MIRA INFORM REPORT

Report Date :

03.12.2011

IDENTIFICATION DETAILS

Name :	FLAIR PENS LIMITED
Registered Office :	63 B/C, Government Industrial Estate Charkop, Kandivali (West), Mumbai – 400067, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	24.11.1994
Com. Reg. No.:	11-083255
Capital Investment / Paid-up Capital :	Rs.9.900 Millions
CIN No.: [Company Identification No.]	U36991MH1994PLC083255
TAN No.: [Tax Deduction & Collection Account No.]	MUMF01459D
PAN No.: [Permanent Account No.]	AAACF7677B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Writing Instruments and Allieds.
No. of Employees :	35 (Approximately) (In Office + In Factory)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 220000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. 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 normal 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.

INFORMATION PARTED BY

Name :	Mr. Ravi
Designation :	Account Department
Contact No.:	91-22-28683084
Date :	02.12.2011

LOCATIONS

Registered Office :	63 B/C, Government Industrial Estate Charkop, Kandivali (West), Mumbai – 400067, Maharashtra, India
Tel. No.:	91-22-28683084
Fax No.:	91-22-28689318
E-Mail :	pradeep@flairpens.com exports@flairpens.com nppi@flairpens.com enquiry@flairpens.com
Website :	http://flairpens.com
Location :	Owned
Branch Office :	Located at Mumbai Gujarat Daman Uttaranchal

DIRECTORS

As on 30.09.2011

Name :	Mr. Khubilal Jugraj Rathod
Designation :	Managing director
Address :	101/3 Friends Chs, N. S. Road, No.5, Juhu, Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	10.07.1950
Date of Appointment :	01.06.1999
DIN No.:	00122867

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U25200MH1970PTC014653	Ajay Plastics Private Limited	Director	11-05-94	11-05-94	-	Active	NO
2	L25201RJ1979PLC001879	Mewar Polytex Limited	Director	27-01-95	27-01-95	-	Active	NO
3	U91110MH1995NPL094499	Writing Instruments Manufacturers Organisation (India)	Managing director	15-11-95	15-11-95	-	Active	NO
4	U36991MH1994PLC083255	Flair Pens Limited	Managing director	02-04-07	01-06-99	-	Active	NO
5	U36991MH1999PTC120421	Indo Japan Pen Manufacturing Company Private Limited	Director	21-06-99	21-06-99	-	Active	NO
6	U27205MH2010PTC203497	Renox Stainless Steel India Private Limited	Director	26-05-10	26-05-10	-	Active	NO

Name :	Mr. Vimalchand Jugraj Rathod
Designation :	Whole-time director
Address :	Plot No.51, Flat No.601, Nutan Laxmi Chs, Vileparle (West), Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	09.08.1951
Date of Appointment :	01.06.1999
DIN No.:	00123007

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U36991MH1992PTC069623	Stypen Manufacturing Company (India) Private Limited	Director	18-11-92	18-11-92	-	Active	NO
2	U25200MH1970PTC014653	Ajay Plastics Private Limited	Director	07-06-94	07-06-94	-	Active	NO
3	U36991MH1993PTC071089	Vitrag Writing Instruments Private Limited	Director	28-09-94	28-09-94	-	Active	NO
4	U91110MH1995NPL094499	Writing Instruments Manufacturers Organisation (India)	Director	15-11-95	15-11-95	-	Active	NO
5	U36991MH1994PLC083255	Flair Pens Limited	Whole-time director	02-04-07	01-06-99	-	Active	NO
6	U36991MH1999PTC120421	Indo Japan Pen Manufacturing Company Private Limited	Director	25-08-09	21-06-99	-	Active	NO
7	U27205MH2010PTC203497	Renox Stainless Steel India Private Limited	Director	28-10-10	28-10-10	-	Active	NO

Name :	Mr. Rajesh Khubilal Rathod
Designation :	Director
Address :	101/3 Friends Chs, N. S. Road, No.5, Juhu, Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	11.01.1972
Date of Appointment :	30.09.2003
DIN No.:	00122907

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U36991MH1992PTC069623	Stypen Manufacturing Company (India) Private Limited	Director	18-11-92	18-11-92	-	Active	NO
2	U25200MH1970PTC014653	Ajay Plastics Private Limited	Director	07-06-94	07-06-94	-	Active	NO
3	U36991MH1993PTC071089	Vitrag Writing Instruments Private Limited	Director	28-09-94	28-09-94	-	Active	NO
4	U91110MH1995NPL094499	Writing Instruments Manufacturers Organisation (India)	Director	29-09-00	29-09-00	-	Active	NO
5	U36991MH1994PLC083255	Flair Pens Limited	Director	30-09-03	30-09-03	-	Active	NO

Name :	Mr. Mohit Khubilal Rathod
Designation :	Director
Address :	101/3 Friends Chs, N. S. Road, No.5, Juhu, Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	30.09.1978
Date of Appointment :	30.09.2003
DIN No.:	00122951

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U25200MH1970PTC014653	Ajay Plastics Private Limited	Director	31-12-78	31-12-78	-	Active	NO
2	U36991MH1994PLC083255	Flair Pens Limited	Director	30-09-03	30-09-03	-	Active	NO

Name :	Mrs. Nirmala Khubilal Rathod
Designation :	Director
Address :	501 Joy Solitaire, Juhu Scheme, N. S. 5^th Road, Vileparle (West), Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	04.08.1952
Date of Appointment :	01.04.2009
DIN No.:	02450804

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U36991MH1992PTC069623	Stypen Manufacturing Company (India) Private Limited	Director	07-07-93	07-07-93	-	Active	NO
2	U36991MH1994PLC083255	Flair Pens Limited	Director	01-04-09	01-04-09	-	Active	NO

Name :	Mrs. Sangita Rajesh Rathod
Designation :	Director
Address :	101/3 Friends Chs, N. S. Road, No.5, Juhu, Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	20.01.1972
Date of Appointment :	15.02.2010
DIN No.:	02928019

Name :	Mr. Sumitkumar Rathod Vimalchand
Designation :	Director
Address :	Nootan Laxmi Chs, Abhay Building Flat No.601, 6^th Floor, 9^th Road, JVPD Scheme, Vileparle (West), Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	15.08.1982
Date of Appointment :	17.03.2010
DIN No.:	02987687

KEY EXECUTIVES

Name :	Mr. Ravi
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Nirmala Khubilal Rathod	311500
Khubilal Jugraj Rathod	90100
Vimalchand Jugraj Rathod	11000
Rajesh Khubilal Rathod	90100
Sangita Rajesh Rathod	100
Manjula Vimalchand Rathod	10100
Vimalchand Rathod HUF	290000
Sumit Vimalchand Rathod	86100
Mohit Rathod	81000
Khubilal Rathod (HUF)	20000
Total	990000

As on 30.09.2011

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 :

Manufacturing of Writing Instruments and Allieds.

Products :

• Metal Pens
• Gel Pens
• Stationery
• Calculators
• Packaging
• Refills
• Display Stands
• Gift Sets

Product Description	Item Code No.
Manufacturing of Writing Instruments and Allieds	9608

Imports :

Products :

Raw Material

Countries :

• USA
• Korea
• Germany
• Japan

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

GENERAL INFORMATION

Customers :

Others (Dealers and Distributors)

No. of Employees :

35 (Approximately) (In Office + In Factory)

Bankers :

Citi Bank N.A, Trent House, 2^nd Floor, G Block, Plot No.C60, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loan
From Bank (Secured against hypothecation of Stock and Receivables and personal Guarantee of Directors)	10.154	10.000
Cash Credit
From Bank (Secured against hypothecation of Stock and Receivables and personal Guarantee of Directors)	0.028	0.000
Car Loan
From Bank (Secured against hypothecation of Motor Car)	0.173	0.646
Total	10.355	10.646
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Directors	55.926	87.989
Total	55.926	87.989

Banking Relations :	--
Auditors :
Name :	Jeswani and Rathore Chartered Accountants
Address :	408/C, Niranjan, 99, Marine Drive, Mumbai – 400002, Maharashtra, India
PAN.:	AAEFJ3978L
Associates :	Ajay Plastic Private Limited Indo Japan Pen Manufacturing Company Private limited Stypen Manufacturing Company India Private limited
Partnership Firms :	National Pen and Plastic Industries Flair Impex Corporation Flair Pen and Plastic Industries Flair Pens Limited (Dehradun) Flair Pens Limited (Daman Flair Writing Instrument Flair Pens and Stationery Industries Flair Writing Aids Rathod and Rathod Royal Pen and Plastic Industries

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4750000	Equity Shares	Rs.10/- each	Rs.47.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
990000	Equity Shares	Rs.10/- each	Rs.9.900 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		9.900	9.900	9.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		45.279	29.568	21.481
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		55.179	39.468	31.381
LOAN FUNDS
1] Secured Loans		10.355	10.646	15.225
2] Unsecured Loans		55.926	87.989	50.454
TOTAL BORROWING		66.281	98.635	65.679
DEFERRED TAX LIABILITIES		0.360	1.012	0.410
TOTAL		121.820	139.115	97.470
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		99.506	53.211	52.862
Capital work-in-progress		0.000	34.172	5.440
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	51.718	49.008	63.445
	Sundry Debtors	111.926	84.247	85.668
	Cash & Bank Balances	6.297	12.120	3.269
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	29.401	19.714	16.914
Total Current Assets		199.342	165.089	169.296
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	90.840	89.725	116.946
	Other Current Liabilities	68.113	15.039	9.214
	Provisions	18.075	8.593	3.968
Total Current Liabilities		177.028	113.357	130.128
Net Current Assets		22.314	51.732	39.168
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		121.820	139.115	97.470

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	655.957	502.505	448.391
		Other Income	5.692	5.927	0.713
		TOTAL (A)	661.649	508.432	449.104
Less	EXPENSES
		Purchase of Trading Goods	491.686	364.960	342.359
		Direct Cost	46.366	40.840	25.499
		Employee Cost	26.662	22.139	26.436
		Administration and Other Expenses	13.211	17.455	14.528
		Selling and Distribution Expenses	58.738	36.009	36.043
		Loss on Sale of Assets	0.112	0.762	0.228
		(Increase) / Decrease in Stock	(8.111)	7.501	(6.844)
		TOTAL (B)	628.664	489.666	438.249
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		32.985	18.766	10.855
Less	FINANCIAL EXPENSES (D)		1.095	2.234	2.037
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		31.890	16.532	8.818
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.552	2.588	1.555
	PROFIT BEFORE TAX (E-F) (G)		28.338	13.944	7.263
Less	TAX (I)		12.627	5.857	2.143
	PROFIT AFTER TAX (G-I) (J)		15.711	8.087	5.120
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		29.568	21.481	16.361
	BALANCE CARRIED TO THE B/S		45.279	29.568	21.481
	IMPORTS
		Purchase	10.570	40.929	42.423
	TOTAL IMPORTS		10.570	51.499	83.352
	Earnings Per Share (Rs.)		15.87	8.17	5.11

Particulars	31.03.2011
Sales Turnover (Approximately)	720.000

The above information has been parted by Mr. Ravi.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.37	1.59	1.14
Net Profit Margin (PBT/Sales)	(%)	4.32	2.77	1.62
Return on Total Assets (PBT/Total Assets}	(%)	9.48	6.39	3.27
Return on Investment (ROI) (PBT/Networth)		0.51	0.35	0.23
Debt Equity Ratio (Total Liability/Networth)		4.41	5.37	6.24
Current Ratio (Current Asset/Current Liability)		1.13	1.46	1.30

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
- For Goods	87.822	86.386	112.055
- For Expenses	3.018	3.339	4.891
Total	90.840	89.725	116.946

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	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last two years	yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

OPERATIONS:

During the year, the company achieved a turnover of Rs.655.957 Millions (previous year Rs.502.505 Millions. The company has achieved a Net profit of Rs.15.711 Millions (Previous year Rs.8.087 Millions during the year.

CONTINGENT LIABILITY:

The Company has given performance guarantee of Rs.5.100 Millions (previous year Rs.9.150 Millions to president of India.

FIXED ASSETS:

• Land
• Building
• Computer
• Vehicles
• Dies and Mould
• Office Equipments
• Electrical Equipments
• Furniture and Fixture
• Trademark

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.51.35
UK Pound	1	Rs.80.51
Euro	1	Rs.69.14

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	5
--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		46

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.