MIRA INFORM REPORT

Report Date :

11.10.2013

IDENTIFICATION DETAILS

Name :	JAYKRISHNA MAGNETICS PRIVATE LIMITED
Registered Office :	Plot No.330/B, GIDC Industrial Estate, Opp. New Water Tank, Odhav, Ahemedabad – 382 415, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.10.1987
Com. Reg. No.:	04-010103
Capital Investment / Paid-up Capital :	Rs.0.420 Million
CIN No.: [Company Identification No.]	U24231GJ1987PTC010103
TAN No.: [Tax Deduction & Collection Account No.]	AHMJ00403E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter of Magnetic Equipments.
No. of Employees :	50 (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 28000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. However, trade relations are reported as fair. Business is active. Payment terms are reported to be usually correct and as per commitments. The company can be considered normal business dealings at usual trade terms and condition.

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.

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 (GENERAL DETAILS)

Name :	Mr. Jaykrishna Maniar
Designation :	Director
Contact No.:	91-9824048706
Date :	07.10.2013

LOCATIONS

Registered Office/ Factory :	Plot No.330/B, GIDC Industrial Estate, Opp. New Water Tank, Odhav, Ahemedabad – 382 415, Gujarat, India
Tel. No.:	91-79-22970452/ 65447671/ 22870072
Mobile No.:	91-9824048706 (Mr. Jaykrishna Maniar)
Fax No.:	91-79-22870070
E-Mail :	irpatel@gmail.com info@jkmagnetics.com
Website :	www.jaykrishnamagnetics.com
Location :	Owned
Dubai Office :	InspirOn Electromechanical LLC F-04,Building no.14,Suq Al Kabeer, Behind Rangoli Restaurant, Beside London Fashion, Meena Bazaar, Burdubai, Dubai, UAE. P.O Box : 46645
Tel. No.:	+97143518681
Mobile No.:	+971505157915
Fax No.:	+97143518682
E-Mail :	sandip@inspironuae.com

DIRECTORS

AS ON 20.09.2012

Name :	Mr. Jaykrishna Manharlal Maniar
Designation :	Director
Address :	A-Krishna Nagar, Odhav, Ahemedabad – 382 415, Gujarat, India
Date of Appointment :	01.11.1995
DIN No.:	00100975
Name :	Mrs. Tejal Jaykrishna Maniar
Designation :	Director
Address :	A-Krishna Nagar, Odhav, Ahemedabad – 382 415, Gujarat, India
Date of Appointment :	01.04.1999
DIN No.:	00096449

MAJOR SHAREHOLDERS

AS ON 20.09.2012

Names of Shareholders	No. of Shares
Manharlal M. Maniar	1310
Neelam M. Maniar	4510
Rajesh Kumar H. Maniar	350
Jagdish Kumar H. Maniar	450
Jaykrishna M. Maniar	19700
Dipal M. Maniar	1700
Gopi M. Maniar	1000
Tejal J. Maniar	10000
Amrish Kumar Bosamia	3000
Total	42020

Equity Share Break up (Percentage of Total Equity)

AS ON 20.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Importer and Exporter of Magnetic Equipments.
Products :	· Drum Type Magnetic Separator · High Intensity Roller Type Magnetic Separator · High Intensity Rare Earth Magnetic Equipments · Over Band Magnetic Separator · Inline Drum Type Magnetic Separator · Magnetic Coolant Separator · Permanent Magnetic Drum Pulley · Suspension Magnet · Drawer Magnet · Channel Magnet · Plate Magnet · Hopper Magnet · Funnel Magnet · Trap Magnet · Hand Magnet · Hump Magnet · Magnetic Floor Sweeper · Grill Magnet · Vibrating Screening Machine · Vibrating Motor · Circular Gyrator Vibro Screen · Electro Magnetic Vibratory Feeder · Eddy Current Separator · Four Roller Separator · Single Roller Separator · Magnetic Rod Equipments · Double Roller Magnetic Separator · Vibro Separator · Trolly Mounted Suspension Magnet · Wet Drum Type Magnetic Separator
Exports :
Products :	Finished Goods
Countries :	· UK · USA
Imports :
Products :	Raw Materials
Countries :	China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· A Made In India Spring Company

· Arti Printing Press

· Ashok Traders

· Bhavin Corporation

· D.M.Thakker and Company

· Gaylord Enterprises

· Hardik Industries

· Honest Printers

· Jagruti Rubber Enterprises Private Limited

· J.K. Industries

Customers :

End Users

· Ajay Poly Private Limited

· Alliance Fibers Limited

· Ambica Crushtech Private Limited

· Ashwin Autocast Private Limited

· Avanti Thai Aqua Feeds Private Limited

· Axtel Industries Limited

· Bisazza India Private Limited

· Bts Roller Flour Mills Private Limited

· Deverson Industries Private Limited

· Eros Minerals Private Limited

No. of Employees :

50 (Approximately)

Bankers :

Not Divulged

Facilities :

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Secured Loans	0.000	0.145
Total	0.000	0.145

Banking Relations :	--
Auditors :
Name :	D. M. Thakkar and Company Chartered Accountants
Address :	G-11, Hemkoot, Behind L.I.C. Building, Opposite Capital Commerce Centre, Ashram Road, Ahemedabad – 380 009, Gujarat, India
PAN No.:	AAEPT8068M

CAPITAL STRUCTURE

AS ON 20.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs. 10/- each	Rs.0.500 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
42020	Equity Shares	Rs. 10/- each	Rs.0.420 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.420	0.420
(b) Reserves & Surplus	6.760	5.206
(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)	7.180	5.626
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(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)	0.000	0.000
(4) Current Liabilities
(a) Short term borrowings	0.000	0.145
(b) Trade payables	3.717	2.102
(c) Other current liabilities	2.240	2.248
(d) Short-term provisions	0.065	0.066
Total Current Liabilities (4)	6.022	4.561
TOTAL	13.202	10.187
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2.850	3.067
(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	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	2.850	3.067
(2) Current assets
(a) Current investments	0.336	0.000
(b) Inventories	4.784	3.786
(c) Trade receivables	0.000	0.000
(d) Cash and cash equivalents	3.751	2.017
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	1.481	1.317
Total Current Assets	10.352	7.120
TOTAL	13.202	10.187

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		0.420
2] Share Application Money		0.000
3] Reserves & Surplus		2.475
4] (Accumulated Losses)		0.000
NETWORTH		2.895
LOAN FUNDS
1] Secured Loans		0.489
2] Unsecured Loans		2.558
TOTAL BORROWING		3.047
DEFERRED TAX LIABILITIES		0.000
TOTAL		5.942
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.284
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000
	Sundry Debtors	0.907
	Cash & Bank Balances	2.780
	Other Current Assets	2.098
	Loans & Advances	0.000
Total Current Assets		5.785
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.111
	Other Current Liabilities	0.000
	Provisions	0.016
Total Current Liabilities		3.127
Net Current Assets		2.658
MISCELLANEOUS EXPENSES		0.000
TOTAL		5.942

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	38.750	44.811	23.894
		Other Income	NA	NA	NA
		TOTAL	NA	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	NA	NA
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		35.821	41.567	22.425
Less	DEPRECIATION/ AMORTISATION		0.328	0.362	0.439
	PROFIT/(LOSS) BEFORE TAX		35.493	41.205	21.986
Less	TAX		33.938	38.475	21.318
	PROFIT/(LOSS) AFTER TAX		1.555	2.730	0.668
	Earnings Per Share (Rs.)		37.01	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.01	6.09	2.80
Return on Total Assets (PBT/Total Assets}	(%)	271.33	408.04	247.27
Return on Investment (ROI) (PBT/Networth)		4.99	7.39	7.75
Debt Equity Ratio (Total Debt /Networth)		0.00	0.03	1.05
Current Ratio (Current Asset/Current Liability)		1.72	1.56	1.85

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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	No
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	No
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

NOTE: Registered office of the company has been shifted from A/34, Krishna Nagar, Odhav, Ahemedabad – 382 415, Gujarat, India to the present address w.e.f.01.10.2005

NOTE: No Charges Exist for Company.

FINANCIAL RESULTS AND OPERATION:

During the year, Subject has made sales of Rs. 38.750 Millions of magnetic equipments as against previous year’s sales of Rs. 44.811 Millions. Subject is performing reasonably good inspite of stiff competition and the management has made special efforts to increase the sales for the year under consideration. Subject was provided depreciation of Rs. 0.328 Millions. Subject made net profit of Rs.1.555 Millions. Subject is trying its best to increase the market for magnetic equipments manufactured by subject, by adopting different strategy. The products of subject are well received in the market. Subject is trying to import magnet and to reduce the cost of production.

FIXED ASSETS:

· Building

· Computer

· Machinery

· Land

· Motor Vehicle

· Office Equipment

· Scooter

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.62.14
UK Pound	1	Rs.99.02
Euro	1	Rs.83.87

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	5
--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	NO
--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.