MIRA INFORM REPORT

Report No. :	320030
Report Date :	02.05.2015

IDENTIFICATION DETAILS

Name :	AKASH INDUSTRIES
Registered Office :	209, Sindhu I, Plot No. 309, Ward 12/B, Gandhidham-370201, Gujarat
Tel No.:	91-2836-224377
Country :	India
Financials (as on) :	31.03.2015
Year of Establishment :	1997
Capital Investment / Paid-up Capital :	Rs. 8.203 Million (AS ON 31.03.2014)
IEC No.:	Not Available
TIN No.:	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Sole Proprietary Concern
Line of Business :	Manufacturer and Importers of Pine wood,  Pallets, Cooling Tower Timber, Flanges, Laggings, etc.
No. of Employees :	30 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 23000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established proprietary concern having moderate track record. External borrowing of the concern seems to be huge during 2014. However, trade relations are fair. Business is active. Payment terms are slow but correct. The concern can be considered for business dealings with some cautions.

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, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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. Akash Jain
Designation :	Proprietor
Contact No.:	91-9825226177
Date :	29.04.2015

LOCATIONS

Registered Office :	209, Sindhu I, Plot No.309, Ward 12/B, Gandhidham-370201, Gujarat, India
Tel. No.:	91-2836-224377
Mobile No.:	91-9825226177 (Mr. Akash Jain)
Fax No.:	91-2836-236392
E-Mail :	akashjain1972@gmail.com
Website :	http://www.akashindustries.com www.akashindustries.co.in
Area :	500 sq. ft.
Location :	Owned
Factory :	Kamakhya Luberman complex, Plot No.9/10, NH -8, Survey No.77/78, Padana, Kutch
Area :	2000 sq. ft.
Location :	Owned

SOLE PROPRIETOR

Name :	Mr. Akash Jain
Designation :	Proprietor
Date of Birth/Age :	42 years
Qualification :	CFA

BUSINESS DETAILS

Line of Business :	Manufacturer and Importers of Pine wood,  Pallets, Cooling Tower Timber, Flanges, Laggings, etc.
Products :	Cable drums Pallets Wooden pallets Pine planks Flanges
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Divulged
Imports :
Products :	Raw Material
Countries :	New Zealand Australia Switzerland
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

Reference :	TPT Forest Limited, New Zealand
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Wholesalers and Retailers

Reference :	Gujarat Guardian Limited, Gujarat, India
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

30 (Approximately)

Bankers :

Banker Name	HDFC Bank
Branch Address	Gandhidham, Gujarat, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

• Corporation Bank, India

Auditors :
Name :	Lahoti and Lahoti Chartered Accountants
Address :	Gandhidham, Gujarat, India
Memberships :	--
Collaborators :	--
Sister Concern :	Vikas Industries Address: 209, Sindhu I, Plot No.309, Ward 12/B, Gandhidham-370201, Gujarat, India Line of Business: Manufacturer of Premium Quality Cable Drums,  Pallets, Cooling Tower Timber, Flanges, Laggings, etc.

CAPITAL STRUCTURE

As on: 31.03.2014

Particulars	Amount (Rs. In Millions)	Particulars	Amount (Rs. In Millions)
Drawings A/c	3.198	Opening Balance A/c	8.064
Balance C/D	8.203	Net Profit A/c	3.337
Total	11.401	Total	11.401

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2015
Sales Turnover (Approximately)	460.000

The above information has been parted by Mr. Akash Jain.

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2014	31.03.2013
SHAREHOLDERS FUNDS
1] Share Capital		8.203	8.064
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		8.203	8.064
LOAN FUNDS
1] Secured Loans		1.082	1.100
2] Unsecured Loans		60.324	44.771
TOTAL BORROWING		61.406	45.871
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		69.609	53.935
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.774	6.220
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
		44.288	13.412
	Sundry Debtors	68.965	74.079
	Cash & Bank Balances	5.271	10.175
	Investment	20.988	17.899
	Deposited	0.273	0.273
	Loans & Advances	1.846	0.791
	Cash in Hand	0.303	0.506
Total Current Assets		141.934	117.135
Less : CURRENT LIABILITIES & PROVISIONS
	Tax and Duties	9.425	2.747
	Sundry Creditors	69.639	66.582
	Provisions	0.035	0.091
Total Current Liabilities		79.099	69.420
Net Current Assets		62.835	47.715
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		69.609	53.935

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013
	SALES
		Income	342.545	317.654
		Other Income	2.859	1.141
		TOTAL	345.404	318.795
Less	EXPENSES
		Cost of Goods Sale	272.245	252.482
		Direct Expenses	50.335	47.804
		Advertising and Sales promotion Expenses	0.231	0.178
		Audit Fees	0.017	0.013
		Bank Charges	0.249	0.255
		Canteen Expenses	0.180	0.180
		Car expenses	0.200	0.140
		Car Insurance	0.058	0.033
		Cash Discount	0.022	0.018
		Chakkda Charges	0.050	0.028
		Claim	0.907	0.023
		Commission	0.074	1.021
		Consultation Charges	0.032	0.041
		Conveyance	0.011	0.033
		Donation	0.015	0.017
		Energy Charges	4.200	0.313
		Fright Expenses	0.184	3.674
		Insurance	6.217	0.229
		Interest	2.275	4.005
		Interest charges	0.014	0.026
		LC Charges	0.010	1.271
		License	0.002	0.019
		Membership fees	0.014	0.014
		miscellaneous Expenses	0.098	0.096
		Mobile	0.034	0.001
		News paper	0.013	0.014
		Postage	1.726	0.023
		Printing and Stationery	0.242	1.248
		Salary	0.571	0.133
		Spares and Tools	0.867	1.119
		Travelling Expenses	0.000	0.069
		Water Expenses	0.000	0.143
		TOTAL	341.093	314.663
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		4.311	4.132
Less/ Add	DEPRECIATION/ AMORTISATION		0.974	1.004
	PROFIT/ (LOSS) AFTER TAX		3.337	3.128

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013
Net Profit Margin (PAT/Sales)	(%)	0.97	0.98
Return on Total Assets (PBT/Total Assets}	(%)	3.04	3.53
Return on Investment (ROI) (PBT/Networth)		0.53	0.51
Debt Equity Ratio (Total Debt /Networth)		7.49	5.69
Current Ratio (Current Asset/Current Liability)		1.79	1.69

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	317.654	342.545	460.000
		7.836	34.289

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	No
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 two 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	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	No
25]	Conduct of the banking account	-----------
26]	Buyer visit details	-----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	No
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

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 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.63.58
UK Pound	1	Rs.97.99
Euro	1	Rs.70.53

INFORMATION DETAILS

Information Gathered by :	SPR
Analysis Done by :	SUB
Report Prepared by :	KVT

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
-- PROFITABILITY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	2
--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		30

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.