MIRA INFORM REPORT

Report Date :

09.04.2007

IDENTIFICATION DETAILS

Name :	LION PICTURE AND FRAMES (INDIA) LIMITED
Registered Office :	1 B K Paul Avenue, Kolkata – 700005, West Bengal, India
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	10.08.1998
Com. Reg. No.:	21-87700
CIN No.: [Company Identification No.]	L51909WB1998PLC087700
TAN No.: [Tax Deduction & Collection Account No.]	CALL00953B
Legal Form :	Closely Held Public Limited Liability Company
Line of Business :	Subject acts as Manufacturer of Frames, Trading of Mouldings, Machines for making Frames and Laminating Machines, Prints and Trading to entrepreneurs and the consumer of ‘ION’ Manufacturer , Dealer , Distributors , Importer

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 60000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track records. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	1 B K Paul Avenue, Kolkata – 700005, West Bengal, India
Tel. No.:	91-33-22716301 / 22695550
Mobile No.:
Fax No.:	91-33-22180586
E-Mail :	hitaishi@vsnl.com
Website :	www.lionidia.net
Area :	800 Sq. ft
Location :	Rented
Head Office :	200 Dakshindari Road, Bird Jute Mill Compound, Kolkata - 700 48
Tel. No.:	91-33-2521-8162, 2521-8236
Fax No.:	91-33-2521-7551
E-Mail :	lion@cal2.vsnl.net.in
E-Mail :	www.lionindia.net
Area :	2250 Sq. ft.
Location :	Rented
Branches 1 :	187 A Sai Sadan , Sant Nagar , East Of Kailash New Delhi . 110065. India
Tel. No.:	91-011-26213128 / 26430237/ 32924208
Fax No.:	91-011-26430238
E-Mail :	delhi@lionindia.com
Branches 2 :	Shed No . 14 &17 , Ashok Nut Bolts industries Compound , Behind Krishna Complex , 6 Udyog Nagar , S.V. Road , Goregaon (West ) Mumbai 400062.
Tel. No.:	91-022-56025157 / 28792816 / 32929901
Fax No.:	91-022-28773524.
E-Mail :	lionmumbai@vsnl.net.
Offices :	Offices of the Company NEW DELHI OFFICE 187A, Sant Nagar, Sai Sadan, East of Kailash, New Delhi - 110 065 Tel. No : 91-11-2643-0237, 2621-3128,3092 4028 Fax : 91-11-2643-0238 Email : lionpicture@bol.net.in MUMBAI OFFICE : Shed No. 14 & 17,Ashok Nut Bolts Industries Compound,behind Krishna Complex, 6, Udyog Nagar, S.V. Road, Goregaon (west), Mumbai-400 062, Tel. No. : 91-22-2879 2816,30929901, 5602 5157 Fax : 91-22-2877 3524 Email : lionmumbai@vsnl.net CHENNAI OFFICE M/s.Lakshmi Ethiraj Art Gallery & Photo Framing Centre. New 70, 1st Floor, 1st Main Road,CIT Nagar(Near Hyundai Show Room), T. Nagar, Chennai –600 035 Tel.No./Telefax : 91-24359223,24347061 Mobile No. : 91-93801 09960 BANGALORE OFFICE M/s.Laxmi Photo FrameNo. 62, New Timber Yard Layout Beside M/s.Namaste Export/ Deepak Glass& Plywood, Bangalore - 560 026 Mobile No : 91-93425 84987 / 30939074 Tel.No.. : 91-80-26757005 E-mail : laxskd@yahoo.co.in LION INDIA GALLERY-KOLKATA 4, Hungerford Street (facing Theatre Road), Kolkata - 700 017 Tel. No.: 91-33-22835758 LION INDIA GALLERY-HYDERABAD 6-3-349/39, Opposite Vengal Rao Park, Road No.1, Banjara Hills. Hyderabad - 500 034 Tel. No : 91-40-5525 9437

SOLE PROPRIETOR/PARTNERS/DIRECTORS

Name :	Mr Om Prakash Prahladka
Designation :	Director
Address :	1, B.K. Paul Avenue, Kolkata – 700 005, West Bengal
Date of Birth/Age :	11.01.1950
Qualification :	B.E.
Experience :	34 Yrs.
Date of Appointment :	10.08.1998
Name :	Mr Manish Saria Gouri
Designation :	Director
Address :	1, B.K. Paul Avenue, Kolkata – 700 005, West Bengal
Date of Birth/Age :	23.11.1972
Date of Appointment :	10.08.1998
Name :	Mr Rajendra Prahladka
Designation :	Director
Address :	1, B.K. Paul Avenue, Kolkata – 700 005, West Bengal
Date of Birth/Age :	02.04.1958
Qualification :	B.Com
Experience :	30
Date of Appointment :	22.05.2001
Name :	Mr Rajesh Lihala
Designation :	Director
Name :	MR. Nish Gourisaria
Designation :	Directors
Date of Birth/Age :	34 Yrs.
Qualification :	B. Com
Experience :	14 Yrs.
Date of Appointment :

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr Pradeep Jhunjhunwala	100
Ms Alka Jhunjhunwala	100
Ms Urmila Prahladka	100
Ms Manju Prahaladka	100
Mr Om Prakash Prahladka	85700
Mr Kanak Jhunjhunwala	100
Mr Manish Saria Gouri	100
Mr Chandra Prakash Prahladka	82000
Mr Rajendra Prahladka	82000
Mr Vijay Kumar Prahladka	82000
Category of Shareholders	Percentage of Holding
Bodies corporate	35.29
Directors or relatives of director	64.71
	100.00

BUSINESS DETAILS

Line of Business :	Subject acts as Manufacturer of Frames, Trading of Mouldings, Machines for making Frames and Laminating Machines, Prints and Trading to entrepreneurs and the consumer of ‘ION’ Manufacturer , Dealer , Distributors , Importer
Products :	Mouldings Exclusive moulding strips to give your picture the perfect look. Mount Boards / Pre Cut Mounts Wide range of mounting materials to give your picture the perfect settings. Machines Exhaustive range of imported state-of-art machinery covering all aspects of picture framing industry. Hardware Fittings The most durable & everlasing quality fittings to add beauty to your Photo frames. Laminations Hot press machine & wide range of textured lamination films are available for giving various effects on Art Prints / Photographs. Photo frame Accessories Complete range of accessories including Back Stands,Felt Bumper, Tapes, & framing books. Picture Hanging & display system Our exclusive range of accessories also includes Picture Hanging & Display system. Framed Pictures Give the endearing memories of your life put into a customised frame available in all kinds of shapes and sizes. Ready Made frames Preserve your precious memories in ready-made frames available in many designs & colour from traditional to fancy designs. Reproduction art Prints Browse through our wide collection of beautiful prints of paintings by well known European artists in a variety of themes.
Imports :
Countries :	The company imports from Denmark, France, Italy, UK and USA.
Terms :
Selling :	Cash or Credit : 30 days
Purchasing :	Cash, L/C, or Credit terms.

GENERAL INFORMATION

Suppliers :	Some of its major suppliers are as under: - l Chemould l Oxford Moulding
Customers :	The company’s major customers include Wholesalers and End Users. Some of its customers are as under: - l S. A. Enterprises l Taneja Mines l Varuna Art Framer, etc. l Types Of Customers : l Wholesalers l Retailers l End Users l OEM’s.
No. of Employees :	32
Bankers :	HDFC Bank Limited BA-3, Salt Lake, Sector I, Kolkata – 700 064, West Bengal Indian Bank Kolkata Main Branch, Sir RNM House, 3/1, R.N. Mukherjee Road, Kolkata -700 001, West Bengal. Indian Overseas Bank Salt Lake Br. Kolkata Credit Limit Rs. 5.000 Million
Facilities :	--

Banking Relations :	Satisfactory
Auditors :
Name :	R Lihala and Company Chartered Accountants
Address :	11, Crooked Lane, Kolkata – 700069, West Bengal, India
Tel. No.:	91-033-22435095
Parent Company:	Hitaishi Group of Company
Associates/Subsidiaries :	1. G.J.K. Shellex India Private Limited 2. Hitachi-KOREA Manufacturing Company 3. Hitaishi Creative Enterprises 4. Hitaishi Fine Kraft Industries Private Limited 5. Hitaishi Kreativ Kraft Udyog Limited 6. S.R. Projects (India) Private Limited, etc.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
750,000	Equity Shares	Rs 10/- each	Rs 7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
677,300	Equity Shares	Rs 10/- each	Rs 6.773 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		6.773
2] Share Application Money		0.000
3] Reserves & Surplus		7.722
4] (Accumulated Losses)		0.000
NETWORTH		14.495
LOAN FUNDS
1] Secured Loans		5.414
2] Unsecured Loans		2.072
TOTAL BORROWING		7.486
DEFERRED TAX LIABILITIES		0.023
TOTAL		22.004
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.428
Capital work-in-progress		0.000
INVESTMENT		1.047
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.831
	Sundry Debtors	9.197
	Cash & Bank Balances	2.488
	Other Current Assets	0.000
	Loans & Advances	2.797
Total Current Assets		26.313
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	8.529
	Provisions	0.261
Total Current Liabilities		8.790
Net Current Assets		17.523
MISCELLANEOUS EXPENSES		0.006
TOTAL		22.004

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006
Sales Turnover		43.658
Other Income		0.782
Total Income		44.440
Profit/(Loss) Before Tax		0.421
Provision for Taxation		0.242
Profit/(Loss) After Tax		(0.001)
Earnings in Foreign Currency :
Total Earnings		0.165
Imports :
	Raw Materials
	Stores & Spares
	Capital Goods	4.959
	Others
Total Imports		4.459
Expenditures :
	Cost of Goods Sold	32.456
	Manufacturing Expenses
	Administrative Expenses	11.738
	Interest	0.647
	Depreciation & Amortization	0.799
Total Expenditure		13.184

KEY RATIOS

PARTICULARS		31.03.2006
PAT / Total Income	(%)	(0.002)
Net Profit Margin (PBT/Sales)	(%)	0.96
Return on Total Assets (PBT/Total Assets}	(%)	2.40
Return on Investment (ROI) (PBT/Networth)		0.02
Debt Equity Ratio (Total Liability/Networth)		0.60
Current Ratio (Current Asset/Current Liability)		2.99

LOCAL AGENCY FURTHER INFORMATION

LIONINDIA was formed in 1998 under the leadership of Mr. O.P.Prahladka,Mr. Vic Faulkner &
Mr. Manish Gourisaria who work as a catalyst in the rapid growth of Photo & Picture Framing Industry in India.

Lion India is the largest primary source in India for all the equipments, machine, mouldings, hardwares, art prints and accessories necessary to produce not only photo frames but also framed pictures, mirror frames etc.

Operating from branches in Calcutta, New Delhi, Mumbai,Bangalore & Chennai, the company stocks all the major equipments and machines, wood and synthetic mouldings, mount board, hardware & accessories required by the industry.

The company also stocks wide selection of art prints and hand paintings.

LION INDIA has professional sales and service personnel available to address any of the clients technical & commercial issues. The company also provides in house or on site technical training to the customers.
LION INDIA has always worked on the philosophy of having everything available from stock and committed to ship out orders with in 48 hours of receipt. They offer cash and carry service.
The company has further plans to open more branches in India in due course. However, having global alliances with most European & American companies, they are in a position to offer distributor agencies to those people who are able to comply with LION INDIA philosophy.

LION INDIA is very keen and constantly making efforts to upgrade Indian framing industry as per the European Standards.

Board Members

MR. O.P. PRAHLADKA - Chairman of HITAISHI Group and LION INDIA has a passion and commitment to build the picture framing industry in India to international standards. He is also COA member and director on the Board of (EPCH) Export Promotion Council For Handicraft, New Delhi, and India Exposition Mart Ltd., New Delhi. He is also Senior Managing Committee member at (NCDPD) National Centre for Design & Product Design & Development, New Delhi. He is the Vice -Chairman of plywood & wood products panel of eastern region at Capexil since 1994 and was also nominated as vice-chirman of National Panel. Being a commerce graduate he has also acquired special managment training in quality analysis .

MR. MANISH GOURISARIA - Joint Managing Director of Lion picture & frames India Ltd., an enterprising young man, having vast experience in the domestic and international gift and framing business, is leading the entire team. He is available for all commercial, product and sourcing information and to help new entrepreneurs to start a photo or picture framing business,to set up gift, framing galleries and large photo frame & lamination factories.

MR.VIC. FAULKNER- Joint Managing Director of LION INDIA, operating from UK and Italy has been associated with the picture framing industry for more than 45 years and has worked as Sales, Marketing and Managing Director with large framing companies in America and Europe. During this time he had started his own trade magazine, Developed trade shows for the framing industry and acted as consultant to many large organisation in the Picture Framing Industry.

Mr. VIC FAULKNER as is popularly known is also called the 'GODFATHER' of the Picture Framing Industry worldwide.

Mission

The mission statement is to be a comlete soution provider of the widest range of picture framing components from stock at a fair price to offer machinery, service, quality and training.

Commitment

The whole team from top to bottom level, at all branches are dedicated to give all the clients the best possible service at all times. Company aim to keep in stock at all branches a complete range of products and machinery to enable all the clients to run the business without interruption. Company ensures that they have the latest products in stock as they become available from any part of the world. Company offers a comprehensive service plan for all machines supplied by us and maintain a full stock of spare parts. Company ship out all orders received and credit worthy within 48 hours of receipt. Company offers a comprehensive training program no matter whether you are a beginner or skilled craftsman.

SECURED LOANS	31.03.2005 Rs in Millions	31.03.2004 Rs in Millions
From ICICI Bank Limited/ Standard Chartered Bank (Against hypothecation of Motor Car)	0.463	0.021
	0.463	0.021
UNSECURED LOANS
From Directors	0.244	0.000
From Shareholders	2.694	2.155
	2.938	2.155

Fixed Assets

• Furnituer and Fixtures
• Computers
• Electric Installation
• Office Equipments
• Plant and Machinery
• Air Conditioner
• Motor Car/Cycle

The company is in Trade terms with: -

Ø S.MA.P. – FIL srl, 46042, Castel Goffredo (MN), Italy.

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.43.15
UK Pound	1	Rs.85.22
Euro	1	Rs.57.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
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	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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