MIRA INFORM REPORT

Report Date :

24.08.2013

IDENTIFICATION DETAILS

Name :	EKBOTE’S LOGS AND LUMBERS PRIVATE LIMITED
Registered Office :	Gat No. 229, Village Ranje, Taluka Bhor, Pune-411037, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.10.1997
Com. Reg. No.:	11-111278
Capital Investment / Paid-up Capital :	Rs.5.804 Millions
CIN No.: [Company Identification No.]	U02006PN1997PTC111278
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Furniture, Decorative Plywood, Wood Resale and Allied Products.
No. of Employees :	Information denied by the management.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 193000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. The company has seen a better increase in its sales turnover during 2012. The ratings take into consideration the modest scale of operations in the industry. Trade relations are fair. Business is active. Payment terms are reported as slow but correct. In view of long standing experience of the promoters and subject established brand in the regional market. The company can be considered 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.

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BB+ [Long Term]
Rating Explanation	Moderate risk of default.
Date	01.03.2013

Rating Agency Name	CRISIL
Rating	A4+ [Short Term]
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	01.03.2013

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 DECLINED BY

Name :	Mr. Bapumadane
Designation :	Finance Department
Contact No.:	91-2113-305801
Date :	23.08.2013

LOCATIONS

Registered / Head Office :	Gat No. 229, Village Ranje, Taluka Bhor, Pune-411037, Maharashtra, India
Tel. No.:	91-2113-305800 / 801 / 99
Fax No.:	91-2113-305851 / 52
E-Mail :	info@ekbotefurniture.com
Website :	http://www.ekbotefurniture.com
Branch Office :	Located At: · Bangalore · Chennai · Kolhapur · Pune

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Eknath Govind Ekbote
Designation :	Chairman cum Managing Director
Address :	Laxmi, 58, Mukund Nagar, Pune-411037, Maharashtra, India
Date of Birth/Age :	01.08.1944
Date of Appointment :	01.04.2006
Din No.:	00409388
Name :	Mr. Govind Dattoba Ekbote
Designation :	Whole Time Director
Address :	Laxmi, 58, Mukund Nagar, Pune-411037, Maharashtra, India
Date of Birth/Age :	12.02.1969
Date of Appointment :	01.04.2006
Din No.:	00409327
Name :	Mr. Ganesh Eknath Ekbote
Designation :	Whole Time Director
Address :	Laxmi, 58, Mukund Nagar, Pune-411037, Maharashtra, India
Date of Birth/Age :	09.12.1976
Date of Appointment :	01.04.2009
Din No.:	01273331
Name :	Mr. Mohan Eknath Ekbote
Designation :	Director
Address :	Laxmi, 58, Mukund Nagar, Pune-411037, Maharashtra, India
Date of Birth/Age :	17.06.1972
Date of Appointment :	29.09.2008
Din No.:	01273323

KEY EXECUTIVES

Name :	Mr. Bapumadane
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Eknath Govind Ekbote	3335
Suhas Dattoba Ekbote	5560
Rukmini Damodar Ekbote	3500
Kalavati Dattoba Ekbote	2340
Ratnaprabha Eknath Ekbote	2400
Sandeep Damodar Ekbote	4000
Narendra Damodar Ekbote	4000
Govind Dattoba Ekbote	6975
Mohan Eknath Ekbote	6975
Ganesh Eknath Ekbote	7115
Uma Suhas Ekbote	1600
Dattoba Govind Ekbote	2340
Tejashree Sandeep Ekbote	1180
Rekha Mohan Ekbote	1600
Rajshree Govind Ekbote	1600
Neeta Narendara Ekbote	1180
Rukhmini Damodar Ekbote and Kalavati Dattoba Ekbote	190
Anuradha Ekbote	1460
Balwant Uddhav Bhatwadekar	500
Mangal Balwant Bhatwadekar	190
TOTAL	58040

AS ON 29.09.2012

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Furniture, Decorative Plywood, Wood Resale and Allied Products.

GENERAL INFORMATION

No. of Employees :

Information denied by the management.

Bankers :

Bank of Maharashtra, TMV Colony Branch, 425/1, Mangal Deep TMV Colony Branch, Pune-411037, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
Cash Credit A/C No. 20026902954 with BOM [Secured by hypothecation of stocks]	38.502	19.595
BOM Term Loan A/C [secured by hypothecation of CNC Machine Stock]	6.927	9.579
BOM Tempo Bus Loan A/C	0.315	0.514
BOM lnnova Car Loan A/C	0.477	0.804
BOM Tempo Loan A/C	0.049	0.139
HDFC Skoda Car Loan A/C	1.120	0.000
HDFC Alto Car Loan A/C (Chennai Branch)	0.278	0.000
HDFC Santro Car Loan A/C	0.282	0.000
ICICI Pajero Car Loan A/C [Secured by hypothecation of vehicles]	1.585	0.000
TOTAL	49.535	30.631

Banking Relations :	--
Auditors :
Name :	Shah Parekh and Sabani Chartered Accountants
Address :	M 2, 2^nd Floor, Thakkar House, 2418, East Street, Pune-411001, Maharashtra, India
PAN No:	AAOFS8789G
Other Related Party :	Ekbote Interiors Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
75000	Equity Shares	Rs.100/- each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
58040	Equity Shares	Rs.100/- each	Rs.5.804 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	5.804	5.804
(b) Reserves & Surplus	42.464	26.922
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	48.268	32.726
(3) Non-Current Liabilities
(a) long-term borrowings	69.452	56.362
(b) Deferred tax liabilities (Net)	1.645	2.235
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	71.097	58.597
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	22.430	30.257
(c) Other current liabilities	19.309	18.964
(d) Short-term provisions	27.687	23.779
Total Current Liabilities (4)	69.426	73.000
TOTAL	188.791	164.323
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	63.032	63.119
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	20.864	13.840
Total Non-Current Assets	83.896	76.959
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	64.410	64.149
(c) Trade receivables	10.073	7.221
(d) Cash and cash equivalents	9.876	0.773
(e) Short-term loans and advances	20.536	15.221
(f) Other current assets	0.000	0.000
Total Current Assets	104.895	87.364
TOTAL	188.791	164.323

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		5.804
2] Share Application Money		0.000
3] Reserves & Surplus		18.905
4] (Accumulated Losses)		0.000
NETWORTH		24.709
LOAN FUNDS
1] Secured Loans		10.030
2] Unsecured Loans		22.086
TOTAL BORROWING		32.116
DEFERRED TAX LIABILITIES		1.115
TOTAL		57.940
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		38.862
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.772
	Sundry Debtors	12.587
	Cash & Bank Balances	0.930
	Other Current Assets	2.207
	Loans & Advances	37.910
Total Current Assets		77.406
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	16.467
	Other Current Liabilities	24.567
	Provisions	17.294
Total Current Liabilities		58.328
Net Current Assets		19.078
MISCELLANEOUS EXPENSES		0.000
TOTAL		57.940

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	305.307	193.342	158.667
Less	EXPENSES
		TOTAL	282.605	181.015	144.020
	PROFIT / (LOSS) BEFORE TAX		22.702	12.327	14.647
Less	TAX		7.160	4.310	5.336
	PROFIT / (LOSS) AFTER TAX		15.542	8.017	9.311
	IMPORTS		41.616	NA	NA
	Earnings / (Loss) Per Share (Rs.)		267.78	138.13	--

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.09	4.15	5.87
Return on Total Assets (PBT/Total Assets}	(%)	12.02	7.50	12.60
Return on Investment (ROI) (PBT/Networth)		0.47	0.37	0.59
Debt Equity Ratio (Total Debt/Networth)		1.44	1.72	1.30
Current Ratio (Current Asset/Current Liability)		1.51	1.20	1.33

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF CURRENT MATURITIES OF LONG TERM DEBT: NOT AVAILABLE

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	No
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
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
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONS:

During the year, the Company has earned a net profit of Rs. 15.542 Millions (previous year profit Rs 8.017 Millions) from the sales of Manufactured furniture, Decorative Plywood, Wood Resale and allied product of wooden furniture.

Unsecured Loan	As on 31.03.2012 [Rs. in Millions]	As on 31.03.2011 [Rs. in Millions]
Long Term Borrowings
From Shareholder, Directors and Their Relatives	19.917	25.731
TOTAL	19.917	25.731

FIXED ASSETS:

· Building

· Office Furniture and Fixture

· Plant and Machinery

· Office Equipments

· Computer

· Cars and Tempo

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 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.64.69
UK Pound	1	Rs.100.80
Euro	1	Rs.86.30

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.