MIRA INFORM REPORT

Report Date :

24.11.2014

IDENTIFICATION DETAILS

Name :	LUNKER AGENCIES PRIVATE LIMITED
Registered Office :	City Survey No. 1543, Pratham Shetty Oni, Hubli - 580028 Karnataka
Country :	India
Financials (as on) :	31.03.2013
1Date of Incorporation :	19.07.2005
Com. Reg. No.:	08-036788
Capital Investment / Paid-up Capital :	Rs. 10.000 Millions
CIN No.: [Company Identification No.]	U51396KA2005PTC036788
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of paper
No. of Employees :	12 (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 62000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Management has failed to file latest financials of FY 14, with the statutory authorities. As per available of FY13, management has reported a significant decline in its revenue as well as net profitability from its operations. However, trade relations seem to be fair. Business is active. Payment terms are reported as slow but correct. In view of moderation in its business profile, the company can be considered for business dealings with 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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had illfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Not Available

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Rahul Kochander
Designation :	Account Head
Contact No.:	9538013121
Date :	22.11.2014

LOCATIONS

Registered Office :	City Survey No. 1543, Pratham Shetty Oni, Hubli - 580028 Karnataka, India
Tel. No.:	91-836-2216500
Mobile No.:	91-9538013121 (Mr. Rahul)
E-Mail :	lunker@sancharnet.in
Location :	Owned
Corporate Office:	Goutham Building, Prathamshetti Oni, Kancgalli, Huli, Dharwad, India

DIRECTORS

As on 30.09.2013

Name :	Mr. Goutam Lunker
Designation :	Director
Address :	Lunker Agencies. Gautam Building, Pratham Shetty Oni. Kanchgar Galli, Hubli, Dharwad - 580028, Karnataka, India
Date of Birth/Age :	19.07.1966
Date of Appointment :	19.07.2005
DIN No.:	01908435
Name :	Mr. Kevalchand Lunkar
Designation :	Director
Address :	5, Prtam Shetty Oni, Hubli, Dharawad – 580028, Karnataka, India
Date of Birth/Age :	01.02.1961
Date of Appointment :	19.07.2005
PAN No.:	01908521
Name :	Mr. Rajendra Kumar Lunker
Designation :	Director
Address :	H No. 14752/1, Gautam Building, Pratham Shetti Oni, Hubli, Dharwad – 580028, Karnataka, India
Date of Birth/Age :	12.05.1969
Date of Appointment :	16.10.2005
PAN No.:	00981235
Name :	Mr. Nikhil Lunker
Designation :	Director
Address :	Kanchagar Galli. Pratamshetti Oni, Gautam Building, Hubli, Dharwad – 580028,Karnataka, India
Date of Birth/Age :	12.09.1988
Date of Appointment :	03.10.2009
DIN No.:	01743764
Name :	Mr. Vikas Lunkar
Designation :	Director
Address :	C/O Lunkar Agencies, Goutam Bldg, Pratham Shetty Oni, Near Jain Temple, Hubli, Dharwad – 580028, Karnataka, India
Date of Birth/Age :	20.07.1984
Date of Appointment :	03.10.2009
DIN No.:	01743839

KEY EXECUTIVES

Name :	Mr. Rahul Kochander
Designation :	Account Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

Names of Shareholders	No. of Shares
Goutam Lunker	22896
Kevalchand Lunker	41520
Sadgunabai Lunker	5160
Kusum G Lunker	6960
Manorama K LUnker	5160
Rajendra S Lunker	18229
Vasanth Lunker	1
Kewalchand s Lunker - HUF	1
Sobhagamal S Lunker - HUF	1
Vikas Lunker	1
Nikhil K Lunker	1
Total	100000

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 :	Trader of Paper
Products :	· Continuous Computer Stationery · Paper Packets · Duplex Boards · Copier Paper · Paper · Preprinted Paper
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· West Coast Paper Mill, Karnataka

Customers :

Wholesalers and Retailers

· Raj Group, Hubli

No. of Employees :

12 (Approximately)

Bankers :

Banker Name :	Corporation Bank
Branch Address :	Coen Road Branch, Hubli – 580020, Karnataka, India
Facilities :	-
Person Name :	-
Contact No.:	-
Report :	-

Banker Name :	The Saraswat Co-operative Bank Limited
Branch Address :	Divate Complex, Club Road, Hubli – 580029, Karnataka, India
Facilities :	-
Person Name :	-
Contact No.:	-
Report :	-

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long Term Borrowing
Term Loan From Bank
The Saraswat Co – operative Bank	0.000	0.489
Short Term Borrowings
Secured Loan from Banks
The Saraswat Co-op Bank - Hundi Loan	5.263	0.000
The Saraswat Co-op Bank - Cash Credit	40.414	31.658
ING Vysya	1.784	0.000
Total	47.461	32.147

Long Term Borrowing

Term Loan from Banks:

Security :

· The Term Loans are secured by way of Hypothecation of Vehicle.

Repayment :

· Repayable in equated periodic instalments of 36 months from the date of respective loan. These are repayable by 2013-14 and carry a rate of Interest of 9.50% p.a.

· Repayable in equated periodic instalments of 36 months from the date of respective loan. These are repayable by 2013-14 and carry a rate of Interest of 11.50% p.a.

Short Term Borrowings:

Security:

The cash Credit and Hundi Loans are primarily secured by hypotication stock in trade, receivable’s and Bills accepted Further they are also secured by collateral security by way of equitable Mortgage of properly belonging to the Directors and their relatives of the company situated at Hubli and Navalur Village.

Repayment:

Repayable on demand and is available for 12 months from the date of sanction/renewal. The roan carry a rate of interest of 14.50 o/o p.a.

working capital Loans are being guaranteed by ail the directors of the company

Banking Relations :	---
Auditors :
Name :	Chenni Associates Chartered Accountant
Address :	2nd Floor,Durgadevi Temple Complex, Dajibanpeth, Hubli – 580028, Karnataka, India
Tel. No.:	91-836-2363654
PAN No.:	ABHPC1991N
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs.100/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs.100/- each	Rs. 10.000 Millions

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	10.000	5.640	5.640
(b) Reserves & Surplus	11.690	10.238	7.801
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.980	0.000
Total Shareholders’ Funds (1) + (2)	21.690	16.858	13.441
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.489	1.371
(b) Deferred tax liabilities (Net)	0.081	0.095	0.128
(c) Other long term liabilities	32.821	38.096	45.224
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	32.902	38.680	46.723
	0.000
(4) Current Liabilities
(a) Short term borrowings	47.461	31.658	109.650
(b) Trade payables	2.265	13.163	64.608
(c) Other current liabilities	0.788	0.959	0.959
(d) Short-term provisions	0.000	0.362	1.315
Total Current Liabilities (4)	50.514	46.142	176.532
TOTAL	105.106	101.680	236.696
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	37.887	3.956	4.557
(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	0.035	0.035	0.035
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3.935	3.825	3.765
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	41.857	7.816	8.357
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	11.325	13.285	13.200
(c) Trade receivables	48.423	77.323	211.654
(d) Cash and cash equivalents	0.696	0.442	0.332
(e) Short-term loans and advances	2.681	2.692	3.052
(f) Other current assets	0.124	0.122	0.101
Total Current Assets	63.249	93.864	228.339
TOTAL	105.106	101.680	236.696

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		TOTAL INCOME	290.808	545.738	638.867
Less	EXPENSES
		TOTAL EXPENSES	287.970	541.259	634.393
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		2.838	4.479	4.474
Less/ Add	DEPRECIATION/ AMORTISATION		0.582	0.683	0.694
	PROFIT BEFORE TAX		2.256	3.796	3.780
Less	TAX		0.804	1.359	1.182
	PROFIT AFTER TAX		1.452	2.437	2.598
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.238	4.801	4.519
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	0.000
		Dividend	0.000	0.000	0.000
		Tax on Dividend	0.000	0.000	2.316
	BALANCE CARRIED TO THE B/S		8.690	7.238	4.801
	Earnings Per Share (Rs.)		14.52	43.20	46.06

Particulars	31.03.2014
Sales Turnover (Approximately)	200.000 (Approximately)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin (PAT / Sales)	(%)	0.50	0.45	0.41
Operating Profit Margin (PBIDT/Sales)	(%)	0.98	0.82	0.70
Return on Total Assets (PBT/Total Assets}	(%)	2.15	3.73	1.60
Return on Investment (ROI) (PBT/Networth)		0.10	0.23	0.28
Debt Equity Ratio (Total Debt /Networth)		2.19	1.91	8.26
Current Ratio (Current Asset/Current Liability)		1.25	2.03	1.29

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	5.640	5.640	10.000
Share Application money pending allotment	0.000	0.980	0.000
Reserves & Surplus	7.801	10.238	11.690
Net worth	13.441	16.858	21.690
long-term borrowings	1.371	0.489	0.000
Short term borrowings	109.650	31.658	47.461
Total borrowings	111.021	32.147	47.461
Debt/Equity ratio	8.260	1.907	2.188

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	638.867	545.738	290.808
		(14.577)	(46.713)

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	638.867	545.738	290.808
Profit	2.598	2.437	1.452
	0.41%	0.45%	0.50%

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%	----------------------
14]	Estimation for coming financial year	(No)
15]	Capital in the business	(Yes)
16]	Details of sister concerns	(No)
17]	Major suppliers	(Yes)
18]	Major customers	(Yes)
19]	Payments terms	(Yes)
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)

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10258541	10/03/2014 *	40,000,000.00	THE SARASWAT CO-OPERATIVE BANK LTD	DIVATE COMPLEX, CLUB ROAD, HUBLI, Karnataka - 5800 29, INDIA	C04363800

* Date of charge modification

FIXED ASSETS:

· Furniture and Fixture

· Computer

· Mobile

· Air Conditioner

· Rea machine

· Telephone

· Camera

· Vehicle

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 records 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 records 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.61.85
UK Pound	1	Rs.97.01
Euro	1	Rs.77.62

INFORMATION DETAILS

Information Gathered by :	HNA
Analysis Done by :	SUB
Report Prepared by :	MTN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--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
DEFAULTER
--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.