MIRA INFORM REPORT

Report Date :

09.10.2012

IDENTIFICATION DETAILS

Name :	KARNAWAT INTERNATIONAL PRIVATE LIMITED
Registered Office :	Kalpana Kunj, Rajsamand- 313326, Rajasthan
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.01.1996
Com. Reg. No.:	17-011461
Capital Investment / Paid-up Capital :	Rs.9.000 millions
CIN No.: [Company Identification No.]	U14102RJ1996PTC011461
TAN No.: [Tax Deduction & Collection Account No.]	JDHK01239A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Promoter and Marketer of Indian Natural Stones.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 211000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for business dealing at usual trade terms and condition.

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	A1	A1

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.

LOCATIONS

Registered Office/ Factory :	Kalpana Kunj, Rajsamand- 313326, Rajasthan, India
Tel. No.:	91-2952-221750
Fax No.:	91-2952-222475
E-Mail :	lkbadola@gmail.com info@karnawatindia.com
Overseas Offices:	Marble House L.L.C Muscut, Sultanate of Oman Trust Mar Cairo, Egypt

DIRECTORS

As on 30.09.2011

Name :

Mr. Gun Sagar Karnawat

Designation :

Director

Address :

Kalpana Kunj, Rajsamand- 313326, Rajasthan, India

Date of Birth/Age :

07.08.1943

Date of Appointment :

22.01.1996

DIN No.:

00994148

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U14101RJ1990PTC005277	KARNAWAT MARBLES AND GRANITES PRIVATE LIMITED	Director	23/01/1990	23/01/1990	-	Active	NO
2	U14102RJ1996PTC011461	KARNAWAT INTERNATIONAL PVT LTD	Director	22/01/1996	22/01/1996	-	Active	NO
3	U51109WB1984PLC037068	VINEET UDYOG LTD	Managing director	27/11/2006	27/11/1996	-	Active	NO

Name :

Mr. Prabuddha Karnawat

Designation :

Director

Address :

Kalpana Kunj, Rajsamand- 313326, Rajasthan, India

Date of Birth/Age :

14.12.1968

Date of Appointment :

22.01.1996

DIN No.:

02509340

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U14102RJ1996PTC011461	KARNAWAT INTERNATIONAL PVT LTD	Director	22/01/1996	22/01/1996	-	Active	NO
2	U51109WB1984PLC037068	VINEET UDYOG LTD	Director	17/08/1996	17/08/1996	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Shri Gunsagar Karnawat	135800
Shri Prabuddha Karnawat	247310
Shri Chetanya Karnawat	252130
Smt. Pratibha Karnawat	64200
Smt. Priti Karnawat	190000
Vineet Udyog Limited, India	10550
Chatar Surya	5
Smt. Pramila Surya	5
Total	900000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Promoter and Marketer of Indian Natural Stones.
Products :	Marbles (Blocks, Slabs and Tiles) Granites (Blocks, Slabs nd Tiles) Stone Artifacts / Handicrafts Inlay Work Marble Inlay Tabletops Marble Inlay Floors Marble Inlay Tiles etc.

PRODUCTION STATUS AS ON 31.03.2011

Installed Capacity

1.20 Lacs p.a. (As certified by Management)

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Punjab National Bank, Main Branch, Twon Hall Road, Udaipur - 313001, Rajasthan, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
PNB FOUBP 59	0.000	0.000
PNB Packing Credit	17.000	12.359
PNB Udaipur 6031	0.141	0.153
H.D.F.C. Bank Limited	0.400	0.000
Total	17.541	12.512

(Hypothecation of all stock of Raw material store and spares, stock in process, finished goods for exports and receivables, all foreign documentary demand /usance bills accompained by shipping documents drawn on Ist class foreign buyers foreign documentary bills with without usance, shipping documents (DA/DP) including bills of landing covering import of raw materials counter indemnity from the party plant and machinery, other fixed assets ,and other items acceptable to bank).

Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
From Directors and Share Holders	4.421	4.440
Total	4.421	4.440

Banking Relations :	--
Auditors :
Name :	Lalit Kumar Badola Chartered Accountant
Address :	Opposite Old Collectorate, Rajsamand- 313324, Rajasthan, INDIA
Tel. No.:	91-2952-221238/ 230546
Mobile No.:	91-9414356906
PAN No.:	ABJPB9698M
Group Companies:	· Karnawat Marbles and Granite Private Limited · Vineet Udyog Limited · Guru Kripa Marmostone Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
900000	Equity Shares	Rs.10/- each	Rs.9.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
900000	Equity Shares	Rs.10/- each	Rs.9.000 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		9.000	9.000	9.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		43.965	42.310	41.629
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		52.965	51.310	50.629
LOAN FUNDS
1] Secured Loans		17.541	12.511	14.618
2] Unsecured Loans		4.421	4.440	4.221
TOTAL BORROWING		21.962	16.951	18.839
DEFERRED TAX LIABILITIES		0.254	0.303	0.349
TOTAL		75.181	68.564	69.817
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7.609	4.863	5.602
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.155	2.041	0.998
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	191.290	126.469	111.200
	Sundry Debtors	9.039	23.573	44.553
	Cash & Bank Balances	1.193	11.658	1.802
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.153	4.057	4.634
Total Current Assets		209.675	165.757	162.189
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	132.132	99.080	98.727
	Other Current Liabilities	11.761	4.904
	Provisions	0.365	0.117	0.254
Total Current Liabilities		144.258	104.101	98.981
Net Current Assets		65.417	61.656	63.208
MISCELLANEOUS EXPENSES		0.000	0.004	0.009
TOTAL		75.181	68.564	69.817

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	71.590	47.400	72.643
		Other Income	1.656	0.287	0.268
		TOTAL (A)	73.246	47.687	72.911
Less	EXPENSES
		Cost of Production	80.724	61.704	625.534 (Finance and Other Expenses)
		Office and Administrative Expenses	2.028	1.594
		Selling Expenses	5.766	6.232
		Increase/Decrease in Closing Stock	(20.322)	(24.669)
		TOTAL (B)	68.196	44.861
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.050	2.826
Less	FINANCIAL EXPENSES (D)		2.319	1.329
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.731	1.497	3.067
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.759	0.739	0.868
	PROFIT BEFORE TAX (E-F) (G)		1.972	0.758	2.199
Less	TAX (I)		0.316	0.078	0.661
	PROFIT AFTER TAX (G-I) (J)		1.656	0.680	1.538
	EARNINGS IN FOREIGN CURRENCY		85.551	NA	NA
	Earnings Per Share (Rs.)		0.185	0.756	0.00

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.26	1.43	2.11
Net Profit Margin (PBT/Sales)	(%)	2.75	1.60	3.03
Return on Total Assets (PBT/Total Assets}	(%)	0.91	0.44	1.31
Return on Investment (ROI) (PBT/Networth)		0.04	0.01	0.01
Debt Equity Ratio (Total Liability/Networth)		3.14	2.36	2.33
Current Ratio (Current Asset/Current Liability)		1.45	1.59	1.64

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
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	Yes
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

OPERATION REVIEW

The Company could not able to cross the turnover comparison to last year because of financial crises in the international market, The product of the company enjoys good confidence of the customers and good reputation in the market. The company expects more business in the coming year by continuous efforts.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U14102RJ1996PTC011461
Name of the company	KARNAWAT INTERNATIONAL PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Kalpana Kunj, Rajsamand- 313326, Rajasthan, India Email: lkbadola@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90070806
Type of charge	Immovable property Movable property (not being pledge)
Particular of charge holder	Punjab National Bank, Main Branch, Twon Hall Road, Udaipur - 313001, Rajasthan, India Email: mnparmar@pnb.co.in
Nature of instrument creating charge	1. Term Loan Agreement 2. Hypothecation Of Assets to Secure Term Loan. 3. Hypothecation of movable assets forming part of fixed/block assets.
Date of instrument Creating the charge	25.06.2011
Amount secured by the charge	Rs.39.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Term Loan : Base Rate + 2.00% + 0.50%TP (under marble cluster for one year subject to change) Terms of Repayment Term Loan: 20 quarterly installment starting from 01.04.2012 and interest is to be paid as and when debited. Margin Term Loan: minimum 25.00% of the project cost or difference b/w cost of project and term loan whichever is higher. Extent and Operation of the charge T/L secured by way of 1st charge on entire block assets, present and future and collaterally secured by personal guarantee of directors Others Various fund and non fund based credit facility as provided earlier kept same such as:- a. Packing Credit : Rs.15.000 Millions b.Post shipment credit : Rs.17.000 Millions c. LOC : Rs.5.000 Millions d. Letter of Guarantee : Rs.3.000 Millions But overall credit limit enhance to Rs. 39.000 Millions by introducing fresh Term loan of Rs. 14.000 Millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Extension of Factory Land and building of the company situated at Araji, No. 3841, Piparda, Rajsamand. 1st charge on all movable fixed assets, present and future, including entire plant and machinery, MFA, furniture, fixtures etc.
Particulars of the present modification	Overall Credit limit enhanced to Rs. 39.000 Millions

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixture

· Misc. Fixed Assets

· Vehicle

· Computer

· Tube Well

· Diesel Generator

· Fax Machine

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 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.52.21
UK Pound	1	Rs.84.00
Euro	1	Rs.67.75

INFORMATION DETAILS

Report Prepared by :

MRI

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	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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.