MIRA INFORM REPORT

Report Date :

25.04.2012

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) :	31.03.2011
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, Exporter and Importer 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 1100000
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. Profit and loss account of the company for the current year in 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
Contact No.:	91-22-22846598
Date :	24.04.2012

LOCATIONS

Registered Office :	1213, Maker Chamber, V-221, Nariman Point, Mumbai-400021, Maharashtra, India
Tel. No.:	91-22-22846598/ 22825687/ 22846599
Fax No.:	91-22-22846599/ 22840494
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
Location:	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
Area:	720 sq. mtr.
Location :	Owned

DIRECTORS

(AS ON 30.09.2011)

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
Din No.:	02260880
Name :	Mr. Vishal Shivprakash Bhartia
Designation :	Director
Address :	64, Hari Bhavan, 1^st Floor, Peddar Road , Mumbai – 400 026, Maharashtra, India
Date of Birth/ Age:	22.11.1980
Qualification :	MBA
Date of Appointment :	06.02.2008
Din No.:	02145224
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
Din No.:	00478640
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
Din No.:	02243075

KEY EXECUTIVES

Name :	Mr. Dashrath
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 30.09.2011)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Writing Instruments.
Exports :
Products :	Writing Instruments
Countries :	· Middle East · France · China
Imports :
Products :	Raw Materials
Countries :	· Switzerland · Germany · Japan · China
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	L/C, Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity*	Actual Production
Ball Point Tips	Gross	NA	20000000	16691425

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

GENERAL INFORMATION

Suppliers :

· Swiss Metal

· American Express Credit Card

· M L Bhuwania and Company

· Creative Trade and Export Private Limited

· Indian Steel and Allied Industries

· New Globe Logistic Private Limited

· TNT India Private Limited

Customers :

Wholesalers and Retailers

No. of Employees :

250 (Approximately)

Bankers :

Ø Oriental Bank of Commerce,

B-1, Matru Ashish, Nepean Sea Road, Mumbai – 400 036, 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 Loans	31.03.2011	31.03.2010
	(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-58 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)	33.000	73.500
ICICI Bank Limited (Secured By second exclusive charge by way of mortgage and hypothecation of the entire fixed and movable assets both present and future including specifically at Plot nos. H-50, W-58 and W-60, MIDC Area Satpur, Nashik and first exclusive charge by way of mortgage and hypothecation of the entire fixed and movable assets both present and future including specifically at plot nos. W-61 MIDC Area Satpur, Nashik and a floating charge on all the other assets of the company and additionally secured by irrevocable joint and several guarantee of some of the director)	29.842	0.000
ICICI Bank Limited Car Loan (Secured by way of Mortgage and Hypothecation of the Mercedes Benz E-250 Motor car)	2.939	0.000
Total	65.781	73.500
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Directors	58.837	40.574
From Share Holders and Relatives	19.272	31.901
From Companies	0.000	0.103
Total	78.109	72.578

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
PAN No.	AAAFM1380R
Other Related Parties :	· Indian Adhesives and Writing Instruments Private Limited · Indian Pens and Stationery · Indian Steel and Allied Industries

CAPITAL STRUCTURE

(AS ON 30.09.2011)

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		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		5.511	5.511	5.511
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		263.821	222.597	158.931
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		269.332	228.108	164.442
LOAN FUNDS
1] Secured Loans		65.781	73.500	110.000
2] Unsecured Loans		78.109	72.578	65.319
TOTAL BORROWING		143.890	146.078	175.319
DEFERRED TAX LIABILITIES		30.337	28.044	15.865
TOTAL		443.559	402.230	355.626
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		384.730	335.941	256.526
Capital work-in-progress		3.399	3.013	0.603
INVESTMENT		49.959	60.976	41.211
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	29.842	10.542	9.163
	Sundry Debtors	155.920	118.012	125.570
	Cash & Bank Balances	14.993	32.424	19.287
	Other Current Assets	2.248	0.932	1.598
	Loans & Advances	114.587	101.785	77.432
Total Current Assets		317.590	263.695	233.050
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	236.987	206.776	131.484
	Other Current Liabilities	5.391	7.636	6.026
	Provisions	69.741	46.983	38.254
Total Current Liabilities		312.119	261.395	175.764
Net Current Assets		5.471	2.300	57.286
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		443.559	402.230	355.626

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	717.193	710.907	640.888
		Other Income	60.722	67.595
		TOTAL (A)	777.915	778.502	640.888
Less	EXPENSES
		(Increase)/ Decrease in stock in Trade	(14.294)	(1.073)
		Purchase For Resale	0.000	0.050
		Consumption of Raw Materials	460.183	444.805
		Consumption of Stores and Spares	46.967	40.672
		Manufacturing Expenses	80.867	80.947
		Personal Expenses	17.188	14.625
		Administrative and Selling Expenses	53.907	38.132
		TOTAL (B)	644.818	618.158	615.352
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		133.097	160.344	(Including Financial Expenses and Depreciation)
Less	FINANCIAL EXPENSES (D)		15.248	19.024
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		117.849	141.320
Less/ Add	DEPRECIATION/ AMORTISATION (F)		51.916	45.508
	PROFIT BEFORE TAX (E-F) (G)		65.933	95.812	25.536
Less	TAX (H)		24.700	30.870	7.769
	PROFIT AFTER TAX (G-H) (I)		41.233	64.942	17.767
Less/ Add	Earlier Year Tax		0.009	1.276	NA
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		218.597	154.931	NA
	BALANCE CARRIED TO THE B/S		259.821	218.597	NA
	EARNINGS IN FOREIGN CURRENCY
		FOB value of goods exported	151.954	117.678	141.651
		Development charges	1.565	1.308	2.332
	TOTAL EARNINGS		153.519	118.986	143.983
	IMPORTS
		Raw Materials	333.300	301.166	290.748
		Stores & Spares	12.601	7.444	8.676
		Capital Goods	83.280	62.570	44.376
	TOTAL IMPORTS		429.181	371.180	343.800
	Earnings Per Share (Rs.)		748.03	1155.25	309.60

Particulars	31.03.2012
Sales Turnover (Approximately)	790.000

Expected Sales (2012-13): Rs.850.000 Millions

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

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	5.30	8.34	2.77
Net Profit Margin (PBT/Sales)	(%)	9.19	13.48	NA
Return on Total Assets (PBT/Total Assets}	(%)	9.39	15.98	5.22
Return on Investment (ROI) (PBT/Networth)		0.24	0.42	0.16
Debt Equity Ratio (Total Liability/Networth)		1.69	1.79	2.13
Current Ratio (Current Asset/Current Liability)		1.02	1.01	1.33

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors For Goods	130.906	145.163	126.340
Sundry Creditors For Capital Goods	98.098	48.703	0.000
Sundry Creditors For Expenses	7.983	12.910	5.144
Total	236.987	206.776	131.484

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	Yes
Major Suppliers	Yes
Major Customers	No
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

CONTINGENT LIABILITY NOT PROVIDED FOR IN RESPECT OF:

Particular	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Disputed Income Tax Liability	0.000	0.000	0.441
Deferred Custom Duty	58.285	75.244	70.976
Total	58.285	75.244	71.417

BANKERS CHARGES REPORT AS PER REGISTRY

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
This form is for	Creation of charge
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.98.600 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.

TRADE REFERENCES:

· Swiss Metal

FIXED ASSETS

· Factory Land

· Factory Building

· Office Premises

· Plant and Machinery

· Electrical Installation

· Furniture and Fixture

· Office Equipment

· Computer

· Refrigerator

· Air Conditioner

· Vehicles

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.52.79
UK Pound	1	Rs.85.17
Euro	1	Rs.69.53

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NIT

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.