MIRA INFORM REPORT

Report Date :

06.10.2007

IDENTIFICATION DETAILS

Name :	ARYAN GRANITES AND MONUMENTS PRIVATE LIMITED

Registered Office :	“Subagraha” Flat 1, Ground Floor, 24/13 Balaraman Street, Adayar, Chennai – 600 020, Tamilnadu

Country :	India

Date of Incorporation :	01.06.2001

Com. Reg. No.:	047198

CIN No.: [Company Identification No.]	U14102TN2001PTC047198

TAN No.: [Tax Deduction & Collection Account No.]	CHEA07112A

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturers and Exporters of Granites and Monuments.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	-

Status :	Moderate

Payment Behaviour :	Slow

Litigation :	Clear

Comments :	Subject is an old and established company having moderate track. Company’s profitability is under severe pressure. Payments are reported as slow but correct. The company can be considered for small to mediocre business dealings at usual trade terms and conditions, with slight caution, initially.

LOCATIONS

Registered Office :	“Subagraha” Flat 1, Ground Floor, 24/13 Balaraman Street, Adayar, Chennai – 600 020, Tamilnadu, India
Tel. No.:	91-44-24415515
Fax No.:	91-44-24414081
E-Mail :	Paragon3@vsnl.com
Website :	http://www.aryangranites.com

DIRECTORS

Name :	Mr. Vivek Bassi
Designation :	Whole Time Director
Address :	Flat B Room No. 7, Cedar Park, 4^th Main Road Extension, Kottur garden, Kotturpuram, Chennai – 600 085, Tamilnadu, India
Date of Birth/Age :	12.05.1968
Date of Appointment :	01.06.2001

Name :	Mr. R S Bassi
Designation :	Whole Time Director
Address :	Flat B Room No. 7, Cedar Park, 4^th Main Road Extension, Kottur garden, Kotturpuram, Chennai – 600 085, Tamilnadu, India
Date of Birth/Age :	18.03.1934
Date of Appointment :	01.06.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Mr. Vivek Bassi		95000
Mr. R S Bassi		5000
Total		100000

Category		Percentage of Holding
Directors or relatives of directors		100.0
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Granites and Monuments

Products :

v Granites Rough Blocks

v Monuments

v Slabs

v Tiles

v Other Mineral Products

GENERAL INFORMATION

Bankers :

State Bank of India

Commercial Branch, Chennai – 600 001, Tamilnadu, India

Facilities :


Banking Relations :	Satisfactory

Associates/ Subsidiaries:	Paragon International Line of Business: Trades in Building Slabs, Floor Tiles, and Rough Blocks for different specifications

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 10.00 each	Rs. 10.000 each

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
902700	Equity Shares	Rs. 10.00 each	Rs. 9.027 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Not Available

LOCAL AGENCY FURTHER INFORMATION

Name of the company

ARYAN GRANITES AND MONUMENTS (PRIVATE) LIMITED

Presented By

STATE BANK OF INDIA

COMMERCIAL BRANCH, CHENNAI – 600 001, TAMILNADU, INDIA

1) Date and description of instrument creating the change

28.04.2004

Agreement of Loan for overall Limit in Form C1
Agreement of Hypothecation of Goods and Assets in Form C2
Agreement of Pledge of Goods and Assets in Form C3
Letter Regarding the Grant of Individual Limits with in the Overall Limit in Form C5
Creation of Equitable Mortgage by way of Deposit of Title Deeds.

2) Amount secured by the charge/amount owing on the securities of charge

All dated 28.04.2004 and relates to one and same charge Rs. 40.000 millions

Nature of Facility	Rs. in Millions
Cash Credit / EPC/ FBD	5.000
FBD Drawn Under Letter of credit	15.000
Term Loan	15.000
Letter of Credit (FLC)	5.000
Total	40.000

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 present and future goods, book debts and all other movable assets of the Company including documents of title to goods, outstanding moneys, receivables including receivables by way of cash assistance and / or cash incentives under the cash incentive scheme or any other scheme, claims, including claims by way of refund of customs/ excise duties under the duty draw back credit scheme or any other scheme, bills, invoices, documents, contracts, insurance, policies, guarantee, engagements, securities, investments, and rights uncalled capital and all machinery present and future machinery belonging to or in the possession or under the control of the Company wherever lying stored and kept and whether in possession of the Company borrower or of the bank or of any third party whether in India or elsewhere throughout the world (including all such goods, other movable assets as may be in course of shipment transit or delivery shall stand hypothecated to the bank by way of first charge.

Creation of Equitable Mortgage of Company’s all that Piece and Parcel of Land Comprised in Nanja Wet Lands situated at No. 14, Mangalam Village, Madurantakam Taluka, Kancheepuram District with in the sub-Registration District of Uthiramerur and Registration District of Kancheepuram Survey No. 96/48 of 4B, 4C, 5A, 5B, 5D, 93/1A, 2A, 2B, 92/1, 2,96/5C, 6A, 7A, 92/2, 96/2 and 96/C (More fully Described in the Letter of Evidencing Title Deed)

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of Interest and other terms and conditions as per the Agreement

Margin: Raw Materials, stock-in-progress, Finished Goods, Book Debts/ Receivables: 25%

5) Name and Address and description of the person entitled to the charge.

State bank of India

Commercial Branch, Chennai – 600 001

Website details attached:

Subject is a quality manufacturer cum exporter of granite products exclusively for the international marketplace. Aryan mines granite rough block, manufactures Granite Monuments and Tombstones and also trades in Building slabs, Tiles and other custom Granite products.

Subject takes pride in its exceptional service, large inventory of rough blocks, reliable delivery, competitive prices, customer assistance and education and total dedication to its trade. Special attention is also paid to artistic quality and details.

Offering blocks from the finest quarries in India, subject has an extensive assortment of colours handpicked by its well-qualified and experienced team who are in this industry or over 10-15 years. Its special relationship with the quarry owners allows it to pick the best material for its clients. Rich colours, consistency and availability of large quantities and sizes make subject well suited for all purposes

Technology, Quality, Service. Three words that project their approach to business. Very Indian in its value-driven nature of transactions, subject believes that a business relationship is to be cherished and built. A manufacturer and exporter of high quality granite products, Subject draws inspiration from the rich traditions of India, especially that of the art of crafting monuments.

Subject mines Granite Rough blocks, manufactures Granite Monuments and Tombstones. It also trades in Building Slabs, Tiles and other custom granite products. Subject is known, in the world market, for its exceptional service, completely reliable delivery, competitive prices, a large inventory of rough blocks, and total customer satisfaction. Subject is fully committed to the trade and takes every effort to produce products of a very high quality. It also maintains a high degree of craftsmanship and pays special attention to artistic details and quality.

Subject is technology driven, led by its Mr. Vivek Bassi, who has a Masters in International Business from the UK after a B.Tech degree, and has 10 to12 years of experience in the granite industry. He follows the same road as his father Mr. R.S. Bassi who has over 40 years of experience in the same industry.

Machinery

Subject has two factories, both near Chennai, in Tamilnadu. One, located about 30km away, has a production capacity of 7 containers a month. It has a workforce of 80, and has well qualified geologists among them. Since the factory is located on the granite belt, there is no problem of supply of raw material.

The second factory is located about 70km away and has a production capacity of 10 containers. This factory has started its production

The workforce is expected to comprise of about 100 people .All machines are imported from Hensel Buckhart and Ficket Wintering, Germany; the world's leading manufacturers of granite cutting and polishing machinery.

Quarries

Subject offers blocks from the finest quarries in India, and has an extensive assortment of colours, carefully chosen by its highly qualified team of experts. Longstanding relationships with quarry owners allow Subject to choose only the best material for its customers.

Subject has its own quarry that produces high quality granite called 'Lavender Blue'.

'Indian Aurora' is the latest addition to Subject's extensive collection of fine quality granite

Slabs

Subject's subsidiary Paragon International trades in Building Slabs, Floor Tiles, and Rough Blocks for different specifications. Paragon exclusively represents two European companies for their entire requirement of blocks, slabs and tiles.

Paragon is very strong in sourcing high quality rough blocks, mainly for the international market. Slabs are offered starting from a minimum size of 2800 X 1500 mm and of thickness 20 mm, 30 mm and 40 mm

Tiles

Paragon is very strong in sourcing high quality rough blocks, mainly for the international market

Monuments

Man creates monuments to acknowledge a person, a deed, a place…Over the centuries, the craft of sculpting monuments has evolved into an art that has seen so many exceptional artists and artisans.

Subject creates and supplies monuments to the world market and has supplied to clients from Australia, Canada, Belgium, Holland, Germany, Japan, Malaysia, UK and USA. Subject believes in quality and complete customer satisfaction and therefore encourages on-site quarry and block inspections and invites its customers to approve their materials before shipment.

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. 39.43
UK Pound	1	Rs. 80.44
Euro	1	Rs. 55.66

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
TOTAL		27

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

MIRA INFORM REPORT

Unit