MIRA INFORM REPORT

Report Date :

27^th February, 2007

IDENTIFICATION DETAILS

Name :	KAISE KATTI MA GRANITES PRIVATE LIMITED
Registered Office :	The Raintree Place, 9^th floor, McNichols Road, Chennai – 600031, Tamilnadu, India
Country :	India
Financials (as on) :	31.03.2004
Date of Incorporation :	11.04.1991
Com. Reg. No.:	18-20601
CIN No.: [Company Identification No.]	U14299TN1991PTC020601
PAN No.:	CHEK00778B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers, Exporter and Importer of granite monuments cut and polished, granite slabs

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 750000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is well established Company engaged in the business as manufacturers and exporters of granite monuments, cut and polished granite slab. Directors are very resourceful businessmen. Financial position is good. Trade relations are reported as fair. Payments are correct and as per commitments. The Company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	The Raintree Place, 9^th floor, McNichols Road, Chennai – 600031, Tamilnadu, India
Tel. No.:	91-44-28269894
Fax No.:	91-44-28363553
E-Mail :	stone@katti.ma.com
Website :	http://www.katti-ma.com
Location :	Rented
Corporate Office :	9 MC Nicholas Road, Chetpet, Chennai – 600 031, Tamil Nadu, India
Tel. No.:	91-44-28237505/2822206
Factory 1 :	803/5, DIC, Kuthambakkam, Chennai Bangalore High Road, Chettipet, Thiruvalluvar District, Tamilnadu – 602107, India
Tel. No.:	91-44-26273313
Location :	Owned

DIRECTORS

Name :	Mr. K. S. Gokuldas
Designation :	Managing Director
Date of Birth :	20^th October 1936
Address :	18 Sulaiman Zackhria Avenye, Casa Major Road, Egmore – 600008, Tamilnadu
Name :	Mr. G. Kalyan Kumar
Designation :	Director
Date of Birth :	23^rd January 1967
Address :	18 Sulaiman Zackhria Avenye, Casa Major Road, Egmore – 600008, Tamilnadu
Name :	Mrs. Hema Malini
Designation :	Director
Date of Birth :	26^th June 1969
Address :	18 Sulaiman Zackhria Avenye, Casa Major Road, Egmore – 600008, Tamilnadu
Name :	Mr. S. Kadowaki
Designation :	Director (Japanese)
Date of Birth :	20^th June 1948
Address :	3-6-1309 Tata 2 Chome, Ku Tokya, Japan

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
K S Gokuldas	1000
Katti Ma Exports Private Limited	179000
Total	180000

BUSINESS DETAILS

Line of Business :	Manufacturers, Exporter and Importer of granite monuments cut and polished, granite slabs
Products :	v Granite Cut & Polishing v Quarrying of Granite v Granite Slabs

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Granite	M2	18754	14968

GENERAL INFORMATION

No. of Employees :	Around 1200
Bankers :	State Bank of India Overseas Branch, 39 Rajaji Salai, Chennai – 600 001, Tamilnadu, India

Banking Relations :	Satisfactory
Auditors :	Venkat and Raghunathan Chartered Accountants
Address :	43/6, Mejestic Agency Apartments, Natha Muni Street, T Nagar, Chennai – 600 017, Tamilnadu, India
Associates :	v Katti Ma v Kaisei Shoji Kaisha v Katti Ma Exports Private Limited
Sister Concerns :	v Katti Ma Exports Private Limited v Katware Systems Solutions Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2,50,000	Equity Shares	Rs.100/-	Rs.25.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,80,000	Equity Shares	Rs.100/-	Rs.18.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

No subsequent financials are available from any of the sources.

Management remained non-cooperative during the current investigation.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2004	31.03.2003	31.03.2002
SHAREHOLDERS FUNDS
1] Share Capital	18.000	18.000	18.000
2] Reserves & Surplus	153.498	142.278	133.037
NETWORTH	171.498	160.278	151.037
LOAN FUNDS
1] Secured Loans	4.947	23.737	29.844
2] Unsecured Loans	0.000	0.000	0.000
TOTAL BORROWING	4.947	23.737	29.844
TOTAL	176.445	184.015	180.881
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	26.773	26.502	27.831
Capital work-in-progress	0.000	0.000	0.000
INVESTMENTS	69.004	56.799	50.739
CURRENT ASSETS, LOANS & ADVANCES
Inventories	15.705	19.205	18.434
Sundry Debtors	33.241	37.716	35.705
Cash & Bank Balances	14.092	20.071	23.698
Other Current Assets	0.574	1.090	0.755
Loans & Advances	34.078	35.331	36.345
Total Current Assets	97.690	113.413	114.937
Less: CURRENT LIABILITIES & PROVISIONS
Current Liabilities	17.022	9.161	9.661
Provisions		3.538	2.974
Total Current Liabilities	17.022	12.699	12.635
Net Current Assets	80.668	100.714	102.302
MISCELLANEOUS EXPENSES	0.000	0.000	0.009
TOTAL	176.445	184.015	180.881

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2004	31.03.2003	31.03.2002
Sales Turnover [including other income]	366.748	359.752	110.221
Profit/(Loss) Before Tax	27.475	17.712	22.767
Provision for Taxation	5.459	1.338	0.000
Profit/(Loss) After Tax	22.016	16.374	22.767
Export Value	369.337	355.882	100.186
Import Value	39.935	24.791	7.548
Total Expenditure	339.272	342.040	(87.454)

KEY RATIOS

PARTICULARS		31.03.2004	31.03.2003	31.03.2002
PAT / Total Income	(%)	6.00	4.55	20.65
Net Profit Margin (PBT/Sales)	(%)	7.49	4.92	20.65
Return on Total Assets (PBT/Total Assets}	(%)	14.20	9.00	11.76
Return on Investment (ROI) (PBT/Networth)		0.16	0.11	0.15
Debt Equity Ratio (Total Liability/Networth)		1.13	1.22	1.28
Current Ratio (Current Asset/Current Liability)		5.74	8.93	9.09

LOCAL AGENCY FURTHER INFORMATION

The company has acquired another shed for manufacturing German Monuments. It's Japanese Collaborators are Kaisei-Shojhi Kaishawts, 1, BS Building, 9-6 Shibuya – 3 Chame, Shibuya-Ku, Tokyo, Japan holding 50% of the Equity Shares.

It exports granite monuments and imports spares and components for machinery.

The company is a 100% Export Oriented Unit.

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.44.20
UK Pound	1	Rs.86.72
Euro	1	Rs.58.23

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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