MIRA INFORM REPORT

Report Date :

17.01.2011

IDENTIFICATION DETAILS

Name :	LOTUS KALEEN PRIVATE LIMITED
Registered Office :	Ahdus Hotel, Amnexe Hotel, Ahdus Reisidency Road, Sringar-180001, Jammu and Kashmir
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	12.01.1993
Com. Reg. No.:	07-1337
CIN No.: [Company Identification No.]	U17302JK1993PTC001337
Legal Form :	Private Limited Liability Company.
Line of Business :	Importer of Floorings.

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 42000
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 – 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 :	Ms. Jasi
Designation :	Accounts Department
Date :	04.01.2011

LOCATIONS

Registered Office :	Ahdus Hotel, Amnexe Hotel, Ahdus Reisidency Road, Sringar-180001, Jammu and Kashmir, India
E-Mail :	lkaleen@gmail.com skdudha@gmail.com
Area :	Rented
Corporate Office :	M-59, 2^nd Floor, Lajpat Nagar-II, New Delhi-110024, India
Tel. No.:	91-11-29839190/ 29838085/ 29838919
Fax No.:	91-11-29832382

DIRECTORS

As on 29.09.2009

Name :	Mr. Avtar Bhat
Designation :	Whole Time Director
Address :	A/B-3212, Vasant Kunj, New Delhi-110070, India
Date of Birth/Age :	22.01.1953
Date of Appointment :	12.01.1993
Name :	Mrs. Shobha Bhat
Designation :	Whole Time Director
Address :	A/B-3212, Vasant Kunj, New Delhi-110070, India
Date of Birth/Age :	15.11.1956
Date of Appointment :	01.04.1994
Name :	Mr. Adhir Bhat
Designation :	Director
Address :	A/B-3212, Vasant Kunj, New Delhi-110070, India
Date of Birth/Age :	16.07.1980
Date of Appointment :	30.03.2007
Name :	Mr. Ashim Bhat
Designation :	Director
Address :	A/B-3212, Vasant Kunj, New Delhi-110070, India
Date of Birth/Age :	18.11.1985
Date of Appointment :	30.03.2007
Name :	Mr. Ashok Raina
Designation :	Director
Address :	39, 2^nd Floor, Mohammad Pur, New Delhi-110066, India
Date of Birth/Age :	26.09.1951
Date of Ceasing:	20.03.2007

KEY EXECUTIVES

Name :	Ms. Jasi
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2009

Names of Shareholders	No. of Shares
Avtar Bhat	12750
Shobha Bhat	6250
Adhir Bhat	3000
Ashim Bhat	3000
Total	25000

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2009

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Importer of Floorings.
Products :	· Carpets · Mats · Rugs
Imports :
Products :	Flooring
Countries :	Germany Belgium China
Terms :
Selling :	Cash and Credit
Purchasing :	L/C, Cash and credit

GENERAL INFORMATION

Suppliers :

· A G Cargo

· Airte

· A N Textiles

· Citi Bank Cr. Card

· Décor International

· Diners Clun Credit Card

· Egger Retail Products

· First Flight Courier

· Euro Flooring Private Limited

· HDFC Credit Card

· Hello Mineral Water

· ICICI Credit Card

· Karuna Fab

· Mahanta PD

· Mai Impex

· Manjeet International

· Parquet Floor

· Pharmaceutical

· Pardee Internatioanl Inc

· Profilignum

· Radhey Shyam

· SBI Credit Card

· S K Dudha and Comapy

· United Exim

· Vishal Plastic

Customers :

Wholesalers, Retailers, End Users and OEM’s

· A B Carpets

· ACME Cold Chain Solutions

· Ajay Enterprises

· Ambience Hospitality Private Limited

· Anubhav Agency

· Architects the Living

· Ashish Enterpirse

· Bhat Furnishing House

· Bhola Interrior

· Capt Raina

· Chinar International

· City Deconr

· DEPA India

· Designo Concept

· Empire Safe

· Excell

· Geentajali Furnishers

· Geniour Int.

· HG Retail

· Home Floor and Furnishing

· ITE Group

· India International Company

· Jaypee Carpets

· Jupiter Carpet

· Kalakar Agencies

· Kay International

· Liberty Shoes Limited

· Mahajan Carpets and Flooring

· Maharaja Arts Private Limited

No. of Employees :

Approximately 30 (in office)

Bankers :

Jammu and Kashmir Bank Limited, (Corporate Headquarters), M.A. Road, Srinagar, Kashmir Branch Office, Connaught Place, New Delhi, Jammu and Kashmir-190001, India

Facilities :

Secured Loans	31.03.2009 Rs. In Millions	31.03.2008 Rs. In Millions
Cash Credit Account- The J and K Bank Limited, New Delhi (Secured against hypothecation of assets and personal guarantees of directors)	16.556	26.659
Car loan form the J and K Bank Limited, New Delhi (Secured against hypothecation of the car)	0.824	0.017
Loan against Fixed Deposit / Margin Money	2.339	2.162
Total	19.719	28.838
Unsecured Loans	31.03.2009 Rs. In Millions	31.03.2008 Rs. In Millions
From Directors
Shobha Bhatt	0.002	0.017
Avtar Bhat	0.797	0.017
Total	0.799	0.034

Banking Relations :	--
Auditors :
Name :	S K Dudha and Company Chartered Accountant
Address :	A-1/132, LGF Safdarjung Enclave, New Delhi-110029, India
Tel. No.:	91-11-26106222/ 26167732/ 26172290
Fax No.:	91-11-26105946
E-Mail :	skdudha@gmail.com

CAPITAL STRUCTURE

As on 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs. 100/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value		Amount
25000	Equity Shares	Rs. 100/- each	Rs. 2.500 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		2.500	2.500	2.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8.224	4.918	2.451
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		10.724	7.418	4.951
LOAN FUNDS
1] Secured Loans		19.719	28.838	23.225
2] Unsecured Loans		0.799	0.034	0.042
TOTAL BORROWING		20.518	28.872	23.267
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		31.242	36.290	28.218
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.215	0.712	0.881
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.101	0.070	0.064
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	20.456	14.707	13.037
	Sundry Debtors	32.010	30.200	19.097
	Cash & Bank Balances	5.224	4.856	3.957
	Other Current Assets	3.553	5.009	0.460
	Loans & Advances	1.813	1.627	2.611
Total Current Assets		63.056	56.399	39.162
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	25.247	12.931	8.852
	Other Current Liabilities	7.282	5.073	2.199
	Provisions	1.601	2.887	0.838
Total Current Liabilities		34.130	20.891	11.889
Net Current Assets		28.926	35.508	27.273
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		31.242	26.290	28.218

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income (Turnover)	93.890	114.725	61.866
		Other Income	NA	NA	0.153
		TOTAL (A)	NA	NA	62.019
Less	EXPENSES
		Purchase Less Returns			46.115
		Direct Expenses			5.312
		Administrative Expenses	NA	NA	3.072
		Selling, Distribution and Marketing Expenses			2.987
		Other Expenses			2.715
		Increase/ Decrease in Stock			[1.400]
		TOTAL (B)	NA	NA	58.801
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	NA	3.218
Less	FINANCIAL EXPENSES (D)		NA	NA	1.037
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.594	5.991	2.181
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.541	0.220	0.446
	PROFIT BEFORE TAX (E-F) (G)		5.053	5.771	1.735
Less	TAX (I)		1.747	1.994	0.782
	PROFIT AFTER TAX (G-I) (J)		3.306	3.777	0.953
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		--	--	1.498
Less	APPROPRIATIONS
		Corporate Dividend Tax	--	0.255	--
		Dividend	--	1.500	--
	BALANCE CARRIED TO THE B/S		--	2.022	2.451
	Earnings Per Share (Rs.)		132.24	--	38.12

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	NA	NA	1.54
Net Profit Margin (PBT/Sales)	(%)	5.38	5.03	2.80
Return on Total Assets (PBT/Total Assets}	(%)	7.74	10.10	4.33
Return on Investment (ROI) (PBT/Networth)		0.47	0.78	0.35
Debt Equity Ratio (Total Liability/Networth)		5.09	6.71	7.10
Current Ratio (Current Asset/Current Liability)		1.85	2.70	3.29

LOCAL AGENCY FURTHER INFORMATION

Trade References:

· Unitex

· DLF

Operations:

The company is running its business operations satisfactorily. The business volume is expected to increase in the coming year and the directors are confident of projecting better results in the future.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	90324119
Corporate identity number of the company	U17302JK1993PTC001337
Name of the company	LOTUS KALEEN PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Ahdus Hotel, Amnexe Hotel, Ahdus Reisidency Road, Sringar-180001, Jammu and Kashmir, India
Type of charge	Book Debts Movable Property
Particular of charge holder	Jammu and Kashmir Bank Limited, (Corporate Headquarters), M.A. Road, Srinagar, Kashmir Branch Office, Connaught Place, New Delhi, Jammu and Kashmir-190001, India
Nature of description of the instrument creating or modifying the charge	Deed of Equitable mortgage, letter of assignment, loan agreement and hypothecation agreement.
Date of instrument Creating the charge	07.08.2007
Amount secured by the charge	Rs. 19.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per CAD/CFD Guidelines form time to time Terms of Repayment As per agreement Margin 25% on stocks, 50% on book debts and 15% on FLC Extent and Operation of the charge 100%
Short particulars of the property charged	Hypothecation of fresh and saleable stocks in trae lying in godown, showroom, factor and at other places in the name of company and book debts of the company.

Name of the company	LOTUS KALEEN PRIVATE LIMITED
Presented By	Mr. Avtar Bhat, Director
1) Date and description of instrument creating the change	Date of Agreement 12.04.2004
2) Amount secured by the charge/amount owing on the securities of charge	Cash Credit Limit Rs. 5.000 Millions FLC Limit Rs. 3.500 Millions (Both are fund based)
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	Hypothecation of fresh and saleable stocks in trade lying in godown, show room, factory and at other places in the name of the company and hypothecation of bookdebts of the company.
4) Gist of the terms and conditions and extent and operation of the charge.	1. Rate of Interest as per credit Rating “A” 2. Margin 40% on Stocks 50% on book debts 10% on FLC
5) Name and Address and description of the person entitled to the charge.	Jammu and Kashmir Bank Limited, (Corporate Headquarters), M.A. Road, Srinagar, Kashmir Branch Office, Connaught Place, New Delhi, Jammu and Kashmir-190001, India
6) Date and brief description of instrument modifying the charge	N.A
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.	N.A

Fixed Assets:

· Computers

o Computer

o Computer Printer

· Plant and Machinery

o Air Conditioner

o Looms

o Office Equipments

o Sewing Machine

o Wrapping Machine

o Fax Machine

o Invertor

o Vaccum Cleaner

o Telephone Equipments

o Mobile

o Camera

o Generator

o Television

· Vehicles

o Car

o Scooter

· Furniture and Fixture

o Furniture and Fixture

o Electric Equipments

o Hot and cold Machine

o Fire Fighting Equipments.

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.45.30
UK Pound	1	Rs.71.73
Euro	1	Rs.60.40

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.