MIRA INFORM REPORT

Report Date :

07.10.2011

IDENTIFICATION DETAILS

Name :	ENTRACK INTERNATIONAL TRADING PRIVATE LIMITED
Registered Office :	414, Star Plaza, Jasani Road, Rajkot – 360001, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	11.03.1994
Com. Reg. No.:	04-034664
Capital Investment / Paid-up Capital :	Rs. 100.000 Millions
CIN No.: [Company Identification No.]	U51100GJ1994PTC034664
Legal Form :	Private Limited Liability Company
Line of Business :	Trader and Importer of Luxury Watches, Writing Instruments, Jewelery and Leather etc.
No. of Employees :	130 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 1000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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.

INFORMATION PARTED BY

Name :	Mr. Rajesh
Designation :	Accounts Department
Contact No.:	91-9427724927
Date :	05.10.2011

LOCATIONS

Registered Office :	414, Star Plaza, Jasani Road, Rajkot – 360001, Gujarat, India
Tel. No.:	91-281-2477982
Mobile No.:	91-9427724927 (Mr. Rajesh)
Fax No.:	91-281-2477980
E-Mail :	info@entrackltd.com rajesh.s@entractltd.com mbrjt@entrackonline.com
Area :	1500 sq. ft.
Location :	Owned

DIRECTORS

AS ON 30.09.2010

Name :

Mr. Pankaj Rasiklal Shah

Designation :

Director

Address :

Jai Hind Press, Babubhai Shah Marg, Rajkot 360001, Gujarat, India

Date of Appointment :

04.04.1995

Din No.:

00467330

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
U51100GJ1994PTC034664	ENTRACK INTERNATIONAL TRADING PRIVATE LIMITED	Director	04-04-95	04-04-95	Active	NO
U51909GJ2004PTC044526	ENTRAC EXIM PRIVATE LIMITED	Director	28-07-04	28-07-04	Active	YES
U51109GJ2007PTC051852	ENTRACK HERITAGE PRODUCTS PRIVATE LIMITED	Director	28-09-07	28-09-07	Active	NO
U15400GJ2010PTC061567	ENTRACK ORGANIC HAUS PRIVATE LIMITED	Director	13-07-10	13-07-10	Active	NO

Name :

Mr. Dilipbhai Rasiklal Doshi

Designation :

Director

Address :

54, Britten Close, London NW117HQ United Kingdom

Date of Appointment :

04.04.1995

Din No.:

01317373

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
U51100GJ1994PTC034664	ENTRACK INTERNATIONAL TRADING PRIVATE LIMITED	Director	04-04-95	04-04-95	Active	NO
U15400GJ2010PTC061567	ENTRACK ORGANIC HAUS PRIVATE LIMITED	Additional director	24-09-10	24-09-10	Active	NO
U51109GJ2007PTC051852	ENTRACK HERITAGE PRODUCTS PRIVATE LIMITED	Whole-time director	24-09-10	24-09-10	Active	NO

Name :

Mr. Niranjan Rasiklal Shah

Designation :

Director

Address :

Kitab Ghar, Top Floor, Nr. Vasant Villa, Shroff Road, Rajkot 360001, Gujarat, India

Date of Appointment :

04.04.1995

Din No.:

01905042

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
U51100GJ1994PTC034664	ENTRACK INTERNATIONAL TRADING PRIVATE LIMITED	Director	04-04-95	04-04-95	Active	NO
U51909GJ2004PTC044526	ENTRAC EXIM PRIVATE LIMITED	Director	28-07-04	28-07-04	Active	YES

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Nayan D. Doshi / Mrs. Izabela N. Doshi	1500000
Dilipbhai Rasiklal Doshi	3500000
Kalindi D. Doshi	3500000
Vishakha D Doshi	1500000
Total	10000000

AS ON 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader and Importer of Luxury Watches, Writing Instruments, Jewelery and Leather etc.
Imports :
Products :	Luxury Watches
Countries :	· Germany · Switzerland
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

130 (Approximately)

Bankers :

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

· IndusInd Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
HDFC Bank Limited
Cash Credit Facility	242.416	288.070
Term Loans [Secured by equitable mortgage of company's immovable properties and hypothecation of goods, book debts on pari passue basis and guarantee given by Lloyds Bank, UK and personal guarantee of Directors]	57.702	105.313
IndusInd Bank Limited	123.730	0.000
[Secured by equitable mortgage of company's immovable properties and hypothecation of goods, book debts on pari passu basis and personal guarantee of Directors]
From NBFC:
Tata Capital Limited [Secured by hypothecation of vehicle]	5.373	0.000
Total	429.223	393.384
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Directors / Shareholders / Relative	29.020	41.164
Incorporate Loan	287.500	0.000
Kotak Mahindra Bank - OD	2.500	3.522
Total	319.020	44.686

Banking Relations :	--
Auditors :
Name :	Kalaria and Sampat Chartered Accountants
Address :	302, Star Avenue, Dr. Radhakrishnan Road, Opposite Rajkumar Collge, Rajkot – 360001, Gujarat, India
Tel. No.:	91-281-2464391
Fax No.:	91-284-2693310
Pan No.:	AACFK2045A
Associates :	· Kitabghar Printery · Art Land Traders

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs. 100.000 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		100.000	100.000	46.134
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		149.211	131.063	154.892
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		249.211	231.063	201.026
LOAN FUNDS
1] Secured Loans		429.223	393.384	247.779
2] Unsecured Loans		319.020	44.686	3.672
TOTAL BORROWING		748.243	438.070	251.451
DEFERRED TAX LIABILITIES		17.203	3.313	0.881
TOTAL		1014.658	672.446	453.358
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		279.707	255.715	135.257
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	523.608	443.966	381.260
	Sundry Debtors	159.724	70.405	55.009
	Cash & Bank Balances	4.638	6.141	7.013
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	167.326	82.270	110.861
Total Current Assets		855.296	602.782	554.143
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	141.166	137.650	144.679
	Other Current Liabilities	13.833	20.415	23.754
	Provisions	25.951	47.066	67.609
Total Current Liabilities		180.950	205.131	236.042
Net Current Assets		674.346	397.651	318.101
MISCELLANEOUS EXPENSES		60.603	19.080	0.000
TOTAL		1014.658	672.446	453.358

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1047.485	735.604	781.295
		Other Income	16.101	20.090	2.319
		TOTAL (A)	1063.586	755.694	783.614
Less	EXPENSES
		Cost of Goods Sold	586.195	387.863	408.334
		Personnel Expenses	56.404	41.307	40.613
		Administrative Expenses	153.309	145.259	129.116
		Selling and Distribution Expenses	111.381	78.703	94.433
		Miscellaneous Expenses W/Off	30.621	3.470	0.000
		TOTAL (B)	937.910	656.601	672.496
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		125.676	99.094	111.118
Less	INTEREST (D)		73.538	39.843	20.675
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		52.138	59.251	90.443
Less/ Add	DEPRECIATION/ AMORTISATION (F)		19.364	11.815	7.078
	PROFIT BEFORE TAX (E-F) (G)		32.774	47.436	83.365
Less	TAX (H)		14.587	17.432	31.734
	PROFIT AFTER TAX (H-I) (J)		18.187	30.004	51.631
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		124.605	148.443	97.134
Less	APPROPRIATIONS
		Transfer to General Reserve	(0.039)	(0.008)	(0.322)
		Dividend	0.000	(53.823)	0.000
	BALANCE CARRIED TO THE B/S		142.763	124.605	148.443
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	11.796	0.000	0.233
	TOTAL EARNINGS		11.796	0.000	0.233
	IMPORTS
		Import of goods	572.213	336.427	419.470
		Import of furniture / POS Material	39.133	79.184	41.691
		Import of Machine / Spares	3.352	0.462	0.000
	TOTAL IMPORTS		614.698	416.073	461.161
	Earnings Per Share (Rs.)		1.82	3.00	11.19

Particulars	31.03.2011
Sales Turnover (Approximately)	1030.000

The above information has been parted by Mr. Rajesh.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.70	3.97	6.58
Net Profit Margin (PBT/Sales)	(%)	3.12	6.44	10.67
Return on Total Assets (PBT/Total Assets}	(%)	2.88	5.52	12.09
Return on Investment (ROI) (PBT/Networth)		0.13	0.20	0.41
Debt Equity Ratio (Total Liability/Networth)		3.72	2.78	2.42
Current Ratio (Current Asset/Current Liability)		4.72	2.93	2.34

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. In Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors for goods	114.251	115.970	127.199
Sundry Creditors for expenses	26.915	21.680	17.480
Total	141.166	137.650	144.679

Check List by Info Agents	Available in Reports (Yes/No)
Year of Establishment	YES
Locality Of The Firm	YES
Constitution of the firm	YES
Premises Details	YES
Type of Business	YES
Line of Business	YES
Promotor’s background	--
No. of Employees	YES
Name of person contacted	YES
Designed of contact person	YES
Turnover of firm for last three years	YES
Profitability for last three years	NO
Reasons for variation <> 20%	NO
Estimation for coming financial year	NO
Capital of the business	YES
Details of Sister Concern	--
Major Suppliers	--
Major Customers	--
Payments Terms	YES
Export / Import details (if applicable)	YES
Market information	--
Litigation that the firm / promoter involved in	--
Banking details	YES
Banking facility details	--
Conduct of the banking account	--
Buyer visit details	--
Financial, if provided	NO
Incorporation details, if applicable	--
Last accounts filed at ROC	--
Major Shareholders, if available	--

OPERATIONS

Following one of the deepest global recession in recent times, the Indian economy showed signs of recovery during 2009-10, especially in the latter half. Though the pace and shape of global recovery remains slow, India managed to stem the recession and stage a sound recovery to grow at 7.2% during the year.

During the year, the company was proud to be involved with the Company’s Principal, Montblanc of Germany in the launch of Limited Edition “Gandhi Pens”, to honour the Father of the Nation “Mahatma Gandhi”. The Concept of these pens was given to Montblanc by the Chairman who worked tirelessly over a number of years with them to create these pens. These Limited Edition pens were launched successfully for sale worldwide including India by Montblanc in October 2009. Unfortunately sale only in India have been temporarily been interrupted since February 2010 awaiting certain lega clarifications from Indian Authorities

The company enhanced its presence in India with the opening of further new boutiques in Delhi and Mumbai making now a total of seventeen boutiques in India

The company achieved a turnover of Rs. 1047.500 millions during the year as compared to Rs. 735.600 millions during the previous year registering an impressive 42% growth. However profit before tax is lower at Rs. 18.130 millions compared to Rs. 30.004 millions in the previous year due to higher interest and advertising and promotion costs. With the Indian economy expected to grow at more than 8% p.a. in the foreseeable future, the Directors look forward to sustained growth in turnover and considerable improvement in overall profitability.

FINANCE

During the year, the company availed additional Working capital limits of Rs. 140.000 Millions from IndusInd Bank and an unsecured loan of Rs.2.500 millions from Kotak Mahindra Bank.

CONTINGENT LIABILITIES (AS ON : 31.03.2010) :

Guarantees given by the company and outstanding Rs. 0.525 million

Demand for Income Tax payable for A.Y. 2006-2007 Rs. 3.736 millions

FORM : 8

Corporate identity number of the company	U51100GJ1994PTC034664
Name of the company	ENTRACK INTERNATIONAL TRADING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	414 Star Plaza Jasani Road, Rajkot, Gujarat – 360001, India
This form is for	Modification of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India
Nature of instrument creating charge	Supplemental Memorandum relating to Hypothecation of Stocks, Book Debts and Machinery.
Date of instrument Creating the charge	19/06/2010
Amount secured by the charge	Rs. 550.000 millions
Brief 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 Working Capital facility shall payable On Demand and Term Loan facility shall repayable insuitable installments. Margin As may be stipulated by the Bank from time to time. Extent and operation of the charge Hypothecation by way of First Charge on Company's Stocks, Book Debts and Machinery, etc., to secure as a continuing security below for the repayment of Rs.550.000 millions together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank. Other NIL.
Short particulars of the property charged (Including location of the property)	Hypothecation first charge over the Stocks, Book Debts and Machinery of the Company.
Date of instrument modifying the charge	13/05/2009
Particulars of the present modification	The Charge shall now stand increased from Rs.400.000 millions to Rs.550.000 millions (Comprising: Cash Credit of Rs.350.000 millions, Term Loan of Rs.150.000 millions, WCTL of Rs.50.000 millions), against the security of Stocks, Book Debts and Machinery of the Company.

FIXED ASSETS

· Office Premises

· Office Equipments

· Furniture

· Plant and Machinery

· Computers

· Tools & Parts

· Vehicles

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.49.19
UK Pound	1	Rs.75.91
Euro	1	Rs.65.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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		48

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.