MIRA INFORM REPORT

Report Date :

19.10.2007

IDENTIFICATION DETAILS

Name :	GIRDHAR INTERNATIONAL PRIVATE LIMITED
Registered Office :	F -16, Udhog Nagar Peera Garh, New Delhi – 110 041
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	31.03.1998
Com. Reg. No.:	55-93040
CIN No.: [Company Identification No.]	U18101DL1998PTC093040
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of handicraft Paraffin Wax Candles.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 166244
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having fine track. Available information indicates high financial responsibility of the company. Trade relations are fair. 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. It can be regarded as a promising business partner in a medium to long – run.

LOCATIONS

Registered Office :	F -16, Udhog Nagar Peera Garh, New Delhi – 110 041, India
Tel. No.:	91-11-25531678 / 25473121
Mobile No.:	91-9810078132
Fax No.:	91-11-25531678 / 25505467 / 25477026
E-Mail :	rajkmr@mantraonline.com s.k.dhingra@vsnl.com
Website :	http://girdharcandles.com
Administrative office:	K -2, Udhyog Nagar, Peera Garhi, Nrew Delhi – 110 041, India
Tel. No.:	91-11-25477431 / 25475058
Fax No.:	91-11-25473121
E-Mail :	info@girdharcandles.com

DIRECTORS

Name :	Mr. Raj Kumar Mahajan
Designation :	Managing Director
Address :	M -129, Vikas Puri, Delhi -110 018, New Delhi
Date of Birth/Age :	01.01.1965
Date of Appointment :	31.03.1998
Name :	Mr, Lokesh Kumar Mahajan
Designation :	Director
Address :	M -129, Vikas Puri, Delhi -110 018, New Delhi
Date of Birth/Age :	26.03.1972
Date of Appointment :	31.03.1998

KEY EXECUTIVES

Name :	M/s Ajay K Goyal and Company
Designation :	C -5A/284, Janak Puri, New Delhi – 110 058
Email:	akgfcs4049@yahoo.co.in
Mobile No.:	91-9810398621

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Raj Kumar Mahajan		275000
Lokesh Kumar Mahajan		225000
	Total	500000

Equity Shares Breakup (Percentage of Total Equity):

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

BUSINESS DETAILS

Line of Business :	Manufacturer of handicraft Paraffin Wax Candles.
Products Range:	Candles in various : - Shapes and Sizes - Finishes and Designs - Colors and Perfumes Highlights: Shapes and Sizes : - Square Pillars - Round Pillars - Rectangular Pillars - Oval Pillars etc. - Round Balls - Spirals

PRODUCTION STATUS

Particulars	Unit	Actual Production
Candles	Pcs	20000

GENERAL INFORMATION

Customers :	· Trinity Group · ZODAX
Bankers :	· State Bank of India · Punjab National Bank · Canara Bank Address: 1/64, Kirti Nagar, New Delhi – 110 015, Delhi, India E Mail: lks_123sharma@hotmail.com · Bank of India Address: SSI Branch, Udyog Nagar, New Delhi

Banking Relations :	Satisfactory
Auditors :
Name :	M/s S K Dhingra and Company Chartered Accountants
Address :	501 Kirti Shikhar, District Center, Janakpuri, New Delhi – 110 058
Mobile No.:	91-9810398621
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity shares	Rs. 10/- each	Rs. 10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity shares	Rs. 10/- each	Rs. 5.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		5.000	5.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		36.561	6.745
4] (Accumulated Losses)		0.000	0.000
NETWORTH		41.561	11.745
LOAN FUNDS
1] Secured Loans		0.000	0.000
2] Unsecured Loans		12.000	21.418
TOTAL BORROWING		12.000	21.418
DEFERRED TAX LIABILITIES		0.251	0.251
TOTAL		53.812	33.414
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.572	15.808
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	34.427	15.974
	Sundry Debtors	5.089	0.000
	Cash & Bank Balances	12.501	2.309
	Other Current Assets	3.733	2.785
	Loans & Advances	19.964	1.781
Total Current Assets		75.714	22.849
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	16.902	1.609
	Other Liabilities	28.919	4.023
Total Current Liabilities		45.821	5.632
Net Current Assets		29.893	17.217
MISCELLANEOUS EXPENSES		0.347	0.389
TOTAL		53.812	33.414

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005
Sales Turnover [including other income]		122.134	97.439
Total Income		122.134	97.439
Profit/(Loss) Before Tax		30.665	5.220
Provision for Taxation		0.647	1.726
Profit/(Loss) After Tax		30.018	3.494
Expenditures :
	Financial charges	0.437	0.748
	Depreciation	2.890	0.826
	Other expenditure	84.815	89.071
Total Expenditure		88.142	90.645

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005
PAT / Total Income	(%)	24.57	3.58
Net Profit Margin (PBT/Sales)	(%)	25.10	5.35
Return on Total Assets (PBT/Total Assets}	(%)	30.88	13.50
Return on Investment (ROI) (PBT/Networth)		0.73	0.44
Debt Equity Ratio (Total Liability/Networth)		1.39	2.30
Current Ratio (Current Asset/Current Liability)		1.65	4.05

LOCAL AGENCY FURTHER INFORMATION

Corporation identity number or foreign company registrations number of the company	U18101DL1998PTC093040
Name of the company	GIRDHARS INTERNATIONAL (P) LIMITED
Address	F -16 Udhyog Nagarpeera Garhi, New Delhi – 110 041, Delhi , India
This Form is for	Creation of charge
Type of Charges	Movable property
Particular of the charge holder	Canara Bank Address: 1/64, Kirti Nagar, New Delhi – 110 015, Delhi, India E Mail: lks_123sharma@hotmail.com
Nature or description of the instrument creating charge	Hypothecation agreement for packing credit advances and agreement regarding collateral security machinery and vehicles.
Date of the instrument creating charge	23.01.2007
Amount Secure by the charge	Rs. 10.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of interest: 8.5% p.a. or at such other rates as may be specified by the bank from time to time. Terms of Repayment: Repayable in 48 monthly installments of Rs. 12500 each commencing from February 2007 Margin: Margin 25% Extent ad operation of the charge: 100% Others: The above is to secure PC limit of Rs. 10.000 millions sanctioned to the company
Short particulars of the Property charged	Hypothecation of paid stocks of raw material, work in process, finished goods, stores and spares and all plant and machinery, spares and stores, vehicle tools and accessories, computer, furniture and fixture of the company stored / to be stored at F -16, Udyog Vihar, Rohtas Road, Peera Garhi, New Delhi or at such other place including those in transit.

Name of the company

GIRDHARS INTERNATIONAL PRIVATE LIIMTED

Presented By

Bank of India, SSI Branch, Udyog Nagar, New Delhi

1) Date and description of instrument creating the change

Agreement of hypothecation of Movable Machinery and Plant dated 14.05.2004

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

Rs. 20.000 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 all movable machinery and plant – both present and future whether installed or not or whether lying loose or in cases at site or in transit or which may at any time during the continuance of this security be installed or lying loose or in case or being in or upon or about borrower’ s premises c/ Godown at New Delhi or Wherever else the same may be held by any party any where to the order or disposition of the borrower or in course of transit to the borrower

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

The above is to secure all amounts payable by the borrower under following credit facilities together with interest @ 4.25% p.a at monthly rest or at such other rate(s) as any from time to time be fixed by t5he bank And ALL other costs, charges, expenses, etc

Particulars	(Rs. in millions)
PCL	6.000
FBP/ FBN	10.000
Guarantee	5.000
L/C (inland / Foreign) DP/DA 90 days	5.000
Maximum	20.000

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

Bank of India

Address: SSI Branch, Udyog Nagar, New Delhi

WEBSITE DETAILS:

The company is a well professionally managed and extremely organized company are the leading established renowned Indian manufacturer of undisputed classic variety of wax candles mainly for exports from its factories located in Delhi only.

Product Ranges : A brief profile

Candles in various:

- Shapes and Sizes

- Finishes and Designs

- Colors and Perfumes

Highlights :

Shapes and Sizes :

- Square Pillars

- Round Pillars

- Rectangular Pillars

- Oval Pillars etc.

- Round Balls

- Spirals

Finishes :

- Solid Wax Finish

- Molten Finish

- RusticFinish

- Graphics

- Embossed Candles

- Debossed Candles

- Metal Embossed

New Finish

- Crackle finish

- Linen finish

Colors and Perfumes - Every Possible Range can also offer Candles with Metal Stands

All raw materials are imported viz. Wax , Colors , Perfumes etc.

Manufacturing Base :

A well equipped, organized and fully air-conditioned unit with knowledgeable production staff. The production capacity is around 20,000 Pcs. per day.

Machines:

Since they manufacture the handicraft wax candles so manpower is more than machine power. So there are 20 machines, which are well enough to meet their requirements.

Packing :

- Corrugate sheet wrapped around to protect the edges well.

- Jute string knotted for gift packing.

- Warning instructions stickers at the base of candle .

- One piece goes in one inner box.

- No. of inner box / master carton varies upon the volume and weight of candle.

- Additional packing of bubble sheet / polythene pack / thermocol cutting etc. if required

- Stickers / logo / tags etc. on the candles if provided by the customers.

They take great care for the packing and thus their packing scores the highest in the term of customer satisfaction.

· Prices are US$ / FOB.

· They are thoroughly methodical with regards to sampling .

They score on attractive final display packing of all their product, as the highest in terms of the customer satisfaction.

They are entirely capable to produce any specific quality of wax candles as per the specifications of their buyers and to deliver the same in assigned delivery schedules.

Clients : A Preview

They deal with highly reputed, renowned and largest customers in U.S.A., U.K., Canada, France, European Union, Australia.

Fairs :

They participate twice in the year in one of the biggest shows of the handicrafts in Frankfurt , namely : TENDENCE and AMBIENT and meet their present and prospective customers.

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.39.79
UK Pound	1	Rs.81.62
Euro	1	Rs.56.98

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	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		60

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