MIRA INFORM REPORT

Report Date :

23.10.2008

IDENTIFICATION DETAILS

Name :	GRATOLITE INDIA PRIVATE LIMITED
Registered Office :	D- 1618, DSIDC Industrial Area, Narela New Delhi 110040.
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	29.07.1993
Com. Reg. No.:	054654
CIN No.: [Company Identification No.]	U74899DL1993PTC054654
IEC No.:	0505003074
PAN No.: [Permanent Account No.]	AAACG0750C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of wires and Bathroom Acessories

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 5715
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established concern having moderate track. Financial position can be regarded as poor having substaintial accumulated losses. Trade relation are fair. Payment are reported as slow but correct. The company can be considered small to mediocre business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Anuj Kumar
Designation :	Accountants
Contact No.:	91-9990165647
Date :	21.10.2008

LOCATIONS

Registered Office/Factory :	D- 1618, DSIDC Industrial Area, Narela New Delhi 110040, India.
Tel. No.:	91-11-27782740
Mobile No.:	91-9990165647 (Mr. Anuj Kumar.)
Fax No.:	91-11-25980269
E-Mail :	gratoliteindia_garg@yahoo.co.in
Area :	400 gaj
Location :	Owned
Administrative Office/Stores :	NW 205, Vishnu Garden, New Delhi 110018.
Tel. No.:	91-11-25986208
Fax No.:	91-11-25980269
Area :	150 gaj
Location :	Owned

DIRECTORS

Name :	Mr. Divij Garg
Designation :	Director
Address :	4/28 East Punjabi Bagh, New Delhi 110026, India.
Date of Birth/Age :	28.12.1987
Qualification :	B.COM
Date of Appointment :	01.07.2008
Name :	Mr. Trilok Chand Garg
Designation :	Director
Address :	4/28 East Punjabi Bagh, New Delhi 110026, India.
Date of Birth/Age :	12.12.1962
Qualification :	B.COM
Date of Appointment :	22.12.2003
Name :	Ms. Kamal Sarna
Designation :	Director
Address :	I-240, Karampura New Delhi 110015, India.
Date of Birth/Age :	17.01.1971
Date of Appointment :	10.05.2000

KEY EXECUTIVES

Name :	Mr. Dinesh Kumar Gupta
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 30.09.2005)

Names of Shareholders	No. of Shares
Ms. Devi Pisto	21200
Mr. Nirmal Garg	26700
Ms Kamal Sarna	100
Mr. Divij Garg	10100
Ms. Manju Garg	5000
Mr. Kishor Nand Sarna	100
Mr. Overseas Dee Cee	100
Mr. Aseem Garg	1000
Mr. Vakil Chand Garg	100
Mr. Trilok Chand Garg	13100
Mr. Akshat Garg	100
Mr. D P Garg	100
Mr. Sons Garg V.C (HUF)	100
Mr. Tanmat Garg	100
Total	77900

Equity Share Breakup (Percentage of Total Equity):

(As on 30.09.2007)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of wires and Bathroom Acessories
Products :	· H. B Wires · G. I Wires · High Carbon Wire · PC Wire · Bath Tubs · Flushing Cisterns · Toilet Seat Covers · Bathroom Cabinets · Mirror Frames · Fancy Mirror · Mirrors · Bathroom Accessories.
Terms :
Selling :	Cash and Credit ( 30 days)
Purchasing :	Cash and Credit (30 days / 60 days)

GENERAL INFORMATION

Suppliers :

· Azvik Glasses Private Limited

· D B K Traders

· Modern Steel

· Pratap Industries

· Prem Enterprises

· Vaishnav wire Private Limited

· Shiv Shakti Enterprises

· Shiv Shakti Trading Company

· Shree Roshan Wire Private Limited.

Customers :

· Shree Bankay Bihari LAl Board

· Alaska Export

· Garg Weldmesh Private Limited

· Gulab Wire Cutting

· Kanwarji Construction

· Ravi Cable

· Yas Ceramics Private Limited.

No. of Employees :

25 (Administrative Office + Stores)

Bankers :

· Syndicate Bank,

Rani Jhansi Road, New Delhi 110055.

· Corporation Bank,

Cannaught Palace Branch, New Delhi.

Facilities :

Loan and Advance	31.03.2007 (Rs. In Millions)
· Manju Garg	0.500
· Gratings (India) Private Limited	0.000
· Telephone Security	0.015
· Electricity Security	0.142
· Prepaid Car Insurance	0.031
· T D S	0.002
· VAT	0.003
· Advance Given to Creditors (As per List)	0.095
· Syndicate Bank R D Account	0.051
· Garg Weldmesh Private Limited	0.500
· Shree Banke Bihari Paper and Board Mill	0.215

Banking Relations :	Satisfactory
Auditors :
Name :	Manish S and Company, Chartered Accountant
Address :	F-11, Surya Tower, Paschim Vihar, New Delhi 110063

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs. 10/- Each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
77900	Equity Shares	Rs. 10/- Each	Rs.0.779 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2008
Sales Turnover	30.000

Expected Sales (2008-09) : Rs.100.000 Millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		0.779	0.779	0.779
2] Share Application Money		1.542	1.542	1.542
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(1.178)	(1.320)	(1.063)
NETWORTH		1.143	1.001	1.258
LOAN FUNDS
1] Secured Loans		4.364	2.020	1.589
2] Unsecured Loans		4.733	1.885	1.667
TOTAL BORROWING		9.097	3.905	3.256
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		10.240	4.906	4.514
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.854	1.284	1.704
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	3.181	2.473	1.580
	Sundry Debtors	1.509	2.237	0.164
	Cash & Bank Balances	5.169	0.024	0.276
	Other Current Assets	0.022	0.000	0.000
	Loans & Advances	1.557	1.187	1.579
Total Current Assets		11.438	5.921	3.599
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	3.052	2.326	0.821
	Provisions	0.000	0.000	0.000
Total Current Liabilities		3.052	2.326	0.821
Net Current Assets		8.386	3.595	2.778
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
PRELIMINARY EXPENSES		0.000	0.027	0.032
TOTAL		10.240	4.906	4.514

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		14.230	5.034	0.690
Other Income		0.002	0.018	1.933
Total Income		14.232	5.052	2.623
Profit/(Loss) Before Tax		0.179	(0.218)	(0.699)
Provision for Taxation		0.076	0.000	0.000
Profit/(Loss) After Tax		0.103	(0.218)	(0.699)
Expenditures :
	Purchase	12.660	4.224	0.594
	Direct Expenses	0.867	0.812	0.410
	Increase/(Decrease) in Finished Goods	(0.708)	(0.893)	1.549
	Administrative Expenses	0.595	0.567	0.570
	Financial Charges	0.264	0.186	0.000
	Depreciation & Amortization	0.375	0.356	0.198
	Other Expenditure	0.000	0.020	0.001
Total Expenditure		14.053	5.272	3.322

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	0.72	4.31	26.64
Net Profit Margin (PBT/Sales)	(%)	1.26	4.33	101.30
Return on Total Assets (PBT/Total Assets}	(%)	1.34	3.02	13.18
Return on Investment (ROI) (PBT/Networth)		0.15	218.00	55.56
Debt Equity Ratio (Total Liability/Networth)		10.62	6.22	3.24
Current Ratio (Current Asset/Current Liability)		3.74	2.54	4.38

LOCAL AGENCY FURTHER INFORMATION

Trade References:

· Pramod Steel Trader, Delhi

· Yadav Spat Udyog, Delhi.

Fixed Assets:

· Plant and Machinery

· Die and Moulds

· Car

· Cycle

· Furniture

· Computer

· Rickshaw

· Fax Machine.

Additional Requirement of Indiamart for Trust-Seal

VAT / TIN : 07150170770

IEC Code : 0505003074

PAN / TAN : AAACG0750C

Bank Name :Syndicate Bank,

Bank Address : Rani Jhansi Road Branch

Bank A/c. No.: 9023/125/71

Account Since : 1993

Bank Name : Corporation Bank

Bank Address : Cannught Palace Branch

Bank A/c. No.: CA 3114

Account Since : 4 Years

Form 8:

This form is for	Creation of charge Modification of charge
Charge identification number of the modified	10016037
Corporate identity number of the company	U74899DL1993PTC054654
Name of the company	GRATOLITE INDIA PRIVATE LIIMITED.
Address of the registered office or of the principal place of business in India of the company	D- 1618, DSIDC Industrial Area, Narela New Delhi 110040, India.
Type of charge	Book Debts Movable Property Floating Charge Immovable property
Particular of charge holder	Name: Syndicate Bank, Address: Rani Jhansi Road, New Delhi 110055. E-Mail: ca-rcg@yahoo.co.in
Nature of description of the instrument creating or modifying the charge	Letter of confirmation of Deposit of Title Deeds Dated 04.08.2008
Date of instrument Creating the charge	04.08.2008
Amount secured by the charge	Rs.7.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: @15.50% p.a. at monthly rests. Terms of Repayment : Payable on demand Margin : 25% Extent and Operation of the charge: 100% Others : To collaterally secure all amounts payable under ODH limit of Rs. 7.000 Millins by equitable mortgage of immovable properties of the Company being Agricultural land measuring 15 Kanals 18 Marla falling in Mustatil No. 163, Killa No.4(6-1), 5(5-6), 6/1 (2-10) Min North, 7/ (2-1) Min North of Village Bhapdoda, Tehsil Bahadurgarth, Distt. Jhajjar, Haryana.
Date of latest modification prior to the present modification	18.12.2007

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.49.29
UK Pound	1	Rs.80.40
Euro	1	Rs.63.35

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	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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		37

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