MIRA INFORM REPORT

Report Date :

31.08.2007

IDENTIFICATION DETAILS

Name :	HUZAIFA FURNITURE INDUSTRIES PRIVATE LIMITED
Registered Office :	Neptube Apartments, Bunglow No. 1, 107, Pali Hill Road, Bandra (West), Mumbai-400050
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	15.09.1987
Com. Reg. No.:	11-44674
CIN No.: [Company Identification No.]	U36100MH1987PTC044674
TAN No.: [Tax Deduction & Collection Account No.]	NSKH01186D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Furniture and to Deal with Furniture Items.

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Maximum Credit Limit :	--
Status :	Poor
Payment Behaviour :	Slow and delayed
Litigation :	Clear
Comments :	Financial position of the company is poor having substantial accumulated losses. The company’s payments are slow and delayed. It can be considered for any business dealings on safe and secured trade terms and conditions.

LOCATIONS

Registered Office :	Neptube Apartments, Bunglow No. 1, 107, Pali Hill Road, Bandra (West), Mumbai-400050, India
Tel. No.:	91-253-2383268 / 2801302 / 2382948
Fax No.:	91-253-2383784 / 2801303
E-Mail :	indolinefurniture@rediffmail.com
Factory 1 :	B 68/1, MIDC Industrial Area, Ambad, Nasik – 422 010, Maharashtra, India
Tel. No.:	91-253-2383268 / 2382948
Fax No.:	91-253-2383784
Factory 2 :	Plot No. 31/32 Sraven Sector, Ashwini Nagar, CIDCO, Nashik – 422010, Maharashtra, India

DIRECTORS

Name :	Mr. Hussain S. Nansey
Designation :	Director
Address :	P. O. Box No. 6636, Sharjah, UAE
Date of Birth/Age :	6^th January, 1949
Date of Appointment :	28^th September, 1991
Name :	Mrs. Nissa J. Nansey
Designation :	Director
Address :	P. O. Box No. 6636, Sharjah, UAE
Date of Birth/Age :	12^th August, 1953
Date of Appointment :	28^th September, 1991
Name :	Mr. Ahmed H. Nansey
Designation :	Director
Address :	P. O. Box No. 6636, Sharjah, UAE
Date of Birth/Age :	2^nd October, 1974
Date of Appointment :	20^th June, 1997
Name :	Mr. Saif H. Nansey
Designation :	Director
Address :	P. O. Box No. 6636, Sharjah, UAE
Date of Birth/Age :	24^th October, 1978
Date of Appointment :	15^th January, 2003
Name :	Mr. Saifuddin Dalal
Designation :	Director
Address :	SSA – 48, Sravan Sector, Aswini Nagar, Cidco Nashik – 422009,Maharashtra, India
Date of Birth/Age :	15^th February, 1950
Date of Appointment :	7^th August, 1993
Date of Ceasing :	15^th January, 2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Equity Shares
Hussain S. Nansey		18875
Nissa H. Nansey		10375
Ahmed H. Nansey		10375
Saif H. Nansey		10375
Total		50000
No. of Preference Shares
Hussain S. Nansey		11125
Nissa H. Nansey		9625
Ahmed H. Nansey		9625
Saif H. Nansey		9625
Total		40000
Equity Share Breakup (Percentage of Total Equity):
Category		Percentage
Directors or relatives of directors		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Furniture and to Deal with Furniture Items.

Products :

Item Code No. [ITC Code No.]	Product Description
9401	Wooden Chairs
9403	Wooden Tables

• Dining Tables
• Dining Chairs
• Beds/Cots
• Calunets
• Sofa Sets
• Solid Wood Shutters
• Membrane Shutters
• Cabinets
• Cornices
• Pelmets
• Skirtings

GENERAL INFORMATION

No. of Employees :	50
Bankers :	Indian Bank, Ambad, Nasik Branch, Pune Branch, Mandvi Branch Grindlays Bank, Beach Candy Branch ICICI Bank, Nashik HDFC Bank, Nashik Development Credit Bank Limited, Fort Branch, 16 Ambalal Doshi Marg, Mumbai-400001, Maharashtra, India

Banking Relations :	Satisfactory
Auditors :
Name :	C M Gabhawala and Company Chartered Accountants
Address :	42, Nanik Niwas, 30, Dr. D. D. Sathe Marg, Girgaum, Mumbai-400004, Maharashtra, India
Tel. No.:	91-22-23823923
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs. 100/- each	Rs. 5.000 millions
58,500	7.5% Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs. 5.850 millions
41,500	Unclassified Shares	Rs. 100/- each	Rs. 4.150 millions
	Total		Rs.15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs. 100/- each	Rs. 5.000 millions
40,000	7.5% Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs. 4.000 millions
	Total		Rs. 9.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		9.000	9.000	9.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		[15.947]	[16.831]	[18.144]
NETWORTH		[6.947]	[7.831]	[9.144]
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.301
2] Unsecured Loans		111.963	111.090	116.255
TOTAL BORROWING		111.963	111.090	116.556
DEFERRED TAX LIABILITIES		11.901	12.250	12.465
TOTAL		116.917	115.509	119.877
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		70.474	73.839	77.006
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.831	1.831	2.332
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	45.929	42.231	44.144
	Sundry Debtors	16.611	11.963	15.604
	Cash & Bank Balances	3.231	4.965	2.620
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.649	1.571	2.072
Total Current Assets		69.420	60.730	64.440
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	21.770	19.441	24.048
	Provisions	3.038	2.598	0.000
Total Current Liabilities		24.808	22.039	24.048
Net Current Assets		44.612	39.691	40.392
MISCELLANEOUS EXPENSES		0.000	0.148	0.147
TOTAL		116.917	115.509	119.877

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		79.597	63.352	47.173
Other Income		0.000	0.000	3.271
Total Income		79.597	63.352	50.444
Profit/(Loss) Before Tax		0.662	1.098	1.221
Provision for Taxation		0.000	0.000	1.078
Profit/(Loss) After Tax		0.662	1.098	0.143
Earnings in Foreign Currency :
	Export Earnings	0.000	0.000	4.129
Total Earnings		0.000	0.000	4.129
Imports :
	Raw Materials	0.000	0.000	8.288
Total Imports		0.000	0.000	8.288
Expenditures :
	Manufacturing Expenses	0.000	0.000	29.883
	Administrative Expenses	0.000	0.000	11.186
	Selling and Distribution Expenses	0.000	0.000	4.007
	Interest	0.360	0.239	0.000
	Depreciation & Amortization	4.278	4.282	4.147
	Other Expenditure	74.296	57.733	0.000
Total Expenditure		78.934	62.254	49.223

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	0.83	1.73	0.28
Net Profit Margin (PBT/Sales)	(%)	0.83	1.73	2.59
Return on Total Assets (PBT/Total Assets}	(%)	0.46	0.80	0.86
Return on Investment (ROI) (PBT/Networth)		[0.09]	[0.14]	[0.13]
Debt Equity Ratio (Total Liability/Networth)		[19.68]	[17.00]	[15.38]
Current Ratio (Current Asset/Current Liability)		2.79	2.75	2.68

LOCAL AGENCY FURTHER INFORMATION

Fixed Assets

Land

Buildings

Machinery

Motor Vehicle

Furniture and Fixtures

Computers

Office Equipments

Jigs and Fixtures

Bankers Charges Report as per Registry

Name of the company	HUZAIFA FURNITURE INDUSTRIAL PRIVATE LIMITED
Presented By	Development Credit Bank Limited, Fort Branch, Mumbai-400001, Maharashtra, India
1) Date and description of instrument creating the change	Deed of Hypothecation dated 15.05.2000
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 12.500 Millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of the movable properties of the borrower including its moveable plant and machinery, machinery spares, tools and accessories furniture and fixture, stock in trade, finished goods in progress, raw materials and other moveable, both present and future whether installed or not and whether in now lying loose or in cases or which are now lying or stored on or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or about all the borrower’s factories, premises and godowns or wherever else the same may be or be held by way party to the order of disposition of the borrower or in course of transit or on high seas or on order, or delivery, however and whosesoever in the possession of the borrower and either by way of substitution or addition. ORMA Membrance press Polymac AC 32 Polymac Edge Binding Polymac Manual Trimming Polymac Edge Trimming Rover 30 S2 Boring Type ERGHO 5 Single Side Edge Binding
4) Gist of the terms and conditions and extent and operation of the charge.	For Funded CC Limit Interest @ PLR + 2.50 % Margin : 30 % on stock For Non-Funded Import L/C Commission as per FEDAI Rules Repayment on demand or on due date / retirement of documents / annual review Margin 10 %
5) Name and Address and description of the person entitled to the charge.	Development Credit Bank Limited, Fort Branch, 16 Ambalal Doshi Marg, Mumbai-400001, Maharashtra, India

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.41.04
UK Pound	1	Rs.82.76
Euro	1	Rs.56.07

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	1
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	-
--CREDIT LINES	1~10	-
--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	NO
TOTAL		10

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.	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