MIRA INFORM REPORT

Report Date :

10.12.2011

IDENTIFICATION DETAILS

Name :	SIERRA APPLIANCES PRIVATE LIMITED
Registered Office :	12 A/5, WEA, Karol Bagh, New Delhi – 110005
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	31.03.1997
Com. Reg. No.:	55-086278
Capital Investment / Paid-up Capital :	Rs.3.892 Millions
CIN No.: [Company Identification No.]	U31909DL1997PTC086278
TAN No.: [Tax Deduction & Collection Account No.]	AAECS1162Q
Legal Form :	Private Limited Liability Company
Line of Business :	Dealers of Carrier Air Conditioners. Sales of Appliances, Interior Decoration and Job Work.
No. of Employees :	20 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 35000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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. Hemanshu Narang
Designation :	Director
Contact No.:	91-9810120065
Date :	08.12.2011
Name :	Mr. Santosh
Designation :	Accounts Manager
Contact No.:	91-9310189502
Date :	08.12.2011

LOCATIONS

Registered Office :	12 A/5, WEA, Karol Bagh, New Delhi – 110005, India
Tel. No.:	Not Available
Mobile No.:	91-9310189502 (Mr. Santosh) 91-9810120065 (Mr. Himanshu Narang)
Fax No.:	Not Available
E-Mail :	accounts.sierraappliances@gmail.com ypsinghandassociates@gmail.com sierra@easyliving.com hemanshun@yahoo.com sierra.appliances@gmail.com
Website :	http://www.sierraappliances.com
Area :	750 sq. ft.
Location :	Owned
Corporate Office :	D-25, Sector 10, Noida,- 201301, Uttar Pradesh, India
Tel. No.:	91-120-4334496
Fax No. :	91-120-2538966
Area :	2000 Sq. Fts
Location :	Owned
Factory :	H – 110, Sector – 63, Noida, Uttar Pradesh, India
Area :	11000 Sq. Fts
Location :	Owned

DIRECTORS

(AS ON 17.09.2010)

Name :

Mr. Hemanshu Narang

Designation :

Director

Address :

12 A/ 5, WEA, Karol Bagh, New Delhi- 110005, Delhi, India.

Date of Birth/Age :

06.04.1971

Qualification :

Post Graduate

Date of Appointment :

22.03.1999

DIN No.:

00851521

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U72200UR1990PTC012501	DOON OFFICE SYSTEMS PRIVATE LIMITED	Director	22/11/1990	22/11/1990	27/09/2011	Active	NO
2	U31909DL1997PTC086278	SIERRA APPLIANCES PRIVATE LIMITED	Director	22/03/1999	22/03/1999	-	Active	NO
3	U70101DL2010PTC203092	SIERRA REAL ESTATE INFRASTRUCTURE DEVELOPERS PRIVATE LIMITED	Director	24/05/2010	24/05/2010	-	Active	NO
4	U72900DL2010PTC203313	SIERRA INFOSOLUTIONS PRIVATE LIMITED	Director	29/05/2010	29/05/2010	-	Active	NO
5	U72300DL2010PTC210118	EXIGO IT SERVICES PRIVATE LIMITED	Director	2/11/2010	2/11/2010	9/5/2011	Active	NO

Name :

Mrs. Asha Narang

Designation :

Director

Address :

12 A/ 5, WEA, Karol Bagh, New Delhi- 110005, Delhi, India.

Date of Birth/Age :

13.01.1971

Qualification :

Post Graduate

Date of Appointment :

31.03.1997

DIN No.:

00851570

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U31909DL1997PTC086278	SIERRA APPLIANCES PRIVATE LIMITED	Director	31/03/1997	31/03/1997	-	Active	NO
2	U70101DL2010PTC203092	SIERRA REAL ESTATE INFRASTRUCTURE DEVELOPERS PRIVATE LIMITED	Director	24/05/2010	24/05/2010	-	Active	NO
3	U72900DL2010PTC203313	SIERRA INFOSOLUTIONS PRIVATE LIMITED	Director	29/05/2010	29/05/2010	-	Active	NO
4	U72300DL2010PTC210118	EXIGO IT SERVICES PRIVATE LIMITED	Director	2/12/2010	2/12/2010	9/5/2011	Active	NO

KEY EXECUTIVES

Name :	Mr. Santosh
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 17.09.2010)

Names of Shareholders	No. of Shares
Hemanshu Narang	189012
Asha Narang	182473
Sharad Chandra Narang	14907
Chandra Kala	2841

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Dealers of Carrier Air Conditioners. Sales of Appliances, Interior Decoration and Job Work.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Retailers, End Users and Corporate

· Fcs Software Limited

Suppliers :

· Carrier Km India (Private) Limited

No. of Employees :

20 (Approximately)

Bankers :

· Indian Bank-

IMT Manesar Branch, GA 4,5,7,8, Ground Floor, Raheja Square, Gurgaon- 122050, Haryana, India.

· Citizen Co-operative Bank Limited

E – 14, Sector 55, Noida, Uttar Pradesh, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Citizen Co-operative Bank O/d A/c	0.000	0.098
Citizen Co-operative Bank Term Loan	1.400	0.000
Indian Bank (Term Loan-756765970)	2.739	3.319
Indian Bank (Term Loan-706824879)	2.244	2.772
HDFC Bank Term Loan A/c	0.309	0.647
HDFC Bank- Loan A/c 2	0.441	0.600
Total	7.133	7.436

Banking Relations :	--
Auditors :
Name :	Y.P. Singh and Associates Chartered Accountant
Address :	C- 316 A, Sector 10, Noida- 201301, Uttar Pradesh, India.
Tel No. :	91-120-2524524/ 4241808
Fax No. :	91-120-2538002
Email :	ypsinghassociates@rediffmail.com
PAN No.:	AAAFY4215F

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Share	Rs.10/- each	Rs.4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18535	Equity Share	Rs.10/- each	Rs.0.185 Million
	20 Bonus Shares Issued for 1 Share		Rs.3.707 Millions
	Total		Rs.3.892 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		3.892	0.185	0.185
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		4.836	7.143	3.742
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		8.728	7.328	3.927
LOAN FUNDS
1] Secured Loans		7.133	7.436	8.666
2] Unsecured Loans		0.000	0.000	2.293
TOTAL BORROWING		7.133	7.436	10.959
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		15.861	14.764	14.886
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.841	10.603	10.369
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.050	0.015	0.015
DEFERREX TAX ASSETS		0.080	0.005	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2.905	5.411	2.856
	Sundry Debtors	2.923	0.805	0.857
	Cash & Bank Balances	1.043	0.233	0.122
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.644	6.318	4.085
Total Current Assets		11.515	12.767	7.920
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	0.808	0.839	2.518
	Other Current Liabilities	3.549	6.062
	Provisions	1.268	1.725	0.900
Total Current Liabilities		5.625	8.626	3.418
Net Current Assets		5.890	4.141	4.502
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		15.861	14.764	14.886

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	35.042	21.883	32.892
		Other Income	2.645	5.177	3.642
		TOTAL (A)	37.687	27.060	36.534
Less	EXPENSES
		Cost of Goods Sold	24.550	13.953	24.851
		Job Work Expenses	3.753	2.499	2.912
		Administrative and Other Expenses	5.357	3.921	3.816
		TOTAL (B)	33.660	20.373	31.579
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.027	6.687	4.955
Less	FINANCIAL EXPENSES (D)		0.950	1.057	0.758
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.077	5.630	4.197
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.372	1.205	0.618
	PROFIT BEFORE TAX (E-F) (G)		1.705	4.425	3.579
Less	TAX (H)		0.305	0.929	0.763
	PROFIT AFTER TAX (G-H) (I)		1.400	3.496	2.816
	Earnings Per Share (Rs.)		3.60	--	--

Particulars	31.03.2011
Sales Turnover (Approximately)	50.000

The above information has been parted by Mr. Hemanshu Narang

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.71	12.92	7.71
Net Profit Margin (PBT/Sales)	(%)	4.87	20.22	10.88
Return on Total Assets (PBT/Total Assets}	(%)	7.98	18.93	19.57
Return on Investment (ROI) (PBT/Networth)		0.20	0.60	0.91
Debt Equity Ratio (Total Liability/Networth)		1.46	2.19	3.66
Current Ratio (Current Asset/Current Liability)		2.05	1.48	2.32

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	-------
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	Yes
Profitability for last three years	No
Reasons for variation <> 20%	No
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	-------
Major Suppliers	Yes
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	No
Market Information	-------
Litigations that the firm/ Promoters Involved in	-------
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-------
Buyer visit details	-------
Financials, if provided	No
Incorporation details is applicable	-------
Last Accounts filed at ROC	-------
Major Shareholders, if available	-------

PERFORMANCE OF THE COMPANY

The company has achieved a turnover of Rs.37.600 millions as against Rs.27.000 Millions for the last financial year, showing a increase by 39% in the year 2009-10. The net Profit for the current year is Rs.1.400 Millions as compared profit of Rs.3.496 Millions for the last year.

TRADE REFERENCE:

· Fcs Software Limited

· Carrier Km India (Private) Limited

Bankers Charges Report as per Registry

Name of the company	SIERRA APPLIANCE PRIVATE LIMITED
Presented By	Mr. Hemanshu Narang
1) Date and description of instrument creating the change	18.09.2004 Agreement for loan/ CC/OD Form for Equitable Mortgage
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 0.600 Million
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Equitable Mortgage on Industrial Land and Building situated at Plot No. D-25, Sector-10, Noida, Uttar Pradesh, India
4) Gist of the terms and conditions and extent and operation of the charge.	Overdraft facility for one year Rate of Interest@14%p.a.
5) Name and Address and description of the person entitled to the charge.	Citizen Co-Operative Bank C-56/9, Sector-62, Noida, Uttar Pradesh, India
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA

Corporate identity number of the company	U31909DL1997PTC086278
Name of the company	SIERRA APPLIANCE PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	12 A/ 5, WEA, Karol Bagh, New Delhi- 110005, Delhi, India sierra.appliances@gmail.com
This form is for	Modification of charge
Charge identification number of the modified	10015887
Type of charge	Immovable Property Book Debts Movable Property (not being pledge) Floating Charge Others: Stocks, Book Debts and Current and Fixed Assets
Particular of charge holder	Indian Bank- GA 4,5,7,8, Ground Floor, Raheja Square, IMT Manesar Branch, Gurgaon- 122050, Haryana, India. gselvam.ganesan@gmail.com
Nature of description of the instrument creating or modifying the charge	Letter from party to Bank confirming extension of Equitable mortgage dt. 10-4-2010
Date of instrument Creating the charge	10.04.2010
Amount secured by the charge	Rs.12.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest as per sanction terms and bank norms Terms of Repayment: repayment as per Bank norms Margin: margin as per Bank norms Extent and Operation of the charge: First charge by way of hypothecation of stocks, book debt, plant and machinery and current and fixed assets of the company and EM of land and building at Industrial Plot No.110 Sector 63, Phase-III Noida, District Gautam Budhha Nagar, Uttar Pradesh in the name of the company is to secure the Ind. Mortgage-I Rs.4.000 Millions Ind. Mortgage-II Rs.40Lac and OCC Limit Rs.4.500 Millions Total Rs.12.500 Millions sanctioned to the company
Short particulars of the property charged	First charge by way of hypothecation of stocks, book debt, plant and machinery and current and fixed assets of the company EM of land and building at Industrial Plot No.110 Sector 63,Phase-III Noida, Dist. Gautam Budhha Nagar, Uttar Pradesh in the name of the company
Particulars of the present modification	The aggregate credit facilities sanctioned to the company to the extent of Rs.12.500 Millions is also secured by extension of EM of land and building at Industrial Plot No.110 Sector 63, Phase-III Noida, District. Gautam Budhha Nagar, Uttar Pradesh in the name of the company vide Letter from party to Bank confirming extension of Equitable mortgage dated 10-4-2010. Other terms and conditions remain same.

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.51.77
UK Pound	1	Rs.81.32
Euro	1	Rs.69.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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		45

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.