MIRA INFORM REPORT

Report Date :

07.05.2008

IDENTIFICATION DETAILS

Name :	GIRIAS INVESTMENT PRIVATE LIMITED
Registered Office :	No. 34/1 – A, 1^ST Main Road, Gandhi Nagar, Bangalore – 560009, Karnataka
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	08.04.1999
Com. Reg. No.:	08-25042
CIN No.: [Company Identification No.]	U51395KA1999PTC025042
TAN No.: [Tax Deduction & Collection Account No.]	BLRG00914E
Legal Form :	Private Limited Liability Company
Line of Business :	Dealers of Electric and Electronic Goods and Home Appliances

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 893212
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established company having fine track. Financial position is good. Payments are correct and as per commitments. The company is doing exceedingly well. Payments are correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	No. 34/1 – A, 1^ST Main Road, Gandhi Nagar, Bangalore – 560009, Karnataka, India
Tel. No.:	91-80-51241074 / 22264551 / 41241074
Fax No.:	91-80-22353708
E-Mail :	mcravi@vsnl.com
Area :	50000 Sq. ft
Location :	Owned
Branches :	Ø Rajaji Nagar, Next to National Public School, Bangalore, Karnataka, India Ø Brigade Road, 138, Shoolay Circle, Bangalore Karnataka, India Ø Jaya Nagar, Opposite Dayand Sagar Mantap, Bangalore Karnataka, India Ø Sadashiv Nagar, Opposite Cauvery Theatre Circle, Bangalore – 560080 Karnataka, India Ø Mysore, India Ø Mangalore, India Ø Coimbatore, India

DIRECTORS

Name :	Mr. Pannalal Giria
Designation :	Managing Director
Address :	No. 34/1 – A, 1^ST Main Road, Gandhi Nagar, Bangalore – 560009, Karnataka, India
Date of Birth/Age :	15.09.1948
Date of Appointment :	08.04.1999
Name :	Mr. Kanhailal Giria
Designation :	Director
Address :	10/12, Chabria, Layout Kumar Park Road, Bangalore – 560001, Karnataka, India
Date of Birth/Age :	16.06.1950
Date of Appointment :	08.04.1999
Name :	Mr. Hansraj Giria
Designation :	Director
Address :	10/12, Chabria, Layout Kumar Park Road, Bangalore – 560001, Karnataka, India
Date of Birth/Age :	05.11.1957
Date of Appointment :	08.04.1999
Name :	Mr. Naveen Giria
Designation :	Director
Address :	10/12, Chabria, Layout Kumar Park Road, Bangalore – 560001, Karnataka, India
Date of Birth/Age :	20.03.1974
Date of Appointment :	01.09.2000
Name :	Mr. Praveen Giria
Designation :	Director
Address :	10/12, Chabria, Layout Kumar Park Road, Bangalore – 560001, Karnataka, India
Date of Birth/Age :	14.07.1974
Date of Appointment :	01.09.2000
Name :	Mr. Manish Giria
Designation :	Director
Address :	10/12, Chabria, Layout Kumar Park Road, Bangalore – 560001, Karnataka, India
Date of Birth/Age :	08.04.1979
Date of Appointment :	01.10.2001
Name :	Mr. Rishab Giria
Designation :	Director
Address :	10/12, Chabria, Layout Kumar Park Road, Bangalore – 560001, Karnataka, India
Date of Birth/Age :	20.02.1981
Date of Appointment :	01.10.2001
Name :	Mr. Dungarmal Jain
Designation :	Director
Address :	Jain Manor, R. S. Puram, Opposite Rao Hospital, Coimbatore, Bangalore- 560096, Karnataka, India
Date of Birth/Age :	12.02.1954
Date of Appointment :	17.05.2004
Name :	Mr. Nitin Alias Nitesh
Designation :	Director
Address :	Jain Manor, R. S. Puram, Opposite Rao Hospital, Coimbatore, Bangalore- 560096, Karnataka, India
Date of Birth/Age :	24.11.1978
Date of Appointment :	17.05.2004
Name :	Mrs. Saroj Giria
Designation :	Director
Address :	10/12, Chabria, Layout Kumar Park Road, Bangalore – 560001, Karnataka, India
Date of Birth/Age :	07.06.1956
Date of Appointment :	24.08.2006
Name :	Mrs. Santosh Giria
Designation :	Directors
Address:	10/2, Chabria Layout, kumara Krupa Road, Bangalore – 560 001, Karnataka, India
Date of Birth/Age :	09.04.1956
Date of Appointment :	24.08.2006
Name :	Ms Manju Giria
Designation :	Directors
Date of Birth/Age :	15.12.1961
Date of Appointment :	24.08.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (as on 31.03.2007):-	No. of Shares
Mr. Pannalal Giria	2270
Mr. Kanhailal Giria	750
Mr. Hansraj Giria	1250
Mr. Naveen Giria	500
Mr. Praveen Giria	500
Mr. Manish Giria	100
Mr. Rishab Giria	100
Mr. Dungarmal Jain	1000
Mr. Nitin	1000

Equity Shares Breakup (Percentage of Total Equity): (as on 31.03.2007):-

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

BUSINESS DETAILS

Line of Business :

Dealers of Electric and Electronic Goods and Home Appliances

GENERAL INFORMATION

Suppliers :	Ø Samsung Ø Philips Ø LG Ø Panosonic Ø Haeir Ø Onida Ø BPL Ø National Ø Hyundai Ø TCL Ø Nokia Ø Vguard Ø Lexus Ø Maharaja Ø Butter fly Ø Godrej Ø Sony Ø Prestige
Customers :	Households
No. of Employees :	120
Bankers :	· Andhra Bank Limited, Gandhi Nagar, Bangalore- 560009, Karnataka, India · State Bank of India · Citi Bank NA , No. 3 Club House Road, Chennai – 600 002, Tamil Nadu, India · Bank Of Baroda · Bank Of India · Global Trust Bank · Oriental Bank of Commerce Sadashiva Nagar Branch, No. 209/1, upper Palace Orchards, Bellary Road, Bangalore – 560 080, Karnataka, India
Banking Relations :	-----
Auditors :
Name :	M C Ravindra & Company Chartered Accountant (Mr. M C Ravindra , Partner , M .No. 19751)
Address 1 :	118/B, 2^ND Floor, Infantry Road, Bangalore – 560001, Karnataka, India
Address 2 :	113/B, 2^nd Floor, Infantry Road, Bangalore – 560 001, Karnataka, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 100/- Each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
446670	Equity Shares	Rs. 100/- Each	Rs. 44.667 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		44.667	0.967	0.967
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		178.636	134.236	93.054
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		223.303	135.203	94.021
LOAN FUNDS
1] Secured Loans		127.340	84.677	0.000
2] Unsecured Loans		4.704	42.137	32.359
TOTAL BORROWING		132.044	126.814	32.359
DEFERRED TAX LIABILITIES		0.329	0.025	0.000
TOTAL		355.676	262.042	126.380
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		136.166	105.108	63.952
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		9.619	0.119	0.119
DEFERREX TAX ASSETS		0.000	0.000	0.058
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	56.151	68.630	23.957
	Sundry Debtors	56.183	31.557	11.449
	Cash & Bank Balances	107.725	61.763	99.913
	Other Current Assets	0.000	0.399	0.199
	Loans & Advances	38.998	51.965	26.133
Total Current Assets		259.057	214.314	161.651
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	24.189	35.760	79.495
	Provisions	24.977	21.746	19.914
Total Current Liabilities		49.166	57.506	99.409
Net Current Assets		209.891	156.808	62.242
MISCELLANEOUS EXPENSES		0.000	0.007	0.009
TOTAL		355.676	262.042	126.380

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover		1651.431	1427.306
Other Income		0.000	0.000
Total Income		1651.431	1427.306
Profit/(Loss) Before Tax		69.095	63.012
Provision for Taxation		24.391	21.746
Profit/(Loss) After Tax		44.704	41.266
	Depreciation & Amortization	3.055	3.061
	Other Expenditure	1576.226	1358.172
Total Expenditure		1579.281	1361.233

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.71	2.88	NA
Net Profit Margin (PBT/Sales)	(%)	4.18	4.41	NA
Return on Total Assets (PBT/Total Assets}	(%)	17.07	19.72	NA
Return on Investment (ROI) (PBT/Networth)		0.31	0.46	NA
Debt Equity Ratio (Total Liability/Networth)		0.81	0.42	1.05
Current Ratio (Current Asset/Current Liability)		5.27	3.73	1.62

LOCAL AGENCY FURTHER INFORMATION

FORM 8:-

Corporation identity number or foreign company registrations number of the company	U51395KA1999PTC025042
Name of the company	GIRIAS INVESTMENT PRIVATE LIMITED
Address	No. 34/1 – A, 1^ST Main Road, Gandhi Nagar, Bangalore – 560009, Karnataka, India
This Form is for	Modification of Charge
Type of Charges	Immovable Property
Particular of the charge holder	Oriental Bank of Commerce Sadashiva Nagar Branch, No. 209/1, upper Palace Orchards, Bellary Road, Bangalore – 560 080, Karnataka, India E-Mail: prasannakpk@rediffmail.com
Nature or description of the instrument creating charge	Letter Evidencing Deposit of title deed – for equitable mortgage
Date of the instrument creating charge	28.12.2007
Amount Secure by the charge	Rs. 150.000 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest : Interest at PLR -1.75% i.e 11.50% p.a with monthly rests compounding Interest rates. PLR and Interest spread shall vary from time to time as per HO/RBI policy Terms of Repayment: On Demand Margin: Margin 25% on stocks and book debts (not older than 90 days) Extent and Operation of the charge: Hypothecation charge over entire stocks, movable assets and future book debts and other current assets like advance to suppliers, collateral security by way of equitable mortgage created by deposit of title deeds on company immovable properties CC Rs. 150.000 millions only
Short particulars of the Property charged	Equitable mortgage created by deposit of title deeds on company immovable properties land bearing No. 37/11, 100 Fts Road, 1^st block , Jayanagar Bangalore together with all buildings, structures, constructed and tobe constructed thereon.
Particulars of the present modification	Collateral security : Equitable mortgage created by deposit of title deeds on company immovable properties land bearing No. 37/11, 100 Ft Road, 1^st Block, Jayanagar Bangalore together with all buildings, structures, constructed and tobe constructed thereon to secure the CC limit of Rs. 150.000 millions All other terms and conditions incl. all existing securities to continue.

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.43.39
UK Pound	1	Rs.85.16
Euro	1	Rs.57.60

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	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	NO
--AFFILIATION	YES/NO	NO
--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