MIRA INFORM REPORT

Report Date :

31.08.2013

IDENTIFICATION DETAILS

Name :	JAJOO RASHMI REFRACTORIES PRIVATE LIMITED
Registered Office :	28, SSI Enclave, Shopping Centre, Ambabari, Jaipur-302023, Rajasthan
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	18.04.1995
Com. Reg. No.:	17-09866
Capital Investment / Paid-up Capital :	Rs. 7.204 Millions
CIN No.: [Company Identification No.]	U27108RJ1995PTC009866
Legal Form :	Private Limited Liability Company
Line of Business :	Grinding of Quartz Minerals and Trading of Ferro Alloys.
No of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (36)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 173000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. Profitability of the company appears to be low. However trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	BB- = Long Term Bank Facilities
Rating Explanation	Having moderate risk of default regarding timely servicing of financial obligation
Date	April 2013

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. Vikas
Designation :	Accounts Department
Contact No.:	91-141-2335816
Date :	29.08.2013

LOCATIONS

Registered Office :	28, SSI Enclave, Shopping Centre, Ambabari, Jaipur-302023, Rajasthan, India
Tel. No.:	91-141-2335816/ 2234021/ 2336630/5134441
Fax No.:	91-141-2234875
E-Mail :	shaijajacs@gmail.com jajuexpet@yahoo.com info@jajoogroup.com catvijay@yahoo.com
Website :	http://www.jajoogroup.com
Factory :	F – 409, Vishwakarma Industrial Area, Road No.14, Jaipur -302013, Rajasthan, India
Tel. No.:	91-141-2330295/ 2330954/ 2333011
Corresponding Postal Address :	D – 42, Ambabari, Jaipur – 302023, Rajasthan, India

DIRECTORS

As on 31.08.2012

Name :	Mr. Ram Swaroop Jaju
Designation :	Director
Address :	D-42, Ambari, Jaipur-302012, Rajasthan, India
Date of Birth/Age :	07.11.1938
Date of Appointment :	18.04.1995
DIN No.:	00280425
Name :	Mr. Sudhir Jaju
Designation :	Director
Address :	D-42, Ambari, Jaipur-302012, Rajasthan, India
Date of Birth/Age :	15.03.1963
Date of Appointment :	12.01.1999
DIN No.:	00280451
Name :	Mr. Suraj Jaju
Designation :	Director
Address :	D-42, Ambari, Jaipur-302012, Rajasthan, India
Date of Birth/Age :	27.04.1988
Date of Appointment :	01.04.2007
DIN No.:	00280395
Name :	Ms. Nidhi Jaju
Designation :	Additional Director
Address :	D-42, Ambari, Jaipur-302012, Rajasthan, India
Date of Birth/Age :	01.03.1990
Date of Appointment :	18.08.2009
DIN No.:	02430789
Name :	Ms. Rashmi Jaju
Designation :	Director
Address :	D-42, Ambari, Jaipur-302012, Rajasthan, India
Date of Birth/Age :	11.01.1989
Date of Appointment :	21.09.2008
DIN No.:	02852605
Name :	Ms. Swati Jaju
Designation :	Director
Address :	D-42, Ambari, Jaipur-302012, Rajasthan, India
Date of Birth/Age :	01.04.1972
Date of Appointment :	21.09.2009
DIN No.:	01299443
Name :	Mr. Saurabh Jaju
Designation :	Director
Address :	D-42, Chaitanya Mahaprabhu Marg Ambari, Jaipur-302012, Rajasthan, India
Date of Birth/Age :	03.12.1991
Date of Appointment :	20.11.2010
DIN No.:	03322241
Name :	Mr. Sunil Jaju
Designation :	Director
Address :	D-42, Ambari, Jaipur-302012, Rajasthan, India
Date of Birth/Age :	21.10.1964
Date of Appointment :	20.11.2010
DIN No.:	00307952

KEY EXECUTIVES

Name :	Mr. Vikas
Designation :	Accounts Department

MAJOR SHAREHOLDERS

As on 31.08.2012

Names of Shareholders	No. of Shares
Ram Swaroop Jaju	9110
Sunil Jjau	8410
Radha Jaju	9810
Swati Jaju	107670
Sushil Jaju	8000
Banwari Lal Goyal	10000
Rohit Gupta	1290
Sudhir Jaju	50
Anil Agarwal	9000
Anil Agarwal HUF	11000
Anil Panchsia Vasupujya	2000
Mahesh Pachisia	1000
Munna Pachisia	1000
Seema Agarwal	8000
Vikas Panchisia	1000
Nidhi Jaju	75000
Suraj Jaju	80000
Rashmi Jaju	90000
Aashi Agarwal	5000
Kamna Commercial Private Limited, India	5000
Nitin Kumar Karwa	2600
Himalaya Commodeal Private Limited, India	87500
Sundram Consultants Private Limited, India	10000
Sesun Marketing Private Limited, India	6000
Total	548440

Equity Share Break up (Percentage of Total Equity)

As on 31.08.2012

Category	Percentage
Bodies corporate	19.78
Directors or relatives of Directors	80.22
Total	100.00

BUSINESS DETAILS

Line of Business :	Grinding of Quartz Minerals and Trading of Ferro Alloys
Exports :
Products :	Finished Goods
Countries :	UAE
Imports :
Products :	Raw Materials
Countries :	China
Terms :
Selling :	L/C and Credit
Purchasing :	L/C and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

50 (Approximately)

Bankers :

· State Bank of Bikaner and Jaipur, Industrial Finance Branch, 2^nd Floor, Tambi Tower, S C Road, Jaipur-302005, Rajasthan, India

Tel No.: 91-141-2362794

· Punjab National Bank, International Banking Branch, Sarojani Marg, C – Scheme, Jaipur – 302001, Rajasthan, India

Facilities :

Secured Loans	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Secured Loan	87.511	64.027
Total	87.511	64.027

Banking Relations :	--
Auditors :
Name :	Nirmal and Lalit Associates Chartered Accountant
Address :	S – 10, Divya Mall, Lal Kothi, Tonk Road, Jaipur – 302015, Rajasthan, India
PAN No.:	AASSN0704P

CAPITAL STRUCTURE

As on 31.08.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs. 6.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
548440	Equity Shares	Rs.10/- each	Rs. 5.484 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
600000	Equity Shares	Rs.10/- each	Rs. 6.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
548440	Equity Shares	Rs.10/- each	Rs. 5.484 Millions
	Share application money		Rs. 1.720 Millions
	Total		Rs. 7.204 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	7.204	9.694
(b) Reserves & Surplus	36.126	14.995
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	43.330	24.689
(3) Non-Current Liabilities
(a) long-term borrowings	87.511	64.027
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	87.511	64.027
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	5.334	2.448
(c) Other current liabilities	0.552	0.098
(d) Short-term provisions	2.772	1.825
Total Current Liabilities (4)	8.658	4.371
TOTAL	139.499	93.087
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2.065	1.620
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	9.104	8.470
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	(0.074)	(0.096)
(e) Other Non-current assets	0.224	0.206
Total Non-Current Assets	11.319	10.200
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	5.233	6.591
(c) Trade receivables	47.040	28.259
(d) Cash and cash equivalents	3.396	5.663
(e) Short-term loans and advances	72.511	42.374
(f) Other current assets	0.000	0.000
Total Current Assets	128.180	82.887
TOTAL	139.499	93.087

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		5.094
2] Share Application Money		1.500
3] Reserves & Surplus		13.245
4] (Accumulated Losses)		0.000
NETWORTH		19.839
LOAN FUNDS
1] Secured Loans		54.275
2] Unsecured Loans		1.000
TOTAL BORROWING		55.275
DEFERRED TAX LIABILITIES		0.080
TOTAL		75.194
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.134
Capital work-in-progress		0.000
INVESTMENT		0.822
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.210
	Sundry Debtors	64.241
	Cash & Bank Balances	5.321
	Other Current Assets	0.000
	Loans & Advances	7.516
Total Current Assets		82.288
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.733
	Other Current Liabilities	0.273
	Provisions	1.044
Total Current Liabilities		9.050
Net Current Assets		73.238
MISCELLANEOUS EXPENSES		0.000
TOTAL		75.194

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	225.330	239.670	242.026
		Other Income	2.239	3.696	3.467
		TOTAL (A)	227.569	243.366	245.493
Less	EXPENSES
		Manufacturing Expenses		12.589	15.589
		Administrative Expenses		11.299	6.580
		Selling Expenses		3.124	6.426
		Other Expenses		0.000	0.000
		Purchase		215.085	216.786
		(Increase) / Decrease in Stock		(1.382)	(3.162)
		TOTAL (B)	224.624	240.715	242.219
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(Including Depreciation)	2.651	3.274
Less/ Add	DEPRECIATION/ AMORTISATION (F)			0.104	0.104
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		2.945	2.547	3.170
Less	TAX (H)		0.925	0.797	0.988
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		2.020	1.750	2.182
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4.423	2.673	0.491
	BALANCE CARRIED TO THE B/S		6.443	4.423	2.673
	Earnings Per Share (Rs.)		3.89	3.44	4.28

Particulars		31.03.2013
Sales Turnover (Approximately)		178.200
	(Due to market fluctuation)

The above information has been parted by Mr. Vikas (Accounts Department).

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.89	0.72	0.89
Net Profit Margin (PBT/Sales)	(%)	1.31	1.06	1.31
Return on Total Assets (PBT/Total Assets}	(%)	2.29	3.07	3.80
Return on Investment (ROI) (PBT/Networth)		0.07	0.10	0.16
Debt Equity Ratio (Total Debt /Networth)		2.02	2.59	2.79
Current Ratio (Current Asset/Current Liability)		14.80	18.96	9.09

LOCAL AGENCY FURTHER INFORMATION

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	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%	Yes
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	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	Yes

INDEX OF CHARGE:

Sr .No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10254094	14/07/2012 *	95,000,000.00	Punab National Bank	International Banking Branch, Sarojani Marg C- Scheme, Jaipur, Rajasthan - 302001, INDIA	B44386662
2	10170061	25/10/2011 *	67,500,000.00	STATE BANK OF BIKANER AND JAIPUR	INDUSTRIAL FINANCE BRANCH, 2ND FLOOR, TAMBI TOWER, S C ROAD, JAIPUR, Rajasthan - 302005, INDIA	B25301193
3	10084093	25/08/2010 *	84,000,000.00	Punjab National Bank	International Banking Branch, Sarojni Marg, C -Scheme, Jaipur, Rajasthan - 302001, INDIA	A96564125

FIXED ASSETS:

· Computer

· Electric Motor

· Factory Building

· Furniture and Fixture

· Invertors

· Laboratory

· Machinery

· Scooter

· Pollution Equipments

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. 66.57
UK Pound	1	Rs. 103.34
Euro	1	Rs. 88.16

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION		0
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

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.