MIRA INFORM REPORT

Report Date :

05.08.2011

IDENTIFICATION DETAILS

Name :	HARJIT PAPER AND MACHINERY PRIVATE LIMITED
Registered Office :	17, Sudharshan Nagar, 100 Feet Road, East Mohan Nagar, Amritsar – 143 001, Punjab
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.11.1995
Com. Reg. No.:	16-017286
Capital Investment / Paid-up Capital :	Rs.2.499 Millions
CIN No.: [Company Identification No.]	U29293PB1995PTC017286
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of a wide array of Industrial Paper Machinery, Pulp and Paper Mill Machinery Corrugation Machineries and Drum Plants etc.
No. of Employees :	70 (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 23000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears to be some dip in the turnover and profitability of the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Jotinder Singh
Designation :	General Manager
Contact No.:	91-9888998000
Date :	03.08.2011

LOCATIONS

Registered Office :	17, Sudharshan Nagar, 100 Feet Road, East Mohan Nagar, Amritsar – 143 001, Punjab, India
Tel. No.:	91-183-5097033 / 2583858 / 6545838
Mobile No.:	91-9876173102 (Mr. Satinder Singh) 91-9888998000 (Mr. Jotinder S.)
Fax No.:	91-183-5008276/ 5008275
E-Mail :	mail@harjitpapermachinery.com harjit_inds@yahoo.com
Website :	www.harjitpapermachines.com
Area :	1000 Sq.ft.
Location :	Owned
Factory :	C80/81 New Focal Point, Amritsar – 143 001, Punjab, India
Area :	2000 Sq.ft.
Location :	Owned
Overseas Office:	UK Varun Sharma, Marketing Manager UK 12 Francis Road, Hounslow, London. Tel No: +44-02085775684 Mobile No: +44-07789660622 Iran Ali Abbasi Marketing Manager (Iran), Khyaban Khayam, Nabshe Khyabane Passaje Saraaye Nezami, 2nd Floor, Pelake 8. Tehran – Iran. Tel No: +98-02155577931 Fax No: +98-02155577932 Mobile No: +98-0921933849

DIRECTORS

As on 30.09.2010

Name :	Mr. Harjit Jaswant Singh
Designation :	Director
Address :	H.No.4064/32, Bazar No.4, Kot Baba Deep Singh, Amritsar – 143 001, Punjab, India
Date of Birth/ Age:	47 Years
Qualification :	Graduate
Date of Appointment :	23.04.2002
DIN No.:	01784976
Name :	Mrs. Harjit Kaur
Designation :	Director
Address :	H.No.4064/32, Bazar No.4, Kot Baba Deep Singh, Amritsar – 143 001, Punjab, India
Date of Birth/ Age:	45 Years
Qualification :	Graduate
Date of Appointment :	20.11.1995
DIN No.:	01784981

KEY EXECUTIVES

Name :	Mr. Jotinder Singh
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Harjit Kaur	55500
Harjit Singh	59000
Shamsher Singh	8500
Harjinder Singh	7500
Narinder Singh	12700
Manjit Kaur	10500
Paramjit Kaur	28000
Jasbir Singh	11200
Biant Singh	2400
Balak Sharma	1000
Deepika Sharm	1000
Charanjit Kaur	10000
Dupinder Kaur	4500
Parveen Sharma	1000
Surinder Kaur	20000
Surinder Arora	5000
Dharminder Singh	5000
Satinder Bir Singh	600
Sarabjit Singh	1500
Amarjit Singh	5000
Total	249900

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of a wide array of Industrial Paper Machinery, Pulp and Paper Mill Machinery Corrugation Machineries and Drum Plants etc.
Products :	Paper Machines v Paper Pulp Machines v Paper Mill Machines
Exports :
Products :	Pulp and Paper Machinery
Countries :	v Dubai v Iran v Turkey v Sri Lanka v Bangladesh v Africa v Qatar
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

v Akhilesh Enterprises

v Ashok Kumar and Sons

v Bhilwari Polymers

v Bhandari Sales Corporation

v Shetna Ispat Udyog

v Gian Chand and Sons

v M.S. Industries

v Metro Traders and Machinery

v Jai Durga Paper Mill

v Staunch International

v Metro Traders and Machinery

v Quality Engineering Works

v Ramesh and Company

Customers :

Wholesalers and Paper Company

v Mangal Steel Udyog Private Limited

v Abbasi

v Durga Duplex Mills

v Keyhan Kaghaze Yazd

v Sigma Cores

v Sigma Cartoons Private Limited

v Saber Paper Limited

No. of Employees :

70 (Approximately)

Bankers :

v Union Bank of India, Manjith Mandi Branch, Amritsar – 143 001, Punjab, India

v HDFC Bank Limited

v Yes Bank

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Union Bank of India Car Loan	0.836	0.917
Union Bank of India C/C	6.348	4.042
Union Bank of India Bill Purchases A/C	0.000	5.364
Union Bank of India MTL	0.173	0.274
Union Bank of India	0.000	11.671
Chq. Reconciliation	0.000	5.300
Total	7.357	27.568

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Manjit Kaur	0.200	0.200
Beant Singh	0.020	0.020
Balak Singh	0.090	0.090
Charanjit Kaur	0.025	0.025
Dupinder Kaur	0.155	0.155
Deepika Sharma	0.090	0.090
Jasbir Singh	0.019	0.020
Manjit Kaur	0.095	0.094
Narinder Singh	0.309	0.310
Parmjit Kaur	0.179	0.178
Parveen Sharma	0.090	0.090
Surinder Kaur	0.124	0.124
Surinder Kaur Arora	0.050	0.050
Satinder Singh	0.042	0.042
Sarabjit Singh	0.033	0.033
Total	1.521	1.521

Banking Relations :	--
Auditors :
Name :	Lakhwinder Singh and Associates Chartered Accountants
Address :	Katra Baghian, Chowk Bijli, Hall Bazar, Amritsar – 143 001, Punjab, India
Tel. No.:	91-183-5051211/ 3296773/ 3296772/ 2589030 (Residence)
PAN No.:	ABBPB8815C
Associates/Subsidiaries :	Harjit Industries Address: 43, Sudharshan Nagar, 100 Feet Road, Amritsar, Punjab, India Activity: Manufacturer of Paper and Paper Board Machinery.

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
249900	Equity Shares	Rs.10/- each	Rs.2.499 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		2.499	2.499	0.983
2] Share Application Money		0.000	0.000	1.516
3] Reserves & Surplus		3.315	3.035	1.754
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		5.814	5.534	4.253
LOAN FUNDS
1] Secured Loans		7.358	27.568	34.785
2] Unsecured Loans		1.521	1.521	1.584
TOTAL BORROWING		8.879	29.089	36.369
DEFERRED TAX LIABILITIES		0.128	0.128	0.081
TOTAL		14.821	34.751	40.703
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.266	5.579	3.359
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12.808	17.934	16.695
	Sundry Debtors	57.544	53.474	26.936
	Cash & Bank Balances	1.661	2.619	1.722
	Other Current Assets	2.309	1.456	1.985
	Loans & Advances	0.073	0.135	0.353
Total Current Assets		74.395	75.618	47.691
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	64.840	46.378	10.115
	Other Current Liabilities	0.000	0.053	0.037
	Provisions	0.000	0.015	0.695
Total Current Liabilities		64.840	46.446	10.847
Net Current Assets		9.555	29.172	36.844
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14.821	34.751	40.703

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	27.080	87.689	40.841
		Other Income
		TOTAL	27.080	87.689	40.841
Less	EXPENSES
		Office Expenses	26.681	85.813	38.688
		Administrative Expenses
		Advertising Expenses
		TOTAL	26.681	85.813	38.688
	PROFIT BEFORE TAX		0.399	1.876	2.153
Less	TAX		0.120	0.595	0.050
	PROFIT AFTER TAX		0.279	1.281	2.103
	Earnings Per Share (Rs.)		1.12	5.13	NA

Particulars	31.03.2011 (Approximately)
Sales Turnover	160.000

Expected Sales (2011-2012): Rs.220.000 millions

The above information has been parted by Mr. Jotinder Singh (General Manager).

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.03	1.46	5.15
Return on Total Assets (PBT/Total Assets}	(%)	0.50	2.31	4.22
Return on Investment (ROI) (PBT/Networth)		0.07	0.34	0.51
Debt Equity Ratio (Total Liability/Networth)		12.68	13.65	11.10
Current Ratio (Current Asset/Current Liability)		1.15	1.63	4.40

LOCAL AGENCY FURTHER INFORMATION

FORM 8:

Corporate identity number of the company	U29293PB1995PTC017286
Name of the company	HARJIT PAPER AND MACHINERY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Sudharshan Nagar East, Mohan Nagar, Amritsar – 143 001, Punjab, India.
This form is for	Modification Charge
Charge identification number of the charge to be modified	80056280
Type of charge	Book Debts Floating Charge Others
Particular of charge holder	Union Bank of India, Manjith Mandi Branch, Amritsar – 143 001, Punjab , India.
Nature of instrument creating charge	1) Hypothecation Agreement of Goods and Debts (SD- 06) 2) D.P Note
Date of instrument Creating the charge	26.09.2009
Amount secured by the charge	Rs.6.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 11.75% p.a. with monthly rests subject to revision by the bank form time to time Terms of Repayment Repayable on Demand Margin 25% Extent and Operation of the charge 100%
Short particulars of the property charged	Hypothecation of raw material, semi finished and finished goods/ stocks of paper and board machinery and its spare parts. Hypothecation of stocks of M S Angle, M S Sheets, Copper Wire, Stainless Steel Sheets, bearing and various spare parts, tools etc. used in manufacturing of paper cutting/ Manufacturing Machines. Hypothecation of Book Debts of the company
Particulars of the present modification	Cash Credit limit enhanced form Rs.3.000 Millions to Rs.6.000 Millions, Interchangeability in CC and PC limit is permitted upto Rs.3.000 Millions

Corporate identity number of the company	U29293PB1995PTC017286
Name of the company	HARJIT PAPER AND MACHINERY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Sudharshan Nagar East, Mohan Nagar, Amritsar – 143 001, Punjab, India
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge) · Floating charge · Others
Particular of charge holder	Union Bank of India, Majith Mandi Branch, Amritsar – 143 001, Punjab, India. E-Mail: safeinfosolutions@yahoo.co.in
Nature of instrument creating charge	1) Packing Credit Agreement (SD-04) 2) Letter of Hypothecation of Bills (SD-17) 3) Letter of Continuity (AD-09) 4) Corporate Clients (SD-21A) (Total Limit of Rs.31.500 Millions against purchase of foreign bills includes Packing Credit Limit of Rs.12.000 Millions)
Date of instrument Creating the charge	24.09.2007
Amount secured by the charge	Rs.31.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest For packing Credit Limit – 8.75% p.a. For bills Limit – Upto 90 days 8.75% p.a. and Above 90 days – 12% p.a. Terms of repayment Repayable on Demand Margin For Packing Credit Limit – 25% For bills purchased against L/C – NIL Extent and operation of the charge 100%
Particulars of the property charged	Hypothecation of Complete and/or partly built up paper cutting machines, its spare parts, bearings, M.S. Angle, M.S. Sheets Copper Wire, stainless steel sheets etc. Hypothecation of Foreign Bills purchased and Hypothecation of Book debts (both present and future)

FIXED ASSETS:

v Building

v Car

v Machinery

v Computer

v Fax Machine

v Mobile Phone

v Furniture and Fixture

v Inverter

v Refrigerator

v Scooter

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.44.42
UK Pound	1	Rs.72.70
Euro	1	Rs.63.55

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
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.