MIRA INFORM REPORT

Report Date :

16.03.2011

DENTIFICATION DETAILS

Name :	LOHIT BOARDS AND PANNELS PRIVATE LIMITED

Registered Office :	101, Golden Arcade, Plot No.141-142, Sector 8, Gandhidham – 370 201, Gujarat

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	05.01.1999

Com. Reg. No.:	04-35261

CIN No.: [Company Identification No.]	U20210GJ1999PTC035261

TAN No.: [Tax Deduction & Collection Account No.]	RKTL00206D

PAN No.: [Permanent Account No.]	AAACL5232E

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Importer of MR/BWR Grade Plywood, Block Boards, Marine Grade Ply, Flush Doors, Flexible Plywood, etc.

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 43000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is a company having moderate track. Financial position of the company is improving. Trade relations are fair. Business is active. Payments are reported to be slow but correct. The company can be considered 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 – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Rajendra Goyal
Designation :	CEO
Contact No.:	91-9811072130

Name :	Mr. Manish Solanki
Designation :	Accounts Manager
Contact No.:	91-9909033262
Date :	09.03.2011

LOCATIONS

Registered Office :	101, Golden Arcade, Plot No.141-142, Sector 8, Gandhidham – 370 201, Gujarat, India
Tel. No. :	91-2836-223670
Mobile No. :	91-9825225677 (Mr. Naresh Goyal)
E-Mail :	kachchhveneerspvtltd@yahoo.co.in
Area :	250 sq.ft.
Location :	Rented

Correspondence Office :	146-73/ 3, Assam Timber Market, Swarn Park, Nangloi, New Delhi – 110 041, India
Tel. No. :	91-11-28344398
Fax No. :	91-11-28342139
Location :	Rented

Factory :	Survey No. 312/1, Part B, Village Nani Charai, Taluka Bhachau – 370014, Gandhidham, Gujarat, India
Area :	7000 sq. yard
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :	Mr. Rajesh Kumar Agarwala
Designation :	Director
Address :	Goyal Bhawan, Muliabari, Digboi – 786 171, Assam, India
Date of Birth/Age :	10.07.1973
Date of Appointment :	05.01.1999

Name :	Mr. Sajjan Kumar Agarwala
Designation :	Director
Address :	Goyal Bhawan, Muliabari, Digboi – 786 171, Assam, India
Date of Birth/Age :	27.05.1964
Date of Appointment :	05.01.1999

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30/09/2010

Names of Shareholders		No. of Shares
Bhim Singh Yadav		15000
Rajesh Maniram Goyal		54700
Twinkle Naresh Goyal		52600
Savitridevi Bajrang Goyal		49910
Geetadevi Sajjan Goyal		45000
Rohatas Kumar Jagatnarayan Khatna		15000
Maniram Dhunichand Agrawal (HUF)		60000
Dharmpal Brijlal Garg		24985
Dharmvir Brijlal Garg		24980
Mahavir Prasad Brijlal Garg		15000
Phusum Lumung Krimhum		17200
Maniram Dhunichand Agrawal (IND)		60000
Sajjan Kumar Goyal		60500
Mukesh Brijlal Garg		4880
Cha Indica Private Limited, Assam		60000
Total		559755

As on 30/09/2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		10.72
Directors or relatives of directors		89.28
Total		100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Importer of MR/BWR Grade Plywood, Block Boards, Marine Grade Ply, Flush Doors, Flexible Plywood, etc.

Products :	MR/BWR Grade Plywood Block Boards Marine Grade Ply Flush Doors Flexible Plywood

Imports :
Products :	Timber
Countries :	Malaysia

Terms :
Purchasing :	Credit (30 days,90 days)

PRODUCTION STATUS (As on 31.03.2008)

Particulars	Unit	Actual Production
Plywood and Block Board	Sq. Mtrs.	184353.68

GENERAL INFORMATION

Suppliers :

Wajilam Exports (Singapore) Private Limited
Mayar (H.K.) Limited
Aashish Trading Company
Aarem Chemicals Private Limited
Adhinath Marine Service Private Limited
A K Formaline (India) Private Limited
Allied Resine and Chemicals Limited
Alvl Packaging Industries
Aman Veneersand Boards
Amjeey Chemicals
Anand Timber Traders
Ankita Enterprise
Arham Trade Link Private Limited
Audit Fee Payble
Balaji Formalin Private Limited
Bharat Timber
Bir Industries
Capital Marketing
B. M. Automarine
Chandan Electric Company
Chandan Electric Store
Darshan Mechnical and Engineering Works
Gc Kapur and Sons
G G Traders
Geb, Bhachau
Ghanshyam Enterprise
Goyal Plyoow Company
Ishotherm Engineers
Kachchh Veneer Private Limited
Kanishka Enterprises
Kanoria Chem. Ind. Limited
Kanoria Chem. and Industries Limited
Karnavati Veneers Private Limited
Katyani Plywood Industries

Customers :

Agarwal Plywood Center
Deco Ply Agency
Delta Marketing
Dolby Plybaords Private Limited
Goyal Timber Traders
Ghael Plywood Agencies
Himanshu Silk Mills Private Limited
Jamshedpur Furnishers
Mohanlal Murarji and Sons
Maharaj Agencies
Orient Enterprise
Perfect Ply Industries
Pregati Hightech Products Private Limited
Popular Timber
Shivam Trading Company
Shubham Entrprise
S. K. Chaturvedi
Suyog Ply and Wood
Shanker Vijay Timber Mart
Shree Rlna Traders
Swami Wood Products
Tlrupatl Tradelinks Private Limited
Unique Marketing
Vishal Traders
Zircon Exports Private Limited

No. of Employees :

Bankers :

Oriental Bank of Commerce, DBZ South 33-34, Gandhidham – 370 201, Gujarat, India
Axis Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Oriental Bank of Commerce C.C A/C (Secured against stock and debtors)	1.957	1.970

Total	1.957	1.970

Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Form Directors, Shareholders
Geeta Devi Goyal	0.300	0.300
Maniram Agarwal (Goyal) HUF	0.698	0.698
Maniram Agarwal (Goyal) IND	0.300	--
Rajesh Goyal	0.311	0.011
Sajjan Kumar Goyal	1.348	1.348
Sajjan Kumar Goyal (HUF)	0.300	--
Tiwinkle Goyal	0.200	0.200

From Others
Body Corporate
Shree Ram Boards and Panel Private Limited	0.356	0.356
Cha Indica Private Limited	0.700	0.700
Long Tong Tea Company	2.200	2.200

Form Others
Navnit Goyal	1.500	--
Suchit Agarwal	0.015	0.015
Zingnu Wood Industries	0.621	0.621

Total	8.849	6.449


Banking Relations :	--

Auditors :
Name :	M. B. Sorathia and Associates Chartered Accountants
Address :	3,4, Ajanta Commercial Centre, Gandhidham – 370 201, Gujarat, India

Sister Concern :	Goyal Timbers

CAPITAL STRUCTURE

AS ON 31.03.2010

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

5,59,755	Equity Shares	Rs.10/- each	Rs. 5.597 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars

31.03.2010

Sales Turnover (Approximately)

72.347

Expected Sales (2010-2011) : Rs. 82.500 Millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		5.598	5.598	4.998
2] Share Application Money		0.000	0.000	3.000
3] Reserves & Surplus		5.204	4.810	2.171
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		10.802	10.408	10.169
LOAN FUNDS
1] Secured Loans		1.957	1.970	2.341
2] Unsecured Loans		8.849	6.449	7.949
TOTAL BORROWING		10.806	8.419	10.290
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		21.608	18.827	20.459

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		4.919	4.665	4.297
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	10.303	2.653	7.075
	Sundry Debtors	24.906	31.263	40.232
	Cash & Bank Balances	6.215	3.489	7.372
	Other Current Assets	0.063	0.021	0.032
	Loans & Advances	1.133	0.988	2.700
Total Current Assets		42.620	38.414	57.411
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.853	22.887	38.217
	Current Liabilities	0.833	1.154	2.551
	Provisions	0.245	0.211	0.481
Total Current Liabilities		25.931	24.252	41.249
Net Current Assets		16.689	14.162	16.162

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		21.608	18.827	20.459

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008
	SALES
		Income	66.426	68.053
		Other Income	0.399	0.099
		TOTAL (A)	66.825	68.152

Less	EXPENSES
		Manufacturer, Administration	59.733	67.828
		Other Expenses	1.477	0.000
		Increase/Decrease in Stock	4.421	(1.059)
		TOTAL (B)	65.631	66.769

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1.194	1.383

Less	FINANCIAL EXPENSES (D)		0.218	0.211

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.976	1.172

Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.541	0.560

	PROFIT BEFORE TAX (E-F) (G)		0.435	0.612

Less	TAX (I)		0.195	0.221

	PROFIT AFTER TAX (G-I) (J)		0.240	0.391

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	--	0.35	0.57

Net Profit Margin (PBT/Sales)	(%)	--	0.65	0.89

Return on Total Assets (PBT/Total Assets}	(%)	--	1.00	0.99

Return on Investment (ROI) (PBT/Networth)		--	0.04	0.06

Debt Equity Ratio (Total Liability/Networth)		3.40	3.13	5.06

Current Ratio (Current Asset/Current Liability)		1.64	1.58	1.39

LOCAL AGENCY FURTHER INFORMATION

Note:

The situation of the registered office of the company was changed from Shop No.4/ 2, Plot No.97/ 3, 3/ 2, N.K. Chambers, Sector 1, Gandhidham – 370 201, Gujarat to the present address w.e.f. 07.09.2007.

Form 8

Corporate identity number of the company

U20210GJ1999PTC035261

Name of the company

LOHIT BOARDS AND PANNELS PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

101, Golden Arcade, Plot No.141-142, Sector 8, Gandhidham – 370 201, Gujarat, India

This form is for

Modification of charge

Type of charge

Immovable property

Particular of charge holder

Name :	Oriental Bank of Commerce
Address :	, DBZ South 33-34, Gandhidham – 370 201, Gujarat, India
Email :	bm0573@obc.co.in

Nature of instrument creating charge

Memorandum of Deposit of Title Deeds

Date of instrument Creating the charge

23.04.2010

Amount secured by the charge

Rs. 95.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

Commission on Letter of credit : As per Bank's Guidelines

ROI on Cash Credit: PLR-0.50% p.a. subject to change from time to time

Terms of Repayment

Cash Credit: Repayable on demand

tenor for LC: DP or DA with 180 days usance

Margin

Margin on Cash Credit: 25%

Margin on LC: 25% in the shape of unencumbered duly discharged CDR alongwith interest accrued thereon

Extent and Operation of the charge

The charge shall operate as first and exclusive charge in favour of the bank to secure the principal amount together with interest, additional interest and all other moneys payable by the company and by M/s KACHCHH VENEERS PRIVATE LIMITED to the Bank

Others

Nil

Particulars of the property charged

Equitable Mortgage of factory land and building at survey no 312/1, paiki Village Nani chirai Taluka Bhachu Dist Kachchh, Gujarat admeauring 14506 sq. mtrs. of M/S KACHCHH VENEERS PVT LTD.

Equitable Mortgage of factory land and building at survey no 313 paiki Village Nani chirai Taluka Bhachu Dist Kachchh in the state of Gujarat standing in the name of COMPANY

Date of instrument modifying the charge

20.01.2010

Particulars of the present modification

The amount secured by the charge is enhanced from Rs 77.000 millions to Rs 95.000 millions comprising of Limit of Rs 50.000 millions and Cash Credit of Rs. 3.000 millions ( Sub Limit of L/C) granted to M/S KACHCHH VENEERS PVT LTD and Rs 45.000 millions and Cash Credit of 5.000 millions ( Sub limit of L/C) granted to the company.

This form is for	Modification of charge
Charge identification number of the modified	80043283
Corporate identity number of the company	U20210GJ1999PTC035261
Name of the company	LOHIT BOARDS AND PANNELS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	101, Golden Arcade, Plot No.141-142, Sector 8, Gandhidham – 370 201, Gujarat, India
Type of charge	Book Debts Others (Plant and Machinery, Stock of Goods)
Particular of charge holder	Oriental Bank of Commerce, DBZ South 33-34, Gandhidham – 370 201, Gujarat, India E-Mail: bm0573@obc.co.in
Nature of description of the instrument creating or modifying the charge	Supplemental Agreement to secure Credit/Loan facility
Date of instrument Creating the charge	26/02/2008
Amount secured by the charge	Rs.27.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Cash Credit Rs.2.000 millions: PLR-1.25% Import LC Rs.25.000 millions: Commission as per HO Guidelines Terms of Repayment: Cash Credit repayable on demand Tenor of the bills not to exceed 180 days Margin: Margin on Cash Credit: 25% on stock, 50% on book debts Margin on Import LC : 25% Extent and Operation of the charge: The charge shall operate as first and exclusive charge in favour of the bank to secure the principal amount together with interest, additional interest and other moneys payable by the company to the bank.
Short particulars of the property charged	Hypothecation of Stock of raw materials, stock in process, finished goods and receivables, book debts of the company. Hypothecation charge over goods in case of LC on DA basis (Documents to be delivered against trust receipt in case of LC on DA basis). Hypothecation Plant and Machinery of the company.
Particulars of the present modification	The amount secured by the charge is enhanced from Rs.7.000 millions to Rs.27.000 millions comprising Cash Credit Limit of Rs.2.000 millions and Import LC of Rs.25.000 millions.

FIXED ASSETS:

Land and Development
Land
Factory Building
Tools and Equipments
Electric Instruments
Plant and Machinery
Furniture and Fixture
Sintex Tank
Staff Quarter
EPABX System

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.45.27
UK Pound	1	Rs.79.94
Euro	1	Rs.63.08

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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.

MIRA INFORM REPORT

10.303

24.906

6.215

0.063

1.133

42.620

24.853

0.833

0.245

25.931

16.689

--

--

--

--

3.40

1.64

Unit