MIRA INFORM REPORT

Report Date :

18.10.2013

IDENTIFICATION DETAILS

Name :	HARJIT PAPER AND MACHINERY PRIVATE LIMITED
Registered Office :	17, Sudharshan Nagar, 100 Feet Road, East Mohan Nagar, Amritsar – 143 001, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.11.1995
Com. Reg. No.:	16-017286
Capital Investment / Paid-up Capital :	Rs.2.499 Millions
CIN No.: [Company Identification No.]	U29293PB1995PTC017286
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Industrial Paper Machinery, Pulp and Paper Mill Machinery, Corrugation Machineries and Drum Plants etc.
No. of Employees :	70 (Approximately) [In Factory and In Branches]

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 31000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a 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 considered for business dealings with some cautions.

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

Name :	Mr. Satinder Singh
Designation :	General Manager
Contact No.:	91-9876173102
Date :	28.09.2013

LOCATIONS

Registered Office :	17, Sudharshan Nagar, 100 Feet Road, East Mohan Nagar, Amritsar – 143001, Punjab, India
Tel. No.:	91-183-5097033/ 2583858/ 6545838
Mobile No.:	91-9888998000 (Mr. Jotinder Singh) 91-9876173102 (Mr. Satinder Singh) 91-9646911111 (Mr. Harjit Singh)
Fax No.:	91-183-5008276/ 5008275
E-Mail :	harjit_inds@yahoo.com mail@harjitpapermachinery.com agoyal4u@yahoo.com
Website :	www.harjitpapermachines.com
Location :	Owned
Factory :	C80/81 New Focal Point, Amritsar – 143 001, Punjab, India
Area :	2000 Sq. ft.
Location :	Owned
Overseas Office:	UK Varun Sharma, Marketing Manager UK Address: 12 Francis Road, Hounslow, London. Tel No: +44-02085775684 Mobile No: +44-07789660622 Iran Ali Abbasi Marketing Manager (Iran) Address: Khyaban Khayam, Nabshe Khyabane Passaje Saraaye Nezami, 2nd Floor, Pelake 8. Tehran – Iran. Tel No: +98-02155577931 Fax No: +98-02155577932 Mobile No: +98-0921933849

DIRECTORS

(AS ON 29.09.2012)

Name :	Mr. Harjit Jaswant Singh
Designation :	Director
Address :	H.No.4064/32, Bazar No.4, Kot Baba Deep Singh, Amritsar – 143001, Punjab, India
Date of Birth/Age :	48 Years
Qualification :	Graduate
Date of Appointment :	23.04.2002
DIN No.:	01784976
Name :	Mrs. Harjit Kaur
Designation :	Director
Address :	H.No.4064/32, Bazar No.4, Kot Baba Deep Singh, Amritsar – 143 001, Punjab, India
Date of Birth/Age :	46 Years
Qualification :	Graduate
Date of Appointment :	20.11.1995
DIN No.:	01784981

KEY EXECUTIVES

Name :	Mr. Satinder Singh
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2012)

Names of Shareholders	No. of Shares
Harjit Kaur w/o S. Harjit Singh	55500
Harjit Singh s/o Jaswant Singh	59000
Shamsher Singh s/o Kashmir Singh	8500
Harjinder Singh s/o Shamsher Singh	7500
Narinder Singh s/o Amarjit Singh	12700
Manjit Kaur D/o S. Amarjit Singh	10500
Paramjit Kaur w/o S. Dharminder Singh	28000
Jasbir Singh s/o S, Narain Singh	11200
Biant Singh s/o Santokh Singh	2400
Balak Sharma s/o Pt. Ram Chand Sharma	1000
Deepika Sharma D/o Balak Ram Sharma	1000
Charanjit Kaur w/o S. Narinder Singh	10000
Dupinder Kaur W/o Lakhwinder Singh	4500
Parveen Sharma w/o Balak Ram	1000
Surinder Kaur w/o S. Amarjit Singh	20000
Surinder Arora w/o S. Santokh Singh	5000
Dharminder Singh S/o Sarabjeet Singh	5000
Satinder Bir Singh S/o S. Rajinder Singh	600
Sarabjit Singh s/o S. Kawaljit Singh	1500
Amarjit Singh s/o S. Mehar Singh	5000
Total	249900

(AS ON 31.10.2012)

Names of Allottees	No. of Shares Allotted
Harjit Kaur w/o S. Harjit Singh	100000
Harjit Singh s/o Jaswant Singh	100000
Simer Kaur w/o Jotinder Singh	110000
Total	310000

(AS ON 30.09.2012)

Equity Shares Break – up

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Industrial Paper Machinery, Pulp and Paper Mill Machinery, Corrugation Machineries and Drum Plants etc.
Exports :
Products :	· Industrial Paper Machinery · Pulp and Paper Mill Machinery · Corrugation Machineries · Drum Plants
Countries :	· Dubai · Iran · Turkey · Sri Lanka · Bangladesh · Africa · Qatar
Imports :
Products :	Raw Material
Countries :	China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· Akhilesh Enterprises

· Ashok Kumar and Sons

· Bhandari Sales Corporation

· Gian Chand and Sons

· M. S. Industries

· Jai Durga Paper Mill

· Bawa Steel Traders

· Kay Dee Engineers

· D. S. Pulp and Paper Machine

· Hi Tech Engineers

· Poojas Metals

· Pincity Logistics Limited

· National Plant House

· Quality Engineering Works

Customers :

End Users

· Abbasi

· Keyhan Kaghaze Yazd (Iran)

· Sigma Cores (Prop Saber PK)

· Sigma Cartoons Private Limited

· Satyam Industries Private Limited

· Saber Paper Limited

· Durga Duplex Mills (Private) Limited

· M. A. Tadti

· Pacific Continental

· Sawera Travel Private Limited

No. of Employees :

70 (Approximately) [In Factory and In Branches]

Bankers :

· Union Bank of India

Manjith Mandi Branch, Amritsar – 143001, Punjab, India

· ICICI Bank

· HDFC Bank Limited

· Yes Bank

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Short Term Borrowings
Banks Limits
Union Bank of India O/D	9.539	9.491
Union Bank of India Car Loan	0.000	0.519
Union Bank of India C/C	3.128	3.458
Union Bank of India 120 C	0.000	0.510
Union Bank of India Packi	11.800	11.900
Total	24.467	25.878

Banking Relations :	--
Auditors :
Name :	Lakhwinder Singh and Associates Chartered Accountants
Address :	Katra Baghian, Chowk Bijli, Hall Bazar, Amritsar – 143 001, Punjab, India
Tel. No.:	91-183-5051211 (Off)/ 3296773/ 3296772/ 2589030 (Residence)
Mobile No.:	91-9356021211
PAN No.:	ABBPB8815C
Associates/Subsidiaries :	· Harjit Industries Address: 43, Sudharshan Nagar, 100 Feet Road, Amritsar, Punjab, India Line of Business : Manufacturer and Exporter Industrial Paper Machinery, Pulp and Paper Mill Machinery, Corrugation Machineries and Drum Plants etc.

CAPITAL STRUCTURE

(AS ON 29.09.2012)

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
559900	Equity Shares	Rs.10/- each	Rs.5.599 Millions

(AS ON 31.03.2012)

Authorised Capital:

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs.10/- each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
249900	Equity Shares	Rs.10/- each	Rs.2.499 Millions

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	2.499	2.499
(b) Reserves & Surplus	5.247	3.920
(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)	7.746	6.419
(3) Non-Current Liabilities
(a) long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.148	0.136
(c) Other long term liabilities	5.174	1.521
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	5.322	1.657
(4) Current Liabilities
(a) Short term borrowings	24.467	25.878
(b) Trade payables	39.015	32.136
(c) Other current liabilities	0.102	0.055
(d) Short-term provisions	0.019	0.000
Total Current Liabilities (4)	63.603	58.069
TOTAL	76.671	66.145
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	6.521	5.966
(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	6.521	5.966
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	19.815	21.426
(c) Trade receivables	21.325	16.154
(d) Cash and cash equivalents	1.795	2.337
(e) Short-term loans and advances	12.334	8.095
(f) Other current assets	14.881	12.167
Total Current Assets	70.150	60.179
TOTAL	76.671	66.145

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2.499
2] Share Application Money		0.000
3] Reserves & Surplus		3.315
4] (Accumulated Losses)		0.000
NETWORTH		5.814
LOAN FUNDS
1] Secured Loans		7.358
2] Unsecured Loans		1.521
TOTAL BORROWING		8.879
DEFERRED TAX LIABILITIES		0.128
TOTAL		14.821
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.266
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	12.808
	Sundry Debtors	57.544
	Cash & Bank Balances	1.661
	Other Current Assets	2.309
	Loans & Advances	0.073
Total Current Assets		74.395
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	64.840
	Other Current Liabilities	0.000
	Provisions	0.000
Total Current Liabilities		64.840
Net Current Assets		9.555
MISCELLANEOUS EXPENSES		0.000
TOTAL		14.821

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	72.873
		Other Income	NA
		TOTAL	NA	54.494	27.080
Less	EXPENSES
		TOTAL	NA	53.889	26.681
	PROFIT BEFORE TAX		NA	0.605	0.399
Less	TAX		NA	0.000	0.120
	PROFIT AFTER TAX		1.335	0.605	0.279
	EARNINGS IN FOREIGN CURRENCY		68.671	--	--
	Earnings Per Share (Rs.)		5.34	2.42	1.12

Particulars	31.03.2013
Sales Turnover (Approximately)	100.000

The above information has been parted by Mr. Satinder S.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	1.11	1.03
Net Profit Margin (PBT/Sales)	(%)	NA	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	NA	0.91	0.50
Return on Investment (ROI) (PBT/Networth)		NA	0.09	0.07
Debt Equity Ratio (Total Debt/Networth)		3.16	4.03	1.53
Current Ratio (Current Asset/Current Liability)		1.10	1.04	1.15

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	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

OPERATIONS

The company has made sales of Rs.72.873 Millions made a net Profit of Rs.1.335 Millions during the year.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/ Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10071786	26/09/2009 *	24,500,000.00	UNION BANK OF INDIA	MAJITH MANDI BRANCH, AMRITSAR, PUNJAB - 143001, INDIA	A71364780
2	80056279	07/02/2006	800,000.00	UNION BANK OF INDIA	RANJIT AVENUE, AMRITSAR, PUNJAB - 143001, INDIA	-
3	80056280	26/09/2009 *	6,000,000.00	UNION BANK OF INDIA	MAJITH MANDI BRANCH, AMRITSAR, PUNJAB - 143001, INDIA	A71364319

* Date of charge modification

FIXED ASSETS:

· Building

· Car

· Machinery

· Computer

· Fax Machine

· Mobile Phone

· Furniture and Fixture

· Fan

· Invertors

· Refrigenerator

· 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.61.58
UK Pound	1	Rs.98.51
Euro	1	Rs.83.49

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
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	2
--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		29

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.