MIRA INFORM REPORT

Report Date :

22.09.2011

IDENTIFICATION DETAILS

Name :	IMS MERCANTILES PRIVATE LIMITED
Registered Office :	704, 7^th Floor, Ring Road Mall, Sector – 3, Rohini, Delhi – 110 085
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.08.2003
Com. Reg. No.:	55-121932
Capital Investment / Paid-up Capital :	Rs.12.001 Millions
CIN No.: [Company Identification No.]	U51395DL2003PTC121932
TAN No.: [Tax Deduction & Collection Account No.]	DELI03975G
PAN No.: [Permanent Account No.]	AABCI1382D
Legal Form :	Private Limited Liability Company
Line of Business :	Importer and Trader of Rechargeable Batteries, Digital Video and Other Electronics Products.
No. of Employees :	Approximately 110 (In Office)

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 121000
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. 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

INFORMATION PARTED BY

Name :	Mr. Rahul Baid
Designation :	Sales Officer (Modern Trade)
Contact No.:	91-9910084047
Date :	17.09.2011

LOCATIONS

Registered Office :	704, 7^th Floor, Ring Road Mall, Sector – 3, Rohini, Delhi – 110 085, India
Tel. No.:	91-11-47074499/ 47074444/ 47074400
Mobile No.:	91-9910084047 (Mr. Rahul Baid)
Fax No.:	91-11-47074444/ 47074499
E-Mail :	info@imsmercantiles.in rahul.baid.07@gmail.com
Website :	www.imsmercantiles.in
Area :	1800 sq ft
Location :	Owned
Branch Office :	Located at: v Mumbai v Kolkata v Jaipur

DIRECTORS

As on 30.09.2010

Name :

Mr. Amit Kumar Saraf

Designation :

Director

Address :

D-153, Antriksh Apartment, Sector-14, Rohini, Delhi – 110 085, India

Date of Birth/Age :

03.09.1979

Date of Appointment :

26.08.2003

DIN No.:

00450475

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	U51395DL2003PTC121932	IMS Mercantiles Private Limited	Director	26-08-03	26-08-03	-	Active	NO
2	U45201DL2006PTC145298	I M S Builders and Developers Private Limited	Additional director	06-06-07	06-06-07	-	Active	YES
3	U70101DL2006PTC148808	IMS Promoters and Developers Private Limited	Director	19-08-09	19-08-09	-	Active	NO

Name :

Ms. Anita Saraf

Designation :

Director

Address :

C-109, Antriksh Apartment, Sector-14, Rohini, Delhi – 110 085, India

Date of Birth/Age :

22.10.1969

Date of Appointment :

05.11.2008

DIN No.:

02403194

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	U51395DL2003PTC121932	IMS Mercantiles Private Limited	Director	05-11-08	05-11-08	-	Active	NO
2	U70101DL2006PTC148808	IMS Promoters and Developers Private Limited	Director	29-09-09	19-11-08	-	Active	NO
3	U45201DL2006PTC145298	I M S Builders and Developers Private Limited	Director	29-09-10	19-11-08	-	Active	YES

Name :

Mr. Deepak Saraf

Designation :

Director

Address :

D-153, Antriksh Apartment, Sector-14, Rohini, Delhi – 110 085, India

Date of Birth/Age :

16.03.1983

Date of Appointment :

26.06.2006

DIN No.:

01055425

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	U51395DL2003PTC121932	IMS Mercantiles Private Limited	Director	26-06-06	26-06-06	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Rahul Baid
Designation :	Sales Officer (Modern Trade)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares	Percentage of Holding
Amit Saraf	301420	25.12%
Deepak Saraf	52210	4.35%
Vijay Saraf Karta of Vijay Amit and Deepak HUF	31000	2.58%
Vijay Saraf Karta of Vijay Kusum and Deepak HUF	31000	2.58%
Anita Saraf	579020	48.25%
Shalu Saraf	22000	1.83%
Simi Saraf	33000	2.75%
Swati Saraf	11700	0.97%
Megha Saraf	6250	0.52%
Vijay Saraf	7500	0.62%
Savita Bansal	50000	4.17%
Suresh Bansal	75000	6.25%
Total	1200100	100.00%

As on 21.03.2011

Names of Allottees	No. of Shares
Anita Saraf	17500
Ankit Saraf	26250
Deepak Saraf	25000
Kusum Lata Saraf	42000
Megha Saraf	15500
Simmi Saraf	10000
Vijay Saraf	17500
Total	153750

As on 29.10.2010

Names of Allottees	No. of Shares
Deepak Saraf	27500
Savita Bansal	19000
Vijay Saraf	10000
Total	56500

As on 30.09.2010

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

BUSINESS DETAILS

Line of Business :	Importer and Trader of Rechargeable Batteries, Digital Video and Other Electronics Products.
Products :	v Cordless Telephones Batteries v High Power Alkaline Batteries v Li-ion Batteries v Ni-Cd Rechargeable Batteries v Ni-MH Rechargeable Batteries v Photo Accessories v Handy Scan v LED Torch v Li-ion Chargers v Rechargeable Batteries Chargers v Rechargeable LED Torches
Imports :
Products :	Electronic Products
Countries :	v Hong Kong v China
Terms :
Selling :	Cash and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

Customers :

Retailers

No. of Employees :

Approximately 110 (In Office)

Bankers :

v State Bank of Mysore, Industrial Finance Branch, 23/1, Regal Building, Connaught Place, New Delhi – 110 001, India

v Standard Chartered Bank, Netaji Subhash Marg Branch

v State Bank of Mysore, Industrial Finance Branch, 15-17, Shaheed Bhagat Singh Marg, New Gole Market, New Delhi – 110 001, India

v Oriental Bank of Commerce, I.U. Block, Pitampura, Delhi – 110 088, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
ICICI Bank Limited (Swift) (Fully Secured against Hypothecation of Car)	0.359	0.430
ICICI Bank Limited (Sonata 6334) (Fully Secured against Hypothecation of Car )	0.307	0.561
Bank Overdraft Account	22.566	10.397
Total	23.232	11.388

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Director, Friends and Relatives	7.219	1.522
From Security Deposit from Customer	0.000	4.822
Total	7.219	6.344

Banking Relations :	--
Auditors :
Name :	Bansal Surinder and Company Chartered Accountants
Address :	201/8, Sushma Tower, Central Market, D-Block, Prashant Vihar, Delhi – 110 085, India
Income-tax PAN of auditor or auditor's firm :	AADPB3505C
Associates/Subsidiaries :	IMS Builders and Developers Limited, Uttar Pradesh Line of Business: Real Estate

CAPITAL STRUCTURE

After 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1410350	Equity Shares	Rs.10/- each	Rs.14.104 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1200100	Equity Shares	Rs.10/- each	Rs.12.001 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		12.001	10.751	8.120
2] Share Application Money		1.959	0.000	0.000
3] Reserves & Surplus		16.254	11.899	7.246
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		30.214	22.650	15.366
LOAN FUNDS
1] Secured Loans		23.232	11.388	12.791
2] Unsecured Loans		7.219	6.344	7.042
TOTAL BORROWING		30.451	17.732	19.833
DEFERRED TAX LIABILITIES		0.556	0.393	0.294
TOTAL		61.221	40.775	35.493
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.854	10.672	9.255
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	64.562	37.677	35.348
	Sundry Debtors	20.265	17.873	16.321
	Cash & Bank Balances	10.437	6.472	4.018
	Other Current Assets	0.632	0.590	0.344
	Loans & Advances	4.560	1.622	2.189
Total Current Assets		100.456	64.234	58.220
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors & Other Current Liabilities	47.986	32.821	30.895
	Provisions	2.103	1.310	1.134
Total Current Liabilities		50.089	34.131	32.029
Net Current Assets		50.367	30.103	26.191
MISCELLANEOUS EXPENSES		0.000	0.000	0.047
TOTAL		61.221	40.775	35.493

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	202.075	142.916	120.326
		Other Income	5.146	0.640	NA
		TOTAL (A)	207.221	143.556	NA
Less	EXPENSES
		Cost of Goods Sold	122.102	78.906	NA
		CHA Charges	3.653	1.914	NA
		Job Work Charges	1.948	1.625	NA
		Custom Duty	24.748	16.685	NA
		Packing Charges	2.375	1.467	NA
		Advertisement & Publicity	1.809	0.945	NA
		Carriage	2.666	1.059	NA
		Commission A/c	6.820	3.251	NA
		Director's Remuneration	1.965	1.622	NA
		Marketing & Distribution Expenses	1.959	0.848	NA
		Salary	9.560	7.522	NA
		Sales Promotion Expenses	4.295	2.815	NA
		Traveling & Daily Allowance	5.351	4.607	NA
		Other Expenses	12.769	16.384	NA
		TOTAL	202.020	139.650	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		5.201	3.906	2.892
Less/ Add	DEPRECIATION/ AMORTISATION		0.692	0.527	0.442
	PROFIT BEFORE TAX		4.509	3.379	2.450
Less	TAX		1.404	1.357	1.057
	PROFIT AFTER TAX		3.105	2.022	1.393
	Earnings Per Share (Rs.)		2.59	1.88	1.72

Particulars	31.03.2011
Sales Turnover (Approximately)	270.900

The above information has been parted by Mr. Rahul Baid (Sales Officer-Modern Trade).

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.50	1.47	NA
Net Profit Margin (PBT/Sales)	(%)	2.23	1.41	2.04
Return on Total Assets (PBT/Total Assets}	(%)	4.05	4.51	3.63
Return on Investment (ROI) (PBT/Networth)		0.15	0.15	0.16
Debt Equity Ratio (Total Liability/Networth)		2.67	2.29	3.38
Current Ratio (Current Asset/Current Liability)		2.01	1.88	1.82

LOCAL AGENCY FURTHER INFORMATION

Note:

The registered office address of the company has been shifted from A–16, 2^nd Floor, Saraswati Vihar, Outer Ring Road, Pitampura, Delhi – 110 034 to present w.e.f. 01.05.2010.

FORM 8:

Corporate identity number of the company	U51395DL2003PTC121932
Name of the company	IMS MERCANTILES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	704, 7^th Floor, Ring Road Mall, Sector – 3, Rohini, Delhi – 110 085, India E-Mail: info@imsmercantiles.in
This form is for	Modification of charge
Charge identification number of the modified	10162607
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	State Bank of Mysore, Industrial Finance Branch, 15-17, Shaheed Bhagat Singh Marg, New Gole Market, New Delhi – 110 001, India E-Mail: ifbdelhi@sbm.co.in
Nature of description of the instrument creating or modifying the charge	Agreement of hypothecation of goods and assets. Letter evidencing extension of equitable mortgage.
Date of instrument Creating the charge	01.07.2011
Amount secured by the charge	Rs.143.200 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Cash Credit @ 4.75% above SBM base rate presently effective rate 14.25% p.a. Terms of Repayment: Working capital - payable on demand. Corporate loan - Repayable in 18 monthly installments of Rs.0.178 million w.e.f. June 2010. Margin: Stocks - 25% Receivables - 40% LC - 15% Corporate Loan - 23.80% Extent and Operation of the charge: Extent and Operation - 100% Others: The above is to secure the following :- Cash Credit - Rs.50.000 millions Letter of Credit - Rs.60.000 millions Forward Contract - Rs.30.000 millions Buyers Credit - (Rs.60.000 millions) within LC Corporate Loan - Rs.3.200 millions
Short particulars of the property charged	Exclusive first hypothecation charge over stocks of goods comprising of finished goods, stores and spares etc. including stocks lying at depots, stocks in transit, godowns etc. and hypothecation of all present and future book debts and fixed assets, and mortgage of the commercial office space and hypothecated vehicles.
Date of latest modification prior to the present modification	21.06.2010
Particulars of the present modification	There being no change in the total credit facilities of Rs.143.200 millions already registered however CC limit has been increased from Rs.40.000 millions to Rs.50.000 millions and LC limit has been reduced from Rs.70.000 millions to Rs.60.000 millions within the overall WCF of Rs.140.000 millions and shall continued to be secured by 1^st and exclusive charge over all P/F C/Assets and fixed assets and extension of equitable mortgage over company’s immovable property i.e. 704 and 705, 7^th Floor, V3S Ring Road Mall, Plot No.21, Manglam Place, Sector-3, Rohini, New Delhi.

Corporate identity number of the company	U51395DL2003PTC121932
Name of the company	IMS MERCANTILES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	704, 7^th Floor, Ring Road Mall, Sector-3, Rohini, Delhi – 110 085, India
This form is for	Modification of charge
Type of charge	Immovable Property
Particular of charge holder	STATE BANK OF MYSORE
Nature of instrument creating charge	No instrument was executed. Letter evidencing deposit of title deeds to create equitable mortgage.
Date of instrument Creating the charge	21.06.2010
Amount secured by the charge	Rs.143.200 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC @ 1.50% Above SBM BPLR i.e. 13.75% at present. Corporate Loan @ 1.75% + PLR presently effective rate 14% p.a. Terms of Repayment Working Capital - Payable on demand. Corporate Loan - repayable in 18 monthly installments of Rs.0.178 million w.e.f. June 2010. Margin Stocks - 25% Receivables - 40% LC - 20% Corporate Loan - 23.80% Extent and Operation of the charge Extent and Operation - 100% Others The above is to secure the following :- Cash Credit - Rs. 40.000 millions Letter Of Credit - Rs. 70.000 millions Forward Contract - Rs. 30.000 millions Corporate Loan - Rs. 3.200 millions
Short particulars of the property charged	Exclusive first hypothecation charge over stocks of goods comprising of finished goods, stores and spares etc. including stocks lying at depots, stocks in transit, godowns etc. and hypothecation of all present and future book debts and fixed assets of the company excluding commercial office space and hypothecated vehicles.

TRADE REFERENCES:

v Woolworth Wholesale Private Limited, Mumbai

v Future Retail, Mumbai

FIXED ASSETS:

v Air Conditioners

v Car Santro

v Car – Sonata

v Car – Indica

v Car - Tavera SS

v Car – Swift

v Computer

v Cycle

v Dies

v EPABX and Tele Phone Instruments

v Fax Machine

v Fire Extinguisher

v Furniture and Fixture

v Office Equipments

v Reliance Phone

v Water Dispenser

v Office Building

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.47.89
UK Pound	1	Rs.75.31
Euro	1	Rs.65.64

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	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		42

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.