MIRA INFORM REPORT

Report Date :

26.03.2011

IDENTIFICATION DETAILS

Name :	DECORHOME (INDIA) PRIVATE LIMITED
Registered Office :	A-702, Tirupati Plaza Near Collector Office, Athwagate, Surat – 395001, Gujarat
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	22.07.2002
Com. Reg. No.:	04-040983
CIN No.: [Company Identification No.]	U74994GJ2002PTC040983
TAN No.: [Tax Deduction & Collection Account No.]	SRTD00549D
Legal Form :	Private Limited Liability Company
Line of Business :	Contractors of Modular Furniture’s, Modular Kitchen etc.

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 330000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The management has not filed the financial of the company with the Government Departments after 2008. However, trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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. Jay Mehta
Designation :	Senior Accountant
Date :	25.03.2011

LOCATIONS

Registered Office :	A-702, Tirupati Plaza Near Collector Office, Athwagate, Surat – 395001, Gujarat, India
E-Mail :	jay@decorhomeindia.com decorhome@drdcs.net
Corporate Office/ Godown :	Plot No. 8A/1/2B, Kalwa Block, TTC Industrial Area, Thane Belapur Road, Navi Mumbai – 400614, Maharashtra, India
Tel. No.:	91-22-27694063
E-Mail :	91-22-27604122

DIRECTORS

As On 01.08.2008

Name :	Mr. Pranjivandas Chandresh Thakkar
Designation :	Director
Address :	802, Somnath Enclave, B/H. Sargam Shopping Centre, Parle Point, Surat – 395007, Gujarat, India
Date of Appointment :	22.07.2002
Name :	Mr. Chandresh Sarita Thakkar
Designation :	Director
Address :	802, Somnath Enclave, B/H. Sargam Shopping Centre, Parle Point, Surat – 395007, Gujarat, India
Date of Appointment :	22.07.2002
Name :	Mr. Kantilal Hitesh Dalwadi
Designation :	Director
Address :	9-C, Trimurti Apartment, City Light Road, Parle Point, Surat – 395007, Gujarat, India
Date of Appointment :	22.07.2002
Name :	Mr. Hitesh Gira Dalwadi
Designation :	Director
Address :	9-C, Trimurti Apartment, City Light Road, Parle Point, Surat – 395007, Gujarat, India
Date of Appointment :	22.07.2002
Name :	Mr. Sunil Kanilal Dalwadi
Designation :	Director
Address :	11-D, 2^nd Arjav Building, B/H. Sarjan Society, City Light Road, Surat – 395007, Gujarat, India
Date of Appointment :	22.07.2002
Name :	Ms. Parul Sunil Dalwadi
Designation :	Director
Address :	11-D, 2^nd Arjav Building, B/H. Sarjan Society, City Light Road, Surat – 395007, Gujarat, India
Date of Appointment :	22.07.2002

KEY EXECUTIVES

Name :	Mr. Jay Mehta
Designation :	Senior Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 01.08.2008

Names of Shareholders	No. of Shares
Thakkar Chandresh Pranjivandas	27638
Thakkar Sarita Chandresh	47969
Dalwadi Hitesh Kantilal	28387
Dalwadi Gira Hitesh	47969
Dalwadi Sunil Kantilal	43137
Dalwadi Parul Sunil	29469
Chandresh Thakkar (HUF)	24227
Sunil Dalwadi – HUF	27226
Thakkar Nirmal S.	20
Thakkar Shashikant P.	20
Shah Bharatkumar Deepchanch	20
Thakkar D. S.	20
Mansata Bhavna	20
Mansata Bhanumati	20
Mansata Chandulal	20
Mansani Sheetal	20
Mansata Dharmesh	20
Dalwadi Kantilal A.	20
Dalwadi Jayaben K.	20

As On 01.08.2008

Category	Percentage
Directors or relatives of Directors	75.00
Other top fifty shareholders	25.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Contractors of Modular Furniture’s, Modular Kitchen etc.
Imports :
Products :	Raw Materials
Countries :	Germany China

GENERAL INFORMATION

Customers :

• Corporates

No. of Employees :

15 (In Office)

Bankers :

• The Cosmos Co-op Bank Limited – Bandra Branch Lubina Apartment, Tumer Road, Bandra (West), Mumbai – 400050, Maharashtra, India

Facilities :

Secured Loans	31.03.2008 (Rs. In Millions)	31.03.2007 (Rs. In Millions)
Working capital loans	22.081	14.623
Term loans	1.426	1.280
Total	23.507	15.903

Unsecured Loans	31.03.2008 (Rs. In Millions)	31.03.2007 (Rs. In Millions)
From Institutions	8.024	2.900
From directors	8.162	14.718
From shareholders	27.042	22.458
Total	43.228	40.076

Banking Relations :	--
Auditors :
Name :	S. K. Kabra and Company Chartered Accountant
Address :	1006, Rathi Palace, Kamela Darwaja Ring Road, Surat– 395002, Gujarat, India
Tel. No.:	91-261-2320131
E-Mail :	cakabra@gmail.com
Pan No.:	AAJFS6674D
Associates/Subsidiaries :	Venus Furniture Private Limited Address: Line of Business: Modular Furniture

CAPITAL STRUCTURE

As On 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs. 10/- each	Rs. 3.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
300120	Equity Shares	Rs. 10/- each	Rs. 3.001 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		3.001	3.001	3.001
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.369	2.625	1.799
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		8.370	5.626	4.800
LOAN FUNDS
1] Secured Loans		23.507	15.903	9.639
2] Unsecured Loans		43.228	40.076	28.027
TOTAL BORROWING		66.735	55.979	37.666
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		75.105	61.605	42.466
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.376	5.434	3.467
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.579	0.880	1.297
DEFERREX TAX ASSETS		0.115	0.085	0.152
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.604	34.554	5.131
	Sundry Debtors	82.659	35.198	40.252
	Cash & Bank Balances	4.405	4.043	1.403
	Other Current Assets	0.836	1.566	2.260
	Loans & Advances	7.631	15.595	4.313
Total Current Assets		102.135	90.956	53.358
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	31.500	35.116	15.290
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	1.640	0.732	0.675
Total Current Liabilities		33.140	35.848	15.965
Net Current Assets		68.995	55.108	37.393
MISCELLANEOUS EXPENSES		0.040	0.098	0.156
TOTAL		75.105	61.605	42.466

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2008	31.03.2007	31.03.2006
	SALES
		Income	267.555	152.206	108.332
		Other Income	0.417	0.333	0.423
		TOTAL (A)	267.972	152.539	108.755
Less	EXPENSES
		Decrease/(Increase) In WIP	27.951	(29.424)	1.523
		Purchases	126.722	107.739	57.697
		Trading and direct expenses	84.109	52.753	32.541
		Employees emoluments	8.380	6.699	4.915
		Administrative and general expenses	7.233	6.465	5.868
		Loss on sale of asset	0.019	0.020	0.000
		Preliminary exp w/o	0.058	0.058	0.058
		TOTAL (B)	254.472	144.310	102.602
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13.500	8.229	6.153
Less	FINANCIAL EXPENSES (D)		8.078	5.841	4.228
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.422	2.388	1.925
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.080	0.615	1.035
	PROFIT BEFORE TAX (E-F) (G)		4.342	1.773	0.890
Less	TAX (I)		1.598	0.948	0.555
	PROFIT AFTER TAX (G-I) (J)		2.744	0.825	0.335
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.125	1.300	0.965
	BALANCE CARRIED TO THE B/S		4.869	2.125	1.300
	Earnings Per Share (Rs.)		9.15	2.75	1.12

Particulars	31.03.2010
Sales Turnover	130.000

Expected Sales (2010-2011) : Rs. 220.000 Millions

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	1.02	0.54	0.31
Net Profit Margin (PBT/Sales)	(%)	1.62	1.16	0.82
Return on Total Assets (PBT/Total Assets}	(%)	4.04	1.84	1.57
Return on Investment (ROI) (PBT/Networth)		0.52	0.32	0.19
Debt Equity Ratio (Total Liability/Networth)		11.93	16.32	11.17
Current Ratio (Current Asset/Current Liability)		3.08	2.54	3.34

LOCAL AGENCY FURTHER INFORMATION

Trade References:

• Reliance

Form 8:

Corporate identity number of the company

U74994GJ2002PTC040983

Name of the company

DECORHOME (INDIA) PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

A-702 Tirupati Plazanr Collector Office, Athwagate, Surat 395001, Gujarat, India

This form is for

Creation of charge

Type of charge

Book Debts

Movable Property

Floating Charge

Particular of charge holder

Name :	The Cosmos Co-op Bank Limited
Address :	Bandra Branch Lubina Apartment, Tumer Road, Bandra (West), Mumbai – 400050, Maharashtra, India
Email :	njbhatia@rediffmail.com

Nature of instrument creating charge

Hypothecation of Tangible Goods/ Movable Property to secure a demand cash credit account/ demand oaverdraft account / demand loan account

Date of instrument Creating the charge

30.10.2010

Amount secured by the charge

Rs. 5.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest - Adhoc Cash credit:14%p.a. cheque purchase: 18% p.a.or at such rate as maybe determined by the bank from time to time

Terms of Repayment - 45 days

Margin - 25% in bank's favour

Extent and Operation of the charge - This is adhoc cash credit facility

Particulars of the property charged

Hypothecation of all those goods of the borrower namely plywood, laminate, aluminium section, veener and others raw materials used for making furniture, including there in the stock thereof the time being whether raw or manufactured or in process of manufacture and also all products, goods and any every tangible movable property of the borrowers whether new lying or at any time hereafter during the continuance of this security lying or being in or about the borrowers premises and godown at Plot 8A-1/2B, TTC Industrial Estate Area Thane Belapur Road MIDC Navi Mumbai or wherever else the same maybe.

Fixed Assets:

• Premises
• Furniture
• Equipments
• Vehicles
• Computer

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.44.65
UK Pound	1	Rs.71.91
Euro	1	Rs.63.28

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.