MIRA INFORM REPORT

Report Date :

26.09.2011

IDENTIFICATION DETAILS

Name :	SARKAR PLYWOOD PRIVATE LIMITED

Registered Office :	3/2940-48, Subhan Badshah Swadi, Chalamwad Rudtopura, Surat-395003, Gujarat.

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	04.10.1994

Com. Reg. No.:	04-23170

Capital Investment / Paid-up Capital :	Rs.4.613 Millions

CIN No.: [Company Identification No.]	U20291GJ1994PTC023170

TAN No.: [Tax Deduction & Collection Account No.]	SRTS00552G

PAN No.: [Permanent Account No.]	AADCS3414Q

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer, Exporter and Importer of Plywood.

No. of Employees :	More than 50 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 60000

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 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. Krishna
Designation :	Accountant
Contact No.:	91-261-3201352
Date :	19.09.2011

LOCATIONS

Registered Office :	3/2940-48, Subhan Badshah Swadi Chalamwad Rudtopura, Surat-395003, Gujarat, India.
Tel. No.:	91-261-2326693/2325457
Fax No.:	91-261-2325457
E-Mail :	csjariwala@hotmail.com
Website :	http://www.sarkarplywood.com

Corporate Office / Factory :	Shop No. 5, Shiv Pooja Complex, Above Bank of Baroda, City Light, Surat-395007, Gujarat, India
Tel. No.:	91-261-3201352 (9 Lines)
Fax No.:	91-261-2258466

Administrative Office:	302-303, SNS Square, Business Zone, Vesu Main Road, Vesu, Surat-395007, Gujarat, India.
Tel. No.:	91-261-3201352/3201252
Fax No.:	91-261-2215786

DIRECTORS

As on 30.09.2010

Name :

Mr. Iqbal Firoz Sarkar

Designation :

Director

Address :

805, Sterling Apartment, Athwa Lines, Surat-395 007, Gujarat, India

Date of Birth/Age :

18.07.1947

Date of Appointment :

10.04.1994

Din No.:

00912293

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U20291GJ1994PTC023170	SARKAR PLYWOOD PRIVATE LIMITED	Director	04-10-94	04-10-94	Active	NO
2	U65993GJ2008PTC055393	SARKAR HOLDINGS PRIVATE LIMITED	Director	10-11-08	10-11-08	Active	NO
3	U51109GJ2010PTC060012	SARKAR INDUSTRIES PRIVATE LIMITED	Director	26-03-10	26-03-10	Active	NO

Name :

Mr. Adnan Iqbal Sarkar

Designation :

Director

Address :

805, Sterling Apartment, Athwa Lines, Surat-395 007, Gujarat, India

Date of Birth/Age :

29.11.1976

Date of Appointment :

15.12.2000

Din No.:

00912247

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U20291GJ1994PTC023170	SARKAR PLYWOOD PRIVATE LIMITED	Director	15-12-00	15-12-00	Active	NO
2	U65993GJ2008PTC055393	SARKAR HOLDINGS PRIVATE LIMITED	Director	10-11-08	10-11-08	Active	NO
3	U51109GJ2010PTC060012	SARKAR INDUSTRIES PRIVATE LIMITED	Director	26-03-10	26-03-10	Active	NO

Name :

Mr. Hussain Iqbal Sarkar

Designation :

Director

Address :

805, Sterling Apartment, Athwa Lines, Surat-395 007, Gujarat, India

Date of Birth/Age :

01.01.1979

Date of Appointment :

15.12.2000

Din No.:

00915427

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U20291GJ1994PTC023170	SARKAR PLYWOOD PRIVATE LIMITED	Director	15-12-00	15-12-00	Active	NO
2	U65993GJ2008PTC055393	SARKAR HOLDINGS PRIVATE LIMITED	Director	10-11-08	10-11-08	Active	NO
3	U51109GJ2010PTC060012	SARKAR INDUSTRIES PRIVATE LIMITED	Director	26-03-10	26-03-10	Active	NO

KEY EXECUTIVES

Name :	Mr. Krishna
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders		No. of Shares
Iqbal Firoz Sarkar		2260
Rukshana Iqbal Sarkar		459030
Adnan Iqbal Sarkar		10
Husain Iqbal Sarkar		10
Mufaddal Adnan Sarkar		5
Husain Adnan Sarkar		5

Total		461320

As on 30.09.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Plywood.

Products :

Product Description	Item Code
Plywood	4404

GENERAL INFORMATION

No. of Employees :

More than 50 [Approximately]

Bankers :

Oriental Bank of Commerce, Ring Road, Surat, Gujarat, India.
ICICI Bank Limited
HDFC Bank Limited
Citi Bank, NA, 14, Adarsh Society, Opposite Kakadia Complex, Ghod Dod Road, Surat-395007, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
Axis car loan (Elegance Skoda) (Against hypothecation of motor car)	0.224	0.420
HDFC Bank Limited (Super Skoda) (Against hypothecation of motor car)	1.416	1.664
Total	1.640	2.084

Unsecured Loan
Loan form shareholders / directors	1.620	10.435
Total	1.620	10.435


Banking Relations :	--

Auditors :
Name :	C S Jariwala and Company Chartered Accountants
Address :	6^th Floor, C-Block, President Plaza, Ring Road, Athwagate, Surat – 395 002, Gujarat, India
Tel. No.:	91-261-3017171-72-73

CAPITAL STRUCTURE

As on 31.03.2010

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
461320	Equity Shares	Rs.10/- each	Rs.4.613 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		4.613	4.613	4.613
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12.884	8.597	2.882
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		17.497	13.210	7.495
LOAN FUNDS
1] Secured Loans		1.640	2.084	0.778
2] Unsecured Loans		1.620	10.435	10.805
TOTAL BORROWING		3.260	12.519	11.583
DEFERRED TAX LIABILITIES		0.167	0.062	0.000

TOTAL		20.924	25.791	19.078

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		3.021	3.830	1.881
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.050	0.192	0.152
DEFERREX TAX ASSETS		0.000	0.000	0.085

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.230	2.911
	Sundry Debtors	7.875	22.487	10.575
	Cash & Bank Balances	5.422	1.748	5.940
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	21.502	21.540	17.863
Total Current Assets		34.799	46.005	37.289
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	11.438	17.790	17.940
	Other Current Liabilities	3.718	3.506	0.970
	Provisions	1.802	2.953	1.543
Total Current Liabilities		16.958	24.249	20.453
Net Current Assets		17.841	21.756	16.836

MISCELLANEOUS EXPENSES		0.012	0.013	0.124

TOTAL		20.924	25.791	19.078

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	154.562	167.333	151.342
		Other Income	11.941	16.755	9.408
		TOTAL	166.503	184.088	160.750

Less	EXPENSES
		Raw material consumed / purchase	126.687	133.422	119.960
		Sales, administrative and other expenses	32.651	41.013	33.853
		Extraordinary item	(0.055)	0.159	0.239
		TOTAL	159.283	174.594	154.052

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		7.220	9.494	6.698

Less/ Add	DEPRECIATION/ AMORTISATION		1.001	0.679	0.590

	PROFIT BEFORE TAX		6.219	8.815	6.108

Less	TAX		1.932	3.100	3.646

	PROFIT AFTER TAX		4.287	5.715	4.236

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.597	2.882	(1.354)

	BALANCE CARRIED TO THE B/S		12.884	8.597	2.882

	EARNINGS IN FOREIGN CURRENCY
		Plywood Exports	137.415	157.609	151.219
		Film-High Seas	13.112	8.864	0.000
		Faces-High Seas	3.366	0.000	0.000
	TOTAL EARNINGS		153.893	166.473	151.219

	IMPORTS
		Film-Import	12.154	5.768
		Faces-Import	3.684	0.000	NA
		Wood-Import	0.404	0.000
		Plywood-Import	0.000	2.723
	TOTAL IMPORTS		16.242	8.491	NA

	Earnings Per Share (Rs.)		9.29	12.38	9.18

Particulars

31.03.2011

Sales Turnover [Approximately]

220.000

The above information has been parted by Mr. Krishna.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.57	3.10	2.64

Net Profit Margin (PBT/Sales)	(%)	4.02	5.27	4.04

Return on Total Assets (PBT/Total Assets}	(%)	16.44	17.69	15.59

Return on Investment (ROI) (PBT/Networth)		0.35	0.67	0.81

Debt Equity Ratio (Total Liability/Networth)		1.15	2.78	4.27

Current Ratio (Current Asset/Current Liability)		2.05	1.90	1.82

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS:

During the year, the company has earned sales income including export sales of plywood to the tune of Rs.15.456 millions. The financial position of the company for the last two years.

OPERATIONS:

The company has suspended all the manufacturing activities and started trading of the goods. Due to these, the company has made a profit before depreciation and taxation of Rs.7.184 millions and after providing for depreciation and taxation, the company has earned a profit of Rs.4.287 millions during the year.

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U20291GJ1994PTC023170
Name of the company	SARKAR PLYWOOD PVT LTD
Address of the registered office or of the principal place of business in India of the company	3/2940-48, Subhan Badshah Swadi Chalamwad Rudtopura, Surat-395003, Gujarat, India.
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	Citi Bank, NA, 14, Adarsh Society, Opposite Kakadia Complex, Ghod Dod Road, Surat-395007, Gujarat, India
Email	vlaxman@vsnl.com
Nature of description of the instrument creating or modifying the charge	a) Deed of Hypothecation. b) Business Loan Agreement. (Collectively constitute a single charge for Rs.13.500 Millions ).
Date of instrument Creating the charge	08.04.2011
Amount secured by the charge	Rs.13.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest: Annually Renewable Overdraft Facility 12.00% and Packing Credit Facility LIBOR + 200 bps. Terms of Repayment AROD facility shall be payable in 12 months and Packing Credit Facility 6 Months. Margin As may be stipulated by Bank from time to time. Extent and Operation of the charge Hypothecation by way of first exclusive charge on movable assets of the Company as described under Item No.15 below as security for repayment of Rs.13.500 Millions (Comprising : AROD of Rs.9.500 Millions and PC of Rs.4.000 Millions ), together with interest, liquidated damages, costs, charges & expenses and all other moneys due & payable by the Company to the Bank.
Short particulars of the property charged	I) First exclusive charge over the whole of the movable assets of the Company, including any and all stocks, book-debts and receivables, and all other current assets and including plant and machinery. II) Tools, machinery spares, furniture, fixtures, accessories and all other equipment both present and future

Fixed Assets:

Plant and Machinery
Office Equipments
Computer
Motor Car
Furniture

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.49.67
UK Pound	1	Rs.76.50
Euro	1	Rs.66.98

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	YES
--AFFILIATION	YES/NO	NO
--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	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

0.000

0.230

2.911

7.875

22.487

10.575

5.422

1.748

5.940

0.000

0.000

0.000

21.502

21.540

17.863

34.799

46.005

37.289

11.438

17.790

3.718

3.506

0.970

1.802

2.953

1.543

16.958

24.249

20.453

17.841

21.756

16.836

2.57

3.10

4.02

5.27

16.44

17.69

0.35

0.67

1.15

2.78

2.05

1.90

Unit