MIRA INFORM REPORT

Report Date :

22.04.2013

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) :	31.03.2012
Date of Incorporation :	15.01.1991
Com. Reg. No.:	11-059815
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, Importer and Exporter of Writing Instruments.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 1000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track record. General financial position of the company is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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 PARTED BY

Name :	Mr. Dashrath Kondaskar
Designation :	Accounts Manager
Contact No.:	91-22-22846598
Date :	19.04.2013

LOCATIONS

Registered Office :	1213, Maker Chamber, V-221, Nariman Point, Mumbai - 400021, Maharashtra, India
Tel. No.:	91-22-22846598/ 22825687/ 22846599/ 66125000
Fax No.:	91-22-22846599/ 22840494
E-Mail :	vineshkshah@sara-india.com roc@sara-india.com iwi@bol.net.in sara_ca@vsnl.net indianwriting@hathway.com contact@iwi-co.in
Website :	www.iwi.co.in
Area :	600 sq ft
Location:	Owned
Factory :	H-50, Nashik Industrial Area, MIDC, Satpur, Nasik - 422007, Maharashtra, India
Tel. No.:	91-253-2351019/ 6627501
Fax No.:	91-253-6627500
Area:	720 sq. mtr.
Location :	Owned

DIRECTORS

As on: 28.09.2012

Name :	Mr. Shivprakash Bhartia
Designation :	Director
Address :	64, Hari Bhavan, 3^rd Floor, Peddar Road , Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	12.11.1957
Qualification :	B.Com
Date of Appointment :	03.03.2007
DIN No.:	00478640
Name :	Mr. Vishal Shivprakash Bhartia
Designation :	Director
Address :	64, Hari Bhavan, Peddar Road , Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	22.11.1980
Qualification :	MBA
Date of Appointment :	06.02.2008
DIN No.:	02145224
Name :	Ms. Vidya Omprakash Bhartia
Designation :	Director
Address :	64, Hari Bhavan, 1^st Floor, Peddar Road , Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	07.11.1952
Date of Appointment :	06.02.2008
DIN No.:	02243075
Name :	Mr. Prashant Omprakash Bhartia
Designation :	Director
Address :	Hari Bhavan, 64, Peddar Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	05.10.1974
Qualification :	MBA
Date of Appointment :	06.02.2008
DIN No.:	02260880

KEY EXECUTIVES

Name :	Mr. Dashrath Kondaskar
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
Shivprakash Bhartia	4870
O. P. Bhartia HUF	5700
S. P. Bhartia HUF	5700
Vidyadevi Bhartia	7800
Ritudevi Bhartia	7800
Prashant Bhartia	14055
Vishal Bhartia	9185
Total	55110

Equity Share Break up (Percentage of Total Equity)

As on: 28.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Importer and Exporter of Writing Instruments.
Exports :
Products :	Finished Goods
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

Customers :

Wholesalers and Retailers

No. of Employees :

250 (Approximately)

Bankers :

· Oriental Bank of Commerce, B-1, Matru Ashish, Nepean Sea Road, Mumbai – 400036, Maharashtra, India

· ICICI Bank, Nariman Point Branch, Mumbai, Maharashtra, India

Tel No.: 91-22-28307777

· ICICI Bank Limited, Landmark Race, Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
ICICI Bank Limited	31.684	23.211
ICICI Bank Limited Car Loan	0.878	1.959
SICOM Limited	0.000	4.000
Buyers Credit	49.175	0.000
Total	81.737	29.170
Note: · Secured by second exclusive charge by way of mortage 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 first exclusive charge by way of mortage and hypothecation of the entire fixed and moveable 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 unconditional and irrevocable joint and several personal guarantee of some of the Directors. The same was taken in F V. 2010-11 and F.Y.2011-12 and is repayable in 5 years and carries interest @ 12.25% to 13% · Secured by way of mortage and hypothecation of the Mercedes Benz E-250 motor Car. The same was taken in F.Y.2016-11 and is repayable in 3 years and carries rate of interest at 10% · Secured by first exclusive charge by way of mortage and hypothecation of the entire fixed and moveable assets both present and future including specifically at plot nos. H-50h 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. The same Long Term Debt [Corporate Loan) was taken in F.Y. 2007-08 and the same was repayable in 6 years [including Moratorium period of 12 months) and carries rate of interest ranging 13% to 14% · Secured by hypothecation of stock, book debts and secured by collateral security of movable and immovable fixed assets of Company.

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
E-Mail :	info@mlbca.in
Website :	www.mlbca.in
PAN.:	AAAFM1380R
Other Related Parties :	· Indian Adhesives and Writing Instruments Private Limited · Indian Pens and Stationery · Indian Steel and Allied Industries

CAPITAL STRUCTURE

As on: 31.03.2012

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

Terms/right attached to equity shares

(A) The Company has only one class of equity shares having a par value of Rs. 100/- per share. Each holder of equity shares is entitled to one vote per share.

(B) In the event of liquidation of the company, the holders of equity shares will tie entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The details of shareholders holding more than 5% shares in the company

Name of the shareholders	No of shares held	% held
Omprakash Bharoa HUF	5700	10.34
Shivprakash Bhartia HUF	5700	10 34
Vidya Bhartia	7800	14.15
Ritu Bhartia	7800	14.15
Prashant Bhartia	14055	25.50
Vishal Bhartia	9185	16.67
Shivprakash Bhartia	4870	8.84

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		5.511	5.511	5.511
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		318.679	263.821	222.597
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		324.190	269.332	228.108
LOAN FUNDS
1] Secured Loans		81.737	29.170	73.500
2] Unsecured Loans		78.614	78.110	72.578
TOTAL BORROWING		160.351	107.280	146.078
DEFERRED TAX LIABILITIES		24.988	30.337	28.044
TOTAL		509.529	406.949	402.230
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		366.458	388.130	335.941
Capital work-in-progress		0.000	0.000	3.013
INVESTMENT		31.476	49.959	60.976
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	113.140	29.842	10.542
	Sundry Debtors	210.320	155.920	118.012
	Cash & Bank Balances	18.527	14.993	32.424
	Other Current Assets	14.979	12.223	0.932
	Loans & Advances	36.648	43.114	101.785
Total Current Assets		393.614	256.092	263.695
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	163.874	140.129	206.776
	Other Current Liabilities	116.666	138.859	7.636
	Provisions	1.479	8.244	46.983
Total Current Liabilities		282.019	287.232	261.395
Net Current Assets		111.595	(31.140)	2.300
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		509.529	406.949	402.230

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	927.019	766.669	710.907
		Other Income			67.595
		TOTAL	927.019	766.669	778.502
Less	EXPENSES
		(Increase)/ Decrease in stock in Trade			(1.073)
		Purchase For Resale			0.050
		Consumption of Raw Materials			444.805
		Consumption of Stores and Spares			40.672
		Manufacturing Expenses			80.947
		Personal Expenses			14.625
		Administrative and Selling Expenses			38.132
		TOTAL			618.158
			846.977	701.475
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(Including Depreciation and Finance Expenses)	(Including Depreciation and Finance Expenses)	160.344
Less	FINANCIAL EXPENSES				19.024
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION				141.320
Less/ Add	DEPRECIATION/ AMORTISATION				45.508
	PROFIT BEFORE TAX		80.042	65.194	95.812
Less	TAX		25.185	23.970	30.870
	PROFIT AFTER TAX		54.857	41.224	64.942
Less/ Add	Earlier Year Tax		0.000	0.000	1.276
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		259.821	218.597	154.931
	BALANCE CARRIED TO THE B/S		314.678	259.821	218.597
	EARNINGS IN FOREIGN CURRENCY
		FOB value of goods exported	233.976	151.954	117.678
		Development charges	0.078	1.565	1.308
	TOTAL EARNINGS		234.054	153.519	118.986
	IMPORTS
		Raw Materials	510.442	333.301	301.166
		Stores & Spares	1.280	12.601	7.444
		Capital Goods	11.753	83.279	62.570
	TOTAL IMPORTS		523.475	429.181	371.180
	Earnings Per Share (Rs.)		995.42	748.03	1155.25

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	5.92	5.38	8.34
Net Profit Margin (PBT/Sales)	(%)	NA	NA	13.48
Return on Total Assets (PBT/Total Assets}	(%)	10.53	10.12	15.98
Return on Investment (ROI) (PBT/Networth)		0.25	0.24	0.42
Debt Equity Ratio (Total Debt /Networth)		0.49	0.39	0.64
Current Ratio (Current Asset/Current Liability)		1.39	0.89	1.01

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2012
	(Rs. In Millions)
Sundry Creditors For Goods	151.916	130.905	145.163
Sundry Creditors For Capital Goods	0.000	0.000	48.703
Sundry Creditors For Expenses	11.958	9.224	12.910
Total	163.874	140.129	206.776

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%	----------------------
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	Yes
20]	Export / Import details (if applicable)	Yes
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

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 indianwriting@hathway.com
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge) · Others
Particular of charge holder	ICICI Bank Limited, Landmark Race, Cource Circle, Alkapuri, Baroda- 390015, Gujarat, India sonia.pathania@icicibank.com
Nature of description of the instrument creating or modifying the charge	Deed of Hypothecation for Rupee Loan dated 12th February 2013 executed for Rupee Term Loan III facility of Rs. 25.000 millions to create charge on 1 Entire stocks of raw materials, semifinished and finished goods, consumable stores and spares and such other moveables including book debts, bills whether documentary or clean, outstanding monies, receivables, both present and future. 2 Machineries funded by ICICI Bank term loan. 3 Plant and machinery and other movable fixed assets
Date of instrument Creating the charge	12.02.2013
Amount secured by the charge	Rs. 25.000 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 As per sanction terms Margin As per sanction terms Extent and Operation of the charge 1. First charge by way of hypothecation of the Company’s entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other moveables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future. 2. Exclusive charge by way of hypothecation of machineries funded by ICICI Bank term loan. 3. First charge on Plant and machinery and other movable fixed assets of the company Others As per sanction terms
Short particulars of the property charged	· Company’s entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares · and such other moveables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future. · Machineries funded by ICICI Bank term loan. · Plant and machinery and other movable fixed assets of the company

UNSECURED LOAN

(Rs in Millions)

Particular	As on 31.03.2012	As on 31.03.2011
From Directors	71.155	58.838
From Shareholders and Relatives	7.459	19.272
Total	78.614	78.110

Note:

Loan from directors, shareholders and their relatives is repayable after 5 years and carries interest rate @ 9%

CONTINGENT LIABILITY

(Rs in Millions)

Particular	31.03.2012	31.03.2011
Disputed Income Tax Liability	1.525	0.000
Disputed Sales Tax Liability	3.846	0.000
Deferred Custom Duty	45.805	58.285
Total	51.176	58.285

FIXED ASSETS

· Factory Land

· Factory Building

· Office Premises

· Plant and Machinery

· Electrical Installation

· Furniture and Fixture

· Office Equipment

· Computers

· 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 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 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. 54.03
UK Pound	1	Rs. 82.43
Euro	1	Rs. 70.49

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	UDS

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	7
--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
--DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		52

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.