MIRA INFORM REPORT

Report Date :

11.03.2011

IDENTIFICATION DETAILS

Name :	JAINEX LIMITED (w.e.f. 08.03.1978)

Formerly Known As :	JAINEX AGENCIES PRIVATE LIMITED

Registered Office :	405 and 406, Sharda Chambers, 15, Sir Vithaldas Thackersey Marg, New Marine Lines, Mumbai-400020, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	18.07.1972

Com. Reg. No.:	11-094147

CIN No.: [Company Identification No.]	U51900MH1972PLC094147

TAN No.: [Tax Deduction & Collection Account No.]	MUMJ03913A

PAN No.: [Permanent Account No.]	AAACJ0917G

Legal Form :	A Closely Held Public Limited Liability Company.

Line of Business :	Supplier of Cold Rolled Steel Strips, Hardened and Tempered Steel Strips and all types of Wires.

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 520000

Status :	Satisfactory

Payment Behaviour :	Usually Correct

Litigation :	Clear

Comments :	Subject is an established company having satisfactory track. Trade relations are 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

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

INFORMATION DECLINED BY

Management Non Co-Operative.

LOCATIONS

Registered Office :	405 and 406, Sharda Chambers, 15, Sir Vithaldas Thackersey Marg, New Marine Lines, Mumbai-400020, Maharashtra, India
Tel. No.:	91-22-22002252
Fax No.:	91-22-22002254
E-Mail :	accounts@jainexgroup.com
Website :	http://www.jainexgroup.com

Engineering Division :	1 and 2, Broach Sadan, Devji Ratansi Marg, Mumbai-400009, Maharashtra, India
Tel. No.:	91-22-23482713/ 23482741/ 23480608/ 23482402
Fax No.:	91-22-23481442
E-Mail :	engineering@jainexgroup.com jainex1@vsnl.com

Branches :	Located at: · Bangalore · Chennai · Coimbatore · Hyderabad · Madurai · Pondicherry

DIRECTORS

As on 30.09.2010

Name :	Mr. Bhagat Singh Dugar
Designation :	Director
Address :	11A, Meherina Apartments, Nepeansea Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	23.10.1945
Date of Appointment :	23.03.1974
DIN No.:	00013082

Name :	Mr. Khoozema Mohammed Faizullabhoy
Designation :	Managing Director
Address :	44, Gulistan, Carmicheal Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	19.11.1944
Date of Appointment :	28.06.1978
DIN No.:	00013602

Name :	Mr. Rajendra Singh Dugar
Designation :	Joint Managing Director
Address :	Sandeep Apartments, Pretoria Street, Calcutta-700017, West Bengal, India
Date of Birth/Age :	31.10.1947
Date of Appointment :	05.01.2007
DIN No.:	00063775

Name :	Mr. Pravin Chimanlal Vora
Designation :	Whole Time Director
Address :	Kasturba Apartments, 77, Bhudaji Road, Matunga, Mumbai-400019, Maharashtra, India
Date of Birth/Age :	10.07.1943
Date of Appointment :	19.12.1996
DIN No. :	0013118

Name :	Mr. Rahul Dugar
Designation :	Whole time Director
Address :	11A, Mehrina Apartments, Nepeansea Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	10.11.1968
Date of Appointment :	16.04.2004
DIN No.:	00013704

Name :	Mr. Mukarram Khoozema Faizullabhoy
Designation :	Whole Time Director
Address :	44, Gulistan, Carmicheal Road, Mumbai-400026, Maharashtra, India
Date of Birth/Age :	09.07.1976
Date of Appointment :	16.04.2004
DIN No.:	00013754

Name :	Mr. Shabir Tyebbhoy
Designation :	Whole Time Director
Address :	Old 16, New 14, 3^rd Cross Street, Kasturba Nagar, Adyar, Chennai-600020, Tamilnadu, India
Date of Birth/Age :	25.07.1948
Date of Appointment :	01.04.2010
DIN No.:	03014427

Name :	Mr. Sushil Kumar Dugar
Designation :	Director
Address :	C/9, C-Scheme, Prithiraj Road, Jaipur, Rajasthan, India
Date of Birth/Age :	15.07.1949
Date of Appointment :	20.08.1993
Date of Ceasing:	30.09.2010
DIN No.:	00107567

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders		No. of Shares
Bhagat Singh Dugar		23960
Sushil Kumar Dugar		1600
Rajendra Singh Dugar		1480
Santosh Kumar Dugar		500
K. M. Faizullabhoy		64198
Kiran Kunvar Dugar		700
Madhu Dugar		3667
Madhuri Dugar		660
Meena Dugar		900
Dolly Dugar		900
A K Faizullabhoy Jointly with K M Faizullabhoy		23602
Jainex Imports and Exports Private Limited, Maharashtra, India		44700
B.S. Dugar and Others		40358
R S Dugar		167
Rahul Dugar		95215
Jainex Foods Private Limited, Maharashtra, India		44600
Durriya M Faizullabhoy		2500
Mukarram K Faizullabhoy		97720
Ananya Dugar		8534
Dvij Dugar		8234
Nandita Dugar		23825
Mustafa K Faizullabhoy Jointly with K.M. Faizullabhoy		3980
Mehlam K Faizullabhoy Jointly with K M Faizullabhoy		18000
Trucut Tools India Private Limited, Maharashtra, India		90000
Total		600000

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Bodies corporate	30.00
Directors or relatives of Directors	70.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Supplier of Cold Rolled Steel Strips, Hardened and Tempered Steel Strips and all types of Wires.

Products :

Cold Rolled Steel Strips
Hardened and Tempered Steel Strips
Wires and both Carbon and Stainless

Product Description	ITC Code
Steel Strips	7211.51
Stainless Steel Wire	7223.00
Bandsaw Blades and other Engg. Items	8202.00

Services:

· Trading and Export of Steel Strips, Stainless Steel Wire, Hacksaw/ Bandsaw blades and other engineering items etc.

· Commission, Business and Marketing/ Management Services etc.

· Revenue from Handling contracts, labour/ service charges etc.

· Income from commercial premises.

GENERAL INFORMATION

No. of Employees :

Not Divulged by the Management

Bankers :

Bank of Baroda, Mumbai Main Office, Mumbai Samachar Marg, Fort, Mumbai-400001, Maharashtra, India
ICICI Bank Limited
Kotam Mahindra Bank

Facilities :

Secured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From Bank of Baroda
a) Cash Credit Facility (Secured against hypothecation of stocks in – trade and book debts)	0.000	0.000
b) Liabilities under DALCs (Secured against stocks/ book debt under Lcs) (The limits are further secured by Equitable Mortgage of Company’s premises situated at Broach Sandan, Mumbai and Guaranteed by four directors)	10.148	3.227
Vehicle Loans
From ICICI Bank	0.128	0.513
Kotak Mahindra Bank	1.721	2.616
Total	11.997	6.356

Unsecured Loans	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
From Directors and Also Shareholders
B.S. Dugar	0.308	0.000
R S Dugar	3.926	1.331
M K Faizullabhoy	3.000	0.000
Rahul Dugar	2.802	3.346
Pravin C Vora	2.433	1.695
	12.469	6.372
From Shareholders
Jainex Foods Private Limited	7.900	3.771
Jainex Imports and Exports Private Limited	2.341	0.367
Tru Cut Tools (India) Private Limited	18.477	13.103
P C Vora (HUF)	3.328	3.623
Dugar Brothers and Company	1.212	0.000
A K Faizullabhoy	0.450	0.000
	33.708	20.864
From a Relative of Directors
Rohit Dugar	0.610	0.710

From Body Corporate
Mahesh Stainless Steels Private Limited	0.130	0.130
North Star Impex Private Limited	0.363	0.327
Fluid Control Private Limited	1.000	1.000
Remex Investment Private Limited	0.343	0.311
	1.836	1.768
Grand Total	48.623	29.714


Banking Relations :	--

Auditors :
Name :	R A Singh and Associates Chartered Accountant
Address :	25, Saibaba Shopping Centre, Keshavrao Kadam Marg, Behind Navjivan Society, Mumbai Central, Mumbai-400008, Maharashtra, India
Tel. No.:	91-22-23006009/ 23006011

Associates/Subsidiaries :	Jainex Foods Private Limited Tru-Cut Tools (India) Private Limited Jainex Imports and Exports Private Limited Star Steel Dugar Brothers and Company

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount

1000000	Equity Shares	Rs. 100/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

600000	Equity Shares	Rs. 100/- each	Rs. 60.000 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		60.000	60.000	60.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		71.118	59.474	49.965
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		131.118	119.474	109.965
LOAN FUNDS
1] Secured Loans		11.997	6.356	14.999
2] Unsecured Loans		48.623	29.714	30.346
TOTAL BORROWING		60.620	36.070	45.345
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		191.738	155.544	155.310

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		39.183	15.143	11.907
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.001	0.026	0.026
DEFERREX TAX ASSETS		1.285	0.486	0.303

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	74.052	54.907	73.631
	Sundry Debtors	144.094	105.901	124.784
	Cash & Bank Balances	18.335	20.756	16.364
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	11.788	8.533	9.281
Total Current Assets		248.269	190.097	224.060
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	89.550	46.335	73.959
	Other Current Liabilities	7.665	4.182	6.756
	Provisions	0.013	0.026	0.424
Total Current Liabilities		97.228	50.543	81.139
Net Current Assets		151.041	139.554	142.921

MISCELLANEOUS EXPENSES		0.228	0.335	0.153

TOTAL		191.738	155.544	155.310

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	756.323	835.205	745.458
		Other Income	1.979	1.177	1.385
		Profit on Sale of Fixed assets	0.001	0.004	0.001
		TOTAL (A)	758.303	836.386	746.844

Less	EXPENSES
		Cost of Goods Sold/ Traded	674.882	744.806	677.215
		Administrative Expenses	43.035	36.783	34.063
		Selling and Distribution Expenses	15.319	34.323	13.547
		Loss on Sale of Fixed Assets	0.008	0.005	0.002
		Preliminary Expenses written off	0.107	0.107	0.049
		TOTAL (B)	733.351	816.024	724.876

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		24.952	20.362	21.968

Less	FINANCIAL EXPENSES (D)		4.083	2.263	1.792

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.869	18.099	20.176

Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.915	2.756	1.808

	PROFIT BEFORE TAX (E-F) (G)		17.954	15.343	18.368

Less	TAX (H)		6.310	5.834	6.943

	PROFIT AFTER TAX (G-H) (I)		11.644	9.509	11.425

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.074	0.065	0.039

Less	APPROPRIATIONS
		Transfer to General Reserve	1.200	9.500	11.400
	BALANCE CARRIED TO THE B/S		10.518	0.074	0.064

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	170.675	293.028	212.593
	TOTAL EARNINGS		170.675	293.028	212.593

	IMPORTS
		Import Value	84.253	156.632	51.684
	TOTAL IMPORTS		84.253	156.632	51.684

	Earnings Per Share (Rs.)		19.41	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.54	1.14	1.53

Net Profit Margin (PBT/Sales)	(%)	2.37	1.84	2.46

Return on Total Assets (PBT/Total Assets}	(%)	6.25	7.48	7.78

Return on Investment (ROI) (PBT/Networth)		0.14	0.13	0.17

Debt Equity Ratio (Total Liability/Networth)		1.20	0.72	1.15

Current Ratio (Current Asset/Current Liability)		2.55	3.76	2.76

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors
- For Trading Goods	76.071	36.193	65.857
- Fro Expenses	13.479	10.142	8.102
Total	89.550	46.335	73.959

Note:

The Registered office of the company has been shifted from Broach Sadan, Devji Ratansi Marg, Mumbai-400009, Maharashtra, India to present address w.e.f. 16.08.2010

Operations:

During the year, the slow down in steel sector continued till September 2009 and started improving from the foruth quarter o the year. In addition the company’s exports were also hit badly resulting in decline in exports by 40%. Consequently, the company’s sale were lower than the previous year as can be seen from the figures mentioned above. In the second half of financial year the sale and margins improve considerably resulting in higher profitability. The handling contracts awarded by Tata Steel continues at Hyderabad. The company’s entry into supply of engineering products has been showing steady improvement. The company expects better performance and margins in current year in view of the growth in Indian economy particularly steel sector as well as engineering division.

There has been no development in the position of appeal filed by the company on Kolkata Municipal Coproration in Calcutta High Court for the additional demand of municipal tax on the company’s commercial premises. The company had to pay the arrears of additional demand made by the corporation till March 2008 during the year under pressure to get the hearing of the appeal expedited/ decided at the earliest.

Contingent Liabilities Not Provided For

Particulars

31.03.2010

Rs. in Millions

a) Bank Guarantee (BOB)

3.502

b) LC’s (L/F) (BOB) – awaiting shipment

(Partly secured by FDs held as margin and fully counter guaranteed by four directors of the company)

15.594

Bankers Charges Report as per Registry

Corporate identity number of the company	U51900MH1972PLC094147
Name of the company	JAINEX LIMITED
Address of the registered office or of the principal place of business in India of the company	Broach Sadan, Devji Ratansi Marg, Mumbai-400009, Maharashtra, India
This form is for	Creation of Charge
Type of charge	Immovable Property
Particular of charge holder	Bank of Baroda, Mumbai Main Office, Mumbai Samachar Marg, Fort, Mumbai-400001, Maharashtra, India
Nature of instrument creating charge	1^st Exclusive mortgage charge by way of deposit of title deeds of office premises situated at 405 and 406, 4^th floor, sharda chamber premises co-operative society limited, 15 Sir vihaldas Thackersey Road, New Marine Lines, Mumbai-400020
Date of instrument Creating the charge	03.08.2010
Amount secured by the charge	Rs. 56.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest as determined by the bank from time to time Terms of Repayment On Demand Margin As per Sanction Terms Extent and Operation of the charge Non Fund Based Limits- Inland Guarantee – Rs. 1.500 Millions Inland / Import L/C (Sight/ DA) : Rs. 55.000 Millions Total : Rs. 56.500 Millions
Short particulars of the property charged	Office No. 405 and 406 situated on 4^th Floor, Sharda Chambers premises Co-Operative Society limited, 15 SIR Vithaldas Thackersey Road, New Marine Lines, Mumbai-400020

Fixed Assets

· Freehold Land

· Plant, Machinery and Equipments

· Furniture and Fixtures

· Vehicles

· Computer Systems

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.45.11
UK Pound	1	Rs.72.91
Euro	1	Rs.62.56

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.

MIRA INFORM REPORT

74.052

144.094

18.335

0.000

11.788

248.269

89.550

7.665

0.013

97.228

151.041

1.54

2.37

6.25

0.14

1.20

2.55

Unit