MIRA INFORM REPORT

Report Date :

23.09.2013

IDENTIFICATION DETAILS

Name :	IMS MERCANTILES PRIVATE LIMITED
Registered Office :	704, 7^th Floor, Ring Road Mall, Sector – 3, Rohini, Delhi – 110085
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.08.2003
Com. Reg. No.:	55-121932
Capital Investment / Paid-up Capital :	Rs.16.304 Millions
CIN No.: [Company Identification No.]	U51395DL2003PTC121932
TAN No.: [Tax Deduction & Collection Account No.]	DELI03975G
PAN No.: [Permanent Account No.]	AABCI1382D
Legal Form :	Private Limited Liability Company
Line of Business :	Importer and Trader of Rechargeable Batteries, Digital Video and Other Electronics Products.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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 but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Trade relations are 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.

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.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BB- (Long Term Rating)
Rating Explanation	Moderate risk of default.
Date	September 20, 2012

Rating Agency Name	CRISIL
Rating	A4+ (Short Term Rating)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	September 20, 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. Ashok.
Designation :	Manager
Contact No.:	91-11-47074499
Date :	03.09.2013

LOCATIONS

Registered Office :	704, 7^th Floor, Ring Road Mall, Sector – 3, Rohini, Delhi – 110 085, India
Tel. No.:	91-11-47074499/ 47074444/ 47074400
Mobile No.:	91-9910084047 (Mr. Rahul Baid)
Fax No.:	91-11-47074444/ 47074499
E-Mail :	info@imsmercantiles.in rahul.baid.07@gmail.com
Website :	www.imsmercantiles.in
Area :	1800 sq ft
Location :	Owned
Branch Office :	Located at: Mumbai Kolkata Jaipur

DIRECTORS

As on: 27.09.2012

Name :

Mr. Amit Kumar Saraf

Designation :

Director

Address :

D-153, Antriksh Apartment, Sector-14, Rohini, Delhi – 110 085, India

Date of Birth/Age :

03.09.1979

Date of Appointment :

26.08.2003

DIN No.:

00450475

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51395DL2003PTC121932	IMS MERCANTILES PRIVATE LIMITED	Director	26/08/2003	26/08/2003	-	Active	NO
2	U45201DL2006PTC145298	I M S BUILDERS AND DEVELOPERS PRIVATE LIMITED	Director	30/06/2007	06/06/2007	-	Active	NO
3	U70101DL2006PTC148808	IMS PROMOTERS AND DEVELOPERS PRIVATE LIMITED	Director	19/08/2009	19/08/2009	-	Active	NO

Name :

Ms. Anita Saraf

Designation :

Director

Address :

C-109, Antriksh Apartment, Sector-14, Rohini, Delhi – 110 085, India

Date of Birth/Age :

22.10.1969

Date of Appointment :

05.11.2008

DIN No.:

02403194

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51395DL2003PTC121932	IMS MERCANTILES PRIVATE LIMITED	Director	05/11/2008	05/11/2008	-	Active	NO
2	U45201DL2006PTC145298	I M S BUILDERS AND DEVELOPERS PRIVATE LIMITED	Director	29/09/2010	19/11/2008	-	Active	NO
3	U70101DL2006PTC148808	IMS PROMOTERS AND DEVELOPERS PRIVATE LIMITED	Director	29/09/2009	19/11/2008	-	Active	NO

Name :

Mr. Deepak Saraf

Designation :

Director

Address :

D-153, Antriksh Apartment, Sector-14, Rohini, Delhi – 110 085, India

Date of Birth/Age :

16.03.1983

Date of Appointment :

26.06.2006

DIN No.:

01055425

KEY EXECUTIVES

Name :	Mr. Ashok.
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 27.09.2012

Names of Shareholders	No. of Shares
Amit Saraf	326420
Deepak Saraf	114210
Vijay Saraf Karta of M/s Vijay Amit and Deepak HUF	31000
Vijay Saraf Karta of M/s Vijay Kusum and Deepak HUF	31000
Anita Saraf	596520
Shalu Saraf	59500
Simi Saraf	73000
Swati Saraf	11700
Megha Saraf	59250
Vijay Saraf	56000
Savita Bansal	94000
Suresh Bansal	75000
Kusum Lata Sharaf	52000
Ankit Sharaf	50750
Total	1630350

Equity Share Break up (Percentage of Total Equity)

As on: 27.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Importer and Trader of Rechargeable Batteries, Digital Video and Other Electronics Products.
Imports :
Products :	Electronic Products
Countries :	Hong Kong China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

100 (Approximately)

Bankers :

• State Bank of Mysore, Industrial Finance Branch, 23/1, Regal Building, Connaught Place, New Delhi – 110001, India
• Standard Chartered Bank, Netaji Subhash Marg Branch
• State Bank of Mysore, Industrial Finance Branch, 15-17, Shaheed Bhagat Singh Marg, New Gole Market, New Delhi – 110001, India
• Oriental Bank of Commerce, I.U. Block, Pitampura, Delhi – 110088, India
• Axis Bank Limited, 4/10, OPG House, Asaf Ali Road, New Delhi - 110002, India
• ICICI Bank Limited
• Kotak Mahindra Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
TERM LOANS
FROM BANKS
Vehicle Loans From Banks (Fully Secured against hypothecation of vehicle)	2.544	3.610
SHORT TERM BORROWINGS
Cash credit with Axis Bank Limited (Fully Secured against Hypothecation of Stocks and book Debts) (Personally guaranteed by Directors)	67.296	33.396
Total	69.840	37.006

Banking Relations :	--
Auditors :
Name :	Bansal Surinder and Company Chartered Accountants
Address :	201/8, Sushma Tower, Central Market, D-Block, Prashant Vihar, Delhi – 110085, India
PAN No.:	AADPB3505C
Sister Concern :	IMS Builders and Developers Limited

CAPITAL STRUCTURE

As on: 27.09.2012

Authorised Capital : Rs.25.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.18.794 Millions

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1630350	Equity Shares	Rs.10/- each	Rs.16.304 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	16.304	14.104
(b) Reserves & Surplus	29.771	23.278
(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)	46.075	37.382
(3) Non-Current Liabilities
(a) long-term borrowings	14.623	14.586
(b) Deferred tax liabilities (Net)	1.169	0.898
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	15.792	15.484
(4) Current Liabilities
(a) Short term borrowings	67.296	33.397
(b) Trade payables	22.254	31.054
(c) Other current liabilities	7.178	3.062
(d) Short-term provisions	4.413	5.505
Total Current Liabilities (4)	101.141	73.018
TOTAL	163.008	125.884
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	18.693	17.780
(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	0.094	0.094
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	1.504	1.325
Total Non-Current Assets	20.291	19.199
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	90.378	60.170
(c) Trade receivables	36.408	33.589
(d) Cash and cash equivalents	6.391	8.196
(e) Short-term loans and advances	5.903	2.348
(f) Other current assets	3.637	2.382
Total Current Assets	142.717	106.685
TOTAL	163.008	125.884

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		12.001
2] Share Application Money		1.959
3] Reserves & Surplus		16.254
4] (Accumulated Losses)		0.000
NETWORTH		30.214
LOAN FUNDS
1] Secured Loans		23.232
2] Unsecured Loans		7.219
TOTAL BORROWING		30.451
DEFERRED TAX LIABILITIES		0.556
TOTAL		61.221
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.854
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	64.562
	Sundry Debtors	20.265
	Cash & Bank Balances	10.437
	Other Current Assets	0.632
	Loans & Advances	4.560
Total Current Assets		100.456
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors & Other Current Liabilities	47.986
	Provisions	2.103
Total Current Liabilities		50.089
Net Current Assets		50.367
MISCELLANEOUS EXPENSES		0.000
TOTAL		61.221

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	282.045	270.238	202.075
		Other Income	NA	NA	5.146
		TOTAL	NA	NA	207.221
Less	EXPENSES
		Cost of Goods Sold			122.102
		CHA Charges			3.653
		Job Work Charges			1.948
		Custom Duty			24.748
		Packing Charges			2.375
		Advertisement & Publicity			1.809
		Carriage			2.666
		Commission A/c			6.820
		Director's Remuneration			1.965
		Marketing & Distribution Expenses			1.959
		Salary			9.560
		Sales Promotion Expenses			4.295
		Traveling & Daily Allowance			5.351
		Other Expenses			12.769
		TOTAL	NA	NA	202.020
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7.408	8.135	5.201
Less/ Add	DEPRECIATION/ AMORTISATION		1.164	0.973	0.692
	PROFIT BEFORE TAX		6.244	7.162	4.509
Less	TAX		1.951	2.224	1.404
	PROFIT AFTER TAX		4.293	4.922	3.105
	TOTAL IMPORT		103.884	101.636	NA
	Earnings Per Share (Rs.)		2.63	3.49	2.59

Particulars	31.03.2013
Sales Turnover (Approximately)	350.000

Expected Sales (2013-2014): Rs.400.000 Millions

The above information has been parted by Mr. Ashok

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	1.50
Net Profit Margin (PBT/Sales)	(%)	2.21	2.65	2.23
Return on Total Assets (PBT/Total Assets}	(%)	3.83	5.69	4.05
Return on Investment (ROI) (PBT/Networth)		0.14	0.19	0.15
Debt Equity Ratio (Total Debt/Networth)		1.78	1.28	1.01
Current Ratio (Current Asset/Current Liability)		1.41	1.46	2.01

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 four 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	No
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

Note:

The registered office address of the company has been shifted from A–16, 2^nd Floor, Saraswati Vihar, Outer Ring Road, Pitampura, Delhi – 110 034, India to present w.e.f. 01.05.2010.

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Loans From Directors, Friends and Relatives	12.079	10.977
Total	12.079	10.977

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10330299	09/04/2013 *	146,500,000.00	AXIS BANK LIMITED	2ND FLOOR, STATESMAN HOUSE, 148, BARAKHAMBA ROAD,  NEW DELHI, DELHI - 110001, INDIA	B75133082

* Date of charge modification

FIXED ASSETS

Tangible Assets

• Air Conditioner
• Building
• Furniture and Fixtures
• Vehicles (Cars)
• Cycle
• Vehicles (Tempo)
• Office Equipment
• Computer
• EPABX and Telephone Instruments

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.62.24
UK Pound	1	Rs.99.90
Euro	1	Rs.84.23

INFORMATION DETAILS

Information Gathered by :	PLV
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.