MIRA INFORM REPORT

Report Date :

28.07.2011

IDENTIFICATION DETAILS

Name :	PRAKASH RETAIL PRIVATE LIMITED
Formerly Known As :	PRAKASH ELECTRIC COMPANY (UDUPI) PRIVATE LIMITED
Registered Office :	Ambalpady Post, Udupi, Udupi – 576 103, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.08.1997
Com. Reg. No.:	08-022698
Capital Investment / Paid-up Capital :	Rs.18.670 Millions
CIN No.: [Company Identification No.]	U52335KA1997PTC022698
TAN No.: [Tax Deduction & Collection Account No.]	BLRPO3095B
PAN No.: [Permanent Account No.]	AAACCP1251H
Legal Form :	Private Limited Liability Company
Line of Business :	Retailer of Home Appliances and Kitchen Appliances.
No. of Employees :	400 (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 169000
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. The company can be considered for small to mediocre 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. Keshav
Designation :	Corporate Manager
Date :	28.07.2011

LOCATIONS

Registered Office :	Ambalpady Post, Udupi, Udupi – 576103, Karnataka, India
Tel. No.:	91-820-2523842/ 2523843
E-Mail :	headoffice@pecoindia.com headoffice@prlindia.in
Website :	www.prlindia.in
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Mr. Suryaprakash K.
Designation :	Managing Director
Address :	‘Pancharatna’, Kappettu, Ambalpady Udupi, Karnataka, India
Date of Birth/Age :	29.07.1955
Date of Appointment :	30.04.1999
Name :	Mr. Ashok Kumar
Designation :	Director
Address :	‘Pancharatna’, Kappettu, Ambalpady Udupi, Karnataka, India
Date of Birth/Age :	06.03.1956
Date of Appointment :	26.08.1997
Name :	Mr. Harish M.
Designation :	Director
Address :	‘Pancharatna’, Kappettu, Ambalpady Udupi, Karnataka, India
Date of Birth/Age :	22.08.1960
Date of Appointment :	26.08.1997
Name :	Mr. Suresh M.
Designation :	Director
Address :	‘Pancharatna’, Kappettu, Ambalpady Udupi, Karntaka, India
Date of Birth/Age :	09.10.1964
Date of Appointment :	26.08.1997
Name :	Mr. Rajesh M.
Designation :	Director
Address :	‘Pancharatna’, Kappettu, Ambalpady Udupi, Karnataka, India
Date of Birth/Age :	12.05.1971
Date of Appointment :	26.08.1997

KEY EXECUTIVES

Name :	Mr. Keshav
Designation :	Corporate Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Suryaprakash K	553720
Ashok Kumar	328468
Harish M.	362450
Suresh M.	325682
Rajesh M.	296713
Total	1867033

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage of Holding
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Retailer of Home Appliances and Kitchen Appliances.
Terms :
Selling :	Cash and Cheque
Purchasing :	Cash and Cheque

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

400 (Approximately)

Bankers :

v Syndicate Bank, Catholic Centre, Udupi – 576 101, Karnataka, India

v Axis Bank, Simax Commercial Complex, 1^st Floor, Court Road, Udupi – 576 101, Karnataka, India

v ICICI Bank Limited

Facilities :

Over Draft and Term Loan = Rs.150.000 millions

Secured Loans	31.03.2009 Rs. In Millions	31.03.2008 Rs. In Millions
Secured Overdraft With Syndicate Bank.	36.731	44.576
(Secured Against Hypothecation of Stock In Trade and Receivables.)
Term Loans From Syndicate Bank.	22.452	29.293
(Secured Against Hypothecation of Fixed Assets and Unregistered Equitable Mortgage of Properties )
CORP H P A/C 35 / 07-08.)	0.148	0.228
(Secured Against Hypothecation of Tata Ace)
ICICI Loan (Secured against hypothecation of Flat Palio KA 20- ME 5555)	0.000	0.054
ICICI Loan	0.267	0.512
(Secured Against Misthubishi Cedia Car)
ICICI Loan	0.143	0.417
(Secured Against Innova)
Axis Bank Card Power 514	16.622	3.118
Total	76.363	78.198

Unsecured Loans	31.03.2009 Rs. In Millions	31.03.2008 Rs. In Millions
Loans From Directors	10.030	10.751
Shree Ram City Union Finance(Trade Advance)	0.000	0.521
Total	10.030	11.272

Banking Relations :	--
Auditors :
Name :	Prabhajith and Company Chartered Accountants
Address :	D.No.9-4-133C, Sri Ganesh Prabha, Tenkpet, Udupi – 576201, Karnataka, India
Tel. No.:	91-820-2521636/ 2523636

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2,500,000	Equity Shares	Rs.10/- each	Rs.25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1,867,033	Equity Shares	Rs.10/- each	Rs.18.670 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		18.670	18.670	18.670
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		23.648	19.237	16.858
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		42.318	37.907	35.528
LOAN FUNDS
1] Secured Loans		81.290	76.363	78.198
2] Unsecured Loans		9.927	10.030	11.272
TOTAL BORROWING		91.217	86.393	89.470
DEFERRED TAX LIABILITIES		0.616	0.606	0.659
TOTAL		134.151	124.906	125.657
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		61.832	47.480	47.251
Capital work-in-progress		0.299	0.240	1.053
GOODWILL		4.824	4.824	4.824
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	163.552	135.782	151.374
	Sundry Debtors	19.256	12.739	12.594
	Cash & Bank Balances	6.265	4.211	2.249
	Other Current Assets	31.535	29.115	24.254
	Loans & Advances	3.940	4.682	6.401
Total Current Assets		224.548	186.529	196.872
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	149.865	109.261	118.839
	Other Current Liabilities		0.000	0.000
	Provisions	7.487	4.906	5.504
Total Current Liabilities		157.352	114.167	124.343
Net Current Assets		67.196	72.362	72.529
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		134.151	124.906	125.657

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1055.193	926.826	786.874
		Other Income (Miscellaneous Income)	4.452	3.755	4.208
		TOTAL (A)	1059.645	930.581	791.082
Less	EXPENSES
		Office Expenses
		Administrative Expenses	1033.902	907.989	774.597
		Advertising Expenses
		TOTAL (B)	1033.902	907.989	774.597
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		25.743	22.592	16.485
Less	FINANCIAL EXPENSES (D)		10.163	10.950	7.809
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		15.580	11.642	8.676
Less/ Add	DEPRECIATION/ AMORTISATION (F)		9.126	7.774	7.448
	PROFIT BEFORE TAX (E-F) (G)		6.454	3.868	1.228
Less	TAX (H)		2.042	1.489	0.682
	PROFIT AFTER TAX (G-H) (I)		4.412	2.379	0.546
	Earnings Per Share (Rs.)		2.36	NA	NA

Particulars	31.03.2011 (Approximately)
Sales Turnover	1250.000

The above information has been parted by Mr. Keshav (Corporate Manager).

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.42	0.26	0.07
Net Profit Margin (PBT/Sales)	(%)	0.61	0.42	0.16
Return on Total Assets (PBT/Total Assets}	(%)	2.22	1.62	0.49
Return on Investment (ROI) (PBT/Networth)		0.15	0.10	0.03
Debt Equity Ratio (Total Liability/Networth)		5.87	5.29	6.02
Current Ratio (Current Asset/Current Liability)		1.43	1.63	1.58

LOCAL AGENCY FURTHER INFORMATION

Financial Result:

The company has earned profit of Rs. 4.412 Millions compared to Rs. 2.378 Millions of last year. In order to conserve the resources, the directors do not recommend any dividend for the financial year 2009-10.

Bankers Charges Report as per Registry

Corporate identity number of the company	U52335KA1997PTC022698
Name of the company	PRAKASH RETAIL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Ambalpady Post, Udupi, Udupi – 576103, Karnataka, India
This form is for	Creation of Charge
Type of charge	Movable Property
Particular of charge holder	Syndicate Bank, Catholic Centre, Udupi – 576101, Karnataka, India
Nature of instrument creating charge	Composite Hypothecation Agreement
Date of instrument Creating the charge	11.10.2010
Amount secured by the charge	Rs. 10.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 11.50% p.a. Terms of Repayment To be operated briskly to the Extent of limit fixed and bring it to credit at least once in a year and closed in time by end of one year. Margin 25% Extent and Operation of the charge Hypothecation/ charge is created on the stock in trade of the company at Ambalpady, Udupi
Short particulars of the property charged	Hypothecation/ Charge is created on the stock in trade in the company at Ambalpady, Udupi

Name of the company	PRAKASH RETAIL PRIVATE LIMITED
Presented By	Mr. K. Suryaprakash , M.D.
1) Date and description of instrument creating the change	31.12.04 – Composite Hypothecation agreement to secure financial / credit facility granted by the bank.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.45.000 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 stock in trade consisting of electric/ electronic/consumer durables, White goods, kitchen wares, electrical appliances etc. and receivables and first charge on all the fixed asses of the company stored / lying / situated at companies showroom / warehouse at Udupi, Mangalore, Shimoga, Hubli, Puttur and Kundapur.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest: @8.5 % being 2.5% below Bank PLR. Margin: As stipulated by the Bank Repayment: 60 EMI
5) Name and Address and description of the person entitled to the charge.	Syndicate Bank, Catholic Centre Branch, Udupi – 576101, India
6) Date and brief description of instrument modifying the charge	25.01.2005 – Letter evidencing deposit of title deeds – to collaterally secure the financial Rs.45.000 Millions granted by the Bank.
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.	Equitable mortgage created by the deposits of title deeds on the following properties of the Company. (a) Immovable property held on wang right and situated at Casba Bazar Village of Mangalore Taluk with in the 14^th Court Ward of Mangalore city corporation and with in the registration and sub-district of Mangalore city and comprised in Sy. No.398-2B measuring 7.5 cents. (b) Immovable property situated in 76, Badagubettu Village, Udupi Taluk in Sy. No. 86-3A2 measuring 20 cents. (E. M. is created to collaterally secure the financial facility of Rs.45.000 Millions granted by the Bank. All other terms and condition and remains uncharged)

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.43.95
UK Pound	1	Rs.72.12
Euro	1	Rs.63.67

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	YES
--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.