MIRA INFORM REPORT

Report Date :

07.12.2013

IDENTIFICATION DETAILS

Name :	JINESHWAR WRITING INSTRUMENTS LIMITED
Registered Office :	104, Kamla Bhavan, Valbhat Road, Sharma Estate, Goregaon (East), Mumbai – 400 063, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	11.03.1993
Com. Reg. No.:	11-071090
Capital Investment / Paid-up Capital :	Rs.2.400 Millions
CIN No.: [Company Identification No.]	U36991MH1993PLC071090
IEC No.:	0393051935
TAN No.: [Tax Deduction & Collection Account No.]	Mumj04334b
PAN No.: [Permanent Account No.]	AAACJ1711C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Importer of all types of Writing Instruments.
No. of Employees :	250 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 420000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There seems some continuous dip in the profits of the company. Borrowings of the company also seems to be increasing over years. However, trade relations are reported as fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for business dealings with some caution.

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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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.

LOCATIONS

Registered Office/ Factory :	104, Kamla Bhavan, Valbhat Road, Sharma Estate, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Tel. No.:	91-22-66991515 / 26852341/26852261/26852647
Fax No.:	91-22-26852603 / 26852313
E-Mail :	montex@montexpen.com montex@bom3.vsnl.net.in viaxman@vsnl.com
Website :	www.montexpen.com
Area :	20000 Sq. ft
Location :	Owned
Administrative Office / Corporate Office :	AH/2, Shakti House, Cama Industrial Estate, Walbhat Road, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Tel. No.:	91-22-61156115 / 66991515 / 26852261
Fax No.:	91-22-26852603 / 26852318 / 26859667
E-Mail :	montex@bom3.vsnl.net.in
Area :	10000 Sq. ft
Location :	Owned

DIRECTORS

As on 30.09.2013

Name :

Mr. Ramniklal Uttamchand Jain

Designation :

Director

Address :

201, Anand Laxmi, Prarthana Samaj, Vile Parle (East), Mumbai – 400 057, Maharashtra

Date of Birth/Age :

11.09.1953

Date of Appointment :

30.09.2004

DIN No.:

00863202

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U36991MH1993PLC071090	JINESHWAR WRITING INSTRUMENTS LIMITED	Director	30/09/2004	30/09/2004	-	Active	NO
2	U45200MH2007PTC167715	REL TEK Tiles India Private Limited	Director	09/02/2007	09/02/2007	-	Active	NO
3	U29120MH1994PLC077061	DEVA FABRICATORS LIMITED	Director	25/08/2007	25/08/2007	-	Active	NO

Name :

Mr. Ramanlal Raghunathmalji Jain

Designation :

Director

Address :

401, Shivali Apartment, Azad Nagar Housing Society , JVPD Scheme, Vile Parle (West), Mumbai – 4700 056, Maharashtra, India

Date of Birth/Age :

26.05.1952

Date of Appointment :

30.09.2004

DIN No.:

00863261

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1
U36991MH1993PTC071586	EASTERN BALLPEN PRIVATE LIMITED	Director	13/04/1993	13/04/1993	-	Active	NO
2	U28910MH1983PTC029515	SUNMET METALLURGICAL PRIVATE LIMITED	Director	30/09/1993	30/09/1993	-	Active	NO
3	U29120MH1994PLC077061	DEVA FABRICATORS LIMITED	Director	11/03/1994	11/03/1994	-	Active	NO
4	U28993MH1989PTC051503	BOMBAY CABINETS MANUFACTURING COMPANY PRIVATE LIMITED	Director	01/11/1994	01/11/1994	-	Active	NO
5	U36991MH1993PTC071089	VITRAG WRITING INSTRUMENTS PRIVATE LIMITED	Director	30/09/2004	30/09/2004	-	Active	NO
6	U36991MH1993PLC071090	JINESHWAR WRITING INSTRUMENTS LIMITED	Director	30/09/2004	30/09/2004	-	Active	NO

Name :

Mr. Ramniklal Uttamchand Jain

Designation :

Director

Address :

201, Anand Laxmi, Prarthana Samaj, Vile Parle (East), Mumbai – 400 057, Maharashtra

Date of Birth/Age :

11.09.1953

Date of Appointment :

30.09.2004

DIN No.:

00863202

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U36991MH1993PLC071090	JINESHWAR WRITING INSTRUMENTS LIMITED	Director	30/09/2004	30/09/2004	-	Active	NO
2	U45200MH2007PTC167715	REL TEK Tiles India Private Limited	Director	09/02/2007	09/02/2007	-	Active	NO
3	U29120MH1994PLC077061	DEVA FABRICATORS LIMITED	Director	25/08/2007	25/08/2007	-	Active	NO

Name :

Mr. Durgaram Lohar

Designation :

Director

Address :

201, Devkidham C – 51, Gokuldham, Goregaon (East), Mumbai – 400 063, Maharashtra

Date of Birth/Age :

05.03.1955

Date of Appointment :

28.09.1994

MAJOR SHAREHOLDERS

As on 30.09.2013

Names of Shareholders	No. of Shares
Ramanlal R Jain	23700
Ramnik U Jain	50
Rajiv R Jain	50
Kamla R Jain	50
Sonal Rajiv Jain	50
Asha R Jain	50
Bharti K Bafna	50
Total	24000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Importer of all types of Writing Instruments.

Products :

Product Description	ITC Code
Writing instruments	9608.00

Brand Names :

“ MONTEX “

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
Ball Pen and Refills	Nos.	206252.031

GENERAL INFORMATION

No. of Employees :

250 (Approximately)

Bankers :

· Indusind bank Limited, 425, Dadasaheb Bhadkamkar Marg, Opera House, Mumbai – 400 004, Maharashtra, India

· HDFC Bank Limited, State Bank of India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Short Term Borrowings
From Bank
Cash Credit	110.479	95.550
Total	110.479	95.550

Banking Relations :	--
Auditors :
Name :	S S Jain and Associates Chartered Accountants
Address :	504, Sharda Shopping Centre, 81 Old Nagardas Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Tel. No.:	91-22-26841212
PAN No.:	AABPJ7505J
Associates :	· Shivshakti Plastic Industries · Eastern Ballpen Private Limited · Montex Writing Instrument · Montex Pen Instrument · Sunmet Metallurgical Private Limited · Laxmi Industries · Deva Fabricators Limited · Bombay Cabinet Manufacturing Private Limited · Vitag Writing Instruments Limited · Rushabh Developers

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs. 100/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24000	Equity Shares	Rs. 100/- each	Rs.2.400 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2.400	2.400	2.400
(b) Reserves & Surplus	101.922	101.000	99.823
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	104.322	103.400	102.223
(3) Non-Current Liabilities
(a) long-term borrowings	242.369	223.869	221.369
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	5.826	4.607	4.682
(d) long-term provisions	8.894	7.615	6.802
Total Non-current Liabilities (3)	257.089	236.091	232.853
(4) Current Liabilities
(a) Short term borrowings	110.479	95.550	92.809
(b) Trade payables	78.313	39.053	51.742
(c) Other current liabilities	6.736	49.692	17.870
(d) Short-term provisions	2.603	5.368	7.250
Total Current Liabilities (4)	198.131	189.663	169.671
TOTAL	559.542	529.154	504.747
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	42.291	50.179	58.520
(ii) Intangible Assets	0.265	0.400	0.040
(iii) Capital work-in-progress	4.684	4.684	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	1.837	1.109	0.336
(d) Long-term Loan and Advances	22.990	18.410	16.144
(e) Other Non-current assets	30.011	27.346	21.434
Total Non-Current Assets	102.078	102.128	96.474
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	315.597	306.852	266.015
(c) Trade receivables	127.754	105.414	124.643
(d) Cash and cash equivalents	1.571	3.219	0.716
(e) Short-term loans and advances	1.922	3.231	6.705
(f) Other current assets	10.620	8.310	10.194
Total Current Assets	457.464	427.026	408.273
TOTAL	559.542	529.154	504.747

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2013	31.03.2012	31.03.2011
	SALES
		Income		604.052	564.024	746.072
		Other Income		7.174	6.523	1.057
		TOTAL (A)		611.226	570.547	747.129
Less	EXPENSES
		Cost of Materials Consumed		303.773	285.357	379.079
		Changes in Inventories of finished goods, work-in-progress and stock-in-trade		1.554	(9.595)	(25.358)
		Employee Benefits Expenses		32.267	28.303	32.105
		Other Expenses		251.904	239.650	322.014
		Exceptional Items		(0.206)	(0.264)	0.024
		TOTAL (B)		589.292	543.451	707.864
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			21.934	27.096	39.265
Less	FINANCIAL EXPENSES (D)			12.394	12.315	19.263
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			9.540	14.781	20.002
Less	DEPRECIATION/ AMORTISATION (F)			8.424	13.356	15.848
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)			1.116	1.425	4.154
Less	TAX (H)			0.182	0.251	1.092
	PROFIT/(LOSS) AFTER TAX (G-H) (I)			0.934	1.174	3.062
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			69.999	68.825	66.851
Less	PROVISION FOR TAXATION FOR EARLIER YEARS			0.000	0.000	0.088
	BALANCE CARRIED TO THE B/S			70.933	69.999	68.825
	EARNINGS IN FOREIGN CURRENCY
			Export Earnings	11.203	18.660	11.606
	TOTAL EARNINGS			11.203	18.660	11.606
	IMPORT
			Raw Material	55.164	97.672	110.036
			Stores and Spares	0.469	0.418	0.359
			Capital Goods	1.011	5.455	1.155
			TOTAL IMPORT	56.644	103.545	111.550
	Earnings Per Share (Rs.)			38.93	48.90	127.58

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	0.15	0.21	0.41
Net Profit Margin (PBT/Sales)	(%)	0.18	0.25	0.56
Return on Total Assets (PBT/Total Assets}	(%)	0.22	0.30	0.89
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.04
Debt Equity Ratio (Total Debt /Networth)		3.38	3.09	3.07
Current Ratio (Current Asset/Current Liability)		2.31	2.25	2.41

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	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	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 (if applicable)	No
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

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Loans from related parties	242.369	223.869
Total	242.369	223.869

YEAR ON RETROSPECT:

During the year the company has achieved a sales turnover of Rs.615.600 against a turnover of Rs.569.400 Millions in the previous financial year. The increase in sales of Rs.46.200 Millions is mainly due to change in the product mix. There has been continuous increase in the input cost of power and fuel, labour, employee cost etc. Also the excise duty has been increased from 1% to 2% having an additional burden of approximately Rs.6.176 Millions. All these factors have considerably affected margins for the current year.

Profit before tax for the year id Rs.1.116 Millions as against Rs.1.425 Millions in the previous year. The net profit after tax for the year is Rs.0.934 Million as against Rs.1.174 Millions in the previous year.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80001409	15/03/2007 *	85,000,000.00	INDUSIND BANK LIMITED	425, D.B.MARG, OPERA HOUSE, MUMBAI, Maharashtra - 400004, INDIA	-
2	80001410	09/01/2008 *	123,000,000.00	INDUSIND BANK LIMITED	425, DADASAHEB BHADKAMKAR MARG, OPERA HOUSE, MUMBAI, Maharashtra - 400004, INDIA	A40760092

*Date of modification of charges

FIXED ASSETS:

· Plant and Machinery

· Tools and Equipment’s

· Dies and Mould

· Tools and Equipment’s

· Office Equipment’s

· Computers

· Air Conditioners

· Vehicles

· Furniture and Fixtures

· Elevator

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.61.67
UK Pound	1	Rs.100.65
Euro	1	Rs.84.25

INFORMATION DETAILS

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
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.