MIRA INFORM REPORT

Report Date :

28.07.2011

IDENTIFICATION DETAILS

Name :	LAGU BANDHU MOTIWALE PRIVATE LIMITED
Registered Office :	382, N. C. Kelkar Road, Dadar, Mumbai – 400028, Maharashtra, India
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.02.1989
Com. Reg. No.:	11-050723
Capital Investment / Paid-up Capital :	Rs.0.500 Million
CIN No.: [Company Identification No.]	U36912MH1989PTC050723
TAN No.: [Tax Deduction & Collection Account No.]	MUML05148D/ MUML04660F
PAN No.: [Permanent Account No.]	AAACL0079M
Legal Form :	Private Limited Liability Company.
Line of Business :	Trading of Precious Stones and Gold Ornaments Embedded with Precious and Imitation Stones.
No. of Employees :	70 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

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

Maximum Credit Limit :	USD 1000000
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. The company is doing well. 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 :	Mrs. Pranali Patankar
Designation :	Account Assistant
Date :	27.07.2011

LOCATIONS

Registered Office/ Showroom :	382, N. C. Kelkar Road, Dadar, Mumbai – 400028, Maharashtra, India
Tel. No.:	91-22-24227726
E-Mail :	dilip@lagubandhu.com prj@lagubandhu.com
Website :	http://www.lagubandhu.com
Corporate Office :	206/207, Shilpin Centre, G D Ambekar Marg, Near Wadala Tel Exchange, Dadar (East), Mumbai – 400031, Maharashtra, India
Tel. No.:	91-22-24150211/ 24150221
E-Mail :	prj@lagubandhu.com
Area :	1000 sq. ft.
Location :	Owned
Showroom :	Located at: · Dadar · Thane · Dombivali · Pune · Goa · Oklahoma · USA

DIRECTORS

(AS ON 30.09.2010)

Name :	Mrs. Anjali Prakash Lagu
Designation :	Director
Address :	Mouktik, 7/22, Erandawane, Pune – 411004, Maharashtra, India
Date of Birth/Age :	12.03.1947
Date of Appointment :	20.02.1989
Name :	Mr. Sarang Prakash Lagu
Designation :	Director
Address :	7/22, Mouktik, Anil Park, Erandawane, Pune – 411004, Maharashtra, India
Date of Birth/Age :	22.06.1977
Date of Appointment :	01.04.2004
Name :	Mr. Dilip Madhav Lagu
Designation :	Director
Address :	501-A, Pooja Apartments, V R Bhide Road, Dadar (West), Mumbai – 400028, Maharashtra, India
Date of Birth/Age :	15.12.1961
Qualification :	B. Com, D G FFIG
Experience :	30 years
Date of Appointment :	20.02.1989
Name :	Mr. Shrikant Sitaram Lagu
Designation :	Director
Address :	A-13, Kamdar Park, N M Kale Marg, Dadar (West), Mumbai – 400028, Maharashtra, India
Date of Birth/Age :	28.07.1935
Date of Appointment :	20.02.1989
Name :	Mrs. Asavari Dilip Lagu
Designation :	Director
Address :	501-A, Pooja Apartments, V R Bhide Road, Dadar (West), Mumbai – 400028, Maharashtra, India
Date of Birth/Age :	19.06.1966
Date of Appointment :	01.11.1997
Name :	Mrs. Vinita Lagu
Designation :	Director
Address :	A-13, Kamdar Park, N M Kale Marg, Dadar (West), Mumbai – 400028, Maharashtra, India
Date of Birth/Age :	23.03.1944
Date of Appointment :	01.11.1997
Name :	Mrs. Neha Sarang Lagu
Designation :	Director
Address :	7/22, Mouktik, Anil Park, Erandawane, Pune – 411004, Maharashtra, India
Date of Birth/Age :	12.10.1981
Date of Appointment :	20.06.2009

KEY EXECUTIVES

Name :	Mrs. Pranali Patankar
Designation :	Account Assistant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Shrikant Sitaram Lagu	1490
Dilip Madhav Lagu	1500
Anjali Prakash Lagu	250
Vinita Lagu	500
Asavari Dilip Lagu	500
Prakash Sitaram Lagu	500
Sarang Prakash Lagu	250
Swati Shrikant Lagu	10
Total	5000

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trading of Precious Stones and Gold Ornaments Embedded with Precious and Imitation Stones.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and Dealers

No. of Employees :

70 (Approximately)

Bankers :

· HDFC Bank

Dadar, Mumbai, Maharashtra, India

· HDFC Bank

HDFC Bank Housesenapati Bapat Marg, Lower Parel West, Mumbai - 400013,

Maharashtra, India

· ICICI Bank Limited

ICICI Bank Towers, Bandra Kurla Complex, Mumbai – 400051, Maharashtra, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
HDFC Bank Loan
(Secured against Bank Guarantee and additionally secured by personal guarantee of Director)	4.912	11.037
Total	4.912	11.037
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Loan from Directors etc.	60.071	47.126
Total	60.071	47.126

Banking Relations :	--
Auditors :
Name :	GPS and Associates Chartered Accountant
Address :	E1, Singhi Niwas, Sitadevi Temple Road, Mahim West, Mumbai – 400016, Maharashtra, India
Associates :	§ Nakshatra Jewellery Private Limited
Subsidiary :	§ Navrantna Jewellers Private Limited § Lagu Jewellers Inc.

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Share	Rs.100/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5000	Equity Share	Rs.100/- each	Rs.0.500 Million

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		0.500	0.500	0.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		252.990	194.522	143.777
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		253.490	195.022	144.277
LOAN FUNDS
1] Secured Loans		4.912	11.037	2.145
2] Unsecured Loans		60.071	47.126	35.873
TOTAL BORROWING		64.983	58.163	38.018
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		318.473	253.185	182.295
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		9.716	10.966	12.895
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.462
DEFERREX TAX ASSETS		0.644	0.522	0.295
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	391.140	295.003	238.410
	Sundry Debtors	2.521	4.968	2.935
	Cash & Bank Balances	12.036	10.102	6.595
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	12.683	8.597	4.104
Total Current Assets		418.380	318.670	252.044
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	72.684	45.463	49.162
	Other Current Liabilities	29.292	25.118	21.186
	Provisions	8.291	6.392	13.053
Total Current Liabilities		110.267	76.973	83.401
Net Current Assets		308.113	241.697	168.643
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		318.473	253.185	182.295

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	552.722	426.155	331.507
		Other Income	1.122	1.380	0.609
		TOTAL (A)	553.844	427.535	332.116
Less	EXPENSES
		Manufacturing Expenses	394.755	286.038	211.607
		Administrative, Selling and Distribution Expenses	60.934	53.416	46.244
		TOTAL (B)	455.689	339.454	257.851
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		98.155	88.081	74.265
Less	FINANCIAL EXPENSES (D)		7.400	6.415	3.982
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		90.755	81.666	70.283
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.043	2.339	2.377
	PROFIT BEFORE TAX (E-F) (G)		88.712	79.327	67.906
Less	TAX (H)		30.244	28.582	24.122
	PROFIT AFTER TAX (G-H) (I)		58.468	50.745	43.784
	Earnings Per Share (Rs.)		11,694	10,149	8,757

Particulars	31.03.2011
Sales Turnover (Approximately)	140.000

The above information has been parted by Mr. Mrs. Pranali Patankar.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	10.56	11.87	13.18
Net Profit Margin (PBT/Sales)	(%)	16.05	18.61	20.48
Return on Total Assets (PBT/Total Assets}	(%)	20.72	24.07	25.63
Return on Investment (ROI) (PBT/Networth)		0.35	0.41	0.47
Debt Equity Ratio (Total Liability/Networth)		0.69	0.69	0.84
Current Ratio (Current Asset/Current Liability)		3.79	4.14	3.02

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Particulars	31.03.2010	31.03.2009	31.03.2008
	(Rs. In Millions)
Sundry Creditors for Suppliers
- Micro and Small Enterprises	--	--	--
- Others	69.247	39.433	42.299
Sundry Creditors for Expenses	3.437	6.030	6.863
Total	72.684	45.463	49.162

TRADE REFERENCE:

· Nav Pushp Jewellery – Zaveri Bazar

· PNS Shringar Private Limited – Charni Road

FORM 8:

Corporate identity number of the company	U36912MH1989PTC050723
Name of the company	LAGU BANDHU MOTIWALE PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	382, N. C. Kelkar Road, Dadar, Mumbai – 400028, Maharashtra, India dilip@lagubandhu.com
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	HDFC Bank Limited HDFC Bank Housesenapati Bapat Marg, Lower Parel West, Mumbai – 400013, Maharashtra, India RBBform8@hdfcbank.com
Nature of instrument creating charge	Supplementary Letter of Hypothecation.
Date of instrument Creating the charge	25.06.2011
Amount secured by the charge	Rs.100.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment: On demand Margin: As may be stipulated by the Bank from time to time. Extent and Operations of the charge: Hypothecation by way of First Charge on Company's Stocks, Book Debts etc, to secure as a continuing security for the repayment of Rs.100.000 Millions together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank.
Particulars of the property charged	Stock in Trade, consisting of raw materials, goods in process of manufacturing finished goods, and other merchandise whatsoever being movable properties. All the debts, that is, all the book debts, outstandings, monies receivables, claims, bills, invoice documents, contracts, guarantees, and rights
Particulars of the present modification	The Charge shall now stand increased from to Rs.25.000 Millions to Rs.100.000 Millions against the security of Stocks, Book Debts of the Company.

FIXED ASSETS:

· Furniture

· Air conditioner

· Computers with Printers

· Office Equipment

· Electrical Fittings

· Vehicles

· Building

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.43.94
UK Pound	1	Rs.72.12
Euro	1	Rs.63.66

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		51

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.