MIRA INFORM REPORT

Report Date :

27.01.2014

IDENTIFICATION DETAILS

Name :	SENGHANI AND SENGHANI EXIM PRIVATE LIMITED
Registered Office :	14/1, Canal East Road, Kolkata – 700067, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	02.06.2005
Com. Reg. No.:	21-103510
Capital Investment / Paid-up Capital :	Rs.1.990 Millions
CIN No.: [Company Identification No.]	U51909WB2005PTC103510
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Trader of Timber for Saw Mill Industry.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (35)

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

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Rating reflects working capital intensive operation and limited scale of operations in highly fragmented timber trading industry. However, trade relations are fair. Business is active. Payment terms 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 – September 30, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BB (Long Term Rating)
Rating Explanation	Inadequate credit quality and high credit risk.
Date	April 12, 2013

Rating Agency Name	CRISIL
Rating	A4+ (Short Term Rating)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	April 12, 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 PARTED BY

Name :	Mr. Parthav
Designation :	Account Manager
Contact No.:	91-9051433127
Date :	24.01.2014

LOCATIONS

Registered Office :	14/1, Canal East Road, Kolkata – 700067, West Bengal, India
Tel. No.:	91-33-23563604
Mobile No.:	91-9051433127 (Mr. Parthav)
Fax No.:	91-33-23563604
E-Mail :	senghani_semghani@yahoo.com vivagarwal01@gmail.com
Area :	600 Sq. Ft
Location :	Rented
Factory :	Bhadreshwar, Hoobly, West Bengal, India
Area :	2.92 Acers
Location :	Owned

DIRECTORS

As on: 28.09.2013

Name :

Mr. Mukesh Patel

Designation :

Director

Address :

14/1, Canal East Road, Kolkata – 700067, West Bengal, India

Date of Birth/Age :

06.06.1968

Date of Appointment :

02.06.2006

PAN No.:

AKWPP8837A

DIN No.:

00582301

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	U51909WB2005PTC103510	SENGHANI AND SENGHANI EXIM PRIVATE LIMITED	Director	02/06/2006	02/06/2006	-	Active	NO
2	U51109WB2008PTC125363	SADASHIVSHAKTI TRADING PRIVATE LIMITED	Director	02/05/2008	02/05/2008	-	Active	NO
3	U74999WB2011PTC158748	SENGHANI CONSULTANCY PRIVATE LIMITED	Director	10/02/2011	10/02/2011	-	Active	NO

Name :

Mr. Mahesh Harilal Patel

Designation :

Director

Address :

14/1, Canal East Road, Kolkata – 700067, West Bengal, India

Date of Birth/Age :

16.02.1976

Date of Appointment :

02.06.2006

DIN No.:

00582181

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	U51909WB2005PTC103510	SENGHANI AND SENGHANI EXIM PRIVATE LIMITED	Director	02/06/2006	02/06/2006	-	Active	NO
2	U51109WB2008PTC125363	SADASHIVSHAKTI TRADING PRIVATE LIMITED	Director	02/05/2008	02/05/2008	-	Active	NO
3	U74999WB2011PTC158748	SENGHANI CONSULTANCY PRIVATE LIMITED	Director	10/02/2011	10/02/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Parthav
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2013

Names of Shareholders	No. of Shares
Mukesh Patel	15000
Mahesh Patel	15000
Murarka Advisory Holding (Private) Limited, India	6500
Venus Dealing (Private) Limited, India	4500
Umesh Suppliers (Private) Limited, India	16000
Shobha Patel	5000
Viju Patel	5000

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2013

Category	Percentage
Other top fifty shareholders	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of Timber for Saw Mill Industry.
Imports :
Products :	Timber
Countries :	· Ghana · Nigeria
Terms :
Selling :	Credit (90 days and 180days)
Purchasing :	L/C and Credit

GENERAL INFORMATION

Suppliers :

Name :	Shree Balaji Logs Product Private Limited
Address :	Kolkata, West Bengal, India
Mobile No.:	91-9830781813
Contact Person :	Mr. Sunil Bera (Accounting and Banking)
Remark :	Rated company as very good.

Customers :

Wholesalers and Distributor

Name :	Sunrise Timply Company Private Limited
Address :	Kolkata, West Bengal, India
Mobile No.:	91-9231594233
Contact Person :	Mr. Satyajeet (Accountnat)
Remark :	Rated company as good.

No. of Employees :

25 (Approximately)

Bankers :

Name :	Dena Bank
Branch Address :	Salt Lake Branch, AB - 2, Sector 1, Salt Lake City, Kolkata - 700064, West Bengal, India
Tel. No.:	91-33-23211604
Contact Person :	Ms. Ruchi (Chief Manager)
BANKER REPORT :	Rated company as very good

Facilities :

· Cash Credit Rs.15.000 Millions (From Dena Bank)

· LC Rs.78.500 Millions (From Dena Bank)

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
SHORT TERM BORROWINGS
Loan repayable on demand	0.000	1.300
Bank CC Limit	16.942	14.017
Margin money HDFC	0.098	0.098
Secured loan	0.000	0.277
Total	17.040	15.692

Banking Relations :	--
Auditors 1 :
Name :	Ashish Ramani and Company Chartered Accountants
Auditors 2 :
Name :	Rajesh Kumar Agarwal Chartered Accountant
Address :	169, Shree Ram Dhang Road, Howrah – 711106, West Bengal, India
PAN No.:	ACVPA5500G
Sister Concern :	Name: Harshad Saw Mill Company Address: 14/1 Canal East Road, Kolkata – 700067, West Bengal, India Line of Business: Manufacturer of Timber

CAPITAL STRUCTURE

As on: 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/- each	Rs.4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
199000	Equity Shares	Rs.10/- each	Rs.1.990 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1.990	1.990	1.990
(b) Reserves & Surplus	41.985	38.641	36.295
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	43.975	40.631	38.285
(3) Non-Current Liabilities
(a) long-term borrowings	3.500	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	3.500	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	17.040	15.692	0.643
(b) Trade payables	88.077	124.833	27.691
(c) Other current liabilities	0.000	0.000	0.000
(d) Short-term provisions	0.000	0.300	0.300
Total Current Liabilities (4)	105.117	140.825	28.634
TOTAL	152.592	181.456	66.919
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	18.832	15.927	11.682
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	1.041	1.040	1.027
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	19.873	16.967	12.709
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	70.535	44.773	7.753
(c) Trade receivables	40.785	102.308	44.759
(d) Cash and cash equivalents	17.918	13.045	1.582
(e) Short-term loans and advances	3.481	4.363	0.116
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	132.719	164.489	54.210
TOTAL	152.592	181.456	66.919

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	468.902	311.264	254.036
		Other Income	0.076	0.013	(0.002)
		TOTAL (A)	468.978	311.277	254.034
Less	EXPENSES
		Purchases of Stock-in-Trade	475.942	334.230	240.972
		Changes in Inventories	(25.762)	(37.020)	6.231
		Employee Benefit Expenses	0.560	0.418	0.395
		Other Expenses	7.099	7.369	2.135
		TOTAL (B)	457.839	304.997	249.733
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.139	6.280	4.301
Less	FINANCIAL EXPENSES (D)		1.607	0.504	0.109
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.532	5.776	4.192
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.648	1.723	0.974
	PROFIT BEFORE TAX (E-F) (G)		7.884	4.053	3.218
Less	TAX (H)		1.340	0.000	0.300
	PROFIT AFTER TAX (G-H) (I)		6.544	4.053	2.918
	Earnings Per Share (Rs.)		32.88	20.37	14.66

Expected Sales (2013-2014): Rs.520.000 Millions

The above information has been parted by Mr. Parthav

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	1.40	1.30	1.15
Net Profit Margin (PBT/Sales)	(%)	1.68	1.30	1.27
Return on Total Assets (PBT/Total Assets}	(%)	5.20	2.25	4.88
Return on Investment (ROI) (PBT/Networth)		0.18	0.10	0.08
Debt Equity Ratio (Total Debt/Networth)		0.47	0.39	0.02
Current Ratio (Current Asset/Current Liability)		1.26	1.17	1.89

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 three years	Yes
12]	Profitability for last three years	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	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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

TRADE REFERENCE

· Shree Balaji Logs Product Private Limited

· Sunrise Timply Company Private Limited

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10306000	09/09/2011	315,000,000.00	DENA BANK	SALT LAKE BRANCH, AB - 2, SECTOR 1, SALT LAKE CITY, KOLKATA, WEST BENGAL - 700064, INDIA	B20409892

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.62.18
UK Pound	1	Rs.103.38
Euro	1	Rs.85.09

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
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	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		35

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.