MIRA INFORM REPORT

Report Date :

17.12.2011

IDENTIFICATION DETAILS

Name :	ARGENT AUSTRALIA PTY. LTD.

Registered Office :	18 Wandoo Street Fortitude Valley Queensland 4006

Country :	Australia

Financials (as on) :	30.06.2010

Date of Incorporation :	25.05.1982

Com. Reg. No.:	010387809

Legal Form :	Australian Proprietary Company

Line of Business :	Retail sales and distributor of bathroom ware and accessories.

No. of Employees :	_{72 employees}

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	_{USD 1,600,000}
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

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)

Australia

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

IDENTIFICATION DETAILS

Verified Address

Subject name : ARGENT AUSTRALIA PTY. LTD.

Business address : 18 Wandoo Street

Town : Fortitude Valley

Province : Queensland

Zip/postal code : 4006

Country : Australia

Tel : +61 7 32526100

Fax : +61 7 32526162

Email : ac@argentaust.com.au

Website : www.argentaust.com.au

Registered address : C/o BDO

Level 18, 300 Queen Street

Town : Brisbane

Province : Queensland

Zip/postal code : 4000

Country : Australia

Postal address : P.O. Box 2093

Town : Fortitude Valley

_{Province : Queensland}

Zip/postal code : 4006

_{Country :
Australia}

SUMMARY DETAILS

Executive Summary

Date founded or registered : 25/05/1982

Legal form : Australian Proprietary

Company Chief executive : Lachlan Parry MacFarlane

Issued & paid up capital : AUD 1,400,044

Sales turnover : AUD 35,160,798 (Non consolidated 12 months, 30/06/2010)

Net income : AUD 2,266,202 (Non consolidated 12 months, 30/06/2010)

Total fixed assets : AUD 23,099,546 (Non consolidated 12 months, 30/06/2010)

Line of business : Retail sales and distributor of bathroom ware and accessories.

_{Staff employed : 72 employees}

CREDIT RISK OPINION

Company Analysis

Country risk : Country risk is minimal

Operation trend : Operational trend is steady

Management experience : Management is adequately experienced

Financial performance : Financial performance is good

Organization structure : Organizational structure is stable

Detrimental : No detrimental found

Payment history : No payment delays noted

_{Credit amount suggestion : USD 1,600,000}

_{Credit amount asked : Not described.}

STATUTORY DETAILS

Registry Data

Registration date : 25/05/1982

Legal form : Australian Proprietary Company

Registration no Australian Company Number: 010387809

Registered authority : Australian Securities & Investments Commission

Fiscal/ Tax no : Australian Business Number: 42010387809

Registry status : Live/Active

Previous name : AGENTS AUSTRALIA PTY. LTD.

EGARBOURNE PTY LTD (initial)

_{Change of legal form : None reported.}

MANAGEMENT / DIRECTORS

Key Management

Name : Lachlan Parry MacFarlane

Designation : Managing Director

Name : Terence Dominic McGrath

Designation : Director

Name : Robin Parry MacFarlane

_{Designation : Director}

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

Appointments

Name : Lachlan Parry MacFarlane

Designation : Director and Company Secretary

Appointment date : 24/01/92

Address : 18 Wellington Street

Manly, QLD 4179

Australia

Biography : Born on 07-01-1963 in Brisbane, Queensland, Australia.

Name : Terence Dominic McGrath

Designation : Director

Appointment date : 28/07/05

Address : 1 Todd Street

Ashgrove, QLD 4060

Australia

Biography : Born on 04-10-1964 in Southport, Queensland, Australia.

Name : Robin Parry MacFarlane

Designation : Director

Appointment date : 01/07/82

Address : 5 Valetta Street

Manly, QLD 4179

Australia

Biography : Born on 20-05-1939 in Brisbane, Queensland, Australia.

Name : Judith Adele MacFarlane

Designation : Company Secretary

Appointment date : 24/01/92

_{Address : 5 Valetta Street}

Manly, QLD 4179

Australia

Biography : Born on 25-03-1940 in Brisbane, Queensland, Australia.

Staff employed : 72 employees

Key Advisors

Auditors : BDO

Level 18, 300 Queen Street

Brisbane, QLD 4000

_Australia

SHARE CAPITAL

Composition

Authorized Capital : AUD 1,400,044

No of shares : 45 H Class Redeemable Preference Shares / 20 I Class Redeemable Preference

Shares / 20 J Class Redeemable Preference Shares / 400 Ordinary Shares

Share par value : No par value for H Class Redeemable Preference Share / AUD 1 for I Class Redeemable Preference Share / AUD 1 for J Class Redeemable Preference Share / AUD 0.01 for Ordinary Share

Issued capital : AUD 1,400,044

_{Paid up capital : AUD 1,400,044}

OWNERSHIP / SHAREHOLDERS

How listed : Full List

Composition

Shareholder name : Jointly held by Terence Dominic McGrath & Johanne McGrath

Address : 1 Todd Street

Ashgrove, QLD 4060

Australia

No. of shares : 45 H Class Redeemable Preference Shares

Shareholder name : JILAW PTY LTD

Address : 18 Wellington Street

Manly, QLD 4179

Australia

No. of shares : 20 I Class Redeemable Preference Shares

Shareholder name : MACFARLANE INVESTMENTS PTY. LTD.

Address : 5 Valetta Street

Manly, QLD 4179

Australia

No. of shares : 20 J Class Redeemable Preference Shares / 200 Ordinary Shares

Shareholder name : Lachlan Parry MacFarlane

Address : 18 Wellington Street

Manly, QLD 4179

Australia

_{No. of shares : 200 Ordinary Shares}

RELATED COMPANIES & CORPORATE AFFILIATIONS

Structure

Related companies and corporate affiliations comments : None reported.

BANK & MORTGAGES

Bank Details

Name of bank : National Australia Bank Limited

Address : Australia

Account details : Current Account

Comments : It is generally not the policy of local banks to provide credit status information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

_Mortgages: Satisfied Charge Details:

ASIC Charge Number: 232421

Date Registered: 28-04-1983

Charge type: Both Fixed & Floating

Date Created: 12-04-1983

Chargees Name: CARRINGTON CONFIRMERS PTY. LTD.

ASIC Charge Number: 232442

Date Registered: 19-09-1988

Charge type: Both Fixed & Floating

Date Created: 19-08-1988

Chargees Name: NATIONAL AUSTRALIA BANK LIMITED

ASIC Charge Number: 232459

Date Registered: 19-03-1990

Charge type: Both Fixed & Floating

Date Created: 12-03-1990

Chargees Name: QUEENSLAND INDUSTRY DEVELOPMENT CORPORATION Unsatisfied Charge Details:

ASIC Charge Number: 556784

Date Registered: 06-09-1996

Charge type: Fixed

Date Created: 20-08-1996

Chargees Name: ESANDA FINANCE CORPORATION LIMITED

ASIC Charge Number: 556785

Date Registered: 06-09-1996

Charge type: Fixed

Date Created: 20-08-1996

Chargees Name: ESANDA FINANCE CORPORATION LIMITED

ASIC Charge Number: 558468

Date Registered: 18-09-1996

Charge type: Fixed

Date Created: 06-09-1996

_{Chargees Name: ESANDA FINANCE
CORPORATION LIMITED}

ASIC Charge Number: 571005

Date Registered: 16-12-1996

Charge type: Both Fixed & Floating

Date Created: 28-11-1996

Chargees Name: NATIONAL AUSTRALIA BANK LIMITED

ASIC Charge Number: 662910

Date Registered: 15-09-1998

Charge type: Fixed

Date Created: 25-08-1998

Chargees Name: ESANDA FINANCE CORPORATION LIMITED

ASIC Charge Number: 663073

Date Registered: 16-09-1998

Charge type: Fixed

Date Created: 25-08-1998

Chargees Name: ESANDA FINANCE CORPORATION LIMITED

ASIC Charge Number: 663074

Date Registered: 16-09-1998

Charge type: Fixed

Date Created: 25-08-1998

Chargees Name: ESANDA FINANCE CORPORATION LIMITED

Legal Fillings

Bankruptcy fillings : None reported.

Court judgements : None reported.

Tax liens : None reported.

Others : None reported.

FINANCIAL DATA

Description

Source of financial statement : Commercial Registry Filings

Financial statement date : 30/06/10

Type of accounts : Full audited

Currency : Australia Dollar (AUD)

Exchange rate : 1 USD = AUD 1.00 as of 15-12-2011

_{Summarized Financial Information}

Consolidation type :	Non Consolidated	Non Consolidated
Currency :	Australia Dollar (AUD)	Australia Dollar (AUD)
Denomination :	(x1) One	(x1) One
Date of financial year end :	30/06/10	30/06/09
Length of accounts :	12 months	12 months
Sale turnover / Income :	35,160,798	38,931,041

Profit before tax :	3,267,989	3,453,857
Net income :	2,266,202	2,394,154
Non current assets :	2,498,634	2,807,627
Current assets :	20,600,912	23,752,047
Inventories :	10,996,107	14,806,038
Total assets :	23,099,546	26,559,674
Current liabilities :	5,934,060	6,949,347
Non current liabilities :	538,206	2,550,185
Total liabilities :	6,472,266	9,499,532
Share equity :	16,627,280	17,060,142
Retained earning :	15,227,236	15,660,098

OPERATION DETAILS

Main activities : The Subject is engaged in the retail sales and distribution of bathroom ware and accessories.

Product & services : Tapware, showers, basins, baths, whisper whirlpools and toilet suites, shower trays, bathroom collection and accessories

Brand : Argent, Grohe (sanitary fittings), Villeroy & Boch, Bette and Pom D'or

(bathroom accessories)

Purchases

International : Asia, Europe, United States

Sales

Local : Yes

International : New Zealand

Property & Assets

Premises : The Subject operates from premises located at the verified heading address consisting of showroom, warehouse and administrative office.

Branches : In addition, the Subject operates from branch showrooms located at:

80 Abercrombie Street

Chippendale, NSW 2008

Australia

Tel: +61 2 83945800

198 Coventry Street

South Melbourne, VIC 3205

Australia

Tel: +61 3 92501600

1/40 Collingwood Street

Osborne Park WA 6017

Australia

_{Tel: +61 8
94450500}

SUMMARIZED COUNTRY RISK

Gross Domestic Products (GDP) & Economic

Overview Central bank : Reserve Bank of Australia

Reserve of foreign exchange & gold : US$ 41.385 billion

Gross domestic product - GDP : US$ 1.235 trillion

GPP (Purchasing power parity) : 918.529 billion of International dollars

GDP per capita - current prices : US$ 55,590

GDP - composition by sector : agriculture: 4.1% industry: 26% services: 70%

Inflation : 2008: 4.4%

2009: 1.8%

2010: 2.8%

Unemployment rate : 2008: 4.2%

2009: 5.6%

_{2010: 5.2%}

Public debt

(General Government gross debt as a % GDP) : 2008: 11.6%

2009: 17.6%

_{2010: 22.3%}

Government bond ratings : Standard & Poor's: AAA/Stable/A-1+

Moody's rating: Aaa

_{Moody's outlook: STA}

Market value of publicly traded shares : US$1.258 trillion

Largest companies in the country : Commonwealth Bank (Banking), BHP Billiton (Materials), Westpac Banking Group (Banking), Rio Tinto (Materials), National Australia Bank (Banking), ANZ Banking (Banking), Telstra (Telecommunications)

Trade & Competitiveness Overview

Total exports : US$210.7 billion

Exports commodities : coal, iron ore, gold, meat, wool, alumina, wheat

Total imports : US$187.2 billion

Imports commodities : machinery and transport equipment, computers and office machines, telecommunication equipment and parts, crude oil and petroleum products

Export - major partners : Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

5.5%, UK 4.2%

Import - major partners : China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany 5.2%, UK 4.3%, Thailand 4.2%

FDI Inflows : 2007: US$45,477 million

2008: US$46,722 million

2009: US$22,572 million

_{FDI Outflows : 2007: US$16,822 million}

2008: US$32,819 million

2009: US$18,426 million

Best countries for doing business: 10 out of 183 countries

Global competitiveness ranking : 16 (ranking by country on a basis of 133, the first is the best)

Country and Population Overview

Total population : 22.23 million

Total area : 7,692,024 km2

Capital : Canberra

_{Currency : Australian dollars (AUD)}

Internet users as % of total population: 74.00%

PAYMENT HISTORY

Purchase Term

Local : Prepayment, Credit 30-60 days

International : L/C, Prepayment, Credit 30-60 days

Sales Term

Local : Cash, Prepayment, Credit 30-60 days

International : Prepayment, Credit 30-60 days

Trade Reference/ Payment

Behaviour

Comments : As local and international trade references were not supplied, the Subject's payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

Investigation Note

Sources : Interviews and material provided by the Subject

: Other official and local business sources

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.81
UK Pound	1	Rs.82.00
Euro	1	Rs.68.81

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	--

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%)

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.