MIRA INFORM REPORT

Report Date :

01.07.2013

IDENTIFICATION DETAILS

Name :	GRAFFITI (INDIA) PRIVATE LIMITED
Registered Office :	601, 602 and 603, 6^th Floor, ‘Rembrandt’, C.G. Road, Ahmedabad – 380 006, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.02.2001
Com. Reg. No.:	04-039252
Capital Investment / Paid-up Capital :	Rs.12.500 Millions
CIN No.: [Company Identification No.]	U26916GJ2001PTC039252
TAN No.: [Tax Deduction & Collection Account No.]	AHMG00939B/ AHMG01272F
PAN No.: [Permanent Account No.]	AABCGS5928R
Legal Form :	Private Limited Liability Company
Line of Business :	Subject is engaged in trading of designer ceramic glazed tiles.
No. of Employees :	Information declined by the management.

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 180000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Evevnthough the management was quiet efficient in containing and curtailing further losses, there appears huge borrowings and a heavily stretched liquidity position. The company carries thin profitability and weak debt coverage indicators. However, trade relations are fair. Business is active. Payment terms are reported to be slow. In view of experienced promoters, the company can be considered for business dealings with great caution.

NOTES :

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

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	C (Long Term Bank Facilities)
Rating Explanation	Very high risk of default.
Date	05.04.2013

Rating Agency Name	CARE
Rating	A4 (Short Term Bank Facilities)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	05.04.2013

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 BY

Name :	Ms. Ankita Shah
Designation :	Account Manager
Contact No.:	91-79-26406811/ 91-9375226704
Date :	28.06.2013

LOCATIONS

Registered Office/ Corporate Office :	601, 602 and 603, 6^th Floor, ‘Rembrandt’, C.G. Road, Ahmedabad – 380 006, Gujarat, India
Tel. No.:	91-79-26406811/ 12/ 13
Mobile No.:	91-9428245869 (Mr. Jayendra Panchal) 91-9375226704 (Mr. Niranjan Jain)
Fax No.:	91-79-26405289/ 26403298
E-Mail :	graffiti@graffititiles.com accounts@graffititiles.com pradip@grafititiles.com info@graffititiles.com
Website :	www.graffititiles.com
Location :	Rented
Warehouse :	123, Prime Logistics, Park Building, Sarkej Bavla Highway, Village Navapura, Taluka – Sanand, Ahmedabad, Gujarat, India
Location :	Rented

DIRECTORS

As on: 28.09.2012

Name :	Mr. Sachin Mahasukhlal Shah
Designation :	Managing Director
Address :	701, Rajvi Tower, Rajvansh Society, Bodakdev, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	10.08.1968
Date of Appointment :	03.07.2011
DIN No.:	00049438
Name :	Mrs. Pallavika Mahasukhlal Shah
Designation :	Director
Address :	304, Rajvi, Rajvansh Society, Bodakdev, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	04.11.1944
Qualification :	Graduate
Date of Appointment :	09.02.2001
DIN No.:	00051397
Name :	Mrs. Rupa Sachin Shah
Designation :	Director
Address :	701, Rajvi, Rajvansh Society, Bodakdev, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	08.03.1969
Qualification :	Graduate
Date of Appointment :	09.02.2001
DIN No.:	00051422
Name :	Mrs. Kalpu Bhavin Shah
Designation :	Director
Address :	304, Rajvi, Rajvansh Society, Bodakdev, Ahmedabad – 380 054, Gujarat, India
Date of Birth/Age :	07.12.1968
Qualification :	Graduate
Date of Appointment :	09.02.2001
DIN No.:	00051444

KEY EXECUTIVES

Name :	Ms. Ankita Shah
Designation :	Account Manager

MAJOR SHAREHOLDERS

As on: 28.09.2012

Names of Shareholders	No. of Shares
Pallavikaben Mahasukhlal Shah	1000
Sachin Mahasukhlal Shah	765000
Rupa Sachin and Sachin Mahasukhlal Shah	449750
Salonee S. Shah and Sachin M. Shah	134250
Sachin Mahasukhlal Shah (HUF)	150000
Total	1500000

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in trading of designer ceramic glazed tiles.
Brand Names :	“GRAFFITI”

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

• Corporation Bank, Navrangpura, Ahmedabad – 380 009, Gujarat, India
• Bank of Baroda, Bhadra Branch, Near Parekhs, Laldarwaja, Ahmedabad – 380 001, Gujarat, India
• HDFC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWING
HDFC Bank Car Loan	0.679	0.000
SHORT TERM BORROWINGS
Loans Repayable on demand	74.586	76.659
Total	75.265	76.659

Banking Relations :
Auditors :
Name :	Nilesh Patel and Associates Chartered Accountants
Address :	205, Abhirath Complex, 3rd Floor, Sardar Patel Statue, Naranpura, Ahmedabad - 380014, Gujarat, India
Tel. No.:	91-79-27682228
Mobile No.:	91-9825044515
E-Mail :	nileshpatelca@yahoo.com
PAN No.:	ADSPP7559E

CAPITAL STRUCTURE

As on: 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1750000	Equity Shares	Rs.10/- each	Rs.17.500 Millions
75000	Preference Shares	Rs.100/- each	Rs.7.500 Millions
	Total		Rs.25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.10/- each	Rs.12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.10/- each	Rs.12.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	12.500	12.500
(b) Reserves & Surplus	33.357	26.277
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	45.857	38.777
(3) Non-Current Liabilities
(a) long-term borrowings	21.742	20.837
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	21.742	20.837
(4) Current Liabilities
(a) Short term borrowings	74.982	78.366
(b) Trade payables	48.428	30.565
(c) Other current liabilities	15.582	14.398
(d) Short-term provisions	7.466	4.581
Total Current Liabilities (4)	146.458	127.910
TOTAL	214.057	187.524
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	14.945	14.395
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1.404	1.291
(c) Deferred tax assets (net)	0.998	0.998
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	5.558	4.074
Total Non-Current Assets	22.905	20.758
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	114.807	98.417
(c) Trade receivables	51.721	52.905
(d) Cash and cash equivalents	6.628	4.695
(e) Short-term loans and advances	17.996	10.748
(f) Other current assets	0.000	0.001
Total Current Assets	191.152	166.766
TOTAL	214.057	187.524

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		12.500
2] Share Application Money		0.000
3] Reserves & Surplus		22.300
4] (Accumulated Losses)		0.000
NETWORTH		34.800
LOAN FUNDS
1] Secured Loans		75.587
2] Unsecured Loans		25.669
TOTAL BORROWING		101.256
DEFERRED TAX LIABILITIES		0.000
TOTAL		136.056
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14.349
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	104.746
	Sundry Debtors	43.248
	Cash & Bank Balances	8.066
	Other Current Assets	0.000
	Loans & Advances	17.311
Total Current Assets		173.371
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors
	Other Current Liabilities	36.926
	Provisions	14.738
Total Current Liabilities		51.664
Net Current Assets		121.707
MISCELLANEOUS EXPENSES		0.000
TOTAL		136.056

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Gross Sales Revenue	610.010	442.129	355.512
		Other Income	NA	0.814	3.409
		TOTAL (A)	NA	442.943	358.921
Less	EXPENSES
		Office Expenses	NA	422.827	342.287
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	NA	422.827	342.287
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		27.358	20.116	16.634
Less	FINANCIAL EXPENSES (D)		13.613	13.640	13.466
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		13.745	6.476	3.168
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.726	2.860	2.760
	PROFIT BEFORE TAX (E-F) (G)		10.019	3.616	0.408
Less	TAX (H)		2.939	0.360	0.000
	PROFIT AFTER TAX (G-H) (I)		7.080	3.976	0.408
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(2.339)	(6.315)	(6.723)
	BALANCE CARRIED TO THE B/S		(4.473)	(2.339)	(6.315)
	IMPORTS
		Raw Materials	38.318	25.864	9.055
	TOTAL IMPORTS		38.318	25.864	9.055
	Earnings Per Share (Rs.)		4.72	3.18	0.33

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	0.90	0.11
Net Profit Margin (PBT/Sales)	(%)	1.64	0.82	0.11
Return on Total Assets (PBT/Total Assets}	(%)	4.73	1.95	0.22
Return on Investment (ROI) (PBT/Networth)		0.22	0.09	0.01
Debt Equity Ratio (Total Debt /Networth)		2.11	2.56	2.91
Current Ratio (Current Asset/Current Liability)		1.31	1.30	3.36

LOCAL AGENCY FURTHER INFORMATION

DETAIL OF SUNDRY CREDITORS:

(Rs. in Millions)

PARTICULARS	31.03.2012	31.03.2011	31.03.2010
Sundry Creditors for Material/ Suppliers	29.133	17.996	NA
Sundry Creditors for Services	19.295	12.569	NA
Total	48.428	30.565	NA

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	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	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	Yes

NOTE:

The registered office of the company has been shifted from “F/69, Ratilal Park, St. Xavier’s School Road, Ahmedabad – 380 014, Gujarat, India” to the present address w.e.f. 03.07.2011

FINANCE:

The company’s application for enhancement of working capital limits up to Rs.100.000 Millions has been sanctioned during the current financial year. The working Capital management of the company is well regulated with improved liquidity.

The company intends to stabilize the financial charges by monitoring the flow of funds and optimum utilization of funds.

UNSECURED LOAN:

(Rs. in Millions)

Particulars	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWING
Loans and Advances from Related Parties
From Directors	3.697	3.456
From Shareholders	1.942	2.312
From Relatives	0.852	0.015
Deposits	14.573	15.054
SHORT TERM BORROWINGS
Others	0.396	1.707
Total	21.460	22.544

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U26916GJ2001PTC039252
Name of the company	GRAFFITI (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	601 and 602, 6th Floor, Rembrandt, C.G. Road, Ahmedabad – 380006, Gujarat, India accounts@graffititiles.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10093607
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Bank of Baroda, Bhadra Branch, Near Laldarwaja, Ahmedabad - 380001, Gujarat, India bhadra@bankofbaroda.com
Nature of instrument creating charge	1. Supplemental joint composite agreement of hypothecation stocks, book debts and movable machineries.
Date of instrument Creating the charge	09.11.2012
Amount secured by the charge	Rs.227.214 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Terms of Repayment 12 months. Extent and Operation of the charge Cash Credit of Shree Ambica Decoprints Private Limited enhanced from Rs. 37.400 Millions to Rs. 44.714 Millions. The Bank shall have exclusive charge on the assets of the Company. The Break up of over all limit is as under : (1) Shree Ambica Decoprints Private Limited : Rs. 44.714 Millions. (2) Graffiti (India) Private Limited: Rs.137.500 Millions (3) Shaleen Ceramics: Rs. 45.000 Millions. Total Limit : Rs. 227.214 Millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Exclusive 1st charge by way of hypothecation on entire raw materials, stock in process, stores and spares, packing materials semi finished and finished goods of the Company both present and future and All the present and future Book debts, outstanding monies, receivables, claims, bills, contracts, engagements, security etc. of the company and All the tangible Movable Machinery, Plant and Machinery, vehicles, spares, tools, accessories and other movables both present and future.
Date of instrument modifying the charge	20.08.2012
Particulars of the present modification	Charge modified to secure add. credit facilities of Rs. 19.500 Millions granted to Shree Ambica Decoprints Private Limited aggregate limits to this company revised to Rs. 44.714 Millions from Rs. 37.400 Millions Thus the total amounts secured by charge increased from Rs. 219.900 Millions to Rs. 227.214 Millions (revised) granted to the following parties (1) Shree Ambica Decoprints Private Limited Rs.44.714 Millions. (2) M/s. Graffiti (India) Private Limited Rs.137.500/- Millions. (3) M/s. Shaleen Ceramics Rs.45.000/- Millions .Total Limit Rs. 227.214 Millions.

FIXED ASSETS:

· Machinery

· Furniture

· Office Equipment

· Computer

· Storage Racks

· Dies

· Vehicles

· Electric Installation

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.59.70
UK Pound	1	Rs.91.14
Euro	1	Rs.77.98

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	RAJ

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
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	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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

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.