MIRA INFORM REPORT

Report Date :

08.06.2011

IDENTIFICATION DETAILS

Name :	KHETAN TILES PRIVATE LIMITED

Registered Office :	C-59, Road No. 5, V K I Area, Jaipur – 302 013, Rajasthan

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	16.06.1989

Com. Reg. No.:	17-05007

Capital Investment / Paid-up Capital :	Rs.6.988 millions

CIN No.: [Company Identification No.]	U14101RJ1989PTC005007

TAN No.: [Tax Deduction & Collection Account No.]	JPRK02236D

PAN No.: [Permanent Account No.]	AABCK0431H

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturers and Exporters of Tiles and Marbles.

No. of Employees :	162 Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 259428

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

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

INFORMATION DECLINED BY

Name :	Mr. Mukesh
Designation :	Chief Executive Officer
Contact No.:	91-9784598024

LOCATIONS

Registered Office :	C-59, Road No. 5, VKI Area, Jaipur – 302 013, Rajasthan, India.
Tel. No.:	91-141-5113596/ 5103595/ 2330065
Mobile No.:	91-9829010441 (Mr. Kamal Kishore Khetan)
Fax No.:	91-141-2332945
E-Mail :	khetan_tiles@sify.com, info@khetantiles.com, godika_dg@yahoo.co.in
Website :	www.khetantiles.com
Area :	6000 sq.mt.
Location :	Owned

Branch Office:	Makrana Road, Madanganj, Kishangadh, Rajasthan, India

DIRECTORS

AS ON 29.09.2010

Name :	Mr. Kamal Kishore Khetan
Designation :	Director
Address :	1-B-19, Nahari ka Naka, P and T Colony, Shastri Nagar, Jaipur – 302 016, Rajasthan, India.
Date of Birth/Age :	01.07.1962
Qualification :	B Com
Date of Appointment :	28.09.1990

Name :	Mr. Jagdish Prasad Khetan
Designation :	Director
Address :	1-B-19, Nahari ka Naka, P and T Colony, Shastri Nagar, Jaipur – 302 016, Rajasthan, India.
Date of Birth/Age :	05.07.1940
Qualification :	B Com
Date of Appointment :	29.09.1993

KEY EXECUTIVES

Name :	Godha Vinita and Associates
Designation :	Company Secretary
Address :	B-25, Chhatri Yojana, Aishali Nagar, Ajmer, Rajasthan, India.

Name :	Mr. Mukesh
Designation :	Chief Executive Officer

SHAREHOLDING PATTERN

AS ON 29.09.2010

Names of Shareholders	No. of Shares
Jagadish Prasad Khetan	6645
Mali Ram Khetan	2120
Kamal Kishore Khetan	6170
Kaushlaya Devi Khetan	760
Mool Chand Khetan	6310
Banwai Lal Khetan	6760
Ram Chander Khetan	3340
Dinesh Khetan	3520
Panna Devi Khetan	190
Bajarang Lal Khetan	5160
Malkha Devi Khetan	880
Asha Devi Khetan	150
Manorma Devi Khetan	4790
Basanti Devi Khetan	4740
Anil Khetan	1500
Arvind Khetan	5500
Sunil Khetan	1500
Nitesh Khetan	1500
Chanda Khetan	2500
Rekha Khetan	1680
Mukesh Khetan	3415
Juli Khetan	750
Total	69880

AS ON 29.09.2010

Equity Share Break-up	Percentage of Holding
Directors or Relatives Of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Tiles and Marbles.

Products :

Raw Blocks
Marble Tiles
Sandstone Tiles
Slate Stone
Quartzite
Limestone
Miscellaneous

Item Code No. (ITC Code)	680221
Product Description	Marble Block, Slab and Tiles

Exports :

Products :

Tiles and Marbles

Countries :

Europe
UK
USA
Australia
Taiwan
Russia
Greece
Other European Nations

Terms :

Selling :

L/C, Cash, Cash against Documents

Purchasing :

Cash

PRODUCTION STATUS (As on 31.03.2009)

Particulars	Unit	Actual Production
Gangsaw Slab	SQM	26546.850
Polished Tiles	SQM	12510.120

GENERAL INFORMATION

Suppliers :

Agarwal Exports, Jaipur
Agarwal Marble and Ind. Private Limited
Akar Marble Industries JPR
Ankit Marbles Supplieers Roopnagarh
Ashish Stones, Kishangarh
Bansal Forest Marbles Bidasar
Bidasar Stones Bidasar
D and D Group
Durga Marble and Minerlas Udai
Geetanjali Marbles, Katni
I.S. Construction Private Limited
Indiana Marbles Bidiyad
Jai Maa Bhawan Marbles Tiles
Kapil Stones Jaiselmer
Padam Udyog Ladnoo
Parvati Marble, Andhi
Peethambra Marbles and Stones Private Limited, Dungarpur
Pooja Granites (AP)
Prathyusha Granites (AP)
Prime Marble Mineral and Chemical, UDPR
R. S. G. Stones Bidasar
Radha Krishna Marbles BDSR
Rajasthan Abresive, Jodhpur
Rajasthan Industries, Jodhpur
S. K. India Mines and Minerals
Shree Charbhuja Marbles Ind. Kshgrh
Shri Gosai Marbles, Jaiselmer
Shri Marketing and Agencies JPR
SMt. Ramdulari Kachhwa Jaipur
Vijay Laxmi Marble Dunkar
Vijaya Enterprises, Jaipur
Vikram Singh Vikas Singh and Comp. BDSR
Vishvkarma Saw Mills

Customers :

Wholesalers, Retailers

No. of Employees :

162 Approximately

Bankers :

State Bank of Bikaner and Jaipur

V K I Area Branch, Road no.5, Jaipur – 302 013, Rajasthan, India.

Citi Bank
Citi Corporation Finance Limited
ICICI Bank

Institution :

Rajasthan Financial Corporation

V. K. I. Area, Udyog Bhawan, Jaipur – 302 013, Rajasthan,India.

Facilities:

Secured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Cash Credit Hypo. AG. Stock and Debtors with SBBJ	0.000	20.928
Citi Bank Loan for Dumpers	0.343	1.287
Citi Corp Finance Limited (Loan for Poclain)	1.427	3.004
ICICI Escoda Car Loan	0.626	0.841
RFC Jaipur WTG Loan 4267/0560	0.000	9.558
RFC Loan 4282	0.000	12.752
RFC Loan A/C 4279 New A/c	0.000	1.243
RFC Loan for WTG (II) 0560/4276	0.000	12.369
RFC Platiflexi Loan 4273/0586	0.000	0.026
RFC Platinum Loan 0585/4271	0.000	1.823
RFC Platinum Loan 0585/4274	0.000	6.633
SBBJ SLC Loan	0.036	0.006
SBBJ CC A/c	15.301	0.000
SBBJ EPC Loan A/c	0.773	0.000
SBBJ Term Loan	41.310	0.000
TOTAL	59.816	70.470

Banking Relations :	--

Auditors :	Godika Dinesh and Company Chartered Accountants
Address :	F–4, Bichoon Complex, Kishanpole Bazar, Jaipur – 302 001, Rajasthan, India.
Tel No.:	91-141-4019239
Mob. No.:	91-9829019239
Email:	Godika_09@yahoo.co.in
Pan No.:	AEIPG2515E

CAPITAL STRUCTURE

AS ON 29.09.2010

Authorised Capital :

No. of Shares

Type

Value

Amount

70000

Equity Shares

Rs.100/- Each

Rs.7.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

69880

Equity Shares

Rs.100/- Each

Rs.6.988 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		6.988	6.888	6.888
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		57.869	52.523	46.623
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		64.857	59.411	53.511
LOAN FUNDS
1] Secured Loans		59.816	70.470	59.785
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		59.816	70.470	59.785
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		124.673	129.881	113.296

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		57.469	48.842	51.952
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		7.427	6.242	6.006
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	39.054	28.689	24.644
	Sundry Debtors	23.881	11.034	11.145
	Cash & Bank Balances	1.686	9.777	0.855
	Other Current Assets	9.209	9.880	7.504
	Loans & Advances	18.849	32.191	28.939
Total Current Assets		92.679	91.571	73.087
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	28.877	13.490	15.862
	Current Liabilities	4.482	3.751	2.491
	Provisions	0.000	0.000	0.000
Total Current Liabilities		33.359	17.241	18.353
Net Current Assets		59.320	74.330	54.734

MISCELLANEOUS EXPENSES		0.457	0.467	0.604

TOTAL		124.673	129.881	113.296

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	114.222	89.143	99.861
		Other Income	0.000	7.812	0.000
		TOTAL (A)	114.222	96.955	99.861

Less	EXPENSES
		Office Expenses
		Administrative Expenses	108.331	89.385	88.784
		Advertising Expenses
		TOTAL (B)	108.331	89.385	88.784

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.891	7.570	11.077

Less	FINANCIAL EXPENSES (D)		NA	NA	NA

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.891	7.570	11.077

Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	NA	NA

	PROFIT BEFORE TAX (E-F) (G)		5.891	7.570	11.077

Less	TAX (H)		0.784	1.671	1.380

	PROFIT AFTER TAX (G-H) (I)		5.107	5.899	9.697

	Earnings Per Share (Rs.)		73.00	86.00	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.47	6.08	9.71

Net Profit Margin (PBT/Sales)	(%)	5.15	8.49	11.09

Return on Total Assets (PBT/Total Assets}	(%)	3.92	5.39	8.86

Return on Investment (ROI) (PBT/Networth)		0.09	0.13	0.21

Debt Equity Ratio (Total Liability/Networth)		1.43	1.48	1.46

Current Ratio (Current Asset/Current Liability)		2.77	5.31	3.98

LOCAL AGENCY FURTHER INFORMATION

WORKING PERFORMANCE:

The year under report is satisfactory with reference to the performance of production as well as sales of the company and also the profitability of the company. The turnover of the company is Rs 114.222 millions in comparison to previous year of Rs.89.143 millions. The production of the year is 55020.53 SQM in comparison to previous year of 45082.710 SQM. The Profit of the current year is Rs. 5.891 millions in comparison of previous year of Rs 7.571 millions, having a increase on the level of up to satisfaction. The Directors are hopeful that the positive trend shall be maintained in the following year also.

FORM 8

Corporate identity number of the company	U14101RJ1989PTC005007
Name of the company	KHETAN TILES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	C-59, Road No. 5, V K I Area, Jaipur – 302 013, Rajasthan, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	State Bank of Bikaner and Jaipur Address: V K I Area Branch, Road no.5, Jaipur – 302 013, Rajasthan, India. Email: sbbj10365@sbbj.co.in
Nature of instrument creating charge	1.Supplemental agreement of loan cum hypothecation.SME-4 2.Letter of arrangement.SME-1
Date of instrument Creating the charge	30.03.2010
Amount secured by the charge	Rs. 34.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest : CC - @ 1% below BPLR , present effective rate is 11.25% p.a.,with monthly rest subject to change from time to time. SLC - Additional interest of 1% over the regular WC capital facilities. Terms of repayment Repayable on demand. Margin On Raw Material Imported, Indigenous - 25% On Semi finished and finished goods -30% On Domestic Receivables - 50% On EPC - 25% uniform On ODFBC - 25% Extent and operation of the charge The charge will operate as a first charge to the extent of Rs.34.500 millions to secure overall facility granted to the company by the bank detail as follow. Cash credit (Hypo.) Rs.30.000 millions Sub limit-with in CC Book debts (Rs. 9.500 millions) EPC (Rs.12.500 millions) FBP/Discount (Docy) (Rs.12.500 millions) SLC Rs. 4.500 millions ------------------------- Total Rs.34.500 millions
Short particulars of the property charged (Including location of the property)	First exclusive charge by way of hypothecation of all stocks of raw material, semi finished & finished goods, stock in process consumable goods, stores and spares, all present and future book debts, all present and future movable plant, machinery and all present & future current and fixed assets of the company to cover overall increased facility of Rs.34.500 millions given to the company by the bank. The above security also cover term loan of Rs.41.300 millions (Taken over form RFC)
Date of instrument modifying the charge	09.02.2009
Particulars of the present modification	By this modification overall limits has been enhanced from Rs.30.800 millions to Rs.34.500 millions details as under. Cash credit (Hypo.) Rs.30.000 millions Sub limit-with in CC Book debts (Rs. 9.500 millions) EPC (Rs.12.500 millions) FBP/Discount (Docy) (Rs.12.500 millions) SLC Rs. 4.500 millions ------------------------- Total Rs.34.500 millions Other terms and condition remain unchanged.

FIXED ASSETS:

Factory Block

- Coffee Machine

- Camera

- Furniture

- Cycle

- Packing Machine

- Maruti Zen

- Hero Honda Motor

- Cycle

- Factory Building

- D. G. Set

- Water Purifier

- Firdge

- Scooter

- Pillar Crane

- Plant and Machinery

- Tools Electric Cables

- Maruti Car

- Computer

- Cell Phone

- Motor Cycle (HH Splender)

- Motor Cycle

- Water Pump

- Surface Grinding and Laping Machine

- Inverter

- Water Rec. Plant

- Air Conditioner

- Industrial and EDGE Cutting Machine

- Car Escoda

- Fax

- Chain Pulley

- Calibration Machine

· Mining Block

- Wire Saw Machine

- Mining Equipment

- Air Electrical

- Compressor

- Transformer

- Jeep

- Drill Rods and Drill Machine

- Room For Store and Labour

- Darrik Crane

- Demper

- Hydrolic Excavators

- Tata Hitachi Power Installation

Other Block

- Agriculture Land at Bapini

- Agriculture Land at Dunkar

- Agriculture Land at Charwas

Power Plant Block

- Wind Power

- Generator II

- Wind Power

- Generator I

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.44.74
UK Pound	1	Rs.73.25
Euro	1	Rs.65.48

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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

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.

MIRA INFORM REPORT

39.054

28.689

23.881

11.034

1.686

9.777

9.209

9.880

18.849

32.191

92.679

91.571

28.877

13.490

4.482

3.751

0.000

0.000

33.359

17.241

59.320

74.330

1.43

1.48

2.77

5.31

Unit