MIRA INFORM REPORT

Report Date :

22.05.2012

IDENTIFICATION DETAILS

Name :	MUKAND INDUSTRIES PRIVATE LIMITED
Registered Office :	B-XXX, 2185 203/1, Phase VII, Focal Point, Ludhiana - 141 010, Punjab
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.04.2001
Com. Reg. No.:	16-024353
Capital Investment / Paid-up Capital :	Rs.35.000 Millions
CIN No.: [Company Identification No.]	U00000PB2001PTC024353
TAN No.: [Tax Deduction & Collection Account No.]	JLDM00721A
PAN No.: [Permanent Account No.]	AACCM5981B
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Paper and Board and also Manufacturer of Plastic Laminate and Wind Turbine Generator
No. of Employees :	120 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 340000
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.

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. Lokesh Bansal
Designation :	Director
Contact No.:	91-9814222999
Date :	21.05.2012

LOCATIONS

Registered Office :	B-XXX, 2185 203/1, Phase VII, Focal Point, Ludhiana - 141 010, Punjab, India
Tel. No.:	91-161-5053953 / 5026901 / 5026909
Mobile No.:	91-98142 22999 (Mr. Lokesh Bansal)
Fax No.:	91-161-5026920 / 5026919
E-Mail :	info@mukandindustries.com client_akh@yahoo.com co_client@yahoo.co.in
Website :	http://www.mukandindustries.com
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :

Mr. Lokesh Bansal

Designation :

Director

Address :

12-A, New Mandi, Muzaffar nagar, Uttar Pradesh, India

Date of Birth/Age :

26.09.1972

Date of Appointment :

23.04.2001

DIN No.:

00460823

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	U00000PB2001PTC024353	MUKAND INDUSTRIES PRIVATE LIMITED	Director	23/04/2001	23/04/2001	-	Active	NO
2	U17115PB1997PLC019557	EASTMAN INTERNATIONAL LIMITED	Director	1/6/2007	1/6/2007	20/03/2010	Active	NO

Name :

Mr. Sachin Singal

Designation :

Director

Address :

144-A, Aggar Nagar, Ludhiana – 141 003, Punjab, India

Date of Birth/Age :

01.01.1983

Date of Appointment :

01.05.2007

DIN No.:

00461016

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	U17110PB2004PLC026711	EASTMAN KOHINOOR COTTEX LIMITED	Director	12/1/2004	12/1/2004	30/09/2010	Active	NO
2	U00000PB2001PTC024353	MUKAND INDUSTRIES PRIVATE LIMITED	Director	1/5/2007	1/5/2007	-	Active	NO

Name :

Mr. Ramesh Gupta

Designation :

Director

Address :

144-A, Aggar Nagar, Ludhiana, Punjab, India

Date of Birth/Age :

17.09.1957

Date of Appointment :

30.06.2001

DIN No.:

00568050

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	U17115PB1997PLC019557	EASTMAN INTERNATIONAL LIMITED	Director	10/3/1997	10/3/1997	-	Active	NO
2	U00000PB2001PTC024353	MUKAND INDUSTRIES PRIVATE LIMITED	Director	30/06/2001	30/06/2001	-	Active	NO

Name :

Mr. Joginder Pal

Designation :

Director

Address :

5, Moji Colony, Daba Road, Ludhiana, Punjab, India

Date of Birth/Age :

25.11.1968

Date of Appointment :

15.06.2005

DIN No.:

01571270

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	U00000PB2001PTC024353	MUKAND INDUSTRIES PRIVATE LIMITED	Director	15/06/2005	15/06/2005	-	Active	NO
2	U17115PB1997PLC019557	EASTMAN INTERNATIONAL LIMITED	Director	1/6/2007	1/6/2007	24/04/2010	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Rakesh Gupta	1697900
Lokesh Bansal	498000
Sneh Bansal	136000
Vipul Bansal	179000
Prem Narain Bansal	576000
Prem Narain and Sons (HUF)	186000
Manish Gupta	100
Shilpi Bansal	121000
Atul Singal	52000
Lokesh Bansal and Sons (HUF)	54000
Total	3500000

As on 30.09.2011

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 :	Trader of Paper and Board and also Manufacturer of Plastic Laminate and Wind Turbine Generator
Products :	· Packing Material · Wind Energy · Trading of Paper and Packing Material
Exports :
Products :	Plastic Laminate and Wind Turbine Generator
Countries :	Malaysia
Terms :
Selling :	L/C / Cash / Credit
Purchasing :	L/C / Cash / Credit

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Laminate and Poly Film #	Kgs	12780000	2406982
Electric Units #	Kgs	2600000	1957794

# certified by management, being a technical matter.

GENERAL INFORMATION

Supplier :

Jindal

· Bharat Steels

· Naman Impex

· S.J Plywood and Laminates

Customers :

Wholesalers and Retailers

· Ballarpur Industries Limited

No. of Employees :

120 (Approximately)

Bankers :

· State Bank of India, Overseas Branch, Ludhiana – 141 003, Punjab, India

· Punjab National Bank

· ICICI Bank Limited

· HDFC Bank Limited

· HSBC

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Working Capital loan Form State Bank of India, Overseas Branch, Ludhiana (Secured by way of first charge on stock, book debts and personally guaranteed by directors)
SBI C/C to 3035624641	42.986	25.254
SBI C/C (Hypothecation) A/C 10318976284	33.204	12.992
FCNRB Loan A/C	0.000	46.212
Term Loans (Secured by way of first charge on movable and immovable assets of company and personal guarantee of directors)
SBI Term Loan A/C No. 30357021919	28.666	32.036
SBI Term Loan A/C No. 30960255612	3.771	4.708
SBI Term Loan A/C No. 30313943607	23.496	28.280
Car Loans (Secured against, Hypothecation of Car)
HDFC Bank limited Forklift Loan	0.927	0.000
HDFC Car Loan	0.402	0.595
HDFC Credit Card No. 5289456002099518	0.017	0.000
Total	133.470	150.078
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
From Shareholders and Relatives
Mr. Rakesh Gupta	13.940	11.690
Mr. Prem Narain Bansal	0.500	0.000
Form Director
Mr. Lokesh Bansal	2.250	0.000
Total	16.690	11.690

Banking Relations :	--
Auditors :
Name :	Goyal Sanjay and Associates Chartered Accountant
Address :	11, Gian Market, G.T.Road, Miller Ganj, Opp. Ramgarhia Gurudwara, Ludhiana 141 001, Punjab, India
Tel. No.:	91-161-2532266 / 3240508
PAN.:	AAAFG6668G
Related Parties:	· Eastman international · Eastman Fab Limited · Ramesh Steels · Maxwell lnc.

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 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		35.000	32.000	27.200
2] Share Application Money		0.000	3.000	12.000
3] Reserves & Surplus		51.134	44.042	21.267
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		86.134	79.042	60.467
LOAN FUNDS
1] Secured Loans		133.470	150.078	159.309
2] Unsecured Loans		16.690	11.690	28.690
TOTAL BORROWING		150.160	161.768	187.999
DEFERRED TAX LIABILITIES		0.612	2.320	17.478
TOTAL		236.906	243.130	265.944
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		116.772	119.703	121.097
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	77.826	70.980	28.129
	Sundry Debtors	119.719	113.503	160.190
	Cash & Bank Balances	3.389	2.913	4.254
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	15.257	18.407	31.962
Total Current Assets		216.191	205.803	224.535
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	70.925	67.910	66.423
	Other Current Liabilities	23.258	12.835	11.735
	Provisions	1.874	1.648	1.563
Total Current Liabilities		96.057	82.393	79.721
Net Current Assets		120.134	123.410	144.814
MISCELLANEOUS EXPENSES		0.000	0.017	0.033
TOTAL		236.906	243.130	265.944

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	535.349	290.480	280.898
		Other Income	0.903	3.141	8.034
		TOTAL (A)	536.252	293.621	288.932
Less	EXPENSES
		Increase / (Decrease) in WIP and Finished Goods	(5.307)	(24.328)
		Cost of Raw materials Consumed	321.784	155.188
		Cost of Trading Goods	141.898	100.891
		Manufacturing Expenses	12.071	7.567	255.044
		Personnel Expenses	12.323	9.126
		Administrative Expenses	13.059	7.346
		Selling Expenses	0.925	1.087
		Loss on Sales of Fixed Assets	0.025	0.001
		Preliminary Expenditure Written Off	0.017	0.017
		TOTAL (B)	496.795	256.895	255.044
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		39.457	36.726	33.888
Less	FINANCIAL EXPENSES (D)		20.535	18.114	16.390
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.922	18.612	17.498
Less/ Add	DEPRECIATION/ AMORTISATION (F)		17.707	18.110	15.784
	PROFIT BEFORE TAX (E-F) (G)		1.215	0.502	1.714
Less	TAX (H)		(1.482)	(15.072)	16.427
	PROFIT AFTER TAX (G-H) (I)		2.697	15.574	(14.713)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		26.041	10.467	24.160
	Income Tax Previous Year		(0.105)	0.000	1.020
	BALANCE CARRIED TO THE B/S		28.633	26.041	10.467
	IMPORTS
		Raw Materials	NA	12.308	1.524
	TOTAL IMPORTS		NA	12.308	1.524
	Earnings Per Share (Rs.)		0.77	4.87	NA

Particulars	31.03.2012
Sales Turnover (Approximately)	620.000

Expected Sales (2012-13) : Rs.900.000 Millions

The above information has been parted by Mr. Lokesh Bansal

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.50	5.30	(5.09)
Net Profit Margin (PBT/Sales)	(%)	0.23	0.17	0.61
Return on Total Assets (PBT/Total Assets}	(%)	0.36	0.15	0.50
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.03
Debt Equity Ratio (Total Liability/Networth)		2.86	3.09	4.43
Current Ratio (Current Asset/Current Liability)		2.25	2.50	2.82

LOCAL AGENCY FURTHER INFORMATION

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	No
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%	--
14) Estimation for coming financial year	Yes
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
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

PERFORMANCE REVIEW

During the year the company achieved a turnover including other incomes of Rs.541.559 Millions as compared to Rs.317.949 Millions in the previous year. After meeting out expenditure and providing for tax the company earned a profit of Rs 1.215 Millions during the year as compared to a profit of Rs 0.501 Million in the previous year.

Trade References

· Jindal

· Ballarpur Industries Limited

Bankers Charges Report as per Registry

Corporate identity number of the company	U00000PB2001PTC024353
Name of the company	MUKAND INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	B-XXX, 2185 203/1, Phase VII, Focal Point, Ludhiana - 141 010, Punjab client_akh@yahoo.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10092323
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	State Bank of India, Overseas Branch, Ludhiana – 141 003, Punjab, India gurbinder.batra@sbi.co.in
Nature of instrument creating charge	Agreement of loan cum hypothecation
Date of instrument Creating the charge	28.04.2011
Amount secured by the charge	Rs.197.600 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest WC 14.00% p.a TL 14.50 % p.a Terms of Repayment Working capital- on demand subject to max of 12 months from the date of sanction. TL the repayment of all tl shall continue as per original repayment sechedule. Margin STOCK - 25% BOOK DEBTS - 40% Extent and Operation of the charge 100%
Short particulars of the property or asset(s) charged (including complete address and location of the property)	WC First charge by way of hypothecation of all current assets of the company both present and future including stocks, receivables and other spares. TL First charge on entire fixed assets of the company acquired out of bank finance.
Date of instrument modifying the charge	30.08.2009
Particulars of the present modification	The Credit limit enhanced from Rs.175.400 Millions to Rs.197.600 Millions in the following manner: A) FUND BASED LIMITS: (a) CC (hypothecation)- Rs. 50.000 Millions (b) CC (Bd)- Rs 50.000 Millions (c) TL-I – Rs.24.300 Millions (d) TL-II- Rs.29.400 Millions. TL III (Fresh) Rs.3.900 Millions Total FBL Rs.157.600 Millions (B) NON-FUND BASED LIMIT:(a) LC/FLC- Rs. 40.000 Millions (b)BG- Rs (20.000) Millions Total NFBL Rs 40.000 Millions

Fixed Assets

· Furniture

· Electronic Fitting

· Fans

· Plant and machinery

· Mobile Phones

· Electronic Weighting Machine

· Fire Extinguisher

· Plant and Machinery (Sitting Machine)

· Tools and Dies

· UPS System

· Office Equipment

· Crain and Chain Kupi

· Water Purifier

· Mosclip Fly Killer

· Computer

· Vehicles

Web Details:

Profile:

Subject is a leading manufacturing and exporting company since 2003, having turnover of more than 20 Million US$. Being into this trading business from last 5 years we have a strong hold on all Raw Materials. They are one stop shop for all packing solutions.

As a leading manufacturer, they endeavor to supply high quality and high precision products that conform to global quality standards. There cutting edge technology and high quality standards at every level of the organization has helped then to find a strong foothold in the global arena. They believe in strong ethical business standards and complete transparency in their dealings with their valued customers.

They introduce Flexible packaging Films, Paper/Board and Links and Varnishes distributors with market presence in Punjab, Chandigarh, Himachal Pradesh, Jammu and Kashmir and western Uttar Pradesh.

They are working for the following manufacturers:-

· Jindal Polyfilms Limited (Nasik)

· Max India Limited (Roper)

· Dev Priya Product Limited (Meerut)

· Sakata Inx. (Japan)

· Arets Graphics. (Belgium)

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.54.68
UK Pound	1	Rs.86.52
Euro	1	Rs.69.86

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NTH

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	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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.