MIRA INFORM REPORT

Report Date :

19.02.2013

IDENTIFICATION DETAILS

Name :	CHANDRESH MARKETING PRIVATE LIMITED CHANDRESH TECH (A DIVISION OF CHANDRESH MARKETING PRIVATE LIMITED)
Registered Office :	D / 9, New Madhavpura Market, Near Police Commissioner Office, Shahibaug, Ahmedabad – 380 004, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	19.04.1995
Com. Reg. No.:	04-025523
Capital Investment / Paid-up Capital :	Rs. 7.500 millions
CIN No.: [Company Identification No.]	U51909GJ1995TC025523
TAN No.: [Tax Deduction & Collection Account No.]	AHMC02882F
PAN No.: [Permanent Account No.]	AAACC7727P
Legal Form :	Private Limited Liability Company
Line of Business :	Dealer in Mobile Phone and Mobile Phone Accessories.
No. of Employees :	10 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 42000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appear huge external borrowings recorded by the company. The profitability of the company also appears to be low. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some caution.

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 [General Details]

Name :	Mr. Qurban Husain
Designation :	Director
Contact No.:	91-9879505949
Date :	14.02.2013

LOCATIONS

Registered Office :	D / 9, New Madhavpura Market, Near Police Commissioner Office, Shahibaug, Ahmedabad – 380 004, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-9879505949 (Mr. Qurban Husain)
Fax No.:	Not Available
E-Mail :	knkuttynair@gmail.com
Location :	Owned

DIRECTORS

As on 30.09.2012

Name :	Mr. Rajendra Khimraj Jain
Designation :	Director
Address :	2, Rita Park Society, Shahibaug, Ahmedabad – 380 004, Gujarat, India
Date of Birth/Age :	05.08.1965
Date of Appointment :	25.06.2006
DIN No.:	00243834
Name :	Mr. Anil Khimraj Jain
Designation :	Director
Address :	2, Rita Park Society, Shahibaug, Ahmedabad – 380 004, Gujarat, India
Date of Birth/Age :	22.11.1969
Date of Appointment :	01.03.1996
DIN No.:	00243912
Name :	Mr. Abhivardhan Chandresh Lodha
Designation :	Director
Address :	15 Subhas nagar Society, Shahibaug, Ahmedabad – 380 004, Gujarat, India
Date of Birth/Age :	10.07.1983
Date of Appointment :	18.03.2011
DIN No.:	01820667
Name :	Mr. Qurban Husain
Designation :	Director
Date of Appointment :	01.12.2011
DIN No.:	05111171

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2012

Names of Shareholders	No. of Shares
Rajendra Kumar Jain	112573
Anilkumar Jain	121945
Bharti Jain	112563
Bhagyavanti Balar	5000
Chandresh Lodha	56110
Abhivandan Lodha	56110
Ankit Lodha	95260
Neha Jain	124675
Abhishek Jain	124675

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Dealer in Mobile Phone and Mobile Phone Accessories.
Terms :
Selling :	L / C / Cash / Credit
Purchasing :	L / C / Cash / Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

10 (Approximately)

Bankers :

Dena Bank, Shahibaug Branch, Sanjay Society, Opposite Police Commissioner Office, Ahmedabad – 380 004, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Term Loans From Banks Kotak Mahindra prime Limited (Car Loan)	0.013	0.349
Loans payable on demand From Banks Cash Credit from Dena Bank	35.307	5.621
Total	35.320	5.970

Banking Relations :	--
Auditors :
Name :	S K Chechani and Associates Chartered Accountants
Address :	305, Abhishk Plaza, Behind Nav Gujarat College, RBI Lane, Ashram Road, Ahmedabad – 380 014, Gujarat, India
Mobile No.:	91-9429439072/9909917160
E-Mail :	shiv@skchechani.com
PAN No.:	ACEFS8828C
Associates/Subsidiaries :	· Chandresh Finance Limited · Chandresh Cables Limited

CAPITAL STRUCTURE

As on 30.09.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs. 10/- each	Rs. 7.500 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs. 10/- each	Rs. 7.500 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		7.500	2.400	0.250
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3.182	2.049	1.165
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		10.682	4.449	1.415
LOAN FUNDS
1] Secured Loans		35.320	5.970	0.723
2] Unsecured Loans		29.008	20.580	0.967
TOTAL BORROWING		64.328	26.550	1.690
DEFERRED TAX LIABILITIES		0.089	0.115	0.000
TOTAL		75.099	31.114	3.105
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.163	2.247	2.525
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.755	13.058	1.898
	Sundry Debtors	35.851	17.852	0.501
	Cash & Bank Balances	22.422	3.990	0.199
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	7.923	2.312	0.248
Total Current Assets		80.951	37.212	2.846
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.428	7.347	1.865
	Other Current Liabilities	0.925	0.339	0.000
	Provisions	0.662	0.659	0.401
Total Current Liabilities		10.015	8.345	2.266
Net Current Assets		70.936	28.867	0.580
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		75.099	31.114	3.105

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	416.922	217.926	42.815
		Closing Stock	0.000	0.000	1.899
		Other Income	1.716	0.044	0.000
		TOTAL (A)	418.638	217.970	44.714
Less	EXPENSES
		Cost of Materials Consumed	0.000	33.643
		Purchase of Stock-in-trade	379.463	173.006
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(1.697)	(12.551)
		Employee benefits expenses	5.447	3.895
		Other expenses	25.088	15.357
		TOTAL (B)	408.301	213.350	43.049
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		10.337	4.620	1.665
Less	FINANCIAL EXPENSES (D)		8.270	2.500	0.112
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.067	2.120	1.553
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.453	0.501	0.567
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		1.614	1.619	0.986
Less	TAX (H)		0.481	0.755	0.253
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		1.133	0.864	0.733
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.029	1.165	0.432
	BALANCE CARRIED TO THE B/S		3.162	2.029	1.165
	Earnings/(Loss) Per Share (Rs.)		1.51	3.88

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.27	0.39	1.64
Net Profit Margin (PBT/Sales)	(%)	0.39	0.74	2.30
Return on Total Assets (PBT/Total Assets}	(%)	1.94	4.10	18.36
Return on Investment (ROI) (PBT/Networth)		0.15	0.36	0.69
Debt Equity Ratio (Total Debt/Networth)		6.02	5.96	1.19
Current Ratio (Current Asset/Current Liability)		8.08	4.45	1.25

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Other than Acceptances	8.428	7.347	1.865
TOTAL	8.428	7.347	1.865

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	Yes
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

Note:

The registered office of the company has been shifted from G – 6, Madhavpura Market, Shahibaug, Ahmedabad – 380 004, Gujarat, India to the present address w.e.f. 07.02.2012

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
Loans and Advances from related parties	29.008	20.580
Total	29.008	20.580

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U51909GJ1995PTC025523
Name of the company	CHANDRESH MARKETING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D / 9 New Madhavpura Market, Near Police Commissioner's Office, Shahibaug, Ahmedabad – 380 004, Gujarat, India E-mail: knkuttynair@gmail.com
This form is for	Creation of charge
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	ING Vysya Bank Limited, P. B. No. 4038, Chanakya Building, Near Dinesh Hall, Off Ashram Road, Ahmedabad – 380009, Gujarat, India e-mail: vlaxman@vsnl.com
Nature of description of the instrument creating or modifying the charge	A] Facility Agreement. B] Deed of General Hypothecation [No - 1]. (Collectively constitute a single charge).
Date of instrument Creating the charge	16.08.2012
Amount secured by the charge	Rs. 60.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC: IVBR + 2.05% (present IVBR being 10.45% pa). Bank Guarantee: Commission 1.00% p.a. Terms of Repayment CC: Repayable on Demand in Lumpsum BG : Repayable on Demand in Lumpsum Margin CC: 25% against stocks, 30% against Book Debts up to 45 days and 50% from 46 days upto to 90 days. BG: Cash Margin 30% with due noting of lien. Extent and Operation of the charge First charge in favour of the Bank on entire Hypothecated Assets of the Company Others Cash Credit : Rs.35.000 millions BG: Rs.25.000 millions
Short particulars of the property charged	Hypothecation of all kinds of Mobile Instruments, their parts and other electronics goods which are already stored and to be stored from time to time in that shop premises bearing D/9, New Madhavpura Market, Near Police Commissioner office, Shahibaugh, Ahmedabad- 380004. Hypothecation of Stock and Book Debts of the Company.

FIXED ASSETS:

· Air Conditioner

· Bio-Metric

· Land

· Factory Building

· Plant and Machinery

· Electric Fittings

· Furniture and Fixtures

· Honda City Car

· Maruti Swift Car

· Mahindra Duro

· Computer

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.54.29
UK Pound	1	Rs.84.09
Euro	1	Rs.72.44

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--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		32

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.