MIRA INFORM REPORT

Report Date :

22.07.2008

IDENTIFICATION DETAILS

Name :	DELUXE KAARAN IMPORTS PRIVATE LIMITED
Registered Office :	321, Siddhivinayak Housing Society, Room No. 7, Hingwala Lane, Pantnagar, Ghatkoper (East), Mumbai -400 075, Maharashtra.
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	26.11.1997
Com. Reg. No.:	11-112109
CIN No.: [Company Identification No.]	U51490MH1997PTC112109
TAN No.: [Tax Deduction & Collection Account No.]	MUMD06229G
Legal Form :	Private Limited Liability Company.
Line of Business :	Importers and Exporters of Plastic Raw Materials.

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 9052741
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Kalpesh
Designation :	Accounts Manager
Date :	21.07.2008

LOCATIONS

Registered Office :	321, Siddhivinayak Housing Society, 7^th Floor Hingwala Lane, Pantnagar, Ghatkopar (East), Mumbai-400075, Maharashtra, India
Tel. No.:	91-22-25109657/25165788
Fax No.:	91-22-25165787
E-Mail :	deluxe_karan@yahoo.com info@deluxe-india.com
Website :	http://www.deluxe-india.com
Head Office :	P.O>Box No. 17341, 3/A, 14-C, 1st Floor Bhandup, Mumbai-400 078, India
Tel. No.:	91-22-65997851 / 65997852
Fax No.:	91-22-65997854
E-Mail :	srushabh@deluxe-india.com info@deluxe-india.com
Branches :	Located at : Ø 304,305 Sarkar Bhuvan, N.N Street, Masjid Bunder, Mumbai- 400009, Maharastra, India Ø Ahmedabad, Gujarat, India Ø Daman

DIRECTORS

Name :	Mr. Minesh D Shah
Designation :	Director
Address:	701 / 702, New Kailash Mansion, Derasar Lane, Ghatkopar (East), Mumbai- 400 077, Maharashtra, India.
Date of Birth :	27.07.1961
Date of Appointment :	26.11.1997
Name :	Mrs. Manisha M. Shah
Designation :	Director
Address:	701 / 702, New Kailash Mansion, Derasar Lane, Ghatkopar (East), Mumbai- 400 077, Maharashtra, India.
Date of Birth :	07.02.1966
Date of Appointment :	15.11.2004
Name :	Mr. Rushabh Jitendra Shah
Designation :	Director
Address:	701 / 702, New Kailash Mansion, Derasar Lane, Ghatkopar (East), Mumbai- 400 077, Maharashtra, India.
Date of Birth :	17.06.1978
Date of Appointment :	26.11.1997

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2006

Names of Shareholders	No. of Shares
Minesh D Shah	310610
Manisha M Shah	11810
Rushabh J Shah	1810
Minesh D Shah HUF	10070
Karan M Shah	1500
Pankti M Shah	1500
Kevin M Shah	1500
Hitesh Shah, Pankaj Shah and Mahesh Shah	100
Minesh D Shah, Abhay Shah and Rita Shah	100
Minesh D Shah and Dharamdas T Shah	100
Minesh D Shah and Yusufbhai Salot	100
Minesh D Shah, Ashwin R Shah and Chandraprabhu R Shah	100
Minesh D Shah, Naresh R Shah and P Shah	100
Minesh D Shah and Rajendra F. Bosmiya and Vimla R Shah	100
Minesh D Shah, Pramod Kapadia and Mahesh Sanghavi	100
Minesh D Shah, Jalpa P. Shah and Karan M Shah	100
Minesh D Shah , Mahendra Biyani and Rasiklal Shah	100
Minesh D Shah and Jaysukhlal Salot	100
Minesh D Shah and Dhirajlal Mehta HUF	100
Total	340000

BUSINESS DETAILS

Line of Business :	Importers and Exporters of Plastic Raw Materials.
Exports :
Countries :	Africa and UK
Imports :
Countries :	Saudi, Singapore, Korea and South America
Terms :
Purchasing :	L/C or credit terms (90 days and 120 days)
Selling :	Cash / Credit

GENERAL INFORMATION

No. of Employees :	35
Bankers :	Ø Bank of India, Main Branch, Mumbai-400001, Maharashtra, India Ø HDFC Bank, Ahmedabad, Gujarat, India Ø HDFC Bank , Ghatkoper , Mumbai. Ø ICICI Bank , Churchgate, Mumbai.
Facilities :	Cash / Credit Rs.70.000 millions (ICICI Bank), LC – Rs. 110.000 millions (HDFC Bank , Ghatkoper , Mumbai).

Banking Relations :	Satisfactory
Auditors :
Name :	C. T. Gandhi and Company Chartered Accountants
Address :	318/2 Siddhivinayak Society, New Mhada Complex, Hingwala Lane, Ghatkopar (East), Mumbai-400075, Maharashtra, India
Tel. No.:	91-22-25094029
Fax No.:	91-22-25094030
Associates/Subsidiaries :	Ø Deluxe Sales Corporation Ø Deluxe Petrochem Private Limited Ø Deluxe India Private Limited Ø SKB Industries

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs. 10/- each	Rs. 12.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1240000	Equity Shares	Rs. 10/- each	Rs12.400 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		12.400	3.400	3.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		14.639	7.498	4.583
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		27.039	10.898	7.983
LOAN FUNDS
1] Secured Loans		28.437	0.722	0.000
2] Unsecured Loans		6.512	33.571	4.196
TOTAL BORROWING		34.949	34.293	4.196
DEFERRED TAX LIABILITIES		0.766	0.635	0.339
Inter corporate Deposit		118.298	25.000	0.000
TOTAL		181.054	70.826	12.518
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.883	8.094	4.332
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	131.402	70.047	72.981
	Sundry Debtors	248.300	179.607	50.978
	Cash & Bank Balances	1.929	0.278	0.226
	Licensed in hand	0.026	3.048	2.329
	Loans & Advances	57.031	15.455	9.343
Total Current Assets		438.688	268.435	135.857
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	262.938	205.777	127.770
	Provisions	5.629
Total Current Liabilities		268.567	205.777	127.770
Net Current Assets		170.122	62.658	8.087
MISCELLANEOUS EXPENSES		0.048	0.074	0.099
TOTAL		181.054	70.826	12.518

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2005	31.03.2004
Sales Turnover		599.538	402.440
Other Income		0.000	0.000
Total Income		599.538	402.440
Profit/(Loss) Before Tax		4.626	3.150
Provision for Taxation		1.415	1.117
Profit/(Loss) After Tax		3.211	2.033
Expenditures :
	Administrative Expenses	0.000	0.000
	Trading Expenses	0.000	0.000
	Payments and Benefits to Employees	0.000	0.000
	Selling Expenses	0.000	0.000
	Donations	0.000	0.000
	Interest	8.696	5.820
	Depreciation & Amortization	0.573	0.447
	Other Expenditure	594.913	399.323
Total Expenditure		604.182	405.590

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)		0.54	5.05
Net Profit Margin (PBT/Sales)	(%)		0.77	7.83
		NA
Return on Total Assets (PBT/Total Assets}	(%)		1.67	2.25
Return on Investment (ROI) (PBT/Networth)			0.42	0.39
Debt Equity Ratio (Total Liability/Networth)		9.72	22.03	16.53
Current Ratio (Current Asset/Current Liability)		1.63	1.30	1.06

LOCAL AGENCY FURTHER INFORMATION

Name of the company	DELUXE- KAARAN IMPORTS PVT LTD
Presented By	DELUXE -KAARAN IMPORTS PVT LTD
1) Date and description of instrument creating the change	The company has by declaration created the Hypothecation on Stock and book Debts (excluding kalol unit) in favor of the standard Chartered Bank on 10.02.2006.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 12.500 millions only
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	All the stock in trade both present and future consisting of raw material, finished goods, goods in process of manufacturing and other merchandise whatsoever, being movable properties now Borrower or at the Borrower’s disposal and now or at any time and from time to time hereafter stored or be stored or brought into or upon or in course of transit to the Borrower’s factory or premises or at any other place whatsoever and whatsoever in the Borrower’s possession or occupation or at any other premises or place (all of which herein after collectively referred to as “the said goods”) (excluding kalol unit) ; and All the present and future book debts, outstanding moneys receivable, claims and bills which are now due and owing or which may at any tine hereafter during the continuance of this security becomes due and owing to the Borrower in the course of its business by any person firm, company or body corporate or by the Government Department or Office or any Municipal or Local or Public or Semi govt. body or authority or any body corporate or undertaking or project whatever in the public sector (all of which herein after collectively referred to as “the said debts”)- (excluding kalol unit)
4) Gist of the terms and conditions and extent and operation of the charge.	Security for overdraft, Letter of Credit Facility, Bank Guarantee and Forward Cover Facility Granted to the company Charge operates as first and paramount charge in favor of the bank as security for all dues under Overdraft, Letter of credit Facility, Bank Guarantee and Forward Cover Facility granted to the company.
5) Name and Address and description of the person entitled to the charge.	Standard Chartered Bank 23-25, M G Road, Fort, Mumbai – 400 001.
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

Corporate identity number (CIN) Foreign company registration number	U51490MH1997PTC112109
Name of the Company	DELUXE- KAARAN IMPORTS PVT LTD
Address	321, Siddhivinayak Housing Society, Room No. 7, Hingwala Lane, Pantnagar, Ghatkoper (East), Mumbai -400 075, Maharashtra, India.
This form is for	Creation of Charge
Type of Charge	Book Debts Movable Property
Particulars of the charge holder	ICICI Bank Limited Landmark race Courch Circle, Alkapuri, Baroda -390 015, Gujarat, Abha.g@icicibank.com
Nature of the instrument modifying charge	Hypothecation Agreement (WCF)
Date of Instrument charge	13.10.2006
Amount secured by the charge	Rs.180.000 Millions
Brief of the principal terms and conditions	Rate of Interests : Cash Credit @10.5% Subject to revision form time to time Letter of Credit – Commission 1.25% Bank Guarantee – Commission 1.5% Terms of Repayment : Renewal at the expiry of every 12 months form the date of sanction Margin : Inventory 25% Against all components of inventory Book Debts 25% Cover Period upto 90 days Extent and operation of the charge The charge over the property is for the full fund based and non fund based credit facilities aggregating to Rs.180.000 millions.
Description of the property charged indicating	Not Available.
Short particular of the property charged	Whole of the stock of raw materials, Goods in Process, Semi Finished and Finished goods, consumable stores and spares lying and stored at borrowers factories, premises and godowns situated at Mumbai or wherever else and such other movables both present and future. All amounts owing to and received and /or receivable by the borrower and any person on behalf of it, All book depts., cash flows and Receivables both present and future.

AS PER WEBSITE

The Deluxe Group of company was started in the year 1975 to cater the requirement of the industry.
Intially starting with the office in mumbai, since then they had grown up, with the support of their customers, they had wide distribution network in other parts of India as well. They are now one of the largest, best known, most reliable and reputed dealers and distributors of plastics, chemicals and ball bearings in the Indian market, catering to the needs of trade and actual users. Being authorized distributors of many companies, they ensure their customers get 100% genuine products, in sealed packing, without any risk of adulteration or contamination

And since their godowns are always stocked, they assure round-the-year availability of their products and also fixed rates. Access to a wide range of industry segments makes them a key source for product usage, handling and price trends.The company is totally customer-service oriented and firmly believes that business relations will endure only if the foundation is built on long term perceptions and commitments.So with DELUXE as the trusted source of Plastics, Chemicals and Ball Bearings you really don’t need to look elsewhere. Their other services offered are Shares & investment and Movie distribution.

Deluxe Sales Corporation

profile

Deluxe Sales Corporation was incorporated in the year 1975. It holds the distinction of being the flagship company of the Deluxe Group of Companies. It was incorporated with a definite vision to successfully market and sell various products in the Indian market. Currently it deals in numerous products in the Chemical and Plastic fields. The turnover of the company is to the tune of Rs. 450 Millions. Down the years, M/s. Deluxe Petrochem Private Limited and M/s. Deluxe Kaaran Imports Private Limited are the offshoots of this company. The company holds a very strong goodwill in the market down the years.

Deluxe Petrochem Private Limited

profile

Deluxe Petrochem Private Limited was incorporated in the year 1995 with a view to support and expand the business of M/s. Deluxe Sales Corporation and was a part of the expansion process in the Deluxe Group of Companies. Currently it deals in various products like Chemicals, Dyes Intermediates, Pharma Intermediates, Aromatic Chemicals, Spices, Rubber products and Rubber Chemicals. The Turnover of this company is to the tune of Rs. 200 Millions. The company is now enjoying the fruits for the sincere efforts and progress it has generated down the years.

Product

River embakments and canals

CL-5 is ideal for river embakments and canals because it strengthnes the embakment

Deluxe Groups of companies regularly imports chemicals from various far eastern countries as well as far western countries

Deluxe Groups of companies are into Imports, shares and investment with office in Mumbai and Gujarat. The group has been diversified into various sectors. One of that are Ball Bearings.

The company’s fixed assets of important value includes Computers, Type Writers, Telephone, Paper Cutter, Motor Bike, Xerox Machine, Maruti Zen Car, Sonata Car, Siena Flat Car, Skoda Car, Air conditioner, Fax Machine, Furniture and Fixtures, Viva Car, Printer, Platform Scale and Loom Machine.

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.42.71
UK Pound	1	Rs.85.51
Euro	1	Rs.68.02

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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