MIRA INFORM REPORT

Report Date :

09.05.2012

IDENTIFICATION DETAILS

Name :	BEHARI LAL AND COMPANY
Registered Office :	66, Basti Nau, Jalandhar – 144002, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	1957
Capital Investment / Paid-up Capital :	Rs.3.851 Millions (As on 31.03.2011)
TAN No.: [Tax Deduction & Collection Account No.]	JLDB01358A
PAN No.: [Permanent Account No.]	AABFB4156B
Legal Form :	Partnership Concern with an Unlimited Liability of the partners.
Line of Business :	Manufacturer and Exporter of Sport Goods Like, Soccer Ball, Rugby Ball, Football, Volley Ball, Net Ball.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 15000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established partnership concern having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The concern 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.

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 :	Mr. Binny
Designation :	Office Incharge
Contact No.:	91-181-5191000/ 8427558222
Date :	25.04.2012

LOCATIONS

Registered Office :	66, Basti Nau, Jalandhar – 144002, Punjab, India
Tel. No.:	91-181-2252590/ 5191000
Mobile No.:	91-9815829206 (Mr. Mukesh Kumar)
Fax No.:	91-181-2258370/ 2650791
E-Mail :	belaco@belaco.in blco@belco.in mukesh@belaco.in
Website :	http://www.belaco.in
Area :	3000 sq. ft.
Location :	Owned
Factory :	101, Nahaln Road, Basti Danishmandan, Jalandhar – 144002, Punjab, India
Area :	2500 sq.mtrs
Location :	Owned

PARTNERS

Name :	Mr. Mukesh Kumar
Designation :	Partner
Date of Birth/Age :	31 Years
Qualification :	Graduate
Name :	Mr. Naresh Kumar
Designation :	Partner
Date of Birth/Age :	29 Years
Qualification :	Graduate
Name :	Mr. Jit Raj
Designation :	Partner
Date of Birth/Age :	56 Years
Qualification :	Under Graduate
Name :	Mr. Balbir Raj
Designation :	Partner
Date of Birth/Age :	54 Years
Qualification :	Under Graduate

KEY EXECUTIVES

Name :	Mr. Binny
Designation :	Office Incharge

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Sport Goods Like, Soccer Ball, Rugby Ball, Football, Volley Ball, Net Ball.
Products :	· Soccer Ball · Rugby Ball · Football · Volley Ball · Net Ball · Australian Football · American Football · Inflatable Ball · Cricket Bat and Accessories · Hockey and Hockey Accessories · Boxing and Martial Arts Equipments · Soft Leather Products · Baseball · Hurling Ball · Soccer Accessories · Sports Wear · Sports Shoes · Badminton Racket and Shuttle · Roller Skates · Old Style Leather Football & Helmet  · Promotional Sports Goods
Exports :
Products :	Sport Goods
Countries :	· UK · Europe · South Africa · Australia
Terms :
Selling :	Depends
Purchasing :	Depends

GENERAL INFORMATION

Suppliers :	· Paradise Rubber
Customers :	End Users and Importers · Just Balls Limited, UK
No. of Employees :	100 (Approximately)
Bankers :	· Punjab National Bank, Jalandhar, Punjab, India · HDFC Bank · State Bank of India
Facilities :	CC = Rs.5.000 Millions from Punjab National Bank

Banking Relations :	--
Auditors :
Name :	Surinder Mahakan and Company Chartered Accountants
Address :	Jalandhar, Punjab, India
Associates/Subsidiaries :	² Bassan Enterprises, Jalandhar (Trader of Sports Good and Lather Raw Materials)  ² Belco India, Jalandhar (Manufacturer of Sport Goods)

CAPITAL STRUCTURE

PARTNER’S CAPITAL ACCOUNTS AS ON 31.03.2011

(RS. IN MILLIONS)

Name of the Partners	Balance As on 01.04.2010	Additions During the year	Withdrawals During the Year Interests on Capital	Salary During the year	Total	Profit Ratio	Share of Profit	Balance As on 31.03.2011
Mr. Jeet Raj	0.565	0.000	0.375	0.046	0.611	25%	0.213	0.824
Mr. Balbir Chand	0.630	0.000	0.422	0.053	0.635	25%	0.213	0.848
Mr. Mukesh Kumar	0.567	0.115	0.373	0.060	0.745	25%	0.213	0.957
Mr. Naresh Kumar	0.685	0.090	0.221	0.081	1.010	25%	0.213	1.222
Total	2.447	0.205	1.391	0.240	3.001		0.852	3.851

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2012
Sales Turnover (Approximately)	30.000

Expected Sales (2012-13): Rs.40.000 Millions

The above information has been parted by Mr. Binny.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.851	2.448
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		0.000	0.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		3.851	2.448
LOAN FUNDS
1] Secured Loans		3.169	0.924
2] Unsecured Loans		3.227	2.863
TOTAL BORROWING		6.396	3.787
DEFERRED TAX LIABILITIES		0.000	0.000
TOTAL		10.247	6.235
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.126	2.496
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	3.188	3.404
	Sundry Debtors	8.571	9.172
	Cash & Bank Balances	2.445	0.331
	Other Current Assets	0.000	0.000
	Loans & Advances	3.383	2.820
Total Current Assets		17.587	15.727
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	7.733	8.098
	Other Current Liabilities	2.733	3.890
	Provisions
Total Current Liabilities		10.466	11.988
Net Current Assets		7.121	3.739
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		10.247	6.235

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income	35.991	37.436
		Other Income	7.662	5.256
		TOTAL	43.653	42.692
Less	EXPENSES
		Cost of Goods Sold	26.535	26.079
		Freight, Octroi and Cartage	1.079	1.061
		Electricity Charges	0.190	0.138
		Wages and Labour Charges	8.395	8.642
		Generator and Fuel A/c	0.136	0.145
		Salary	0.756	0.882
		Bonus	0.165	0.179
		Salary to Partners	1.500	1.471
		Travelling Expenses	1.062	0.772
		Other Expenses	2.605	2.203
		TOTAL	42.423	41.572
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1.230	1.120
Less/ Add	DEPRECIATION/ AMORTISATION		0.380	0.289
	NET PROFIT		0.850	0.831

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010
PAT / Total Income	(%)	1.95	1.95
Net Profit Margin (PBT/Sales)	(%)	2.36	2.22
Return on Total Assets (PBT/Total Assets}	(%)	4.10	4.56
Return on Investment (ROI) (PBT/Networth)		0.22	0.34
Debt Equity Ratio (Total Liability/Networth)		4.38	6.44
Current Ratio (Current Asset/Current Liability)		1.68	1.31

LOCAL AGENCY FURTHER INFORMATION

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	No
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 two 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	Yes
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	No
Last Accounts filed at ROC	Yes
Major Shareholders, if available	No

TRADE REFERENCE:

· Just Balls Limited, UK

· Paradise Rubber

FIXED ASSETS

· Building

· Cycle

· Electric Power Press

· Leather Processing Machine

· Furniture and Fixture

· Machinery

· Measurement

· Press Machine

· Scooter

· Tools Equipments

· Weighing Machine

· Electric Meter

· Three Wheeler

· Land

· Car

· Generator

· Mobile Phone

· Computer

· Air Conditioner

· Fan

· Machinery Under Installation

· Electric Fitting

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.52.85
UK Pound	1	Rs.85.44
Euro	1	Rs.68.81

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	NO
--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		46

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.