MIRA INFORM REPORT

Report Date :

30.11.2011

IDENTIFICATION DETAILS

Name :	CLASSIC FLOORINGS AND INTERIORS PRIVATE LIMITED

Registered Office :	Ground Floor, Raghuvanshi Mansion, Raghuvanshi Mills Compound, 9-11, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	14.08.1995

Com. Reg. No.:	11-091743

Capital Investment / Paid-up Capital :	Rs.9.870 Millions

CIN No.: [Company Identification No.]	U74999MH1995PTC091743

TAN No.: [Tax Deduction & Collection Account No.]	MUMC10296G

PAN No.: [Permanent Account No.]	AAACC1815A

Legal Form :	Private Limited Liability Company

Line of Business :	Trader and Importer of Wooden Floorings

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 259000

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 – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

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

INFORMATION DECLINED BY

Management Non Cooperative

LOCATIONS

Registered Office :	Ground Floor, Raghuvanshi Mansion, Raghuvanshi Mills Compound, 9-11, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-40476211 / 24976211
Fax No.:	91-22-24976216
E-Mail :	msaraf@classicfloorings.co.in msaraf@squarefoot.co.in sales@squarefoot.co.in sales@classicfloorings.co.in
Website :	http://www.classicfloorings.co.in http://www.squarefoot.co.in
Location :	Rented

Corporate Office :	Padan No 2, Flat No 1, 4 B, Peddar Road, Mumbai – 400026, Maharashtra, India
Tel. No. :	91-22-55606211
Fax No. :	91-22-56606216
E-mail :	sales@classicfloorings.co.in

Showroom :	Located at Kochi

Branches :	Located at: Srinagar Ludhiana Chandigarh Dehradun Delhi Kanpur Lucknow Shillong Manipur Jaipur Udaipur Ahmedabad Rajkot Surat Baroda Bhopal Indore Kolkata Bhubaneshwar Mumbai Pune Sangli Kolhapur Goa Visakhapatnam Hyderabad Mysore Mangalore Bangalore Chennai Coimbatore Cochin Trivandrum .

DIRECTORS

AS ON 29.09.2011

Name :

Mr. Motilal Saraf

Designation :

Managing Director

Address :

601, Divyalok, L D Ruparel Marg, Malabar Hill, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

01.10.1947

Qualification :

B. Com

Date of Appointment :

14.08.1995

DIN :

01685519

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	U65929WB1954PTC021485	SARAF INVESTMENT PRIVATE LIMITED	Director	4/4/1967	4/4/1967	Active	NO
2	U01110MH1992PTC066849	ADHUNIK PLANTATIONS PRIVATE LIMITED	Director	20/05/1992	20/05/1992	Active	NO
3	U01110MH1992PTC067254	PRIME PLANTATIONS PRIVATE LIMITED	Director	16/06/1992	16/06/1992	Active	NO
4	U74999MH1995PTC091743	CLASSIC FLOORINGS AND INTERIORS PRIVATE LIMITED	Director	14/08/1995	14/08/1995	Active	NO
5	U24230MH1994PTC080348	RUSCO PHARMA PRIVATE LIMITED	Director	21/11/2007	21/11/2007	Active	NO

Name :

Mr. Abhishek Motilal Saraf

Designation :

Director

Address :

601, Divyalok, L D Ruparel Marg, Malabar Hill, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

23.06.1976

Qualification :

B. Com

Date of Appointment :

09.04.2005

DIN :

01685526

Name :

Mr. Gaurav M. Saraf

Designation :

Director

Address :

P-52, Golden Enclave, Air Port Road, Bangalore – 560017, Karnataka, India

Date of Birth/Age :

01.06.1980

Qualification :

B. Com

Date of Appointment :

09.04.2005

DIN :

01586782

KEY EXECUTIVES

Name :	CS Kishor V Ved
Designation :	Company Secretary
Address :	Flat No.102, 1^st Floor, Nageshwar Krupa, Ratan Bhuvan No.2 CHSL, Garden Lane, Ghatkopar [West], Mumbai – 400086, Maharashtra, India
Qualification :	B.Com. / F.C.S.
Mobile No.:	91-9004000831
Email :	Vedkishor1@rediffmail.com Kishor.ved@gmail.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2011

Names of Shareholders		No. of Shares
Motilal Saraf		37600
Saral Saraf C/o Sarla Family Trust		28200
Kumkum Bagaria		32900
TOTAL		98700

AS ON 29.09.2011

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of Directors		38.10
Other top fifty shareholders		61.90
Total		100.00

BUSINESS DETAILS

Line of Business :

Trader and Importer of Wooden Floorings.

Products :

Hardwood Flooring
Laminate Flooring
Vinyl Flooring
Linoleum Flooring
Sports Flooring
Parquet Panels and Wood continuously shaped along any of its edges
Floor coverings of plastic whether or not self adhesive in Roll
Fiber board of wood or other ligneous materials

Products Description	ITC Code No.
Parquet Panels	441830
Wood Continuously Shaped along any of its edges or faces whether or not planned sanded or finger jointed.	440910

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Indusind Bank Limited, 1^st Floor, West Wing, Duparc Trinity, No 17, M G Road, Bangalore - 560001, Karnataka, India

Indusind Bank Limited, Nariman Point, Mumbai – 400021, Maharashtra, India

Facilities :

UNSECURED LOAN	31.03.2011 (Rs. In millions)	31.03.2010 (Rs. In millions)
From Directors	2.722	2.740
From Associates	3.047	3.047
TOTAL	5.769	5.787

SECURED LOAN	6.109	0.000


Banking Relations :	--

Auditors :
Name :	K C Todarwal and Company Chartered Accountant
Address :	615, Maker Chamber V, 6^th Floor, 221, Nariman Point, Mumbai – 400 021, Maharashtra, India
PAN :	AABPT1549A

Associates :	Chemsworth Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount

100,000	Equity Shares	Rs. 100/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

98,700	Equity Shares	Rs. 100/- each	Rs.9.870 Millions

Note : 97650 equity shares of face value of Rs.100/- per shares were allotted has fully paid bonus shares by utilization of 9765000 from general reserves account

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		9.870	0.105	0.105
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		54.995	51.805	46.320
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		64.865	51.910	46.425
LOAN FUNDS
1] Secured Loans		6.109	0.000	0.000
2] Unsecured Loans		5.769	5.787	3.081
TOTAL BORROWING		11.878	5.787	3.081
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		76.743	57.697	49.506

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		14.061	5.990	6.816
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.407	0.385	0.386
DEFERREX TAX ASSETS		1.478	1.352	1.224

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	79.728	69.351	62.630
	Sundry Debtors	56.908	47.091	45.180
	Cash & Bank Balances	7.677	4.633	3.020
	Other Current Assets	6.550	5.650	0.000
	Loans & Advances	34.275	26.115	26.478
Total Current Assets		185.138	152.840	137.308
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	57.930	44.734	44.875
	Other Current Liabilities	43.046	42.321	32.158
	Provisions	23.365	15.815	19.195
Total Current Liabilities		124.341	102.870	96.228
Net Current Assets		60.797	49.970	41.080

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		76.743	57.697	49.506

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	276.858	164.603	NA
		Other Income	30.569	21.788	NA
		TOTAL (A)	307.427	186.391	NA

Less	EXPENSES
		Purchases	140.028	67.557
		Direct Expenses	47.111	28.031
		Administrative and General Expenses	89.609	73.758	NA
		Selling and Distribution Expenses	14.855	10.156
		Increase / [Decrease] in Stocks	[10.377]	[6.721]
		TOTAL (B)	281.226	172.781	NA

	PROFIT/[LOSS] BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		26.201	13.610	NA

Less	FINANCIAL EXPENSES (D)		3.158	3.008	NA

	PROFIT/[LOSS] BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		23.043	10.602	NA

Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.921	1.848	NA

	PROFIT / [LOSS] BEFORE TAX (E-F) (G)		21.122	8.754	12.256

Less	TAX (H)		8.167	3.268	4.642

	PROFIT / [LOSS] AFTER TAX (G-H) (I)		12.955	5.486	7.614

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		51.805	46.319	38.212

Less	APPROPRIATIONS
		Transfer to General Reserve	20.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		44.760	51.805	NA

	Earnings/[Loss] Per Share (Rs.)		132.00	5224.00	7251.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.21	2.94	NA

Net Profit Margin (PBT/Sales)	(%)	7.63	5.32	NA

Return on Total Assets (PBT/Total Assets}	(%)	10.60	5.51	8.50

Return on Investment (ROI) (PBT/Networth)		0.32	0.17	0.26

Debt Equity Ratio (Total Liability/Networth)		2.10	2.09	2.14

Current Ratio (Current Asset/Current Liability)		1.49	1.48	1.43

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

The business year 2010-11 was characterized by both positive sales and positive profit.

OUTLOOK FOR THE COMPANY

For the year ended 31.03.2011, revenue grew by 68% which was driven by economic recovery in Indian consumer demand for products and service resulting in strong growth in sales, EBITDA grew by 93% and profit after tax [PAT] grew by 136% to Rs.12.954 millions compared to Rs.5.485 millions in the previous year.

They are gearing up for the next phase of growth though a combination of their own initiative, by adding new products in their existing basket.

They will also ass a showroom in Kochi in the financial year 2011-12 and add at least 3 more Offices / Display Centres to increase their foot print, further reach which will result in increased sales across segments.

Form 8

This form is for	Creation of charge
Corporate identity number of the company	U74999MH1995PTC091743
Name of the company	CLASSIC FLOORINGS AND INTERIORS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Ground Floor Raghuvanshi Mansion Raghuvanshi Mills Compound, S.B. Road, Mumbai – 400013, Maharashtra, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	IndusInd Bank Limited, Nariman Point, Mumbai – 400021, Maharashtra, India vlaxman@vsnl.com CIN:L65191MH1994PLC076333
Nature of description of the instrument creating or modifying the charge	Composite Agreement for Hypothecation of Stocks, Book Debts, Other Current Assets and Plant and Machinery.
Date of instrument Creating the charge	12/07/2007
Amount secured by the charge	Rs.22.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment: On Demand Margin: Borrower shall at all times during the continuance of this security maintain the said debts of a sufficient amount to provide the margin of security as may from time to time advised by the Bank. Extent and Operation of the charge: Hypothecation by way of first charge on Company's assets, book debts and vehicle together with interest, costs, charges, expenses and other monies payable there under shall be secured against the property
Short particulars of the property charged	Hypothecation of (i) Stocks and other Current Assets; (ii) Book Debts and Receivables ; and (iii) Entire Fixed assets (excluding assets charged for availing vehicles finances from other banks)

Name of the company	CLASSIC FLOORINGS AND INTERIORS PRIVATE LIMITED
Presented By	Jointly by the Company and the Charge Holder
1) Date and description of instrument creating the change	Agreement for Hypothecation of Stocks, Book Debts and Receivable Date 10^th October, 2005.
2) Amount secured by the charge/amount owing on the securities of charge	Rs.2.500 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	The Company’s stock, receivable and book debts, existing and future, to secure repayment to the bank to the principal monies together with interest, all costs, charge and expenses arising out of Letter of Credit limit sanctioned and disbursed.
4) Gist of the terms and conditions and extent and operation of the charge.	The Company in sanctioned Letter of Credit limit of Rs.2.500 Millions secured by Hypothecation of Company’s Stock, Book Debts and receivables. The Company will open a LC Limit Account and interest will be charged at BPLR + 5% p.a. on outstanding debit balances arising out of L/C liabilities. The operation of the charge will continue till the Letter of Credit limit is cancelled and all charges due to the bank are be paid in full by the borrowers at rates indicated above.
5) Name and Address and description of the person entitled to the charge.	IndusInd Bank Limited Having their branch at Ground Floor, Maker Chambers IV, Nariman Point, Mumbai – 400021, Maharashtra, India
6) Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable

FIXED ASSTES:

Computers
Software Developments
Furniture and Fixtures
Motor Car
Office Equipments
Electrical Fittings
Air Conditioners

Website Details

Company Profile

Square Foot is the sole India distributor for Tarkett range of floorings - wooden, laminate, sports and vinyl floorings. Tarkett is the world leader in floorings with an annual turnover of 2.6 billion Euros. Square Foot has become the leader in floorings in India. Square Foot has 5 offices, brand stores in various cities in various formats and sell in over 65 cities around India. Their products are all imported from factories in France, Sweden, Germany, Italy, Luxembourg, Poland, etc.

they are building a core and a select team of individuals to lead their company into the 21st century. They aim to be one of the key leading players in the Indian flooring industry on a Pan Inda basis. They are slowly imprinting their brand on a Pan India basis.

Their products are the best in the industry and reflects in their client lists which includes hotels such as the Leela, the Taj; corporates such as Reliance, P and G, Coke, Nike, individuals such as Shahrukh Khan, Nandan Nilekani, Kumarmangalam Birla – this list is a tribute to the quality of their products.

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.45.74
UK Pound	1	Rs.71.88
Euro	1	Rs.60.84

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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

79.728

69.351

62.630

56.908

47.091

45.180

7.677

4.633

3.020

6.550

5.650

0.000

34.275

26.115

26.478

185.138

152.840

137.308

57.930

44.734

44.875

43.046

42.321

32.158

23.365

15.815

19.195

124.341

102.870

96.228

60.797

49.970

41.080

4.21

2.94

NA

7.63

5.32

NA

10.60

5.51

8.50

0.32

0.17

0.26

2.10

2.09

2.14

1.49

1.48

1.43

Unit