MIRA INFORM REPORT

Report Date :

15.03.2007

IDENTIFICATION DETAILS

Name :	POKARNA LIMITED
Registered Office :	1^stFloor, Surya Towers, 105, Sardar Patel Road, Secunderabad – 500 003, Andhra Pradesh, INDIA
Country :	India
Financials (as on) :	31-03-2006
Date of Incorporation :	09.10.1991
CIN No.:	L14102AP1991PTC013299
Com. Reg. No.:	01-13299
TAN No.: (Tax Deduction & Collection Account No.)	HYDP00785B
PAN No.: (Permanent Account No.)	AABCP2100Q
Legal Form :	Public limited liability company. The shares of the company are listed on the Stock Exchanges.
Line of Business :	Excavation of granite blocks and polishing.

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 2750000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is well established company having satisfactory track. Trade relations are fair. Financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	1^stFloor, Surya Towers, 105, Sardar Patel Road, Secunderabad – 500 003, Andhra Pradesh, INDIA
Tel. No.:	91-40-27842182/4101/27897722
Fax No.:	91-40-27842121
E-Mail :	info@pokarna.com, contact@pokarna.com, companysecretary@pokarna.com
Website :	http://www.pokarna.com, http://www.stanzaworld.com
Corporate Office :	105, 1^st Floor, Surya Towers, S. P. Road, Secunderabad – 500 003, Andhra Pradesh
Tel. No.:	91-40-27844101/27842182/27897722/27896361
Fax No.:	91-40-27842121
E-Mail :	contact@pokarana.com
Factory 1 :	Survey No. 123, Toopranpet Village, Choutuppal (Mandal), Dist. Nalgonda, Andhra Pradesh
Tel. No.:	91-925-2722284/95/96
Fax No.:	91-925-2722286
Factory 2 :	Survey No. 563, 568 & 574, Aliabad Village, Shameerpet (Mandal), R. R. District, Andhra Pradesh
Tel. No.:	91-928-245207/209
Fax No.:	91-928-245208
Factory 3 :	Survey No. 33, 39, 50, 51, 55, 68 and 69, Apparels Export Park, Gundla Pochampally Village, Medchal Mandal, R. R. District, Andhra Predesh, India
Branches :	Survey No. 980/3 & 5, R. L. Puram, Chimakurthy – 523 226, Andhra Pradesh
Branches:	Survey No. 980/2, R. L. Puram, Chimakurthy – 523 226, Andhra Pradesh
Branches:	Survey No. 988/1, R. L. Puram, Chimakurthy – 523 226, Andhra Pradesh
Branches:	Survey No. 115/3, R. L. Puram, Chimakurthy – 523 226, Andhra Pradesh
Branches:	Survey No. 906, Madikonda Village, Kazipet, Andhra Pradesh
Branches:	Survey No. 103, Konidena Village, Ballikurva, Andhra Pradesh
Branches:	Survey No. 52, Tekkali Village, Srikakulam District, Andhra Pradesh

DIRECTORS

Name :	Mr. Gautam Chand Jain
Designation :	Chairman and Managing Director
Name :	Mr. Prakash Chand. Jain
Designation :	Director
Name :	Mr. M. Yugandhar
Designation :	Director
Name :	Mr. T. V. Chowdary
Designation :	Director
Name :	Mr. Vinayak Rao Juvvadi
Designation :	Director
Name :	Mr. Mahender Chand Chordia
Designation :	Director
Name :	Mr. Dhanjibhai Sawla
Designation :	Director
Name :	Mr. Rahul Jain
Designation :	Executive Director (30^th July, 2004)
Name :	Mr. Siddharth Jain
Designation :	Executive Director (30^th July, 2004)

KEY EXECUTIVES

Name:	Mr. Paras Kumar Jain
Designation:	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Category	No. of shares	% of Shares
Promoter	3586721	57.84
Mutual Funds	137419	02.22
FIIs	283810	04.58
Private Corporate Bodies	392559	06.33
Indian Public	1688840	27.24
NRI’s	21243	00.34
Others	90208	01.45
TOTAL	6200800	100.00

BUSINESS DETAILS

Line of Business :

Excavation of granite blocks and polishing.

Products :

Product Description	Item No. (ITC Code)
Polished Granite Slabs/Tiles	68022310
Mens shirt	6205
Mens Trouser	6203

Exports to :

USA, Europe, Asia, India, Rest of the world, Italy, China, Taiwan and Hong Kong

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Finished Granites	Sq.mtr.	NA	636000	536729
Raw Granites	Cbm.	NA	NA	12231
Apparels	Nos.	1500000	1200000	224477

GENERAL INFORMATION

No. of Employees :

440

Bankers :

Union Bank of India

R. P. Road, Secunderabad – 500 003, Andhra Pradesh

Facilities :

	31.03.2005 (Rs in Millions)
Secured Loans
Term Loans from Bank
Foreign Currency Loan	67.560
Rupee Loan	285.365
Working Capital Loans from Bank
Rupee Loan	492.474
High Purchase Loans from Banks
Rupee Loan	18.633
Total	864.033

Unsecured Loans :

Other Loans and Advances
Others:
InterCorporate Borrowings	40.500
From Directors	13.339
Total	53.839

Banking Relations :	Good
Auditors :	S. Daga & Company Chartered Accountants Hyderabad.
Associates/Subsidiaries :	Pokarna Fashions Limited Pokarna Apparels Limited Pokarna Marketing Private Limited0 Pokarna Fabrics Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Shares	Rs. 10/- each	Rs. 100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6,200,800	Equity Shares	Rs. 10/- each	Rs. 62.008 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		62.008	62.008	62.008
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		717.303	635.016	522.094
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		779.311	697.024	584.102
LOAN FUNDS
1] Secured Loans		864.033	790.066	685.433
2] Unsecured Loans		53.839	0.000	0.000
TOTAL BORROWING		917.872	790.066	685.433
DEFERRED TAX LIABILITIES		43.070	29.498	17.298
TOTAL		1740.253	1516.588	1286.833
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		904.023	815.091	712.306
Capital work-in-progress		16.089	55.116	0.754
INVESTMENT		0.000	1.152	1.150
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	269.352	184.783	89.832
	Sundry Debtors	553.921	468.563	434.226
	Cash & Bank Balances	94.763	57.470	46.360
	Loans & Advances	89.867	82.579	59.084
Total Current Assets		1007.903	793.395	703.328
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	151.705	117.164	82.313
	Provisions	36.057	31.002	43.415
Total Current Liabilities		187.762	148.166	135.941
Net Current Assets		820.141	645.229	567.387
MISCELLANEOUS EXPENSES		0.000	0.000	5.236
TOTAL		1740.253	1516.588	1286.833

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		1501.303	1346.740	1135.411
Other Income		111.126	58.521
Total Income		1612.429	1405.261	1135.411
Profit/(Loss) Before Tax		129.405	159.505	175.017
Provision for Taxation		22.371	19.232	23.281
Profit/(Loss) After Tax		107.034	140.273	151.736
Total Earnings		1164.600	1161.600	927.412
Imports :
	Raw Materials	100.000	88.500
	Stores & Spares	136.600	133.300	169.324
	Capital Goods	47.400	99.400
Total Imports		284.000	321.200	169.324
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses	429.323	387.570
	Administrative Expenses	61.335	50.515
	Raw Material Consumed	445.615	388.810
	Purchases made for re-sale	34.917	47.324	960.393
	Salaries, Wages, Bonus, etc.	105.142	86.134
	Interest	72.556	62.980
	Depreciation & Amortization	57.066	47.656
	Other Expenditure	277.068	174.765
Total Expenditure		1483.022	858.184	960.393

QUARTERLY / SUMMARISED RESULTS

Particulars	30.06.2006 (1^st Qtr.)	30.09.2006 (2^nd Qtr.)	31.12.2006 (3^rd Qtr.)
Sales Turnover	362.100	442.200	403.0
Other Income	3.900	9.900	0.0
Total Income	366.000	452.100	403.0
Total Expenditure	313.700	370.200	335.5
Operating Profit	52.300	81.900	67.5
Interest	9.000	23.700	21.8
Gross Profit	43.300	58.200	45.7
Depreciation	15.100	15.500	15.1
Tax	2.000	2.700	6.2
Reported PAT	24.500	35.900	20.2

200606 Quarter 1

Notes

EPS is basic and diluted. 1. The Above unaudited financial results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 29.07.2006. 2. Previous year figures have been regrouped/ rearranged wherever necessary. 3. Interest is net of reimbursement under TUFS amounting Rs. 114.07 Lacs for the period April 2003 to June 2006. 4. The Company had received 7 investor complaints during the quarter which were immediately attened to. The Company had no investor complaints lying unresolved at the beginning or at the end quarter. 5. The Granite Division of the company had an EPS of Rs.9.37 for the quarter ended 30.06.2006.

200609 Quarter 2

Notes:

EPS is basic & diluted 1. The above unaudited financial results have been reviewed by the audit committee and approved by the Board of Directors at its meeting held on 30th October,2006. 2. Previous year's figures have been regrouped / rearranged wherever necessary 3. The company had received 7 investor complaints during the quarter which were immediately attended to. The Company had no investor complaints lying unresolved at the beginning or at the end quarter 4. The Granite division of the Company had an EPS of Rs. 20.50 for the Half-year Ended 30th September,2006 5. Out of the total sanctioned outlay of INR 1500 million for the Engineered Stone Division, the company has invested INR 196 million upto the half-year ended 30th September, 2006. The Engineered Stone Division has not commenced commercial production and accordingly there is no segment revenue / segment results for the same.

200612 Quarter 3

Notes:

EPS is Basic & Diluted 1. The above unaudited financial results have been reviewed by the audit committee and approved by the Board of Directors at its meeting held on 31st January 2007. 2. Previous year's figures have been regrouped/rearranged wherever necessary. 3. The company had received 2 investor complaints during the quarter which were immediately attended to. The company had no investor complaints lying unresolved at the beginning or at the end quarter. 4. The granite division of the company had an EPS of Rs.28.99 for the nine months ended 31st December 2006. 5. Out of the total sanctioned outlay of INR 1500 million for the Engineered Stone Division, the company has invested INR 200 million upto the nine months ended 31st December 2006. The Engineered Stone Division has not commenced commercial production and accordingly there is no segment revenue/segment results for the same.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	1.16	1.15	1.10
Long Term Debt Equity Ratio	0.51	0.45	0.34
Current Ratio	1.32	1.21	1.24
TURNOVER RATIOS
Fixed Assets	1.43	1.48	1.71
Inventory	6.67	9.97	12.67
Debtors	2.96	2.79	2.39
Interest Cover Ratio	2.78	3.43	5.41
Operating Profit Margin (%)	17.09	19.48	22.21
Profit Before Interest and Tax Margin (%)	13.32	15.96	19.20
Cash Profit Margin (%)	10.83	13.89	16.57
Adjusted Net Profit Margin (%)	7.06	10.37	13.57
Return on Capital Employed (%)	12.67	15.70	19.73
Return on Net Worth (%)	14.50	21.90	29.15

STOCK PRICES

Face Value	Rs. 10.00/-
High	Rs. (0.01)
Low	Rs. (0.01)

LOCAL AGENCY FURTHER INFORMATION

History:

Subject was incorporated at Secunderabad in Andhra Pradesh under the name and style of Pokarna Granites Limited.

The company was promoted by Mr. Gautam Chand Jain and Mr. Prakash Chand Jain. The company is in the business of producing polished random slabs and tiles. The company is operating with 2 plants and 7 quarries.

During 2000-01, the company purchased the assets of Laxmi Granites Limited from Financial Institutions (IDBI, IIBI & State Bank of Travancore) at a price of Rs. 75.258 millions. With this acquisition the total installed capacity was enhanced to 300000 sq. mtrs in 2002-03.

Recently, the name of the company was changed to the present.

Business:

Subject is engaged in the business as Excavation of Granite Blocks and Polishing.

Generic Names of the Principal Products/Services of the company are:-

· Granite Rough Blocks

· Polished Granite Slabs/Tiles

The company is an Export Oriented Unit.

NEW PROJECT

Keeping in mind the increasing demand for the engineered stone in the world market, the Company is setting up green field project for manufacturing of engineered stone. This would be the first ever initiative under taken by any Indian Company in this sector. For this green field project, the Board has sanctioned a total capital outlay of INR 1500 Million.

This project would be completed within a period of 15-18 month and would be one of the best manufacturing complexes around the world. For this project, Company has entered into a Contract with 'BRETON S.p.A.', Italy.

'BRETON' is world leader for its plants and technology for manufacturing the 'Engineered Stone', with an absolutely exclusive know-how. Under this Contract, 'BRETON' among other things, would supply patented plant & technology to the Company.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors Responsibility Statement, the Directors confirm:

That in the preparation of the annual accounts, the applicable accounting standards have been followed and no material departures have been made from the "same; That they had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the company at the end of the financial year and of the profit of the company for that period; That they had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities; That they had prepared the annual accounts on a going concern basis.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENT

Granite

The word "Granite" is derived from the Latin word "Granum" meaning "grain" because of its granular nature. The Company's granite segment activities can be broadly classified into the following.

Quarrying

Granite quarry is a pit or some open excavation from which granite is extracted. To extract granite from a quarry digging, cutting or cracking process is undertaken. This process of extracting the stone is called as quarrying. The Company extensively uses mining machinery, such as excavator, tarn rock, compressor and drilling machine for drilling, wire saw for dressing the blocks, crane for lifting big blocks, and dumpers and truck for transport of the waste and finished product. The company recognises the importance of using earth's resources in a responsible manner as this makes greater business sense. To compliment this philosophy the Company carries out scientific quarrying operations using the most mechanized quarrying machinery and by extensively using environmental friendly, very safe and nonexplosive cracking agent.The Company's endeavour is to quarry in a manner such that there, is no impact whatsoever on the environment including men, flora and fauna.

Manufacturing of slabs and tiles

To transform the huge block of rough granite into smaller pieces for manufacturing, the block must be sawed into slabs.

This operation is performed by gang saw. Gang saw use fine steel shot and dozens of thin blades powered by pitman drive and flywheel assemblies to operate the huge saw mechanisms primarily used to produce thin structural stone panels. Large pumps in pits below the saws maintain a constant flow of water and steel shot slurry onto the block being cut. After slabs are sawed, they are sent for leveling, grinding and polishing.

The Company has two manufacturing complexes with state-of-the-art equipment imported from the finest companies in the world.These machines extract the raw material; then cut and polish the granite with unmatched precision and efficiency thus ensuring a great finish.

As per the data available with the Company, it is the largest exporters of Granite slabs from India dealing in over 70 premium colors and exporting more than 120 containers every month to the most reputed companies all over the world.

Apparel

It has been little over a year since all quotas were eliminated in most of the world. This has created a level platform within the industry and with the impact of globalisation and the world becoming smaller there are tremendous challenges and opportunities ahead and they believe every challenge is an opportunity.

Size of the Indian Textiles and clothing sector is estimated to be worth US$ 46 billion and is forecasted to grow at the rate of 20% per annum. A growing consumer class with its disposable income has cause significant growth in the domestic market size. Indian domestic apparel market is estimated to have reached US$ 20 billion in 2005.

The Company continues to be a preferred contract manufacturer for renowned international brands. The Company's premium clothing brand STANZA has positioned itself very aggressively in the market. Right from its launch, STANZA has continuously been setting new standards in the men's wear domain, which in the past have never been focused on. The Company's initiative to position STANZA has been very different when compared with its peers. They kick started STANZA in a teasing campaign which was unique and saw the markets building on its interest and curiosity levels with queries and guesses on the brand offerings. The campaign presented well-dressed men with statements that could only be highly individualistic, ergo "Sameness Deleted". If the first campaign generated interest and curiosity, the second one, Summer, was in itself a personification of glamour. Winter true to its exclusivity, STANZA's campaign showcased a brilliant display of shirts across various categories of formals, casuals and fashion. The aim of the campaign was to primarily educate the consumers, about the distinct brand offerings.

STANZA has surpassed customer expectations and has achieved a level of quality previously unheard of in India. It would suit the Indian male palate and at the same time would be very different, fresh and innovative to what is being offered in the market.

STANZA is distinctive in every possible way as are the gentlemen who wear it. The Company is committed to make STANZA a premium men's wear lifestyle brand, providing the ultimate in quality and committed to bring about continuous innovations in its product.

The Company's plan to launch retail stores for its premium brand STANZA is on track. In this regard Company has signed letters of intent with various property developers across the cities in India including major inetros. FY 2006-2007 would witness launch of STANZA stores across various cities. To give shape to STANZA stores, Company has hired the services of a renowned Swiss architect and designer.

OUTLOOK

Outlook for both the segments in which Company operates is encouraging. Vagaries of market in the form of fierce competition and pricing pressure would be the key determinants of success in days to come. Focus of the Company in both the segment would be to improve sales realization by offering quality products and to implement cost cutting measures.The Company would strive to practice perfection to exceed expectation.

RISKS AND CONCERNS

Productivity

The main problem of Granite Mining Industry in India is the low productivity and high wastage. The low productivity is mainly due to conventional methods of mining adopted at present and also due to formation of the rock.

Mitigant — The Company is fast in adopting the use of wire saws and slot drilling instead of conventional blasting burner. Mechanisation of Company's Quarries with modern machines and new techniques will increase the production of defect free blocks. This will result in high productivity and production of defect free blocks with less wastage.

Labour management

The low productivity per worker and less man-hour utilisation is another problem. The lack of exposure to modern quarrying and training for the Indian workers is a major reason for the low productivity of the workers.

Mitigant — Company's field supervisors' train and educate the work force, which helps to a great extent.

Availability of raw granite blocks The non-availability of best quality blocks for the processing continues to be one of the major problems of granite industry and it is expected to remain the same in future too.

Mitigant — Company has its own captive quarries and hence is able to get best of the Blocks for Export. This resolves the shortage to some extent and for the rest the Company has tied up with the other quarry owners for supply of Blocks.

Exploring new areas

As per the geological survey, India has a vast area of abundant granite deposits of various colours that are still to be explored.

Mitigant — Every effort is made by the Company to improve the company's share in the world market by exploring new areas. The Company has an exclusive team dedicated for survey and identification of commercially viable granite deposits.

FINANCIAL PERFORMANCE OF THE COMPANY/OPERATIONS

v Net Sales for the full year were Rs. 1501.303 Millions recording a growth of 11.48 % over the previous year (31.03.2005), which was at Rs. 1346.740 Millions

v Cash Profit (before depreciation, and Tax) stood at Rs. 186.270 Millions, recording a decline of 7.14 % over the previous year (31.03.2005), which stood at Rs. 200.595 Millions.

v Profit Before Interest and Tax (PBIT) stood at Rs. 201.760 Millions, recording a decline of 6.56 % over the previous year (31.03.2005), which stood at Rs. 215.920 Millions.

v Profit Before Tax (PBT) stood at Rs. 129.204Lacs, recording a decline of 15.52 % over the previous year (31.03.2005), which stood at Rs. 152.940 Millions.

v Profit After tax (PAT) stood at Rs. 107.035 Millions, recording a decline of 23.69 % over the previous year (31.03.2005), which stood at Rs. 140.274 Millions.

v EPS for the year stood at Rs. 17.26, recording a decline of 23.69% over the previous year (31.03.2005), which stood at Rs. 22.62

v The Stand alone EPS of Granite Division of the Company stood at Rs. 35.52 increasing by 12.94% as against Rs. 31.45 of the previous year.

v The Board has recommended a final dividend of 35% subject to approval of the Members' in the ensuing Annual General Meeting of the Company. The Company had paid dividend of 35% during the financial year 2004-2005.

Initial losses of apparel business has resulted in decline in bottom line.

Company’s fixed assets include Land, Buildings, Factory and Quarry Buildings, Plant and Machinery, Vehicles, Furniture and Fixtures, Office Equipments and Trade Marks and Brand Names.

Website Details Attached:

Products :

· Black Galaxy Granite

· Absolute Black Granite

· Pokarana Green Granite

· Tropic Brown Granite

· Vyara Granite

· Tan Brown Granite

· Golden Rock Granite

· Seaweed Green Granite

· Kashmir White Granite

· Yellow Juparna Granite

· Vizag Blue Granite

· White Mystic Granite

· Black Pearl Granite

· Ruby Red Granite

· Colomno Jupama Granite

· Sunrise Yellow Granite

BEGAN WITH A VISION

Most granite companies begin with a quarry or a factory. Ours began with a vision. A vision that Pokarna Limited (formerly Pokarna Granites Limited) would be the most integrated granite company in the country, with a manufacturing ethos that would have simply no equal.

BELIEVE IN VERTICAL INTEGRATION

From the very beginning, they believed in vertical integration. They begin with the finest raw material, invariably from the very own captive quarries & carefully identified independent quarries - assuring consistent, high quality supplies. Round the year.

They now have two manufacturing complexes with state-of-the-art equipment imported from the finest companies in the world. These machines extract the raw material; then cut and polish the granite with unmatched precision and efficiency.

THEY THINK GLOBAL

They were the first company in the country to use up-to-the-minute diamond wire saw technology to extract the raw material in the quarries. At the factories, the battery of precision gang saws is engineered by none other than Breton and Giorgini Maggi. High-speed computer-controlled polishing lines designed by Breton, accompany the gang saws. A top of the line Pedrini tile plant, the only one in the country, hums round the clock. All of these represent the best of Italy.

THEY DELIVER THE PROMISES

The same uncompromising standards of excellence are the foundations of all the machines. Like the quarries, the plants too work 24 x 7. Delivering quality and meeting the most demanding deadlines. They even own the trucks that move the products. An entire fleet that moves from quarries to the factories, through inspections all the way to the ports for shipments to destinations around the globe.

THEY INVEST IN PEOPLE

Most important, they believe in investing in people. In staff training. In welfare. And in an eco-sensitive way of doing things. This ethos ensures quality control, the supreme priority. Which is why the client list is so distinguished, it reads like a Who's Who of the granite trade world.

THEY'VE WON AWARD AFTER AWARD

The export performance has won us a host of awards. From state governments to central government, from trade organization to financial jthenals. Entrepreneurship at its best. No surprise considering the people behind Pokarna Limited are the people behind India's single-largest fabric trading group with their own network of showrooms and offices.

Infrastructure:

Unit 1:

4 gangsaws, 1 polishing line, 2 edge cutting machines

1 wire saw machine

3 EOT cranes, 1 gantry crane

2 water recycling & filtration plants

Good landscaping

Over 150 employees

Working 24-hours with three shifts in a beautifully landscaped environment.

Unit 2:

6 Breton gang saws

2 slab polishing lines

2 Edge-Cutting Machines, Fully automated Breton Resining Line complete Pedrini tile plant. One of its kind in the

country. Only Pokarna is operating this plant in the country.

6 EOT Cranes.

2 Water Treatment Plants.

200 Employees, working in 3 shifts a day in a beatifully landscaped premises.

Quarries:
High capacity extractors with derric cranes and heavy dumpers, wire saw machines, tamb rock machine for drilling are affectively used. Also, high quality chemicals are used to split the blocks. All machinery is latest and imported from the best manufacturers in the world.

Head Office:

The head office in Hyderabad is well equipped with all communication devices, including high-speed Internet connections and top of the line computers. While a total of 500 employees work in the quarries and factories, a 40 strong workforce at the headquarters deal with customers, track orders, ensure smooth deliveries. Professional managers motivate and lead every depart

Packing & Shipping

They are among the few companies in India that can load both open top and closed top 20-foot containers, with the ability to load a closed-top container using C-clamps.

Most customers who have the facility to open closed top containers prefer them because they are cheaper and more secure.

They can stack the granite in the container on both A-frames and crates.

The stacking method is so secure, no movement is possible inside the container. Besides the Styrofoam cushioning throughout, they use only the best chemically treated insect-proof rubber wood, known for its strength, for packing. Even the wood is trimmed and given a fine finish to ensure the granite reaches you in pristine condition.

All corners and edges are specially protected with additional cushioning.

They load granite in 20 feet containers. Each container can be filled with 20 tons of granites, which means approx. 315 square meters of 2 cm slabs.

As for Tiles, they can load 7200 sq feet of 1ft.X1ft. tiles, or 5400 square feet of 18 inch X 18inch tiles in one container.

Because Pokarna exports large volumes, they are able to secure special shipping rates for the customers.

HR

The founder of Pokarna Group, Mr. Gautam Chand Jain, has always believed that no matter how sophisticated the technology may be, in the final analysis it is people who make the difference.

Not surprisingly, the Pokarna management's uppermost echelons comprises of the finest minds in the industry with academic backgrounds that would be the envy of its peers. They are not merely professional managers but stake-holders in the company. And they lead and motivate the 500 employee to excel in everything they do by example.

They recruit the best people down the line, train them and re-train them as technology evolves, create a work environment where quality is a nonstop ethos. They provide staff welfare including meals on duty, group transport, sports and other facilities. The ability to retain people by giving them space for upward mobility, is the strength.

This extraordinary 'human capital' invested in Pokarna is the assurance of quality and reliability.

Awards

v Awarded Certificate of Export Recognition for Outstanding Performance in Granite Blocks, Slabs and Tiles for the Year 2004 by Capexil.

v Awarded Certificate of Merit as the Fastest growing & Largest Granite & stone Company at Construction World - NICMAR Award 2004.

v “Best Export Performance Award" (in Granite Sector) for the year 2001-2002, 2002-2003 by the Visakhapatnam Special Economic Zone.

v “Bharat Ratna Dr. Visvesvaraya Industrial Award” by all India Manufacturers Organisation for Best Export Performance for the year 2002.

v “Bharat Ratna Dr. Visvesvaraya Industrial Award” by all India Manufacturers Organisation for Best Export Performance for the year 2002.

v “Amancherla Ramamurthy Silver Rolling Trophy” for Best All Round Performance by the Federation of Andhra Pradesh Chambers of Commerce & Industry for the year 2002.

v “Best All Round Performance in Industrial Activity” including PROMOTION / EXPANSION IN THE STATE for the year 2001-2002 by federation of Andhra Pradesh Chambers of Commerce and Industry.

v “Certificate of Merit” from CAPEXIL in recognition of Company’s Export Achievement for the years 1994-95 to 1999-2000

v “Second Prize” for the Company’s performance in the category of best Granite Products from STONA’1999

v “Export House” statue from Director General of Foreign Trade for the Companies performance in the year 1999-2000, which would be valid up to the year 2003.

v Surana Udyog Silver Rolling Trophy” for Best Export in the State of Andhra Pradesh for the year 1999-2000 from FAPCCI

v “Best Mechanized Quarry” award at All India Level from FIMI-AIGSA.

v "Second Prize” for “Export Performance” amongst all the 100% EOU’s in Andhra Pradesh and Yanam from the Development Commissioner VEPZ during the year 1999-2000.

v “First Prize” in the Granites Sector for “Export Performance – Merit Certificate” in 1999-2000 from the Development Commissioner VEPZ.

v "Special Award” from CAPEXIL for the year 1999 – 2000 for the companies Outstanding Export Performance.

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.43.98
UK Pound	1	Rs.85.59
Euro	1	Rs.58.49

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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