MIRA INFORM REPORT

Report Date :

26.05.2011

IDENTIFICATION DETAILS

Name :	JEF TECHNO SOLUTIONS PRIVATE LIMITED (w.e.f. 19.06.2009)
Formerly Known As :	JEF MARKETING PRIVATE LIMITED
Registered Office :	“Shreenivasam”, I Floor, New Door No. 163, Old Door No. 70/4, Luz Church Road, Mylapore, Chennai – 600004, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.03.1996
Com. Reg. No.:	18-34786
Capital Investment / Paid-up Capital :	Rs. 0.300 Million
CIN No.: [Company Identification No.]	U31908TN1996PTC034786
TAN No.: [Tax Deduction & Collection Account No.]	CHEJ02045B
PAN No.: [Permanent Account No.]	AAACJ2639M
Legal Form :	Private Limited Liability Company
Line of Business :	Commission Agent and Trader of Cables
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 77000
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

LOCATIONS

Registered Office :	“Shreenivasam”, I Floor, New Door No. 163, Old Door No. 70/4, Luz Church Road, Mylapore, Chennai – 600004, Tamilnadu, India
Tel. No.:	91-44-24996022
Fax No.:	91-44-24996188
E-Mail :	accounts@jeftechno.net
Branch Office :	140 Anuraham 2nd Floor, 5th Main, 8th Cross Admanabha Nagar, Bangalore – 560070, Karnataka, India

DIRECTORS

(AS ON 29.09.2010)

Name :	Mr. Krishnamurthy Kanesan
Designation :	Managing Director
Address :	Flat No. I-24, The Nest, 9A, Ratna Nagar, Teynampet, Chennai – 6000018, Tamilnadu, India
Date of Birth/Age :	05.10.1958
Date of Appointment :	12.03.1996
DIN No. :	00623778
Name :	Mr. Rao Prashanth Belur Gururaja
Designation :	Director
Address :	No. 140, 5^th Main, 8^th Cross, Padmanabha Nagar, Bangalore – 560070, Karnataka, India
Date of Birth/Age :	23.05.1970
Date of Appointment :	12.03.1996
DIN No. :	01180379
Name :	Mr. Raohavan Rathna
Designation :	Director
Address :	Flat No. I-24, The Nest, 9A, Ratna Nagar, Teynampet, Chennai – 6000018, Tamilnadu, India
Date of Birth/Age :	30.04.1964
Date of Appointment :	12.03.1996
DIN No. :	00623785
Name :	Mr. Narasimhamurthy Brinda
Designation :	Director
Address :	No. 140, 5^th Main, 8^th Cross, Padmanabha Nagar, Bangalore – 560070, Karnataka, India
Date of Birth/Age :	25.04.1972
Date of Appointment :	24.11.2006
DIN No.:	00623829

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2010)

Names of Shareholders	No. of Shares
Mr. Krishnamurthy Kanesan	13500
Mr. Raohavan Rathna	4500
Mr. Rao Prashanth Belur Gururaja	9000
Mr. Narasimhamurthy Brinda	3000
TOTAL	30000

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Commission Agent and Trader of Cables

Products :

Product Description	Item Code No.
Commission Agent	74130000
Trading Cables	85354010

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity
Cables	In Mtrs.	32.40

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Standard Chartered Bank, 112, Serenity, Koramangala Industrial Area, 5^th Block, Koramangala, Bangalore – 560095, Karnataka, India

· Indian Overseas Bank - Chennai

· HDFC Bank - Chennai

· HDFC Bank – Bangalore

· ICICI Bank

Facility :

Rs in Millions

SECURED LOAN	As on 31.03.2010	As on 31.03.2009
H. P. Loan from ICICI Bank (Secured by hypothecation of Motor Car)	0.095	0.328
TOTAL	0.095	0.328

Banking Relations :	--
Auditors :
Name :	P K K G Balasubramaniam and Associates Chartered Accountants
Address :	Flat No. 3, No. 38, Brindavan Street, West Mambalam, Chennai – 600033, Tamilnadu, India
Tel. No.:	91-44-45512323 / 23720669
E-Mail :	aarandaar@hotmail.com
PAN No. :	AAHFP5605R

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Share	Rs. 10/- each	Rs. 1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
30000	Equity Share	Rs. 10/- each	Rs. 0.300 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		0.300	0.300
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		19.024	15.045
4] (Accumulated Losses)		0.000	0.000
NETWORTH		19.324	15.345
LOAN FUNDS
1] Secured Loans		0.095	0.328
2] Unsecured Loans		2.240	1.500
TOTAL BORROWING		2.335	1.828
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		21.659	17.173
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.613	3.607
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	1.200
DEFERREX TAX ASSETS		0.095	0.053
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.445	2.999
	Sundry Debtors	18.292	20.354
	Cash & Bank Balances	6.499	3.207
	Other Current Assets	0.000	0.000
	Loans & Advances	4.569	4.379
Total Current Assets		34.805	30.939
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.320	9.975
	Other Current Liabilities	2.808	4.877
	Provisions	1.739	3.774
Total Current Liabilities		16.867	18.626
Net Current Assets		17.938	12.313
MISCELLANEOUS EXPENSES		0.013	0.000
TOTAL		21.659	17.173

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES		45.381	53.506
	COMMISSION RECEIVED		2.224	5.372
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		6.273	8.929
Less/ Add	DEPRECIATION/ AMORTISATION		0.689	0.813
	PROFIT BEFORE TAX		5.584	8.116
Less	TAX		1.605	2.760
	PROFIT AFTER TAX		3.979	5.356
	APPROPRIATIONS
		Transfer to General Reserve	19.024	15.045
		Dividend	0.000	0.600
		Tax on Dividend	0.000	0.102
	EARNINGS IN FOREIGN CURRENCY
		For Imports	11.858	13.874
		For Travelling	0.246	0.450
	CIF VALUE OF IMPORTS
		In Euro	161036.51	169416.86
		In USS $	48960.60	60188.73
	Earnings Per Share (Rs.)		132.61	178.52

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	14.53	23.49
Return on Investment (ROI) (PBT/Networth)		0.29	0.53
Debt Equity Ratio (Total Liability/Networth)		0.99	1.33
Current Ratio (Current Asset/Current Liability)		2.06	1.66

LOCAL AGENCY FURTHER INFORMATION

Note : Registered Office of the company has been shifted from No. 7/4, 8^th Street, Nandanam Extention, Chennai – 600035, Tamilnadu, India to the present address w.e.f. 01.12.2009

OPERATIONS

During the year the company could achieve a turnover of Rs. 45.381 Millions as against Rs. 53.506 Millions in the previous year. There has been reduction in the Turnover due to general slow down in the Economy during 2009-2010.

The Company has made a Net Profit after Tax of Rs. 3.979 Millions as against Rs. 4.654 Millions in the previous year. This is due to the severe competition in view of new entrants marketing products imported from countries like China , Turkey Etc..

During this year, the company has launched a New Product i,.e., Maintenance free and Environment Friendly Grounding solutions which they hope presents a big business opportunity with ample growth during the years to come as there is a latent demand for this kind of technology products

Bankers Charges Report as per Registry

Corporate identity number of the company	U31908TN1996PTC034786
Name of the company	JEF TECHNO SOLUTIONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	"Shreenivasam", I Floor, New Door No. 163, Old Door No. 70/4, luz Church Road, Mylapore, Chennai -600004, Tamil Nadu, India accounts@jefmarketing.com
This form is for	Creation of charge
Type of charge	· Book debts · Movable property · Floating charge
Particular of charge holder	Standard Chartered Bank 112, Serenity, Koramangala Indl Area, 5th Block, Koramangala, Bangalore – 560095, Karnataka reenabang@rediffmail.com
Nature of instrument creating charge	Hypothecation Agreement
Date of instrument Creating the charge	24.04.2010
Amount secured by the charge	Rs. 8.980 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Credit Facility. Interest / Commission - As agreed by and with the Bank from time to time. Terms of repayment As agreed by and with the Bank from time to time. Margin As applicable, if any. Extent and operation of the charge The Bank is having first charge on security given by the Company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	a) Hypothecation by way of first charge on: a)all the stock in trade both present and future consisting of raw materials, finished goods, goods in process of manufacturing and other merchandise. b) All the present and future book debts, o/s moneys receivables, claims and bills. c) All movable fixed assets now or at any time hereafter belonging to the Borrowers at the Borrowers factory or at any other premises.

FIXED ASSETS

· Furniture and Fittings

· Vehicles – Car

· Computers

· Land

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.45.28
UK Pound	1	Rs.73.30
Euro	1	Rs.63.61

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	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.