MIRA INFORM REPORT

Report Date :

25.02.2008

IDENTIFICATION DETAILS

Name :	ASHOK GRANITES LIMITED
Registered Office :	4/35, Bharathi Street, Swarnapurai, Salem – 636004, Tamilnadu
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	13.11.1991
Com. Reg. No.:	18-7127
CIN No.: [Company Identification No.]	U14102TZ1991PLC007127
TAN No.: (Tax Deduction & Collection Account No.)	CHEA08095D
Legal Form :	Closely held public limited liability company.
Line of Business :	Manufacturers, quarry owners and exporters of cut and polished granite slabs and monuments

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 530000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	4/35, Bharathi Street, Swarnapurai, Salem – 636004, Tamilnadu, India
Tel. No.:	91-427-2447645/2448490/ 2345456
Fax No.:	91-427-2446223/ 2448744
E-Mail :	ashok@md3.vsnl.net.in, gtpho@sancharnet.in
Factory :	60/4A, Vellakkalpatty, Chetichavadi, Omalur, Salem - 636012, Tamilnadu, India
Tel. No.:	91-427-2335020 / 2345456
Fax No.:	91-427-2345223
E-mail :	ashok2k@eth.net

DIRECTORS

Name	Ms. Muthusamy Baby Saroja
Designation	Director
Address	134 Manicakavasagam Street, Balaji Nagar, Fairlands, Salem – 636016, Tamilnadu
Date of Birth :	15.12.1954
Date of Appointment	13.11.1991
Name	Mr. Appichi Mani
Designation	Director
Address	1/251 Thirumoorlar Street, P & T Colony, Salem – 636016, Tamilnadu
Date of Birth	18.07.1956
Date of Appointment	05.05.1995
Name	Mr. A Paramasivam
Designation	Director
Address	2-157-2, D 1, Kumaran Salai, Salem – 636005, Tamilnadu, India
Date of Birth	03.04.1945
Date of Appointment	05.05.1995
Name	Mr. D. Krishnan
Designation	Whole Time Director
Address	Old No. 2/65, B3, New No. 129/5, 11^th cross, Silvaya Nagar, Alagapuram, Salem-636016, Tamilnadu, India
Date of Birth	30.07.1967
Date of Appointment	01.02.1998

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. M Balakrishnan	20000
Ms. M Baby Saroja	84100
Mr. S Manickam	75100
Mr. D Krishnan	25100
Mr. M P Thangavel	37700
Mr. A Mani	10100
Mr. S Muthurajan	422600
GTP Exports Private Limited	35000
Mr. M Ashok Raj	7000
Mr. M Ramya	7500
Ms. M Divya	7500
Mr. T P Nagarajan	10000
Mr. S Ravichandran	25000
Mr. P Duraisamy	5000
Mr. S Kannammal	5000
Mr. K Tamil Selvi	10000
Mr. P Giridharan	20000
Mr. P Nedunchelian	10000
Mr. S S Muthuvelu	10000
Mr. M K Duraisamy	80000
Mr. P Rajamanickam	30000
Mr. N. Subramaniam	5000
Mr. S Rajendra Kumar	10000
Mr. R Rajamanickam	5000
Mr. M Ramasamy	5000
Mr. V Gunasekaran	20000
Mr. R Silvasubramanian	10000
Mr. K Chinnusamy	25000
Mr. R Sundaram	25000
Mr. A Paramsivam	10000
Mr. A Kalaiselvan	10000
Mr. S. Alagsan	10000
Mr. J Jayasingh	10000
Mr. R N Duraisamy	10000
Mr. M V Venkatachalam	15000
Mr. A Srinivasan	18300
Mr. K Appichi Gounder	50000
Mr. K Venkatachalm	15000
Mr. P Balasubramianiam	25000
Mr. S Sundaram	25000
Mr. M Sivakumar	20000
Mr. A Muthu Gounder	30000
M Sellammal	20000
Mr. A Kaliammal	30000
Mr. P Balasubramani	60000
Mr. S Pavayammal	60000
Mr. K Kamalakkam	20000
Mr. Ichhubhai R Parmer	20000
Total	1500000
Equity Share Break-up	Percentage of Holding
Bodies Corporate	3.00
Directors or relatives of the Directors	60.00
Others top fifty shareholders	37.00
Total	100

BUSINESS DETAILS

Line of Business :

Manufacturers, quarry owners and exporters of cut and polished granite slabs and monuments

Products :

v Granite

v Monuments

v Slabs

Product Description	ITC Code
Cut and Polished Granite Slabs and Monuments	251612.02

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Granite Monument	Qty/Sq. ft	2,44,800	157806

GENERAL INFORMATION

Suppliers :

v Grantools Private Limited

v Stay Sharp Diamond Tools Private Limited

No. of Employees :

Around 2200

Bankers :

Karnataka Bank Limited

Divya Towers, For Main Road, Salem – 636001, Tamilnadu, India

Karnataka Bank Limited

Registered and Head Office : P.B. No.599, Mahaveera Circle, Kankandy, Mangalore-575002, Karnataka, India

Facilities :

Secured Loan

(figures are in Rs. millions)

	2004	2003
From Karnataka Bank Limited
Export Packing Credit Limit (secured by equitable mortgage of the immovable properties of the company and by hypothecation of stocks, consumables, spares, plant and machinery, book debts both present and future and guaranteed by the Directors)	7.500	4.400
Post Shipment Credit (secured by hypothecation of relevant Export Bills)	79.726	74.059
Total	87.226	78.459

Banking Relations :	Satisfactory
Auditors :	Mr. Bala & Sakthi, Chartered Accountant, 7AA Ramakrishna Road, Sundaram Nursing Home Building, Salem – 636007, Tamilnadu, India
Tel. No.:	91-427-2210676/2212718
Subsidiaries :	Granite and Tombstone Products, Inc

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs. 10/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs. 10/- each	Rs. 15.000 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	15.000	15.000	15.000
2] Share Application Money	0.000	0.000	0.000
3] Reserves & Surplus	119.266	112.776	109.346
4] (Accumulated Losses)	0.000	0.000	0.000
NETWORTH	134.266	127.776	124.346
LOAN FUNDS
1] Secured Loans	115.228	100.268	65.339
2] Unsecured Loans	0.000	0.000	0.000
TOTAL BORROWING	115.228	100.268	65.339
DEFERRED TAX LIABILITIES	11.851	7.366	5.637
TOTAL	261.345	235.410	195.322
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	83.906	91.684	45.009
Capital work-in-progress	0.000	0.000	55.000
INVESTMENTS	3.098	1.098	0.098
DEFERREX TAX ASSETS	0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
Inventories	42.021	58.612	62.161
Sundry Debtors	110.408	74.929	65.151
Cash & Bank Balances	5.652	2.803	1.785
Loans & Advances	29.543	16.912	15.924
Total Current Assets	187.624	153.256	145.021
Less: CURRENT LIABILITIES & PROVISIONS
Current Liabilities	11.709	9.312	49.563
Provisions	1.574	1.316	0.243
Total Current Liabilities	13.283	10.628	49.806
Net Current Assets	174.341	142.628	95.215
TOTAL	261.345	235.410	195.322

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		252.077	202.527	184.035
Other Income		0.255	0.539	0.090
Total Income		252.332	203.066	184.125
Profit/(Loss) Before Tax		12.555	5.861	7.271
Provision for Taxation		[2.905]	(1.027)	0.378
Profit/(Loss) After Tax		15.460	6.888	6.893
Export Turnover		252.077	202.527	NA
Total Imports		NA	NA	NA
Expenditures :
	Raw Material Consumed	104.135	79.101	81.167
	Consumption of stores and spares parts	23.209	22.964	26.993
	Increase/(Decrease) in Finished Goods	13.996	6.946	(9.897)
	Salaries, Wages, Bonus, etc.	33.498	30.886	32.072
	Managerial Remuneration	0.238	0.224	0.237
	Payment to Auditors	0.031	0.031	0.031
	Interest	9.748	7.127	5.308
	Insurance Expenses	0.128	0.127	0.049
	Power & Fuel	9.124	8.308	7.694
	Depreciation & Amortization	9.981	10.603	6.189
	Other Expenditure	35.689	30.888	27.011
Total Expenditure		239.777	197.205	176.854

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	6.12	3.39	3.74
Net Profit Margin (PBT/Sales)	(%)	4.98	2.89	3.95
Return on Total Assets (PBT/Total Assets}	(%)	4.62	2.39	3.83
Return on Investment (ROI) (PBT/Networth)		0.09	0.04	0.06
Debt Equity Ratio (Total Liability/Networth)		0.95	0.87	0.93
Current Ratio (Current Asset/Current Liability)		14.12	14.42	2.91

LOCAL AGENCY FURTHER INFORMATION

Form 8

Bankers Charges Report as per Registry

This Form is for	Creation of charge
Corporate identity number of the company	U14102TZ1991PLC007127
Name of the company	ASHOK GRANITES LIMITED
Address of the registered office or of the principal place of business in India of the company	4/35, Bharathi Street, Swarnapurai, Salem – 636004, Tamilnadu
Type of Charges	Ø Immovable property Ø Book debts Ø Movable property (not being pledge)
Particular of the charge holder	Karnataka Bank Limited Registered and Head Office : P.B. No.599, Mahaveera Circle, Kankandy, Mangalore-575002, Karnataka, India E-Mail : salem@ktkbank.com
Nature or description of the instrument creating charge	Hypothecation agreement dated 20.09.2006 Letter of authority dated 20.09.2006
Date of the instrument creating charge	20.09.2006
Amount Secure by the charge	Rs.15.681 millions
Brief of the principal terms and conditions and extent and operation of the charge	[a] Rate of interest 0% [b] Terms of repayment Bank Guarantee valid for a period upto 19.03.2008 [c] Margin 10% [d] Extent and operation of the charge Financial accommodation up to a maximum limit of Rs.15.681 millions for the purpose of Bank guarantee
Short Particulars of the Property charged	Hypothecation of plant and machinery, stocks in trade, stores kept at 60/4A, Vellakkalpatty Village, Chettichavadi post, Salem -636012. Extent of equitable mortgage of factory, land and building situated at 60/4A, Vellakkalpatty Village, Chettichavadi post, Salem -636012.

Name of the company	ASHIOK GRANITES LIMITED
Presented By	Mr. A. Mani, Director
1) Date and description of instrument creating the change	Hypothecation agreement dated 02.09.1996
2) Amount secured by the charge/amount owing on the securities of charge	Import letter of credit limit and bank guarantee Rs. 2.000 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 stock of consumables, spares, granites blocks, granite monuments etc.
4) Gist of the terms and conditions and extent and operation of the charge.	To meet import of consumables, spares and to meet statutory obligation.
5) Name and Address and description of the person entitled to the charge.	The Karnataka Bank Limited, Divya Towers, Fort Main Road, Salem -636001.
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

The company’s fixed assets of important value include:

• Land
• Building
• Plant and Machinery
• Electrical Installations
• Furniture and Fixture
• Fittings
• Vehicles
• Office Equipment
• Computer

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. 39.98
UK Pound	1	Rs. 78.57
Euro	1	Rs.59.20

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

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