MIRA INFORM REPORT

Report Date :

18.08.2011

IDENTIFICATION DETAILS

Name :	SPACE WOOD FURNISHERS PRIVATE LIMITED
Registered Office :	T-48, MIDC, Hingna Road, Nagpur – 440 016, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	18.06.1996
Com. Reg. No.:	11-100296
Capital Investment / Paid-up Capital :	Rs.22.043 millions
CIN No.: [Company Identification No.]	U36100MH1996PTC100296
TAN No.: [Tax Deduction & Collection Account No.]	NGPS01638A
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Wood Furniture Components
No. of Employees :	400 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 560000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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.

INFORMATION PARTED BY

Name :	Mr. Makrand
Designation :	General Manager (Finance and Accounts)
Contact No.:	91-8007772459
Date :	17.08.2011

LOCATIONS

Registered Office/Head Office :	T-48, MIDC, Hingna Road, Nagpur – 440 016, Maharashtra, India
Tel. No.:	91 – 7104 - 324780 / 324781 / 234858 / 234857 / 235968
Fax No.:	91 – 7104 – 232139
E-Mail :	info@spacewood.in makrand@spacewood.in
Website :	http://www.spacewood.in
Area :	15000 acres
Location :	Leased
Branch Office :	Mumbai 101, Trimbak Sadan, 1st Floor, 5th Ajmal Road, Vile Parle (East), Mumbai – 400 057, Maharashtra Tel. No.: 91-22-26112342 Bangalore No.507, 5th Floor, Brigade Tower, No.135, Brigade Road, Bangalore –560 025, Karnataka Tel. No.: 91-80-22485915 Delhi 310, 38 – Ansal Tower, Nehru Place, New Delhi – 110019, India Tel -: 91 - 011 - 26210167 Fax-: 91 - 011 - 26210168

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Kirit Sharad Joshi
Designation :	Director
Address :	23, Trayambakeshwar, Near Dr. Choudhary’s House, New Verma Layout, Nagpur – 440 033, Maharashtra
Date of Birth/Age :	20.10.1970
Qualification :	BE (Mech.)
Experience :	18 years
Date of Appointment :	09.07.1996
Name :	Mr. Vivek Moreshwar Deshpande
Designation :	Director
Address :	“Madhav”, 67 A, Shivaji Nagar,, Nagpur – 440 010, Maharashtra
Date of Birth/Age :	14.11.1970
Qualification :	BE (Mech.)
Experience :	18 years
Date of Appointment :	18.06.1996

KEY EXECUTIVES

Name :	Mr. Makrand
Designation :	General Manager (Finance and Accountant)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Kirit Sharad Joshi	1298138
Vivek Moreshwar Deshpande	1389938
Joshi T Sharad	196350
Vidya Joshi	119532
Usha Deshpande	27412
Ratna Joshi	39205
Varsha Deshpande	235875
Total	3306450

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Wood Furniture Components

Products :

Products Description	Item Code No.
Wood Furniture Components	279.9

· Kitchen Carcass from China

· High Gloss Laquer doors for Kitchen Cabinets

· Bedroom and Living Room Furniture

· Office Furniture

Exports :

Products :

Wooden Furniture

Countries :

· Dubai

· Bahrain

Imports :

Products :

Boards

Countries :

· Malaysia

· Australia

· Switzerland

· Thailand

Terms :

Selling :

L/C, TT

Purchasing :

L/C, TT

GENERAL INFORMATION

Customers :

OEM’s and Big Corporates

No. of Employees :

400 (Approximately)

Bankers :

· Union Bank of India,

Shriman Commercial Complex, Dhantoli, Nagpur - 440 012, Maharashtra, India

· State Bank of India

· Kotak Mahindra Bank

· Corporation Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Working capitals
From Banks
Rupee Loan
- Union Bank of India - C/C A/C No. 366005010000307	153.537	71.672
- Corporation Bank O/D A/c	10.132	0.000
From Financial Institutions
- SBI Factors and Comm. Serv. Private Limited	69.436	60.590
Term Loans
From Bank
- Union Bank of India HIE – Term Loan 366006110003339	0.000	3.867
- Union Bank of India HIE – Term Loan 366006110003340	0.514	6.174
- Union Bank of India HIE – Term Loan 366006110003341	70.68	76.197
Vehicles Loan
- Corporation Bank	0.330	0.590
- Union Bank of India 562606520000328	0.049	0.196
- Union Bank of India 562606520000329	0.024	0.096
- Union Bank of India 562606520000330	0.173	0.669
b) From Financial Institutions
Loan Against LIC Policies
- LIC Loan A/C P.No. 975001834	10.230	6.897
- LIC Loan A/C P.No. 975001836	10.231	6.403
- LIC Loan A/C P.No. 97498055	33.183	23.990
- LIC Loan A/C P.No. 97498056	33.184	23.990
- LIC Loan A/C P.No. 971244377	7.042	5.699
- LIC Loan A/C P.No.974599934	0.000	20.241
- LIC Loan A/C P.No.974599766	23.745	20.241
- LIC Loan A/C P.No.971244378	7.042	5.699
Vehicles Loan
Kotak Mahindra Bank Primus Limited	0.024	0.092
Total	429.575	333.308

NOTE:

a) Working Capital:

From Banks: Working Capital is secured by first and exclusive charge on the current assets of the company, excluding BD’s those are specially charged for factoring banks. It is collaterally secured with extension of the first charge on company’s Land and Building, Plant and Machinery, at Plot No. T-48, and N-6,7 MIDC, Nagpur

From Financial institution: Is secured by assignment of debtors and personal guarantee of the promoter-directors. It is collaterally secured by second charge on the fixed assets of the company.

b) Term Loan:

Term loan on machinery is secured by first charge on the entire Fixed Asset of the Company.

Loan against insurance policies are secured by lien on various Keyman LIC policies.

Term Loan for Vehicles are secured by hypothetication of vehicles.

C) Non Fund based limits:

Non Fund Based limits are secured by first and exclusive charge on the entire C.A procured out of the NFB exposure and pledge of FDR’s kept as margin duly discharged by company.

Amount repayable within one year Rs.21.114 Millions

Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Directors
Kirit Joshi	20.925	20.925
Vivek Deshpande	20.925	20.925
From others
Sales Tax Deferral (1999-2009)	11.656	11.656
Sales Tax Deferral (2003-2013)	16.676	16.676
Total	70.182	70.182

Banking Relations :	--
Auditors :
Name :	C N Patel and Company Chartered Accountants
Address :	Gani Sons Charitable Trust Building, residency Road, Sadar, Nagpur – 440 001, Maharashtra
Tel. No.:	91-712-2584800/2584082
E-Mail :	cnpca@rediffmail.com
Associates:	· Space Wood Office Solution Private Limited (Previously Known as I3 Space Systems India Private Limited ) · Spacewood Hong Kong Limited · Spacewood Nest Private Limited · Platinum Business India Private Limited. (Earlier Spacewood Exports Private Limited)

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3306450	Equity Shares	Rs.10/- each	Rs.33.065 Millions

Authorised Capital:

Issued, Subscribed & Paid-up Capital:

AS ON 31.03.2010

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
2204300	Equity Shares	Rs.10/- each	Rs.22.043 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		22.043	19.601	19.601
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		136.319	121.285	100.840
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		158.362	140.886	120.441
LOAN FUNDS
1] Secured Loans		429.575	333.308	332.312
2] Unsecured Loans		70.182	70.182	28.332
TOTAL BORROWING		499.757	403.490	360.644
DEFERRED TAX LIABILITIES		7.174	8.137	8.338
TOTAL		665.293	552.513	489.423
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		156.021	167.905	138.450
Capital work-in-progress		24.806	16.771	15.104
INVESTMENT		2.580	1.955	0.080
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	216.247	182.098	115.419
	Sundry Debtors	371.267	274.122	332.797
	Cash & Bank Balances	29.904	19.801	24.207
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	96.640	68.539	76.232
Total Current Assets		714.058	544.560	548.655
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	197.785	160.544	190.347
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	34.387	18.134	22.519
Total Current Liabilities		232.172	178.678	212.866
Net Current Assets		481.886	365.882	335.789
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		665.293	552.513	489.423

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		TOTAL	1185.790	1146.901	1011.684
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT BEFORE TAX		27.441	32.056	60.070
Less	TAX		9.829	9.317	15.900
	PROFIT AFTER TAX		17.612	22.739	44.160
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		80.421	68.761	NA
Less	APPROPRIATIONS
		Transfer to General Reserve	2.000	2.000	2.000
		Transfer to Foreign Currency Transaction Reserve	(3.282)	6.785	0.000
		Proposed Dividend	2.204	1.960	1.960
		Tax on Dividend	0.374	0.333	0.333
	BALANCE CARRIED TO THE B/S		96.738	80.421	68.761
	EARNINGS IN FOREIGN CURRENCY		35.410	21.659	21.634
	IMPORTS
		Capital Goods	1.225	22.547	23.160
		Raw Materials	400.677	420.487	296.476
	TOTAL IMPORTS		401.902	443.034	319.636
	Earnings Per Share (Rs.)		10.55	11.60	--

Particulars	31.03.2011
Sales Turnover (Approximately)	1400.000

The above information has been parted by Mr. Makrand.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.49	2.001	4.37
Return on Total Assets (PBT/Total Assets}	(%)	31.54	4.49	8.74
Return on Investment (ROI) (PBT/Networth)		0.17	0.23	0.49
Debt Equity Ratio (Total Liability/Networth)		4.62	4.13	4.76
Current Ratio (Current Asset/Current Liability)		3.08	3.06	2.58

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2010	31.03.2009	31.03.2008
	(RS. IN MILLIONS)
Sundry Creditors
- Creditors for Purchases	123.034	127.357	140.360
- Creditors for Others	74.751	33.187	49.987
Total	197.785	160.544	190.347

NOTE:

Registered office of the company has been shifted from N-6, MIDC, Hingna, Nagpur – 440 016, Maharashtra, India to the present address w.e.f.19.11.2009.

TRADE REFERENCE:

· Home Town (Future Group)

· Reliance Home Store Limited

Bankers Charges Report as per Registry

Corporate identity number of the company	U36100MH1996PTC100296
Name of the company	SPACE WOOD FURNISHERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	T-48, MIDC, Hingna Road, Nagpur – 440 016, Maharashtra, India
This form is for	Modification of charge
Charge identification number of the modified	10123805
Type of charge	Book Debts Movable Property Floating Charge Immovable Property
Particular of charge holder	Union Bank of India, Shriman Commercial Complex, Dhantoli, Nagpur - 440 012, Maharashtra E-mail: cbsdhantoli@unionbankofindia.com
Nature of description of the instrument creating or modifying the charge	Hypothecation agreement of goods and debts (sd-06), letter of continuity (ad-09), supplementary deed to sd-20 hypothecation deed [sd-20 (s)], term loan agreement (sd-19), memorandum of entry
Date of instrument Creating the charge	25.03.2010
Amount secured by the charge	Rs.484.400 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 1) Cash -Credit (Hypo) - 12.25% Per Annum. 2) Term Loan I - 12.25% Per Annum. 3) Term Loan II - 12.25% Per Annum. 4) Term Loan III -12.25% Per Annum. Terms of Repayment Cash Credit Limit : Repayable on Demand Term Loan II: - Is Repayable by Monthly Installment of Rs. 0.515 Millions Term Loan III: - Is Repayable by Monthly Installment of Rs.1.667 Millions Margin Cash Credit Limit:- 25% on Stock and 35% on Book Debts. Term Loan I, Ii and Iii :- 25% (As Per Old Agreement) Extent and Operation of the charge Charge is created on all that piece and parcel of land known as plot no t-48 adm 24103.75 sq. Mt. and plot no. N-7, adm 2100 sq. Mt. and plot no. N-6 adm 2100 sq. Mt. Together construction standing thereon in the nagpur indust area within the village limits of Nildoh and outside the limits of Nagpur Municipal Corporation, Tal and Registration Sub-Dist- Hingna and Dist -Nagpur and raw materials, semi finished / finished goods and book debts and machinery to secure repayment principal, interest and other outstanding.
Short particulars of the property charged	Plot No. T-48 Adm 24103.75 Sq. Mtrs. In the Nagpur Industrial Area Within the Village Limits of Nildoh and Outside The Limits of Nagpur Municipal Corporation, Taluka and Registration Sub-Dist- Hingna. Plot No. N-7, Admeasuring 2100 Sq. Mtrs. Together With Constructed Shed Admeasuring 250.00 Sq. Mtrs In The Nagpur Industrial Area Within The Village Limits of Nildoh and Outside The Limits of Nagpur Munc Plot No. N-6 Admeasuring 2100 Sq. Mtrs. . In the Nagpur Industrial Area Within the Village Limits of Nildoh and Outside The Limits of Nagpur Muncipal Corporation, Taluka and Registration Sub-Dist- Hingna. Raw Materials, Semi finished / Finished Goods And Book Debts. All The Tangible Movable Machinery and Plant of the borrower together with Spares, Tools and Accessories and Other Movables, both Present and Future at T-48, MIDC Hingna Road, Nagpur
Date of latest modification prior to the present modification	08.09.2009
Particulars of the present modification	Total financial facility is increased from Rs.416.500 Millions to Rs.484.400 Millions, [Cash Credit (hypo)-250.000 Millions, Term Loan-I (takeover)-0.100 Millions. Term loan - I (takeover)-2.600 Millions, term loan -iii (takeover)-76.700 Millions, inland / foreign letter of credit -155.000 Millions.

Fixed Assets:-

· Land

· Factory Building

· Plant and Machinery

· Tools and Equipments

· Office Equipments

· Computers

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 records 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.45.37
UK Pound	1	Rs.74.56
Euro	1	Rs.65.34

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	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		49

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.