the Kalyani Group.

The Company is now a subsidiary of Hayes Lemmerz Konigswinter GmbH (‘the Holding Company’), a limited liability Company incorporated in Konigswinter, Germany, which in turn is a subsidiary of Hayes Lernmerz Holdings GmbH (‘the Parent Company’), a limited liability Company incorporated in Konigswinter, Germany [together referred to as the Hayes Group]. The Ultimate Parent Company (‘Ultimate Parent’) is Hayes Lemmerz International Inc., a limited liability Company incorporated in Michigan. USA.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U29303PN1996PLC096395
Name of the company	KALYANI HAYES LEMMERZ LIMITED
Address of the registered office or of the principal place of business in India of the company	Gat No. 635, Kuruli Village, Chakan, Taluka Khed, District Pune – 410501, Maharashtra, India Email: sdahale@hayes-lemmerz.com
This form is for	Modification of charge
Charge identification number of the modified	90090458
Type of charge	Book debts Movable property (not being pledge) Others [Stock in all its elements.]
Particular of charge holder	State Bank of India, Industrial Finance Branch, 2nd Floor, Tara Chambers, Near Mariaai Police Chowki, Old Pune Mumbai Highway, Wakdewadi, Pune – 411003, Maharashtra, India Email: milind.bankapure@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental Agreement of Hypothecation of Goods and Assets for increase in the Overall Limit (Form C.2-A)and Memorandum for recording extension of Mortgage by Deposit of Title Deeds covering enhanced limits and /or creation of EM for existing limits and enhanced limits and additional facilities both the documents executed between the Bank and the Borrower Company to cover the enhanced limits.
Date of instrument Creating the charge	09.06.2012
Amount secured by the charge	Rs. 2000.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest DCC:2.25% above Base Rate(currently 12.25%p.a.) with monthly rests. For LC/EPC/PCFC and EBD/EBR as per RBI's Directives and Bank's Policy time to time. Penal Interest on default as per RBI's Directives Terms of Repayment DCC: On Demand. Margin RM:25% Stock in Process:40% Finished Goods:35% Book Debts(Covering Period 90 days)25% EPC:10% For BG /LC as per Bank's normal practice. Extent and Operation of the charge SBI IFB Pune will have first and exclusive charge against all the present and future current assets inclusive of book debts and stock. The Company has extended the additional Security by way of 1st EM Charge on the entire fixed assets, which it has owned, under lease agreement with M/s. Bharat Forge Limited, for which no objection has been obtained to provide this property as security towards the credit facilities extended by the Bank to the Borrower Company. The Charge will be in continuous mode. Others The Company, by virtue of the Board Resolution dated 07.03.2012,has given assent to all the Terms and Conditions, Covenants, as provided in the Bank's Sanction Letter No.IFB/CREDIT/RMI/381Dt 02/03/12 and have executed the related loan document(s)/Agreement(s) through the Director(s), who have received and signed the documents in physical form and have authorized one of the Directors to file eform-8 for the modifications in the existing limits and in the nature and scope of the charge on agreed terms.
Short particulars of the property charged	All the present and future current assets inclusive of book debts and stock and the thereof maintained at the Registered and Works of the Company as denoted by the Company to the Bank. Schedule A:All that piece and parcel of leasehold rights in the land adm 3 Hect.40 Aar out of Gat No.635/3 at Village Kuruli Tal Khed District Pune together with ownership rights in factory building shed constructed and to be constructed thereon and fixed assets plant and machineries there in and situated within the registration District of Pune Sub District Taluka Khed Sub Registrar Rajgurunagar Schedule B:All that piece and parcel of leasehold rights in the land adm 3 Hect.34 Aar out of Gat No.635/1 at Village Kuruli Tal Khed District Pune together with ownership rights in factory building Shed constructed and to be constructed thereon and fixed assets plant and machineries there in and situated within the registration District of Pune Sub District Taluka Khed Sub Registrar Rajgurunagar Schedule C:All that piece and parcel of leasehold rights in the land adm 3 Hect.45 Aar out of Gat No.635/2 at Village Kuruli Tal Khed District Pune together with ownership rights in factory building Shed constructed and to be constructed thereon and fixed assets plant and machineries there in and situated within the registration District of Pune Sub District Taluka Khed Sub Registrar Rajgurunagar All the above said properties as denoted and geographicated in the Memorandum of Title Deeds itself duly deposited by the Company in favour of Bank to secure the enhanced credit facilities.
Date of Modification	19.05.2011
Particulars of the present modification	By this present modification, the existing credit facilities (Inclusive of Fund Based and Non Fund Based) of Rs.1450.000 Millions has been raised to Rs.2000.000 Millions (Inclusive of Fund Based and Non Fund Based facilities). The Company has provided the additional security by way of EM of immovable properties inclusive of leasehold rights, in Banks favour to secure the enhanced limit.

CONTINGENT LIABILITIES:

Disputed excise duty and service tax demands not provided for as on 31.01.2011 Rs. 8.245 Millions.

Bills of customers discounted with banks at 31.01.2011 amounted to Rs. 292.847 Millions.

Arrears of cumulative preference dividend at 31.01.2011 aggregated to Rs. 129.076 Millions.

Bank guarantee issued by a commercial bank amounted to Rs. 9.063 Millions.

FIXED ASSETS:

Ø Land

Ø Factory and Other Building

Ø Plant and Machinery

Ø Factory Equipments

Ø Moulds and Dies

Ø Electrical Installations

Ø Software

Ø Office Equipments

Ø Data Processing Equipment

Ø Furniture and Fittings

Ø Leased Vehicles

Ø Vehicles

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. 55.33
UK Pound	1	Rs. 89.05
Euro	1	Rs. 72.57

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		53

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.