MIRA INFORM REPORT

Report Date :

27.08.2013

IDENTIFICATION DETAILS

Name :	SPACE WOOD FURNISHERS PRIVATE LIMITED
Registered Office :	T-48, M.I.D.C., Hingna, Nagpur – 440016, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.06.1996
Com. Reg. No.:	11-100296
Capital Investment / Paid-up Capital :	Rs.33.065 Millions
CIN No.: [Company Identification No.]	U36100MH1996PTC100296
TAN No.: [Tax Deduction & Collection Account No.]	NGPS01638A
PAN No.: [Permanent Account No.]	AACCS4955R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Wood Furniture Components.
No. of Employees :	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 710000
Status :	Satisfactory
Payment Behaviour :	Slow but Correct
Litigation :	Exists
Comments :	Subject is an established company having satisfactory track record. Latest financials are not available with us. As per previous record, external borrowing of the company appears to be increasing. However, overall financials appears to be satisfactory. Trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing at usual trade terms and condition.

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	ICRA
Rating	Long Term Loans = BBB-
Rating Explanation	Moderate credit quality and average credit risk
Date	08.07.2013

Rating Agency Name	ICRA
Rating	Short Term Non Fund Based Facilities = A4+
Rating Explanation	Risk prone credit quality and high credit risk.
Date	08.07.2013

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. Makrand
Designation :	Vice President Commercial
Contact No.:	91-8007772459
Date :	27.08.2013

LOCATIONS

Registered / Head Office / Factory:	T-48, M.I.D.C., Hingna, Nagpur – 440016, Maharashtra, India
Tel. No.:	91-7104-324780/ 324781/ 234852/ 234858/ 234857/ 235968/ 236148
Mobile No.:	91-8007772459 (Mr. Makrand)
Fax No.:	91-7104-232139
E-Mail :	info@spacewood.in makrand@spacewood.in spacewood@spacewood.org ns@spacewood.in
Website :	http://www.spacewood.in
Area :	15000 acres
Location :	Leased
Branch Office :	Located At Chennai Pune Bangalore Mumbai

DIRECTORS

As on 29.09.2012

Name :	Mr. Vivek Moreshwar Deshpande
Designation :	Director
Address :	“Madhav”, 67 A, Shivaji Nagar, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	14.11.1970
Qualification :	BE (Mech.)
Date of Appointment :	18.06.1996
DIN No.:	00023147
Voter ID No. :	UOA1372242
Name :	Mr. Kirit Sharad Joshi
Designation :	Director
Address :	23, Trayambakeshwar, Near Dr. Choudhary’s House, New Verma Layout, Nagpur – 440 033, Maharashtra, India
Date of Birth/Age :	20.10.1970
Qualification :	BE (Mech.)
Date of Appointment :	09.07.1996
DIN No.:	00204902
Voter ID No. :	MT/23/137/0381102
Name :	Mr. Nitin Sharadchandra Sudame
Designation :	Whole-time director
Address :	Prasad, 105, Swawalambi Nagar, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	23.05.1965
Date of Appointment :	01.10.2010
DIN No.:	03291500
Voter ID No. :	YKB0330752

KEY EXECUTIVES

Name :	Mr. Makrand
Designation :	Vice President Commercial

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Vivek M. Deshpande	1389938
Kirit S. Joshi	1298138
Sharad T. Joshi	196350
Vidya S. Joshi	119532
Usha M. Deshpande	27412
Ratna K. Joshi	39205
Varsha V. Deshpande	235875
Total	3306450

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Wood Furniture Components.

Products :

Products Description	Item Code No.
Wood Furniture Components	279.9

· Kitchen Carcass from China

· High Gloss Laquer doors for Kitchen Cabinets

· Bedroom and Living Room Furniture

· Office Furniture

GENERAL INFORMATION

No. of Employees :

600 (Approximately)

Bankers :

• Union Bank of India, Shriman Commercial Complex, Dhantoli, Nagpur – 440012, Maharashtra, India
• Corporation Bank, 44 S.V.P Marg Kingsway, Nagpur – 440001, Maharashtra, India
• State Bank of India
• State Bank of India, Hingna Industrial Estate, Nagpur - 440016, Maharashtra, India
• Kotak Mahindra Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee Term Loans banks	70.232	71.212
Rupee Term Loans financial institutions	114.847	124.658
Foreign currency loans	133.540	0.000
Working Capital Loans banks	180.463	163.669
Working Capital Loans financial institutions	0.000	69.436
Loan taken for vehicles	1.308	0.600
Total	500.390	429.575

Banking Relations :	--
Auditors :
Name :	C N Patel and Company Chartered Accountants
Address :	Gani Sons Charitable Trust Building, residency Road, Sadar, Nagpur – 440 001, Maharashtra, India
Tel. No.:	91-712-2584800/2584082
E-Mail :	cnpca@rediffmail.com
PAN.:	AGWPP7500Q
Associates :	Platinum Business India Private Limited (Earlier Spacewood Exports Private Limited) CIN No.: U51393MH2007PTC172507
Subsidiaries :	Spacewood Office Solutions Private Limited Spacewood Hong Kong Limited Dolphin Hume Pipe Industries Private Limited CIN No.: U26956MH1983PTC030168

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3306450	Equity Shares	Rs.10/- each	Rs.33.065 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		33.065	22.043	19.601
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		144.693	136.319	121.285
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		177.758	158.362	140.886
LOAN FUNDS
1] Secured Loans		500.390	429.575	333.308
2] Unsecured Loans		74.856	70.182	70.182
TOTAL BORROWING		575.246	499.757	403.490
DEFERRED TAX LIABILITIES		14.033	7.174	8.137
TOTAL		767.037	665.293	552.513
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		197.132	156.021	167.905
Capital work-in-progress		42.277	24.806	16.771
INVESTMENT		68.002	2.580	1.955
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	205.015	216.247	182.098
	Sundry Debtors	397.651	371.267	274.122
	Cash & Bank Balances	45.816	29.904	19.801
	Other Current Assets	2.000	12.013	0.000
	Loans & Advances	95.741	93.861	68.539
Total Current Assets		746.223	723.292	544.560
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	202.934	209.043	160.544
	Other Current Liabilities	60.485	0.000	0.000
	Provisions	23.415	32.363	18.134
Total Current Liabilities		286.834	241.406	178.678
Net Current Assets		459.389	481.886	365.882
MISCELLANEOUS EXPENSES		0.237	0.000	0.000
TOTAL		767.037	665.293	552.513

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1366.048	1185.790	1146.901
		Other Income
		TOTAL (A)	1366.048	1185.790	1146.901
Less	EXPENSES
		Office Expenses
		Administrative Expenses	1244.576	1076.055
		Advertising Expenses
		TOTAL (B)	1244.576	1076.055	1114.845
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		121.472	109.735	(Including Financial and Depreciation Expenses)
Less	FINANCIAL EXPENSES (D)		56.928	58.983
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		64.544	49.752
Less/ Add	DEPRECIATION/ AMORTISATION (F)		25.242	22.311
	PROFIT BEFORE TAX (E-F) (G)		39.302	27.441	32.056
Less	TAX (H)		16.051	9.829	9.317
	PROFIT AFTER TAX (G-H) (I)		23.251	17.612	22.739
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		96.738	80.421	68.761
Less	APPROPRIATIONS
		Transfer to General Reserve	2.000	2.000	2.000
		Transfer to Foreign Currency Transaction Reserve	(0.926)	(3.282)	6.785
		Proposed Dividend	3.306	2.204	1.960
		Tax on Dividend	0.549	0.374	0.333
	BALANCE CARRIED TO THE B/S		115.060	96.738	80.421
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	27.571	35.410	21.659
	TOTAL EARNINGS		27.571	35.410	21.659
	IMPORTS
		Capital Goods	36.433	1.225	22.547
		Raw Materials	415.355	400.677	420.487
	TOTAL IMPORTS		451.788	401.902	443.034
	Earnings Per Share (Rs.)		7.31	10.55	11.60

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.70	1.49	1.98
Return on Total Assets (PBT/Total Assets}	(%)	4.17	3.12	4.50
Return on Investment (ROI) (PBT/Networth)		0.22	0.17	0.23
Debt Equity Ratio (Total Debt /Networth)		3.24	3.16	2.86
Current Ratio (Current Asset/Current Liability)		2.60	3.00	3.05

LOCAL AGENCY FURTHER INFORMATION

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	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	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	Yes
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	No
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	Yes

LITIGATION DETAILS
Bench:- Bombay
Stamp No:-	CAWST/30983/2009	Failing Date:-	03/03/2010	Reg. No.:-	CAW/102/2012	Reg. Date:-	12/01/2012
		Main Matter
Stamp No.:-	WPST/30983/2009		Reg. No.:-	WP/83/2010
Petitioner:-	DESIGNATED AUTHORITY AND ANR		Respondent:-	SPACE WOOD FURNISHERS PRIVATE LIMITED
Petn.Adv:-	SHRI S.R. GANBAVALE
District:-	BOMBAY
Bench:-	DIVISION
Status:-	Pre-Admission		Stage:-
Last Date:-	23.03.2010
Last Coram:-	HON’BLE SHRI JUSTICE V.C. DAGA HON;BLE SHRI JUSTICE K.K. TATED
Act:-	Order Act

NOTE:

The Registered office of the company has been shifted from N-6, MIDC, Hingna, Nagpur – 440016, Maharashtra, India to the present address w.e.f.19.11.2009.

UNSECURED LOAN

Rs. In Millions

Particulars	31.03.2011	31.03.2012
Loans directors	46.850	41.850
Deferred sales tax loans	28.006	28.332
Total	74.856	70.182

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10317093	04/01/2012 *	86,000,000.00	CORPORATION BANK	44 S.V.P MARG KINGSWAY, NAGPUR, Maharashtra - 440 001, INDIA	B33142787
2	10193819	13/11/2009	10,000,000.00	UNION BANK OF INDIA	DHANTOLI, NAGPUR, Maharashtra - 440012, INDIA	A76190495
3	10123805	21/07/2012 *	450,000,000.00	UNION BANK OF INDIA	SHRIMAN COMMERCIAL COMPLEX, DHANTOLI, NAGPUR, Maharashtra - 440012, INDIA	B45645678

* Date of charge modification

Fixed Assets

· Land

· Factory Building

· Plant and Machinery

· Tools and Equipments

· Office Equipments

· Computers

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.64.23
UK Pound	1	Rs.100.00
Euro	1	Rs.85.93

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	3
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		43

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.