MIRA INFORM REPORT

Report Date :

03.04.2012

IDENTIFICATION DETAILS

Name :	KRAYCOL STATIONERY PRIVATE LIMITED
Registered Office :	1, p. p. Industrial Estate, Deepanjali Nagar, Link Road, Off Mysore Road, Bangalore – 560026, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.04.2002
Com. Reg. No.:	08-030382
Capital Investment / Paid-up Capital :	Rs.2.055 Millions
CIN No.: [Company Identification No.]	U24242KA2002PTC030382
TAN No.: [Tax Deduction & Collection Account No.]	BLRK03750F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Crayons.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (31)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 10000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Ms. Manjula
Designation :	Sales Executive
Contact No.:	91-9341254991
Date :	10.03.2012

LOCATIONS

Registered Office :	1, p. p. Industrial Estate, Deepanjali Nagar, Link Road, Off Mysore Road, Bangalore – 560026, Karnataka, India.
Tel. No.:	91-80-26745617
Mobile No.:	91-9341254991 (Ms. Manjula)
Fax No.:	91-80-26745742
E-Mail :	customercare@kraycol.com kraycol@vsnl.net
Website :	www.kraycol.com
Location :	Rented
Factory :	No.38/7-24, II Floor, Vasavi Chambers, Annex D, LBG Road, Bangalore – 560004, Karnataka

DIRECTORS

As on 30.09.2011

Name :

Mr. S. Nandakishore

Designation :

Director

Address :

No.46/41, 12th Main, Padmanabha Nagar, Bangalore – 560070, Karnataka, India

Date of Birth/Age :

30.12.1959

Date of Appointment :

18.04.2002

DIN No.:

01798022

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U24242KA2002PTC030382	KRAYCOL STATIONERY PRIVATE LIMITED	Director	18/04/2002	18/04/2002	-	Active	NO
2	U05190KA2004PTC033254	ORION COATINGS PRIVATE LIMITED	Director	27/01/2004	27/01/2004	-	Active	NO

Name :

Ms. S. N. Lakshmi

Designation :

Director

Address :

No.46/41, 12th Main, Padmanabha Nagar, Bangalore – 560070, Karnataka, India

Date of Birth/Age :

09.05.1969

Date of Appointment :

18.04.2002

DIN No.:

00880819

Name :

Mr. A. S. Somashekara Reddy

Designation :

Director

Address :

No. 99/17, Pipe Line, 12^th Main, Hanumatha Nagar, Bangalore – 560050, Karnataka, India

Date of Birth/Age :

04.04.1963

Date of Appointment :

06.12.2002

DIN No.:

01744679

KEY EXECUTIVES

Name :	Ms. Manjula
Designation :	Sales Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
S. Nandakishore	80000
S. N. Lakshmi	107500
A. S. Somasekara Reddy	12500
C M Narasimha Reddy	100
B N Gupta	100
Sudha B Gupta	100
S. Siddaraju	100
S. Siddaraju (HUF)	100
Pravin Prabhudas Sanghavi	5000
Total	205500

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Crayons.
Products :	Wax Crayons Plastic Crayons Oil Pastels Poster Colours Water Colours Tempra Colours Brushes Colours Chart
Terms :
Selling :	Cash/ Credit (30 – 60 days)
Purchasing :	Cash/ Credit (30 – 60 days)

GENERAL INFORMATION

Suppliers :

· 3C Corporation

· Alok Chem Corporation

· B. P. Agency

· Indian Oil Corporation

· Knoll Chem Industries

· Geoflex Enterprises

· Bhaskar Binding Works

· Glory Colours

· First Flight Couriers Limited

· Kumar Agencies

· Shrink Packaging Systems Private Limited

Customers :

Wholesalers, Retailers and End Users

· Sunrise Distributors

· Sanghvi Corporation

· Bharati Traders

· Kanishka International

· Kids Animation India Private Limited

· N. Chimanlal and Company

· Champs Corporation

No. of Employees :

100 (Approximately)

Bankers :

· Dena Bank, K G Road Branch, K G Road, Bangalore – 560009, Karnataka, India

· ICICI Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Dena Bank Cash Credit	4.323	4.774
Dena Bank Loan A/c-1	0.208	0.187
Centurion Bank Ltd A/c	0.203	0.292
Dena Bank Term Loan	0.817	0.000
Total	5.551	5.253
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Loans from Shareholders	5.165	4.227
ICICI Bank Loan A/c	0.111	0.239
ICICI Bank Credit Card A/c	0.015	0.000
Total	5.291	4.466

Banking Relations :	--
Auditors :
Name :	Vijay Sreeram and Company Chartered Accountants
Address :	25, Second Floor, Manibasappa Buildings, Lalbagh Fort Road, Bangalore – 560004, Karnataka, India
PAN.:	AAQPV1449J

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
205500	Equity Shares	Rs.10/- each	Rs.2.055 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		2.055	2.055	2.055
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.673	1.291	0.939
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3.728	3.346	2.994
LOAN FUNDS
1] Secured Loans		5.551	5.253	4.138
2] Unsecured Loans		5.291	4.466	3.475
TOTAL BORROWING		10.842	9.719	7.613
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		14.570	13.065	10.607
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.420	3.873	2.934
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	7.039	6.283	5.428
	Sundry Debtors	5.657	4.938	4.994
	Cash & Bank Balances	0.089	0.659	0.182
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	0.718	1.242	0.377
Total Current Assets		13.503	13.122	10.981
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.587	3.156	2.656
	Other Current Liabilities	0.005	0.021	0.000
	Provisions	0.768	0.766	0.672
Total Current Liabilities		5.360	3.943	3.328
Net Current Assets		8.143	9.179	7.653
MISCELLANEOUS EXPENSES		0.007	0.013	0.020
TOTAL		14.570	13.065	10.607

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
SALES
	Turnover	35.342	32.897	26.679
EXPENSES
	TOTAL	5.389	26.240	26.240
PROFIT BEFORE TAX		0.552	0.558	0.439
TAX		(1.121)	(0.733)	0.136
PROFIT AFTER TAX		1.673	1.291	0.303
Earnings Per Share (Rs.)		8.14	27.16	1.48

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Return on Total Assets (PBT/Total Assets}	(%)	2.77	3.28	3.15
Return on Investment (ROI) (PBT/Networth)		0.15	0.17	0.15
Debt Equity Ratio (Total Liability/Networth)		4.35	4.08	3.65
Current Ratio (Current Asset/Current Liability)		2.52	3.33	3.29

LOCAL AGENCY FURTHER INFORMATION

Note:

The Register office address has been shifted from No 38/7-24, II Floorvasavi Chambers, Annex D, LBG Road, Bangalore-560004, Karnataka, India to present w.e.f. 09.01.2009.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24242KA2002PTC030382
Name of the company	KRAYCOL STATIONERY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	1, p. p. Industrial Estate, Deepanjali Nagar, Link Road, Off Mysore Road, Bangalore – 560026, Karnataka, India Email : kraycol@vsnl.net
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90195721
Type of charge	Book Debts Movable Property
Particular of charge holder	Dena Bank, K G Road Branch, K G Road, Bangalore – 560009, Karnataka, India Email : kgroad@denabank.co.in
Nature of instrument creating charge	Deed of hypothecation (goods, book debts and other moveable assets to secure facilities
Date of instrument Creating the charge	27.04.2010
Amount secured by the charge	Rs.5.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit 13.00% Term loan 13.50% Terms of Repayment Principal repayable in 60 monthly installments of Rs.0.017 Million with first installment due and payable on 31^st May 2010 Margin 27.40% Extent and Operation of the charge Charge on stocks and plant and machinery created to secure repayment of term loan and cash credit limits sanctioned to the Company
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Hypothecation of stock of raw materials, WIP finished goods, packing materials, etc. Hypothecation of plant and machinery- existing as well as proposed machinery and future additions
Particulars of the present modification	Total limits Rs.5.500 Millions is the combination of CC Rs.4.500 Millions and Term Loan Rs.1.000 Million (limits enhanced from Rs.4.000 Millions)

Fixed assets

· Computer

· Electrical Equipment

· Liquid Filling Machine

· Printer Hp

· Office Equipments

· Kinetic Style

· Matador

· Fire Extinguisher

· Three Wheeler Auto

· Solar Systems

· Plant and Machinery

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.51.16
UK Pound	1	Rs.81.80
Euro	1	Rs.68.34

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		31

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.