MIRA INFORM REPORT

Report Date :

19.11.2011

IDENTIFICATION DETAILS

Name :	EXPANDA STAND PRIVATE LIMITED
Registered Office :	W 481, Flat A1, Ground Floor, 2^nd Avenue, C Sector, Anna Nagar, West Extension, Chennai – 600101, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.10.1999
Com. Reg. No.:	18-43425
Capital Investment / Paid-up Capital :	Rs.0.980 Million
CIN No.: [Company Identification No.]	U36102TN1999PTC043425
TAN No.: [Tax Deduction & Collection Account No.]	CHEE03009G/ CHEE03645F
PAN No.: [Permanent Account No.]	AAACE8579M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of Moduler Display Solutions like Literate Displays, Retail displays, Shopping Trolley, Billing Section and Ware house Section.
No. of Employees :	20 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 4000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a relatively small company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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. Duraiswamy
Designation :	Accounts Department
Contact No.:	91-44-26150551
Date :	14.11.2011

LOCATIONS

Registered Office :	W 481, Flat A1, Ground Floor, 2^nd Avenue, C Sector, Anna Nagar, West Extension, Chennai – 600101, Tamilnadu, India
Tel. No.:	91-44-26150551/26150979
Fax No.:	91-44-26150392
E-Mail :	expanda@vsnl.net
Website :	http://www.expandastand.com http://www.idg.co.za
Location	Owned
Factory :	W-322, 2^nd Avenue, C Sector, Anna Nagar West Extension, Chennai-600101, Tamilnadu, India
Tel. No.:	91-44-26150551/021
Fax No.:	91-44-26150392
E-Mail :	expanda@eth.net
Area :	5500 sq. ft
Location	Owned
Branch Office :	Located at Bangalore, Karnataka, India
Area :	2350 sq. ft
Location	Owned

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Mahadeva Mareddy Reddy

Designation :

Managing Director

Address :

A3, Block 4, Golden Tre Asure, Vanagar AM, Chennai-600095, Tamilnadu, India

Date of Birth/Age :

01.07.1955

Qualification :

Engineer

Date of Appointment :

27.10.1999

Din No.:

01860838

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U25209TN1988PTC016002	MONALISA PLASTI COAT PRIVATE LIMITED	Director	18-08-08	15-07-88	Active	NO
2	U36102TN1999PTC043425	EXPANDA STAND PRIVATE LIMITED	Managing director	27-10-99	27-10-99	Active	NO

Name :

Mrs. Monalisa Mahadeva Reddy

Designation :

Director

Address :

A3, Block 4, Golden Tre Asure, Vanagar AM, Chennai-600095, Tamilnadu, India

Date of Birth/Age :

13.01.1960

Qualification :

Graduate

Date of Appointment :

27.10.1999

Din No.:

01860824

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U25209TN1988PTC016002	MONALISA PLASTI COAT PRIVATE LIMITED	Managing director	18-08-08	15-07-88	Active	NO
2	U36102TN1999PTC043425	EXPANDA STAND PRIVATE LIMITED	Director	27-10-99	27-10-99	Active	NO

Name :

Mr. Maheshwar Mareddy Reddy

Designation :

Director

Address :

A3, Block 4, Golden Tre Asure, Vanagar AM, Chennai-600095, Tamilnadu, India

Date of Birth/Age :

14.05.1988

Date of Appointment :

18.08.2008

KEY EXECUTIVES

Name :	Mr. Duraiswamy
Designation :	Accounts Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Mahadeva Mareddy Reddy	5320
Monalisa Mahadeva Reddy	2280
Maheshwar Mareddy Reddy	850
M Madhusoodhnaa	850

AS ON 30.09.2011

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

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Supplier of Moduler Display Solutions like Literate Displays, Retail displays, Shopping Trolley, Billing Section and Ware house Section.
Exports :
Products :	Moduler Display
Countries :	Argentina
Imports :
Products :	Finished Goods
Countries :	China
Terms :
Selling :	L/C / Cash and Credit
Purchasing :	L/C / Cash and Credit

GENERAL INFORMATION

Customers :

Retailers

No. of Employees :

20 [Approximately]

Bankers :

HDFC Bank, Chennai, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
HDFC Bank	2.950	0.000
Total	2.950	0.000
Unsecured Loan
Short Term Borrowings [From Shareholders]	8.703	3.739
Total	8.703	3.739

Banking Relations :	--
Auditors :
Name :	RSJV and Associates Chartered Accountants
Address :	7, 77^th Street, 16^th Avenue, Ashok Nagar, Chennai-600083, Tamilnadu, India
Pan No.:	AALFR2536F

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
98000	Equity Shares	Rs.10/- each	Rs.0.980 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		0.980	0.980	0.980
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.042	0.000	0.000
4] (Accumulated Losses)		0.000	(0.097)	(0.175)
NETWORTH		1.022	0.882	0.805
LOAN FUNDS
1] Secured Loans		2.950	0.000	0.000
2] Unsecured Loans		8.703	3.739	3.263
TOTAL BORROWING		11.653	3.739	3.263
DEFERRED TAX LIABILITIES		0.072	0.010	0.021
TOTAL		12.747	4.631	4.089
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.981	2.913	2.392
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	0.235	0.040	1.178
	Sundry Debtors	7.899	5.458	1.680
	Cash & Bank Balances	0.316	1.187	0.762
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.105	3.996	7.675
Total Current Assets		13.555	10.681	11.295
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		7.906	8.675
	Other Current Liabilities	6.323	0.179	0.247
	Provisions	2.466	0.878	0.676
Total Current Liabilities		8.789	8.963	9.598
Net Current Assets		4.766	1.718	1.697
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		12.747	4.631	4.089

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL	16.487	13.329	27.944
Less	EXPENSES
		Office Expenses
		Administrative Expenses	15.866	12.908	27.371
		Advertising Expenses
		TOTAL	15.866	12.908	27.371
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.621	0.421	0.573
Less/ Add	DEPRECIATION/ AMORTISATION		0.366	0.305	0.215
	PROFIT BEFORE TAX		0.255	0.116	0.358
Less	TAX		0.115	0.038	0.195
	PROFIT AFTER TAX		0.140	0.078	0.163
	Earnings Per Share (Rs.)		1.43	0.80	1.66

Expected Sales (2011-12) : Rs.25.000 Millions.

The above information has been parted by Mr. Duraiswamy.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.85	0.59	0.58
Return on Total Assets (PBT/Total Assets}	(%)	1.18	0.85	2.62
Return on Investment (ROI) (PBT/Networth)		0.25	0.13	0.44
Debt Equity Ratio (Total Liability/Networth)		20.00	14.40	15.98
Current Ratio (Current Asset/Current Liability)		1.54	1.19	1.18

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

NOTE: The registered office of the company has been shifted from W 322, First Floor, 2^nd Avenue, Anna Nagar, West Extension, Chennai-600101, Tamilnadu, India to the present address w.e.f. 05.12.2008.

FINANCIAL RESULTS:

During the year the company has achieved a turnover of Rs.16.487 Millions and has posted a profit before tax of Rs.0.255 Millions.

COMPANY PERFORMANCE:

The company’s business during the year was comparatively better. The company has constructed a new factory building and is in the process of expansion which will result in better performance and profits in the coming years.

FIXED ASSETS:

• Air Conditioner
• Business Card Scanner
• Cell Phone
• Compressor
• Cooling Tower
• Laptop
• Moulds
• Office Equipments
• Palmtop
• Pen drive
• Printer and Xerox Machine
• Refrigerator
• Scanner
• UPS
• Car Ford
• Washing Machine

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.51.35
UK Pound	1	Rs.80.97
Euro	1	Rs.69.25

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.