MIRA INFORM REPORT

Report Date :

25.05.2012

IDENTIFICATION DETAILS

Name :	MADHU JAYANTI INTERNATIONAL LIMITED
Formerly Known As :	ADL TEA COMPANY LIMITED
Registered Office :	Jay Complex, 46, Bipin Behari Ganguly Street, Kolkata – 700012, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.04.1950
Com. Reg. No.:	21-018768
Capital Investment / Paid-up Capital :	Rs.11.850 Millions
CIN No.: [Company Identification No.]	U15491WB1950PLC018768
TAN No.: [Tax Deduction & Collection Account No.]	CALM00544F
PAN No.: [Permanent Account No.]	AABCM7502R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Trader of Teabags.
No. of Employees :	200 ( In Office – 15, In Factory – 175, In Branches – 10) (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 1800000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an old and well established company having satisfactory track. The company has continuously incurred losses for last two years. However, Net worth appears to be satisfactory. 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

LOCATIONS

Registered Office :	Jay Complex, 46, Bipin Behari Ganguly Street, Kolkata – 700012, West Bengal, India
Tel. No.:	91-33-22152686 / 66522950
Fax No.:	91-33-22257422
E-Mail :	info@jaytea.com sanjib@jaytea.com calacc@jaytea.com
Website :	www.jaytea.com
Location :	Owned

DIRECTORS

As on 29.09.2011

Name :	Mr. Harish Jayantilal Shah
Designation :	Managing Director
Address :	6 Copper Street, Kolkata, West Bengal, India
Date of Birth/Age :	22.07.1952
Date of Appointment :	25.03.1989
Qualification :	B.Com
DIN No.:	00317789

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	U15491WB1950PLC018768	MADHU JAYANTI INTERNATIONAL LIMITED	Managing director	01-10-11	25-03-89	-	Active	NO
2	U72200WB2007PTC116763	IRELY SOFTSERVICES (INDIA) PRIVATE LIMITED	Director	25-06-07	25-06-07	21-02-09	Active	NO
3	U51909WB1987PTC042671	JAY COMMOTRADE PRIVATE LIMITED	Director	26-10-10	26-10-10	-	Active	NO
4	U65993WB1980PTC032675	MULTILATERAL FINANCE AND INVESTMENTS PRIVATE LIMITED	Director	26-10-10	26-10-10	-	Active	NO
5	U70200WB2011PTC168165	JAY ESTATES PRIVATE LIMITED	Director	26-09-11	26-09-11	-	Active	NO

Name :	Mrs. Manisha Harish Shah
Designation :	Director
Address :	6 Copper Street, Kolkata, West Bengal, India
Date of Birth/Age :	05.04.1956
Date of Appointment :	28.09.2006
Qualification :	B. Com
DIN No.:	00318034

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U70101WB1983PTC036872	EXIM SERVICEAND SURVEILLANCE CO PRIVATE LIMITED	Director	06-09-04	06-09-04	Active	NO
2	U51909WB1987PTC042671	JAY COMMOTRADE PRIVATE LIMITED	Director	26-10-10	06-09-04	Active	NO
3	U65993WB1980PTC032675	MULTILATERAL FINANCE AND INVESTMENTS PRIVATE LIMITED	Director	27-09-05	27-09-05	Active	NO
4	U15491WB1950PLC018768	MADHU JAYANTI INTERNATIONAL LIMITED	Director	28-09-06	28-09-06	Active	NO
5	U70200WB2011PTC168165	JAY ESTATES PRIVATE LIMITED	Director	26-09-11	26-09-11	Active	NO

Name :	Mr. Aspi Homi Kapadia
Designation :	Director
Address :	162/B/323, lake Gardens, Kolkata, West Bengal, India
Date of Birth/Age :	29.12.1941
Date of Appointment :	11.08.2005
Qualification :	B. Com
DIN No.:	00574924

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	U01132KA1980PLC043348	INDIAN PRODUCTS LIMITED	Director	19-12-03	19-12-03	29-09-07	Active	NO
2	U15491WB1950PLC018768	MADHU JAYANTI INTERNATIONAL LIMITED	Director	11-08-05	11-08-05	-	Active	NO
3	U72200WB2007PTC116763	IRELY SOFTSERVICES (INDIA) PRIVATE LIMITED	Director	31-12-07	31-12-07	-	Active	NO

Name :	Mr. Meetesh Shah
Designation :	Director
Address :	314, Chitramala Apartments, I Block East, Byrasandra, Jaynagar, Bangalore – 560011, Karnataka, India
Date of Birth/Age :	10.09.1969
Date of Appointment :	21.03.2007
Qualification :	B. Com
DIN No.:	01395695
Name :	Mr. Sumit Shah
Designation :	Director
Address :	6 Copper Street, Kolkata, West Bengal, India
Date of Birth/Age :	25.11.1984
Date of Appointment :	10.08.2011
DIN No.:	03607140

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Multilateral Finance and Investment Limited, India	1
Manisha H Shah	358802
Harish Jayantilal Shah	576194
Jay Commotrade Private Limited, India	1
Karta Harish Jayantilal Shah	1
Exim Services and Surv. Company Private Limited, India	1
Sumit H Shah	250000
Total	1185000

As on 29.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	0.01
Directors or relatives of directors	99.99
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Trader of Teabags.

Products :

ITC Code No.	Product Description
09.02.0000	Tea
39.02.1000	P. P. Products

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Actual Production
Tea	Kgs.	9632
Jute Goods	Kgs.	161
Cotton	Kgs.	-
PP Product	Kgs.	943

GENERAL INFORMATION

No. of Employees :

200 ( In Office – 15, In Factory – 175, In Branches – 10) (Approximately)

Bankers :

· Karnataka Bank Limited, Park Street Branch, 1, Sarojini Naidu Sarani, Kolkata - 700017, West Bengal, India

Facilities :

(Rs. In Millions)

Secured Loans	31.03.2011	31.03.2010
Working Capital Bank Loan Secured	285.512	342.655
Total	285.512	342.655

(Rs. In Millions)

Unsecured Loans	31.03.2011	31.03.2010
Other Debt Unsecured	5.337	0.000
Total	5.337	0.000

Banking Relations :	--
Auditors :
Name :	AC Roy and Company Chartered Accountants
Address :	1-B, Old Post Office Street, Kolkata – 700001, West Bengal, India
Tel. No.:	91-33-22482925
PAN No.:	ACLPR8757Q
Associates :	Jay Commotrade Private Limited CIN No.: U51909WB1987PTC042671 Exim services and Surveillance Co-Operative Limited CIN No.: U70101WB1983PTC036872 Multilateral Finance and investment Limited CIN No.: U65993WB1980PTC032675 General Commodities Private Limited CIN No.: U15491KA1964PTC009873 Sahibgunj Private Limited CIN No.: U51909WB1957PTC023388 Trot Private Limited CIN No.: U19120WB1963PTC025868 Acme Bag Manufacturing Company (Overseas) Harris Jayanti Technologies Indian Products Limited Jayanti Exports Jayanti Resources Madhu Coffee Private Limited Madhu Jayanti Housing Private Limited Milan Business Associates Limited New city Credit and investment Private Limited Shah Commotrade Private Limited I Rely Soft Services Private Limited Jaybharat Exports Private Limited. Harris Freeman and Company LP (Overseas) Harris Freeman and Company INC (Overseas) Harris Jayanti Inc (Overseas) Multitrade Overseas Pte Limited (Overseas) Harris Tea Associate (Overseas) Jay Rus Company Limited (Overseas) Sacramanto Bag Associate (Overseas) Southern Tea Company USA (Overseas)

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.10 /- each	Rs.12.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1185000	Equity Shares	Rs.10 /- each	Rs.11.850 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		11.850	12.500	12.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		430.461	478.517	493.254
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		442.311	491.017	505.754
LOAN FUNDS
1] Secured Loans		285.512	342.655	257.120
2] Unsecured Loans		5.337	0.000	0.000
TOTAL BORROWING		290.849	342.655	257.120
DEFERRED TAX LIABILITIES		0.020	3.862	6.686
TOTAL		733.180	837.534	769.560
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		207.425	242.845	260.633
Capital work-in-progress		1.405	1.405	0.000
INVESTMENT		63.968	75.427	70.741
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	204.271	252.535	164.161
	Sundry Debtors	220.317	199.494	219.328
	Cash & Bank Balances	5.601	27.972	39.193
	Other Current Assets	30.181	26.052	22.129
	Loans & Advances	92.233	90.558	78.725
Total Current Assets		552.603	596.611	523.536
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.637	12.843	7.396
	Other Current Liabilities	52.004	30.400	42.653
	Provisions	35.580	35.511	35.301
Total Current Liabilities		92.221	78.754	85.350
Net Current Assets		460.382	517.857	438.186
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		733.180	837.534	769.560

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1541.454	1539.789	1450.072
		Other Income	47.139	40.151	67.173
		TOTAL (A)	1588.593	1579.940	1517.245
Less	EXPENSES
		Consumption Materials Changes Inventories	1274.473	1230.271	1420.585
		Manufacturing Service Costs	88.142	80.508
		Contract Cost	0.000	0.391
		Employee Related Expenses	19.880	24.055
		Administrative Selling Other Expenses	161.228	172.738
		Prior Period Items Before Tax	(1.428)	0.000
		TOTAL (B)	1542.295	1507.963	1420.585
					(including the
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		46.298	71.977	Financial Charges)
Less	FINANCIAL EXPENSES (D)		37.232	35.050
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.066	36.927	96.660
Less/ Add	DEPRECIATION/ AMORTISATION (F)		34.638	54.276	31.354
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(25.572)	(17.349)	65.306
Less	TAX (I)		(2.346)	(2.613)	10.981
	PROFIT / (LOSS) AFTER TAX (G-I) (J)		(23.226)	(14.736)	54.325
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		108.517	123.253	78.928
	APPROPRIATION
	Transfer to General Reserve		0.000	0.000	10.000
	BALANCE CARRIED TO THE B/S		85.291	108.517	123.253
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	865.080	900.590	844.737
		Claimed Received		1.276	1.577
	TOTAL EARNINGS		865.080	901.866	846.314
	IMPORTS
		Raw Materials	NA	121.621	74.024
		Packing Materials	NA	67.607	42.599
		Capital Goods	NA	4.28	3.313
	TOTAL IMPORTS		NA	193.508	119.936
	Earnings / (Loss) Per Share (Rs.)		(20.25)	(11.79)	43.46

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(1.46)	(0.93)	3.58
Net Profit Margin (PBT/Sales)	(%)	(1.66)	(1.13)	4.50
Return on Total Assets (PBT/Total Assets}	(%)	(3.36)	(2.07)	8.33
Return on Investment (ROI) (PBT/Networth)		(0.06)	(0.04)	0.13
Debt Equity Ratio (Total Liability/Networth)		0.87	0.86	0.68
Current Ratio (Current Asset/Current Liability)		5.99	7.58	6.13

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. Constructions 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	No
10. Designation of contact person	No
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	No
15. Capital in the business	Yes
16. Details of sister concerns	Yes
17. Major suppliers	No
18. Major customers	No
19. Payments terms	No
20. Export / Import details	Yes
21. Market information	------
22. Litigations that the firm / promoter involved	------
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

OPERATIONS AND BUSINESS REVIEW:

The losses of the company have increased compared to last year. Following are some of the causes for the poor results of the Company

1. The total Sales figure has increased merely by 1.35% compared to last year. This is formidable in the face of a substantial adverse movement of Foreign exchange vis--vis INR. The Company could not increase the Sales prices in the year except for a few products, since they had a contract of 2 years with Major International Buyers which ended on 31st March, 2011. These Sales Prices have since been increased. Directors are confident of making profits in the coming years.

2. In contrast the average purchases prices of tea in Indian Tea Auction, increased during the last year from Rs.154.06 millions to Rs. 181.16 millions resulting in an increase of 18%, compared to last year. Major of their purchases are through auctions.

3. There were some international payment defaults which lead to cancellation of certain orders. These orders were ready to ship and the Company had to sell these at 50% discount.

4. Since June 2008 there has been a drop in the exchange rate by about 12% on an average. Thus export realization decreased. This adds to the losses.

5. Interest rates have also gone up. All other expenses have also increased considerably.

6. Tea business overall has had profit even thought sufficient. Major reason for net loss is PP facility at Madukarai in Coimbatore. The Directors are actively monitoring the situation and will take a decision within a year, which will be most appropriate to either dramatically improve the overall performance of the plant to enhance the shareholder value or may consider closing the same completely.

FIXED ASSETS:

• Land

• Factory Building
• Plant and Machinery
• Office Flats and Premises
• Furniture and Fixtures
• Computers
• Office Equipments
• Vehicles - Motor Car and Motor Lorry
• Scooter / Cycle
• Generator
• Electrical Installations

WEBSITE DETAILS

PROFILE

Subject was established in 1942 by the late Shri Jayantilal H. Shah with a vision to offer the world its cup of tea, as he had then felt the beverage would be drunk very differently in the years to come. Today we are one of the pioneering tea houses in value added tea manufacture and export from India and a renowned player in the international market of private labels as well as their own brands. Their Private Labeling business has a strong presence across the globe, particularly in countries like United States of America, Australia and Europe. Their own brands are present in far eastern Russia and West Africa.

While the ownership vests with descendents of the founder, the business is managed by a team of highly efficient professionals from various locations in India, Canada and Russia. They are a diversified group with other interests too in coffee, spices, poly propylene bags and jute goods. The group’s annual revenue from beverages and commodities is over $300 million with over 15 operating locations around the world

Over the years, one of the flagship brands of our group - Jay Tea has emerged as a stamp of high trust and reliability in the international commodity market. They are a highly progressive organization, and keeping in mind the changing preferences of consumer behaviorism, Madhu Jayanti pro-actively sources the best from different origins around the world and blends a wide range of teas for their customers to revel in nature's extravaganza. Offering “Best value for Money” is the flavour of Jay Tea.

Their core expertise lies in production of value added Black Tea, Green Tea, Red Tea and White Tea in the widest range of tea bags, caddies, pouches and packets. Apart from that we also offer a wide range of flavor and specialty tea. Some of the popular sub-brands of Jay Tea are Tea India, Gold Bond, Victoria.

The company manages one modern tea packing plant in Kolkata and one at Coimbatore as well as a unit in Vladivostok, Russia. Their plants have state-of-the-art processing unit which follow international health and sanitation standard. They are the only tea house in the country to be certified with ISO 9001, HACCP, BRC (Grade A), KOSHER (U and C), and IFS (Higher Level).

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. 56.28
UK Pound	1	Rs. 88.25
Euro	1	Rs. 70.81

INFORMATION DETAILS

Information Gathered by :	--
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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		50

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.