MIRA INFORM REPORT

Report Date :

19.05.2011

IDENTIFICATION DETAILS

Name :	INDIAN WRITING INSTRUMENTS PRIVATE LIMITED
Registered Office :	1213, Maker Chamber, V-221, Nariman Point, Mumbai-400021, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	15.01.1991
Com. Reg. No.:	11-59815
Capital Investment / Paid-up Capital :	Rs.5.511 Millions
CIN No.: [Company Identification No.]	U36991MH1991PTC059815
TAN No.: [Tax Deduction & Collection Account No.]	MUMI06058D
PAN No.: [Permanent Account No.]	AAAC11987R
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer, Importer and Exporter of Writing Instruments
No. of Employees :	350 (Approximately)

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 910000
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. Latest Profit and Loss of the Company is Not Available.

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. Dashrath Kondaskar
Designation :	Accounts Manager
Date :	18.05.2011

LOCATIONS

Registered Office :	1213, Maker Chamber, V-221, Nariman Point, Mumbai-400021, Maharashtra, India
Tel. No.:	91-22-22846598
Fax No.:	91-22-22846599
E-Mail :	vineshkshah@sara-india.com iwi@bol.net.in sara_ca@vsnl.net indianwriting@hathway.com contact@iwi-co.in
Area :	600 sq ft (Owned)
Factory :	H-50, Nashik Industrial Area, MIDC, Satpur, Nasik - 422 007, Maharashtra, India
Tel. No.:	91-253-2351019/ 6627501
Fax No.:	91-253-6627500
Location :	720 sq. mtr. (Owned)

DIRECTORS

As on 30.09.2010

Name :	Mr. Prashant Omprakash Bhartia
Designation :	Director
Address :	301, Balanoral Apartments, 2 Prasad Street, London – W21JL, UK
Date of Birth/ Age:	05.10.1974
Qualification :	MBA
Date of Appointment :	06.02.2008
Name :	Mr. Vishal Bhartia
Designation :	Director
Address :	64, Hari Bhavan, 1^st Floor, Peddar Road , Mumbai – 400 026, Maharashtra, India
Date of Birth/ Age:	22.11.1989
Qualification :	MBA
Date of Appointment :	06.02.2008
Name :	Mr. Shivprakash Bhartia
Designation :	Director
Address :	64, Hari Bhavan, 1^st Floor, Peddar Road , Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	12.11.1957
Qualification :	B.Com
Date of Appointment :	03.03.2007
Name :	Ms. Vidya Omprakash Bhartia
Designation :	Director
Address :	64, Hari Bhavan, 1^st Floor, Peddar Road , Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	07.11.1952
Date of Appointment :	06.02.2008

KEY EXECUTIVES

Name :	Mr. Dashrath Kondaskar
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Shivprakash Bhartia	4870
Vishal Bhartia	9185
Vidya Omprakash Bhartia	7800
Prashant Omprakash Bhartia	14055
Ritudevi Bhartia	7800
Omprakash Bhartia HUF	5700
Shivprakash Bhartia HUF	5700
Total	55110

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Importer and Exporter of Writing Instruments
Exports :
Products :	Ball Point-Pens
Countries :	Mexico Netherlands USA Indonesia Brazil Singapore Malaysia Bangladesh Germany Argentina France Spain China Thailand Egypt South Africa
Imports :
Products :	Raw Material
Countries :	US Japan Italy Korea Switzerland Germany China
Terms :
Selling :	L/C / Cash / Credit (30 days / 60 days / 90 days)
Purchasing :	L/C / Cash / Credit (30 days / 60 days / 90 days)

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity*	Actual Production
Ball Point Tips	Gross	15000000	12963673

Note: *As certified by directors and relied upon by the auditors.

GENERAL INFORMATION

Customers :

End Users, OEM’s and Others

No. of Employees :

350 (Approximately)

Bankers :

Ø Oriental Bank of Commerce, B-1, Matru Ashish, Nepean Sea Road, Mumbai – 400 036, Maharashtra

Ø The State Industrial and Investment Corporation of Maharashtra Limited, Nirmal, 1^st Floor, Mumbai – 400 021, Maharashtra, India

Ø ICICI Bank, Nariman Point Branch

Ø State Bank of India, Nariman Point

Ø ICICI Bank Limited, Landmark Race, Cource Circle, Alkapuri, Baroda-390015, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
SICOM Limited (Secured by first exclusive charge by way of mortgage and hypothecation of the entire fixed and moveable assets both present and future including specifically at Plot nos. H-50, W-53 and W-60, MIDC Area Satpur, Nashik and a floating charge on all the other assets of the company and additionally secured by irrevocable joint and several personal guarantee of some of the directors)	73.500	110.000
Total	73.500	110.000
Unsecured Loan
From Directors	40.574	29.481
From Share Holders and Relatives	31.901	32.225
From Companies	0.103	3.613
Total	72.578	65.319

Banking Relations :	--
Auditors :
Name :	M. L. Bhuwania and Company Chartered Accountants
Address :	F-11, 3^rd Floor, Manek Mahal, 90 Veer Nariman Road, Churchgate, Mumbai-400020, Maharashtra, India
Tel. No.:	91-22-61174949
Fax No.:	91-22-61174950
Associates/Subsidiaries :	Kamla Knitting Works Private Limited Indian Adhesives and Writing Instruments Private Limited Frontline Roll Forms Limited Indian Pens and Stationery Indian Steel and Allied Industries

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
60000	Equity Shares	Rs.100/- each	Rs.6.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
55110	Equity Shares	Rs.100/- each	Rs.5.511 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		5.511	5.511	5.511
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		222.597	158.931	141.869
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		228.108	164.442	147.380
LOAN FUNDS
1] Secured Loans		73.500	110.000	144.500
2] Unsecured Loans		72.578	65.319	60.547
TOTAL BORROWING		146.078	175.319	205.047
DEFERRED TAX LIABILITIES		28.044	15.865	20.753
TOTAL		402.230	355.626	373.180
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		335.941	256.526	256.639
Capital work-in-progress		3.013	0.603	0.000
INVESTMENT		60.976	41.211	34.480
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.542	9.163	9.968
	Sundry Debtors	118.012	125.570	120.543
	Cash & Bank Balances	32.424	19.287	25.084
	Other Current Assets	0.932	1.598	2.973
	Loans & Advances	101.785	77.432	113.499
Total Current Assets		263.695	233.050	272.067
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	206.776	131.484	151.515
	Other Current Liabilities	7.636	6.026	4.047
	Provisions	46.983	38.254	34.444
Total Current Liabilities		261.395	175.764	190.006
Net Current Assets		2.300	57.286	82.061
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		402.230	355.626	373.180

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income
		Other Income
		TOTAL	NA	640.888	615.227
Less	EXPENSES
		Office Expenses
		Administrative Expenses	NA	615.352	578.097
		Advertising Expenses
		TOTAL	NA	615.352	578.097
	PROFIT BEFORE TAX		NA	25.536	37.130
Less	TAX		NA	7.769	10.849
	PROFIT AFTER TAX		NA	17.767	26.281
	EARNINGS IN FOREIGN CURRENCY
		FOB value of goods exported	0.000	141.651
		Development charges	1.308	2.332
	TOTAL EARNINGS		1.308	143.983	NA
	IMPORTS
		Raw Materials	301.166	290.748
		Stores & Spares	7.444	8.676	NA
		Capital Goods	62.570	44.376
	TOTAL IMPORTS		371.180	343.800	NA
	Earnings Per Share (Rs.)		1155.25	309.60	476.88

Particulars	31.03.2011
Sales Turnover (Approximately)	750.000

Expected Sales (2011-12) : Rs.800.000 millions

The above information has been parted by Mr. Dashrath Kondaskar.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	2.77	4.27
Return on Total Assets (PBT/Total Assets}	(%)	NA	5.21	7.02
Return on Investment (ROI) (PBT/Networth)		NA	0.15	0.25
Debt Equity Ratio (Total Liability/Networth)		1.79	2.13	2.68
Current Ratio (Current Asset/Current Liability)		1.00	1.33	1.43

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
Sundry Creditors For Goods	145.163	126.340	147.775
Sundry Creditors For Capital Goods	48.703	0.000	0.000
Sundry Creditors For Expenses	12.910	5.144	3.740
Total	206.776	131.484	151.515

CONTINGENT LIABILITY NOT PROVIDED FOR IN RESPECT OF:

Particular	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Disputed Income Tax Liability	0.000	0.441
Deferred Custom Duty	75.244	70.976
Total	75.244	71.417

Bankers Charges Report as per Registry

This form is for	Creation of charge
Corporate identity number of the company	U36991MH1991PTC059815
Name of the company	INDIAN WRITING INSTRUMENTS P LIMITED
Address of the registered office or of the principal place of business in India of the company	1213, Maker Chamber, V-221, Nariman Point, Mumbai-400021, Maharashtra, India
Type of charge	Immovable Property
Particular of charge holder	ICICI Bank Limited, Landmark Race, Cource Circle, Alkapuri, Baroda-390015, Gujarat, India
Email	nabha.nirody@icicibank.com
Nature of description of the instrument creating or modifying the charge	Memorandum of entry was executed by borrower on the 28th day of February, 2011 to create second charge in favour of ICICI Bank Limited ( first charge being in favor of SICOM Limited ) in respect of the Borrowers immovable properties situated at Plot No.H-50, W-60 A, W 58 A, MIDC Satpur ,Nashik.
Date of instrument Creating the charge	28.02.2011
Amount secured by the charge	Rs.89.600 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per sanction Terms of Repayment on demand Margin as per sanction Extent and Operation of the charge Second charge on immovable properties situated at Plot No.H-50, W-60 A, W 58 A, MIDC Satpur ,Nashik
Short particulars of the property charged	I) Plot No. H-50, Nashik Industrial Area, MIDC Satpur, Nashik Muncipal Corporation Registration Sub-District Nashik and Registration District Nashik admeasurements 826.0 sq. mtrs. II) Plot No.W-60(A) Nashik Industrial Area, MIDC Satpur, Nashik Muncipal Corporation Registration Sub-District Nashik and Registration District Nashik admeasurements 720 sq. mtrs. III) Plot No W-58(A) Nashik Industrial Area, MIDC Satpur, Nashik Muncipal Corporation Registration Sub-District Nashik and Registration District Nashik admeasurements admeasurements 720 sq. mtrs.

Fixed Assets

Ø Plant and Machinery

Ø Factory Building

Ø Electrical Installation

Ø Furniture and Fixture

Ø Vehicles

Ø Computer

Ø Air Conditioner

Ø Refrigerator

Ø Office Equipment

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.45.08
UK Pound	1	Rs.73.35
Euro	1	Rs.64.30

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	YES
--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.