MIRA INFORM REPORT

Report Date :

25.06.2011

IDENTIFICATION DETAILS

Name :	H.J.S STONES LIMITED

Registered Office :	No. 26 Richmond Road, Bangalore – 560 001, Karnataka

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	14.02.1990

Com. Reg. No.:	80-10743

Paid-Up Capital :	Rs. 87.481 Millions

CIN No.: [Company Identification No.]	u85110ka1990plc010743

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturer and Exporter of Granite Slabs and Granite Blocks Also into cutting and polishing of granites, processing slabs, tiles and monuments Also processing of items such as paving stones, kerbs and cobble stones in varying colours

No. of Employees :	70 (approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 91000

Status :	Moderate

Payment Behaviour :	Slow

Litigation :	Clear

Comments :	Subject is an established company having moderate tracks. There appears to be some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be sow. The company can be considered for business dealings with some cautions.

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 – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

India

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

LOCATIONS

Registered Office :	No. 26 Richmond Road, Bangalore – 560 001, Karnataka, India
E-Mail :	nagarajugl@yahoo.com
Website :	www.hjsgrp.com

Factory 1 :	No. 92, 4^thFloor, H.J.S Chambers, Post Box No. 25043, 92/95, Richmond Road, Bangalore – 560 025, Karnataka, India
Tel. No.:	91-80-22244536/ 22273976/ 22273977
Fax No.:	91-80-22270230
E-Mail :	hjsgrp@blr.vsnl.net.in pashaarshad@hjsgrp.com

Factory 2 :	40^th KM, Madapura Village, Bangalore-Mysore Road, Bangalore – 571251, Karnataka, India
Area :	3000 sq.ft

DIRECTORS

Name :	Mr. Nisar Pasha
Designation :	Chairman and Managing Director
Address :	No. 14, Aga Abdulla Street, Richmond town, Bangalore – 560 025, Tamil Nadu
Date of Birth/Age :	07.12.1946
Qualification :	C.A
Experience :	40 Years
Date of Appointment :	14.02.1990

Name :	Mr. Shakeel Pasha
Designation :	Director
Address :	No. 11, Leonard Lane, Richmond Town, Bangalore – 560 025, Tamil Nadu
Date of Birth/Age :	11.07.1957
Date of Appointment :	14.02.1990

Name :	Mr. Arshad Pasha
Designation :	Director
Address :	No. 14, Aga Abdulla Street, Richmond town, Bangalore – 560 025, Tamil Nadu
Date of Birth/Age :	11.05.1977
Date of Appointment :	14.02.1990

Name :	Mr. Abdul Sattar
Designation :	Director

Name :	Mr. Hayathulla Khan
Designation :	Director

Name :	Mr. Nayaz Pasha
Designation :	Director

SHAREHOLDING PATTERN

AS ON 30.09.2009

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00

Total		100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Granite Slabs and Granite Blocks Also into cutting and polishing of granites, processing slabs, tiles and monuments Also processing of items such as paving stones, kerbs and cobble stones in varying colours

Exports :
Countries :	Italy (Machinery)

Imports :
Countries :	Japan Korea Taiwan China Canada Europe Far East Russia Ireland Middle East Countries

Terms :
Selling :	Client Based

Purchasing :	L/C: 60 Days

GENERAL INFORMATION

Suppliers :

· Gaspari Menotti, Italy

· Bretaon, Italy

· A.R. Granites, India

· S.R. Enterprises, India

· Krishna Sai, India

Customers :

· Prestigeious Clients Worldwide

No. of Employees :

70 (approximately)

Bankers :

Bank of Baroda, K G Road Branch, Bangalore – 560 009, Karnataka, India
Jammu and Kashmir Bank Limited, Infantry Road, Bangalore – 560001, Karnataka, India
Oriental Bank of Commerce, Richmond Road, Bangalore – 5600025, Karnataka, India

Facilities :

Secured Loans: About Rs. 35.000 Millions (31.03.2010)

Secured Loans	31.03.2009 (Rs. In Millions)
Export Packing Credit
(Secured against stocks on hands)	16.124
Exports Bill Discounting (Secured against bills)	4.454
Cash Credit A/C No. 53756 (Secured against book debts)	2.693
Advance for Foreign Bills Vehicle Loan – Reliance Capital (Hypothecation of Vehicles)	2.888

Total	26.159

Unsecured Loans	31.03.2008 (Rs. In Millions)
Loan from Managing Director	16.588

Total	16.588

Banking Relations :

---

Auditors :

Name :

Nanaiah and Associates

Chartered Accountants

Address :

No. 34, Ganeshkrupa, 1^st Main Road, Gandhinagar, Bangalore – 560 009, Karnataka, India

Memberships :

Trade India

Associates/Subsidiaries :

Hajee Jaffer Shariff
Seema International

CAPITAL STRUCTURE

As on: 31.03.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
9000000	Equity Shares	Rs. 10/- each	Rs. 90.000 millions

Issued, Subscribed Capital :

No. of Shares	Type	Value	Amount
8748100	Equity Shares	Rs. 10/- each	Rs. 87.481 millions

Called up & Paid-up Capital :

No. of Shares	Type	Value	Amount
8834600	Equity Shares (Of the above shares 160000 shares are allotted as fully paid up pursuant to contract without payment being received in cash)	Rs. 10/- each	Rs.88.346 millions
Less :	Calls in Arrear		Rs. 0.865 million
		Total	Rs. 87.481 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		87.481	87.481	87.481
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(64.603)	(70.684)	(77.460)
NETWORTH		22.878	16.797	10.021
LOAN FUNDS
1] Secured Loans		34.494	26.159	23.537
2] Unsecured Loans		15.516	16.588	18.984
TOTAL BORROWING		50.010	42.747	42.521
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		72.888	59.544	52.542

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		22.872	24.384	22.822
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	54.528	54.999	35.755
	Sundry Debtors	26.724	24.473	17.855
	Cash & Bank Balances	0.704	0.117	0.267
	Other Current Assets	4.634	3.212	3.058
	Loans & Advances	5.307	0.338	0.326
Total Current Assets		91.897	83.139	57.261
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	41.881	47.979	27.541
	Provisions	0.000	0.000	0.000
Total Current Liabilities		41.881	47.979	27.541
Net Current Assets		50.016	35.160	29.720

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		72.888	59.544	52.542

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	126.683	100.596	84.886
		Other Income	0.167	0.723	0.000
		TOTAL (A)	126.850	101.319	84.886

Less	EXPENSES
		Raw Material Consumed	31.484	26.110	28.041
		Production and Processing Expenses	56.603	52.048	36.572
		Management Expenses	0.445	0.611	0.376
		Administrative Expenses	2.798	1.872	1.624
		Selling Expenses	15.993	13.364	10.582
		Exchange Gain / Loss	0.0000	0.000	0.112
		Increase/(Decrease) in Finished Goods	5.720	(4.594)	(2.992)
		TOTAL (B)	113.043	89.411	74.315

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13.807	11.908	10.571

Less	FINANCIAL EXPENSES (D)		4.659	3.838	6.035

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.148	8.070	4.536

Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.778	2.777	2.941

	PROFIT BEFORE TAX (E-F) (G)		5.370	5.293	1.595

Less	TAX (I)		0.000	0.000	0.036

	PROFIT AFTER TAX (G-I) (J)		5.370	5.293	1.559

	EARNINGS IN FOREIGN CURRENCY		NA	41.000	37.359

	IMPORTS		NA	40.049	28.001

	Earnings Per Share (Rs.)		--	--	0.18

Average value of inventories at any given time: Rs. 54.500 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.23	5.22	1.84

Net Profit Margin (PBT/Sales)	(%)	4.24	5.26	1.88

Return on Total Assets (PBT/Total Assets}	(%)	4.68	4.92	1.99

Return on Investment (ROI) (PBT/Networth)		0.23	0.32	0.16

Debt Equity Ratio (Total Liability/Networth)		4.02	5.40	6.99

Current Ratio (Current Asset/Current Liability)		2.19	1.73	2.08

LOCAL AGENCY FURTHER INFORMATION

Fixed assets:-

· Land

· Building

· Borewell

· Plant and machinery

· Computers

· Furniture and Fixtures

FORM 8:

Name of the company	H.J.S. STONES LIMITED
Presented By	Bank of Baroda, K.G. Road, Bangalore – 560009 and H.J.S. STONES LIMITED
1) Date and description of instrument creating the change	19.07.1994 Deed of hypothecation of machinery Memorandum of deposit of title deed.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 5.500 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	Nos. 4, Granite Gangsaws Model ‘Jumbo’ and 5 being imported from Gaspari Menati SPA, Italy along with continuous belt polisher and all Equipments, Accessories, Spares attached thereto or otherwise and to installed and or installed. Other indigenous and other machinery to be acquired Extension of equitable mortgage on Land, Building, etc belonging to the company.
4) Gist of the terms and conditions and extent and operation of the charge.	Charge pertains to FLC limit of Rs. 55.000 Millions sanctioned for importing plant and machinery Interest 13% on PC 15.5% on Term Loan
5) Name and Address and description of the person entitled to the charge.	Bank of Baroda, K.G. Road, Bangalore – 560009
6) Date and brief description of instrument modifying the charge	03.09.2004 Supplemental composite instruments of hypothecation of goods, book debts, movable machinery and vehicles. Supplemental memorandum of entry
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.	By the above the amount secured by the charge stands increased from Rs. 79.500 Millions to Rs. 82.500 Millions. Rate of Interest : 3% over PLR with a minimum of 13.5% p.a. with periodical rests and / or at such rate /s and rests as may be specified by the bank from time to time. Security of stocks, goods, receivables, etc and the security of company’s immovable properties comprising of Land and Building situated at Sy. No. 137, Madapura Village, Mayaganhalli, Ramnagar Taluka, Bangalore Rural Sistrict measuring in all about 4 acres will cover the entire credit facilities of Rs. 82.500 Millions.

AS PER WEBSITE DETAILS

PROFILE:

H.J.S. Group of Companies was established in the year 1953 by the entrepreneurial genius Janab Hajee Jaffer Shariff Saheb. Having extended business from an individual trade in silk waste, he presently commands a dominant standing in the silk trade with over 50 years of experience and expertise. Assisting him and at the helm of organizational affairs is Mr. Nisar Pasha, Chairman and Managing Director of the Group and a Chartered Accountant by profession. At present our business is centered in the two strategic areas of granite and silk. Our business projects in the granite industry have been functional for over three decades, particularly in the ownership and operation of several quarries in south India. Operations have also successfully diversified into cutting, polishing and processing of various types of granite due to increasing demand in international markets. The manufacture of spun silk from silk waste at a hi-tech plant in Ramanagaram employs progressive technological know-how originally developed at Japan, Korea and Italy. Silk waste exports are also undertaken on a global scale. Furthermore, efforts are underway for diversification into the manufacture of premium silk fabrics of international standards.

A winning combination of new-age technology, state-of-the-art equipment, efficient staff and overall dedication to quality has helped us attain an annual turnover of Rs. 150.000 millions which we expect to reach Rs. 250.000 millions in a year’s time.

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.44.94
UK Pound	1	Rs.71.89
Euro	1	Rs.64.09

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	---
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	no
--OTHER MERIT FACTORS	YES/NO	yes
TOTAL		26

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.

MIRA INFORM REPORT

54.528

54.999

35.755

26.724

24.473

17.855

0.704

0.117

0.267

4.634

3.212

3.058

5.307

0.338

0.326

91.897

83.139

41.881

47.979

27.541

0.000

0.000

0.000

41.881

47.979

27.541

50.016

35.160

29.720

Unit