MIRA INFORM REPORT

Report Date :

09.09.2011

IDENTIFICATION DETAILS

Name :	JINESHWAR WRITING INSTRUMENTS LIMITED
Registered Office :	104, Kamla Bhavan, Valbhat Road, Sharma Estate, Goregaon (East), Mumbai – 400 063, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	11.03.1993
Com. Reg. No.:	11-071090
Capital Investment / Paid-up Capital :	Rs.2.400 Millions
CIN No.: [Company Identification No.]	U36991MH1993PLC071090
IEC No.:	0393051935
TAN No.: [Tax Deduction & Collection Account No.]	Mumj04334b
PAN No.: [Permanent Account No.]	AAACJ1711C
Legal Form :	A Closely held Public Limited Liability Company.
Line of Business :	Manufacturer and Importer of all types of Writing Instruments.
No. of Employees :	250 [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 397000
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.

INFORMATION PARTED BY

Name :	Mr. Durgaram Lohar
Designation :	Director
Contact No.:	91-22-66991515
Date :	07.09.2011

LOCATIONS

Registered Office/ Factory :	104, Kamla Bhavan, Valbhat Road, Sharma Estate, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Tel. No.:	91-22-66991515 / 26852341/26852261/26852647
Fax No.:	91-22-26852603 / 26852313
E-Mail :	montex@montexpen.com montex@bom3.vsnl.net.in viaxman@vsnl.com
Website :	www.montexpen.com
Area :	20000 Sq. ft
Location :	Owned
Corporate Office :	AH/2, Shakti House, Cama Industrial Estate, Walbhat Road, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Tel. No.:	91-22-66991515 / 26852241 / 26852261 / 26852647
Fax No.:	91-22-26852603 / 26852318
E-Mail :	montex@bom3.vsnl.net.in
Area :	10000 Sq. ft
Location :	Owned

DIRECTORS

As on 29.09.2010

Name :	Mr. Ramanlal R Jain
Designation :	Director
Address :	401, Shivali Apartment, Azad Nagar Housing Society , JVPD Scheme, Vile Parle (West), Mumbai – 4700 056, Maharashtra, India
Date of Birth/Age :	26.05.1952
Date of Appointment :	11.03.1993
Din :	00863261
Name :	Mr. Rajiv Jain
Designation :	Director
Address :	401, Shivali Apartment, Azad Nagar Housing Society , JVPD Scheme, Vile Parle (West), Mumbai – 4700 056, Maharashtra, India
Date of Birth/Age :	17.04.1975
Date of Appointment :	28.09.1994
Din :	00863322
Name :	Mr. Ramnik Jain
Designation :	Director
Address :	201, Anand Laxmi, Prarthana Samaj, Vile Parle (East), Mumbai – 400 057, Maharashtra
Date of Birth/Age :	11.09.1953
Date of Appointment :	11.03.1993
Din :	00863202
Name :	Mr. Durgaram Lohar
Designation :	Director
Address :	201, Devkidham C – 51, Gokuldham, Goregaon (East), Mumbai – 400 063, Maharashtra
Date of Birth/Age :	05.03.1955
Date of Appointment :	28.09.1994
Din :	01916209

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

Names of Shareholders		No. of Shares
Mr. Ramanlal R Jain		23700
Mr. Ramnik U Jain		50
Mr. Rajiv R Jain		50
Ms. Kamla R Jain		50
Ms. Sonal Rajiv Jain		50
Ms. Asha R Jain		50
Ms. Bharti K Bafna		50
	Total	24000

As on 29.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Importer of all types of Writing Instruments.

Products :

Product Description	Product Description
9608.00	Writing instruments

Brand Names :

“ MONTEX “

Imports :

Products :

Raw Materials

Countries :

v Germany

v Taiwan

v China

v Japan

Terms :

Selling :

Credit / Advance Payment

Purchasing :

Credit / Advance Payment

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Actual Production
Ball Pen and Refills	Nos.	235433.298

GENERAL INFORMATION

Customers :

v Wholesalers

v Retailers

v End Users

No. of Employees :

250 [Approximately]

Bankers :

· Indusind bank Limited, 425, Dadasaheb Bhadkamkar Marg, Opera House, Mumbai – 400 004, Maharashtra, India

• HDFC Bank Limited, State Bank of India

Facilities :

Secured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. in millions)
Indusind Bank Limited (Cash Credit A/c) (The Cash Credit is secured against hypothecation of Fixed Assets, Inventory Book Debts and by personnel guarantee of directors.)	112.818	79.520
Total	112.818	79.520

Unsecured Loans	31.03.2010 (Rs. In Millions)	31.03.2009 (Rs. in millions)
From Director and Associates	163.140	155.537
Total	163.140	155.537

Banking Relations :	-
Auditors :
Name :	S S Jain and Associates Chartered Accountants
Address :	504, Sharda Shopping Centre, 81 Old Nagardas Road, Andheri (East), Mumbai – 400 069, Maharashtra

CAPITAL STRUCTURE

As on 29.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs. 100/- Each	Rs. 5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24,000	Equity Shares	Rs. 100/- Each	Rs. 2.400 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		2.400	2.400	2.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		96.852	93.109	88.875
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		99.252	95.509	91.275
LOAN FUNDS
1] Secured Loans		112.818	79.520	108.386
2] Unsecured Loans		163.140	155.537	130.094
TOTAL BORROWING		275.958	235.057	238.480
DEFERRED TAX LIABILITIES		0.772	1.322	1.322
TOTAL		375.982	331.888	331.077
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		51.007	58.070	68.368
Capital work-in-progress		13.540	1.293	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	206.038	180.579	161.808
	Sundry Debtors	169.025	159.555	169.249
	Cash & Bank Balances	1.663	1.378	0.676
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	42.047	53.107	58.202
Total Current Assets		418.773	394.619	389.935
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	64.482	70.747	71.244
	Other Current Liabilities	38.203	45.310	35.456
	Provisions	4.653	6.039	20.528
Total Current Liabilities		107.338	122.096	127.228
Net Current Assets		311.435	272.523	262.707
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3758.982	331.888	331.077

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	743.033	745.709	825.631
		Other Income	1.009	6.660	2.633
		TOTAL (A)	744.042	752.369	828.264
Less	EXPENSES
		Consumption of Material	356.856	385.861	421.349
		Manufacturing, Selling and Administrative Expenses	316.641	289.327	344.935
		Employees Remuneration and Welfare Expenses	30.595	32.860	41.889
		Increase/(Decrease) in Finished Goods	0.464	3.428	(25.688)
		TOTAL (B)	704.556	711.476	782.485
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		39.486	40.893	45.778
Less	FINANCIAL EXPENSES (D)		18.894	21.908	17.531
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.592	18.985	28.247
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.975	12.429	20.045
	PROFIT BEFORE TAX (E-F) (G)		6.617	6.556	8.202
Less	TAX (H)		2.504	2.321	3.581
	PROFIT AFTER TAX (G-H) (I)		4.113	4.235	4.621
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		65.109	62.875	59.750
Less	APPROPRIATIONS
		Transfer to General Reserve	2.000	2.000	2.000
	BALANCE CARRIED TO THE B/S		66.852	65.109	62.875
	EARNINGS IN FOREIGN CURRENCY		14.384	15.025	13.773
	IMPORTS
		Raw Materials	121.277	99.473	130.061
		Stores & Spares	0.258	0.482	0.356
		Capital Goods	4.817	1.294	2.017
	TOTAL IMPORTS		126.352	101.249	132.434
	Earnings Per Share (Rs.)		171.40	176.460	192.52

Particulars	31.03.2011
Sales Turnover [Approximately]	750.000

The above information has been parted by Mr. Durgaram Lohar [Director].

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.55	0.56	0.56
Net Profit Margin (PBT/Sales)	(%)	0.89	0.88	0.99
Return on Total Assets (PBT/Total Assets}	(%)	14.09	1.44	1.79
Return on Investment (ROI) (PBT/Networth)		0.07	0.07	0.09
Debt Equity Ratio (Total Liability/Networth)		3.86	1.28	1.39
Current Ratio (Current Asset/Current Liability)		3.90	3.23	3.06

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:	64.482	70.747	71.244

REVIEW OF OPERATIONS:

The trade has become more and more competitive, and margins are continuously under pressure. Low value products have shown an increase demand which is further affecting the margin. The sale value is at the same level as in the previous year. The Net Profit before tax during the year has marginally increased by 0.93%. The profit after tax has decreased by 2.29% only. The fall is mainly contributed to increase in cost of raw material, packaging and power.

CURRENT YEAR’S OPERATIONS:

The steps are being taken to modify the product mix, different kind of packing, visibility and other measures to maintain the market share. Competition is emerging from imported products and unorganized sector for low value product putting a pressure on the sales turnover and margin. The sales in the first four months shows a marginal increase trend as compared to immediate preceding year. The management hopes that the current year will show better result.

Form 8:-

Corporate identity number of the company	U36991MH1993PLC071090
Name of the company	JINESHWAR WRITING INSTRUMENTS LIMITED
Address of the registered office or of the principal place of business in India of the company	104 Kamla Bhavanvalbhat Road, Sharma Estate, Goregaon (east), Mumbai – 400 063, Maharashtra
This form is for	Modification of charge
Type of charge	· Book Debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	v Indusind Bank Limited, 425, Dadasaheb Bhadkamkar Marg, Opera House, Mumbai – 400 004, Maharashtra, India E-Mail: vlaxman@vsnl.com
Nature of instrument creating charge	Supplementary agreement of hypothecation for stocks, book debts, receivables, etc
Date of instrument Creating the charge	09.01.2008
Amount secured by the charge	Rs. 123.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest: Interest @ 3.5% below prevailing Prime Lending Rate, which is presently 15.75% p.a subject to minimum of 12.25% p.a with applicable interest tax at monthly rests, such rests to be taken and such interest to be paid by the borrowers / at the end of each month. Terms of repayment: Working capital shall be repayable on demand ; and Medium term loan shall be repayable in such installments as may be determined by the bank. Margin: As may be stipulated by bank from time to time. Extent and Operation of the charge The borrower hypothecates and charges to and in favour of the bank the fixed and current assets and plant and machinery
Short particulars of the property charged (Including location of the property)	Hypothecation of entire current assets of the borrower comprising of stocks of raw materials, work in process finished goods First charge on movable fixed assets of the borrower, both present and future First charge on movables assets, plant and machinery

Fixed Assets:-

· Plant and Machinery

· Tools and Equipments

· Dies and Mould

· Tools and Equipments

· Office Equipments

· Computers

· Air Conditioners

· Vehicles

· Furniture and Fixtures

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.46.17
UK Pound	1	Rs.73.64
Euro	1	Rs.64.95

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	6
--PROFITABILIRY	1~10	4
--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.