MIRA INFORM REPORT

Report Date :

17.01.2013

IDENTIFICATION DETAILS

Name :	MAHALAXMI LUMBERS PRIVATE LIMITED
Registered Office :	1/57–A, W.H.S Kirti Nagar, New Delhi – 110 015
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.03.2008
Com. Reg. No.:	55-175887
Capital Investment / Paid-up Capital :	Rs. 2.470 millions
CIN No.: [Company Identification No.]	U20299DL2008PTC175887
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Wood, Timber, Plywood
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 10000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The company has recorded modest scale of business operation and profit margin remained low. The external borrowing appears to be huge. However, trade relations are reported to be fair. Business is active. Payments are slow but correct. 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.

LOCATIONS

Registered Office :	1/57 – A WHS Kirti Nagar, New Delhi – 110 015, India
Tel. No.:	91-11-25111022 / 25421998
Fax No.:	Not Available
E-Mail :	vsa@vsachdeva.com
Factory :	1 / 57-A, W.H.S Kirti Nagar, New Delhi – 110 015, India

DIRECTORS

As on 29.09.2012

Name :	Kanti Lal Patel
Designation :	Whole Time Director
Address :	C – 123, Mansarover Garden, New Delhi – 110 015, India
Date of Birth/Age :	30.09.1964
Date of Appointment :	26.03.2008
DIN No.:	01982593
Name :	Javer Ben Patel
Designation :	Director
Address :	C – 123, Mansarover Garden, New Delhi – 110 015, India
Date of Birth/Age :	26.12.1947
Date of Appointment :	26.03.2008
DIN No.:	01982625

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Kanti Lal Patel	77500
Javer Ben Patel	49500
Ganga Ram Patel	70000
Dhanna Ram Patel	4000
Dhanna Ram Patel and Sons (HUF) through Karta Dhanna Ram Patel	1000
Ganga Ram Patel and Sons (HUF) through Karta Ganga Ram Patel	1000
Kanti Lal Patel (HUF) through Karta Kanti Lal Patel	10000
Kishore Patel (HUF) through Karta Kishore Patel	1000
Kishore Patel	30000
Kalawati Patel	1000
Kalpana patel	1000
Saraswati patel	500
Virchand Patel	500
Prakashkumar Govindbhai Patel	50
TOTAL	247050

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	99.78
Others	0.22
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Wood, Timber, Plywood.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· The South Indian Bank Limited, 16A/17 Ajmal Khan Road, Karol Bagh, New Delhi – 110 005, India

· State Bank of India

· Bank of India

Facilities :

Secured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Working Capital loans from Banks (Repayable on demand)	14.254	8.957
Total	14.254	8.957

Note:

Working Capital Loans

From The South Indian Bank Limited: - Secured against Hypothecation of Stocks and Book Debts and Equitable Mortgage of Property in the name of one of the Directors and relative of Directors and Personal Guarantees of the Directors and 2 relatives of the said Directors who are the owners of the said property) (Loan outstanding as at 31st March 2012 Rs 14.254 millions (Previous Year Rs 8.957 millions). (Principal amount repayable within 12 months from the date of balance sheet Rs. 14.254 millions)

Banking Relations :	--
Auditors :
Name :	V. Sachdeva and Associates Chartered Accountants
Address :	302, Vikram Tower, 16, Rajindra place, new Delhi – 110 008, India
PAN No.:	AANPS6183K

CAPITAL STRUCTURE

As on 29.09.2012

Authorized Capital:

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs. 10/- each	Rs. 2.500 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
247050	Equity Shares	Rs. 10/- each	Rs. 2.470 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2.470	2.470	2.470
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3.780	2.738	1.166
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		6.250	5.208	3.636
LOAN FUNDS
1] Secured Loans		14.254	8.957	10.683
2] Unsecured Loans		7.190	8.691	5.660
TOTAL BORROWING		21.444	17.648	16.343
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		27.694	22.856	19.979
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.935	2.789	2.848
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.050	14.491	7.852
	Sundry Debtors	23.691	20.683	23.366
	Cash & Bank Balances	1.080	0.566	0.852
	Other Current Assets	0.072	0.086	0.000
	Loans & Advances	0.289	0.223	1.158
Total Current Assets		40.182	36.049	33.228
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	13.523	14.100
	Other Current Liabilities	1.772	1.772	15.967
	Provisions	0.128	0.110	0.227
Total Current Liabilities		15.423	15.982	16.194
Net Current Assets		24.759	20.067	17.034
MISCELLANEOUS EXPENSES		0.000	0.000	0.0928
TOTAL		27.694	22.856	19.979

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	73.011	62.178	56.893
		Other Income	0.073	0.093	2.716
		TOTAL (A)	73.084	62.271	59.609
Less	EXPENSES
		Purchase of Traded Goods	63.709	59.165
		Changes in Inventories of Traded Goods	(0.559)	(6.638)
		Employee Benefit Expenses	1.918	1.589
		Other Expenses	3.729	3.289
		TOTAL (B)	68.797	57.405	57.746
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.287	4.866	1.863
Less	FINANCIAL EXPENSES (D)		2.572	2.385	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.715	2.481	1.863
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.182	0.176	0.152
	PROFIT BEFORE TAX (E-F) (G)		1.533	2.305	1.711
Less	TAX (H)		0.492	0.732	0.595
	PROFIT AFTER TAX (G-H) (I)		1.041	1.573	1.116
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.739	1.166	0.050
	BALANCE CARRIED TO THE B/S		3.780	2.739	1.166
	IMPORTS		18.125	5.213	7.872
	Earnings Per Share (Rs.)		4.21	6.36	4.51

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.42	2.52	2.87
Net Profit Margin (PBT/Sales)	(%)	2.09	3.70	3.01
Return on Total Assets (PBT/Total Assets}	(%)	3.55	5.93	4.74
Return on Investment (ROI) (PBT/Networth)		0.24	0.44	0.47
Debt Equity Ratio (Total Liability/Networth)		5.89	6.45	8.94
Current Ratio (Current Asset/Current Liability)		2.60	2.25	2.05

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	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
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]	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

UNSECURED LOAN :

Unsecured Loan	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
Loans from Related Parties	4.690	5.196
Loans from Others	2.500	3.495
Total	7.190	8.691

Note:

The Unsecured Loans outstanding carry 0% to 12% rate of interest payable quaterly and have tenor of 2-4 years.

FINANCIAL RESULTS AND PERFORMANCE

This was the 5th year of operation of the company. The company was able to streamline Trading in Timber and Plywood etc. and make Sales of Rs.70.049 Millions during the year as compared to Rs.57.562 Millions in the previous year and received Other Income amounting to Rs.3.035 Millions as compared to Rs.4.709 Millions in the previous year. The Net Profit of the company during the year Rs. 1.533 Millions after providing Depreciation of Rs. 0.182 Million on the Fixed Assets used during the year. The Company expects to obtain large orders during the coming year.

CONTINGENT LIABILITY

Contingent Liability not provided for, in respect of: -

(a) In the opinion of the management there is no contingent liability or claim which can be acknowledged as a debt other than the amounts of Margin for LC/guarantee against Import of Traded Goods as per details given below

(Rs. in millions)

PARTICULARS	31.03.2012
Import LC/guarantee (against Import of Traded Goods) (Margin for LC/guarantee provided Rs. 0.393 millions. Previous Year Rs. 0.480 million)	1.306

(b) There are no other claims against the company as on the date of Balance Sheet, which can be, acknowledged as Debts.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U20299DL2008PTC175887
Name of the company	MAHALAXMI LUMBERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1/57 – A WHS Kirti Nagar, New Delhi – 110 015 e-mail : vsa@vsachdeva.com
This form is for	Modification of charge
Charge identification number of the modified	10117713
Type of charge	Book Debts Stock
Particular of charge holder	The South Indian Bank Limited, 16A/17 Ajmal Khan Road, Karol Bagh, New Delhi – 110 005, India e-mail : aravindanp75@sify.com
Nature of description of the instrument creating or modifying the charge	Sanction letter Credit facility agreement (CCOL/OD) Credit facility agreement (inland/import L/C) Supplemental deed of hypothecation
Date of instrument Creating the charge	22.02.2011
Amount secured by the charge	Rs. 29.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest CCOL Base Rate 8.80% + Spread 5.00% = Effective Rate 13.80% Terms of Repayment On Demand Margin On stock 25% and 50% on book debts Import L/C 10% in the form of FDR Extent and Operation of the charge 100 Per Cent In Favour Of The Bank
Short particulars of the property charged	Stock and book debts arising in the ordinary course of business of the borrower at its premises in Delhi or elsewhere in the course of transit or otherwise stored in warehouses or godowns.
Particulars of the present modification	CCOL enhanced from Rs. 8.000 millions to Rs. 12.000 millions and import/inland L/C has been enhanced from Rs. 12.000 millions to Rs. 17.500 millions. Total exposure of the bank is Rs. 29.500 millions.

Fixed Assets:

· Plant and Machinery

· Vehicles

· Furniture and Fixtures

· Computer

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.54.88
UK Pound	1	Rs.87.99
Euro	1	Rs.72.83

INFORMATION DETAILS

Report Prepared by :

NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		36

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.