MIRA INFORM REPORT

Report Date :

09.04.2011

IDENTIFICATION DETAILS

Name :	HOLOGRAPHIC SECURITY MARKING PRIVATE LIMITED
Registered Office :	109, Blue Rose Industrial Estate, Western Highway, Borivali (West), Mumbai – 400066, Maharashtra
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	05.01.1993
Com. Reg. No.:	070298
CIN No.: [Company Identification No.]	U74999MH1993PTC070298
TAN No.: [Tax Deduction & Collection Account No.]	MUMH07262D
PAN No.: [Permanent Account No.]	AAACH2039M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of security holograms, holographic labels and stickers including other sophisticated authentication marking products

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 17528
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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

INFORMATION DECLINED BY

Name :	Mr. Bipin
Designation :	Accountant
Date :	07.04.2011

LOCATIONS

Registered Office/Factory :	109, Blue Rose Industrial Estate, Western Highway, Borivali (West), Mumbai – 400066, Maharashtra, India
Tel. No.:	91-22-67351000
Fax No.:	91-22-28540872
E-Mail :	holographic@vsnl.com
Website :	www.holotechonline.com

DIRECTORS

AS ON 30.09.2009

Name :	Mr. Rohit Dhansuk Mistry
Designation :	Director
Address :	1107, Park Side 1, Raheja Estate, Kuluwadi, Borivali East, Mumbai – 400066, Maharashtra, India
Date of Birth/Age :	13.01.1950
Date of Appointment :	05.01.1993
Name :	Ms. Rupa Rohit Mistry
Designation :	Director
Address :	1107, Park Side 1, Raheja Estate, Kuluwadi, Borivali East, Mumbai – 400066, Maharashtra, India
Date of Birth/Age :	10.10.1952
Date of Appointment :	28.01.1993

KEY EXECUTIVES

Name :	Mr. Bipin
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2009

Names of Shareholders	No. of Shares
Rohit Dhansuk Mistry	10
Rupa Rohit Mistry and Rohit Mistry	247500
Rupa Rohit Mistry	52430
Rupa Rohit Mistry	30070
Rupa Rohit Mistry	241070
Vinod Shah	60
Valleri Shah and Rajesh Shah	105000
Manish Shah and Bhavna Shah	50000
Mahasukh P Shah and Rajan M Shah	10000
Induben Shah and Pannalal Shah	5000
Pannalal Shah and Induben Shah	12500
Valleri Shah and Rajesh Shah	17430
Jyoti Tanna and Narrotam Tanna	20000
Industrial Development Bank of India Limited, Mumbai	200000
Total	991070

AS ON 30.09.2009

Category	Percentage
Directors or relatives of Directors	60.00
Other top fifty shareholders	20.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture of security holograms, holographic labels and stickers including other sophisticated authentication marking products

GENERAL INFORMATION

No. of Employees :

Not divulged by the management

Bankers :

The Bassein Catholic Co-Operative Bank Limited, Gokhivare Branch, Near Gokhivare Talao, Vasai (East), Vasai, Thane - 401207, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
A)Bassein Catholic Co-Op Bank Limited - Cc - 08 (Secured Against Hypothecation of Stock Book Debts) B)Bassein Catholic Co-Op Bank Limited - Tl - 1205 (Repayment Within one Year Rs.2.160 Million) (Previous Year Rs.2.160 Million) C)Bassein Catholic Co-Op Bank Limited - Tl - 1271 (Secured Against Mortgage of Gala, Plant and Machineries) (Repayment Within One Year Rs.0.144 Million (Previous Year Rs.0.144 Million) D) ICICI Car Loan- Car Loan (Repayment Within One Year Rs.0.336 Million, Previous Year Rs.0.307 Million)	13.253 4.757 0.311 0.608	7.901 6.059 0.399 0.916
Total	18.930	15.275
Unsecured Loan	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
Citibank N.A Citibank N.A(2nd Loan) Citibank N.A(3rd Loan) Hdfc Bank Ltd Kotak Mahindra Bank Limited American Express Bank Limited Cholamandalam Dbs Finance Limited Cholamandalam Dbs Finance Limited Cholamandalam Dbs Finance Limited(Tds Recoverable) Indiabulls Credit Services Limited Indiabulls Credit Services Limited(Tds Recoverable) Ing Vysya Bank All The Above Loans Have Been Received On The Personal Guarantee Of One Of The Director.	0.000 0.374 0.584 0.357 0.356 0.000 0.182 0.745 0.000 0.339 (0.024) 0.502	0.271 0.687 0.000 0.692 0.653 0.031 0.349 1.065 (0.017) 0.605 (0.043) 0.716
Loan From Directors - Rupa R. Mistry - Rohitt D. Mistry	0.208 10.242	0.083 11.368
Total	13.868	16.462

Banking Relations :	--
Auditors :
Name :	Rashmikumar J Zaveri Chartered Accountant
Address :	Near, Top Floor, Plot 266, Near Gandhi Market, Sion East, Mumbai – 400052, Maharashtra, India
Associates/Subsidiaries :	NA

CAPITAL STRUCTURE

AS ON 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
991070	Equity Shares	Rs.10/- each	Rs.9.911 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		9.911	9.911	9.911
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(5.529)	(6.022)	(6.771)
NETWORTH		4.382	3.889	3.140
LOAN FUNDS
1] Secured Loans		18.930	15.276	18.562
2] Unsecured Loans		13.868	16.462	15.124
TOTAL BORROWING		32.798	31.738	33.686
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		37.180	35.627	36.826
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.694	18.149	8.105
Capital work-in-progress		8.667	7.170	16.800
INVESTMENT		0.500	0.412	0.412
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.686	6.691	6.684
	Sundry Debtors	9.231	14.939	14.573
	Cash & Bank Balances	0.772	0.385	0.285
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	15.305	7.119	6.154
Total Current Assets		30.994	29.134	27.696
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.840	18.657	16.187
	Other Current Liabilities	0.700	0.496	0.000
	Provisions	0.135	0.085	0.000
Total Current Liabilities		19.675	19.238	16.187
Net Current Assets		11.319	9.896	11.509
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		37.180	35.627	36.826

KEY RATIOS

PARTICULARS	31.03.2009	31.03.2008	31.03.2007
Debt Equity Ratio (Total Liability/Networth)	11.97	13.10	15.88
Current Ratio (Current Asset/Current Liability)	1.58	1.51	1.71

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

Particulars	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008	Rs. In Millions 31.03.2007
Sundry Creditors For Capital Goods (As Per List)	1.041	1.135	0.113
Sundry Creditors For Expenses(As Per List)	3.587	4.444	7.579
Sundry Creditors For Goods(As Per List)	14.212	13.078	8.495

Form 8:

Corporate identity number of the company	HOLOGRAPHIC SECURITY MARKING PRIVATE LIMITED
Name of the company	U74999MH1993PTC070298
Address of the registered office or of the principal place of business in India of the company	109, Blue Rose Industrial Estate, Western Highway, Borivali (West), Mumbai – 400066, Maharashtra, India
This form is for	Creation of charge
Type of charge	Immovable Property
Particular of charge holder	THE BASSEIN CATHOLIC CO-OPERATIVE BANK LIMITED
Nature of instrument creating charge	Deed of Simple Mortgage.
Date of instrument Creating the charge	04/12/2009
Amount secured by the charge	Rs.2.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 12.5% P.A With Monthly Rests And Penal Interest Of 2% P.A On The Defaulted Instalments. Terms of Repayment The Term Loan Of Rs.2.000 Millions Will Be Repayable In 36 Equated Monthly Installments Of Rs.0.660 Million Each. Margin Term Loan --20%
Short particulars of the property charged	All That Factory Premises Consisting Of 5 Galas Bearing No. 1 To 5 Totally Admeasuring 4310 Sq Ft. Built Up Area On The Ground Floor In The Building Known As Kirti Sagar Industrial Estate, Sagar Industrial Complex, Situated At Village Gokhivare, Tal Vasai, Dist Thane, With Proportionate Share Of Common Area And Facilities Appurtenance Of The Land Bearing Survey No 244, Hissa No 5, Admeasuring Aggregating 1-59-1, H.R. Within The Limits Of Gokhivare, Grampanchayat And Within The Regn. Sub Dist Of Vasai -3 Of Regn. Dist Thane.

FIXED ASSETS:

• Factory Premises
• Motor Car
• Plant and Machinery
• Fax Machine
• Refrigerator
• Air Conditioner
• Furniture and Fixtures
• Computer
• Trolly
• Water Filter
• Electrical Installation
• Water Cooler
• Boiler
• Power Pack Controller

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.44.04
UK Pound	1	Rs.72.19
Euro	1	Rs.63.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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		27

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.