MIRA INFORM REPORT

Report Date :

11.04.2011

IDENTIFICATION DETAILS

Name :	GRAFFITI (INDIA) PRIVATE LIMITED
Registered Office :	F / 69 Ratilal Parkst, St. Xaviers School Road, Ahmedabad-380014, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	09.02.2001
Com. Reg. No.:	04-39252
CIN No.: [Company Identification No.]	U26916GJ2001PTC039252
TAN No.: [Tax Deduction & Collection Account No.]	AHMG00939B/ AHMG01272F
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Designer Tiles.

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 130000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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 PARTED BY

Name :	Mr. Jayendra Panchal
Designation :	Finance Manager
Contact No.:	91-9428245869
Date :	09.04.2011

LOCATIONS

Registered Office :	F / 69 Ratilal Parkst, St. Xavier School Road, Ahmedabad-380014, Gujarat, India
Tel. No.:	91-79-26406811/ 12/ 13
Mobile N.:	91-9428245869 (Mr. Jayendra Panchal)
Fax No.:	91-79-26405289
E-Mail :	graffiti@graffititiles.com accounts@graffititiles.com pradip@grafititiles.com
Website :	www.graffititiles.com
Area :	2000 sq. ft.
Location :	Owned
Corporate Office :	602/603, 6^th Floor, ‘Rembrandt’, C G Road, Ahmedabad-380005, Gujarat, India
Tel. No.:	91-79-26406811/ 12/ 13
Fax No.:	91-79-26405289
Area :	6000 sq. ft. [Rented]
Warehouse :	123, Prime Logistics, Park Building, Sarkej Bavla Highway, Village Navapura, Taluka – Sanand, Ahmedabad, Gujarat, India
Area :	Rented
Dealers Network :	Located at : · Agra · Bangalore · Chandigarh · Dehradun · Delhi · Ghaziabad · Goa · Hyderabad · Indore · Jaipur · Kankavali · Kolkata · Lucknow · Mangalore · Mumbai · Nasik · Pune · Rajkot · Surat · Vadodara · Vapi
Branches :	Located at : Bangalore · Mumbai · Pune · Delhi

DIRECTORS

As on 30.09.2010

Name :	Mrs. Pallavika Mahasukhlal Shah
Designation :	Director
Address:	304, Rajvi, Rajvansh Society, Bodakdev, Ahmedabad-380054, Gujarat, India
Date of Birth/Age :	04.11.1944
Qualification :	Graduates
Date of Appointment :	09.02.2001
Din No.:	00051397
Name :	Mrs. Kalpu Bhavin Shah
Designation :	Director
Address:	701, Rajvi, Rajvansh Society, Bodakdev, Ahmedabad-380054, Gujarat, India
Date of Birth/Age :	07.12.1968
Qualification :	Graduates
Date of Appointment :	09.02.2001
Din No.:	00051422
Name :	Mrs. Rupa Sachin Shah
Designation :	Director
Address:	304, Rajvi, Rajvansh Society, Bodakdev, Ahmedabad-380054, Gujarat, India
Date of Birth/Age :	08.03.1969
Qualification :	Graduates
Date of Appointment :	09.02.2001
Din No.:	00051444

KEY EXECUTIVES

Name :	Mr. Jayendra Panchal
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Pallavikaben Mahasukhlal Shah	400000
Rupa Sachin Shah	200000
Kalpu Bhavin Shah	200000
Sachin Mahasukhlal Shah	112250
B. M. Shah-Huf	5000
Mahasukhlal Nathalal Shah	112250
M. N. Shah-Huf	103250
Sachin Mahasukhlal Shah	112250
S. M. Shah-HUF	5000
Total	1250000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Designer Tiles.
Brand Names :	“Graffiti”
Imports :
Products :	Plain Tiles
Countries :	Italy
Terms :
Selling :	L/C / Cash / Credit (30 days / 60 days / 90 days)
Purchasing :	Cash / Credit (30 days / 60 days / 90 days)

GENERAL INFORMATION

Customers :

Wholesalers, Retailers, End Users and OEM’s

No. of Employees :

200 (Approximately)

Bankers :

• Corporation Bank, Navrangpura, Ahmedabad-380009, Gujarat, India
• Bank of Baroda, Bhadra Branch, Near Parekhs, Laldarwaja, Ahmedabad-380001, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Working Capital Facilities
From Bank of Baroda	68.125	71.040
Domestic LC Limit (Italica Floor Tiles) (Secured against hypothecation of stocks, personal guarantee of three directors and mortgage of various properties.)	7.462	0.000
Total	75.587	71.040
Unsecured Loan
From Directors	3.299	0.488
From Relatives	3.518	4.136
Dealer Deposit	8.605	5.374
Dealer Deposits (Interest Free)	5.314	4.700
Others	4.933	10.540
Total	25.669	25.238

Banking Relations :	--
Auditors :
Name :	Yogendra and Company Chartered Accountants
Address :	202-203, Benkesha Bus Stop, Navrangpura, Ahmedabad-380009, Gujarat, India
Associates/Subsidiaries :	· Shree Ambica Decoprints Private Limited Address : 766/772, Rakanpur, Sola-Santej Road, Taluka Kalol – 382721, District Mehsana Tel No.: 91-2764-286961 / 62 Fax No.: 91-2764-286107 Activity : Manufacturers and Importers of Decorative Ceramic Tiles · Shaleen Ceramics [Partnership] Address : 602/603, 6^th Floor, ‘Rembrandt’, C G Road, Ahmedabad – 380005, Gujarat, India Activity : Manufacturers and Importers of Decorative Ceramic Tiles

CAPITAL STRUCTURE

As on 30.09.2010

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
1250000	Equity Shares	Rs.10/- each	Rs.12.500 Millions

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		12.500	12.500	12.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		22.300	21.891	29.057
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		34.800	34.391	41.557
LOAN FUNDS
1] Secured Loans		75.587	71.040	61.584
2] Unsecured Loans		25.669	25.238	37.352
TOTAL BORROWING		101.256	96.278	98.936
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		136.056	130.669	140.493
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.349	16.274	18.566
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.015
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	104.746	116.691	111.916
	Sundry Debtors	43.248	40.324	48.567
	Cash & Bank Balances	8.066	0.939	3.199
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	17.311	16.780	7.735
Total Current Assets		173.371	174.734	171.417
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	36.926	44.016	39.482
	Provisions	14.738	16.598	10.573
Total Current Liabilities		51.664	60.614	50.055
Net Current Assets		121.707	114.120	121.362
MISCELLANEOUS EXPENSES		0.000	0.275	0.550
TOTAL		136.056	130.669	140.493

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Gross Sales Revenue	355.512	324.638	176.747
		Other Income	3.409	0.270	1.495
		TOTAL (A)	358.921	324.908	178.242
Less	EXPENSES
		Office Expenses
		Administrative Expenses	342.287	313.719	157.852
		Advertising Expenses
		TOTAL (B)	342.287	313.719	157.852
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		16.634	11.189	20.390
Less	FINANCIAL EXPENSES (D)		13.466	15.053	12.025
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.168	(3.864)	8.365
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.760	3.168	4.194
	PROFIT BEFORE TAX (E-F) (G)		0.408	(7.032)	4.171
Less	TAX (H)		0.000	0.134	1.558
	PROFIT AFTER TAX (G-H) (I)		0.408	(7.166)	2.613
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(6.723)	0.443	0.433
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	NA	1.550
		Proposal Dividend	NA	NA	0.900
		Tax on Dividend	NA	NA	0.153
	BALANCE CARRIED TO THE B/S		(6.315)	(6.723)	0.443
	IMPORTS
		Raw Materials	9.055	16.000	6.760
	Earnings Per Share (Rs.)		0.33	(5.73)	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.11	(2.21)	1.47
Net Profit Margin (PBT/Sales)	(%)	0.11	(2.17)	2.36
Return on Total Assets (PBT/Total Assets}	(%)	0.22	(3.68)	2.19
Return on Investment (ROI) (PBT/Networth)		0.01	(0.20)	0.10
Debt Equity Ratio (Total Liability/Networth)		4.39	4.56	3.58
Current Ratio (Current Asset/Current Liability)		3.36	2.88	3.42

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors: Not Available

THE YEAR UNDER RETROSPECT:

The company has strengthened the foot hold in the market during the current year. It focused on broad-basing the network and marketing the best quality products with consumer service orientation at competitive rates. The company in fact excelled the projections and has strengthened the market position. This has been achieved through popularizing the brand name of the designs followed up by effective and pleasant display and demonstrations at various centers in India. The products of the company are well accepted and the brand “Graffiti” is considered to be the premier product in the segment. There were both qualitative improvement and quantitative growth through the year. Within a short span of its existence the company is considered as a leading vibrant force in tiles and ceramic designing market.

The company ha setup Product display Shoppe at Mumbai in December,2006 with a view to develop product awareness, quality design and product images and option of selective buying to niche customers, architects and project consultants. This has proved to be strategic move for market leadership and Brand name development. Inspired by the success of the show room the company is planning to set up similar showrooms in metro city in a phased manner.

With strong network they can definitely expect still better results and steady growth for the years to come. Based on the performance of the Company during the first four months of the year 2010-11 the company is confident for accelerated growth and even the higher turnover and profitability during the year 2010-11.

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U26916GJ2001PTC039252
Name of the company	GRAFFITI (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	F / 69 Ratilal Parkst, St. Xavier School Road, Ahmedabad-380014, Gujarat, India
Type of charge	Book Debts Movable Property (not being pledge)
Particular of charge holder	Bank of Baroda, Bhadra Branch, Near Parekhs, Laldarwaja, Ahmedabad-380001, Gujarat, India
Email	bhadra@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Joint Composite Instrument Of Hypothecation of Goods, Bookdebts, Movable Machinery and Vehicles for limit as under
Date of instrument Creating the charge	14.03.2008
Amount secured by the charge	Rs.146.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Applicable @ 1.00 Above BPLR i.e. 12.75% Concessional @0.25% above BPLR i.e. 13.00% at present subject to change in BPLR and Credit rating from time to time. Concession in the rate of interest shall be applicable for 12 months from date of sanction or next review date whichever is earlier. Terms of Repayment as per agreement Margin 30% on Stocks 40% on Book Debts. Extent and Operation of the charge The Bank shall have exclusive charge on the assets of the company. The Break up of over all limit is as under M/s. Shree Ambica Decoprints Private Limited: Rs. 8.500 Millions. M/s. Graffiti (India) Private Limited : Rs.100.000 Millions M/s. Shaleen Ceramics : Rs. 37.500 Millions. Total Limit : Rs. 146.000 Millions.

Fixed Assets:

· Machinery

· Furniture

· Office Equipment

· Computer

· Storage Racks

· Dies

· Vehicles

· Electric Installation

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.72.20
Euro	1	Rs.63.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.