MIRA INFORM REPORT

Report Date :

21.01.2011

IDENTIFICATION DETAILS

Name :	EGO FLOORING PRIVATE LIMITED
Registered Office :	419, Joshiwadi, 2^nd Floor, Kalbadevi Road, Mumbai – 400002, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	28.02.2005
Com. Reg. No.:	11-151646
CIN No.: [Company Identification No.]	U26933MH2005PTC151646
TAN No.: [Tax Deduction & Collection Account No.]	MUME05926E
PAN No.: [Permanent Account No.]	AABCE4258Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Wood Tiles, Floorings Laminates, Timber and Plywood Planks.

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 68000
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 :	Mr. Amish Dani
Designation :	Chief Executive Office
Contact No.:	91-9820008592
Date :	20.01.2011

LOCATIONS

Registered Office :	419, Joshi Wadi, 2^nd Floor, Kalbadevi Road, Mumbai – 400002, Maharashtra, India
Tel. No.:	91-22-23787500
Mobile No.:	91-9820008592 (Mr. Amish Dani)
Fax No.:	91-22-23726452
E-Mail :	finance@egofloor.com amish@egofloor.com
Website :	www.egofloor.com
Area :	1500 sq ft
Location :	Owned
Corporate Office :	Prem Estate, 2^nd Floor, Sant Savta Road No.1, Mustafa Bazar, Byculla (East), Mumbai – 400 010, Maharashtra, India
Tel. No.:	91-22-23787500/32060294/95
Fax No.:	91-22-23726452
E-Mail :	sales@egofloor.com
Area :	4000 sq ft
Location :	Leased
Branch Office :	Located at: · Hyderabad · Delhi · Bangalore
Godown :	Sainath Compound, Gala No.84, 85, 86, Mankoli, Bhiwandi, India
Factory :	B2/ B3, Sagar Industrial Estate, Dhumal Nagar, Vasai (East), India

DIRECTORS

As on 30.09.2010

Name :	Ms. Shivani Amish Dani
Designation :	Director
Address :	Flat No.9, 2^nd Floor, Ameeta 7, Gen Bhonsale Marg, Nariman Point, Mumbai – 400021, Maharashtra, India
Date of Birth/Age :	13.05.1978
Qualification :	Graduate
Date of Appointment :	28.02.2005
Name :	Mr. Suresh H. Bisani
Designation :	Director
Address :	R – 62, 13^th Floor, Ameeta Building, Gen Bhonsale Marg, Nariman Point, Mumbai – 400021, Maharashtra, India
Date of Birth/Age :	26.10.1950
Qualification :	Graduate
Date of Appointment :	28.02.2005
Name :	Mr. Roshan Ramesh Bisani
Designation :	Director
Address :	62, Ameeta Building, Sachiwalay, Mumbai – 400021, Maharashtra, India
Date of Birth/Age :	09.05.1975
Qualification :	Graduate
Date of Appointment :	28.02.2005

KEY EXECUTIVES

Name :	Mr. Amish Dani
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Shivani Dani	5000
Suresh Bisani	5000
Roshan Bisani	94430
Ashok Bisani	89560
Kamal Bisani	5000
Ruchika A. Bisani	5000
Amish S. Dani HUF	84580
Shayamsunder M. Makharia	8420
Kumar G. Shah jointly with Amish S. Dani	10
Total	297000

As on 30.09.2010

Category	Percentage
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Wood Tiles, Floorings Laminates, Timber and Plywood Planks.
Brand Names :	“EGO”
Imports :
Products :	Wooden Flooring
Countries :	· China · Malaysia · Germany · Indonesia · Europe
Terms :
Selling :	Cash and Credit (30 to 60 to 90 Days)
Purchasing :	L/C, Cash and Credit (30 to 60 to 90 Days)

GENERAL INFORMATION

Customers :

End Users, OEM’S, Dealer and Distributors

Builders:

· Prestige Group

· Godrej Properties Limited

· Neptune Builders

· Wadhwa Builders

· Citilights Estates Private Limited

· Kanyakumari Builders Private Limited (solid wood flooring)

· Mittal Builders and Assoc

· Rohan Builders

· Neelkanth Builders

· Goel Ganga Group

· Nirman Shelters Development and Builders

· Metrocorp Housing

· Shikha Construction

· Sterling Construction

· Pride Builders / P3 Developers

Retailers:

· Spykar Jeans

· Docker’s

· Sony World

· Premsons

· Pantaloons

· Ardee City

Hotels:

· Taj Group of Hotels

· J.W. Marriot

· Radissons Hotel

· Grand Hyatt

· Sahara Star

· Hotel Siddharth

· Hotel Ramada Palm Groove

Corporate:

· Reliance Industries Limited

· Reliance Industries Limited – Retail

· Serum Institute of India

· Mahindra and Mahindra

· State Bank of India

· L and T Infotech

· The Bombay Dyeing and Manufacturing Company Limited

· Patni Computers

· Unitech

· Tech Mahindra

· Eros Group

No. of Employees :

80 (Approximately)

Bankers :

• The Saraswat Co-Operative Bank Limited, Fort Branch, Fort, Mumbai – 400 001, Maharashtra, India

• ICICI Bank, Malad (West) Branch, Mumbai, Maharashtra, India

Facilities :

Secured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
The Saraswat Co-Operative Bank Limited (Secured against Fixed Deposit maintained with Bank and Hypothecation of Stock and Debtors)	24.840	15.117
Kotak Mahindra Prime Limited Vehicle Loan (Secured against Car)	1.144	1.080
Term Loan	0.000	0.017
Short Term loan against fixed deposits	0.542	0.000
Total	26.526	16.214

Banking Relations :
Auditors :
Name :	CLB and Associates Chartered Accountants
Address :	77, Mulji Jetha Building, 3^rd Floor, 185/ 187, Princess Street, Mumbai – 400 002, Maharashtra, India
Tel. No.:	91-22-22052224/22066860
Fax No.:	91-22-22052224
E-Mail :	info@clb.co.in
Website:	www.clb.co.in
Group Companies :	· Ego Flooring Private Limited · Bluue Mango Seatings Private Limited · Ego Wall Décor Private Limited · Orchid Veneer and Floors · Ego Furniture Private Limited
Associates/Subsidiaries :	· EGO Wooden Decor Private Limited

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
300000	Equity Shares	Rs.10/- each	Rs.3.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
297000	Equity Shares	Rs.10/- each	Rs.2.970 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		2.970	2.970	2.970
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		14.034	9.739	5.997
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		17.004	12.709	8.967
LOAN FUNDS
1] Secured Loans		26.526	16.214	3.658
2] Unsecured Loans		22.111	17.161	14.415
TOTAL BORROWING		48.637	33.375	18.073
DEFERRED TAX LIABILITIES		0.000	0.003	0.060
TOTAL		65.641	46.087	27.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.928	4.408	1.618
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.767	0.767	0.767
DEFERREX TAX ASSETS		0.072	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.692	28.319	16.875
	Sundry Debtors	39.273	30.258	23.351
	Cash & Bank Balances	3.242	1.147	3.419
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	15.099	8.405	6.369
Total Current Assets		85.306	68.129	50.014
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.837	14.431	13.412
	Other Current Liabilities	10.343	9.484	9.092
	Provisions	4.263	4.822	2.804
Total Current Liabilities		25.443	28.737	25.308
Net Current Assets		59.863	39.392	24.706
MISCELLANEOUS EXPENSES		1.011	1.520	0.009
TOTAL		65.641	46.087	27.100

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	109.033	106.287
		Other Income	0.371	0.812
		TOTAL (A)	109.404	107.099	78.778
Less	EXPENSES
		Cost of Goods Traded	66.526	78.608
		Administration and Other Expenses	30.346	29.684
		Increase and Decrease in Stock	0.626	(11.444)
		TOTAL (B)	97.498	96.848	70.894
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.906	10.251	7.884
Less	FINANCIAL EXPENSES (D)		4.484	3.465	0.265
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7.422	6.786	7.619
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.939	0.956	1.755
	PROFIT BEFORE TAX (E-F) (G)		6.483	5.830	5.864
Less	TAX (H)		2.188	2.088	1.941
	PROFIT AFTER TAX (G-H) (I)		4.295	3.742	3.923
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.981	5.239	1.315
	BALANCE CARRIED TO THE B/S		13.276	8.981	5.239
	Earnings Per Share (Rs.)		14.86	30.35

Expected Sales (2010-2011) : Rs.150.000 millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.92	3.49	4.98
Net Profit Margin (PBT/Sales)	(%)	5.95	5.49	NA
Return on Total Assets (PBT/Total Assets}	(%)	7.27	8.04	11.39
Return on Investment (ROI) (PBT/Networth)		0.38	0.46	0.65
Debt Equity Ratio (Total Liability/Networth)		4.36	4.89	4.84
Current Ratio (Current Asset/Current Liability)		3.35	2.37	1.97

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors	10.837	14.431	13.412

NOTE:

The Registered Office of the company has been shifted from Unit 9, Vasan Udyog Bavan, Ground Floor, Sun Mill Compound, Lower Parel (West), Mumbai – 400013, Maharashtra, India to the present address.

FORM 8:

Name of the company	EGO FLOORING PRIVATE LIMITED
Presented By	The Saraswat Co-Operative Bank Limited, Fort Branch, Mumbai
1) Date and description of instrument creating the change	Agreement of Hypothecation of Movable Property for L/C on D/a Basis dated 19^th May, 2005.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.2.500 millions
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 all the goods under L/C tangible movable property/ including the stocks for the time being whether new or manufactured or in process of manufacturing and every tangible movable property/ machinery/ plant (both present and future as and when imported of produced by the Borrower or otherwise) belonging to the borrower and lying and being at the Borrowers place of business. Further hypothecation of outstanding book debts, moneys receivable, claims, bills and approved book debts.
4) Gist of the terms and conditions and extent and operation of the charge.	This is L/C limit.
5) Name and Address and description of the person entitled to the charge.	The Saraswat Co-Operative Bank Limited, Fort Branch, Sailor Building, 373/ 375, D.N. Road, Opposite Hutatma Chowk, Fort, Mumbai – 400 001, Maharashtra, India
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

Corporate identity number of the company	U26933MH2005PTC151646
Name of the company	EGO FLOORING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	419, Joshi Wadi, 2^nd Floor, Kalbadevi Road, Mumbai – 400 002, Maharashtra, India
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	The Saraswat Co-Operative Bank Limited, Fort Branch, Fort, Mumbai – 400 001, Maharashtra, India E-Mail: njbhatia@rediffmail.com
Nature of description of the instrument creating or modifying the charge	Agreement of Hypothecation of Movable Property for L/C on D/A basis
Date of instrument Creating the charge	27.07.2010
Amount secured by the charge	Rs.10.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Terms of Repayment On demand Extent and Operation of the charge This is L/C facility
Short particulars of the property charged	Hypothecation of all the stock and debtors tangible movable property (both present & future) belonging to the borrower/ and lying and being at the borrowers place of business at Prem Estate, 2nd Floor Mustafa Bazar, Opp. Union Bank Of India, Byculla East Mumbai 400010 or whereverelse the same may be kept. Further hypothecation of all the outstandings, bookdebts, money receivables, claims and bills.

TRADE REFERENCES:

· The Bombay Dyeing and Manufacturing Company Limited

· Kanyakumari Builders Private Limited

· Citilights Estates Private Limited

FIXED ASSETS:

· Plant and Machinery

· Furniture and Fixtures

· Computer and Printer

· Office Equipment

· Vehicle

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.45.58
UK Pound	1	Rs.72.73
Euro	1	Rs.61.45

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	YES
--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.