MIRA INFORM REPORT

Report Date :

19.09.2011

IDENTIFICATION DETAILS

Name :	SVG EXPORTS PRIVATE LIMITED
Registered Office :	No. 19, 1^st Floor, Kanakapura Main Road, Doddakallsandra, Bangalore – 560062, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	07.03.2001
Com. Reg. No.:	08-28721
Capital Investment / Paid-up Capital :	Rs.12.500 Millions
CIN No.: [Company Identification No.]	U14102KA2001PTC028721
TAN No.: [Tax Deduction & Collection Account No.]	BLRS11400E
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in Manufacture/Processing and Export of Granite Random Slabs.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 2315232
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 – 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

LOCATIONS

Registered Office :	No. 19, 1^st Floor, Kanakapura Main Road, Doddakallsandra, Bangalore – 560062, Karnataka, India
Tel. No.:	91-80-26669817 / 9818 / 9819 / 5752
Fax No.:	91-80-26665617
E-Mail :	krishnamurthyhn@gmail.com svgstone@svgexports.com
Area :	10000 Sq. Ft.
Location :	Owned
Factory :	Plot No. 73, Phase – 2, (Opposite – MGR Engineering College) SIPCOT Industrial Complex, Hosur 635109, Tamil Nadu, India
Tel. No.:	91-4344-260735 / 260736
Fax No.:	91-4344-260737
E-mail :	stone@svgexports.com
Area :	10,000 Sq. Ft. (7 Acres Land)
Location :	Leased
Sales Office :	#14575, East 11^th Mile Road, Wareen, MI – 48088, USA
Tel. No.:	91-586-552-4601
Fax No.:	91-248479-5322
E-mail :	madhu@svgexports.com

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Bhaskar Adi
Designation :	Chairman Cum Managing Director
Address :	315/7, II Main Road, 23^rd Cross, 6^th Block, Jayanagar, Bangalore - 560082
Date of Birth/Age :	27.07.1964
Qualification :	Graduate
Date of Appointment :	07.03.2001

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U22110KA1995PTC018275	ELEGANT FORMS (INDIA) PRIVATE LIMITED	Director	11/07/1995	11/07/1995	-	Active	NO
2	U14102KA2001PTC028721	SVG EXPORTS PRIVATE LIMITED	Managing director	07/03/2001	07/03/2001	-	Active	NO
3	U55101KA2005PTC036951	SVG HOTELS PRIVATE LIMITED	Managing director	11/08/2005	11/08/2005	-	Active	NO

Name :	Mrs. Thara Bhaskar Adi
Designation :	Director
Address :	315/7, II Main Road, 23^rd Cross, 6^th Block, Jayanagar, Bangalore – 560082
Date of Birth/Age :	14.07.1970
Qualification :	Graduate
Date of Appointment :	21.02.2001

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U14102KA2001PTC028721	SVG EXPORTS PRIVATE LIMITED	Whole-time director	21/07/2001	21/07/2001	-	Active	NO
2	U55101KA2005PTC036951	SVG HOTELS PRIVATE LIMITED	Director	11/08/2005	11/08/2005	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Mr. A Bhaskar	749964
Mrs. A Tara	500000
Ajay K Kairo	1
Balaji Enterprises	1
Bathijia Enterprises	1
Chandrabai	1
Deepa KJ	1
Dr. Jayaram	1
Ekta D. Ahuja	1
Gopaldas Thakurdas	1
Jothi Enterprises	1
Kinger Associates	1
Kishandas Bodaram	1
Naraindas Bodaram	1
N V Ahuja	1
Prakash H K (HUF)	1
Puja P Bajaj	1
Raina Bhatia	1
Rajiv Raghav Ahuja (HUF)	1
Rajkamar N Kalro	1
Sadhija Enterprises	1
Sanjay S Baglani	1
Shree Siddivinayaka Traders, Bangalore	1
Shri Shiv Shakti	1
Suraj Trade Credits, Salem	1
Sureshlal Hirala (HUF)	1
Thirthadas and Sons, Bangalore	1
Vijay N Kalro (HUF)	1
Bathija Brothers, Bangalore	1
Bharat and Company, Bangalore	1
Gajra Bai D/o Saklecha	1
Geeta Enterprises, Bangalore	1
Kailash and Company, Bangalore	1
Kanta S/o. Gawtam Chand	1
Madhu Motiram S/o. Motiram	1
Roop Combines, Bangalore	1
Sevaram Asshis Kumar S/o. Rekha Amarilal	1
Sunil and Company, Mysore	1
Total	1250000

AS ON 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.99
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in Manufacture/Processing and Export of Granite Random Slabs.
Products :	Granites and Marbles
Exports :
Countries :	USA, UK, European Countries & Australia
Imports :
Countries :	Italy
Terms :
Selling :	D/P or D/A
Purchasing :	L/C, Credit (90-120 days) Local – Payment on delivery

PRODUCTION STATUS AS ON (31.03.2010)

Particulars	Licensed Capacity	Installed Capacity
One Side Polished Granite (in Units)	2500000	2500000
One Side Polished Tiles (in cbm)	100000	100000

PRODUCTION STATUS AS ON (31.03.2010)

Particulars	Actual Production
One Side Polished Granite slabs (in Sq. Ft.)	2282585
One Side Polished Tiles (in Sq. Ft.)	881218
Rough Granite Block (in Cbm) Slab	1230
Rough Granite Block (in Cbm) Tile	75

GENERAL INFORMATION

Suppliers :

• Briton SPA, Italy
• Standard India Granites, Trivandram

Customers :

Tab (India), Bangalore

No. of Employees :

200 (Approximately)

Bankers :

Canara Bank, Overseas Branch, Ramanashree Arcade, Midford Gardens, No. 18, M. G. Road, Bangalore – 560001, Karnataka

Facilities :

SECURED LOAN	AS ON 31.03.2010 Rs. In millions)	AS ON 31.03.2009 (Rs. In millions)
Working Capital Facilities from Canara Bank: (Secured by Hypothecation of lnventories and personal Guarantee of Directors)	261.624	239.318
Vehicle and Equipment Loan (Secured by Hypothecation of Vehicle and Equipment)	38.250	51.805
TOTAL	299.874	291.123

UNSECURED LOAN	AS ON 31.03.2010 Rs. In millions)	AS ON 31.03.2009 (Rs. In millions)
From Directors	5.767	11.862
From Shareholders	26.190	29.800
Inter Corporate Deposits	0.932	0.000
TOTAL	32.889	41.662

Banking Relations :	-
Auditors :
Name :	Rao and Venkatesulu Chartered Accountant
Address :	391, 9^th Cross, 2^nd Block, Jayanagar, Bangalore – 560011, Karnataka, India
Tel No.:	91-80-26568611/26562016
Pan No.:	AAHPV9252E
Associates/Subsidiaries :	SVG Exports (P) Limited, INC

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Share	Rs.10/- Each	Rs.12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Share	Rs.10/- Each	Rs.12.500 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		12.500	12.500	12.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		566.308	519.383	451.773
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		578.808	531.883	464.273
LOAN FUNDS
1] Secured Loans		299.874	291.123	315.176
2] Unsecured Loans		32.889	41.662	42.409
TOTAL BORROWING		332.763	332.785	357.585
DEFERRED TAX LIABILITIES		40.253	35.132	31.329
TOTAL		951.824	899.800	853.187
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		336.402	323.418	305.772
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		292.095	144.645	144.645
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	127.266	183.962	206.289
	Sundry Debtors	248.112	252.402	189.379
	Cash & Bank Balances	1.425	3.219	1.341
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	76.130	131.384	110.696
Total Current Assets		452.933	570.967	507.705
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	65.423	77.912	56.997
	Other Liabilities	52.118	49.845	36.104
	Provisions	12.065	11.473	11.834
Total Current Liabilities		129.606	139.230	104.935
Net Current Assets		323.327	431.737	402.770
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		951.824	899.800	853.187

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	701.854	621.119	597.131
		Other Income		0.075	0.000
		TOTAL	701.854	621.194	597.131
	EXPENSES
		Office Expenses
		Administrative Expenses	604.231	539.247
		Advertising Expenses			NA
		TOTAL	604.231	539.247	NA
	PROFIT BEFORE TAX		64.013	81.947	85.974
Less	TAX		17.089	14.336	(8.388)
	PROFIT AFTER TAX		46.924	67.611	94.362
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	534.015	508.692
	TOTAL EARNINGS		NA	534.015	508.692
	Earnings Per Share (Rs.)		38.000	54.00	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.68	10.88	15.80
Net Profit Margin (PBT/Sales)	(%)	NA	13.19	14.39
Return on Total Assets (PBT/Total Assets}	(%)	8.11	9.61	10.56
Return on Investment (ROI) (PBT/Networth)		0.11	0.15	0.18
Debt Equity Ratio (Total Liability/Networth)		0.80	0.88	0.99
Current Ratio (Current Asset/Current Liability)		4.19	4.10	4.83

LOCAL AGENCY FURTHER INFORMATION

OPERATING PERFORMANCE

The Company made a Gross Turnover of Rs.621.119 millions when compared to Rs.597.131 millions in previous year and a net profit before tax of Rs.81.946 millions when compared to Rs.85.974 millions in previous year.

FORM 8

Name of the company	SVG EXPORTS PRIVATE LIMITED (SVG)
Presented By	SVG EXPORTS PRIVATE LIMITED (SVG) and Canara Bank, OSB, M G Road, Bangalore – 56001
1) Date and description of instrument creating the change	9.9.2002 (Ninth day of September, 2002) Hypothecation Agreement
2) Amount secured by the charge/amount owing on the securities of charge	Rs.15.000 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	If the property acquired is subject to charge, date of acquisition of property should be given hypothecation of the Granite Slab Dressing/Polishing machine
4) Gist of the terms and conditions and extent and operation of the charge.	Rate of Interest @17% p.a.
5) Name and Address and description of the person entitled to the charge.	Canara Bank, Overseas Branch, Ramanashree Arcade, Midford Gardens, No. 18, M. G. Road, Bangalore – 560001, Karnataka, India
6) Date and brief description of instrument modifying the charge	NA
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.	NA

This form is for	Modification of charge
Charge identification number of the modified	80015846
Corporate identity number of the company	U14102KA2001PTC028721
Name of the company	SVG EXPORTS PRIVATE LIMITED (SVG)
Address of the registered office or of the principal place of business in India of the company	No. 19, 1^st Floor, Kanakapura Main Road, Doddakallsandra, Bangalore – 560062, Karnataka, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	Canara Bank, Overseas Branch, Ramanashree Arcade, Midford Gardens, No. 18, M. G. Road, Bangalore – 560001, Karnataka
Nature of description of the instrument creating or modifying the charge	Supplemental Common Hypothecation Agreement
Date of instrument Creating the charge	17.02.2009
Amount secured by the charge	Rs.250.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest PC/FDB/FBE – As per RBI guidelines applicable to rupee export credit – presently 10% p.a. Terms of Repayment PC Usance – 90 days FBE Usance Period – 150 days LC – Period of DA/DP – 120 days Margin PC – Stores and Spares – 25%; Others – 10% LC – 25% Extent and Operation of the charge The charge shall operate to the extent of Rs.250.000 Millions plus interest commission costs expenses and other charges thereon. Others The said amount of Rs.250.000 Millions comprises PC/FDB/FBE Rs. 240.000 Millions and LC Rs.10.000 Millions
Short particulars of the property charged	Hypothecation by way of first charge on stock of raw materials semi finished goods, finished goods, bookdebts, plant, machineries and other movables both present and future stored / installed at No. 19, Doddakallsandra, Kanakapura Main Road, Bangalore – 560062, Karnataka, India or at any other place.
Date of latest modification prior to the present modification	08.01.2008
Particulars of the present modification	The above, the charge on stocks, plants, machineries, bookdebts and other movables present and future shall cxover the present modified limits aggregating Rs.250.000 Millions (All other terms and conditions remain unchanged)

Fixed Assets:

• Land and Land Development
• Building
• Plant and Machinery
• Electrical Installations
• Computers and Peripherals
• Vehicles
• Office Equipment
• Furniture and Fixtures
• Capital Work in Progress

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.47.46
UK Pound	1	Rs.74.95
Euro	1	Rs.65.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.