MIRA INFORM REPORT

Report Date :

15.10.2013

IDENTIFICATION DETAILS

Name :	JESONS INDUSTRIES LIMITED
Registered Office :	904, Peninsula Tower No. 1, Ganpat Rao Kadam Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	12.10.1999
Com. Reg. No.:	11-122193
Capital Investment / Paid-up Capital :	Rs.89.352 Millions
CIN No.: [Company Identification No.]	U24295MH1999PLC122193
TAN No.: [Tax Deduction & Collection Account No.]	MUMJ06269E
PAN No.: [Permanent Account No.]	AAACJ7659P
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Synthetic Adhesives, Vinyl Acetate and Acrylic Emulsions.
No. of Employees :	650 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 1660000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears slight dip in the profitability during 2012. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. 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.

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 :	Ms. Sejal
Designation :	Admin
Contact No.:	91-22-66515253

LOCATIONS

Registered Office :	904, Peninsula Tower No. 1, Ganpat Rao Kadam Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra
Tel. No.:	91-22-66515253 / 66515226
Fax No.:	91-22-66515252
E-Mail :	info@jesons.net sales.exports@jesons.net
Website :	http://www.jesons.net
Area:	5000 sq. ft.
Location :	Owned
Factory :	Survey No. 377/1/7, Zari Causeway Road, Behind Store Quarry, Kachigam, Daman (Union Territory)

DIRECTORS

As on 29.09.2012

Name :	Mr. Dhiresh Shashikant Gosalia
Designation :	Managing Director
Address :	131 Spenta Tower, 13^th Floor, 55-57 Forjet Street Gowalia Tank, Mumbai – 400 036, Maharashtra, India
Date of Birth/Age :	06.01.1962
Qualification :	B.SC ,Diploma In Textile Chemistry, Business Management
Date of Appointment :	12.10.1999
DIN No.:	00217158
Name :	Mr. Madhu Ranchhoddas Mehta
Designation :	Director
Address :	E-3, 701/702, A Wing, New Highway Park, Kandivali (East), Mumbai – 400 101, Maharashtra, India
Date of Birth/Age :	02.06.1941
Qualification :	Metriculation
Date of Appointment :	01.04.2008
DIN No.:	02250878

KEY EXECUTIVES

Name :	Ms. Sejal
Designation :	Admin

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Dhiresh Gosalia	708424
Madhavi D Gosalia	70100
Usha S Gosalia	64596
Hemal M Kampani	100
Kiran V Daftary	100
Rajesh D Mody	100
Raveena D Gosalia	25000
Madhusudan Mehta	100
Jhelum D Gosalia	25000
Total	893520

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of synthetic adhesives, Vinyl Acetate and Acrylic Emulsions.

Products :

Product Description	ITC Code
Adhesives and Binders	3906-90
Pigments	3215-90
Rubber	3506-00

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

650 (Approximately)

Bankers :

• Bank of India, SSI Branch, Andheri (East), Mumbai – 400069, Maharashtra, India
• Central Bank of India, Main Office, M.G Road, Fort, Mumbai – 400023, Maharashtra, India
• HSBC Bank Limited
• HDFC Bank Limited
• Standard Chartered Bank
• Citi Bank N.A
• Barclays Bank Plc, 601/603, Ceejay House, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Rupee Term Loans	107.152	133.439
Loans Repayable On Demand	385.320	267.884
Total	492.472	401.323

Banking Relations :	--
Auditors :
Name :	R. Trivedi and Associates Chartered Accountants
Address :	119, Ground Floor, G-Block, Ranjit Studio, Dadasaheb Palke Road, Dadar, Mumbai-400014, Maharashtra, India
Tel. No.:	91-22-24140957
PAN No.:	AADPT8670Q
Subsidiaries Company :	Jesons Industries Nepal (Private) Limited

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.100/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
893520	Equity Shares	Rs.100/- each	Rs.89.352 millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	89.352	89.352
(b) Reserves & Surplus	327.427	254.677
(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)	416.779	344.029
(3) Non-Current Liabilities
(a) long-term borrowings	107.152	133.439
(b) Deferred tax liabilities (Net)	5.846	5.821
(c) Other long term liabilities	2.443	2.443
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	115.441	141.703
(4) Current Liabilities
(a) Short term borrowings	385.567	270.167
(b) Trade payables	650.354	530.304
(c) Other current liabilities	37.029	33.797
(d) Short-term provisions	29.864	21.299
Total Current Liabilities (4)	1102.814	855.567
TOTAL	1635.034	1341.299
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	208.980	215.581
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	19.543	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1.803	1.803
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	2.550	1.479
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	232.876	218.863
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	312.160	223.547
(c) Trade receivables	640.906	656.468
(d) Cash and cash equivalents	109.565	36.867
(e) Short-term loans and advances	339.361	205.180
(f) Other current assets	0.166	0.374
Total Current Assets	1402.158	1122.436
TOTAL	1635.034	1341.299

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		89.352
2] Share Application Money		0.000
3] Reserves & Surplus		154.052
4] (Accumulated Losses)		0.000
NETWORTH		243.404
LOAN FUNDS
1] Secured Loans		387.391
2] Unsecured Loans		4.899
TOTAL BORROWING		392.290
DEFERRED TAX LIABILITIES		4.389
TOTAL		640.083
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		202.295
Capital work-in-progress		14.853
INVESTMENT		20.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	165.889
	Sundry Debtors	430.279
	Cash & Bank Balances	50.647
	Other Current Assets	0.000
	Loans & Advances	204.102
Total Current Assets		850.917
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	388.335
	Other Current Liabilities	32.629
	Provisions	36.759
Total Current Liabilities		457.723
Net Current Assets		393.194
MISCELLANEOUS EXPENSES		9.741
TOTAL		640.083

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	4107.874	4020.829	2216.090
		Other Income	11.941	13.731	8.155
		TOTAL (A)	4119.815	4034.560	2224.245
Less	EXPENSES
		Cost of material consumed	3443.722	3279.918
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(34.970)	(12.676)
		Employee benefit expense	64.435	78.905
		Other expenses	459.828	461.994
		Extraordinary items		18.197
		TOTAL (B)	3933.015	3826.338	2063.523
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		186.800	208.222	160.722
Less	FINANCIAL EXPENSES (D)		63.322	38.272	45.801
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		123.478	169.950	114.921
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.927	25.873	25.725
	PROFIT BEFORE TAX (E-F) (G)		96.551	144.077	89.196
Less	TAX (H)		23.801	43.452	10.217
	PROFIT AFTER TAX (G-H) (I)		72.750	100.625	78.979
	Earnings Per Share (Rs.)		81.00	113.00	81.00

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.77	2.49	3.55
Net Profit Margin (PBT/Sales)	(%)	2.35	3.58	4.02
Return on Total Assets (PBT/Total Assets}	(%)	5.98	10.76	8.47
Return on Investment (ROI) (PBT/Networth)		0.23	0.42	0.37
Debt Equity Ratio (Total Debt/Networth)		1.18	1.17	1.61
Current Ratio (Current Asset/Current Liability)		1.27	1.31	1.86

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	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)	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 LOAN:

Particulars	As on 31.03.2012 (Rs. In Millions)	As on 31.03.2011 (Rs. In Millions)
Loans and Advances from Directors	0.247	2.283
Total	0.247	2.283

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10243444	20/07/2011 *	1,102,000,000.00	CENTRAL BANK OF INDIA	MUMBAI MAIN OFFICE, M.G. ROAD FORT, MUMBAI, MAHARASHTRA - 400001, INDIA	B17917527
2	10187219	06/04/2012 *	1,759,600,000.00	CENTRAL BANK OF INDIA	M. G. ROAD, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	B40439036
3	90236138	30/10/2009 *	153,000,000.00	Central bank Of India	M. G. ROAD, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA	A73652240

* Date of charge modification

REVIEW OF OPERATIONS:

The business environment was extremely challenging and the Top line growth was low at 2.16% due to adverse economic conditions. The Directors are pleased to inform that in spite of difficult times, the Company, based on its intrinsic strength, has broadly maintained its performance, and gross sales from operations remained above threshold mark of Rs. 4000.000 Millions during the year.

The profitability was lower as compared to previous year, due to volatility in the prices of Raw Materials, inflationary pressure on costs and exchange Loss. The EBDIT margin is reduced from 5.61% to 4.53%. EBT is also marginally lower from 3.57% to 2.34% as compared to previous year. The Company has achieved Export Sales (FOB) to the tune of Rs. 537.300 millions. Net profit after accounting for exceptional items and tax is Rs. 72.700 millions.

The sudden depreciation of INR v/s USD, since the level of Rs. 44.00 in August 2011 to Rs. 54.50 in December 2011, which was not anticipated, had largely affected the margins of the Company. The exchange loss were mitigated through following Foreign Exchange Risk Management.

The Company continue to remain focused to sustain its market position in the business segments in which it operates.

FUTURE OUTLOOK

India is one of the fastest growing economy in the world. This auger well for the demand of Jesons Products. There is huge construction activity which means increased demand for paint emulsions manufactured by Jesons.

Jesons has set up a state of the art Technology Center to develop new value added products. This will be a major boost for the growth of the Company.

The Company also plans to set up a new manufacturing facility for addressing the additional capacity requirements. The selection criteria would be based proximity to the Port for import of Raw Materials and nearness to the Customers for Just-In-Time supplies.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Furniture and Fixtures

· Vehicles

· Office Equipment

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.61.30
UK Pound	1	Rs.97.99
Euro	1	Rs.83.15

INFORMATION DETAILS

Information Gathered by :	PLV
Report Prepared by :	VRN

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	4
--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	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		44

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	--

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.