MIRA INFORM REPORT

Report Date :

19.07.2008

IDENTIFICATION DETAILS

Name :	KISHORE VADILAL PRIVATE LIMITED
Registered Office :	Plot No. 3, Phase-I, GIDC, Vatav, Near Old Nirma, P.O. Box No.10, Ahmedabad – 382445, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	13.03.1967
Com. Reg. No.:	041438
CIN No.: [Company Identification No.]	U29219GJ1967PTC001438
TAN No.: [Tax Deduction & Collection Account No.]	AHMK00759D
PAN No.: [Permanent Account No.]	AAACK5882F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Diamond core / Water well drilling machine equipments.

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 137000
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company meeting its normal commitments timeously. Trade relations are fair. Business is active. The company can be considered good for normal business dealings.

INFORMATION PARTED BY

Name :	Mr. Sunil Parikh
Designation :	Managing Director
Contact No.:	91-9824092240
Date :	05.06.2008

LOCATIONS

Registered Office / Factory :	Plot No. 3, Phase-I, GIDC, Vatav, Near Old Nirma, P.O. Box No.10, Ahmedabad – 382445, Gujarat
Tel. No.:	91-79-25832970 / 25890608
Fax No.:	91-79-25832971
E-Mail :	kvpl@vsnl.com
Area :	10000 Sq. mtrs.
Location :	Owned

DIRECTORS

Name :	Mr. Kishore V. Parikh
Designation :	Chairman and Managing Director
Address :	Ratnawadi, Opp. Parimal Garden, C. G. Road, Ahemadabad – 380 006, Gujarat
Date of Birth/Age :	09.10.19933
Date of Appointment :	27.03.1967
Name :	Mr. Hemant N. Parikh
Designation :	Director
Address :	A3, New Ramji Park, Flats, Bhatia Paldi, Ahemadabad – 380 007, Gujarat
Date of Birth/Age :	16.03.1954
Date of Appointment :	25.09.2002
Name :	Mr. Sunil K Parikh
Designation :	Managing Director
Address :	Ratnawadi, Opp. Parimal Garden, C. G. Road, Ahemadabad – 380 006, Gujarat
Date of Appointment :	01.04.2007

KEY EXECUTIVES

Name :	M/s D N Motwani and Company
Designation :	Company Secretary
Address :	B-212, Nandan Apartment, B/h ISRO, Ramdevnagar, satellite road, Ahemadabad – 380 015, Gujarat, India.

Equity share breakup (percentage of total equity)

As on 30.09.2007
Directors or relatives of directors	100.00
Total	100.00

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 30.09.2005)

Names of Shareholders	No. of Shares
Koshorechandra V Parikh	2
Koshorechandra V Parikh	11
Sunilkumar K Parikh	5
Prakashkumar K Parikh	5
Ratnamaniben V Parikh	8
Ratnamaniben V Parikh	5
Koshorechandra V Parikh	15
Sunil Kishorechandea Parikh	5
Prakashkumar K Parikh	5
Sunil Kishorechandea Parikh	1
Prakashkumar K Parikh	1
Prakshvir K Parikh	17
Koshorechandra V Parikh	41
Sunilkumar K Parikh	20
Pappu Kishorechandra Parikh	20
Smt. Prabhavatien K. Parikh	17
Ratnamaniben V Parikh	24
Sunilkumar K Parikh	23
Ratnamaniben V Parikh	21
Sunilkumar K Parikh	16
Prakashvir K Parikh	15
Prakash K Parikh	173
Koshorechandra V Parikh	1450
Ratnamaniben V Parikh	50
Prabhavatiben K Parikh	50
Prabhavatiben K Parikh	1000
Total	3000

BUSINESS DETAILS

Line of Business :	Manufacturer of Diamond core / Water well drilling machine equipments.
Exports :
Countries :	More than 40 Countries
Imports :
Countries :	· France · China · Germany
Terms :
Selling :	L/C - AAdvence
Purchasing :	L/C and Credit (30 days / 60 days / 90 days) - Avance

GENERAL INFORMATION

Customers :	Dealers Exporters
No. of Employees :	70
Bankers :	State Bank of India Paramshiddi Complex Opp. V S Hospital, Ellisbridge, Ahemadabad – 380 006, Gujarat.
Facilities :	CC – more than Rs. 20.000 millions

Banking Relations :	Satisfactory
Auditors :	Naushir. Marfatia and Company Chartered Accountants 1, B Jadav Chembers, First Floor, Ashram Road, Ahemadabad – 380 009, Gujarat

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
3100	Equity Shares	Rs. 1000/- each	Rs. 3.100 millions
	Total		Rs. 3.100 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000	Equity Shares	Rs. 1000/- each	Rs. 3.000 millions
	Total		Rs. 3.000 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		3.000	3.000	3.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		24.427	13.709	5.615
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		27.427	16.709	8.615
LOAN FUNDS
1] Secured Loans		6.649	5.814	6.255
2] Unsecured Loans		8.855	7.415	6.798
TOTAL BORROWING		15.504	13.229	13.053
DEFERRED TAX LIABILITIES		0.093	0.000	0.000
TOTAL		43.024	29.938	21.668
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.044	4.181	4.026
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.047	0.047	0.047
DEFERREX TAX ASSETS		0.000	0.218	0.200
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	66.740	45.657	27.042
	Sundry Debtors	7.888	6.580	3.439
	Cash & Bank Balances	5.988	2.866	9.221
	Other Current Assets	0.103	0.131	0.082
	Loans & Advances	5.464	1.295	1.492
Total Current Assets		86.183	56.529	41.276
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	41.642	26.122	21.281
	Provisions	8.610	4.915	2.600
Total Current Liabilities		50.252	31.037	23.881
Net Current Assets		35.931	25.492	17.395
MISCELLANEOUS EXPENSES		0.002	0.000	0.000
TOTAL		43.024	29.938	21.668

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		89.311	61.300
Other Income		0.000	0.000
Total Income		89.311	61.300
Profit/(Loss) Before Tax		15.945	8.041
Provision for Taxation		(0.030)	(0.103)
Profit/(Loss) After Tax		15.975	8.144
FOB Value of Exports		40.349	30.210
Imports :
	Raw Materials	5.584	10.114
	Components	1.687	1.852
	Capital Goods	0.802	0.000
Total Imports		8.073	11.966
Expenditures :
	Depreciation & Amortization	0.673	0.314
	Other Expenditure	72.693	52.945
Total Expenditure		73.366	53.259

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	17.89	13.29	-
Net Profit Margin (PBT/Sales)	(%)	17.85	13.12	-
Return on Total Assets (PBT/Total Assets}	(%)	17.10	13.24	-
Return on Investment (ROI) (PBT/Networth)		0.58	0.48	-
Debt Equity Ratio (Total Liability/Networth)		2.40	2.65	4.29
Current Ratio (Current Asset/Current Liability)		1.72	1.82	1.73

LOCAL AGENCY FURTHER INFORMATION

Trade References :

· Minerals Exploration Corporation

· Mitchell Grilling

· Mining Associates

Form no. 8

Name of the company

KISHORE VADILAL PRIVATE LIMITED

Presented By

Kishorechandra Vadilal Parikh – Managing Director

1) Date and description of instrument creating the change

Agreement of hypothecation of goods and Assets dated 30.03.1993, executed by KISHORE VADILAL PRIVATE LIMITED (COMPANY) in favour of STATE BANK OF India (BANK)

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

Rs. 28.500 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

(i) All stocks of raw Materials, Goods in process, Finished and semi-finished Goods, Stores present or future and at the premises or godowns of the Company or elsewhere or in transit and

(ii) All the book debts outstanding monies, receivables, claims, rights, engagements, contracts etc. and other current assets, present or future

(iii) Company’s all unencumbered plant and machinery including spareparts and tools lying and situated in company’s premises

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

The securities described in column No. 3 herein above are hypothecated by way of first charge to the Bank as further and additional Security for the payment by the company to the Bank as under:

1. Cash credit against hypothecation of stocks, materials, semi-finished goods, finished goods, Stocks and packing materials, Book-Debts etc. belonging to the company	Rs. 5.500 millions
2. Clean Demand Draft (cheque/ Drafts) purchase facility	Rs. 4.000 millions
(Rs. 1.500 millions interchangeable between cash credit and DDp (Bills/Cheque limit) keeping the overall fund based limit at Rs. 8.700 millions.)
3. Letter of Credit Facility	Rs. 12.500 millions
4. Ordinary Guarantee Facility	Rs. 3.000 millions
5. Adhoc c/c limit	Rs. 4.200 millions
6. Working capital term loan	Rs. 0.800 million
Total	Rs. 28.500 millions

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

State bank of India

Commercial Branch, Paramsidhi Complex, Opp. V S Hospital, Ellisbridge, Ahemadabad – 380 006, Gujarat

6) Date and brief description of instrument modifying the charge

Supplemental agreement of hypothecation of goods and assets upto Rs. 31.300 millions dated 05.05.05.

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.

The principle charge lastly modified on 10.11.04 for Rs. 27.500 millions now again modified and securities described under column No. 3 by way of hypothecation are extended to cover various revised/renewed credit facilities upto Rs. 31.300 milliions as under:

1. Cash credit against hypothecation of stocks, materials, semi-finished goods, finished goods, Stocks and packing materials, Book-Debts etc. belonging to the company	Rs. 8.500 millions
2. Inland Bills Discounting (usance/sight) and DDp/supply bills. (within CC limit)	(Rs. 1.000 million)
3. Letter of Credit limit (Inland/Foreign)	Rs. 12.500 millions
4. Bank Guarantee limit	Rs. 2.000 millions
5. Adhoc Letter of Credit limit	Rs. 8.300 millions
Total	Rs. 31.300 millions

The company shall pay interest at 2.5% above State Bank Advance Rate as applicable to SB-4 credit rating which is presently at (12.75%) per annum w.e.f. 01.01.04 on amount that become payable to the Bank. The rate of Interest is subject to change on account of charge in the rate of interest announced by Reserve Bank of India from time to time or change in credit rating or change in State bank’s advance rate. The facilities are repayable on demand.

Corporate identity number (CIN) Foreign company registration number	U29219GJ1967PTC001438
Name of the Company	KISHORE VADILAL PRIVATE LIMITED
Address	Munda Gate, Behind Municipal Stores, Jamalpur Darwaja, Kotni Rang, Ahemadabad - 380 006, Gujarat
This form is for	Modification on charge
Type of Charge	Hypothecation
Particulars of the charge holder	State bank of India Commercial Branch, Paramsidhi Complex, Opp. V S Hospital, Ellisbridge, Ahemadabad – 380 006, Gujarat
Nature or description of the instrument(s) creating or modifying the charge	-
Date of the instrument creating or modifying the charge	-
Amount secured by the charge	Rs. 31.300 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	-
Short particulars of the property charged (including location of the property)	· All the Current Assets (Present and Future) including Stock in Precess Finished Goods · All Book Debts of the Company · All the Fixed Assets of the Company
Particular of the present modification	The principle charge lastly modified on 05.05.2005 for Rs. 31.300 millions now again modified and Hypothecated securities are extended to cover various revised/renewed credit facilities up to Rs. 52.000 millions.

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 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.42.78
UK Pound	1	Rs.85.51
Euro	1	Rs.67.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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