MIRA INFORM REPORT

Report Date :

11.03.2014

IDENTIFICATION DETAILS

Name :	LOTUS VENEERS PRIVATE LIMITED
Registered Office :	Premswaroop, Shrinagar Colony, M. G. Road, Goregaon (West), Mumbai – 400062, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	22.07.1997
Com. Reg. No.:	11-109531
Capital Investment / Paid-up Capital :	Rs. 0.357 Million
CIN No.: [Company Identification No.]	U20200MH1997PTC109531
TAN No.: [Tax Deduction & Collection Account No.]	MUML05087F
PAN No.: [Permanent Account No.]	AAACL3707C
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Wood based Products.
No. of Employees :	7 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 60000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The rating reflects moderate financial risk profile marked by limited scale of business operations and low profitability of the company. 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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

State-run banks hired nearly 300000 personnel including more than 94000 officers in the last four years, according to the Indian Banks Association. A study by trade lobby Assocham in September 2013 indicated that banks would need 800000 people in the next six years. It estimated that state-run lenders alone would hire 50000 people in 2013/14.

The Competition Commission of India plans to issue final orders within a broad time-frame of one year in matters where it decides to carry out detailed investigations. The number of complaints received by the watchdog which keeps tabs on unfair trade practices in the marketplace.

The government has detected custom tax evasion totaling around Rs 37920 mn in 14 states until December. Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs 8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.

Connaught Place in New Delhi slipped four notches to become the world’s eighth most expensive office locations. London’s West End is the world’s most expensive office market.

There are 4.072 mn number of high value spenders under the scanner of the income tax department. The income tax department has information that they have made cash deposits announcing to Rs 1 mn or more in their savings bank accounts in the current financial year. It plans to check potential evasion before the closing of the financial year on March 31.

Estimated pharmaceutical sales in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago. The life sciences and health care industry is up against challenges such as quality management, says a recent Deloitte report.

The gross non-performing assets of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months of the financial year. In absolute terms, the 40 listed banks added Rs 3386 crore to their gross NPAs in nine months with the State Bank of India leading with the State Bank of India leading with an accretion of Rs 16610 crore.

The inflow of smuggled gold doubled in 2013 following restrictions to curb the supply from official channels to contain the current account deficit. China surpassed India in the demand for gold for the first time in 2013 due to liberalization of gold trading norms by its local governments.

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. Ashwin Shah
Designation :	Director
Contact No.:	91-9987078745
Date :	08.03.2014

LOCATIONS

Registered Office :	Premswaroop, Shrinagar Colony, M. G. Road, Goregaon (West), Mumbai – 400062, Maharashtra, India
Tel. No.:	91-22-28733724
Mobile No.:	91-9987078745 (Mr. Ashwin Shah)
Fax No.:	91-22-28733724
E-Mail :	sca1952@hotmail.com info@lotusveneers.in
Website :	http://www.lotusveneers.in
Location :	Owned
Warehouse 1 :	Godown X 30, Raj Laxmi Commercial Complex, Kalher, Bhiwandi, Thane, Maharashtra, India
Location :	Rented
Warehouse 2 :	Godown V 23, Raj Laxmi Commercial Complex, Kalher, Bhiwandi, Thane, Maharashtra, India
Location :	Rented
Warehouse 3 :	Godown W 2, Raj Laxmi Commercial Complex, Kalher, Bhiwandi, Thane, Maharashtra, India
Location :	Rented
Warehouse 4 :	AG-8, Rajlaxmi Commercial Complex, Opposite Durgesh Park, Kalher, Bhiwandi, Thane, Maharashtra, India
Location :	Rented

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Ashwin Suryakant Shah

Designation :

Director

Address :

7, Premswaroop Cooperative Society, Shree Nagar Colony, Mumbai - 400062, Maharashtra, India

Date of Birth/Age :

12.03.1951

Date of Appointment :

22.07.1997

DIN No.:

01119872

Name :

Mrs. Pratibha Ashwin Shah

Designation :

Director

Address :

7, Premswaroop Cooperative Society, Shree Nagar Colony, Mumbai - 400062, Maharashtra, India

Date of Birth/Age :

08.11.1950

Date of Appointment :

01.04.1999

DIN No.:

01119994

Name :

Mr. Tapan Ashwin Shah

Designation :

Director

Address :

7, Premswaroop Cooperative Society, Shree Nagar Colony, Mumbai - 400062, Maharashtra, India

Date of Birth/Age :

10.01.1991

Date of Appointment :

30.09.2010

DIN No.:

02698385

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	Company/ LLP Status	Defaulting status
1	U20200MH1997PTC109531	LOTUS VENEERS PRIVATE LIMITED	Director	30/09/2010	06/08/2009	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Ashwin Shah	1515	42.44
Pratibha Shah	1555	43.56
Nutan Khansaheb	100	2.80
Trupti Panchal	40	1.12
Ankur Desai	200	5.60
Prahlad Desai	100	2.80
Rekha Shah	40	1.12
Ranjana Shah	20	0.56
Total	3570	100.00

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	96.66
Other top fifty shareholders	3.34
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Wood based Products.
Imports :
Products :	Raw Material
Countries :	· Pakistan · China · Turkey · Romania
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers

No. of Employees :

7 (Approximately)

Bankers :

· Bank of Baroda

Khand Bazar Branch, Masjid Bunder, Khand Bazar, Mumbai - 400003, Maharashtra, India

Facilities :

SECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
LONG-TERM BORROWINGS
Term Loans Bank of Baroda	0.390	0.331
SHORT TERM BORROWINGS
Bank of Baroda Vehicle Loans	5.292	3.476
Bank of Baroda	0.000	0.159
Reliance Capital Limited (Secured against hypothecation of Car)	0.000	0.182
Total	5.682	4.148

Banking Relations :	--
Financial Institution :	Reliance Capital Limited
Auditors :
Name :	S C Aythora Chartered Accountant
Address :	C/102, Arihant, Govind Nagar, Sodawala Lane, Borivali, Mumbai – 400092, Maharashtra, India
Tel. No.:	91-22-28905748
Income-tax PAN of auditor or auditor's firm :	AADPA7355H

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000	Equity Shares	Rs. 100/- each	Rs. 0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,570	Equity Shares	Rs. 100/- each	Rs. 0.357 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.357	0.357	0.357
(b) Reserves & Surplus	15.039	14.653	13.291
(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)	15.396	15.010	13.648
(3) Non-Current Liabilities
(a) long-term borrowings	0.390	0.331	0.182
(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)	0.390	0.331	0.182
(4) Current Liabilities
(a) Short term borrowings	10.892	7.448	6.313
(b) Trade payables	4.618	10.343	2.914
(c) Other current liabilities	0.000	0.100	2.124
(d) Short-term provisions	0.633	1.588	0.100
Total Current Liabilities (4)	16.143	19.479	11.451
TOTAL	31.929	34.820	25.281
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1.213	1.376	0.809
(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	0.005	0.005	0.005
(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	1.218	1.381	0.814
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	13.856	13.731	9.825
(c) Trade receivables	13.764	14.871	11.403
(d) Cash and cash equivalents	2.126	4.092	2.465
(e) Short-term loans and advances	0.965	0.745	0.774
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	30.711	33.439	24.467
TOTAL	31.929	34.820	25.281

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	51.428	54.299	48.349
		Other Income	0.193	1.023	0.091
		TOTAL (A)	51.621	55.322	48.440
Less	EXPENSES
		Cost of Materials Consumed	42.542	45.361	40.043
		Employees benefits expense	2.384	2.828	2.597
		Other expenses	4.606	4.326	3.412
		TOTAL (B)	49.532	52.515	46.052
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.089	2.807	2.388
Less	FINANCIAL EXPENSES (D)		1.253	0.496	1.006
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.836	2.311	1.382
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.259	0.318	0.185
	PROFIT BEFORE TAX (E-F) (G)		0.577	1.993	1.197
Less	TAX (H)		0.191	0.631	0.370
	PROFIT AFTER TAX (G-H) (I)		0.386	1.362	0.827
	IMPORTS
		Trading Goods	41.695	46.791	39.943
	Earnings Per Share (Rs.)		108.14	381.39	213.52

Expected Sales (2013-2014): Rs. 40.000 Millions (Due to Market Down)

The above information has been parted by Mr. Ashwin Shah (Director)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.75	2.46	1.71
Net Profit Margin (PBT/Sales)	(%)	1.12	3.67	2.48
Return on Total Assets (PBT/Total Assets}	(%)	1.81	5.72	4.74
Return on Investment (ROI) (PBT/Networth)		0.04	0.13	0.09
Debt Equity Ratio (Total Debt/Networth)		0.73	0.52	0.48
Current Ratio (Current Asset/Current Liability)		1.90	1.72	2.14

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
Share Capital	0.357	0.357	0.357
Reserves & Surplus	13.291	14.653	15.039
Net worth	13.648	15.010	15.396
long-term borrowings	0.182	0.331	0.390
Short term borrowings	6.313	7.448	10.892
Total borrowings	6.495	7.779	11.282
Debt/Equity ratio	0.476	0.518	0.733

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
Sales	48.349	54.299	51.428
		12.306	-5.287

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. in Millions)	(Rs. in Millions)	(Rs. in Millions)
Sales	48.349	54.299	51.428
Profit	0.827	1.362	0.386
	1.71%	2.51%	0.75%

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	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%	Yes
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	80008241	25/05/2013 *	14,000,000.00	BANK OF BARODA	KHAND BAZAR BRANCH, 129/131, KAZI SAYED STREET, KHAND BAZAR, MUMBAI - 400003, MAHARASHTRA, INDIA	B77449304
2	90144985	21/02/2004	20,100.00	THE SHAMRAO VITHAL CO-OP. BANK LIMITED	VILE PARLE BRANCH, MUMBAI - 400057, MAHARASHTRA, INDIA	-

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2013 (Rs. In Millions)	31.03.2012 (Rs. In Millions)
SHORT TERM BORROWINGS
Ashwin Suryakant Shah		0.581
Ashwin Suryakant Shah (HUF)		2.200
P.A. Shah		0.850
Total	5.600	3.631

CHANGE OF ADDRESS:

The Registered office of the company has been shifted 162/1, Jawahar Nagar, Goregaon (West), Mumbai – 400062, Maharashtra, India to the present address w.e.f.02.03.2007.

FIXED ASSETS:

· Furniture and Fixture

· Office Equipments

· Computer

· Vehicles

· Mobile Phone

· Refrigerator

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. 61.20
UK Pound	1	Rs. 120.35
Euro	1	Rs. 84.95

INFORMATION DETAILS

Information Gathered by :	PRT
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
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	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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.