MIRA INFORM REPORT

Report Date :

28.09.2012

IDENTIFICATION DETAILS

Name :	L.M. ENGINEERING MACHINERY COMPANY PRIVATE LIMITED
Registered Office :	321, Lake Town, Block A, Kolkata – 700089, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.06.2010
Com. Reg. No.:	21-150128
Capital Investment / Paid-up Capital :	Rs.4.470 Millions
CIN No.: [Company Identification No.]	U31908WB2010PTC150128
TAN No.: [Tax Deduction & Collection Account No.]	CALL02539F
PAN No.: [Permanent Account No.]	AABCL8071G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Plywood Making Machinery.
No. of Employees :	75 (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 24000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a new relatively new company having moderate track. Trade relations are reported as improving. Business is active. Payments are reported to be slow. The company can be considered for business dealings 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

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. Tarun Jana
Designation :	Office Assistant
Contact No.:	91-33-5349929
Date :	14.09.2012

LOCATIONS

Registered Office :	321, Lake Town, Block A, Kolkata – 700089, West Bengal, India
Tel. No.:	91-33-5349929
Fax No.:	91-33-5343760
E-Mail :	lme@cal3.vsnl.net.in pksahaassociates@gmail.com
Website :	http://www.lmengg.com
Area :	500 Sq. ft
Location :	Owned
Factory :	81, Nilganj Road, Agarpara, Kolkata – 700109, West Bengal, India
Area :	7000 Sq. ft
Location :	Rented

DIRECTORS

As on: 12.10.2011

Name :

Mr. Ranesh Chandra Saha

Designation :

Director

Address :

321, Lake Town, Block A, Kolkata – 700089, West Bengal, India

Date of Birth/Age :

28.05.1932

Date of Appointment :

01.06.2010

Voter ID No.:

DKN0770107

DIN No.:

00844153

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U29150WB1978PTC031640	KRANO BLOCK PRIVATE LIMITED	Whole-time director	23/08/1978	23/08/1978	-	Active	NO
2	U70101WB2007PTC117946	MAAN ENCLAVE PRIVATE LIMITED	Director	21/08/2007	21/08/2007	18/10/2008	Active	NO
3	U31908WB2010PTC150128	L.M. ENGINEERING MACHINERY COMPANY PRIVATE LIMITED	Director	01/06/2010	01/06/2010	-	Active	NO
4	U70200WB2010PTC145116	IRONY DEVELOPERS PRIVATE LIMITED	Additional director	02/09/2010	02/09/2010	-	Active	NO

Name :

Ms. Anuradha Saha

Designation :

Director

Address :

321, Lake Town, Block A, Kolkata – 700089, West Bengal, India

Date of Birth/Age :

08.06.1972

Date of Appointment :

01.06.2010

Voter ID No.:

DKN3023132

DIN No.:

00844337

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U29150WB1978PTC031640	KRANO BLOCK PRIVATE LIMITED	Whole-time director	07/01/2002	07/01/2002	-	Active	NO
2	U70101WB2007PTC117946	MAAN ENCLAVE PRIVATE LIMITED	Director	21/08/2007	21/08/2007	18/10/2008	Active	NO
3	U20232WB2009PTC138336	L.M. PLYWOODS PRIVATE LIMITED	Director	09/09/2009	09/09/2009	-	Active	NO
4	U45400WB2008PTC123426	GOPALA INFRACON PRIVATE LIMITED	Director	06/01/2010	06/01/2010	-	Active	NO
5	U31908WB2010PTC150128	L.M. ENGINEERING MACHINERY COMPANY PRIVATE LIMITED	Director	01/06/2010	01/06/2010	-	Active	NO

Name :

Mr. Kuntal Kumar Saha

Designation :

Director

Address :

321, Lake Town, Block A, Kolkata – 700089, West Bengal, India

Date of Appointment :

28.06.2010

Voter ID No.:

WB/20/139/375640

DIN No.:

02903687

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U45400WB2008PTC123426	GOPALA INFRACON PRIVATE LIMITED	Director	06/01/2010	06/01/2010	-	Active	NO
2	U20232WB2009PTC138336	L.M. PLYWOODS PRIVATE LIMITED	Director	18/03/2010	18/03/2010	-	Active	NO
3	U29150WB1978PTC031640	KRANO BLOCK PRIVATE LIMITED	Director	18/03/2010	18/03/2010	-	Active	NO
4	U31908WB2010PTC150128	L.M. ENGINEERING MACHINERY COMPANY PRIVATE LIMITED	Director	28/06/2010	28/06/2010	-	Active	NO
5	U70200WB2010PTC145116	IRONY DEVELOPERS PRIVATE LIMITED	Director	04/04/2011	04/04/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Tarun Jana
Designation :	Office Assistant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 12.10.2011

Names of Shareholders	No. of Shares
Ranesh Chandra Saha	442000
Anuradha Saha	5000
Total	447000

Equity Share Break up (Percentage of Total Equity)

As on: 12.10.2011

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Plywood Making Machinery.

Products :

Product Description	ITC Code
Dryer etc	841932

· Knife Grinder

· Belt Sander

· Seasoning Kiln

· D D Saw

· Glue Mixer

· Doctor Roll Glue Spreader

· Jet Dryer

· Band Dryer

· Pneumatic Clipper

· Auto Veneer Clipper

· Guillotine Jointer

· Auto Chain Conveyor

Exports :

Products :

· Plywood Making Machinery

Countries :

· Africa

· Sri Lanka

· Myanmar

· Bangladesh

· Nepal

· Bhutan

· Ghana

Imports :

Products :

· Machinery

Countries :

· China

Terms :

Selling :

L/C, Cash and Credit

Purchasing :

L/C, Cash and Credit

GENERAL INFORMATION

Suppliers :	Anand Iron
Customers :	End Users · Green Ply Industries Limited
No. of Employees :	75 (Approximately)
Bankers :	· Standard Chartered Bank, Kolkata, West Bengal, India · ING Vysya Bank, Kolkata, West Bengal, India

Banking Relations :	--
Auditors :
Name :	P.K. Saha and Associates Chartered Accountants
Address :	173,Park Street, 2nd Floor, Kolkata – 700017, West Bengal, India
PAN No.:	AAEFP1169K
Sister Concern :	Name: krano block Private Limited Address: 321, Lake Town, Block A, Kolkata – 700089, West Bengal Line of business: Manufacturer and Exporter of Plywood Making Machinery

CAPITAL STRUCTURE

As on: 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
447000	Equity Shares	Rs.10/- each	Rs.4.470 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		4.470
2] Share Application Money		0.000
3] Reserves & Surplus		1.727
4] (Accumulated Losses)		0.000
NETWORTH		6.197
LOAN FUNDS
1] Secured Loans		0.000
2] Unsecured Loans		0.000
TOTAL BORROWING		0.000
DEFERRED TAX LIABILITIES		0.000
TOTAL		6.197
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.939
Capital work-in-progress		0.00
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.084
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.228
	Sundry Debtors	8.415
	Cash & Bank Balances	5.823
	Other Current Assets	0.000
	Loans & Advances	6.528
Total Current Assets		24.994
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.893
	Other Current Liabilities
	Provisions	0.927
Total Current Liabilities		20.820
Net Current Assets		4.174
MISCELLANEOUS EXPENSES		0.000
TOTAL		6.197

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011
	SALES
		Income	19.888
		Other Income	0.015
		TOTAL	19.903
Less	EXPENSES
		Increase/ Decrease in work-in- progress	(2.428)
		Other Expenses	19.668
		TOTAL	17.240
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		2.663
Less/ Add	DEPRECIATION/ AMORTISATION		0.093
	PROFIT BEFORE TAX		2.570
Less	TAX		0.842
	PROFIT AFTER TAX		1.728
	Earnings Per Share (Rs.)		3.86

Particulars	31.03.2012
Sales Turnover (Approximately)	80.000

Expected Sales (2012-2013): Rs.100.000 Millions

The above information has been parted by Mr. Tarun Jana

KEY RATIOS

PARTICULARS		31.03.2011
PAT / Total Income	(%)	8.68
Net Profit Margin (PBT/Sales)	(%)	12.92
Return on Total Assets (PBT/Total Assets}	(%)	9.52
Return on Investment (ROI) (PBT/Networth)		0.41
Debt Equity Ratio (Total Liability/Networth)		3.36
Current Ratio (Current Asset/Current Liability)		1.200

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 two years	Yes
12]	Profitability for last one year	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	No
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	Yes
34]	External Agency Rating, if available	No

TRADE REFERENCES:

· Green Ply Industries Limited

· Anand Iron

FIXED ASSETS:

· Electrical Installation

· Office Equipment

· Plant and Machinery

· Computer

· Motor Car

· Furniture and Fittings

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.53.26
UK Pound	1	Rs.86.23
Euro	1	Rs.68.64

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
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	3
--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	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
-	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.