MIRA INFORM REPORT

Report Date :

11.08.2011

IDENTIFICATION DETAILS

Name :	JENNEX GRANITE INDUSTRIES PRIVATE LIMITED
Registered Office :	Auditax, Senior House, Phalke Bazar, Gwalior – 474001, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	07.01.2005
Com. Reg. No.:	10-17233
Capital Investment / Paid-up Capital :	Rs.19.500 millions
CIN No.: [Company Identification No.]	U26960MP2005PTC017233
TAN No.: [Tax Deduction & Collection Account No.]	CHEJ045290A BPLJ01240B
PAN No.: [Permanent Account No.]	AABCJ5013C
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Granite Slabs and Tiles.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 360000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. The company has incurred some losses in the current year. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for business dealings at usual trade terms and conditions.

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

LOCATIONS

Registered Office :	Auditax, Senior House, Phalke Bazar, Gwalior – 474001, Madhya Pradesh, India
E-Mail :	yogeshanand_delhi@rediffmail.com info@jennexinternational.com ca_pawanchadha@hotmail.com rohitvijay.ca@gmail.com
Website :	http://www.jgipl.com
Factory 1 :	E- 16, Phase 2, Expansion 1, SIPCOT Industrial Complex, Hosur – 635109, Tamilnadu
Tel. No.:	91-4344-260808 / 324678
Fax No.:	91-4344-260809
Corporate Office :	F-75, Rajouri Garden, New Delhi – 110027, India
Tel No.:	91-11-25460468/ 25936139/ 25934686/ 25934786
Fax No.:	91-11-25461856/ 25925602
Email :	info@jennexinternational.com
Website :	http://www.jennexinternational.com

DIRECTORS

(AS ON 30.09.2010)

Name :	Mr. Yogesh Anand
Designation :	Director
Address :	F- 75, Rajori Garden, New Delhi – 110027, India
Date of Birth/Age :	16.06.1947
Date of Appointment :	07.01.2005
Name :	Mrs. Sunita Anand
Designation :	Director
Address :	F- 75, Rajori Garden, New Delhi – 110027, India
Date of Birth/Age :	13.08.1975
Date of Appointment :	07.01.2005
Name :	Mr. Deepak Anand
Designation :	Director
Address :	F- 75, Rajori Garden, New Delhi – 110027, India
Date of Birth/Age :	02.10.1967
Date of Appointment :	07.01.2005
Name :	Mrs. Prabha Anand
Designation :	Director
Address :	F- 75, Rajori Garden, New Delhi – 110027, India
Date of Birth/Age :	27.08.1948
Date of Appointment :	07.01.2005
Name :	Mrs. Neeru Mago
Designation :	Director
Address :	E-33, Naraina Vihar, New Delhi – 110028, India
Date of Birth/Age :	29.09.1970
Date of Appointment :	07.01.2005
Name :	Mr. Sunil Kumar Bhandari
Designation :	Director
Address :	218 – IV Main, Vivek Nagar, Bangalore – 560047, Karnataka, India
Date of Birth/Age :	01.03.1959
Date of Appointment :	15.03.2005
Name :	Mr. Pulikottil Sunny Joseph
Designation :	Director
Address :	647, 14^th b Main Mathekere Layout, Bangalore – 560054, Karnataka, India
Date of Birth/Age :	14.09.1967
Date of Appointment :	15.03.2005

KEY EXECUTIVES

Name :	Mr. Pramod Jain
Designation :	Company Secretary
Address :	Ground Floor, A – 11, PArvati Niwas, Vivek Vihar, Near Chetakpuri, Lashkar, Gwalior – 474009, Madhya Pradesh, India
Tel No. :	91-751-2323873
Mobile :	09827023873
Email :	parasjaincs@yahoo.co.in

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Yogesh Anand	450000
Sunita Anand	100000
Deepak Anand	800000
Prabha Anand	500000
Neeru Mago	100000
Total	1950000

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Granite Slabs and Tiles.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· ICICI Bank

· CITI Bank

· Corporation Bank ,

Overseas Branch, M – 93, Connaught Circus, New Delhi – 110001, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Banks
On Term Loan Account	31.182	42.318
Secured against mortgage, hypothecation of factory land, building, Plant and Machinery (Both Present and Future) and First charge on all Fixed Assets of the Company.
On Term Loan Account	--	0.184
Secured against vehicles in the name of tire Company
On Working Capital Account	36.717	33.892
Secured against hypothecation of entire stock (Raw Martial, stock in process, finished goods, by products) book debts and current assets of the company guaranteed by directors and collateral security on hypothecation of factory Land and building and entire Fixed assets of the company Pre-shipment Loan (Packing Credit Limit)
On Import L/C Loan	--	1.643
On Foreign Bill Discounted from Bank	52.257	32.092
Short Term Loan	--	16.096
Total	120.156	126.225
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Directors and Relatives	20.452	31.330
Total	20.452	31.330

Banking Relations :	--
Auditors :
Name :	R. Vijaywargiya and Associates Chartered Accountant
Address :	F-1, Badri Vishal Plaza, Near Kali Mata Mandir, Old High Court Lane, Lashkar, Gwalior – 474001, Madhya Pradesh, India
Tel. No.:	91-751-2439003
Email :	rohitvijay@rediffmail.com
Associates/Subsidiaries :	· Jennex International Exports · Stonex · Jennex International

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- Each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1950000	Equity Shares	Rs.10/- Each	Rs.19.500 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		19.500	19.500	19.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		69.678	80.176	50.798
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		89.178	99.676	70.298
LOAN FUNDS
1] Secured Loans		120.156	126.225	144.908
2] Unsecured Loans		20.452	31.330	51.618
TOTAL BORROWING		140.608	157.555	196.526
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		229.786	257.231	266.824
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		89.061	101.407	113.771
Capital work-in-progress		6.253	1.333	1.437
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	81.343	75.299	72.283
	Sundry Debtors	65.765	84.747	75.596
	Cash & Bank Balances	3.441	3.853	4.738
	Other Current Assets	2.184	2.274	1.782
	Loans & Advances	13.512	12.966	19.294
Total Current Assets		166.245	179.139	173.693
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	12.751	5.883	11.760
	Other Current Liabilities	15.934	15.702	7.357
	Provisions	3.211	3.211	3.134
Total Current Liabilities		31.896	24.796	22.251
Net Current Assets		134.349	154.343	151.442
MISCELLANEOUS EXPENSES		0.123	0.148	0.174
TOTAL		229.786	257.231	266.824

PROFIT & LSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	245.990	233.615	221.548
		Other Income
		TOTAL	245.990	233.615	221.548
Less	EXPENSES
		TOTAL	256.488	204.008	195.227
	PROFIT BEFORE TAX		(10.498)	29.607	26.321
Less	TAX		0.000	0.229	3.134
	PROFIT AFTER TAX		(10.498)	29.378	23.187
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	96.909	114.136	171.265
	TOTAL EARNINGS		96.909	114.136	171.265
	Earnings Per Share (Rs.)		--	15.06	11.89

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(4.27)	12.58	10.47
Return on Total Assets (PBT/Total Assets}	(%)	(4.11)	10.55	9.16
Return on Investment (ROI) (PBT/Networth)		(0.12)	0.30	0.37
Debt Equity Ratio (Total Liability/Networth)		1.93	1.83	3.11
Current Ratio (Current Asset/Current Liability)		5.21	7.22	7.81

LOCAL AGENCY FURTHER INFORMATION

OPERATIONAL PERFORMANCE:

The turnover of the company has increased in good position as compared to previous year But it has also suffered the loss of Rs.10.497 Millions due to Bad debt but they are hopeful for better working and result in the subsequent years.

CONTINGENT LIABILITIES AS ON THE CLOSE OF THE YEAR IN RESPECT OF:

Outstanding Bank Guarantee Rs.0.850 Million

Letter of Credits: Rs.20.783 Millions

Form 8

Corporate identity number of the company	U26960MP2005PTC017233
Name of the company	JENNEX GRANITE INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Auditax, Senior House, Phalke Bazar, Gwalior – 474001, Madhya Pradesh, India ca_pawanchadha@hotmail.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	Corporation Bank Overseas Branch, M-93, Connaught Place, New Delhi – 110001, India pankajkpc@gmail.com
Nature of instrument creating charge	Common deed of hypothecation of movables/ assets/ debts.
Date of instrument Creating the charge	12.10.2010
Amount secured by the charge	Rs.3.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: PCL: For PCL 10% p.a. up to 270 days being 2.25% above the Corporation Bank Base Rate which is 7.75% p.a. at present subject to revision from time to time. Terms of Repayment: Each PCL will have to be liquidated within a period not exceeding 270 days by negotiation/purchase/discount of export bills. Margin: 10% on the FOB Value. Extent and Operation of the charge: ADHOC PCL: Rs.3.000 Millions.
Particulars of the property charged	Pari Passu first charge by way of hypothecation of inventory comprising of stock of raw materials, work-in-process, finished goods, stores and spares and book-debts/receivables, plant and machineries and the movable assets already procured/to be procured along with Karnataka Bank Limited

FIXED ASSETS:

· Factory Land and Site Development

· Factory Building

· Plant and Machinery

· D G Set

· Electric Installation

· Car A/c

· Computers

· Furniture and Fixtures

· Office Equipments

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.45.17
UK Pound	1	Rs.73.72
Euro	1	Rs.64.26

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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
TOTAL		44

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.