MIRA INFORM REPORT

Report Date :

03.10.2011

IDENTIFICATION DETAILS

Name :	JAI BALAJI TILES
Registered Office :	Plot No.08, Khasra No.22/17, Matiala Village, Uttam Nagar, New Delhi – 110059
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	01.01.2006
Capital Investment / Paid-up Capital :	Rs.2.121 Millions
TIN/ VAT No.:	07250380569
PAN No.: [Permanent Account No.]	AHDPJ6904A
Legal Form :	Sole Proprietory Concern
Line of Business :	Manufacturer of Tiles.
No. of Employees :	24 (Approximately) (Office – 6 and Factory – 18)

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is an established proprietory concern having satisfactory track. Trade relations are reported as fair. Business is active. The networth statement provided seems to be satisfactory. No complaints have been heard from the market sources. However, it would be take advisable securities while dealing with the subject.

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/ Factory :	Plot No.08, Khasra No.22/17, Matiala Village, Uttam Nagar, New Delhi – 110059, India
Tel. No.:	Not Available
Mobile No.:	91-9868141688
Location :	Owned

SOLE PROPRIETOR

Name :	Mr. Jagdish
Designation :	Proprietor

BUSINESS DETAILS

Line of Business :	Manufacturer of Tiles.
Terms :
Selling :	Credit (30 days)
Purchasing :	Credit (30 days)

GENERAL INFORMATION

Customers :	Wholesalers
No. of Employees :	24 (Approximately) (Office – 6 and Factory – 18)
Bankers :	Allahabad Bank, Nawada

Banking Relations :	--
Auditors :	Not Available

CAPITAL STRUCTURE

CAPITAL ACCOUNT

(RS. IN MILLIONS)

Particulars	31.03.2011
Opening Capital	1.522
Capital Introduced	0.500
Add: Profit	0.243
Less: Drawings	0.144
Total	Rs.2.121 Millions

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FINANCIAL DATA

[all figures are in Rupees Millions]

Note: Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry Records.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		2.121	1.522	1.431
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2.121	1.522	1.431
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2.121	1.522	1.431
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.750	1.122	1.260
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.385	0.220	0.186
	Sundry Debtors	0.280	0.333	0.159
	Cash & Bank Balances	0.054	0.131	0.048
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		0.719	0.684	0.393
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	0.256	0.189	0.150
	Other Current Liabilities	0.092	0.095	0.072
	Provisions	0.000	0.000	0.000
Total Current Liabilities		0.348	0.284	0.222
Net Current Assets		0.371	0.400	0.171
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2.121	1.522	1.431

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	3.286	2.216	1.622
		Other Income	0.174	0.191	0.214
		TOTAL	3.460	2.407	1.836
Less	EXPENSES
		Cost of Goods Sold	2.440	1.610	1.167
		Freight and Cartage	0.024	0.053	0.049
		Wages and Salary	0.360	0.260	0.240
		Accounting Charges	0.036	0.012	0.012
		Electricity Charges	0.027	0.013	0.010
		Fuel Charges	0.000	0.027	0.019
		Repair and Maintenance	0.033	0.010	0.013
		Other Expenses	0.089	0.049	0.023
		TOTAL	3.009	2.034	1.533
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.451	0.373	0.303
Less/ Add	DEPRECIATION/ AMORTISATION		0.207	0.139	0.157
	NET PROFIT		0.244	0.234	0.146

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.05	9.72	7.95
Net Profit Margin (PBT/Sales)	(%)	7.43	10.56	9.00
Return on Total Assets (PBT/Total Assets}	(%)	9.88	12.96	8.83
Return on Investment (ROI) (PBT/Networth)		0.12	0.15	0.10
Debt Equity Ratio (Total Liability/Networth)		0.16	0.19	0.16
Current Ratio (Current Asset/Current Liability)		2.07	2.41	1.77

LOCAL AGENCY FURTHER INFORMATION

ASSESSMENT OF WORKING CAPITAL REQUIREMENT

OPERATING STATEMENT

(RS. IN MILLIONS)

Particulars	2011-12	2012-13
	(Projected)
GROSS INCOME
Domestic	5.500	6.500
Export	0.000	0.000
Total	5.500	6.500
Less: Excise Duty	0.000	0.000
Net Sales	5.500	6.500
% rise [+] or fall [-] in net sales as compared to previous year	34.28	16
Cost of Sales
Raw Materials Consumed
- Imported	0.000	0.000
- Indigenous	4.540	5.000
Others Stores and Spares
- Imported	0.000	0.000
- Indigenous	0.000	0.000
Power and Fuel	0.035	0.050
Direct Wages (Factory Wages and Salaries)	0.775	0.750
Other Operational Expenses	0.000	0.000
Depreciation	0.184	0.165
Sub Total	5.534	5.965
Add: Opening Stock-In-Process	0.000	0.000
Sub Total	5.534	5.965
Deduct: Closing Stock-In-Process	0.000	0.000
Cost of Production	5.534	5.965
Add: Opening Stock of Finished Goods	0.385	0.850
Sub Total	5.919	6.815
Deduct: Closing Stock of Finished Goods	0.850	1.050
SUB TOTAL (Total cost of sales)	5.069	5.765
Selling, General and Administrative Expenses	0.243	0.271
Sub Total	5.312	6.035
Operating Profit before interests	0.188	0.465
Interests on Term Loan	0.090	0.090
Operating profit after Interests	0.098	0.375
Non Operating Income	0.203	0.000
Non Operating Expenses	0.000	0.000
Net of Non-operating Income and Expenses	0.203	0.000
Profit before Tax/ Loss [PBT]	0.300	0.375
Provision for taxes	0.000	0.000
Net Profit / Loss [PAT]	0.300	0.375
Retained Profit	0.300	0.375
Retained profit/ Net Profit % age	--	--
Debt Service Coverage Ratio (DSC)	0.3	0.24

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ANALYSIS OF BALANCE SHEET

(RS. IN MILLIONS)

Particulars	2011-12	2012-13
	(Projected)
CURRENT LIABILITIES
Short Term Borrowing from Bank
i. From Application Bank	0.900	0.900
ii. From Other Banks	0.000	0.000
SUB TOTAL (A)	0.900	0.900
Short Term Borrowings From Others	0.000	0.000
Sundry Creditors (Trader)	0.650	0.800
Advances Payment from customers	0.000	0.000
Provision For Taxes	0.000	0.000
Dividend Payable	0.000	0.000
Other Statutory Liabilities (due within one years)	0.000	0.000
Installments of term loans and Deferred Payment Credits	0.000	0.000
Other current Liabilities and Provisions (due within one years)	0.000	0.000
SUB TOTAL (B)	0.650	0.800
TOTAL CURRENT LIABILITIES	15.500	17.000
TERM LIABILITIES
Debentures	0.000	0.000
Redeemable Preference Shares	0.000	0.000
Term Loans	0.000	0.000
Deferred Payment Credits	0.000	0.000
Unsecured Loans	0.000	0.000
Term Deposit	0.000	0.000
Other Term Liabilities	0.000	0.000
TOTAL TERM LIABILITIES	0.000	0.000
TOTAL OF OUTSIDE LIABILITIES	15.500	17.000
NET WORTH
Proprietors Capital A/c	2.121	2.016
Application Money	0.000	0.000
Partner’s Current A/c	0.000	0.000
General Reserve	0.000	0.000
Revolution Reserve	0.000	0.000
Reserves and Surplus	0.000	0.000
Unsecured Loans	0.000	0.000
Share Premium Account	0.000	0.000
Surplus (+) or deficit (-) in Profit and Loss Account	0.300	0.375
TOTAL NET WORTH	2.422	2.391
TOTAL LIABILITIES	3.972	4.091
ASSETS
CURRENT ASSETS
Cash and Bank Balance	0.150	0.100
Investments [Other than long term investments]	0.000	0.000
Receivables other than deferred and exports	1.006	1.140
Export receivables	0.000	0.000
Government and other Trustee securities	0.000	0.000
Fixed deposit with bank	0.000	0.000
Domestic receivable Including BP/ BD	0.000	0.000
INVENTORY	0.850	1.050
Raw Materials
- Imported	0.000	0.000
- Indigenous	0.000	0.000
Stock in Process	0.000	0.000
Finished Goods	0.000	0.000
Other Consumable Spares	0.000	0.000
Advances to suppliers	0.000	0.000
Advance Payment of Taxes	0.000	0.000
Other Current Assets	0.850	1.050
TOTAL CURRENT ASSETS	2.006	2.290
FIXED ASSETS
NET BLOCK	1.965	1.801
OTHER NON CURRENT ASSETS
Investments in sub Cos./ Affiliates	0.000	0.000
Advances to suppliers of Capital goods and contractors	0.000	0.000
Investment in Others	0.000	0.000
Other Non-Current Investment	0.000	0.000
TOTAL OTHER NON CURRENT ASSETS	0.000	0.000
Intangible Assets	0.000	0.000
TOTAL ASSETS	3.972	4.091
Tangible Net Worth (TNW)	1.550	1.700
Current Ratio	1.29	1.35
Net Working Capital (NWC)	0.456	0.590
Debt Services Coverage Ratio	0.3	0.24
TOL/ TNW	2.68	3.34
Net Profit / Sales	0.054573	0.057692

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COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES

(RS IN MILLIONS)

Particulars	2011-12	2012-13
	(Projected)
Raw Materials
[a] Imported	0.000	0.000
Months Consumption	0.000	0.000
[b] Indigenous	4.540	5.000
Months Consumption	0.000	0.000
Other consumable spares (Excluding those included 1 above)
[a] Imported	0.000	0.000
Months Consumption	0.000	0.000
[b] Indigenous	0.000	0.000
Months Consumption	0.000	0.000
Stock in process	0.000	0.000
Months cost of production	0.000	0.000
Finished goods	0.000	0.000
Months cost of sales	0.000	0.000
Receivable other than export and deferred receivables [including bills purchased and discounted by bankers]	1.006	1.140
Months domestic sales	--	--
Export receivables [including bills purchased and discounted by bankers]	0.000	0.000
Months export sales	--	--
Advances to suppliers of raw materials and stores/ spares consumable	0.000	0.000
Other current Assets including cash and bank balances and deferred receivable due within one year	0.150	0.100
TOTAL CURRENT ASSETS	5.696	6.240
B CURRENT LIABILITIES
[Other than bank borrowing for working capital]
Creditors for purchases of raw materials and stores and consumable spares	0.650	0.80
Months Purchases	--	--
Advances from customers	--	0.000
Statutory Liabilities	0.000	0.000
Other current liability Specify Major Items) Current Loan Inst.	0.000	0.000
TOTAL CURRENT LIABILITIES	0.650	0.850
CLOSING STOCK	0.850	1.050
Add: Consumable	4.540	5.000
Less: Opening Stocks	0.385	0.850
Purchases	5.005	5.200

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COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

(RS. IN MILLIONS)

Particulars	2011-12	2012-13
	(Projected)
Annual Turnover	5.500	6.500
25% of 1 (Margin for Working Capital)	1.375	1.625
Margin Required @ 5% of 1	0.069	0.081
Margin (NWC)	0.456	0.590
(2-3)	1.306	1.544
(2-4)	0.919	1.035
MPBF (5 or 6 Whichever is less)	0.919	1.035

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PROJECTED BALANCE SHEET

(RS. IN MILLIONS)

SOURCES OF FUNDS		31.03.2012	31.03.2013
		(Projected)
SHAREHOLDERS FUNDS
1] Share Capital		2.422	2.391
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		2.422	2.391
LOAN FUNDS
1] Secured Loans		0.900	0.900
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		0.900	0.900
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		3.322	3.291
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.966	1.801
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.850	1.050
	Sundry Debtors	1.006	1.140
	Cash & Bank Balances	0.150	0.100
	Other Current Assets	0.000	0.000
	Loans & Advances	0.000	0.000
Total Current Assets		2.006	2.290
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	0.650	0.800
	Other Current Liabilities	0.000	0.000
	Provisions	0.000	0.000
Total Current Liabilities		0.650	0.800
Net Current Assets		1.356	1.490
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		3.322	3.291

PROFIT & LOSS ACCOUNT

(RS. IN MILLIONS)

	PARTICULARS		31.03.2012	31.03.2013
			(Projected)
	SALES
		Income	5.500	6.500
		Other Income	0.203	0.000
		TOTAL	5.703	6.500
Less	EXPENSES
		Cost of Goods Sold	4.075	4.800
		Freight and Cartage	0.050	0.075
		Wages and Salary	0.775	0.750
		Accounting Charges	0.045	0.048
		Electricity Charges	0.035	0.050
		Fuel Charges	0.000	0.000
		Repair and Maintenance	0.042	0.028
		Other Expenses	0.197	0.209
		TOTAL	5.219	5.960
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.484	0.540
Less/ Add	DEPRECIATION/ AMORTISATION		0.184	0.165
	NET PROFIT		0.300	0.375

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STATEMENT OF ASSETS AND LIABILITIES

NAME OF THE APPLICANT: MR. JAGDISH

(RS. IN MILLIONS)

ASSETS

IMMOVABLE PROPERTY

Particulars	Applicant
Address of the Property with survey No./ Door No. etc.	House No.2, Village Matiala/ Jain Park, Main Matial Road, Plot No.24B, India
Description	Building and Land
Whether Freehold/ Leasehold	Freehold
Type of Property : Commercial/ Residential/ Agricultural	Residential
Area/ Extent of Land	250 + 150 sq. ft. = 400 sq. ft.
Mortgaged for availing loan if any detail thereof	No.
Present Market / Assessed Value	Rs.25.000 Millions

INVESTMENT IN BUSINESS CAPITAL

Name of the Company/ Firm/ concern in Which investment is made	Jai Balaji Tiles
Date of Investments	2006
Present value of Investment	Rs.2.121 Millions

VEHICLES OWNED

Model/ Make	Hundai 110 (2009)/ Tata 407 (2003)
Date of Purchases	2009
Present Market Value	Rs.0.300 Million and Rs.0.250 Million

OTHER ASSETS

Furniture and Fixture	0.250
Cash in Hand	0.044
Jewellery	0.200
Plant and Machinery	1.400
Other Assets	0.100
Total Value of Other Assets	Rs.1.994 Millions

TOTAL ASSETS

RS.29.665 MILLIONS

NET WORTH

RS.29.665 MILLIONS

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TRADE REFERENCE:

· Uflex Industries

· Baldev Engineering

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.48.93
UK Pound	1	Rs.76.52
Euro	1	Rs.66.65

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.