MIRA INFORM REPORT

Report Date :

27.09.2012

1. Summary Information

		Country	India
Company Name	AAKAR INDUSTRIES	Principal Name 1	Mr. Kamal Shah
Status	Satisfactory	Principal Name 2	-
		Registration #	-
Street Address	No.4, Sattanna Naichken Street, Inside Nehru Timber, Choolaimedu Chennai – 600112, Tamilnadu, India
Established Date	1994	SIC Code	--
Telephone#	Not Available	Business Style 1	Manufacturer
Fax #	Not Available	Business Style 2	Exporter
Homepage	Not Available	Product Name 1	Timber l
# of employees	5 (Approximately)	Product Name 2	Laminates
Paid up capital	Not Divulged	Product Name 3	Plywood
Shareholders	-	Banking	Axis Bank
Public Limited Corp.	No	Business Period	18 Years
IPO	No	International Ins.	-
Public Enterprise	No	Rating	Ba (44)
Related Company
Relation	Country	Company Name	CEO
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2012		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	-	Current Liabilities	-
Inventories	-	Long-term Liabilities	-
Fixed Assets	-	Other Liabilities	-
Deferred Assets	-	Total Liabilities	-
Invest& other Assets	-	Retained Earnings	-
		Net Worth	-
Total Assets	-	Total Liab. & Equity	-
Total Assets (Previous Year)	-
P/L Statement as of	31.03.2012		(Unit: Indian Rs.)
Sales	-	Net Profit	--
Sales(Previous yr)	-	Net Profit(Prev.yr)

IDENTIFICATION DETAILS

Name :	AAKAR INDUSTRIES
Registered Office :	No.4, Sattanna Naichken Street, Inside Nehru Timber, Choolaimedu Chennai – 600112, Tamilnadu
Country :	India
Year of Establishment :	1994
Com. Reg. No.:	33440500612
Capital Investment/ Paid-up Capital:	Not Divulged
Legal Form :	Partnership Concern with an Unlimited Liability of the Partners
Line of Business :	Manufacturer, Exporter and Trade in all items especially in timber, laminates, plywood, teak wood and adhesives
No. of Employees:	5 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	-
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct The concern 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 – 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 (GENERAL DETAILS)

Name :	Mr. Kamal Shah
Designation :	Partner
Contact No.:	91-9840009077
Date :	26.09.2012

LOCATIONS

Registered Office/Factory/ Administrative office :	No.4, Sattanna Naichken Street, Inside Nehru Timber, Choolaimedu Chennai – 600112, Tamilnadu, India
Tel. No.:	Not Available
Mobile No.:	91-9840009077 (Mr. Kamal Shah)
Fax No.:	Not Available
E-Mail :	aakarenterprise9@gmail.com

PARTNERS

Name :	Mr. Kamal Shah
Designation :	Partner

And other members of his family but name not divulged

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Trade in all items especially in timber, laminates, plywood, teak wood and adhesives
Imports :
Products :	Wood Adhesives
Terms :
Selling :	Credit (30 Days)
Purchasing :	L/C Credit (30 Days)

GENERAL INFORMATION

Customers :	Wholesalers, Retiles
No. of Employees :	5 (Approximately)
Bankers :	Axis Bank, Chennai – 600001, Tamilnadu, India
Facilities :

Banking Relations :	--
Auditors :	Not Divulged

CAPITAL STRUCTURE

Capital Investment :
Owned :	Not Divulged
Borrowed :	Not Divulged
Total :	Not Divulged

FINANCIAL DATA

[all figures are in Rupees Millions]

Not Divulged

The above information has been denied by Mr. Kamal Shah

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

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	No
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last three years	No
Profitability for last three years	No
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	No
Details of sister concerns	No
Major Suppliers	No
Major Customers	No
Payment Terms	Yes
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	No
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	No
Incorporation details, if applicable	No
Last accounts filed at ROC	No
Major Shareholders, if applicable	No
Date of Birth of Proprietor/Partner/Director, if available	No
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if available	No

PROFILE:

This is a partnership firm. The Managing Partner is Mr. Kamal Shah. The other partner is his wife. The firm was started in the year 1994. They are basically traders of timber and teak. The firm is situated in the Nehru Timber Market. Now we have to say a word or two about the famous Nehru timber Market in Choolaimedu in Chennai. Located by the side of the Central Station and the Jawaharlal Nehru Stadium in the Center of the Chennai city Nehru Timber market is the whole sale market for trading in any type of wood. All the wholesale dealers/traders of wood have a showroom in Choolaimedu and or in the Nehru Timber Market. It is actually a long main and broad road with showroom on either side of the road. Trucks with logs of imported wood or small van with laminates or plywood are seen in plenty here. Aakar enterprises started importing wood and selling them in the domestic market in the early 1990.

They first started to deal in the following products

· Imported Timber

· M.R. Plywood

· B.W.R. Plywood

· Decorative Plywood

· L.V.L.s

· Indian Timber

· Pine Board

· Teak Wood ..

· Mica Laminates

Slowly they added many products to their portfolio and right now they are importing more than 40 products. They are ready to trade in any product that has a market in India. As far as timber was concerned they imported from Myanmar, Belgium, France, Ivory Coast, Nigeria, Ghana, Australia, Cameroon etc. They market was good for wood and they made goof profit. Wanting to diversify they have now added adhesives to their list. They are ready to trade in

(1) C.R, PU. Acrylic Based Adhesives (Based Toluene Free Adhesives)

(2) Water Based Adhesives (Cold Type or Vulcanizing Type)

(3) Newtex Series (Vulcanized Shoe Water Soluble Adhesives)

(4) Special Ink and Enamel

(5) The Adhesives for Construction

They are trying to import the adhesives from Korea for the first time and have sent payment to a big Korean Company. They are expecting stocks any time now. The marketing is looked after by Mr. Kamal Shah. Mr. Kamal Shah is a very dynamic person with years of marketing experience in India. While talking to him he revealed that right now they ark making a foray into the Resin Adhesive market and slowly may be adding more adhesives and used in the Wood, Shoe and Construction Industry

The show room is about 1200 sq.ft. Well stocked with all types of wood and about 5 people are seen working in the showroom. Their godown is situated at the back.

Traders in Chennai since 1994, they are reputed and well known importers of various products. Their turnover is about 50.000 Millions per year and they employ about 5 people, Their bankers are Axis Bank, Chennai 600001. There is no way to assess the financial strength of the firm. Caution advised in all financial transactions with them. Supplies may be made to them against payment. They are importers only. They do not have any export activities. They supply their products to the Indian market.

A medium sized reputed firm

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.53.58
UK Pound	1	Rs.86.60
Euro	1	Rs.68.94

INFORMATION DETAILS

Report Prepared by :

BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--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	NO
--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		44

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.