MIRA INFORM REPORT

Report Date :

10.06.2011

IDENTIFICATION DETAILS

Name :	HI LINE PENS PRIVATE LIMITED
Registered Office :	229, Okhala Industrial Estate, Phase 3, New Delhi-110 020
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	06.02.1996
Com. Reg. No.:	55-76070
Capital Investment / Paid-up Capital :	Rs.5.000 Millions
CIN No.: [Company Identification No.]	U3699DL1996PTC076070
TAN No.: [Tax Deduction & Collection Account No.]	DELH03764F
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Parker Pens.

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 460000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an 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.

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 (GENERAL INFORMATION)

Name :	Mr. Sandeep
Designation :	General Manager finance
Contact No.:	91-11-43117330
Date :	08.06.2011

LOCATIONS

Registered Office :	229, Okhala Industrial Estate, Phase 3, New Delhi-110 020, India
Tel. No.:	91-11-43117330/11
Fax No:	91-11-26847602
E-Mail :	sandeep.gupta@luxoroffice.com
Factory :	5, Okhala Industrial Estate, Phase 3, New Delhi-110 020, India

DIRECTORS

As on : 30.09.2010

Name :	Mr. Vijay Kumar Jain
Designation :	Director
Address :	B-167, Sarita Vihar, New Delhi- 110 044, Delhi, India
Date of Birth/Age :	05.06.1936
Date of Appointment :	20.07.1999
Din No.:	00055376
Name :	Ms. Payal Kapoor
Designation :	Director
Address :	W-23, Greater Kailash Part- II, New Delhi-110 048, Delhi, India
Date of Birth/Age :	14.12.1969
Date of Appointment :	15.03.1996
Din No.:	00055367
Name :	Ms. Chandra Mouli Iyer
Designation :	Director
Address :	1344, Sector- 37, Faridabad, Haryana
Date of Birth/Age :	13.09.1957
Date of Appointment :	30.09.2005
Din No.:	00055379
Name :	Mr. Davinder Kumar Jain
Designation :	Director
Address :	D-19, Nizamuddin East, New Delhi – 110013, Delhi, India
Date of Birth/Age :	19.02.1943
Date of Appointment :	15.11.2009
Din No.:	00055350
Name :	Mrs. Pooja Jain
Designation :	Director
Address :	D-19, Nizamuddin East, New Delhi – 110013, Delhi, India
Date of Birth/Age :	12.10.1974
Date of Appointment :	15.11.2009
Din No.:	00055375

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Pooja Jain	130000
Davinder Kumar Jain	250000
JHPL Holdings Private Limited, Delhi	120000
Total	500000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	24.00
Directors or relatives of directors	76.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Parker Pens.

Products :

Parker Pens

Item Code No. (ITC Code)	96.08
Product Description	Writing Instruments
Item Code No. (ITC Code)	32.15
Product Description	Ink
Item Code No. (ITC Code)	96.08
Product Description	Ink Cartridge

Imports :

Products :

Raw Material

Countries :

China

Terms :

Selling :

Cash and Credit

Purchasing :

L/C, Cash and Credit

PRODUCTION STATUS As on 31.03.2010

Particulars	Unit	Actual Production
Writing Instruments	Nos.	9649680
Ink Cartridge and Bottles	Nos.	609232

GENERAL INFORMATION

Customers :

• End Users
• Corporate

Bankers :

• Standard Chartered Bank, Sansad Marg, New Delhi, India
• Kotak Mahindra Prime Limited
• HDFC Bank

Facilities :

Secured Loans :	As on 31.03.2010 Rs. in Millions	As on 31.03.2009 Rs. in Millions
Finance For Motor Cars (Against Hypothecation of Cars)	0.035	0.206
Total	0.035	0.206

Banking Relations :	--
Auditors :
Name :	S. Karla and Associates Chartered Accountants
Address :	24, Manak Vihar, I.P. Extension, New Delhi-110 092, Delhi, India
Tel. No.:	91-11-22151632
Fax No.:	91-11-22142850
E-Mail :	skalra4@vsnl.net skalra@hotmail.com

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Share	Rs.10/- Each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity Share	Rs.10/- Each	Rs.5.000 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		5.000	5.000	5.000
2] Share Application Money		55.000	0.000	0.000
3] Reserves & Surplus		54.980	48.997	43.107
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		114.980	53.997	48.107
LOAN FUNDS
1] Secured Loans		0.035	0.206	0.586
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.035	0.206	0.586
DEFERRED TAX LIABILITIES		2.822	3.472	3.313
TOTAL		117.837	57.675	52.006
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		19.098	22.490	24.671
Capital work-in-progress		63.633	0.000	0.364
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	56.458	58.105	90.079
	Sundry Debtors	16.155	0.011	0.001
	Cash & Bank Balances	1.455	1.270	2.733
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.198	15.361	11.753
Total Current Assets		88.266	74.747	104.566
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	40.894	26.508	67.234
	Provisions	12.266	13.054	10.361
Total Current Liabilities		53.160	39.562	77.595
Net Current Assets		35.106	35.185	26.971
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		117.837	57.675	52.006

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	241.318	223.784	230.769
		Other Income	3.425	4.910	4.844
		TOTAL (A)	244.743	228.694	235.613
Less	EXPENSES
		Cost of Materials and Manufacturing Expenses	214.827	177.620	210.629
		Personnel, Administration and selling expenses	14.906	17.271	16.806
		Increase / Decrease in Stock	2.448	21.021	(14.851)
		Excise Duty	0.000	0.000	10.621
		TOTAL (B)	232.181	215.912	223.205
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12.562	12.782	12.408
Less	FINANCIAL EXPENSES (D)		0.223	0.244	0.479
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.339	12.538	11.929
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.106	3.110	3.096
	PROFIT BEFORE TAX (E-F) (G)		9.233	9.428	8.833
Less	TAX (I)		3.250	3.539	2.730
	PROFIT AFTER TAX (G-I) (J)		5.983	5.889	6.103
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		48.997	43.107	37.003
	BALANCE CARRIED TO THE B/S		54.980	48.997	43.107
	Earnings Per Share (Rs.)		11.96	11.77	17.66

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.44	2.57	2.59
Net Profit Margin (PBT/Sales)	(%)	3.82	4.21	3.83
Return on Total Assets (PBT/Total Assets}	(%)	8.59	9.69	6.83
Return on Investment (ROI) (PBT/Networth)		0.08	0.17	0.18
Debt Equity Ratio (Total Liability/Networth)		0.46	0.73	1.63
Current Ratio (Current Asset/Current Liability)		1.66	1.88	1.35

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

The operations of the company during the period have resulted in a turnover of Rs.244.744 millions and a net profit before tax of Rs.9.233 millions during the year as compared to previous year’s turnover of Rs.228.695 millions and net profit before tax of 9.428 millions.

During the year the company commenced the implementation of a new project setting up a factory for manufacturing of writing instruments at Noida in Uttar Pradesh.

FROM : 8

Bankers Charges Report as per Registry

Name of the company	HI LINE PENS PRIVATE LIMITED
Presented By	COMPANY AND STANDARD CHARTERED BANK
1) Date and description of instrument creating the change	Hypothecation Agreement at 02.07.1998
2) Amount secured by the charge/amount owing on the securities of charge	Rs.13.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Plant and Machinery
4) Gist of the terms and conditions and extent and operation of the charge.	ROI as may be determined by the bank time to time
5) Name and Address and description of the person entitled to the charge.	Standard Chartered Bank, Sansad Marg, New Delhi, India
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

Corporate identity number of the company	U36991DL1996PTC076070
Name of the company	HI-LINE PENS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	229 Okhla Industrial Estate Phase-III, New Delhi – 110020, Delhi, India
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	Kotak Mahindra Bank Limited, 15-16, UGF, Ambadeep Building, 14 K G Marg, Connaught Place, New Delhi – 110001, Delhi, India
Nature of instrument creating charge	Memorandum Of Deposit Of Title Deeds Dated 27.01.2011
Date of instrument Creating the charge	27/01/2011
Amount secured by the charge	Rs. 537.200 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As Per The Agreement Terms of repayment As Per The Agreement Margin As Per The Agreement Extent and operation of the charge As Per The Agreement Other The Security Is Provided For Financial Facilities Sanctioned To M/S Luxor Writing Instruments Private Limited .
Short particulars of the property charged (Including location of the property)	The Company has provided the Security to the bank on behalf of M/s Luxor Writing Instruments Private Limited to secure the credit facilities of Rs. 537.200 millions by way of equitable mortgage of All that piece and parcel of land bearing Industrial Plot No. 40, situated in Block A, Hosiery Complex, Phase-II, Extension, Noida, District Gautam Budh Nagar, Uttar Pradesh, and bounded as follows, On the North : Plot no. A-39 On the South : 18M wide road On the East : Plot no. A-41 and On the West : 18m wide road Together with all buildings, structures and plant and machinery, if any, affixed to the earth or permanently affixed to something attached to the earth.

FIXED ASSETS:

• Plant and Machinery
• Moulds
• Motor Vehicles
• Furniture and Fixtures
• Electric Installation
• EDP Equipments
• Office Equipments
• Lease Hold Improvements

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. 44.72
UK Pound	1	Rs. 73.47
Euro	1	Rs. 65.38

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	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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.