MIRA INFORM REPORT

Report Date :

24.01.2011

IDENTIFICATION DETAILS

Name :	ESSEM TECNOPINZ PRIVATE LIMITED
Registered Office :	A – 22, Nice, MIDC, Satpur, Nashik – 422 007, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	15.03.2000
Com. Reg. No.:	11-124957
CIN No.: [Company Identification No.]	U36991MH2000PTC124957
TAN No.: [Tax Deduction & Collection Account No.]	NSKE00592E
PAN No.: [Permanent Account No.]	AAACE6832F
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Ballpoint Pen Tips and Refills.

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 2500000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established and a reputed 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.

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. S.R. Kulkarni
Designation :	Accountant
Contact No.:	91-253-6693134

LOCATIONS

Registered Office :	A – 22, Nice, MIDC, Satpur, Nashik – 422007, Maharashtra, India
Tel. No.:	91-253-2350204 / 2362168/ 6693134
Fax No.:	91-253-2362168 / 6693140
E-Mail :	essemtecnopinz@essemindia.com amit@essemindia.com
Website:	http://www.essemtechnopinz.com
Area :	4000 sq ft
Location :	Owned
Factory :	Plot No.: 26/1, MIDC, Satpur, Nashik - 422007, Maharashtra, India

DIRECTORS

As on 30.09.2010

Name :	Mr. Sandip Kumar S Mahansaria
Designation :	Director
Address :	Paramount Apartment, No. 4A/B, 25, Ballygunge, Circular Road, Kolkata – 700 019, West Bengal, India
Date of Birth/Age :	16.09.1962
Qualification :	MBA
Date of Appointment :	15.03.2000
Name :	Mr. Punit Kumar Keshan Bishwanath
Designation :	Director
Address :	D/1/1, Bangur Avenue, Block D, Kolkata – 700 055, West Bangal, India
Date of Birth/Age :	18.03.1971
Qualification :	Graduate
Date of Appointment :	15.03.2000
Name :	Mr. Deepak Ramchand Vasandani
Designation :	Director
Address :	46, Palm Springs, Gangapur Road, Nashik – 422 005, Maharashtra, India
Date of Birth/Age :	07.01.1957
Qualification :	Enggineer
Date of Appointment :	15.03.2000
Name :	Mr. Amit Kumar Tibrewal
Designation :	Director
Address :	B-11, Priyanka Hills Apartment, Mahatma Nagar, Nasik – 422 007, Maharashtra, India
Date of Birth/Age :	18.11.1974
Qualification :	Finance Controller
Date of Appointment :	15.03.2000
Name :	Mrs. Vinita Mahansaria
Designation :	Director
Address :	Paramount Apartment, No. 4A/B, 25, Ballygunge, Circular Road, Kolkata – 700 019, West Bengal, India
Date of Birth/Age :	23.08.1967
Date of Appointment :	15.03.2000

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
S.K. Mahansaria	262100
P.K. Keshan	100
D.R. Vasandani	100
Amit Kr. Tibrewal	100
Vinita Mahansari	100
Micron Tips Private Limited (Cash)	1154470
Micron Tips Private Limited (Kind)	505530
Hi-Tech Export Private Limited	1132000
Eskaym Writing Aids Private Limited	200000
R.D. Mahansaria	2034000
S.S. Mahansaria	390000
S.S. Mahansaria HUF	252000
Total	5930500

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage of Holding
Bodies corporate	50.45
Directors or relatives of directors	49.55
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Ballpoint Pen Tips and Refills.
Products :	Ball Pen Points

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Actual Production
Ballpoint Pen Tips	Pcs	2024677000
Chips / Waste	Kgs	278115

Note:

The product of the company is Ballpoint Pen Tips onlym Chips are the wastage out of the process.

GENERAL INFORMATION

Suppliers :

• A.K. Services
• Akash Industries
• Ashok Zawar and Company
• Avanti Protective Services Private Limited
• Blaser Swisslibe I. Private Limited
• DHL Danzas Lemur P Limited
• Mahalakshmi Commercial Company
• Passage Cargo Private Limited
• Prachi Writing Instruments P. Limited
• ARAI Kinzoku Co Limited
• Heraeus Materials Tech Shanghai Limited
• Swissmetal Boilet

Customers :

• Manufacturer
• Anand International
• Baba Tracon Private Limited
• Monga Plastics
• N V Tek Industries
• SSB Metal Work
• Writing System
• Tech Ink Industries
• M H Products
• Saber pens Private Limited

Leone Penna Company Limited

End Users and OEM’s

No. of Employees :

Approximately 25

Bankers :

• The Thane Janta Sahakari Bank Limited, Suyojit Sankul, Sharanpur Road, Nashik – 422 002, Maharashtra, India
• State Bank of India
• Axis bank Limited
• Bank of India
• Bank of Baroda
• Citi Bank
• Vijaya Bank
• Indian Overseas Bank

Facilities :

Secured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Bank Cash Credit
The Thane Janta Sahakari Bank Limited – Nashik	162.650	132.067
The Thane Janta Sahakari Bank Limited – Nashik (WCTL)	19.986	13.318
Indian Overseas Bank (Fort) CC	44.772	46.723
Indian Overseas Bank (Nashik) CC	13.184	13.195
Indian Overseas Bank (Surat) CC	0.000	9.397
Term Loan
SICOM Limited	87.027	80.746
Indian Overseas Bank Limited	12.304	31.314
UTI Bank, Nashik	0.000	0.000
Car Loan (HDFC Bank)	0.000	0.227
Car Loan (ICICI Bank)	0.170	0.385
Car loan (Axis Bank, Nashik)	0.780
Car Loan (HDFC Bank – Kolkata)	1.318	0.000
Total	342.191	327.372
Unsecured Loans	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
From Directors and Relative of directors	9.337	35.091
Total	9.337	35.091

Banking Relations :	-
Auditors :
Name :	Ashok S. Zawar and Company Chartered Accountant
Address :	155, Sarda Sankul, Vakilwadi, Nashik – 422 001, Maharashtra, India
Associates :	Micron Tips Private Limited Hi-Tech Export Private Limited Nippon Plastics Private Limited Essem Refills Private Limited S.S. Ball Point Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- Each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
	Shares allotted in kind
505530	Equity Shares	Rs. 10/- each	Rs. 5.055 Millions
	Shares allotted in cash
5424970	Equity Shares	Rs. 10/- each	Rs. 54.250 Millions
	Total		Rs. 59.305 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		59.305	59.305	59.305
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		570.953	536.803	515.275
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		630.258	596.108	574.580
LOAN FUNDS
1] Secured Loans		342.191	327.372	316.939
2] Unsecured Loans		9.337	35.091	41.031
TOTAL BORROWING		351.528	362.463	357.970
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		981.786	958.571	932.550
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		628.115	641.446	686.618
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		81.758	52.889	33.051
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	147.155	72.681	83.895
	Sundry Debtors	156.186	173.873	128.524
	Cash & Bank Balances	14.496	11.403	16.097
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	42.097	64.963	17.531
Total Current Assets		359.934	322.920	246.047
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	67.017	42.227	22.371
	Other Current Liabilities	9.204	8.457	7.795
	Provisions	11.800	8.000	3.000
Total Current Liabilities		88.021	58.684	33.166
Net Current Assets		271.913	264.236	212.881
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		981.786	958.571	932.550

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	595.904	509.278	528.111
		Other Income	2.627	1.302	3.043
		TOTAL (A)	598.531	510.580	531.154
Less	EXPENSES
		TOTAL (B)	463.873	385.657	403.607
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		136.658	124.923	127.547
Less	FINANCIAL EXPENSES (D)		41.561	47.711	49.146
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		93.097	77.212	78.401
Less/ Add	DEPRECIATION/ AMORTISATION (F)		37.208	40.871	50.187
	PROFIT BEFORE TAX (E-F) (G)		55.889	36.341	28.214
Less	TAX (H)		21.739	14.812	11.746
	PROFIT AFTER TAX (G-H) (I)		34.150	21.529	16.468
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		128.929	107.401	90.933
	BALANCE CARRIED TO THE B/S		163.079	128.930	107.401
	EARNINGS IN FOREIGN CURRENCY		308.769	217.104	183.244
	IMPORTS
		Raw Materials	343.283	184.900	145.531
		Stores & Spares	21.353	9.810	16.428
		Capital Goods	4.694	1.536	9.754
	TOTAL IMPORTS		369.330	196.246	171.713
	Earnings Per Share (Rs.)		5.76	3.63	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.71	4.22	3.10
Net Profit Margin (PBT/Sales)	(%)	9.38	7.14	5.34
Return on Total Assets (PBT/Total Assets}	(%)	0.60	3.77	3.06
Return on Investment (ROI) (PBT/Networth)		0.09	0.06	0.05
Debt Equity Ratio (Total Liability/Networth)		0.70	0.71	0.68
Current Ratio (Current Asset/Current Liability)		4.09	5.50	7.42

LOCAL AGENCY FURTHER INFORMATION

Operation

The company has diversified in making various types of ballpoint tips with tremendous response from the customers. As the product of the company has received good response in the market, the Directors expect good results in the coming year.

Bankers Charges Report as per Registry

Corporate identity number of the company	U36991MH2000PTC124957
Name of the company	ESSEM TECNOPINZ PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	A – 22, Nice, MIDC, Satpur, Nashik – 422 007, Maharashtra, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10184410
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	The Thane Janta Sahakari Bank Limited Suyojit Sankul, Sharanpur Road, Nashik – 422 002, Maharashtra, India
Nature of instrument creating charge	Supplemental Deed of Hypothecation
Date of instrument Creating the charge	16.121.2010
Amount secured by the charge	Rs. 60.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest and Commission as per bank norms from time to time. Terms of Repayment 12 Months Margin As per bank norms from time to time Extent and Operation of the charge Renewal of Existing ILC/ FLC Limit from Rs. 40.000 Millions to Rs. 60.000 Millions as per bank norms
Short particulars of the property charged	Hypothecation of stock and book debts
Date of instrument modifying the charge	31.12.2009
Particulars of the present modification	Existing ILC/FLC Limit From Rs. 40.000 Millions to Rs. 60.000 Millions

Corporate identity number of the company	U36991MH2000PTC124957
Name of the company	ESSEM TECNOPINZ PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	A – 22, Nice, MIDC, Satpur, Nashik – 422 007, Maharashtra, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90150916
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	The Thane Janta Sahakari Bank Limited Suyojit Sankul, Sharanpur Road, Nashik – 422 002, Maharashtra, India
Nature of instrument creating charge	Supplemental Deed of Hypothecation
Date of instrument Creating the charge	31.12.2009
Amount secured by the charge	Rs. 65.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest @ 11.50% p.a. at monthly rest (i.e. below 2.5% p.a. below PLR) Terms of Repayment To be renewed / receivable on yearly basis Margin 30% Extent and Operation of the charge Existing cash credit limit enhanced
Short particulars of the property charged	Hypothecation of stock and book debts
Date of instrument modifying the charge	24.07.2008
Particulars of the present modification	Existing cash credit limit enhanced Rs. 65.000 Millions

Fixed Assets:

• Building
• Non Factory Building
• Guest House
• Computer
• Electrical Installation
• Electrical Fitting
• Land
• Plant and Machinery
• Revaluation of Plant and Machinery
• Office Equipments
• Vehicles
• Furniture and Fixture

AS PER WEBSITE

Company Profile:

Staying Ahead

No one grip, type of link, or the writing width of a tp can suit everyone's needs.

Writing has formed the core of civilization for millennia, with the ballpoint pen as one of the greatest inventions, Yet, writing style very across cultures, countries and among people, meaning that pen tips need to be as varied as the people who use them.

Some people write with a heavy, blunt script and need a wide tip, while others have a lighter style so that the ink barely touches the page. Whatever the demands, essem has the technology and the experience to meet those requirements.

At essem, they know they have to continually strive to be the best And that means more than just producing high-quality, reliable, smooth-finish pen tips. It means having the vision to anticipate trends and adopt new processes as they emerge and evolve.

They make sure they are up-to-date with the most advanced technologies from the world over and they continually keep abreast of trends in the pen market so that you, the customer, are always ahead of the curve

Technology, equipment and processes

Spindles running at more than 50,000 revolutions a minute....... the turning and drilling of 2.30 mm thick stainless steel alloy blanks resulting in a spew of fine metal powder.... a 0.40 mm diameter tungsten carbide ball being embedded in a nickel silver housing..... a conscientious worker examining the housing of a typical tip magnified 100 times on a high-powered stereo microscope..... this would be just a typical day at essem's factory.

Using a combination of highly-precise and automated equipments, advanced technologies and sophisticated systems for manufacturing and quality control, they continually strive for perfection, A strong belief in systems is evident all over the shop-floor and the various departments. The commitment to quality control is one of 'continuous improvement'. From end to end, they have developed stringent manufacturing practices and refined them over the years.

This flexible, modular approach from design through manufacturing provides a customized, end-to-end solution to the customers, thereby reducing cost and assuring quality of both the products and the service.

Building relationships through customization

They know that there is no single pen that can appeal to every person. That's why they work very closely with the customers to find out exactly what their demands and needs are. But how they do this?

They begin with conceptualizing the market needs and requirements. The primary focus is to design, develop and produce a tip that perfectly complements the selected ink. In other words, to make the tips external and internal design, engineering, shape and performance according to the specific requirement. The design is finalized, samples produced and then feedback collected. Through this loop, they are able to develop a product that has been honed and fine-tuned according to exacting specifications and requirements. This way, the customer gets the benefit of a completely tailor-made and customized product.

They offer technical guidance and can help you resolve any technical difficulty. They arrange for customers to visit the factories to gain a deeper technical understanding of the products they are buying. In the end, it's all about building a relationship..... a long and lasting one that responds effectively to the business.

Teamwork

Synergy means cooperation and part of the essence is the ability to work as a team learning from and growing with each other.

Several of the staff have been with them for more than two decades, gaining valuable knowledge of the manufacturing process as well as an unparalleled insight into the dynamics of this technology-oriented industry.

Training and cross-training helps them to become more flexible and to respond quickly to the changing needs of customers.

Collaboration at all levels of the manufacturing proces also means that the essem team are more productive and proficient at accomplishing their shared goal of development the highest-quality writing tool.

When a customer chooses to work with essem, they aren't just selecting a brand, but a distinct working style.

Precision engineering and research

At essem, they know that it's not enough to be on top of the game today and that they need to continually strive to improve the skills and knowledge base so that they remain the preferred choice for the customers.

The research takes them across the globe seeking out new ideas, innovations, and knowledge that will keep them a bead of the completion. It's a constant challenge that they set for the most creative minds, never to be content with the status quo but to discover better techniques and processes that can continue to improve the essem experience.

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.45.70
UK Pound	1	Rs.72.78
Euro	1	Rs.61.65

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.