MIRA INFORM REPORT

Report Date :

01.10.2012

IDENTIFICATION DETAILS

Name :	MICHIGAN STONES PRIVATE LIMITED

Registered Office :	No.301, 2^nd Floor, Kembathahalli Road, Gottigere, Bannerghatta Main Road, Bangalore – 560 083, Karnataka

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	05.09.2007

Com. Reg. No.:	08-043792

Capital Investment / Paid-up Capital :	Rs.4.244 millions

CIN No.: [Company Identification No.]	U14100KA2007PTC043792

TAN No.: [Tax Deduction & Collection Account No.]	BLRM12106D

Legal Form :	Private Limited Liability Company

Line of Business :	Trading and Exporting in Granite Stones and Marbles.

No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

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. There appears some dip in the total income earned and profits during 2011. However, 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 – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

Management non-cooperative

LOCATIONS

Registered Office :	No.301, 2^nd Floor, Kembathahalli Road, Gottigere, Bannerghatta Main Road, Bangalore – 560 083, Karnataka, India
Tel. No.:	91-80-39350709
Mobile No.:	91-9341168123 (Mr. Amit Khabya) 91-9341940046 (Chandrakanta)
Fax No.:	91-80-39350709
E-Mail :	michiganstones@vsnl.net michiganstones@yahoo.com ckadhikari@gmail.com suranamukesh73@gmail.com accounts@michigastones.com
Website :	http://www.michiganstones.com

DIRECTORS

As on 30.09.2011

Name :	Mr. Amit Khabya
Designation :	Director
Address :	No.4204, Nandi Park Apartment, Block Kusuma IV, Gottigere, Banergatta Main Road, Bangalore - 560 083, Karnataka, India
Date of Birth/Age :	30.03.1975
Date of Appointment :	05.09.2007
DIN No.:	01742574

Name :	Chandrakanta Adhikari
Designation :	Director
Address :	No.5307, Nandi Park Apartment, Gottigere, Banergatta Main Road, Bangalore – 560 083, Karnataka, India
Date of Birth/Age :	01.01.1974
Date of Appointment :	05.09.2007
DIN No.:	01742634

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders		No. of Shares
Amit Khabya		145000
Chandrakanta Adhikari		5000
Vijay Rana		5800
Ranjan Bhera		4000
Padma Kumari		2000
Latha Chander		2000
Munmun Surana		2910
Anuradha		2200
Ameer Abdula		1600
Kavita		1000
N.R. Singhvi		1600
Mahaveer Kothari		3780
Anil Jain		5000
Badrinath Vanijya Private Limited		20000
Chitranjan Patra		6880
Debi Prasad Prasana		3660
Dhanlaxmi Vanijya Private Limited		20000
Dhanlaxmi Kuber Vyapar Private Limited		20000
Giri Financial Services Private Limited		20000
JDL Investment Consultant Private Limited		10000
Kanta Surana		5740
Manju Nath		2682
Narendra Khabya		5390
Navnidhi Financial Private Limited		10000
Nikhil Singhvi		1880
Nirnidhi Commodities Private Limited		20000
Prabhu Kumar		5800
Pradeep Kumar		4200
Pradeep Shau		4000
Prbhudhan Finance Private Limited		20000
Sandeep Kumar		2680
Savita J.		3980
Shanta Khabya		2780
SJR Auto Financiers Private Limited		40000
Sudha Gupta		800
Viyarekha M.V.		2000
Zenith Investment Private Limited		10000
Total		424362

As on 30.09.2011

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		44.00
Directors or relatives of directors		56.00
Total		100.00

BUSINESS DETAILS

Line of Business :

Trading and Exporting in Granite Stones and Marbles.

Products :

v Slabs

v Tiles

v Kitchen Tops

v Work Tops

v Pavers

v Monuments

v Cobblestones

GENERAL INFORMATION

No. of Employees :

25 (Approximately)

Bankers :

State Bank of India, # 22, J.C. Road, Bangalore City Branch, Bangalore – 560 002, Karnataka, India

Facilities :

Unsecured Loans

31.03.2011

(Rs. In Millions)

31.03.2010

(Rs. In Millions)

Unsecured Loans

0.857

7.118

Total

0.857

7.118


Banking Relations :	--

Auditors :
Name :	Bhandari Pincha and Surana Chartered Accountants
Address :	# 324, 1^st Floor, Prabhat Complex, # 8, K.G. Road, Bangalore – 560 009, Karnataka, India
Income-tax PAN of auditor or auditor's firm :	AAGFB7968L

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
424362	Equity Shares	Rs.10/- each	Rs.4.244 millions

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		4.244	2.844	0.292
2] Share Application Money		1.598	0.000	0.000
3] Reserves & Surplus		24.286	16.161	2.766
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		30.128	19.005	3.058
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.857	7.118	5.796
TOTAL BORROWING		0.857	7.118	5.796
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		30.985	26.123	8.854

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		6.371	0.979	0.300
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.002	0.002	0.002

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	33.509	32.885	12.855
	Cash & Bank Balances	2.426	3.982	3.789
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.071	5.754	8.081
Total Current Assets		44.006	42.621	24.725
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.096	15.763	15.167
	Other Current Liabilities	1.168	1.532	0.926
	Provisions	0.138	0.199	0.102
Total Current Liabilities		19.402	17.494	16.195
Net Current Assets		24.604	25.127	8.530

MISCELLANEOUS EXPENSES		0.008	0.015	0.022

TOTAL		30.985	26.123	8.854

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	142.618	210.040	170.554
		Other Income	7.398	2.315	0.706
		TOTAL	150.016	212.355	171.260

Less	EXPENSES
		Cost of Sales	122.079	174.526	140.943
		Operative Expenses	17.296	16.170	16.378
		Administrative Expenses	6.729	16.692	11.322
		Preliminary Expenses written off	0.007	0.007	0.007
		TOTAL	146.111	207.395	168.650

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		3.905	4.960	2.610

Less/ Add	DEPRECIATION/ AMORTISATION		0.280	0.272	0.101

	PROFIT BEFORE TAX		3.625	4.688	2.509

Less	TAX		1.100	1.500	0.892

	PROFIT AFTER TAX		2.525	3.188	1.617

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		5.186	1.998	0.381

	BALANCE CARRIED TO THE B/S		7.711	5.186	1.998

	EARNINGS IN FOREIGN CURRENCY		142.618	210.040	170.743

	Earnings Per Share (Rs.)		5.95	11.21	55.40

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.68	1.50	0.94

Net Profit Margin (PBT/Sales)	(%)	2.54	2.23	1.47

Return on Total Assets (PBT/Total Assets}	(%)	7.20	10.75	10.03

Return on Investment (ROI) (PBT/Networth)		0.12	0.25	0.82

Debt Equity Ratio (Total Liability/Networth)		0.67	1.30	7.19

Current Ratio (Current Asset/Current Liability)		2.27	2.44	1.53

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	Yes
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes
31) Date of Birth of Proprietor/Partner/Director, if available	Yes
32) PAN of Proprietor/Partner/Director, if available	No
33) Voter ID No of Proprietor/Partner/Director, if available	No
34) External Agency Rating, if available	No

Note:

The registered office of the company has been shifted from No.146, 1^st Main, 4^th Cross, Nisarga Layout, Koppa Gate, Harapanahalli Village, Jignai, Anekal Taluk, Bangalore – 562 105, Karnataka to the present address w.e.f. 16.01.2012.

FINANCIAL RESULTS:

During the year company has performed excellent for the whole year achieving turnover of Rs.150.016 millions and Earned net profit (After Tax) for the year of Rs.2.525 millions.

FUTURE OUTLOOK:

The company is expected to achieve substantial turnover and profits are expected to be reasonably well during the coming financial year.

Bankers Charges Report as per Registry

Corporate identity number of the company	U14100KA2007PTC043792
Name of the company	MICHIGAN STONES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.301, 2^nd Floor, Kembathahalli Road, Gottigere, Bannerghatta Main Road, Bangalore – 560 083, Karnataka, India E-Mail: suranamukesh73@gmail.com
This form is for	Creation of charge
Type of charge	Immovable Property Book Debts
Particular of charge holder	State Bank of India, # 22, J.C. Road, Bangalore City Branch, Bangalore – 560 002, Karnataka, India E-Mail: ThomasMathew_1@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Composite Hypothecation Agreement dated 23.01.2012.
Date of instrument Creating the charge	23.01.2012
Amount secured by the charge	Rs.28.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest @ 11.75% per annum Terms of Repayment: as per hypothecation agreement Margin: NIL Extent and Operation of the charge: as per bank proposal
Short particulars of the property charged	All that piece and parcel of immovable industrial converted land situated in Cennapalli Village of Hosur Taluk and attached to sub registration district Krishnagiri a. Sy No.15/8 acre 1.22 b. Sy No.15/9 acre 0.64 c. Sy No.15/10 acre 0.68 d Sy No.15/11 acre 0.80 e. Sy No.14/1 acre 1.25 and Sy No.14/2

FIXED ASSETS:

v Furniture and Fixtures

v Car

v Bike- Splendor

v TVS Champ

v Car- Swift

v Laptop

v Computer

v UPS

v Land

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 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.52.70
UK Pound	1	Rs.85.71
Euro	1	Rs.68.15

INFORMATION DETAILS

Information Gathered by :	SBA

Report Prepared by :	SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
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	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.

MIRA INFORM REPORT

44.006

19.402

17.494

24.604

25.127

1.50

2.23

10.75

0.25

1.30

2.44

Unit