MIRA INFORM REPORT

Report Date :

07.11.2007

IDENTIFICATION DETAILS

Name :	SHAH AND SHAH DEVELOPERS PRIVATE LIMITED
Registered Office :	Block – B, Wankhede Stadium, D Road, Churchgate, Mumbai – 400 020, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	08.04.1988
Com. Reg. No.:	11-46948
CIN No.: [Company Identification No.]	U70100MH1988PTC046948
TAN No.: [Tax Deduction & Collection Account No.]	MUMS37334D / MUMS41594A
PAN No.: [Permanent Account No.]	AAACS5509B
Legal Form :	Private Limited Liability Company
Line of Business :	Subject acts as Real Estate Developers, Builders, Contractors and Promoters.

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 36672
Status :	Satisfactory
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an old and established company engaged in construction activity. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Block – B, Wankhede Stadium, D Road, Churchgate, Mumbai – 400 020, Maharashtra
E-Mail :	shahspl@rediffmail.com
Location :	Rented
Administrative Office :	17, Laxmi Industrial Estate, Hanuman Gally, Lower Parel, Mumbai - 400 019, Maharashtra, India.
Tel. No.:	91 - 22 - 492 8375/5793
Corporate Office :	148, Atlanta 14^th Floor, Nariman Point, Mumbai – 400 021, Maharashtra
Tel. No.:	91-22-56317240
E-Mail :	shahspl@rediffmail.com

DIRECTORS

Name :	Mr. Vikram Chinubhai Shah
Designation :	Director
Address :	28, Capri, 9, Manav Mandir Road, Walkeshwar, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	24.11.1950
Date of Appointment :	08.04.1988
Name :	Mrs. Varsha Vikram Shah
Designation :	Director
Address :	28, Capri, 9, Manav Mandir Road, Walkeshwar, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	20.11.1951
Date of Appointment :	01.01.1993

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mrs. Varsha Vikram Shah	12500
Mr. Vikram Chinubhai Shah	37500

Equity Shares Breakup (Percentage of Total Equity):

Sr No.	Category	Percentage
1	Directors or relative of directors	100.00

BUSINESS DETAILS

Line of Business :

Subject acts as Real Estate Developers, Builders, Contractors and Promoters.

GENERAL INFORMATION

Suppliers :

· Chintaman Plumbing

· Landmark Technique Private Limited

· Desai Construction

· Jagannath S Abhang

· Maniar and Maniar

· K K Joshi and company

· Nidhi Construction

· Parshwanath Distributors

· Shree Ganesh Building Material Suppliers

· Gujarat Sidhi Cement

· Roman Construction Private Limited

Customers :

· Goan Enterprises

· Priyesh Land Development Private limited

· Hill Park Properties and Estate Private limited

· Park securities Private limited

· Shree Kripa Construction

· Jatin D Shah

· Envy

· CBMS Thakkar

· Park Continental Limited

· Pokar enterprises

· Paramount Buildwell Private Limited

No. of Employees :

15

Bankers :

· Oriental Bank of Commerce

Address:Stock Exchange Branch

1, Dr. V B Gandhi Marg, Fort, Mumbai – 400 023

· Standard Chartered Bank

· Kotak Mahindra Primus Limited

· ICICI Bank

Facilities :

SECURED LOANS	31.03.2004 (Rs in millions)
From Oriental Bank of Commerce (secured by hypothecation of stocks and book debts )	0.812
From Standard Chartered Bank (secured by hypothecation of motor Car)	0.214
From Kotak Mahindra Primus limited (secured by hypothecation of motor Car)	0.392
From ICICI Bank (secured by hypothecation of motor Cycle )	0.020
Total	1.438
UNSECURED LOAN	31.03.2004 (Rs in millions)
From Director / Members	2.128
From Others	1.606
Total	3.734

Banking Relations :	Satisfactory
Auditors :
Name :	· Chandrakant Mehta & Associates Chartered Accountants · Saroj Maniar Chartered Accountants Address: 182 A Girgaum Road, Gaiwadi, 1^st floor, Mumbai – 400 004, Maharashtra
Associates/Subsidiaries :	Goodhouse Builders Private Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity shares	Rs.10/- each	Rs. 0.500 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
50000	Equity shares	Rs.10/- each	Rs. 0.500 million

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		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8.668	9.523	8.739
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9.168	10.023	9.239
LOAN FUNDS
1] Secured Loans		0.077	0.269	1.440
2] Unsecured Loans		2.504	2.094	3.734
TOTAL BORROWING		2.581	2.363	5.174
DEFERRED TAX LIABILITIES		0.000	0.000	[0.007]
TOTAL		11.749	12.386	14.406
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.469	0.688	0.931
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.562	7.187	6.299
DEFERREX TAX ASSETS		0.058	0.021	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	8.791	9.299	3.128
	Sundry Debtors	1.718	0.406	7.305
	Cash & Bank Balances	0.199	0.321	0.112
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.138	4.841	10.058
Total Current Assets		14.846	14.867	20.603
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	5.868	9.597	12.672
	Provisions	0.318	0.780	0.755
Total Current Liabilities		6.186	10.377	13.427
Net Current Assets		8.660	4.490	7.176
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		11.749	12.386	14.406

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		1175.011	16219.359	14.706
Other Income		0.000	0.000	0.026
Total Income		1175.011	16219.359	14.732
Profit/(Loss) Before Tax		776.213	796.521	1.202
Provision for Taxation		-	-	0.301
Profit/(Loss) After Tax		776.213	796.521	0.901
Expenditures :
	Opening project Work In progress	0.000	0.000	3.482
	Expenditure on project	0.000	0.000	9.430
	Depreciation	163.762	243.218	0.314
	Interest	46.917	242.647	0.304
	Other Expenditure	188.119	14936.973	0.000
Total Expenditure		398.798	15422.838	13.530

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	66.06	4.01	6.11
Net Profit Margin (PBT/Sales)	(%)	66.06	4.01	8.17
Return on Total Assets (PBT/Total Assets}	(%)	5228.43	5120.67	5.58
Return on Investment (ROI) (PBT/Networth)		84.66	79.46	0.13
Debt Equity Ratio (Total Liability/Networth)		0.95	1.27	2.01
Current Ratio (Current Asset/Current Liability)		2.39	1.43	1.53

LOCAL AGENCY FURTHER INFORMATION

Name of the company	SHAH ANDSHAH DEVELOPERS PRIVATE LIMITED
Presented By	Oriental Bank Of Commerce Stock Exchange Branch, Mumbai – 400 023, Maharashtra
1) Date and description of instrument creating the change	13^th November 2001 No instrument executed Deposit of title deeds of immovable property with the intent to create equitable mortgage
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 1.000 million
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	To secure the due repayment of the cash credit Limits of Rs. 1.000 millions against Book Debts sanctioned by the Bank to the Borrower Company and for interest thereon at the request of the bank, the borrower has deposited the title deeds of immovable property to create equitable mortgage in favour of the bank viz, Shop No. )s) 1, 2, 6, 12, 13, and 15 at Ground floor. Shree Complex, Phase – I , Wadeghar Tauka, kalian District Thane together with all buildings , superstructure, plant and machinery, constructed, in stalled and or to be installed and all accretions thereto to secure all liabilities / Advances under/ in respect of additional / enhanced limits band interest, Costs and other charges payable in term of loaning documents executed by the borrower.
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of interests as may be determined by the bank from time to time and for all costs and other charges payable in terms of the loaning documents till the continuance of the security.
5) Name and Address and description of the person entitled to the charge.	Oriental Bank of Commerce Stock Exchange Branch 1, Dr. V B Gandhi Marg, Fort, Mumbai – 400 023
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA

FIXED ASSETS

· Furniture and fixtures

· Plant and machinery

· Machinery

· Office Equipments

· Typewriter

· Computers

· Motor Cycles

· Motor Car

· BPL Mobile

OTHER INFORMATION:

The Registered Office has been shifted from 148, Atlanta, 14^th Floor, 209 Nariman Point, Mumbai – 400 021, Maharashtra, India to the present w.e.f. 01.06.2007.

The company was incorporated to carry on business as developers builders, contractors & promoters of co-operative societies to deal in real estate business by constructing, altering, extending, improving offices, flats, residential houses, commercial estates, industrial estates, shops, buildings, roads, bridges etc.

The company is engaged in Real Estate Development at various places in Thane and Goa.

The company owns various sites at Thane and Goa.

Several workers are employed for carrying out various site developments.

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.39.29
UK Pound	1	Rs.81.91
Euro	1	Rs.56.96

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		43

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