MIRA INFORM REPORT

Report Date :

23.05.2008

IDENTIFICATION DETAILS

Name :	JK TIMBER IMPEX PRIVATE LIMITED
Registered Office :	H. No. 11-15-17, Doctors Colony, L B Nagar, Hyderabad, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	06.02.2004
Com. Reg. No.:	01-42589
CIN No.: [Company Identification No.]	U20299AP2004PTC042589
IEC No.:	0903015714
TAN No.: [Tax Deduction & Collection Account No.]	HYDJ0266G
PAN No.: [Permanent Account No.]	AABCJ3698K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader, Exporter and Importer of Timber and Plywood Products

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 71100
Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company. Trade relations are fair. Payments are made regularly, as reported. The company can be considered good for normal business dealings.

INFORMATION PARTED BY

Name :	Mr. Yogesh Patel
Designation :	Director
Date :	23.05.2008

LOCATIONS

Registered Office/ Factory :	H. No. 11-15-17, Doctors Colony, L B Nagar, Hyderabad, Andhra Pradesh, India
Tel. No.:	91-40-24031831/ 24038301
Mobile No.:	91-9347031831
Fax No.:	91-40-24031831
E-Mail :	consult_esgee@gmail.com jktimber@jktimber.com yogesh@jktimber.com sunny@jktimber.com
Website :	http://www.jktimber.com
Area :	16000 sq. fts.
Location :	Rented
Factory 1 :	Hedbur Timber Yard, Bangalore, Karnataka, India
Factory 2 :	Vishakhapatnam Dockyard, Andhra Pradesh, India
Branches :	C/o. Srinivas Transport, Customs Bonded Warehouse, Vishakhapatnam, Andhra Pradesh, India
E-Mail :	jagdish@jktimber.com
Area :	25000 sq. ft.
Location :	Rented

DIRECTORS

Name :	Mr. Yogesh Jeevaraj Patel
Designation :	Managing Director
Address :	11-15-17, Doctors Colony, L B Nagar, Hyderabad, Andhra Pradesh, India
Date of Birth/Age :	04.11.1978
Qualification :	Graduate
Experience :	12 Years
Date of Appointment :	06.02.2004
Name :	Mr. Manilal Jeevaraj Patel
Designation :	Director
Address :	11-15-17, Doctors Colony, L B Nagar, Hyderabad, Andhra Pradesh, India
Date of Birth/Age :	19.05.1975
Qualification :	MBA (Finance)
Experience :	7 Years
Date of Appointment :	06.02.2004

KEY EXECUTIVES

Name :	A J Sharma and Associates
Designation :	Company Secretary
Address :	607, Raghava Ratna Towers, Chirag Ali Lane, ABIDS, Hyderabad 500 001, Andhra Pradesh, India
Tel. No. :	91-40-30621357/ 23201357

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.09.2007

Names of Shareholders	No. of Shares
Mr. Jeevraj Patel	105000
Mr. Manilal Patel	267500
Mr. Yogesh Patel	426500
Mrs. Nikita Patel	100000
Mrs. Vanita Patel	100000

As on 30.09.2007

Names of Shareholders	Percentage of Holding
Directors or Relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader, Exporter and Importer of Timber and Plywood Products
Products :	Timber Products African (Ghana) Teak Wood Logs / Square Kapoor Sal Wood Meranti Wood MLH Wood Plywood Rubber Wood Hard Wood Shuttering Ply Water Proof Ply
Exports :
Products :	All Products
Countries :	UAE, Vietnam
Imports :
Products :	Malaysian Timber Logs and African Timber Logs
Countries :	Malaysia, Africa, Burma
Terms :
Selling :	On L/C, Cash and Credit basis
Purchasing :	On L/C upto 180 days basis

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Sawn Timber	CFT	450000 annum	360000 day

GENERAL INFORMATION

Customers :

• Wholesalers
• Retailers
• End Users
• Construction Companies

No. of Employees :

Around 31 [In Office – 8 and In Factory – 19 and In Branch – 4]

Bankers :

Punjab National Bank, Bank Street, Koti, Hyderabad 500 001, Andhra Pradesh, India

Andhra Bank, Dilsukh Nagar, Hyderabad, Andhra Pradesh, India

Facilities :

L/C Limit: Rs. 80.000 millions and CC Limit: Rs. 5.000 millions

Secured Loan

	31.03.2008	31.03.2007
	Rs. In millions
Open Cash Credit Account with Punjab National Bank (secured by hypothecation of stocks and book debts and personal guarantees of directors)	4.096	--
ICICI Bank Current Account (Credit Balance) ICICI Bank Car Loan (hypothecation of car and personal guarantees of directors)	59.817 0.350	-- 0.570
Magna Leasing Limited (hypothecation of car and personal guarantees of directors)	0.360	0.485
Reliance Capital Limited (hypothecation of car and personal guarantees of directors)	1.414	--
Total	66.038	1.055

Banking Relations :	Satisfactory
Auditors :
Name :	Vijayanand and Company Chartered Accountants
Address :	Flat No. 103, D. No. 5-9-796, Pavani Kamal, Gunfoundry, ABIDS, Hyderabad 500 001, Andhra Pradesh, India
Tel. No.:	91-40-66735533
Mobile No.:	91-9440296126
E-Mail :	vssrassociates@hotmail.com
Associates/Subsidiaries :	Krishna Vijay Saw Mill H. No. 11-15-6, Doctors Colony, L B Nagar, Hyderabad500 074, Andhra Pradesh, India -- Line of Business: Timber Processing and Retail Sales Krishna Timber Mart Bagh Amberpet, Hyderabad, Andhra Pradesh, India -- Line of Business: Timber Processing and Retail Sales

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10,00,000	Equity Shares	Rs. 10/- each	Rs. 10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7,50,000	Equity Shares	Rs. 10/- each	Rs, 7.500 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		7.500	7.500	5.000
2] Share Application Money		2.490	2.490	1.540
3] Reserves & Surplus		7.780	2.038	0.468
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		17.770	12.028	7.008
LOAN FUNDS
1] Secured Loans		66.038	1.055	2.328
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		66.038	1.055	2.328
DEFERRED TAX LIABILITIES		0.134	0.068	0.028
TOTAL		83.942	13.151	9.364
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.021	3.013	1.378
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	38.533	19.999	13.759
	Sundry Debtors	104.302	20.198	11.521
	Cash & Bank Balances	7.828	9.900	0.838
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	1.255	0.680	0.434
Total Current Assets		151.918	50.777	26.552
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	73.003	40.651	18.586
	Provisions	0.000	0.000	0.000
Total Current Liabilities		73.003	40.651	18.586
Net Current Assets		78.915	10.126	7.966
MISCELLANEOUS EXPENSES		0.006	0.013	0.020
TOTAL		83.942	13.151	9.364

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		202.329	134.753	48.218
Other Income		18.806	6.911	14.003
Total Income		221.135	141.664	62.221
Profit/(Loss) Before Tax		8.293	2.508	0.751
Provision for Taxation		2.551	0.938	0.412
Profit/(Loss) After Tax		5.742	1.570	0.339
Expenditures :
	Manufacturing Expenses	4.280	2.477	1.434
	Raw Material Consumed	206.184	135.726	59.337
	Financial Charges	2.082	0.773	0.627
	Depreciation & Amortization	0.294	0.179	0.072
Total Expenditure		212.840	139.155	61.470

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	2.59	1.11	0.54
Net Profit Margin (PBT/Sales)	(%)	3.75	1.77	1.20
Return on Total Assets (PBT/Total Assets}	(%)	5.28	4.66	2.69
Return on Investment (ROI) (PBT/Networth)		0.47	0.21	0.10
Debt Equity Ratio (Total Liability/Networth)		8.83	4.47	3.99
Current Ratio (Current Asset/Current Liability)		2.08	1.25	1.42

LOCAL AGENCY FURTHER INFORMATION

TRUSTSEAL ACCEPTANCE CHART

Parameters	Details
Statutory Approvals
Vat/ TIN Registration	28910181651
Name of Bank	Punjab National Bank
Current Account Number	0207008700006585
Account Since	2007
Credibility Factors
IndiaMart Client Since	3 Years
Trade Affiliations
SSI Registration	RGRC0336404
Export Promotion Council	No
Chambers of Commerce Membership	No
D and B D-U-N-S Number	No
Government Recognized Export House Status	No
Other Affiliations	No
Standards and Certifications
Quality Management Systems	No
Environment Management Systems	No
Safety Certificates	No
Product Certificates	No
Other Certificates	No

Trade References:

• Patidar Timber Mart
• Vijayalaxmi Saw Mill
• JK Impex FZE Sharjah, UAE
• Sudima International Pte Limited, Hong Kong
• Hind International Pte Limited, Hong Kong
• JK Impex FZE, Sharjah, UAE

FORM 8

Name of the company

JK TIMBER IMPEX PRIVATE LIMITED

Presented By

Mr. Yogesh Patel, Managing Director

1) Date and description of instrument creating the

change

Copies of – 1. Composite agreement dated 14.06.2004

2. Demand note dated 14.06.2004

3. Security for advances and loans dated 14.06.2004

2) Amount secured by the charge/amount owing on

the securities of charge

Nature of Limit	Amount
OCC	Rs. 1.600 millions
FLCs	Rs. 7.500 millions
Total	Rs. 9.100 millions

3) Short particular of the property charged. If the

property acquired is subject to charge, date of

the acquired of the property should be given

Hypothecation of stocks, book debts and other movables of the company

4) Gist of the terms and conditions and extent and

operation of the charge.

Interest shall be charged @ PLR plus 2% i.e. 12.50% on OCC Account

L/C charges shall be charged as per bank norms

Margins

25% on stocks

50% on book debts

25% on FLCs

Validity

The OCC and FLCs limits shall be valid for one year and these limits will be renewed from time to time

5) Name and Address and description of the

person entitled to the charge.

Andhra Bank

Dilsukhnagar Branch, Hyderabad, Andhra Pradesh, India

6) Date and brief description of instrument

modifying the charge

06.06.2005

Copies of

Composite agreement and demand note dated 06.06.2005

7) Particulars of modifications specifying the terms

and conditions or the extent of operations of the

charge in which modification is made and the

details of the modification.

Nature of facility	Previous	Present
FLCs / DA	Rs. 7.500 millions	Rs. 15.000 millions
Open Cash Credit	Rs. 1.600 millions	Rs. 1.600 millions
Total	Rs. 9.100 millions	Rs. 16.600 millions

Interest shall be charged @ PLR plus 1.50% i.e. 12.00% on OCC Account.

This form is for	Creation of charge
Corporation identity number (CIN) or foreign company registrations number of the company	U20299AP2004PTC042589
Name of the company	JK TIMBER IMPEX PRIVATE LIMITED
Address	11-15-17, Doctors Colony, L B Nagar, Hyderabad, Andhra Pradesh
Type of Charges	Immovable property, book debts, movable property
Whether consortium finance is involved	No
Whether joint charge involved	No
Number of charge holder(s)	1
Particular of the charge holder	Punjab National Bank Bank Street, Hyderabad 500 001, Andhra Pradesh, India
Nature or description of the instrument creating or modifying the charge	Agreement for hypothecation of goods and book debts to secure letter of credit facility. Agreement for hypothecation of movable assets forming part of fixed / block assets Agreement for hypothecation of goods and book debts to secure cash credit facility Sanction letter
Date of the instrument creating charge	03.11.2007
Whether charge created or modified outside India	No
Amount Secure by the charge	Rs. 85.000 millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest: for cash credit facility interest @ BPLR + 1.00% p.a. , 14% p.a. at present subject to revision by ho from time to time. Terms of repayment: repayment should be made as per the terms and conditions of the agreement entered on 03.011.2007 Margin: 25% on inventory and 35% on receivables Extent and operation of the charge: the charge extends and operates on the stocks and receivables all current assets of the company present and future Factory building, plant and machinery, equipment, electrical installations, computers, furniture and fixtures, office equipments, motor vehicles, etc.
Short particulars of the Property charged	The charge extends and operates on the stocks and receivables all current assets of the company present and future Factory building, plant and machinery, equipment, electrical installations, computers, furniture and fixtures, office equipments, motor vehicles, etc.
Whether any of the property or interest therein under reference is not registered in the name of the company	No

Fixed Assets

• Land
• Computers
• Cash Counting Machines
• Motor Bikes
• Vehicles
• Wood Chipping Machine
• Air Conditioners

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 records 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.42.84
UK Pound	1	Rs.84.78
Euro	1	Rs.67.32

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	6
--PROFITABILIRY	1~10	4
--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
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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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