MIRA INFORM REPORT

Report Date :

11.10.2013

IDENTIFICATION DETAILS

Name :	MICHIGAN STONES PRIVATE LIMITED
Registered Office :	No.301, 2^nd Floor, Kembathahlli Road, Gottigere, Bannaerghtta Main Road, Bangalore – 560 083, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	05.09.2007
Com. Reg. No.:	08-043792
Capital Investment / Paid-up Capital :	Rs.8.073 Millions
CIN No.: [Company Identification No.]	U14100KA2007PTC043792
TAN No.: [Tax Deduction & Collection Account No.]	BLRM12106D
Legal Form :	Private Limited Liability Company
Line of Business :	Trading and Exporting in Granite Stones and Marbles.
No. of Employees :	25 (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 203000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. The company as reported better growth in sales turnover and profit of the financial year 2012. Trade relations are reported to be fair. Business is active. Payment terms are usually correct. The company can be considered for business dealing 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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. Amit Khabya
Designation :	Director
Contact No.:	91-80-39350709
Date :	07.10.2013

INFORMATION DECLINED

MANAGEMENT NON CO-OPERATIVE

LOCATIONS

Registered Office :	No.301, 2^nd Floor, Kembathahlli Road, Gottigere, Bannaerghtta Main Road, Bangalore – 560 083, Karnataka, India
Tel. No.:	91-80-39350709
Mobile No.:	91-9341168123 (Mr. Amit Khabya) 91-9341940046 (Chandrakanta Adhikari)
Fax No.:	91-80-39350709
E-Mail :	michiganstones@vsnl.net michiganstones@yahoo.com ckadhikari@gmail.com Suranamukesh73@gmail.com accounts@michigastones.com
Website :	http://www.michiganstones.com

DIRECTORS

AS ON 28.09.2012

Name :	Mr. Amit Khabya
Designation :	Director
Address :	No.4204, Nandi Park Apartment, Block Kusuma IV, Gottigere, Banergatta Main Road, Bangalore - 560 083, Karnataka, India
Date of Birth/Age :	30.03.1975
Date of Appointment :	05.09.2007
DIN No.:	01742574
Name :	Mr. Chandrakanta Adhikari
Designation :	Director
Address :	No.5307, Nandi Park Apartment, Gottigere, Banergatta Main Road, Bangalore – 560 083, Karnataka, India
Date of Birth/Age :	01.01.1974
Date of Appointment :	05.09.2007
DIN No.:	01742634

MAJOR SHAREHOLDERS

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Amit Khabya	145000
Chandrakanta Adhikari	5000
Vijay Rana	5800
Ranjan Bhera	4000
Padma Kumari	2000
Latha Chander	2000
Munmun Surana	2910
Anuradha	2200
Ameer Abdula	1600
Kavita	1000
N.R. Singhvi	1600
Mahaveer Kothari	3780
Anil Jain	5000
Badrinath Vanijya Private Limited	20000
Chitranjan Patra	6880
Debi Prasad Prasana	3660
Dhanlaxmi Vanijya Private Limited	20000
Dhanlaxmi Kuber Vyapar Private Limited	20000
Giri Financial Services Private Limited	20000
JDL Investment Consultant Private Limited	10000
Kanta Surana	5740
Manju Nath	2682
Narendra Khabya	5390
Navnidhi Financial Private Limited	10000
Nikhil Singhvi	1880
Nirnidhi Commodities Private Limited	20000
Prabhu Kumar	5800
Pradeep Kumar	4200
Pradeep Shau	4000
Prbhudhan Finance Private Limited	20000
Sandeep Kumar	2680
Savita J.	3980
Shanta Khabya	2780
SJR Auto Financiers Private Limited	40000
Sudha Gupta	800
Viyarekha M.V.	2000
Zenith Investment Private Limited	10000
Total	424362

Equity Share Break up (Percentage of Total Equity)

AS ON 28.09.2012

Category	Percentage
Bodies corporate	44.00
Directors or relatives of Directors	56.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trading and Exporting in Granite Stones and Marbles.
Products :	· Slabs · Tiles · Kitchen Tops · Work Tops · Pavers · Monuments · Cobblestones

GENERAL INFORMATION

No. of Employees :

25 (Approximately)

Bankers :

· State Bank of India, No. 22, J.C. Road, Bangalore City Branch, Bangalore – 560 002, Karnataka, India

· United Bank of India

Facilities :

SECURED LOANS	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Short Term Borrowings
Loans repayable on Demand
From State Bank of India (Secured by Hypothecation of stock and Book Debts)	11.775	0.000
Total	11.775	0.000

Banking Relations :	--
Auditors :
Name :	Bhandhari Pincha and Surana Chartered Accountants
Address :	No.324, 1^st Floor, Prabhat Complex, No.8, K G Road, Bangalore – 560 009, Karnataka, India
PAN No.:	AAGPB7968L

CAPITAL STRUCTURE

AS ON 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs. 10/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
424362	Equity Shares	Rs. 10/- each	Rs.4.244 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
807282	Equity Shares	Rs. 10/- each	Rs.8.073 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	8.073	4.244
(b) Reserves & Surplus	42.877	24.266
(c) Money received against share warrants	0.000	0.000
		0
(2) Share Application money pending allotment	0.000	1.598
Total Shareholders’ Funds (1) + (2)	50.950	30.108
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(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)	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	11.775	0.000
(b) Trade payables	16.465	23.336
(c) Other current liabilities	10.077	14.436
(d) Short-term provisions	1.629	1.208
Total Current Liabilities (4)	39.946	38.980
TOTAL	90.896	69.088
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6.959	6.371
(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	0.000	0.000
(c) Deferred tax assets (net)	0.002	0.002
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.120	0.090
Total Non-Current Assets	7.081	6.463
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.000	0.000
(c) Trade receivables	63.586	47.892
(d) Cash and cash equivalents	2.901	2.361
(e) Short-term loans and advances	5.995	6.724
(f) Other current assets	11.333	5.648
Total Current Assets	83.815	62.625
TOTAL	90.896	69.088

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2.844
2] Share Application Money		0.000
3] Reserves & Surplus		16.161
4] (Accumulated Losses)		0.000
NETWORTH		19.005
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		7.118
TOTAL BORROWING		7.118
DEFERRED TAX LIABILITIES		0.000
TOTAL		26.123
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.979
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.002
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	32.885
	Cash & Bank Balances	3.982
	Other Current Assets	0.000
	Loans & Advances	5.754
Total Current Assets		42.621
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.763
	Other Current Liabilities	1.532
	Provisions	0.199
Total Current Liabilities		17.494
Net Current Assets		25.127
MISCELLANEOUS EXPENSES		0.015
TOTAL		26.123

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	206.773	149.832	210.040
		Other Income	0.437	0.184	2.315
		TOTAL (A)	207.210	150.016	212.355
Less	EXPENSES
		Operative Cost of export	18.573	17.296
		Purchases of stock in trade and packing materials changes in inventories of finished goods	174.614	122.079
		Employee Benefits Expense	3.198	1.596
		Other Expenses	5.418	5.160
		TOTAL (B)	201.803	146.131	207.396
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.407	3.885	4.959
Less	FINANCIAL EXPENSES (D)		0.255	0.000	0.000
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.152	3.885	4.959
Less	DEPRECIATION/ AMORTISATION (F)		0.274	0.280	0.271
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		4.878	3.605	4.688
Less	TAX (H)		1.584	1.100	1.500
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		3.294	2.505	3.188
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.691	5.186	1.998
	BALANCE CARRIED TO THE B/S		10.985	7.691	5.186
	Earnings Per Share (Rs.)		4.08	5.90	11.21

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.59	1.67	1.50
Net Profit Margin (PBT/Sales)	(%)	2.36	2.41	2.23
Return on Total Assets (PBT/Total Assets}	(%)	5.37	5.22	10.75
Return on Investment (ROI) (PBT/Networth)		0.10	0.12	0.25
Debt Equity Ratio (Total Debt /Networth)		0.23	0.00	0.37
Current Ratio (Current Asset/Current Liability)		2.10	1.61	2.44

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	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	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	No

NOTE: Registered office of the company has been shifted from No. 146, 1^st main, 4^th cross, Nisarga layout, Koppa Gate, Harapanahalli Village, Jignai, Anekal Taluk, Bangalore – 562 105, Karnataka, India to the present address w.e.f.16.01.2012

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10332685	23/01/2012	28,500,000.00	STATE BANK OF INDIA	No. 22, J.C.ROAD, BANGALORE CITY BRANCH, BANGALORE – 560 002, KARNATAKA, INDIA	B30872550

FIXED ASSETS:

· Vehicles

· Furniture and Fixture

· UPS

· Office Equipment

· Computers

· Laptop

· Land

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.62.14
UK Pound	1	Rs.99.02
Euro	1	Rs.83.87

INFORMATION DETAILS

Information Gathered by :	NAY
Report Prepared by :	NKT

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	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		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.