MIRA INFORM REPORT

Report Date :

30.03.2013

IDENTIFICATION DETAILS

Name :	MALVIYA CRAFTS PRIVATE LIMITED
Registered Office :	77, Gandhi Nagar, Abu Road – 307 026, Rajasthan
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	25.04.1997
Com. Reg. No.:	17-013632
Capital Investment / Paid-up Capital :	Rs 2.000 Millions
CIN No.: [Company Identification No.]	U14219RJ1997PTC013632
TAN No.: [Tax Deduction & Collection Account No.]	JDHM04238D
PAN No.: [Permanent Account No.]	AACCM9700G
Legal Form :	Private Limited Liability Company
Line of Business :	The Company is engaged in the manufacturing and selling marble/Stones/Granite Mandir Article, Part pillar and slab.
No. of Employees :	20 (Approximately)

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 30000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions.

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.

INFORMATION PARTED BY

Name :	Mr Hitesh Malviya
Designation :	Director
Contact No.:	91-9828152305
Date :	06.03.2013

LOCATIONS

Registered Office :	77, Gandhi Nagar, Abu Road – 307 026, Rajasthan, India
Tel. No.:	91-2974-221150/221305
Mobile No.:	91-9414152350 (Mr. Ashok)
Fax No.:	91-2974-221305
E-Mail :	malviya_craft@yahoo.com akvassociates@gmail.com
Website :	http://www.malviyacrafts.com
Area :	1000 sq.ft
Location :	Owned
Factory 1 :	G-106, Arbuda Industrial Area, Gandhi Nagar, Abu Road – 307 026, Rajasthan, India
Tel. No.:	91-2974-222822/ 221305/ 221150
Fax No.:	91-2974-221305
Area :	3000 sq ft
Location :	Owned

DIRECTORS

AS ON : 29.09.2012

Name :	Mr. Anil Kumar Malviya
Designation :	Director
Address :	45, Gandhi Nagar, Abu Road – 307 026, Rajasthan, India
Date of Birth/Age :	28.01.1972
Date of Appointment :	27.09.2001
DIN No.:	00697105
Name :	Mr. Hitesh Kumar Malviya
Designation :	Director
Address :	45, Gandhi Nagar, Abu Road – 307 026, Rajasthan, India
Date of Birth/Age :	20.09.1984
Date of Appointment :	29.09.2004
DIN No.:	00697144
Name :	Mr. Ashok Kumar Malviya
Designation :	Director
Address :	45, Gandhi Nagar, Abu Road – 307 026, Rajasthan, India
Date of Birth/Age :	15.08.1966
Date of Appointment :	25.04.1997
DIN No.:	00697054

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON : 29.09.2012

Names of Shareholders	No. of Shares
Malviya Ashok	31750
Malviya Kankuben	31800
Malviya Uma	23450
Malviya Anil	22000
Malviya Shilpa	19000
Malviya Hitesh	20000
Malviya Geeta	20000
Malviya Mitesh	10000
Ashok Malviya (HUF)	11000
Anil Malviya (HUF)	11000
Total	200000

Equity Share Break up (Percentage of Total Equity)

AS ON: 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

The Company is engaged in the manufacturing and selling marble/Stones/Granite Mandir Article, Part pillar and slab.

Products :

• All types of Marble Articles
• Temple Works
• Handicrafts
• Stone Carvings
• Sculptures
• Inlay Works
• Temples
• Pillars
• Capitals
• Garden Furniture
• Fireplace
• Surrounds, etc.

Item Code No. (ITC Code)	680221-01
Product Description	Marble Granite and Other Stones Slab and Articles.

Exports :

Products :

Architecture Articles and Handicrafts

Countries :

UK, USA

Imports :

Products :

Machinery

Countries :

Italy

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON : 31.03.2012)

Particulars	Actual Production
Marble	20000 to 25000 cft

GENERAL INFORMATION

Suppliers :

Trivedi Granites Private Limited

Customers :

End Users

Rajasthan Devstan Boards

No. of Employees :

20 (Approximately)

Bankers :

• Bank of Baroda, Abu Road Branch, Abu Road – 307 026, Rajasthan, India
• ICICI Bank Limited, Udaipur, India
• Bank of Rajasthan, Abu Road, India
• Rajasthan Financial Corporation, Udyog Bhawan, Tilak Marg, Jaipur, Rajasthan, India
• State Bank of India

Facilities :

Rs. in Millions

Secured Loans :	As on 31.03.2012	As on 31.03.2011
Long Term Borrowings:
a)State Bank of India Vehicle Loan (Secured against Tata Truck) Term Loan repayable in 66 Monthly installment Rate of Interest@ 13.40% and subject to change from time to time as per bank norms, subject to change in base rate and credit rating of the account.	0.363	0.501
b)Bank of Baroda Aburoad Term Loan 1 Term Loan repayable in 84 Monthly installment commencing from 31.08.2011 Rate of interest @ 13.00% P.A. Base Rate @ 10.50% and subject to change from time to time as per bank norma, subject to change in base rate and credit rating of the account.	0.773	0.000
Bank of Baroda Aburoad Term Loan 2 (Secured By Way Of Equitable Mortgae Of Factory Land Building And Hypothecation Over Plant And Machinery Along With Personal Guarantee Of Directors.) Term Loan repayable in 84 Monthly installment commencing from 01.07.2011 Rate of interest @ 13.00% P.A. Base rate @ 10.50% and subject to change from time to time as per bank norms. Subject to change in base rate and credit rating of the account.	5.376	0.000
Short Term Borrowings:
Bank of Baroda Aburoad Cash Credit Limit (Secured by way of hypothecation of goods, and equitable mortgage of factory land, building and hypothecation of plant and machinery along with personal gurantee of the Directors.) Interest Rate @ 13.00% and base Rate 10.50% with monthly rest and subject to change from time to time as per bank norms.	6.051	1.936
Total	12.563	2.437

Auditors :
Name :	Vipin Jain and Company Chartered Accountants
Address :	Banarasi Niwas, Opposite Jugal Kishore, Paradas Jain, Sadar Bazar, Abu Road – 307 026, Rajasthan, India
Tel. No.:	91-2974-223136
Sister Concern :	Bhartiya marble granite and granite articles Bhartiya Hanicrafts

CAPITAL STRUCTURE

As on: 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs 10/-each	Rs 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs 10/-each	Rs 2.000 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		2.000	1.200	1.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		5.701	3.070	2.499
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		7.701	4.270	3.699
LOAN FUNDS
1] Secured Loans		12.563	2.437	2.038
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		12.563	2.437	2.038
DEFERRED TAX LIABILITIES		0.239	0.033	0.073
TOTAL		20.503	6.740	5.810
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.187	2.660	2.257
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.122	5.842	4.650
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	3.497	1.622	0.000
	Other Current Assets	16.593	13.862	0.045
	Loans & Advances	0.000	0.000	12.724
Total Current Assets		26.212	21.326	17.419
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.347	11.005	9.639
	Other Current Liabilities	11.203	5.882	3.996
	Provisions	0.346	0.359	0.231
Total Current Liabilities		22.896	17.246	13.866
Net Current Assets		3.316	4.080	3.553
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		20.503	6.740	5.810

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	54.894	30.877	25.291
		Other Income	0.096	0.046	NA
		TOTAL (A)	54.990	30.923	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	51.502	53.042	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.488	1.852	1.406
Less	FINANCIAL EXPENSES (D)		0.961	0.434	0.272
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.527	1.418	1.134
Less	DEPRECIATION/ AMORTISATION (F)		0.998	0.570	0.437
	PROFIT BEFORE TAX (E-F) (G)		1.529	0.848	0.697
Less	TAX (I)		0.497	0.277	0.459
	PROFIT AFTER TAX (G-I) (J)		1.032	0.571	0.238
	IMPORTS
	Capital Goods		9.362	0.000	0.000
	TOTAL IMPORTS		9.362	0.000	0.000
	Earnings Per Share (Rs.)		5.16	4.76	1.98

Expected Sales ( 2012-13) : Rs. 60.000 Millions

The above information has been parted by Mr Hitesh Malviya

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.88	1.84	0.00
Net Profit Margin (PBT/Sales)	(%)	2.78	2.74	2.76
Return on Total Assets (PBT/Total Assets}	(%)	3.52	3.54	3.54
Return on Investment (ROI) (PBT/Networth)		0.20	0.20	18.84
Debt Equity Ratio (Total Debt /Networth)		1.63	0.57	0.55
Current Ratio (Current Asset/Current Liability)		1.14	1.24	1.26

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	Yes
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	No

Bankers Charges Report as per Registry:

Corporate identity number of the company	U14219RJ1997PTC013632
Name of the company	MALVIYA CRAFTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	77, Gandhi Nagar, Abu Road – 307 026, Rajasthan, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Bank of Baroda, Abu Road Branch, Abu Road – 307 026, Rajasthan, India Email: abroad@bankofbaroda.com
Nature of instrument creating charge	1.Supplemental Composite Agreement of Hypothecation of goods, book debts, moveable machinery and vehicles. LDOC 17(C) 2.Supplemental Memorandum of Deposit of title deeds for Extension of Equitable Mortgage.
Date of instrument Creating the charge	07.02.2012
Amount secured by the charge	Rs. 16.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest @ 2.50% p.a. Above Base Rate, Present Base Rate is 10.75% with monthly rest, Applicable as per Special Marble Processing Units finance scheme for Rajasthan Jone. Terms of repayment Repayable on demand Margin On Stocks - 25% On Book Debts (Up to 90 days) - 30% Extent and operation of the charge The charge will operate as a first charge to the extent of Rs.16.000 millions to secure following limits given to the company by the bank. Cash Credit (Hypo. of Stock and Book Debts) Rs.6.000 millions Bank Guarantee (Performance) Rs.7.500 millions Bank Guarantee (Financial) Rs.2.500 millions Total Limits Rs.16.000 millions
Short particulars of the property charged (Including location of the property)	1) First charge by way of hypothecation of all stocks of raw material, semi finished and finished goods, stock in process consumable goods, packing material , stores and spares, 2) all present and future book debts, all present and future movable plant, machinery and all present and future current and fixed assets of the company as a security to cover. 3) Cash Credit (Hypo. of stocks and book debts) limits of Rs.6.000 millions, Bank Guarantee (Performance) limit of Rs.7.500 millions Bank Guarantee (Financial) of Rs.2.500 millions totaling of Rs.16.000 millions 4) Granted to the company by the bank. 5) Equitable Mortgage is extended on immovable property of the company comprising land and building constructed or to be constructed, Fixed plant and machinery, erected or to be erected 6) both present and future situated at Plot No.G-106, Arbuda Industrial Area, Abu Road, Rajasthan as a security to cover Cash Credit (Hypo. of stocks and book debts) limits of Rs.6.000 millions 7) Bank Guarantee (Performance) limit of Rs.7.500 millions, Bank Guarantee (Financial) of Rs.2.500 millions totaling of Rs.16.000 millions Granted to the company by the bank. 8) The above security also cover New Term Loan of Rs.9.000 millions and Existing Term Loan-I of Rs.94.000 millions.
Whether any of the property or interest therein under reference is not registered in the name of the company. If yes, in whose name it is registers	Yes, Ashok Kumar Malviya - Smt. Kanku Devi - Uma Malviya
Particulars of the present modification	By this modification limits has been enhanced from Rs.2.000 millions to Rs.16.000 millions against the security of all current and fixed assets of the company and EM is also extended on Immovable Property of the company situated at Plot No.G-106, Arbuda Industrial Area, Abu Road. (Limits as follow) Cash Credit (Hypo. of Stock and Book Debts) Rs.6.000 millions Bank Guarantee (Performance) Rs.7.500 millions BG (Financial) Rs.2.500 millions Total Limits Rs.16.000 millions Other terms and condition remain unchanged.

FIXED ASSETS:

• Building
• Elect Installation
• Land
• Office Equipments
• Computers
• Plant and Machinery
• Tube Well
• 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. 54.00
UK Pound	1	Rs. 82.47
Euro	1	Rs. 70.49

INFORMATION DETAILS

Report Prepared by :

NIS

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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.