MIRA INFORM REPORT

Report Date :

13.09.2014

IDENTIFICATION DETAILS

Name :	A. K. LUMBERS LIMITED
Registered Office :	92/4, WHS Block II, Kirti Nagar, New Delhi – 110015
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	09.03.2000
Com. Reg. No.:	55-104297
Capital Investment / Paid-up Capital :	Rs. 20.533 Millions
CIN No.: [Company Identification No.]	U20120DL2000PLC104297
IEC No.:	0500017166
PAN No.: [Permanent Account No.]	AACCA6546N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing, Processing and Selling of Timber and Wood and related Products.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 158000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject was originally set up in 1987 as a proprietary concern, and was reconstituted as a public limited company in 2000. The company possess a moderate financial profile marked by an acceptable networth base comprising of low reserves along with significant gearing, albeit major portion have been paid off which slightly supports the liquidity position. Management has reported sufficient revenue base, amid modest scale of operations, further constrained by low net profitability margins as a result of low value adding nature of the business. However, trade relations seem to be fair. Business is active. Payment terms are reported as slow but correct. In view of extensive experience of the promoters along with the extension of corporate guarantees by the subject to other group companies, it 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 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

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: BB-
Rating Explanation	Moderate risk of default regarding timely servicing of financial obligations
Date	08.11.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating : A4+
Rating Explanation	Minimal degree of safety and very high credit risk
Date	08.11.2013

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 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Ramsvarda
Designation :	Head International Business
Contact No.:	Not Divulged
Date :	04.09.2014

LOCATIONS

Registered Office :	92/4, WHS Block II, Kirti Nagar, New Delhi – 110015, India
Tel. No.:	91-11-41421758/ 41421464/ 25462789/ 5458416/ 5470061/ 5474621/ 5481576/ 30929824/ 30972555
Mobile No.:	91-9810148220 (Mr. Atul)
Fax No.:	91-11- 5483874/ 25259157/ 41421360
E-Mail :	jindalak@satyam.net.in info@aklumbers.com padmadinesh@yahoo.com
Website :	http://www.aklumbers.com
Factory :	73/2, Assam Timber Market, Swarn Park, Mundka, Nangloi, New Delhi – 110041, India
Tel. No.:	91-11-28341001/ 5474621/ 5481576/ 5458416/ 28341005
Fax No.:	91-11-28341006/ 5483874
Factory 2 :	Mithi Rohar, N.H.-8, Kandla Port, Gandhi Dham, Gujarat, India
Tel. No.:	91-2836-309832/ 327055
Fax No.:	91-2836-237341
Factory 3 :	Sony Path, Haryana, India
Tel No.:	91-130-3294777
Factory 4 :	132, assam timber market, rajdhani park, nangloi, new delhi – 110041, delhi, india
Tel. No.:	91 11-28341001 / 05 / 5474621 / 5481576 / 5481576 / 41421758 / 41421464
Fax No.:	91-11-41421360 / 28341005 / 28341006
Branch Office :	Gandhi Dham, Survey No. 237, Chudwa Village, Gandhi Dham, Gujarat, India
Tel No.:	91-2836-32929856

DIRECTORS

As on: 30.09.2013

Name :

Mr. Atul Kumar Jindal

Designation :

Managing Director

Address :

297, Ambica Vihar, Paschim Vihar, New Delhi, India

Date of Birth/Age :

02.09.1969

Date of Appointment :

28.09.2009

PAN No.:

AAJPJ0286A

DIN No.:

01187828

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	U74899DL1990PTC042264	JINDAL WOOD PRODUCTS PRIVATE LIMITED	Managing director	31/03/2014	05/12/1990	-	Active	NO
2	U20120DL2000PLC104297	A K LUMBERS LIMITED	Managing director	28/09/2009	09/03/2000	-	Active	NO
3	U74899DL1975PTC007652	PUNJAB METAL WORKS PRIVATE LIMITED	Director	31/12/2005	31/12/2005	-	Active	NO

Name :

Mr. Amit Jindal

Designation :

Whole Time Director

Address :

297, Ambica Vihar, Paschim Vihar, New Delhi, India

Date of Birth/Age :

08.02.1973

Date of Appointment :

28.09.2009

PAN No.:

AAIPJ2644K

DIN No.:

01051655

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	U74899DL1990PTC042264	JINDAL WOOD PRODUCTS PRIVATE LIMITED	Director	05/12/1990	05/12/1990	-	Active	NO
2	U20120DL2000PLC104297	A K LUMBERS LIMITED	Whole-time director	28/09/2009	09/03/2000	-	Active	NO
3	U74899DL1975PTC007652	PUNJAB METAL WORKS PRIVATE LIMITED	Director	31/12/2005	31/12/2005	-	Active	NO

Name :

Ms. Sharda Jindal

Designation :

Director

Address :

297, Ambica Vihar, Paschim Vihar, New Delhi, India

Date of Birth/Age :

16.05.1946

Date of Appointment :

09.03.2000

Pan No.:

AAHPJ5842L

DIN No.:

01051730

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	U20120DL2000PLC104297	A K LUMBERS LIMITED	Director	09/03/2000	09/03/2000	-	Active	NO
2	U74899DL1990PTC042264	JINDAL WOOD PRODUCTS PRIVATE LIMITED	Director	01/01/2006	01/01/2006	-	Active	NO

Name :

Mr. Prashant Goel

Designation :

Director

Address :

Near Hotel Empire, Plot No.591-D, Ward -98, Bharat Nagar, Gandhidham, Kuth – 370201, Gujarat, India

Date of Birth/Age :

07.07.1975

Date of Appointment :

09.03.2000

Pan No.:

AEGPG6552F

DIN No.:

01327305

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	U20120DL2000PLC104297	A K LUMBERS LIMITED	Director	09/03/2000	09/03/2000	-	Active	NO
2	U74899DL1975PTC007652	PUNJAB METAL WORKS PRIVATE LIMITED	Director	31/12/2005	31/12/2005	15/03/2012	Active	NO
3	U74899DL1990PTC042264	JINDAL WOOD PRODUCTS PRIVATE LIMITED	Whole-time director	01/04/2012	01/01/2006	-	Active	NO
4	U20219DL2011PTC234343	FAITH LUMBER PRIVATE LIMITED	Director	19/10/2011	19/10/2011	-	Active	NO

Name :

Mrs. Garima Jindal

Designation :

Director

Address :

297, Ambica Vihar, Paschim Vihar, New Delhi, India

Date of Birth/Age :

15.10.1977

Date of Appointment :

01.11.2002

PAN No.:

AAIPJ6399K

DIN No.:

00718102

Name :

Mrs. Rakhi Jindal

Designation :

Director

Address :

297, Ambica Vihar, Paschim Vihar, New Delhi, India

Date of Birth/Age :

21.11.1970

Date of Appointment :

01.01.2006

PAN No.:

AAIPJ2645J

DIN No.:

01051750

KEY EXECUTIVES

Name :	Mr. Ramsvarda
Designation :	Head International Business

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2013

Names of Shareholders	No. of Shares	% of Holding
Amar Chand Jindal		195000
Atul Jindal		686500
Amit Jindal		360000
Sharda Jindal		260500
Prashant Goel		19800
Rakhi Jindal		251000
Garina Jindal		255000
Atul Jindal (HUF)		8500
Neeraj Garag		17000
Total		2053300

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2013

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing, Processing and Selling of Timber and Wood and related Products.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Licensed Capacity	Installed Capacity	Actual Production
CFT	NA	NA	427061
RFT	NA	NA	2142998

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· Oriental Bank of Commerce Limited, Mansarover Garden, New Delhi – 110015, Delhi, India

· ICICI Bank Limited, Landmarkplace Cource Circle, Alkapuri, Baroda – 390015, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2013	As on 31.03.2012
	(Rs. In Millions)
LONG TERM BORROWINGS:
OBC term loan	0.376	0.203
BMW india car loan	0.000	0.296
ICICI bank home loan	27.626	27.315
HDFC hydra loan	0.000	0.031
SHORT TERM BORROWINGS:
Oriental bank of commerce	51.557	51.720
FLC/ Buyers credit	30.955	96.930
Total	110.514	176.495

Banking Relations :	--
Financial Institutions :	Tata Capital Housing Finance Limited, One Forbes, Dr V B Gandhi Marg, Fort, Mumbai – 400001, Maharashtra, India
Auditors :
Name :	Padam dinesh and company Chartered Accountants
Address :	11/6-B, 2^nd floor, shanti chambers, pusa road, new delhi – 110005, delhi, india
Tel. No.:	91-11-47060111 (10 Lines)
Fax No.:	91-11-47060119
E-Mail :	padamdinesh@yahoo.com
PAN No.:	AAAFP9361P
Enterprises Under Control or Influence of Such KMP And Individual :	· Jindla Wood Products Private Limited · Punjab Metal Works Private Limited · Jindal Bandhu Kashth Bhandar

CAPITAL STRUCTURE

As on: 30.09.2013

Authorized Capital: Rs. 23.000 Millions

Issued, Subscribed & Paid-up Capital: Rs. 21.903 Millions

As on: 31.03.2013

Authorized Capital:

No. of Shares	Type	Value	Amount
2300000	Equity Shares	Rs.10/- each	Rs. 23.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
20533300	Equity Shares	Rs.10/- each	Rs. 20.533 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	20.533	20.533	20.533
(b) Reserves & Surplus	18.892	16.700	15.096
(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)	39.425	37.233	35.629
(3) Non-Current Liabilities
(a) long-term borrowings	35.354	33.045	38.279
(b) Deferred tax liabilities (Net)	0.000	0.000	0.073
(c) Other long term liabilities	2.608	2.608	0.989
(d) long-term provisions	0.992	0.909	0.709
Total Non-current Liabilities (3)	38.954	36.562	40.050
(4) Current Liabilities
(a) Short term borrowings	82.512	148.650	162.488
(b) Trade payables	31.058	52.289	16.876
(c) Other current liabilities	3.051	7.646	9.421
(d) Short-term provisions	0.000	0.000	0.244
Total Current Liabilities (4)	116.621	208.585	189.029
TOTAL	195.000	282.380	264.708
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	57.950	48.288	32.036
(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	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.092	(0.045)	0.000
(d) Long-term Loan and Advances	0.451	0.737	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	58.493	48.980	32.036
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	54.688	143.529	70.367
(c) Trade receivables	67.127	65.874	120.895
(d) Cash and cash equivalents	7.477	14.697	22.171
(e) Short-term loans and advances	7.215	9.300	19.171
(f) Other current assets	0.000	0.000	0.068
Total Current Assets	136.507	233.400	232.672
TOTAL	195.000	282.380	264.708

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	334.491	401.107	375.872
		Other Income	0.870	1.048	0.661
		TOTAL (A)	335.361	402.155	376.533
Less	EXPENSES
		Cost of Materials Consumed	304.672	370.310	346.596
		Direct expenses	1.811	2.511	1.914
		Employees benefits expense	2.973	3.667	2.626
		Other expenses	9.023	9.207	8.108
		TOTAL (B)	318.479	385.695	359.244
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		16.882	16.460	17.289
Less	FINANCIAL EXPENSES (D)		12.331	12.469	11.408
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.551	3.991	5.881
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.453	1.497	1.415
	PROFIT BEFORE TAX (E-F) (G)		3.098	2.494	4.466
Less	TAX (H)		0.905	0.891	1.425
	PROFIT AFTER TAX (G-H) (I)		2.193	1.603	3.041
	Earnings Per Share (Rs.)		1.07	0.78	1.48

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.65	0.40	0.81
Net Profit Margin (PBT/Sales)	(%)	0.93	0.62	1.19
Return on Total Assets (PBT/Total Assets}	(%)	1.59	0.88	1.69
Return on Investment (ROI) (PBT/Networth)		0.08	0.07	0.13
Debt Equity Ratio (Total Debt/Networth)		2.99	4.88	5.63
Current Ratio (Current Asset/Current Liability)		1.17	1.12	1.23

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	20.533	20.533	20.533
Reserves & Surplus	15.096	16.700	18.892
Net worth	35.629	37.233	39.425
long-term borrowings	38.279	33.045	35.354
Short term borrowings	162.488	148.650	82.512
Total borrowings	200.767	181.695	117.866
Debt/Equity ratio	5.635	4.880	2.990

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	375.872	401.107	334.491
		6.714	(16.608)

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	375.872	401.107	334.491
Profit	3.041	1.603	2.193
	0.81%	0.40%	0.66%

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	No
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	--
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	Yes

UNSECURED LOAN

Particulars	As on 31.03.2013	As on 31.03.2012
	(Rs. In Millions)
LONG TERM BORROWINGS:
From related parties	7.352	5.200
Total	7.352	5.200

INDEX OF CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10483744	23/03/2013	28,100,000.00	TATA CAPITAL HOUSING FINANCE LIMITED	ONE FORBES, DR V B GANDHI MARG, FORT, MUMBAI - 400001, MAHARASHTRA, INDIA	B79314662
2	10276233	09/09/2011 *	155,000,000.00	ORIENTAL BANK OF COMMERCE LIMITED	MANSAROVER GARDEN, INDIA, NEW DELHI - 110015, DELHI, INDIA	B22267504
3	10246817	28/09/2010	30,000,000.00	ICICI BANK LIMITED	LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA	A96880356
4	10186943	27/07/2011 *	240,000,000.00	ORIENTAL BANK OF COMMERCE LIMITED	MANSAROVER GARDEN, INDIA, NEW DELHI - 110015, DELHI, INDIA	B19135748
5	10158732	09/04/2009	2,500,000.00	ORIENTAL BANK OF COMMERCE LIMITED	MANSAROVAR GARDEN, H.O. HANS BHAWAN, NEW DELHI - 110027, DELHI, INDIA	A62484100
6	10096769	12/02/2008	850,000.00	ORIENTAL BANK OF COMMERCE	F-7, SC-1, MANSAROVER GARDEN, NEW DELHI - 110015, DELHI, INDIA	A35758499
7	90369743	08/02/2006	8,100,000.00	CATHOLIC SYRIAN BANK LTD.	B- 3/7 PHASE- II, ASHOK VIHAR, NEW DELHI, DELHI, INDIA	-
8	80019975	15/12/2006 *	48,500,000.00	ORIENTAL BANK OF COMMERCE LTD.	MANSAROVER GARDEN, NEW DELHI, NEW DELHI - 110015, DELHI, INDIA	-
9	90063187	22/08/2005 *	4,000,000.00	ORIENTAL BANK OF COMMERCE	MANSAROVER GARDEN, NEW DELHI, DELHI, INDIA	-
10	90037166	21/12/2004 *	33,980,000.00	ORIENTAL BANK OF COMMERCE	MANSAROVAR GARDEN, NEW DELHI, DELHI, INDIA	-

FIXED ASSETS:

· Plant and Machinery

· Generator

· Electric Installation and Materials

· Office Equipment

· Air Conditioner

· Furniture and Fixture

· Hydraulic Mobile Crane

· Computer

· Printer

· Motor Cycle

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 judgment 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 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.60.84
UK Pound	1	Rs.98.72
Euro	1	Rs.78.64

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUB
Report Prepared by :	JAY

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	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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		32

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	--

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