MIRA INFORM REPORT

Report Date :

19.10.2013

IDENTIFICATION DETAILS

Name :	JNANA MANDAL LIMITED
Registered Office :	A J Bhawansant Kabir Road, Varanasi – 221001, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.01.1940
Com. Reg. No.:	20-000931
Capital Investment / Paid-up Capital :	Rs.9.990 Millions
CIN No.: [Company Identification No.]	U24231UP19740PLC000931
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Printer and Publishers of Newspapers.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 209000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company is continuously incurring losses from its operation. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company ca be 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 (GENERAL DETAILS)

Name :	Mr. Vinod Verma
Designation :	Account Departments
Contact No.:	91-542-2393981
Date :	16.10.2013

LOCATIONS

Registered Office :	A J Bhawansant Kabir Road, Varanasi – 221001, Uttar Pradesh, India
Tel. No.:	91-542-2393981
Fax No.:	91-542-2393989
E-Mail :	ajvinodverma@gmail.com ajhindidaily@gmail.com
Location :	Owned
Website :	www.ajsamachar.com

DIRECTORS

As on: 29.09.2012

Name :

Mr. Shardul Vikram Gupta

Designation :

Managing Director

Address :

Seva Upawan Nagwa, Lanka, Varanasi – 221005, Uttar Pradesh, India

Date of Birth/Age :

23.09.1953

Date of Appointment :

07.02.1972

DIN No. :

00162392

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	U24231UP1940PLC000931	JNANA MANDAL LIMITED	Managing director	01/10/2010	07/02/1972	-	Active	NO
2	U22121UP1977PTC004450	AJ PRAKASHAN PRIVATE LIMITED	Director	13/07/1977	13/07/1977	-	Active	NO
3	U22190UP1982PTC005641	SHASHWAT PRINTERS PRIVATE LIMITED	Director	30/04/1982	30/04/1982	-	Active	NO
4	U22121UP1944PLC000785	NEWS PAPERS LIMITED	Director	30/12/1985	30/12/1985	-	Active	NO
5	U65910UP1988PTC010113	SHVETABH INVESTMENT PRIVATE LIMITED	Director	07/10/1988	07/10/1988	-	Active	NO
6	U92200UP1990PTC011968	BIHAR SAMACHAR PATRA PRIVATE LIMITED	Director	06/06/1990	06/06/1990	03/09/2012	Active	NO
7	U22111UP1990PTC011969	GOMTI PRAKASHAN PRIVATE LIMITED	Director	06/06/1990	06/06/1990	03/09/2012	Active	NO
8	U74300UP1990PTC012269	ACE MEDIA ADVERTISERS PRIVATE LIMITED	Director	08/10/1990	08/10/1990	-	Strike off	NO
9	U15133UP1993PTC015671	SHRI S.K. FARMS AND GREENLAND PRIVATE LIMITED	Director	02/09/1993	02/09/1993	-	Under liquidation	NO
10	U45203UP2005PLC030481	KALPADRRUM LIMITED	Director	10/08/2005	10/08/2005	15/02/2012	Active	NO

Name :

Mr. Shashikant Tripathi

Designation :

Director

Address :

A 2 / 7, Kameshwar, Mahadeo, Varanasi – 221001, Uttar Pradesh, India

Date of Birth/Age :

01.07.1952

Date of Appointment :

30.09.2005

DIN No. :

00208755

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	U24231UP1940PLC000931	JNANA MANDAL LIMITED	Director	30/09/2005	30/09/2005	-	Active	NO
2	U70109WB1998PTC087521	SUN CITY PROPERTIES PRIVATE LIMITED	Director	03/10/2006	03/10/2006	15/06/2010	Active	NO

Name :

Mr. Satya Narayan Prasad Keshari

Designation :

Director

Address :

B 2 / 90, Bhadaini, Varanasi – 221005, Uttar Pradesh, India

Date of Birth/Age :

01.07.1941

Date of Appointment :

28.09.1996

DIN No. :

00208759

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Shardul Vikram Gupta	750040
Gupta Poonam	190880
Bhaskar Vidya	80
Prasad Lalit	80
Gupta Bhushan Jyoti	80
Agarwal Prasad Saty	80
Upadyay Satyadeo	80
Gupta Vikram Shash	24000
Gupta Vikram Shwetabh	24000
Gupta Vikram Shardul	9600
Shashikant Tripathi	10
Kumar Narendra	10
Prasad Vishwanath	40
Keshari Prasad Satya Narayan	20
Total	999000

As on: 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	99.94
Other top fifty shareholders	0.06
Total	100.00

BUSINESS DETAILS

Line of Business :	Printer and Publishers of Newspapers.
Brand :	“AJ” HINDI DAILY NEWSPAPER
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS AS ON (31.03.2012)

Particulars	31.03.2012
Licensed Capacity	NA
Installed Capacity
Varanasi	30000 Copies per Hours
Gorakhpur	30000 Copies per Hours
Allahabad	15000Copies per Hours
Actual Production (In Copies)
News Papers	109886627
Publication	4901

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

200 (Approximately)

Bankers :

· Indian Overseas Bank, C-7/34 Laurabir Main Crossing, Lahurabir, Varansi - 221001, Uttar Pradesh, India

· Andhra Bank, Allahabad, India

· Bank of India, Varanasi, Uttar Pradesh, India

Facilities :

Secured Loan	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Long Term Borrowing
Term loan from Bank
Indian Overseas Bank, Liquirent A/c	0.546	2.194
Other Loans
Loans and Advances from related parties	8.458	9.052
Total	9.004	11.246

Banking Relations :	--
Auditors :
Name :	B D Gujrati Chartered Accountant
Address :	B-21/1, First Floor, Rathyatra, Varansi – 221010, Uttar Pradesh, India
PAN No. :	AADEC4125F

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
999000	Equity Shares	Rs.10/- each	Rs.9.990 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	9.990	9.990
(b) Reserves & Surplus	42.294	42.272
(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)	52.284	52.262
(3) Non-Current Liabilities
(a) long-term borrowings	9.004	11.246
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	3.662	1.489
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	12.666	12.735
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000
(b) Trade payables	79.186	91.586
(c) Other current liabilities	146.451	161.229
(d) Short-term provisions	1.657	2.331
Total Current Liabilities (4)	227.294	255.146
TOTAL	292.244	320.143
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	77.182	79.889
(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	2.066	2.067
(c) Deferred tax assets (net)	8.310	16.128
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.012	0.012
Total Non-Current Assets	87.570	98.096
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	7.926	15.421
(c) Trade receivables	134.391	128.914
(d) Cash and cash equivalents	9.129	16.856
(e) Short-term loans and advances	53.228	60.856
(f) Other current assets	0.000	0.000
Total Current Assets	204.674	222.047
TOTAL	292.244	320.143

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		9.990
2] Share Application Money		65.081
3] Reserves & Surplus		0.000
4] (Accumulated Losses)		(2.112)
NETWORTH		72.959
LOAN FUNDS
1] Secured Loans		8.073
2] Unsecured Loans		8.014
TOTAL BORROWING		16.087
DEFERRED TAX LIABILITIES		0.000
TOTAL		89.046
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		80.056
Capital work-in-progress		0.000
INVESTMENT		2.566
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	13.416
	Sundry Debtors	128.164
	Cash & Bank Balances	20.655
	Other Current Assets	0.000
	Loans & Advances	113.607
Total Current Assets		275.842
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	251.779
	Other Current Liabilities	15.343
	Provisions	2.296
Total Current Liabilities		269.418
Net Current Assets		6.424
MISCELLANEOUS EXPENSES		0.000
TOTAL		89.046

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	205.183	221.115	249.107
		Other Income	10.695	9.390	6.268
		TOTAL	215.878	230.505	255.375
Less	EXPENSES
		Cost of raw material and component consumed	162.142	195.592
		Employee benefits expense	10.655	8.550
		Other expenses	40.226	43.113
		Loss On Sale of investment	0.000	0.375
		TOTAL	213.023	247.630	256.392
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		2.855	(17.125)	(1.017)
Less	FINANCIAL EXPENSES		0.788	0.995	1.354
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		2.067	(18.120)	(2.371)
Less/ Add	DEPRECIATION/ AMORTISATION		2.272	2.577	(2.827)
	PROFIT BEFORE TAX		(0.250)	(20.697)	0.456
Less	TAX		0.000	0.000	0.150
	PROFIT AFTER TAX		(0.205)	(20.697)	0.306
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(22.808)	(2.112)	(2.148)
	BALANCE CARRIED TO THE B/S		NA	(22.808)	(2.112)
	Earnings Per Share (Rs.)		(0.20)	(20.72)	0.31

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(0.11)	(8.97)	0.12
Net Profit Margin (PBT/Sales)	(%)	(0.12)	(9.36)	0.18
Return on Total Assets (PBT/Total Assets}	(%)	(0.09)	(6.85)	(0.13)
Return on Investment (ROI) (PBT/Networth)		(0.00)	(0.40)	0.00
Debt Equity Ratio (Total Debt /Networth)		0.17	0.21	0.22
Current Ratio (Current Asset/Current Liability)		0.90	0.87	1.02

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	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

INDEX CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10288510	31/01/2012 *	3,800,000.00	Indian Overseas Bank	C-7/34 Laurabir Main Crossing, Lahurabir, Varanasi, Uttar Pradesh - 221001, INDIA	B33325242
2	90281333	27/12/2010 *	4,500,000.00	Indian Overseas Bank	Lahurabir, Varanasi, Uttar Pradesh - 221001, INDIA	B03754389

* Date of charge modification

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 records 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] 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.61.28
UK Pound	1	Rs.99.03
Euro	1	Rs.83.80

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	ANK

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	3
--PROFITABILIRY	1~10	2
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

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.