MIRA INFORM REPORT

Report Date :

21.08.2012

IDENTIFICATION DETAILS

Name :	A K LUMBERS LIMITED
Registered Office :	92/4, WHS Block II, Kirti Nagar, New Delhi – 110015
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.03.2000
Com. Reg. No.:	55-104297
Capital Investment / Paid-up Capital :	Rs.20.533 Millions
CIN No.: [Company Identification No.]	U20120DL2000PLC104297
IEC No.:	0500017166
PAN No.: [Permanent Account No.]	AACCA6546N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing, Processing and Selling of Timber and Wood and related Products.
No. of Employees :	200 (Approximately)

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 150000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. However trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealing 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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: BB-
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligations.
Date	09.08.2011

Rating Agency Name	CRISIL
Rating	Short Term Rating : A4+
Rating Explanation	Having minimal degree of safety regarding timely payments of financial obligation it carry high credit risk and are susceptible of default.
Date	09.08.2011

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. Atul Jindal
Designation :	Director
Contact No.:	91-9810148220
Date :	20.08.2012

LOCATIONS

Registered Office :	92/4, WHS Block II, Kirti Nagar, New Delhi – 110015, India
Tel. No.:	91-11-41421758/ 41421464/ 25462789/ 5458416/ 5470061/ 5474621/ 5481576/ 30929824/ 30972555
Mobile No.:	91-9810148220 (Mr. Atul)
Fax No.:	91-11- 5483874/ 25259157/ 41421360
E-Mail :	jindalak@satyam.net.in info@aklumbers.com padmadinesh@yahoo.com
Website :	http://www.aklumbers.com
Area :	900 Sq. M.
Location :	Owned
Factory :	73/2, Assam Timber Market, Swarn Park, Mundka, Nangloi, New Delhi – 110041, India
Tel. No.:	91-11-28341001/ 5474621/ 5481576/ 5458416/ 28341005
Fax No.:	91-11-28341006/ 5483874
Area :	3000 sq. ft.
Location :	Owned
Factory 2 :	Mithi Rohar, N.H.-8, Kandla Port, Gandhi Dham, Gujarat, India
Tel. No.:	91-2836-309832/ 327055
Fax No.:	91-2836-237341
Factory 3 :	Sony Path, Haryana, India
Tel No.:	91-130-3294777
Branch Office :	Gandhi Dham, Survey No. 237, Chudwa Village, Gandhi Dham, Gujarat, India
Tel No.:	91-2836-32929856

DIRECTORS

(AS ON 27.09.2011)

Name :	Mr. Atul Kumar Jindal
Designation :	Managing Director
Address :	297, Ambica Vihar, Paschim Vihar, New Delhi, India
Date of Birth/Age :	02.09.1969
Date of Appointment :	09.03.2000
PAN No.:	AAJPJ0286A
DIN No.:	01187828
Name :	Mr. Amit Jindal
Designation :	Whole Time Director
Address :	297, Ambica Vihar, Paschim Vihar, New Delhi, India
Date of Birth/Age :	08.02.1973
Date of Appointment :	09.03.2000
PAN No.:	AAIPJ2644K
DIN No.:	01051655
Name :	Mr. Amar Chand Jindal
Designation :	Whole Time Director
Address :	297, Ambica Vihar, Paschim Vihar, New Delhi, India
Date of Birth/Age :	23.08.1942
Date of Appointment :	09.03.2000
PAN No.:	ACTPJ0491R
DIN No.:	01196899
Name :	Ms. Sharda Jindal
Designation :	Director
Address :	297, Ambica Vihar, Paschim Vihar, New Delhi, India
Date of Birth/Age :	02.09.1969
Date of Appointment :	09.03.2000
Pan No.:	AAHPJ5842L
DIN No.:	01051730
Name :	Mr. Prashant Goel
Designation :	Director
Address :	Near Hotel Empire, Plot No.591-D, Ward -98, Bharat Nagar, Gandhidham, Kuth – 370201, Gujarat, India
Date of Birth/Age :	07.07.1975
Date of Appointment :	09.03.2000
Pan No.:	AEGPG6552F
DIN No.:	01327305
Name :	Mrs. Garima Jindal
Designation :	Director
Address :	297, Ambica Vihar, Paschim Vihar, New Delhi, India
Date of Birth/Age :	15.10.1977
Date of Appointment :	01.11.2002
PAN No.:	AAIPJ6399K
DIN No.:	00718102
Name :	Mrs. Rakhi Jindal
Designation :	Director
Address :	297, Ambica Vihar, Paschim Vihar, New Delhi, India
Date of Birth/Age :	21.11.1970
Date of Appointment :	01.01.2006
PAN No.:	AAIPJ2645J
DIN No.:	01051750

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 27.09.2011)

Names of Shareholders	No. of Shares
Atul Jindal	686500
Amit Jindal	360000
Amar Chand Jindal	195000
Sharda Jindal	260500
Prashant Goel	19800
Rakhi Jindal	251000
Garina Jindal	255000
Atul Jindal (HUF)	8500
Neeraj Garg	17000
Total	2053300

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	99.17
Others	0.83
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing, Processing and Selling of Timber and Wood and related Products.
Exports :
Products :	Wood and Wood Products
Countries :	· Gulf Countries · Turkey
Imports :
Products :	Raw Materials
Countries :	· Malaysia · Ghana · USA · Canada · Germany
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Licensed Capacity	Installed Capacity	Actual Production
CFT	NA	NA	427061
RFT	NA	NA	2142998

GENERAL INFORMATION

Suppliers :

· SPF Preaut Lumber

Customers :

Wholesalers and Retailers

· Nagarjuna Construction Company Limited

No. of Employees :

200 (Approximately)

Bankers :

· Oriental Bank of Commerce

F-7, SC-1, Mansarover Garden, New Delhi – 110 015, India

· ICICI Bank

· HDFC Bank

· Axis Bank

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Oriental Bank of Commerce - CC-211 (Both Secured against Hypothecation of Stocks and Book Debts and personal guarantee of directors, equitable mortgage of immovable properties of directors and Company and charge on entire existing/future fixed assets of the company)	60.165	49.764
OBC Car Loan (Tata Safari)	0.000	0.282
OBC Term Loan	1.225	0.567
AXIS Bank Car Loan	0.612	0.950
BMW India Car Loan	0.852	0.000
ICICI Bank Home-Loan	29.570	0.000
HDFC-Hydra Loan-GDM (All Term Loans secured against respective assets on loan and Personal guarantee of Directors)	0.687	0.000
Total	93.111	51.563
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Amar Chand Jindal, New Delhi	3.976	1.333
Pawan Kumar Hotel HUF, Varanasi	1.058	1.495
Gyan Aggarwal- Delhi	0.300	0.000
Total	5.334	2.828

Banking Relations :	--
Auditors :
Name :	Padam Dinesh and Company Chartered Accountants
Address :	11/6-B, IInd Floor, Shanti Chambers, Pusa Road, New Delhi – 110 005, India
Tel. No.:	91-11-25818726/ 27/ 47060111-19
E-Mail :	padamdinesh@yahoo.com
PAN No.:	AAAFP9361P
Other Related Party :	· Jindal Wood Products (Private) Limited Address : 92/4, WHS, Block 2, Kirti Nagar, New Delhi Line of Business: Timber and Allied Products · Punjab Metal Works (Private) Limited · Jindal Bandhu Kasth Bhandar

CAPITAL STRUCTURE

(AS ON 27.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
2100000	Equity Shares	Rs.10/- each	Rs.21.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2053300	Equity Shares	Rs.10/- each	Rs.20.533 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		20.533	20.533	16.533
2] Share Application Money		0.989	0.000	3.000
3] Reserves & Surplus		15.096	12.054	10.267
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		36.618	32.587	29.800
LOAN FUNDS
1] Secured Loans		93.111	51.563	54.717
2] Unsecured Loans		5.334	2.828	2.553
TOTAL BORROWING		98.445	54.391	57.270
DEFERRED TAX LIABILITIES		0.073	0.085	0.099
TOTAL		135.136	87.063	87.168
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		32.036	6.945	3.177
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	70.367	60.825	48.712
	Sundry Debtors	120.895	81.609	80.252
	Cash & Bank Balances	22.171	8.299	7.551
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	20.421	2.177	8.760
Total Current Assets		233.854	152.910	145.275
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	117.329	41.708	52.566
	Other Current Liabilities	11.290	29.401	7.878
	Provisions	2.135	1.683	0.840
Total Current Liabilities		130.754	72.792	61.284
Net Current Assets		103.100	80.118	83.991
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		135.136	87.063	87.168

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	375.872	302.970	207.357
		Other Income	0.661	0.736	0.359
		TOTAL	376.533	303.706	207.716
Less	EXPENSES
		Cost of Goods Sold	346.596	281.347	187.750
		Machinery Running and Maintenance	0.358	0.190	0.124
		Power and Fuel	1.555	0.905	0.657
		Wages and Salary	2.381	1.392	1.299
		Director Remuneration	3.422	2.363	1.868
		Directors Travelling	0.678	0.595	0.575
		Telephone Expenses	0.594	0.595	0.560
		Business Promotion	0.238	0.000	0.000
		Rent	0.429	0.240	0.231
		Other Expenses	14.400	12.415	11.784
		TOTAL	370.651	300.042	204.848
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		5.882	3.664	2.868
Less/ Add	DEPRECIATION/ AMORTISATION		1.415	0.821	0.507
	PROFIT BEFORE TAX		4.467	2.843	2.361
Less	TAX		1.425	1.056	0.825
	PROFIT AFTER TAX		3.042	1.787	1.536
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.054	10.267	8.731
	BALANCE CARRIED TO THE B/S		15.096	12.054	10.267
	EARNINGS IN FOREIGN CURRENCY		0.176	0.584	0.000
	IMPORTS VALUE		233.076	121.536	117.587
	Earnings Per Share (Rs.)		1.48	0.87	0.93

Particulars	31.03.2012
Sales Turnover (Approximately)	380.000

Expected Sales (2012-13): Rs.450.000 Millions

The above information has been parted by Mr. Atul Jindal.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.81	0.59	0.74
Net Profit Margin (PBT/Sales)	(%)	1.19	0.94	1.14
Return on Total Assets (PBT/Total Assets}	(%)	16.80	1.78	1.59
Return on Investment (ROI) (PBT/Networth)		0.12	0.09	0.08
Debt Equity Ratio (Total Liability/Networth)		6.26	3.90	3.98
Current Ratio (Current Asset/Current Liability)		1.79	2.10	2.37

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	Yes
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 three 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	Yes
18]	Major customers	Yes
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

TRADE REFERENCE:

· Nagarjuna Construction Company Limited

· SPF Preaut Lumber

CONTINGENT LIABILITIES

Particulars	31.03.2011	31.03.2010
	(Rs. In Millions)
(a) corporate guarantee incurred by the company for various credit facilities availed by its group company:
(i) M/s Jindal Wood Products (Private) Limited	240.000	120.000
(ii) M/s Punjab Metal Works Private Limited	75.000	54.500
b) Bank Guarantee (B/G) :	0.000	0.800
Less : Margin Money 15%	0.000	0.120
Net Contingent Liability	0.000	0.680
Letter of Credit (L/C) :	0.000	3.296
Less : Margin Money 15%	0.000	0.494
Net Contingent Liability	0.000	2.802

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	10276233
Corporate identity number of the company	U20120DL2000PLC104297
Name of the company	A K LUMBERS LIMITED
Address of the registered office or of the principal place of business in India of the company	92/4 WHS Block II, Kirti Nagar, New Delhi – 110015, India padamdinesh@yahoo.com
Type of charge	Movable Property Others : Corporate Guarantee
Particular of charge holder	Oriental Bank of Commerce Limited Mansarover Garden, New Delhi – 110015, India bm0903@obc.co.in
Nature of description of the instrument creating or modifying the charge	Loan Doc-11 Agreement of guarantee
Date of instrument Creating the charge	09/09/2011
Amount secured by the charge	Rs.155.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest N.A. Terms of Repayment On Demand Margin N.A. Extent and Operation of the charge N.A. Others N.A.
Short particulars of the property charged	Corporate Guarantee in favour of Punjab Metal Works Private Limited. Charge over all existing and future fixed assets of the company.
Date of latest modification prior to the present modification	04/03/2011
Particulars of the present modification	Corporate Guarantee in favour of Punjab Metal Works Private Limited, enhanced by Rs.80.000 Millions i.e from Rs.75.000 Millions to Rs.155.000 Millions

FIXED ASSETS:

· Plant and Machinery

· Generator

· Electric Installation and Materials

· Office Equipment

· Air Conditioner

· Furniture and Fixture

· Hydraulic Mobile Crane

· Computer

· Printer

· Motor Cycle

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.55.70
UK Pound	1	Rs.87.55
Euro	1	Rs.68.85

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--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.