MIRA INFORM REPORT

Report Date :

15.06.2012

IDENTIFICATION DETAILS

Name :	DOVETAIL FURNITURE PRIVATE LIMITED
Registered Office :	Block No. 240/B, Bommasandra Industrial Area, Hosur Road, Anekal Taluk, Bangalore – 560099, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.09.1994
Com. Reg. No.:	08-016294
Capital Investment / Paid-up Capital :	Rs.37.389 Millions
CIN No.: [Company Identification No.]	U03610KA1994PTC016294
TAN No.: [Tax Deduction & Collection Account No.]	BLRD00816E
PAN No.: [Permanent Account No.]	AAACD5139N
Legal Form :	Private Limited Liability Company
Line of Business :	Designs, Builds and Delivers Furniture and Fixtures for Retail Spaces, Institution and Homes.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 240000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some cautions.

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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	Block No. 240/B, Bommasandra Industrial Area, Hosur Road, Anekal Taluk, Bangalore – 560099, Karnataka, India
Tel. No.:	91-80-27832430
Fax No.:	91-80-27831516
E-Mail :	sundar@dovetail.in info@dovetail.in sales@dovetail.in
Website:	www.dovetail.in
Design Store :	982, 1^st Floor, 80ft Peripheral Road, Koramangala, Bangalore – 560034, Karnataka, India
Tel. No.:	91-80-25522205/25502470
Fax No.:	91-80-25522205
Website:	www.designstoreonline.com

DIRECTORS

As on 26.09.2011

Name :

Mr. Sundar Subramanian

Designation :

Managing Director

Address :

456, 3^rd Block, Koramangala, Bangalore – 560034, Karnataka, India

Date of Birth/Age :

13.09.1960

Date of Appointment :

22.09.1994

DIN No.:

00506793

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	U36100KA1985PTC006938	Studio Line Interior Systems Private Limited	Whole-time director	28-05-85	28-05-85	Amalgamated	NO
2	U03610KA1994PTC016294	Dovetail Furniture Private Limited	Managing director	22-09-94	22-09-94	Active	NO

Name :

Mr. John Mathew Palliath

Designation :

Director

Address :

Sno. 41, Bhoothanahalli, Banner Ghatta Post, Bangalore – 560083, Karnataka, India

Date of Birth/Age :

24.07.1957

Date of Appointment :

22.09.1994

DIN No.:

01548573

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	U36100KA1985PTC006938	Studio Line Interior Systems Private Limited	Whole-time director	28-05-85	28-05-85	Amalgamated	NO
2	U03610KA1994PTC016294	Dovetail Furniture Private Limited	Director	22-09-94	22-09-94	Active	NO
3	U17100KA2009PTC049417	Ariasphere Textiles India Private Limited	Director	30-03-11	30-03-11	Active	NO

Name :

Mr. Mahendran Balachandran

Designation :

Director

Address :

301- F, Block 3, Raheja Residency, Koramangala, Bangalore – 560034, Karnataka, India

Date of Birth/Age :

04.12.1964

Date of Appointment :

10.12.2007

DIN No.:

00121640

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U72200KA2006PTC038661	Position2 Marketing Private Limited	Director	03-03-06	03-03-06	-	Active	NO
2	U67190KA2006PTC038580	Erasmic Investment Ventures Private Limited	Director	31-03-06	31-03-06	-	Active	NO
3	U72200KA2007PTC041364	Virident Systems Private Limited	Director	03-01-07	03-01-07	-	Active	YES
4	U03610KA1994PTC016294	Dovetail Furniture Private Limited	Director	10-12-07	10-12-07	-	Active	NO
5	U74140KA2007PTC043095	Inbiopro Solutions Private Limited	Nominee director	22-12-07	22-12-07	24-11-10	Active	NO
6	U72900KA2008PTC047489	Accel India Management Company Private Limited	Director	19-08-08	19-08-08	-	Active	NO
7	U73100KA2009PTC051875	Mitra Biotech Private Limited	Director	31-03-10	31-03-10	-	Active	NO
8	U72300DL2007PTC166730	Vinculum Solutions Private Limited	Nominee director	27-10-10	27-10-10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 26.09.2011

Names of Shareholders	No. of Preferences Shares	No. of Equity Shares
Sundar Subramanian	--	668
John Mathew Palliath	--	658
Anand Aurora	--	658
John Mathew Palliath	--	668
Erasmic Ventures Fund Limited, Mauritius	360	1
Total	360	2653

As on 26.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	0.04
Directors or relatives of directors	99.96
Total	100.00

BUSINESS DETAILS

Line of Business :

Designs, Builds and Delivers Furniture and Fixtures for Retail Spaces, Institution and Homes.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Furniture and Parts	94.03

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• Axis Bank Limited, Esquire Centre, No.9, M.G. Road, Bangalore-560001, Karnataka, India
• ICICI Bank

Facilities :

SECURED LOAN	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Term Loan Axis Bank 009010600158275	3.155	7.195
Term Loan 009010600138932 [Against hypothecation of current and fixed assets of the company and collateral security of land provided by Tessaract Design]	0.000	0.169
Axis Bank Limited OD [Against hypothecation of current and fixed assets of the company and collateral security of land provided by Tessaract Design]	22.181	19.895
Mahindra and Mahindra Finance	0.000	0.038
Mahindra and Mahindra Finance Bolero	0.094	0.219
ICICI Bank Bolero [Against hypothecation of vehicles]	0.000	0.034
Total	25.430	27.550
UNSECURED LOAN
From Relatives
P.S. Mathew	0.075	0.075
Total	0.075	0.075

Banking Relations :	--
Auditors :
Name :	Chavan Associates Chartered Accountants
Address :	Khivraj Mansion, 10/2, Kasturba Road, Bangalore-560001, Karnataka, India
Pan No.:	AAHPC2612H

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000	Equity Shares	Rs.100/- each	Rs.0.500 Million
360	Preferences Shares	Rs.103120/- each	Rs.37.123 Millions
	Total		Rs.37.623 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2653	Equity Shares	Rs.100/- each	Rs.0.265 Million
360	Preferences Shares	Rs.103120/- each	Rs.37.123 Millions
	Total		Rs.37.389 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		37.389	37.389	0.265
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		24.870	19.538	34.075
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		62.259	56.927	34.340
LOAN FUNDS
1] Secured Loans		25.430	27.550	36.358
2] Unsecured Loans		0.075	0.075	0.075
TOTAL BORROWING		25.505	27.625	36.433
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		87.764	84.552	70.773
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		39.147	41.319	46.106
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		11.729	15.274	19.547
DEFERREX TAX ASSETS		7.709	7.501	1.788
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.058	12.658	10.785
	Sundry Debtors	42.122	37.327	59.962
	Cash & Bank Balances	1.590	2.049	2.549
	Other Current Assets	0.000	0.000	12.225
	Loans & Advances	12.568	10.435	4.615
Total Current Assets		73.338	62.469	90.136
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	32.767	20.423	32.650
	Other Current Liabilities	11.392	21.588	53.993
	Provisions	0.000	0.000	0.161
Total Current Liabilities		44.159	42.011	86.804
Net Current Assets		29.179	20.458	3.332
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		87.764	84.552	70.773

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	170.275	89.094	227.970
		Other Income	19.129	19.390	17.937
		TOTAL	189.404	108.484	245.907
Less	EXPENSES
		Office Expenses
		Administrative Expenses	178.850	124.024	252.858
		Advertising Expenses
		Financial Expenses
		TOTAL	178.850	124.024	252.858
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		10.554	(15.540)	(6.951)
Less/ Add	DEPRECIATION/ AMORTISATION		4.388	4.821	4.830
	PROFIT / (LOSS) BEFORE TAX		6.166	(20.361)	(11.781)
Less	TAX		0.832	(5.713)	(2.377)
	PROFIT / (LOSS) AFTER TAX		5.334	(14.648)	(9.404)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	1.621	0.000	NA
	Earnings / (Loss) Per Share (Rs.)		1770.33	(4861.60)	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.82	(13.50)	(3.82)
Net Profit Margin (PBT/Sales)	(%)	3.62	(22.85)	(5.17)
Return on Total Assets (PBT/Total Assets}	(%)	5.48	(19.62)	(8.65)
Return on Investment (ROI) (PBT/Networth)		0.10	(0.35)	(0.34)
Debt Equity Ratio (Total Liability/Networth)		1.12	1.22	3.59
Current Ratio (Current Asset/Current Liability)		1.66	1.49	1.04

LOCAL AGENCY FURTHER INFORMATION

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	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
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	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
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

REVIEW OF OPERATIONS:

The gross turnover of the company has almost doubled compared to previous year and has earned profit during the year. The directors are hopeful of good results in the coming year.

FIXED ASSETS:

• Goodwill
• Land
• Building
• Plant and Machinery
• Office Equipment
• Vehicles
• Computer

WEBSITES DETAIL

PROFILE:

Subject was established in 1994 to design, build and deliver furniture and fixtures for retail spaces, schools, institution and homes. The company new includes its sister concern studio line interior systems private limited that was established in 1984 by the same founding group of designers. Subject stands for making good designs happen in the form of well made products that are desirable affordable and usable and participates in the evolutions of design as a collaborator and business partner.

MANAGEMENT:

S. Sundar, Managing Director

Sundar is an alumnus of the National Institute of Design. He specialized in industrial design and graduated in 1984. After working in Wipro R&D briefly, he started Studioline with John Mathew in 1985 and founded Tessaract design, a Design consultancy with 3 others in 1986. Sundar managed the production operations at Studioline and also headed his own design team at Tessaract working on designing products, retail showrooms and institutional workspaces. In 2000, Sundar was appointed as CEO of the group of companies – Tessaract, Dovetail & Studioline and functioned as such till April 2005 when he decided to focus his energies into expanding the furniture business. Sundar brings a unique blend of design sensibilities, production management and overall leadership to the organization.

John Mathew, Director

John is an alumnus of NID, 1982 batch. He specialized in furniture design and set up Studioline in 1985 with Sundar. John heads the furniture design discipline at Shrishti School of Design, Bangalore. He has considerable experience in furniture and interior design and has headed many interior projects for corporates and institutions.

Alka Vernekar, Chief Designer

Alka has worked as a senior designer at Tessaract for 6 years, and was a project head till 2005. She has worked on institutional and retail interiors and understands the requirements. Alka now heads the new design studio at the factory. Her dual qualification of architecture and product design brings a complete design sensibility to the studio.

Bobby Koothur, Country Manager

Bobby come to Dovetail after heading the countrywide operations of Visplay, arguably the best fixture manufacturer in the world. He has also worked with Style Spa as a regional manager. Bobby brings to Dovetail a dynamic and aggressive approach to sales and marketing, seeking to drive the company to realise its true potential as India’s best design plus manufacturing furniture and fixturing company.

Ramesh Gopalakrishnan, Business Head

Ramesh has been the regional sales head for Philips Lighting, followed by stints in Kodak and TVS. He brings a dynamism and focus to build the sales and marketing function that is able to service the clientele and look for new opportunities.

Rakesh Thakur, Senior Manager – Projects

Rakesh is a civil engineer with a background of managing projects for large PMC companies and heads the logistics and installation operations team.

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.55.79
UK Pound	1	Rs.86.37
Euro	1	Rs.70.07

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.