MIRA INFORM REPORT

Report Date :

09.12.2013

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) :	31.03.2013
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 :	140 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 380000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Profit and sales turnover of the company appears to be fair. Trade relations are reported to be fair. Business is active. Payment terms are usually correct. The company can be considered for business dealing 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

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.

INFORMATION PARTED BY

Name :	Mr. Lokesh Bansal
Designation :	Director
Contact No.:	91-9814222999
Date :	19.11.2013

LOCATIONS

Registered Office :	B-XXX, 2185 203/1, Phase VII, Focal Point, Ludhiana - 141 010, Punjab, India
Tel. No.:	91-161-5053953 / 5026901 / 5026909/3267939
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 :	www.mukandindustries.com
Location :	Owned

DIRECTORS

As on 30.09.2013

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/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	U00000PB2001PTC024353	MUKAND INDUSTRIES PRIVATE LIMITED	Director	23/04/2001	23/04/2001	-	Active	NO
2	U17115PB1997PLC019557	EASTMAN INTERNATIONAL LIMITED	Director	01/06/2007	01/06/2007	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/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	U17110PB2004PLC026711	EASTMAN KOHINOOR COTTEX LIMITED	Director	12/01/2004	12/01/2004	30/09/2010	Active	NO
2	U00000PB2001PTC024353	MUKAND INDUSTRIES PRIVATE LIMITED	Director	01/05/2007	01/05/2007	-	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/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	U17115PB1997PLC019557	EASTMAN INTERNATIONAL LIMITED	Director	10/03/1997	10/03/1997	-	Active	NO
2	U00000PB2001PTC024353	MUKAND INDUSTRIES PRIVATE LIMITED	Director	30/06/2001	30/06/2001	-	Active	NO

Name :

Mr. Joginder Pal

Designation :

Director

Address :

9, Tibba Vill, Mundan Khurd, Ludhiana, Punjab, India

Date of Birth/Age :

25.11.1968

Date of Appointment :

15.06.2005

DIN No.:

01571270

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	U00000PB2001PTC024353	MUKAND INDUSTRIES PRIVATE LIMITED	Director	15/06/2005	15/06/2005	-	Active	NO
2	U17115PB1997PLC019557	EASTMAN INTERNATIONAL LIMITED	Director	01/06/2007	01/06/2007	24/04/2010	Active	NO

Name :

Anjana Thapar

Designation :

Director

Address :

House No.: 2/E, Moti Nagar, Ludhiana, Punjab, India

Date of Birth/Age :

17.10.1974

Date of Appointment :

12.10.2011

DIN No.:

05113484

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2013

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

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Bodies corporate	5.31
Directors or relatives of Directors	62.74
Other top fifty shareholders	31.95
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

GENERAL INFORMATION

Supplier :

Jindal

· Bharat Steels

· Naman Impex

· S.J Plywood and Laminates

Customers :

Wholesalers and Retailers

· Tata Tea Limited

· Ballarpur Industries Limited

· Trident Group

· Khanna Paper Mills Limited

· Century Pulp and Paper

· West Coast Paper Mills Limited

· Bindal Papers Limited

· Saber Papers Limited

· Amco Industries

· Mrs. Bector's Food Specialties Limited (Biscuit)

· Mrs. Bector's Food Specialties Limited (Sauce)

· Darshan Foods

· Shane Punjab Tea India Private Limited

· Maxwell Inc.

· Bonn Food Industries

· Supreme Agro Foods Limited

· BBF Industries Limited

· TCPL Packaging Limited (Silvassa, Haridwar)

· ITC Limited (Haridwar) (Silvassa)

· International Print-o-Pac Limited

· Borkar Packaging Private Limited

· Parkson Printers

· Amrit Banaspati Company Limited

· P. Solvex Limited.

· Crown Biscuit

· Golden Agro (BBY)

· National Soap

· Poddar Type

· Grl international

· Hindustan Type

· IPP Noida

· Rollatainers

No. of Employees :

140 (Approximately)

Bankers :

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

· Punjab National Bank

· ICICI Bank Limited

· HDFC Bank Limited

· HSBC

Facilities :

Secured Loan	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Term Loan From Bank
Term Loan A/C No.: 30313943607 A/C	0.000	3.397
Term Loan A/C No.: 30357021919 A/C	7.328	13.118
Term Loan A/C No.: 30960255613 A/C	0.688	1.084
HDFC Bank Limited (Forklift Loan)	0.000	0.341
ICICI Bank Limited (Car Loan)	0.128	0.330
Kotak Mahindra Prime Limited (Car Loan)	0.271	0.000
Short-term borrowings
SBI C/C Hypothecation A/C No.: 10318976284	78.069	47.403
SBI C/C A/C No.: 30351624641	50.558	50.676
HDFC Bank Limited, (Business Loan)	0.000	0.302
Kotak Mahindra Bank Limited (Secured by way of first mortage/charge of immovable property and hypothecation of stocks, book debts and personal guarantee of directors)	0.695	0.000
Total	137.737	116.651

Banking Relations :	--
Financial Institute :	SBI Global Factors Limited, 6th Floor, Metropolitan Building, Bandra-Kurla, Complex, Bandra(East), Mumbai - 400051, Maharashtra, India
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 N Income-tax PAN of auditor or auditor's firm :	AAAFG6668G
Associates:	· Eastman international · Eastman international Limited · Eastman Fab Limited · Ramesh Steels

CAPITAL STRUCTURE

As on 31.03.2013

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]

FINANCIAL DETAILS ATTACHED

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%	--
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 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

PERFORMANCE REVIEW

During the year the company achieved a turnover including other incomes of Rs. 602.494 Millions as compared to Rs. 639.993 Millions in the previous year. After meeting out expenditure and providing for tax the company earned a profit of Rs. 1.755 Millions during the year as compared to a profit of Rs. 1.701 Millions in the previous year.

UNSECURED LOAN

PARTICULARS	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
Long-term Borrowings
Loans and advance from related parties From director
Lokesh Bansal	2.750	2.750
Rakesh Gupta	0.000	0.500
From other
Prem Narain Bansal	3.500	2.500
Lokesh Bansal and Sons (HUF)	9.550	0.000
Munish Gupta Loan A/c	12.890	0.000
Priya Bansal	2.300	0.000
Rakesh Gupta	0.000	13.090
Vikash Gupta	7.350	7.350
Short-term borrowings
SBI Global Factor Limited L/C	4.117	2.158
HDFC Factors Limited L/C	30.725	31.113
TATA Capital Financial Services Limited	0.803	0.000
Bajaj Finance Limited (Secured by way of hypothecation of boo debts against the factoring facility has been availed)	1.071	0.000
Total	75.056	59.461

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10237018	14/07/2010	37,500,000.00	SBI GLOBAL FACTORS LIMITED	6TH FLOOR, METROPOLITAN BUILDING, BANDRA-KURLA, C OMPLEX, BANDRA(EAST), MUMBAI, MAHARASHTRA - 400051, INDIA	A93820884
2	10092323	14/05/2012 *	203,100,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, LUDHIANA, PUNJAB - 141003, INDIA	B40989329
3	90174049	23/04/2003 *	7,000,000.00	STATE BANK OF INDIA	OVWERSEAS BRANCH; DHOLEWAL CHOWK, LUDHIANA, PUNJAB, INDIA	-
4	90175280	05/03/2005 *	7,000,000.00	STATE BANK OF INDIA	OVWERSEAS BRANCH; DHOLEWAL CHOWK, LUDHIANA, PUNJAB, INDIA	-
5	90311709	05/03/2005 *	7,000,000.00	STATE BANK OF INDIA	OVERSEAS BRANCH, DHOLWAL CHOWK, LUDHIANA, PUNJAB, INDIA	-
6	90176038	23/02/2002	350,000.00	CODURION BANK LIMITED	15; FEROZ GANDHI MARKET, DHOLWAL CHOWK, LUDHIANA, PUNJAB, INDIA	-

* Date of charge modification

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2013
Letters of Credit	30.725

FIXED ASSETS

Tangible Assets

· Furniture

· Electronic Fitting

· Fans

· Plant and Machinery

· Mobile Phone

· Micro Meter

· Air Conditioner

· Electronic Weighing Machine

· Fire Extinguisher

· Plant and Machinery (Sitting Machine)

· Tools and Dies

· UPS System

· Office Equipment

· Crain and Chain Kupi

· Waer Punifie

· Mosclip Fly Killer

· Computer and Printer

· Vehicle

Intangible Assets

· Computer Software

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

Information Gathered by :	JML
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	4
--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		45

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.