MIRA INFORM REPORT

Report Date :

20.10.2007

IDENTIFICATION DETAILS

Name :	HIMALAYA GRANITES LIMITED
Registered Office :	3-B Riaz Garden, Old No. 12, New No. 29, Kodambakkam High Road, Nungambakkam, Chennai – 600034, Tamilnadu, India
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	11.12.1987
Com. Reg. No.:	18-015161
CIN No.: [Company Identification No.]	L13206TNN1987PLC015161
TAN No.: [Tax Deduction & Collection Account No.]	CHEH00318D
Legal Form :	A public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Polished Granite Monuments

RATING & COMMENTS

MIRA’s Rating :

B

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 :	USD 825600
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profit margin is under severe pressure. Trade relations are fair. Payments are reported as slow but correct. However, the company can be considered normal for business dealings at usual trade terms & conditions.

LOCATIONS

Registered Office :	3-B, Riaz Garden, Old No. 12, New No. 29, Kodambakkam High Road, Nungambakkam, Chennai – 600 034, Tamilnadu, India
Tel. No.:	91-44-28230078 / 79/ 80
Fax No.:	91-44-28230088 / 52110788
E-Mail :	accounts@himalayagranites.com hgl@vsnl.com himgran@eth.net
Website :	http://www.himalayagranites.com
Factory 1 :	Panchalam Village, Opp. to Ponds India Limited, Melpettai Post, Tindivanam – 604 307, Tamilnadu.
Tel. No.:	91-4147- 222892
Fax No.:	91-4147-222981

DIRECTORS

Name :	Mr. Shiv Prakash Mittal
Designation :	Chairman Cum Managing Director
Address :	2^nd Floor, New B.K.Market, 16 A,Shakespezar Sarani, Kolkota, West Bengal
Tel. No:	91-33-24614285
Date of Birth/Age :	7^th April 1949
Date of Appointment :	13^th September 1991
Name :	Mr. Rajesh Mittal
Designation :	Director
Address :	2^nd floor, New B.K.Market, 16 A,Shakespezar Sarani, Kolkota, West Bengal
Tel. No:	91-33-24798279
Date of Birth/Age :	10^th November 1962
Date of Appointment :	11^th September 1991
Name :	Mr. Saurabh Mittal
Designation :	Whole Time Director
Address :	F-4, Dhawandeep Building, Janter Manter Lane, New Delhi
Tel. No:	91-11-26262830
Date of Birth/Age :	6^th October 1975
Date of Appointment :	1^st November 1996
Name :	Mr. Ashok Sharma
Designation :	Director
Address :	B-3/73, Ashok Vihar Phase II, New Delhi
Tel. No.:	91-11-27464584
Date of Birth/Age :	31^st January 1969
Date of Appointment :	30^th October 2003
Name :	Mr. Sudhir Kumar Jena
Designation :	Director
Address :	E-5 Harnya, 67 Greenways Road, Chennai – 600028, Tamilnadu
Tel. No.:	91-44-24951679
Date of Birth/Age :	17^th April 1963
Date of Appointment :	31^st March 2000
Name :	Ms. Janaki Venkatraman
Designation :	Director
Address :	Flat 4-A Fifth Floor Tolly tower, 140/4A, NSC Bose Road, Kolkata, West Bengal
Tel. No,:	91-33-24719240
Date of Birth/Age :	4^th August 1967
Date of Appointment :	31^st March 2000
Name :	Mr. Beni Gopal Saraf
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Pawan Kumar Thakur
Designation :	Company Secretary
Name :	Mr. Ramesh Kumar HAritwal
Designation :	Managing Director & CEO

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Toshita Fiscal Services Limited	15200	0.51
Calcutta Stock Exchange Association	16500	0.55
Uniply Insutries Private Limited	17000	0.57
Kenwood Products Private Limited	19750	0.66
Industrial Development Bank of India	20200	0.67
Green Tea Industries Private Limited	21000	0.70
Shoban Mittal	27500	0.92
Saurabh Mittal	37500	1.25
Monet Securities Private Limited	74300	2.47
Naginimara Timber Industries Private Limited	90800	3.02
Lilly Exporter Private Limited	98900	3.29
SM Management Private Limited	102317	3.40
Shiv Prakash Mittal	121750	4.05
Karuna Mittal	128200	4.27
Indistock Private Limited	1377	0.05
M Prasad Company Limited	142448	4.74
Santosh Mittal	184700	6.15
Gyan Trader Private Limited	289958	9.65
Worthy Plywood Limited	377333	12.56
Rajesh Mittal	619300	20.61

BUSINESS DETAILS

Line of Business :	Manufacturer of Polished Granite Monuments
Products :	Granite Monuments – 2516.90
	Dimensional Granite Blocks – 2516.11
Exports to :	USA, UK, Germany, Holland, Austria, Canada, Slovenia, Denmark, Belgium, New Zealand, Australia, Spain, Italy and France.
Terms :
Selling :	L/C or sight terms.
Purchasing :	L/C (60 days) terms

PRODUCTION STATUS

Particulars	Licensed Capacity	Installed Capacity	Actual Production
Granite Monuments	26500 sq. mtr.	26500 sq. mtr	11334.96 sq. mtr
Dimensional Granite Blocks	Not Applicable	Not Ascertainable	6.308 (CBM)

GENERAL INFORMATION

Customers :

Wholesalers.

No. of Employees :

410

Bankers :

State Bank of India, 86, Rajaj Salai, Chennai 600 001, Tamilnadu.

Facilities :

Secured Loans	31.03.2005
Term Loans from Financial Institutions
Industrial Development Bank of India	23.175
State Bank of India (SBI) FCNR	2.223
State Bank of India (SBI)	43.704
Unsecured Loans
From Corporate Bodies	3.285

Banking Relations :
Auditors :	D. Dhandaria & Company Chartered Accountants
Address :	Thana Road, Tinsukia, Assam
Associates/Subsidiaries :	· Greenply Industries Limited 16A Shakesphere Sarani, New B.K.Market, Kokata – 700071 - Incorporated in the year 1984 is at present engaged in the manufacture of Plywood which is sold under the brand name of ‘Greenply”. The plant is located at Tizit in Nagaland. · Worthy Plywoods Private Limited - Incorporated in the year 1985, is engaged in the manufacture of veneer having its plant at Kriparampur, Dist. 24 Paraganas in West Bengal. · Dibang Valley Timber Trade Private Limited - This company was incorporated in the year 1978. The company is engaged in manufacture and market Plywood and Sawn Timber Beams. The plant of the company is located at Bolung (Roing) in Dist. Dibang Valley, Arunachal Pradesh. · Prime Properties Limited
Parent Company :	Green Group Industries

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
4,000,000	Equity Shares	Rs. 10/- each	Rs. 40.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,010,000	Equity Shares	Rs. 10/- each	Rs.30.100 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		30.100	30.100	30.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		176.300	190.100	108.600
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		206.400	220.200	138.700
LOAN FUNDS
1] Secured Loans		79.300	86.000	69.100
2] Unsecured Loans		0.000	1.700	3.300
TOTAL BORROWING		79.300	87.700	72.400
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		285.700	307.900	211.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		67.600	80.800	98.300
Capital work-in-progress		0.000	0.100	0.000
INVESTMENT		32.500	20.400	18.300
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	55.300	50.400	50.300
	Sundry Debtors	29.800	31.900	33.900
	Cash & Bank Balances	7.500	11.400	7.500
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	129.700	148.900	32.900
Total Current Assets		222.300	242.600	124.600
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	27.800	25.100	22.500
	Provisions	8.900	10.900	7.700
Total Current Liabilities		36.700	36.000	30.200
Net Current Assets		185.600	206.600	94.400
MISCELLANEOUS EXPENSES		0.000	0.000	0.100
TOTAL		285.700	307.900	211.100

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		131.500	157.200	203.000
Other Income		11.000	92.000	3.200
Total Income		142.500	249.200	206.200
Profit/(Loss) Before Tax		(13.100)	84.000	3.400
Provision for Taxation		(0.700)	(0.900)	0.700
Profit/(Loss) After Tax		(12.400)	84.900	2.700
Expenditures :
	Cost of Goods Sold	0.000	0.000	0.000
	Miscellaneous Expenses	8.700	2.500	4.600
	Administrative Expenses	14.000	16.700	18.200
	Raw Material Consumed	52.500	59.900	89.300
	Purchases made for re-sale	0.000	0.000	0.000
	Consumption of stores and spares parts	0.000	0.000	0.000
	Increase/(Decrease) in Finished Goods	0.000	0.000	0.000
	Salaries, Wages, Bonus, etc.	30.900	31.500	31.000
	Managerial Remuneration	0.000	0.000	0.000
	Payment to Auditors	0.000	0.000	0.000
	Interest	10.400	8.200	9.100
	Insurance Expenses	0.000	0.000	0.000
	Power & Fuel	5.600	5.900	6.000
	Depreciation & Amortization	13.100	17.800	13.000
	Other Expenditure	21.600	23.100	27.300
Total Expenditure		156.800	165.600	198.500

QUARTERLY RESULTS

PARTICULARS	30.16.2007
Type	1 Qtr.
Sales Turnover	36.600
Other Income	2.400
Total Income	39.000
Total Expenditure	36.200
Operating Profit	2.800
Interest	2.700
Gross Profit	0.100
Depreciation	2.800
Tax	0.100
Reported PAT	(2.700)

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt Equity Ratio	0.39	0.45	0.55
Long Term Debt Equity Ratio	0.20	0.21	0.24
Current Ratio	3.03	2.41	1.72
TURNOVER RATIOS
Fixed Assets	0.61	0.73	0.98
Inventory	2.49	3.12	3.80
Debtors	4.26	4.78	7.15
Interest Cover Ratio	(0.26)	0.94	1.37
Operating Profit Margin (%)	7.91	16.22	12.56
Profit Before Interest and Tax Margin (%)	(2.05)	4.90	6.16
Cash Profit Margin (%)	0.53	12.53	7.73
Adjusted Net Profit Margin (%)	(9.43)	1.21	1.33
Return on Capital Employed (%)	(0.91)	2.97	5.84
Return on Net Worth (%)	(5.81)	1.06	1.96

LOCAL AGENCY FURTHER INFORMATION

History :

Incorported as a private limited, Himalaya Granites (HGL) was promoted by M P Valusami, M Vijan, M P Balkrishna, S Susindran and R Gunasekaran to set up a 100% export-oriented granite-processing unit. However, the unit was sold to S P Mittal and R Mittal of the Greenply group in 1991. Commercial production of monuments, tombstones, and memorials started form Aug.'91. HGL was then converted into a public limited company and given its present name in 1994.

 The company tapped the capital market in Dec.'94 to fund the expansion of its existing unit and to implement a backward integration project to acquire and develop granite quarries and to procure quarrying and material handling equipment. 

 Its products are exported to the UK, the US, Germany, Japan, Canada, Ireland, etc. HGL is the winner of the CAPEXIL Certificate of Merit for two successive years (1992-93 and 1993-94). The company has also started exports of rough granite blocks from its own quarries. 

 In 1997-98 the company increased its installed capacity of Granite Monuments by 14500 Sq Mtrs there by taking the installed capacity to 26500 Sq Mtrs.

The company was converted into a Public Limited Company pursuant to a special resolution passed at the Extra-ordinary General Meeting of the company and a new Certificate of Incorporation consequent upon change of name of the company to its present name was issued by Registrar of Companies, Tamil Nadu on 21^st March, 1994.

The company tapped the capital market in December, 1994 to fund the expansion of its existing unit and to implement a backward integration project to acquire and develop granite quarries and to procure quarrying and handling equipment.

Its products are exported to the UK, USA, Germany, Japan, Canada, Ireland, etc. The company is the winner of the CAPEXIL Certificate of Merit for two successive years (1992-93 and 1993-94). The company had also started exports of rough granite blocks from its own quarries.

REVIEW OF OPERATIONS:

During the year under review the export sales has come down due to sudden decline in the overall demand

of rough granite blocks internationally. The Company is taking various steps to enhance performance and

profitability. Your directors are confident of achieving higher turnover and profit in times to come. Your

Directors are pleased to inform you that your Company has been accorded the Status of One Star Export

House in accordance with the provisions of the Foreign Trade Policy, 2004-09.

FUTURE OUTLOOK:

During the year your directors expect better exports of monuments and Dimensional Granites Blocks.

Further the Company is also taking adequate measures for controlling the cost and expenses.

Fixed Assets :

· Land & Developments

· Quarry Land & Developments

· Building (Factory)

· Building (Others)

· Plant & Machinery

· Vehicles

· Electrical Fitting

· Furniture & Fitting

· Office Equipment

· Tools & Equipments

Attached Web Details

Himalaya Granites produces impeccably cut and polished granite monuments, memorials and tombstones from the finest Indian granites available. Himalaya Granites has earned International reputation as the Monument Masters for supplying the world markets including USA, UK, Germany, Holland, Austria, Canada, Slovenia, Denmark, Belgium, New Zealand, Australia, Spain, Italy and France with a range of Black, Black Galaxy, Dakota, Himalaya Blue, Indian Juparana, Red multi-color, Viscount White, Bash Paradiso, Steel Grey, Kerala Green, Kashmir White, Raw Silk , Seaweed Green, NH-Red, Ruby Red,Vizag Blue,Orissa Blue,Paradiso Classico,Ghibli and Colombo Juparana granite stones.

Himalaya's success rests on its dedicated team of highly skilled specialists. The developmental programmes are an ongoing process at Himalaya, which provides competitive perspective in terms of quality and expectations of the world market. The company's creative group, production team and stone masters work in unison to produce the timeless songs in stone. Any design, any stone, any texture, has never posed a problem to the dedicated specialists. The impeccably finished products fully justify the mission of Himalaya Granites which is: to pay rich homage and tribute to the transcendent qualities of human spirit. The ultra modern machinery has given an added advantage in delivering the finest finish to the most demanding customers around the world.

The well experienced production staff and the highly sophisticated machinery with state-of-the-art technology from Eisenwerk Hensel Bayreuth, Germany, makes any kind of intricate monuments to the most accurate tolerances, specifications and drawings of the customers Himalaya incorporates advanced technology with unmatched quality and service. Strict quality control methods are employed to produce world class monuments using granites. Himalaya, today, has emerged as one of the most sought after companies in the world to manufacture, finish and deliver Monument masterpieces.

Himalaya has a very strong quarrying division. Some of the finest granites are being quarried from Himalaya's quarries spread all over India. Their activities include Blocks trading of many other popular Indian granites apart from their own quarrying sources.

Himalaya Granites factory is located at Tindivanam, roughly 120 kms from Chennai airport, approximately 2 hrs by road

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.39.57
UK Pound	1	Rs.81.01
Euro	1	Rs.56.35

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		39

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