MIRA INFORM REPORT

Report Date :

13.02.2012

IDENTIFICATION DETAILS

Name :	KAILASH MARBLE INDUSTRIES PRIVATE LIMITED
Registered Office :	Mour Estate, Ashok Van, Shiv Vallabh Link Road, Borivali (East), Mumbai – 400066, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.03.1988
Com. Reg. No.:	11-046840
Capital Investment / Paid-up Capital :	Rs.1.900 Millions
CIN No.: [Company Identification No.]	U26960MH1988PTC046840
TAN No.: [Tax Deduction & Collection Account No.]	MUMK04119D
PAN No.: [Permanent Account No.]	AABCK5771G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Marble, Granite, Stone, Ceramic, Tile.
No. of Employees :	35 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 97000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears some huge external borrowing recorded by the company. However trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

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 PARTED BY

Name :	Ms. Priya
Designation :	Account Department
Contact No.:	91-22-28974600
Date :	12.02.2013

LOCATIONS

Registered Office :	Mour Estate, Ashok Van, Shiv Vallabh Link Road, Borivali (East), Mumbai – 400066, Maharashtra, India
Tel. No.:	91-22-28974600/ 28284474
Mobile No.:	91-9920784814 (Mr. Pramod Mour)
Fax No.:	91-22-28284622/ 28974600
E-Mail :	marmoworld@gmail.com marmoworld.acs@gmail.com vinod@ladhasinghal.com ajay@ladhasinghal.com marmworld_kmipl@yahoo.co.in
Location :	Owned
Factory :	Survey No.15/3, Near Savita Chemicals, Village – Kharadpada, Naroli, Union Territory of Dadra and Nagar Haveli, Silvassa – 396 235, India
Tel. No.:	91-260-2650024
Fax No.:	91-260-2650024

DIRECTORS

(AS ON 29.09.2012)

Name :	Mr. Kailashnarayan Madanalal Mour
Designation :	Managing Director
Address :	B-802, Saraswati Tower, Parsi Panchayat Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Date of Birth/Age :	15.07.1945
Date of Appointment :	30.03.1988
DIN No.:	00478363
Name :	Mr. Kamal Kailashnarayan Mour
Designation :	Director
Address :	B-802, Saraswati Tower, Parsi Panchayat Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Date of Birth/Age :	21.06.1974
Date of Appointment :	01.12.1995
DIN No.:	00478516
Name :	Mr. Pramod Kailashnarayan Mour
Designation :	Director
Address :	B-802, Saraswati Tower, Parsi Panchayat Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Date of Birth/Age :	16.06.1978
Date of Appointment :	31.05.2002
DIN No.:	00478660

KEY EXECUTIVES

Name :	Ms. Priya
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2012)

Names of Shareholders	No. of Shares
Kailash N. Mour	30000
Kamal Mour	40000
Pramod Mour	30000
Kailash N. Mour HUF	15000
Kamal K. Mour HUF	15000
Pramod K. Mour HUF	15000
Chandrakala Mour	15000
Komal Mour	15000
Meghna Mour	15000
Total	190000

(AS ON 29.09.2012)

Equity Shares Break – up

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Supplier of Marble, Granite, Stone, Ceramic, Tile.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	2010-2011
A. Licensed Capacity	N.A.
B. Installed Capacity (As certified by the Director on which Auditors have relied being of technical nature)	250000 Sq. Mt. (Marble Slabs)
C. Actual Production (Including 111444 Sq. Mt. on Job Work Basis)	132663 Sq. Mt. (Marble Slabs)

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

35 (Approximately)

Bankers :

· Oriental Bank of Commerce

Andheri Overseas Branch, Leela Galleria, 1^st Floor, Andheri Kurla Road, Sahar, Andheri (East), Mumbai – 400059, Maharashtra, India

Facilities :

Secured Loans

31.03.2012

31.03.2011

(Rs. In Millions)

Term Loan

From Oriental Bank of commerce – terms Loan I

0.000

1.952

From Oriental Bank of commerce – terms Loan II

0.000

0.000

Total

0.000

1.952

NOTE:

The Term Loan is secured by way of equitable mortgage of building located Village Kharapad, Silvassa Hypothecation of movable machineries and personal guarantee by the directors.

Term Loan II is secured by way of hypothecation of Plant and Machinery and its accessories including foundation brought under this loan.

Repayable profile of Term Loans is set out as below:

Bank/ Loan	Rate of Interests	Nature of Loan	Balance No. of Installments w.e.f. 01.04.2012	Installments eduing on
Oriental Bank of Commerce - Terms Loan I	13.50%	Term Loan	2	May 2012
Oriental Bank of Commerce - Terms Loan II	13.50%	Term Loan	24	May 2014

Banking Relations :	--
Auditors :
Name :	Ladha Singhal and Associates Chartered Accountants
Address :	209, Apollo Complex, R.K. Singh Marg, Off. Parsi Panchayat Road, Near Sona Udyog, Andheri (East), Mumbai – 400069, Maharashtra, India
Tel. No.:	91-22-28367200/ 28389989
PAN No.:	AABFL6978P
E-Mail :	info@ladhasinghal.com

CAPITAL STRUCTURE

(AS ON 29.09.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs.6.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
190000	Equity Shares	Rs.10/- each	Rs.1.900 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.900	1.900	1.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		22.351	19.023	15.898
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		24.251	20.923	17.798
LOAN FUNDS
1] Secured Loans		0.000	1.952	69.587
2] Unsecured Loans		94.239	88.067	55.514
TOTAL BORROWING		94.239	90.019	125.101
DEFERRED TAX LIABILITIES		1.488	1.647	1.920
TOTAL		119.978	112.589	144.819
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		42.661	44.130	49.719
Capital work-in-progress		0.011	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	71.317	72.454	62.819
	Sundry Debtors	37.154	49.728	64.435
	Cash & Bank Balances	6.349	0.853	2.015
	Other Current Assets	0.000	0.020	0.000
	Loans & Advances	21.985	17.347	12.086
Total Current Assets		136.805	140.402	141.355
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	29.659	50.205	39.724
	Other Current Liabilities	28.152	20.075	5.823
	Provisions	1.688	1.663	0.748
Total Current Liabilities		59.499	71.943	46.295
Net Current Assets		77.306	68.459	95.060
MISCELLANEOUS EXPENSES		0.000	0.000	0.040
TOTAL		119.978	112.589	144.819

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Net Revenue from Operations	314.799	306.752	256.001
		Other Income	0.277	0.143	1.210
		TOTAL (A)	315.076	306.895	257.211
Less	EXPENSES
		Purchases of Stock in Trade	117.423	99.957
		Cost of Materials Consumed	137.769	139.149
		Change in Inventories of stock in Trade	(15.526)	2.348	233.401
		Employee Benefits Expenses	5.964	6.010
		Other Expenses	45.663	35.011
		TOTAL (B)	291.294	282.475	233.401
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		23.782	24.420	23.810
Less	FINANCIAL EXPENSES (D)		13.179	13.586	12.115
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.603	10.834	11.695
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.741	6.309	6.990
	PROFIT BEFORE TAX (E-F) (G)		4.862	4.525	4.705
Less	TAX (H)		1.534	1.400	1.425
	PROFIT AFTER TAX (G-H) (I)		3.328	3.125	3.280
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		10.023	6.898	3.618
	BALANCE CARRIED TO THE B/S		13.351	10.023	6.898
	IMPORTS
		Purchase of Blocks	114.211	114.735	NA
	TOTAL IMPORTS		114.211	114.735	NA
	Earnings Per Share (Rs.)		17.52	16.45	17.27

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.06	1.02	1.28
Net Profit Margin (PBT/Sales)	(%)	1.54	1.48	1.84
Return on Total Assets (PBT/Total Assets}	(%)	2.71	2.45	2.46
Return on Investment (ROI) (PBT/Networth)		0.20	0.22	0.26
Debt Equity Ratio (Total Debt/Networth)		3.89	4.30	7.03
Current Ratio (Current Asset/Current Liability)		2.30	1.95	3.05

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Sundry Creditors
Due to other than Micro, Small and Medium Enterprises	29.659	50.205	39.724
Total	29.659	50.205	39.724

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
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	Yes
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

UNSECURED LOANS

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
From Body Corporate	8.461	9.826
From Related Parties (Directors and Shareholders)	37.858	32.433
Working Capital Loan
From Oriental Bank of Commerce	6.678	45.808
Bank Credit and L/C
From Oriental Bank of Commerce (Secured against hypothecation of stock of Raw Materials, SIP, Finished Goods Stores and Spares, Receivable and Other Chargeable Current Assets)	41.242	0.000
Total	94.239	88.067

NOTE:

The registered office of the company has been shifted from 206, Apollo Complex, R.K. Singh Marg, Andheri (East), Mumbai – 400 069, Maharashtra to the present address w.e.f. 16.04.2007.

CONTINGENT LIABILITIES: (AS ON 31.03.2012)

· Guarantee issued by the bankers in favour of various authorities, which have been counter Guarantee by the company Rs.0.750 Million (Rs. 0.750 Million)

· Letter of Credit issued by Bank Rs.13.246 Millions (Rs. Nil)

Bankers Charges Report as per Registry

Corporate identity number of the company	U26960MH1988PTC046840
Name of the company	KAILASH MARBLE INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Mour Estate, Ashok Van, Shiv Vallabh Link Road, Borivali (East), Mumbai – 400 066, Maharashtra, India E-Mail: ajay@ladhasinghal.com
This form is for	Modification of charge
Charge identification number of the modified	10059480
Type of charge	Book Debts Movable Property (not being pledge) Others (Stock and Plant and Machinery)
Particular of charge holder	Oriental Bank of Commerce, Andheri Overseas Branch, Leela Galleria, 1^st Floor, Andheri Kurla Road, Sahar, Andheri (East), Mumbai – 400059, Maharashtra, India E-Mail: emailroc@rediffmail.com
Nature of description of the instrument creating or modifying the charge	Supplemental Agreement to secure credit / loan facilities
Date of instrument Creating the charge	31.01.2012
Amount secured by the charge	Rs.109.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest: Interest @ Base Rate + 3.50 i.e.14.25% p.a. with monthly rests or such other rate as agreed between the borrower company and the Bank from time to time. Penal Interest in addition to agreed rate in case of default Terms of Repayment: Repayment, as agreed between the Borrower Company and the Bank from time to time. Margin: Margin rate, as agreed between the Borrower Company and the Bank from time to time. Extent and Operation of the charge: At the request of the Borrower Company the Bank has enhanced Overall Banking Limit upto Rs.109.000 millions against Hypothecation of Stocks of Raw Material, Stock in process, Finished Goods, Stores, Spares, Receivable and other chargeable Current Assets and Hypothecation of entire Plant and Machinery of the Company, present and future. Total Charge Stands Modified upto Rs.109.000 millions
Short particulars of the property charged	Hypothecation of Documents of Title to goods in case of L/C on DP basis Hypothecation Charge over the goods in case of L/C on DA basis and documents shall be delivered against Trust Receipt Hypothecation of stocks of Raw materials, stock-in-process, finished goods, stocks, spares, receivables, and other chargeable current assets. Hypothecation of entire Plant and machinery of the company Present and Future
Particulars of the present modification	At the request of the Borrower Company the Bank has enhanced Overall Banking Limit upto Rs.109.000 millions against Hypothecation of Stocks of Raw Material, Stock in process, Finished Goods, Stores, Spares, Receivable and other chargeable Current Assets and Hypothecation of entire Plant and Machinery of the Company, present and future. Total Charge Stands Modified upto Rs.109.000 millions

FIXED ASSETS:

v Computer

v Cabin

v Furniture

v Office Equipments

v Air Conditioner

v Fax Machine

v Machinery

v Water Pump

v Mobile Phone

v Electrical Installations

v Factory Building

v Flat

v Vehicles

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.53.96
UK Pound	1	Rs.84.49
Euro	1	Rs.72.23

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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		28

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.