MIRA INFORM REPORT

Report Date :

29.01.2013

IDENTIFICATION DETAILS

Name :	KHETAN TILES PRIVATE LIMITED
Registered Office :	C-59, Road No. 5, V.K.I. Area, Jaipur – 302013, Rajasthan
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	16.06.1989
Com. Reg. No.:	17-005007
Capital Investment / Paid-up Capital :	Rs. 8.458 Millions
CIN No.: [Company Identification No.]	U14101RJ1989PTC005007
TAN No.: [Tax Deduction & Collection Account No.]	JPRK02236D
PAN No.: [Permanent Account No.]	AABCK0431H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of Tiles and Marbles.
No. of Employees :	20 (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 309000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. There appears some dip in the turnover of the company. The profit margin of the company also appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small 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.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Export Bill Purchase : A4+
Rating Explanation	Minimal degree of safety it carry very high credit risk.
Date	April 13, 2012

Rating Agency Name	CRISIL
Rating	Term Loan : BB+
Rating Explanation	Moderate risk of default.
Date	April 13, 2012

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 :	Mr. Mukesh
Designation :	Chief Executive Officer
Contact No.:	91-9784598024
Date :	23.01.2013

LOCATIONS

Registered Office :	C-59, Road No. 5, V.K.I. Area, Jaipur – 302013, Rajasthan, India.
Tel. No.:	91-141-5113596/ 5103595/ 2330065
Mobile No.:	91-9829010441 (Mr. Kamal Kishore Khetan)
Fax No.:	91-141-2332945
E-Mail :	khetan_tiles@sify.com info@khetantiles.com godika_dg@yahoo.co.in
Website :	www.khetantiles.com
Area :	6000 sq.ft.
Location :	Owned
Branch Office:	Makrana Road, Madanganj, Kishangadh, Rajasthan, India

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Kamal Kishore Khetan
Designation :	Director
Address :	1-B-19, Nahari Ka Naka, P and T Colony, Shastri Nagar, Jaipur – 302016, Rajasthan, India.
Date of Birth/Age :	01.07.1962
Date of Appointment :	28.09.1990
DIN No.:	00348649
Name :	Mr. Jagdish Prasad Khetan
Designation :	Director
Address :	1-B-19, Nahari Ka Naka, P and T Colony, Shastri Nagar, Jaipur – 302016, Rajasthan, India.
Date of Birth/Age :	05.07.1940
Date of Appointment :	29.09.1993
DIN No.:	00348532

KEY EXECUTIVES

Name :	Mr. Mukesh
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Jagdish Prasad Khetan	6645
Mali Ram Khetan	2120
Kamal Kishore Khetan	8170
Kaushlaya Devi Khetan	760
Mool Chand Khetan	6310
Banwai Lal Khetan	6760
Ram Chander Khetan	3340
Dinesh Khetan	8020
Panna Devi Khetan	190
Bajarang Lal Khetan	5160
Malkha Devi Khetan	880
Asha Devi Khetan	150
Manorma Devi Khetan	4790
Basanti Devi Khetan	4740
Anil Khetan	1500
Arvind Khetan	5500
Sunil Khetan	1500
Nitesh Khetan	1500
Chanda Khetan	5700
Rekha Khetan	1680
Mukesh Khetan	8415
Juli Khetan	750
Total	84580

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Tiles and Marbles.

Products :

ITC Code	Product Descriptions
680221	Marble Block, Slab and Tiles

Exports :

Products :

Ø Raw Blocks

Ø Marble Tiles

Ø Sandstone Tiles

Ø Slate Stone

Ø Quartzite

Ø Limestone

Ø Miscellaneous

Countries :

Ø China

Ø US

Imports :

Products :

Raw Material

Countries :

Ø Italy

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Gangsaw Slab	SQM	N.A.	N.A.	70541.700
Polished Tiles	SQM	N.A.	N.A.	12481.000

GENERAL INFORMATION

Suppliers :

Ø Agarwal Exports, Jaipur

Ø Agarwal Marble and Ind. Private Limited

Ø Akar Marble Industries JPR

Ø Ankit Marbles Supplieers Roopnagarh

Ø Ashish Stones, Kishangarh

Ø Bansal Forest Marbles Bidasar

Ø Bidasar Stones Bidasar

Ø D and D Group

Ø Durga Marble and Minerlas Udai

Ø Geetanjali Marbles, Katni

Ø I.S. Construction Private Limited

Ø Indiana Marbles Bidiyad

Ø Jai Maa Bhawan Marbles Tiles

Ø Kapil Stones Jaiselmer

Ø Padam Udyog Ladnoo

Ø Parvati Marble, Andhi

Ø Peethambra Marbles and Stones Private Limited, Dungarpur

Ø Pooja Granites (AP)

Ø Prathyusha Granites (AP)

Ø Prime Marble Mineral and Chemical, UDPR

Ø R. S. G. Stones Bidasar

Ø Radha Krishna Marbles BDSR

Ø Rajasthan Abresive, Jodhpur

Ø Rajasthan Industries, Jodhpur

Ø S. K. India Mines and Minerals

Ø Shree Charbhuja Marbles Ind. Kshgrh

Ø Shri Gosai Marbles, Jaiselmer

Ø Shri Marketing and Agencies JPR

Ø SMt. Ramdulari Kachhwa Jaipur

Ø Vijay Laxmi Marble Dunkar

Ø Vijaya Enterprises, Jaipur

Ø Vikram Singh Vikas Singh and Comp. BDSR

Ø Vishvkarma Saw Mills

Customers :

Wholesalers and Retailers

No. of Employees :

20 (Approximately)

Bankers :

Ø State Bank of Bikaner and Jaipur, V.K.I. Area Branch, Road No. 5, Jaipur – 302013, Rajasthan, India

Ø Citi Bank

Ø Citi Corporation Finance Limited

Ø ICICI Bank Limited

Facilities :

Cash Credit – Rs. 100.000 Millions

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Citi Bank Loan for Forklift	0.049	0.231
ICICI Escoda Car Loan	0.000	0.120
SBBJ term loan I	14.929	22.390
SBBJ term loan II	1.717	0.000
SBBJ CC A/C	39.629	11.393
SBBJ EPC Loan A/c	6.964	9.132
Total	63.288	43.266

Banking Relations :	--
Financial Institution :	Rajashtan Financial Corporation, Udjog Bhavan, Tilak Marg, Jaipur, Rajasthan, India
Auditors :
Name :	Godika Dinesh and Company Chartered Accountants
Address :	F–4, Bichoon Complex, Kishanpole Bazar, Jaipur – 302001, Rajasthan, India
Tel. No.:	91-141-4019239
Mobile No.:	91-9829019239
E-Mail :	godika_09@yahoo.co.in
Income-tax PAN of auditor or auditor's firm :	AEIPG2515E
Related Parties :	Ø Gangwal Carriers Pty Limited Ø Basant Marble Ø J.P. Marble Ø Jaipur Marmo Tiles Pty Limited Ø Jaipur Properties Ø Keshari Natural Stones Pty Limited Ø Khetan Grani Marmo Pty Limited Ø Mukesh Natural Stones Pty Limited Ø Sarna Marble Ø Singal Natural Stones Pty Limited Ø Sujash Stone Valley Pty Limited Ø Tileco Private limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
85,000	Equity Shares	Rs. 100/- each	Rs. 8.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
84,580	Equity Shares	Rs. 100/- each	Rs. 8.458 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		8.458	6.988	6.988
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		68.799	62.445	57.870
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		77.257	69.433	64.858
LOAN FUNDS
1] Secured Loans		63.288	43.266	59.817
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		63.288	43.266	59.817
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		140.545	112.699	124.675
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		55.135	55.306	57.470
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		8.610	8.342	7.428
DEFERRED TAX ASSETS		0.131	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	41.530	47.190	39.054
	Sundry Debtors	28.179	18.373	23.882
	Cash & Bank Balances	0.451	0.449	1.686
	Other Current Assets	6.801	5.260	9.209
	Loans & Advances	54.018	39.745	18.849
Total Current Assets		130.979	111.017	92.680
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	20.702	38.325	28.877
	Other Current Liabilities	32.868	23.641	4.482
	Provisions	0.740	0.000	0.000
Total Current Liabilities		54.310	61.966	33.359
Net Current Assets		76.669	49.051	59.321
MISCELLANEOUS EXPENSES		0.000	0.000	0.456
TOTAL		140.545	112.699	124.675

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	163.585		114.222
		Other Income	N.A.		0.000
		TOTAL	N.A.	190.895	114.222
Less	EXPENSES
		TOTAL	N.A.	183.624	108.331
	PROFIT BEFORE TAX		6.668	7.271	5.891
Less	TAX		N.A.	2.205	0.784
	PROFIT AFTER TAX		N.A.	5.066	5.107
	Earnings Per Share (Rs.)		N.A.	73.00	73.00

Expected Sales (2012-2013): Rs. 170.000 Millions

The above information has been parted by Mr. Mukesh (Chief Executive Officer)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	N.A.	2.65	4.47
Net Profit Margin (PBT/Sales)	(%)	4.08	N.A.	5.16
Return on Total Assets (PBT/Total Assets}	(%)	3.58	4.37	3.92
Return on Investment (ROI) (PBT/Networth)		0.09	0.10	0.09
Debt Equity Ratio (Total Liability/Networth)		1.52	1.52	1.44
Current Ratio (Current Asset/Current Liability)		2.41	1.79	2.78

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	Yes
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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
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	Yes

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U14101RJ1989PTC005007
Name of the company	KHETAN TILES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	C-59, Road No. 5, V.K.I. Area, Jaipur – 302013, Rajasthan, India Email: godika_dg@yahoo.co.in
This form is for	Creation of charge
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	State Bank of Bikaner and Jaipur, V.K.I. Area Branch, Road No. 5, Jaipur – 302013, Rajasthan, India Email: purshottam.das.sharma@sbbj.co.in
Nature of description of the instrument creating or modifying the charge	1. Letter of Arrangement. SME-1 2. Memorandum for recording of extension of mortgage by deposit of Title Deeds. SME-7 3. Sanction Letter.
Date of instrument Creating the charge	19.12.2012
Amount secured by the charge	Rs. 5.250 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest @11.50% p.a. calculated on daily products at monthly rests. Terms of Repayment Repayable in 24 monthly installments. 23 installments of Rs.0.219 Million each and last installment of Rs.0.225 Million, with the first installment commencing on October 2013 and the last installment falling due on September 2015. Margin As per Bank Norms. Extent and Operation of the charge The charge will operate as first charge to the extent of Rs.5.250 Millions to secure the Term Loan granted to the company by the Bank.
Short particulars of the property charged	Equitable Mortgage is extended on company's immovable property situated at C-59, Road No.5, VKI Area Jaipur comprising Factory land and Building, constructed or to be constructed, fixed Plant and Machinery, erected or to be erected, both present and future to secure Term Loan of Rs.5.250 Millions granted to the company by the Bank. The Company also hypothecates by way of first exclusive charge on all stocks of Raw Materials, work-in-process, semi-finished goods and finished goods, packing materials, stores, spares, consumables etc lying loose or godown or elsewhere. All present and future Book Debts of the company and entire current and fixed assets of the company, both present and future which is available for Working Capital Limit. The above securities also covers Term Loan I outstanding of Rs.16.640 Millions, Term Loan II of Rs.1.975 Millions and Cash Credit (Hypo): Rs.55.000 Millions and BG of Rs.0.728 Million totalling Rs.55.728 Millions.

FIXED ASSETS:

Ø Land

Ø Leasehold Land

Ø Building

Ø Factory Building

Ø Plant and Machinery

Ø Office Equipment

Ø Computer Equipments

Ø Furniture and Fixture

Ø Vehicles

Ø Other Fixed Assets

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. 53.89
UK Pound	1	Rs. 84.93
Euro	1	Rs. 72.51

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	5
--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	YES
--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.