MIRA INFORM REPORT

Report Date :

20.03.2012

IDENTIFICATION DETAILS

Name :	ASHOK GRANITES LIMITED (w.e.f. 28.04.1992)
Formerly Known As :	ASHOK GRANITES PRIVATE LIMITED
Registered Office :	4/35, Bharathi Street, Swarnapuri, Salem – 636004, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	13.11.1991
Com. Reg. No.:	18-007127
Capital Investment / Paid-up Capital :	Rs.11.250 Millions
CIN No.: [Company Identification No.]	U14102TZ1991PLC007127
TAN No.: [Tax Deduction & Collection Account No.]	CHEA08095D
Legal Form :	Closely held public limited liability company.
Line of Business :	Manufacturers and Exporter of Polished Granite, Slabs, Monuments and Tiles.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 640000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are 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	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 :	4/35, Bharathi Street, Swarnapuri, Salem – 636004, Tamilnadu, India
Tel. No.:	91-427-2447645 / 2448490 / 2345456 / 2345572
Fax No.:	91-427-2446223/ 2448744
E-Mail :	ashok@md3.vsnl.net.in gtpho@sancharnet.in ashok2k@eth.net ashokgranites@dataone.in ashokho@gmail.com
Factory :	60/4A, Vellakkalpatty, Chetichavadi, Omalur, Salem - 636012, Tamilnadu, India
Tel. No.:	91-427-2335020 / 2345456 / 2345374
Fax No.:	91-427-2345223
E-Mail :	ashok2k@eth.net
Area :	250000 Sq. Ft.
Location :	Owned

DIRECTORS

As on30.09.2011

Name :

Ms. Muthusamy Baby Saroja

Designation :

Director

Address :

134 Manicakavasagam Street, Balaji Nagar, Fairlands, Salem – 636016, Tamilnadu, India

Date of Birth/Age :

15.12.1954

Qualification :

B.S.C

Date of Appointment :

13.11.1991

DIN No.:

00047539

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	U65921TZ1991PLC003149	G T P FINANCE LIMITED	Director	25/02/1991	25/02/1991	-	Active	NO
2	U27310TZ1991PTC003384	GTP EXPORTS PRIVATE LIMITED	Director	7/8/1991	7/8/1991	-	Active	NO
3	U14102TZ1991PLC007127	ASHOK GRANITES LIMITED	Director	13/11/1991	13/11/1991	-	Active	NO
4	U14101TZ1991PTC003523	GTP CERAMICS PRIVATE LIMITED	Director	4/3/2011	4/3/2011	-	Active	NO

Name :

Mr. Duraisamy Krishnan

Designation :

Whole Time Director

Address :

Old No. 2/65, B3, New No. 129/5, 11^th cross, Silvaya Nagar, Alagapuram, Salem-636016, Tamilnadu, India

Date of Birth/Age :

30.07.1967

Qualification :

B.E.

Date of Appointment :

01.02.1998

DIN No.:

00047686

Name :

Mr. Appichiounder Mani

Designation :

Director

Address :

2/55-5, 3^rd Cross, II Main Road, Shivaya Nagar, Reddiyur, Salem – 636016, Tamilnadu, India

Date of Birth/Age :

18.07.1956

Qualification :

B.A.

Date of Appointment :

05.05.1995

DIN No.:

01982414

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	U65991TN1993PTC024228	WISE AND SAFE HOLDINGS PRIVATE LIMITED	Director	21/01/1993	21/01/1993	-	Active	NO
2	U14102TZ1991PLC007127	ASHOK GRANITES LIMITED	Director	5/5/1995	5/5/1995	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on30.09.2011

Names of Shareholders	No. of Shares
M Baby Saroja	114100
D. Krishnan	100
A Mani	100
S. Muthurajan	722700
GTP Exports Private Limited, Tamilnadu, India	35000
M. Ashok Raj	74700
M. Ramya	92500
M. Divya	7500
S. Pavayammnal	78300
Total	1125000

As on30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	3.00
Directors or relatives of Directors	90.00
Other top fifty shareholders	7.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporter of Polished Granite, Slabs, Monuments and Tiles.

Products :

· Granite

· Monuments

· Slabs

Product Description	ITC Code
Cut and Polished Granite Slabs and Monuments	251612.02

PRODUCTION STATUS (As on 31.03.2010)

Installed Capacity: 244800 (Qty/Sq. Ft)

Actual Production

Particulars	Unit	Production
Granite	Qty/Sq. Ft	186784
Granite Tiles	Qty/Sq. Ft	19779

GENERAL INFORMATION

No. of Employees :

300 (Approximately)

Bankers :

• The Karnataka Bank Limited, Divya Towers, For Main Road, Salem – 636001, Tamilnadu, India

• Karnataka Bank Limited, Registered and Head Office : P.B. No.599, Mahaveera Circle, Kankandy, Mangalore-575002, Karnataka, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2010	As on 31.03.2009
From Karnataka Bank Limited
1. Export Packing Credit Limit (Secured by Equitable Mortgage of the immovable properties of the company and by hypothecation of stocks, consumables, spares, plant and machinery, book debts- both present and future and guaranteed by the directors)	11.778	0.000
Post Shipment Credit (Secured by hypothecation or relevant Export Bills)	79.193	105.958
Total	90.971	105.958

Banking Relations :	--
Auditors :
Name :	Bala and Sakthi Chartered Accountants
Address :	7AA Ramakrishna Road, Sundaram Nursing Home Building, Salem – 636007, Tamilnadu, India
Tel. No.:	91-427-2210676/2212718
Associate:	GTP Finance Limited
Enterprises owned by key managerial personal/ relative of key managerial personnel:	GTP Exports Private Limited GTP Granites Limited
Subsidiaries :	Granite and Tombstone Products Inc

CAPITAL STRUCTURE

As on 31.03.2011

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
1125000	Equity Shares	Rs.10/- each	Rs.11.250 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		11.250	11.250	11.250
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		149.104	139.165	126.867
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		160.354	150.415	138.117
LOAN FUNDS
1] Secured Loans		90.971	105.958	91.884
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		90.971	105.958	91.884
DEFERRED TAX LIABILITIES		11.969	14.909	16.973
TOTAL		263.294	271.282	246.974
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		76.757	69.494	76.459
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		5.598	4.098	3.098
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	34.884	44.172	60.003
	Sundry Debtors	92.945	119.204	90.665
	Cash & Bank Balances	6.037	23.787	4.739
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	68.544	35.044	26.750
Total Current Assets		202.410	222.207	182.157
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	10.435	12.721	5.987
	Other Current Liabilities	8.095	8.643	6.905
	Provisions	2.941	3.153	1.848
Total Current Liabilities		21.471	24.517	14.740
Net Current Assets		180.939	197.690	167.417
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		263.294	271.282	246.974

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	268.827	287.131	254.756
		Income from Wind Mill Generation	3.554	2.021	1.856
		Other Income	3.771	0.484	0.415
		TOTAL (A)	276.152	289.636	257.027
Less	EXPENSES
		Raw Material	113.485	120.916	114.699
		Consumable	24.739	24.957	22.354
		Power and Fuel	7.563	6.076	4.140
		Other Manufacturing Expenses	66.406	70.668	56.011
		Administrative Expenses	13.049	11.150	10.808
		Selling Expenses	16.930	19.293	19.668
		Increase/ Decrease in Stock	4.742	3.797	[3.116]
		TOTAL (B)	246.914	256.857	224.564
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		29.238	32.779	32.463
Less	FINANCIAL EXPENSES (D)		8.747	9.268	7.474
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.491	23.511	24.989
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.550	10.124	9.976
	PROFIT BEFORE TAX (E-F) (G)		9.941	13.387	15.013
Less	TAX (H)		0.001	1.089	7.023
	PROFIT AFTER TAX (G-H) (I)		9.940	12.298	7.990
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		99.554	87.256	79.266
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	0.000
	BALANCE CARRIED TO THE B/S		109.484	99.554	87.256
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	267.778	286.306	253.252
		Insurance and Freight	0.146	0.151	0.149
	TOTAL EARNINGS		267.924	286.457	253.401
	IMPORTS
		Rough Granite Blocks	1.283	8.272	5.856
		Polishing Materials and Consumable Spares	7.866	7.955	6.645
		Machinery Spares	0.849	1.056	0.549
		Capital Goods	0.000	0.000	1.148
	TOTAL IMPORTS		9.998	17.283	14.198
	Basic/ Diluted Earnings Per Share (Rs.)		8.84	10.93	6.72

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.60	4.25	3.10
Net Profit Margin (PBT/Sales)	(%)	3.70	4.66	5.89
Return on Total Assets (PBT/Total Assets}	(%)	3.56	4.59	5.80
Return on Investment (ROI) (PBT/Networth)		0.06	0.09	0.10
Debt Equity Ratio (Total Liability/Networth)		0.70	0.87	0.77
Current Ratio (Current Asset/Current Liability)		9.43	9.06	12.35

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

During the year the company registered a turnover of Rs.272.400 Millions and a net profit of Rs.9.940 Millions after proving for interest, depreciation, tax and also other provisions.

CONTINGENT LIABILITIES:

Rs. in Millions

Particulars	31.03.2010	31.03.2009
On Counter guarantees given to banks	2.554	8.750
Disputed Excise Duty	0.053	0.053

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U14102TZ1991PLC007127
Name of the company	ASHOK GRANITES LIMITED
Address of the registered office or of the principal place of business in India of the company	4/35, Bharathi Street, Swarnapuri, Salem – 636004, Tamil Nadu, India ashokho@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10244865
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	The Karnataka Bank Limited, Divya Towers, For Main Road, Salem – 636001, Tamilnadu, India salem@ktkbank.com
Nature of instrument creating charge	Hypothecation Agreement dated 20.12.2011 Letter of Authority dated 20.12.2011
Date of instrument Creating the charge	20.12.2011
Amount secured by the charge	Rs.75.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 11.25 % Terms of repayment Repayable on demand Margin 25% Extent and operation of the charge Financial Accomodation upto maximum limit of Rs.75.000 Millions for the purpose of Pre Shipment Credit.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of Plant and Machineries Hypothecation of Granites Extension of Equitable mortgage by deposit of title deeds of the immovable properties of company created on 05.09.2003 shall cover this facility also.
Particulars of the present modification	Preshipment Credit has been increased from Rs. 20.000,Millions - to Rs. 75.000 Millions.

Fixed Assets

• Land
• Building
• Plant and Machinery
• Electrical Installations
• Furniture and Fixture
• Fittings
• Vehicles
• Office Equipment
• Computer
• Wind Electric Generator

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.50.12
UK Pound	1	Rs.79.37
Euro	1	Rs.66.00

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.