MIRA INFORM REPORT

Report Date :

09.06.2011

IDENTIFICATION DETAILS

Name :	KUMAR ENTERPRISES
Registered Office :	Chauri Road, Pure Shyam, Bhadohi – 221401, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Year of Establishment :	1988
Capital Investment / Paid-up Capital :	Rs. 2.500 millions (estimated)
IEC No.:	1594001472
TAN No.: [Tax Deduction & Collection Account No.]	ALDK00443C
PAN No.: [Permanent Account No.]	AASPN0585H
Legal Form :	Partnership concern with an unlimited liability of the partners.
Line of Business :	Manufacturers and Exporters of Hand Knotted Carpets
No. of Employees :	50 (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 10000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. The concern can be considered 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. Sujeet Maurya
Designation :	Manager
Contact No.:	91-9935409990
Date :	08.06.2011

LOCATIONS

Registered Office :	Chauri Road, Pure Shyam, Bhadohi – 221401, Uttar Pradesh
Tel. No.:	91-5414-224977
Fax No.:	91-5414-224288
E-Mail :	info@kumarcarpets.com, kumarenterpr@sify.com
Website :	http://www.kumarcarpets.com
Area :	4000 Sq. ft.
Location :	Owned

PARTNERS

Name :	Mr. Kedarnath Maurya
Designation :	Partner
Address :	Chauri Road, Pure Shyam, Bhadohi- 221401, Uttar Pradesh, India
Date of Birth/Age :	79 Years
Qualification :	Graduate
Name :	Mr. Kailashnath Maurya
Designation :	Partner
Date of Birth/Age :	55 Years
Qualification :	Graduate
Name :	Mr. Rajinder Parshad Maurya
Designation :	Partner
Date of Birth/Age :	54 Years
Qualification :	Graduate

BUSINESS DETAILS

Line of Business :	Manufacturers and Exporters of Hand Knotted Carpets.
Products :	Indian Handknotted Woollen Silk, Pile Carpets, Rugs, Druggists and Indo Nepali Carpets, Carpet Rugs, Carpets and All types durries
Exports :
Products :	Hand Knotted Carpets
Countries :	Germany, Australia, USA, Canada, Brazil, South Africa, Mexico and European Countries.
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :	Wholesalers
No. of Employees :	50 (Approximately)
Bankers :	Allahabad Bank, Station Road, Bhadohi

Auditors :
Name :	Samar Yadav and Company Chartered Accountants
Memberships :	CEPC, SRTEPC

CAPITAL STRUCTURE

As on : 31.03.2011

Capital Investment :
Owned :	Rs. 2.500 millions (Estimated)
Borrowed :	--
Total :	Rs. 2.500 millions (Estimated)

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2011	31.03.2010
Sales Turnover (Approximately)	25.000	20.000

The above information has been parted by Mr. Sujeet Maurya.

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry Records.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		3.315
2] Share Application Money		0.000
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		0.000
NETWORTH		3.315
LOAN FUNDS
1] Secured Loans		7.042
2] Unsecured Loans		0.000
TOTAL BORROWING		7.042
DEFERRED TAX LIABILITIES		0.000
TOTAL		10.357
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.462
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.605
	Sundry Debtors	10.785
	Cash & Bank Balances	0.621
	Other Current Assets	0.000
	Loans & Advances	3.686
Total Current Assets		19.697
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	9.802
	Provisions	0.000
Total Current Liabilities		9.802
Net Current Assets		9.895
MISCELLANEOUS EXPENSES		0.000
TOTAL		10.357

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2009
Sales Turnover		27.973
Foreign Exchange Difference		1.441
Duty Drawback		2.757
Import License		0.277
Total Income		32.448
Profit/(Loss) Before Tax		1.016
Provision for Taxation		---
Profit/(Loss) After Tax		1.016
Expenditures :
	Cost of Goods Sold	20.310
	Manufacturing Expenses	8.062
	Packing Charges	0.025
	Shipping and Forwarding Charges	0.260
	Other Expenditure	2.775
Total Expenditure		31.432

KEY RATIOS

PARTICULARS		31.03.2009
PAT / Total Income	(%)	3.13
Net Profit Margin (PBT/Sales)	(%)	3.63
Return on Total Assets (PBT/Total Assets}	(%)	5.04
Return on Investment (ROI) (PBT/Networth)		0.31
Debt Equity Ratio (Total Liability/Networth)		5.08
Current Ratio (Current Asset/Current Liability)		2.01

LOCAL AGENCY FURTHER INFORMATION

WEBSITE DETAILS:

PROFILE :

Subject manufacturer and exporter of different types of hand made floor coverings in India. They are an export house for traditional and contemporary Indian Carpets. They are known for their exquisite designs and quality. Each carpet designed in their own studio, made with the best raw materials and the best craftsmanship in India.

Their markets are USA, Canada, Brazil, Australia, and Europe and are in process to cover entire world.

They have in house designing and production from traditional aubussan, persian and then era of modern, contemporary, colour and texture, prominent designs, they adhere to all the changes every time it is needed. Their facilities, occupying around 25,000 square feet area, includes a Design studio, Shade testing Lab, Library, Quality control unit, production unit, weaving center.

They have a dedicated team of professionals willing to create new textures, qualities, colors, designs, collections, especially for you.

The organization is headed by Mr. Kailash Nath Maurya, who has an extensive experience in the industry, on the production as well as marketing front.

Subject manufactures its carpets with utmost care and total excellence in skill and workmanship. Quality consistency, use of good materials in their product are always a matter of great concern. It leaves no space for any compromise in maintaining its quality. Thus, the secret of subject success lies in their Quality, Timely Deliveries, Ample Ready Stocks and their Traditional and Modern Designs in eye catching Colours.

Subject has been identified by the reputed importers of Floor Coverings and Home Furnishings, be it a wholesaler or a retailer. The very fact that leading importers chose Subject for its quality products, efficiency and dependability shows its rapid progress.

Subject was established in 1988 by Mr. Kailash Nath Maurya along with his brother Sh. Rajendra Prasad Maurya. Carpet manufacturing and export business is Maurya Family's business and its fourth generation is in the same business. This business has been a family tradition for the Maurya family since 1942.

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. 44.61
UK Pound	1	Rs. 73.27
Euro	1	Rs. 65.47

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	NO
--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
-	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.