MIRA INFORM REPORT

Report Date :

18.06.2012

IDENTIFICATION DETAILS

Name :	BHAGAWATI BOARDS PRIVATE LIMITED
Formerly Known As :	MOJI INVESTMENTS PRIVATE LIMITED
Registered Office :	R S No. 1282/2 Unjha-Unava Highway Road, Taluka Sidhhpur, Mehsana, Unjha - 384170, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	31.01.1985
Com. Reg. No.:	04-007612
Capital Investment/ Paid-up Capital:	Rs.10.600 Millions
CIN No.: [Company Identification No.]	U65990GJ1985PTC007612
TAN No.: [Tax Deduction & Collection Account No.]	AHMB01670E
PAN No.: [Permanent Account No.]	AACCM1427E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Film Face Plywood, Block Boards and Flush Door etc.
No. of Employees:	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 74000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be slow. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealing 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 :	R S No. 1282/2 Unjha-Unava Highway Road, Taluka Sidhhpur, Mehsana, Unjha - 384170, Gujarat, India
Tel. No.:	91-2767-254661
Mobile No.:	91-9825019927 (Mr. Mahendrabhai) 91-9825017748 (Mr. Mukeshbhai D. Patel)
Fax No.:	91-2767-254345/ 252547
E-Mail :	irpatel51@gmail.com moti_lam@yahoo.com

DIRECTORS

As on: 30.09.2011

Name :

Mr. Mukeshkumar Dahyalal Patel

Designation :

Director

Address :

1-Jawahar Society, Opposite Dagala, Visnagar, Mehsana – 384315, Gujarat, India

Date of Birth/Age :

27.06.1965

Date of Appointment :

01.02.1993

DIN No.:

00194824

Other Directorships :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U26933GJ1991PTC015133	UMA CERAMICS PRIVATE LIMITED	Director	26-05-92	26-05-92	-	Active	NO
2	U24231GJ1992PTC018273	REVA CHEMICALS AND OIL PRODUCTS PRIVATE LIMITED	Director	10-09-92	10-09-92	-	Active	NO
3	U65990GJ1985PTC007612	BHAGAWATI BOARDS PRIVATE LIMITED	Managing director	01-02-93	01-02-93	-	Active	NO
4	U20211GJ1986PTC009142	PEARL LAMINART PVT LTD	Director	30-09-10	11-01-10	-	Active	NO

Name :

Mr. Ambalal Narottamdas Patel

Designation :

Director

Address :

17-18 Motinagar Society, Gatatri Mandir Road, Visnagar, Mehsana – 384315, Gujarat, India

Date of Birth/Age :

01.03.1943

Date of Appointment :

15.02.1986

DIN No.:

00195104

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2011

Names of Shareholders	No. of Shares
Ambalal Narottamdas Patel	2010
Revabhai Motidas HUF	3750
Gomatiben Maganlal	2300
Puriben Dahyalal	5080
Neetaben Gautamkumar	3000
Manjulaben Mahendrakumar	3200
Alpaben Jitendrakumar	2100
Maniben Narayandas	4630
Gautamkumar Ambalal	2500
Kantilal Revabhai	9125
Jayprakash Narayandas	1300
Mukeshkumar Dahyalal	2000
Amita Bhavinbhai	1500
Sejalben Jayprakash	4250
Jayprakash Narayandas HUF	2500
Narayanbhai Narottamdas HUF	2000
Kantaben Kantilal	6175
Divyaben Somabhai	2000
Bhavinkumar Kantilal HUF	2750
Narottamdas Motidas HUF	24300

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2011

Category	Percentage
Directors or relatives of directors	37.76
Other top fifty shareholders	62.24
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Film Face Plywood, Block Boards and Flush Door etc.

Products :

Product Description	ITC Code
Pre-Laminated Partical	44101190
M.D.F. Boards	4411200, 44111300, 44111400

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	31.03.2011
Licensed Capacity	NA
Installed Capacity	300000 sheets of 8x4 Foot

PRODUCTION STATUS (As on: 31.03.2011)

Particulars	Unit	Actual Production
Pre-Lam Partical Boards	Sq.Mt.	109144
Pre-Lam M.D.F. Boards	Sq.Mt.	73167
Wood Free Pre-Lam	Sq.Mt.	9026

GENERAL INFORMATION

Suppliers :

· Ashpura Forwarders Private Limited

· Sidmark Sales Enterprise Private Limited

· Jaypee Agency

· Multi Scaff India

· Javahar Sales Corporation

· Rushil Decor Limited

· Mahadev Paper Corporation

· Vitrag Association

· Gurudev Chemicals Private Limited

· National Laminates Traders

Customers :

· Bombay Burmah Trading Corporation Limited, Ahmedabad

· Kesar Laminates

· Jagdamba Agency

· Cab Mex

· Devanshih Furniture

· Pooja Plywood

· Shree Manglam

· Metawood Display Systems

· Dencety Modulears Furniture Private Limited

· Bhagawati Enterprise

No. of Employees :

Not Available

Bankers :

· HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel West, Mumbai - 400013, Maharashtra, India

· Dena Bank, Unjha Branch, Unjha – 384170, Gujarat, India

· The Mehsana Urban Cooperative Bank Limited, Unjha Branch, Unjha – 384170, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
From :Mehsana Urban Co-Operative Bank Limited Unjha Branch
(Term Loan Secured Against Hypothecation of Plant and Machinery.)	0.000	6.885
(Cash Credit Loan Against Equitable Mortgage of Property.)	0.000	2.527
(Pledge Credit against Raw Materials of Stock	0.000	2.521
(Term Loan Against Hypothecation of Vehicle)	0.404	0.406
From : HDFC Bank Limited
(Cash credit against Hypothecation of fully paid Stock of Raw material, Finished Goods, Goods-in process and book Debt)	5.671	0.000
(Term Loan Secured Against Hypothecation of Plant and Machinery and equitable mortgage of Factory Building)	5.027	0.000
From : Dena Bank, Unjha Branch
(Cash credit against Hypothecation of fully paid Stock of Raw material, Finished Goods, Goods-in process)	0.000	3.309
Total	11.102	15.648
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
From Directors	0.982	0.765
From Shareholders	23.707	29.665
From Inter Corporate	0.000	1.545
Total	24.689	31.975

Banking Relations :	--
Auditors :
Name :	Vasant S Patel Chartered Accountant
Address :	Behind Modi Market, Near Jawahar Society, Market Yard - Dagala Road, Visnagar – 384315, Gujarat, India
PAN No.:	ABNPP8422D

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
125000	Equity Shares	Rs.100/- each	Rs.12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
106000	Equity Shares	Rs.100/- each	Rs.10.600 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		10.600	10.600	10.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8.014	7.157	5.778
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		18.614	17.757	16.378
LOAN FUNDS
1] Secured Loans		11.102	15.648	19.828
2] Unsecured Loans		24.689	31.975	32.145
TOTAL BORROWING		35.791	47.623	51.973
DEFERRED TAX LIABILITIES		1.392	1.285	0.919
TOTAL		55.797	66.665	69.270
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		22.518	24.736	24.685
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.438	0.438	0.438
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.451	26.934	41.784
	Sundry Debtors	18.356	16.639	13.700
	Cash & Bank Balances	0.180	2.435	1.111
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.300	3.861	5.545
Total Current Assets		39.287	49.869	62.140
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	5.723	7.126	16.448
	Other Current Liabilities	0.628	0.877	1.414
	Provisions	0.095	0.375	0.131
Total Current Liabilities		6.446	8.378	17.993
Net Current Assets		32.841	41.491	44.147
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		55.797	66.665	69.270

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	54.916	61.236	36.603
		Other Income	3.915	2.583	2.452
		TOTAL (A)	58.831	63.819	39.055
Less	EXPENSES
		Cost of Goods Sold	46.419	52.758	34.193
		Power and fuel	0.901	1.186	0.878
		Labour staff salary	0.411	0.369	0.300
		Insurance Expenses	0.160	0.081	0.082
		Other Expenses	8.154	5.915	1.934
		TOTAL (B)	56.045	60.309	37.387
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.786	3.510	1.668
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.822	1.764	1.274
	PROFIT BEFORE TAX (E-F) (G)		0.964	1.746	0.394
Less	TAX (H)		0.107	0.367	0.188
	PROFIT AFTER TAX (G-H) (I)		0.857	1.379	0.206
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6.637	5.258	5.052
	BALANCE CARRIED TO THE B/S		7.494	6.637	5.258
	IMPORTS
		Raw Materials	17.974	11.739	25.515
		Capital Goods	0.000	0.571	1.597
	TOTAL IMPORTS		17.974	12.310	27.112
	Earnings Per Share (Rs.)		8.08	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.46	8.25	0.53
Net Profit Margin (PBT/Sales)	(%)	1.76	2.85	1.08
Return on Total Assets (PBT/Total Assets}	(%)	1.55	2.36	0.45
Return on Investment (ROI) (PBT/Networth)		0.05	0.10	0.02
Debt Equity Ratio (Total Liability/Networth)		2.27	3.15	4.27
Current Ratio (Current Asset/Current Liability)		6.09	5.95	3.56

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	No
Major Suppliers	Yes
Major Customers	Yes
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

OPERATIONS:

The Company has achieved sales of Rs.54.916 Millions which shows decline as compared to earlier year sales. The decline in sales is due to stiff competition in MDF and Pre-Laminated Particle Board. During the year the Company provided a sum of Rs.1.822 Millions by way of depreciation. After the payment of interest to the tune of Rs.4.543 Millions provision of Income tax to the tune of Rs. Nil, addition of provision of deferred tax to the tune of Rs. 0.107 Million, the Net profit comes to Rs.0.857 Million. The aforesaid profit added in the previous year accumulated profits and therefore resultant accumulated profit carried to the Balance Sheet after aforesaid addition comes to Rs.7.494 Millions.

The Company is adopting new marketing strategic lo expand its market and also by introducing new products to its product range designs and also maintaining strict quality control to improve sales and performance of the company.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U65990GJ1985PTC007612
Name of the company	BHAGAWATI BOARDS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	R S No. 1282/2 Unjha-Unava Highway Road, Taluka Sidhhpur, Mehsana, Unjha - 384170, Gujarat, India E-mail: irpatel51@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10250996
Type of charge	Immovable property
Particular of charge holder	HDFC Bank Limited, HDFC Bank Housesenapati Bapat Marg, Lower Parel West, Mumbai - 400013, Maharashtra, India E-mail: RBBform8@hdfcbank.com
Nature of instrument creating charge	Memorandum Recording Past Transactions of Creation of Mortgage by Deposit of Title Deeds.
Date of instrument Creating the charge	17.02.2011
Amount secured by the charge	Rs.36.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment Working Capital facility shall be payable on Demand Term Loan facility shall be repayable in suitable installments. Margin As may be stipulated by the Bank from time to time. Extent and Operation of the charge The Company created an equitable mortgage by way of deposit of title deeds in respect of its immovable properties as stated under item No.15 as security for the due repayment of Rs.36.000 Millions by the Company, including principal amount of the Facility, interest, liquidated damages, costs, charges and expenses etc.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Immovable property being N.A. use land for Commercial Godown use admeasuring about 5351 sq. mtrs., of Block/S.No.1282/1 of Village: Unava with const Immovable property being N.A. use land admeasuring about 2378 sq. mtrs of Block/ S.No.1282/2 paiki of Village: Unava situated within the Panchayat and Revenue are of Unava, Taluka Unjha, District: Mehsana.
Particulars of the present modification	The present modification is for furnishing additional security by way of mortgage of immovable properties of the Company situated at Mehsana, in addition to securities already furnished by the company at the time of creation of the charge and, there is, therefore no change in amount of charge which stands secured at Rs.36.000 Millions in favour of the Bank.

FIXED ASSETS:

· Land

· Building (Old)

· New Building

· Plant and Machinery (Old)

· New Plant and Machinery

· Furniture and Fixture (OId)

· New Furniture and Fixture

· Diase and Mouldes

· Computer

· Frock-Lift

· Vehicle

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.55.76
UK Pound	1	Rs.86.69
Euro	1	Rs.70.44

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
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		27

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.