MIRA INFORM REPORT

Report Date :

06.10.2012

IDENTIFICATION DETAILS

Name :	JAIN TIMBER CO PRIVATE LIMITED
Registered Office :	74/1/2, Rajdhani Park, Rohtak Road, Nangloi, New Delhi - 110011
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.04.1991
Com. Reg. No.:	55-044061
Capital Investment / Paid-up Capital :	Rs. 0.930 Million
CIN No.: [Company Identification No.]	U74899DL1991PTC044061
TAN No.: [Tax Deduction & Collection Account No.]	DELJ04939E
PAN No.: [Permanent Account No.]	AAACJ0402E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Timber
No. of Employees :	25 (Approximately)

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 16000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. 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 – 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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

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. Arpit Jain
Designation :	Director
Contact No.:	91-9711267206
Date :	21.09.2012

LOCATIONS

Registered Office :	74/1/2, Rajdhani Park, Rohtak Road, Nangloi, New Delhi-110011, Delhi, India
Tel. No.:	91-11-25476181
Fax No.:	91-11-25189053
E-Mail :	pkjain@jaintimber.com aniljainca82@gmail.com
Website :	www.jaintimber.com
Location :	Owned
Factory :	Gandhidham, Gujarat, India
Branch :	Located at: Ø Delhi

DIRECTORS

AS ON 30.09.2011

Name :

Mr. Pradeep Kumar Jain

Designation :

Director

Address :

208, 1^st Floor, Rajdhani Enclave, New Delhi - 110034, India

Date of Appointment :

01.10.2008

DIN No.:

01481677

Other Directorship:

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	Company/ LLP Status	Defaulting status
1	U74899DL1991PTC043305	MITTAL LUMBER PRIVATE LIMITED	Director	01/04/1992	01/04/1992	Active	NO
2	U74899DL1991PTC044061	JAIN TIMBER COMPANY PRIVATE LIMITED	Director	01/10/2008	01/10/2008	Active	NO

Name :

Mr. Poonam Jain

Designation :

Director

Address :

Shankar Ganj, Hapur, Ghaziabad, Uttar Pradesh, India

Date of Appointment :

01.10.2008

DIN No.:

01135339

Other Directorship:

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	Company/ LLP Status	Defaulting status
1	U74899DL1991PTC043305	MITTAL LUMBER PRIVATE LIMITED	Director	10/07/1991	10/07/1991	Active	NO
2	U74899DL1991PTC044061	JAIN TIMBER COMPANY PRIVATE LIMITED	Director	01/10/2008	01/10/2008	Active	NO

KEY EXECUTIVES

Name :	Mr. Pradeep Kumar Jain
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Pradeep Kumar Jain	36509
Poonam Jain	22860
Arpit Jain	10000
Ankit Jain	23600
Neha Jain	1
Total	92970

AS ON 30.09.2011

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

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Timber
Exports :
Products :	Timber
Countries :	Gulf
Imports :
Products :	Raw Material
Countries :	Ø Nigeria Ø USA Ø Europe Ø Canada
Terms :
Selling :	L/C
Purchasing :	L/C

GENERAL INFORMATION

Customers :

Builders and Packaging Industries

No. of Employees :

25 (Approximately)

Bankers :

Corporation Bank, Nangloi Jat Branch, Najafgarh Road, New Delhi - 110041, India

Facilities :

CC – Rs. 45.000 Millions

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Corporation Bank C/C A/c ( Secured against Stock and Book Debts of the company for Rs.34.000 Millions ( including L/C limits Rs.25.000 Millions ) alongwith the collateral securities of properties of others )	7.811	8.622
Corporation Bank SDL A/c ( Secured Against FDR )	1.103	0.223
Total	8.914	8.845
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors	0.290	1.421
From Shareholders and Directors Relatives	3.306	5.947
From Others	6.032	1.518
Total	9.628	8.886

Banking Relations :	--
Auditors :
Name :	Jain Anil and Company Chartered Accountants
Address :	M-9, Akarshan Bhawan, 4754-57, Ansari Road, 23, Darya Ganj, New Delhi-110002, India
Income-tax PAN of auditor or auditor's firm :	AAHFJ7265P
Memberships :	Small Scale Industries
Sister Concern :	Ø Mittal Timber Private Limited Ø Asco Enterprises

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
400,000	Equity Shares	Rs. 10/- each	Rs. 4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
92,970	Equity Share	Rs.10/- each	Rs. 0.930 Million

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		0.930	0.930	0.930
2] Share Application Money		2.250	0.000	0.000
3] Reserves & Surplus		0.953	0.570	0.233
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		4.133	1.500	1.163
LOAN FUNDS
1] Secured Loans		8.914	8.845	7.058
2] Unsecured Loans		9.628	8.886	9.828
TOTAL BORROWING		18.542	17.731	16.886
DEFERRED TAX LIABILITIES		0.032	0.026	0.000
TOTAL		22.707	19.257	18.049
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.070	1.175	1.062
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	14.459	33.001	14.836
	Sundry Debtors	26.809	18.943	35.371
	Cash & Bank Balances	0.263	0.584	0.114
	Other Current Assets	0.221	0.221	0.221
	Loans & Advances	7.177	2.730	2.515
Total Current Assets		48.929	55.479	53.057
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	9.222	29.675	24.215
	Other Current Liabilities	17.993	7.599	11.707
	Provisions	0.077	0.123	0.148
Total Current Liabilities		27.292	37.397	36.070
Net Current Assets		21.637	18.082	16.987
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		22.707	19.257	18.049

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
SALES
	Income	109.899	96.755	78.803
	Other Income	N.A.	N.A.	N.A.
	TOTAL	N.A.	N.A.	N.A.
EXPENSES		N.A.	N.A.	N.A.
PROFIT BEFORE TAX		N.A.	N.A.	N.A.
TAX		N.A.	N.A.	N.A.
PROFIT AFTER TAX		0.592	0.521	0.412
Earnings Per Share (Rs.)		6.37	5.60	4.43

Particulars	31.03.2012
Sales Turnover (Approximately)	115.000

Expected Sales ( 2012-2013 ) : Rs. 150.000 Millions

The above information has been parted by Mr. Arpit (Director)

KEY RATIOS

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Debt Equity Ratio (Total Liability/Networth)	11.09	36.75	45.53
Current Ratio (Current Asset/Current Liability)	1.79	1.48	1.47

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

FINANCIAL RESULTS AND BUSINESS PROSPECTS:

During the year ended on 31st March 2011 the company has earned before tax Net Profit of Rs.0.592 Million (Previous year Profit of Rs. 0.521 Million. During F.Y 2010-11 the turnover of the company has increased to Rs.109.899 Millions from turnover of Rs. 96.755 Millions achieved during the F.Y.2009-10. The management of the company has decided to import directly to increase its margin and profitability and also optimistic to increase the turnover of the company.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U74899DL1991PTC044061
Name of the company	JAIN TIMBER COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	74/1/2, Rajdhani Park, Rohtak Road, Nangloi, New Delhi-110011, Delhi, India Email ID: pkjain@jaintimber.com
This form is for	Modification of charge
Charge identification number of the modified	10147762
Type of charge	Book Debts Movable Property Others (Stock)
Particular of charge holder	Corporation Bank, Nangloi Jat Branch, New Delhi - 110041, India Email ID: pankajkpc@gmail.com
Nature of description of the instrument creating or modifying the charge	Common deed of hypothecation of movables/assets/debts.
Date of instrument Creating the charge	29.09.2011
Amount secured by the charge	Rs. 55.750 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base Rate +3.10% i.e. 13.75% p.a. subject to revision from time to time applicable to CB5 graded customer. Terms of Repayment CC: Running account repayable on demand subject to Annual renewal. Margin Stock : 20% Book-Debts : 25% Cash Margin : 15% by way of our Bank Deposits. Extent and Operation of the charge Cash Credit : Rs.15.000 Millions LC-Cum-Buyers Credit : Rs.40.000 Millions Term Loan (Vehicles Loan) : Rs. 0.750 Million Others -NA-
Short particulars of the property charged	Hypothecation of Stock consisting of timber logs of various Types and size, Stored at 74/1/2,Rajdhani Park Rohtak Road, Nangloi, Delhi or its factory at Gandhidham, Gujarat or any other place.
Date of latest modification prior to the present modification	20.01.2011
Particulars of the present modification	The limit stands enhanced from Rs. 34.000 millions to Rs. 55.750 millions

FIXED ASSETS

Ø Office Equipment

Ø Machinery

Ø Computer and Printer

Ø Saw Mill

Ø Generator

Ø Working Shed

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. 51.62
UK Pound	1	Rs. 83.57
Euro	1	Rs. 67.17

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	BVA

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	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	YES
--AFFILIATION	YES/NO	YES
--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

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.