MIRA INFORM REPORT

Report Date :

24.08.2012

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) :	31.03.2011
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 410000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track records. 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.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

Name :	Mr. Ranjit
Designation :	Account Executive
Contact No.:	91-22-66991515
Date :	23.08.2012

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.:	91-22-61156115 / 66991515 / 26852261
Fax No.:	91-22-26852603 / 26852318 / 26859667
E-Mail :	montex@bom3.vsnl.net.in
Area :	10000 Sq. ft
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :	Mr. Ramanlal Raghunathmalji 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 :	30.09.2004
Din :	00863261
Name :	Mr. Rajiv Ramanlal 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 :	30.09.2004
Din :	00863322
Name :	Mr. Ramniklal Uttamchand 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 :	30.09.2004
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

KEY EXECUTIVES

Name :	Mr. Ranjit
Designation :	Account Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2010

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

As on 29.09.2010

Equity Share Break up (Percentage of Total Equity)

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 “

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
Ball Pen and Refills	Nos.	206252.031

GENERAL INFORMATION

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	31.03.2011 (Rs. In Millions)	31.03.2010 (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.)	92.809	112.818
Total	92.809	112.818

Unsecured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
From Director and Associates	221.369	163.140
Total	221.369	163.140

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, India
PAN No.:	AABPJ7505J

CAPITAL STRUCTURE

As on 29.09.2011

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		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		2.400	2.400	2.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		99.826	96.852	93.109
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		102.226	99.252	95.509
LOAN FUNDS
1] Secured Loans		92.809	112.818	79.520
2] Unsecured Loans		221.369	163.140	155.537
TOTAL BORROWING		314.178	275.958	235.057
DEFERRED TAX LIABILITIES		0.000	0.772	1.322
TOTAL		416.404	375.982	331.888
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		58.560	51.007	58.070
Capital work-in-progress		0.000	13.540	1.293
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.335	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	266.015	206.038	180.579
	Sundry Debtors	132.020	169.025	159.555
	Cash & Bank Balances	0.716	1.663	1.378
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	47.100	42.047	53.107
Total Current Assets		445.851	418.773	394.619
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	52.051	64.482	70.747
	Other Current Liabilities	30.999	38.203	45.310
	Provisions	5.292	4.653	6.039
Total Current Liabilities		88.342	107.338	122.096
Net Current Assets		357.509	311.435	272.523
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		416.404	375.982	331.888

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	746.538	743.033	745.709
		Other Income	1.057	1.009	6.660
		TOTAL (A)	747.595	744.042	752.369
Less	EXPENSES
		Consumption of Material	378.469	356.856	385.861
		Manufacturing, Selling and Administrative Expenses	323.160	316.641	289.327
		Employees Remuneration and Welfare Expenses	32.105	30.595	32.860
		Increase/(Decrease) in Finished Goods	(24.748)	0.464	3.428
		TOTAL (B)	708.986	704.556	711.476
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		38.609	39.486	40.893
Less	FINANCIAL EXPENSES (D)		18.607	18.894	21.908
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.002	20.592	18.985
Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.848	13.975	12.429
	PROFIT BEFORE TAX (E-F) (G)		4.154	6.617	6.556
Less	TAX (H)		1.092	2.504	2.321
	PROFIT AFTER TAX (G-H) (I)		3.062	4.113	4.235
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		68.851	65.109	62.875
Less	PROVISION FOR TAXATION FOR EARLIER YEARS		0.088	0.371	0.001
Less	APPROPRIATIONS
		Transfer to General Reserve	1.000	2.000	2.000
	BALANCE CARRIED TO THE B/S		68.825	68.851	65.109
	EARNINGS IN FOREIGN CURRENCY		11.606	14.384	15.025
	IMPORTS
		Raw Materials	110.036	121.277	99.473
		Stores & Spares	0.359	0.258	0.482
		Capital Goods	1.155	4.817	1.294
	TOTAL IMPORTS		111.550	126.352	101.249
	Earnings Per Share (Rs.)		127.58	171.40	176.460

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.41	0.55	0.56
Net Profit Margin (PBT/Sales)	(%)	0.56	0.89	0.88
Return on Total Assets (PBT/Total Assets}	(%)	0.82	1.41	1.44
Return on Investment (ROI) (PBT/Networth)		0.04	0.07	0.07
Debt Equity Ratio (Total Liability/Networth)		3.94	3.86	1.28
Current Ratio (Current Asset/Current Liability)		5.05	3.90	3.23

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors:	52.051	64.482	70.747

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	No
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

YEAR IN RETROSPECT

During the year the Company has achieved a sales turnover of Rs. 746.500 Millions as against turnover of Rs. 743.400 Millions in the previous financial year.

Profit for the year is Rs. 4.154 Millions as against Rs. 6.617 Millions in the previous year. The net profit after tax for the year is Rs. 3.062 Millions as against Rs. 4.013 Millions in the previous year.

The management has been putting its best efforts to make optimum use of the resources, however the competition is becoming acute and the packaging demand of the consumer has been changed from 10 pc pack to single pc pack which has mainly attributed in increasing cost of packing material for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

FIXED ASSETS:-

· Plant and Machinery

· Tools and Equipments

· Dies and Mould

· Tools and Equipments

· Office Equipments

· Computers

· Air Conditioners

· Vehicles

· Furniture and Fixtures

· Elevator

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.55.19
UK Pound	1	Rs.87.65
Euro	1	Rs.69.16

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	BSN

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.