MIRA INFORM REPORT

Report Date :

06.04.2011

Note : The Company has shifted from the above address.

IDENTIFICATION DETAILS

Name :	IKEA TRADING (INDIA) PRIVATE LIMITED
Registered Office :	C-16, Second Floor, C-Block Market, Paschimi Marg, Vasant Vihar, New Delhi-110057, India
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.06.1994
Com. Reg. No.:	55-059585
CIN No.: [Company Identification No.]	U93000DL1994PTC059585
TAN No.: [Tax Deduction & Collection Account No.]	DELI00281B
PAN No.: [Permanent Account No.]	AAACI1483Q
Legal Form :	Private Limited Liability Company
Line of Business :	Importer and Exporters of Home Furnishings

RATING & COMMENTS

MIRA’s Rating :

A (60)

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 510000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company and a subsidiary of Ingka Pro Holding BV, The Netherlands having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	C-16, Second Floor, C-Block Market, Paschimi Marg, Vasant Vihar, New Delhi-110057, India
Tel. No.:	91-11-26154790
Fax No.:	91-11-26154790
E-Mail :	n.s.parameswaran@ikea.com atsr@memo.ikea.com rana@memo.ikea.com
Corporate Office :	DLF Infinity Tower A, 8^th Floor, Sector 25, DLF Cybercity, Gurgaon – 122002, Haryana, India
Tel. No.:	91-124-5325000
Area :	32000 sq. ft. Rented - Commercial

DIRECTORS

As on 30.09.2010

Name :	Mr. Karl Orjan Jonsson
Designation :	Director
Address :	Kvinne 97 58933, Linkoping, Sweden
Date of Birth/Age :	03.07.1961
Date of Appointment :	14.09.2006
DIN No.:	02397866
Name :	Mr. Enar Leif Gunnar Johansson
Designation :	Director
Address :	Hausbadsuagen 33, Angelholm, Sweden
Date of Birth/Age :	23.06.1952
Date of Appointment :	30.04.1998
DIN No.:	01520201
Name :	Mr. Johan Carl Fredrik Hegethorn
Designation :	Director
Address :	Malaya BNronnaya Street, Building 17, Apartments, Russian Federation, MOSCOW-123104
Date of Birth/Age :	26.01.1964
Date of Appointment :	03.04.2000
DIN No.:	02408390
Name :	Mr. Susanne Gun Elisabeth Pulverer Bergstrand
Designation :	Director
Address :	D-1/56, 1^st Floor, Vasanth Vihar, New Delhi-110057, India
Date of Birth/Age :	02.10.1959
Date of Appointment :	15.07.2009
DIN No.:	02766362
Name :	Mr. Gregg Pattrick Mowins
Designation :	Additional Director
Address :	111, Sudner Nagar, New Delhi-110003, India
Date of Birth/Age :	17.03.1963
Date of Appointment :	03.01.2011
DIN No.:	03384847
Name :	Mr. Peter Arne Wisbeck
Designation :	Director
Address :	D-10/5, Vasanth Vihar, New Delhi-110057, India
Date of Birth/Age :	12.05.1971
Date of Appointment :	10.05.2007
Date of Ceasing:	15.10.2009
DIN No.:	01513507

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Ingka Pro Holding B V, The Netherlands	30678
Ingka Holding Europe BV, Netherlands	1
Total	30679

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage of Holding
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :	Importer and Exporters of Home Furnishings
Products :	Cotton Bathmats with Rubber Latex Luminiers Lamp Shades Carpets

GENERAL INFORMATION

No. of Employees :	150 Approximately
Bankers :	Standard Chartered Bank

Banking Relations :	--
Auditors :
Name :	S.R.Batliboi and Company Chartered Accountants
Address :	Golf View Corporate Tower-B, Sector-42, Sector Road, Gurgaon-122002, Haryana, India
Tel No.:	91-124-4644000
Fax No.:	91-124-4644050
Holding Company :	Ingka PRO Holding B.V., The Netherlands
Ultimate Holding Company :	Ingka Holding B.V., The Netherlands
Fellow Subsidiaries :	· Ikea Trading Hong Kong Limited, Hong Kong · Ikea Meubles France SNC- Retail · Ikea of Sweden AB, Sweden · Ikea WELS Lager Grossh GMBH and Company · Ikea Handel SDN BHD · Ikea Russia · Ikea Services AB · Ikea Freigh Services AB · Ikea Services BV · Ikea Larger and Services · Ikea IT AB · Ikea Service Centre · Ikea Deutschland Gmbh and Co KG · Ikdea Components AB · Ikea AB · Ikea Trading AB · Ikea Limited, U.K. · Ikea Supply AG

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
35000	Equity Shares	Rs. 100/-each	Rs. 3.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30679	Equity Shares	Rs. 100/-each	Rs. 3.068 millions

Note:

The entire equity share capital is held by the Holding company, Ingka Pro Holding B.V., The Netherlands and its nominee

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		3.068	3.068	3.068
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		124.592	136.726	126.534
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		127.660	139.794	129.602
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		127.660	139.794	129.602
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.000	0.000	106.973
Capital work-in-progress		0.000	6.310	3.136
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	31.248
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	241.701
	Sundry Debtors	0.000	0.000	291.994
	Cash & Bank Balances	34.628	56.875	473.805
	Other Current Assets	122.413	304.279	109.861
	Loans & Advances	108.089	200.263	103.679
Total Current Assets		265.130	561.417	1221.040
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	100.103	228.438	938.229
	Other Current Liabilities	19.069	78.360	10.354
	Provisions	18.298	121.135	284.212
Total Current Liabilities		137.470	427.933	1232.795
Net Current Assets		127.660	133.484	[11.755]
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		127.660	139.794	129.602

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income (Turnover)	75.295	11871.172	17829.022
		Other Income		238.841	95.871
		TOTAL	75.295	12110.012	17924.893
Less	EXPENSES
		Office Expenses
		Administrative Expenses	64.608	11817.947	17463.734
		Advertising Expenses
		TOTAL	64.608	11817.947	17463.734
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		10.687	292.065	461.159
Less/ Add	DEPRECIATION/ AMORTISATION		0.000	58.314	45.576
	PROFIT BEFORE TAX		10.687	233.751	415.583
Less	TAX		0.356	131.830	148.003
	PROFIT AFTER TAX		10.331	101.921	267.578
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.000	0.000	67.548
Less	APPROPRIATIONS
		Transfer to General Reserve	1.033	10.192	26.757
		Proposed Dividend	7.947	78.404	206.574
		Tax on Proposed Dividend	1.351	13.325	35.107
		Interim Dividend (Previous Proposed Dividend)	0.000	0.000	57.000
		Tax on Interim Divided (Previous year Proposed Divided)	0.000	0.000	9.688
	BALANCE CARRIED TO THE B/S		0.000	0.000	0.000
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	11871.172	17829.022
		Reimbursement of Rework Charges	41.865	0.000	0.000
	TOTAL EARNINGS		41.865	11871.172	17829.022
	IMPORTS
		Capital Goods	0.000	4.813	22.299
	TOTAL IMPORTS		0.000	4.813	22.299
	Earnings Per Share (Rs.)		336.75	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	13.72	0.84	1.49
Net Profit Margin (PBT/Sales)	(%)	NA	1.97	2.33
Return on Total Assets (PBT/Total Assets}	(%)	4.03	41.64	31.29
Return on Investment (ROI) (PBT/Networth)		0.08	1.67	3.21
Debt Equity Ratio (Total Liability/Networth)		1.08	3.06	9.51
Current Ratio (Current Asset/Current Liability)		1.93	1.31	0.99

LOCAL AGENCY FURTHER INFORMATION

Note:

The Registered office of the company has been shifted from A-10/5, Vasant Vihar, New Delhi-110057, India to present address w.e.f. 15.12.2009

Nature of Operations:

Subject was engaged in trading of home furnishing and related products, which were procured form suppliers all over India. These goods were exported to other Ikea group companies. With effect from 31 March 2009, the company has discontinued active trading exports business consequent to termination of its Agreement on Purchasing Rights and Services with IKEA Trading Hong Kong Limited, from the same date.

Activities:

During the financial year 2009-10, the company engaged primarily in sales of export incentive licenses besides and re-export of some textile items and lighting goods. The company has earned profit after tax amounting to Rs. 10.331 Millions for the financial year 2009-10.

Dividend:

In view of the available profits, the Directors have proposed a dividend at the rate of Rs. 2590.489 Millions per equity shares amounting to Rs. 7.947 Millions on the paid up equity share capital of the company for the financial year 2009-10

Fixed Assets:

• Leasehold Improvements
• Office Equipments
• Vehicles
• Moulds and Dies
• Computers and Peripherals
• Software
• Furniture and Fittings

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.44.45
UK Pound	1	Rs.71.59
Euro	1	Rs.63.01

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	6
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		60

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.