MIRA INFORM REPORT

Report Date :

29.10.2013

IDENTIFICATION DETAILS

Name :	INDO GLOBAL COMMERCIALS PRIVATE LIMITED
Formerly Known As :	LITCO FUEL INDUSTRIES (INDIA) PRIVATE LIMITED
Registered Office :	56, East Wardhman Nagar, Nagpur – 440008, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	24.10.1991
Com. Reg. No.:	11-063736
Capital Investment / Paid-up Capital :	Rs.4.475 Millions
CIN No.: [Company Identification No.]	U23100MH1991PTC063736
TAN No.: [Tax Deduction & Collection Account No.]	NGPI00135C
Legal Form :	Private Limited Liability Company
Line of Business :	Trading in newsprint and writing and printing paper. The company is also engaged in trading of coal and also set up a 0.6-megawatt windmill.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 586000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears huge external borrowings recorded by the company 2012. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

India’s current account deficit or CAD in April-June widened to 4.9 % of gross domestic product. High imports of gold and oil led to a worsening of the trade deficit, resulting in CAD jumping to $ 21.8 billion to the latest quarter from $ 16.9 billion in the corresponding quarter of the previous financial year. The government aims to bring down CAD to 3.7 % or $ 70 billion, in 2013/14, from 4.8 % or $ 88.2 billion in 2012/13.

The finance ministry has started preparations for Budget 2014/15. With general elections scheduled to be held by May next year, there will only be an interim budget. The new government will present the fiscal Budget.

The Supreme Court has barred clinical trials for new drugs till a monitoring mechanism is put in place to protect the lives of people on which the drugs are tested.

Mumbai has been named the world’s second most honest city according to a survey on 15 cities worldwide by Readers’ Digest magazine. Finnish capital Helsinki bagged the top spot for the world’s most honest city while Lisbon, the capital of Portugal, proved to be the least honest.  The survey put hundreds of people to test in four continents to find out just how honest they were by dropping wallets and seeing how many would be returned.

3.7 % Growth of the core sector in August, a seven month high. This takes the overall growth in April-August this year to 2.3 % compared with 6.3 % in the corresponding period next financial year.

$19 million Estimated average spending by companies across the globe including India, on social media this year, according to a global study by information technology major Tata Consultancy Services. This will rise to $ 24 million in 2015.

Rising inflation, fewer employment avenues and dwindling earnings are taking a toll on the spending capacity in India. Over 72 % respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 % and on average spend nearly 25 % of their monthly salary on Diwali, according to a survey by Assochem.

Analysts believe the shutdown of the US government would have limited impact in sectors such as IT or tourism that are dependent on Visa clearances.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	BB+ (Long Term)
Rating Explanation	Have moderate risk of default.
Date	September 25, 2012

Rating Agency Name	CRISIL
Rating	A4+ (Short Term)
Rating Explanation	Have minimal degree of safety and carry very high credit risk.
Date	September 25, 2012

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 DENIED BY

Name :	Mr. Raj Kumar Agarwal
Designation :	Finance Department
Contact No.:	91-712-7681706
Date :	28.10.2013

LOCATIONS

Registered Office/ Head Office :	56, East Wardhman Nagar, Nagpur – 440008, Maharashtra, India
Tel. No.:	91-712-2681706-09
Fax No.:	91-712-2681122
E-Mail :	jaincoal@dataone.in

DIRECTORS

As on: 25.09.2012

Name :	Mr. Surendra Chaturbhuj Jain
Designation :	Whole-Time Director
Address :	1340-1341, Deshpande Lay-Out, Queta Colony, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	18.07.1966
Date of Appointment :	01.04.2012
DIN No.:	01142135
Name :	Mr. Vinod Chaturbhuj Jain
Designation :	Whole-Time Director
Address :	1427, Deshpande Lay-Out, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	12.12.1962
Date of Appointment :	01.04.2012
DIN No.:	01141827
Name :	Mr. Rajendra Premchand Jain
Designation :	Whole-Time Director
Address :	134, Surya Nagar, Bagadganj, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	18.03.1961
Date of Appointment :	01.04.2012
DIN No.:	00514845
Name :	Mr. Sajjan Chaturbhuj Jain
Designation :	Whole-Time Director
Address :	P. No. 1333, Deshpande Lay-Out, Wardhaman Nagar, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	08.11.1960
Date of Appointment :	01.04.2012
DIN No.:	01075727
Name :	Mr. Rajesh Sajjan Jain
Designation :	Director
Address :	P. No. 1333, Deshpande Lay-Out, Wardhaman Nagar, Nagpur – 440008, Maharashtra, India
Date of Birth/Age :	20.02.1986
Date of Appointment :	02.05.2011
DIN No.:	03520107

KEY EXECUTIVES

Name :	Mr. Raj Kumar Agarwal
Designation :	Finance Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 25.09.2012

Names of Shareholders	No. of Shares
Surender Jain	3500
Vinod Jain	3500
Rajendra Jain	3500
Sajjan Jain	3500
Sunita Jain	3000
Manju Jain	3000
Suman Jain	3000
Shikha Jain	3000
Ghaturbhuj Jain	500
Shantidevi Jain	250
Rajesh Jain	1500
Ankush Jain	1500
Sajjan Jain (HUF)	3000
Vinod Jain (HUF)	3000
Surender Jain (HUF)	3000
Rajendra Jain (HUF)	3000
Ankit Jain	3000
Total	44750

Equity Share Break up (Percentage of Total Equity)

As on: 25.09.2012

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Trading in newsprint and writing and printing paper. The company is also engaged in trading of coal and also set up a 0.6-megawatt windmill.

Products :

Product Description	ITC Code
MG Kraft Paper	431029
Coal	27011902

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· State Bank of India, Hingna Industrial Estate, Plot No. 43, MIDC, Hingna, Nagpur - 440016, Maharashtra, India

· HDFC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
Term Loans
From SBI Hinga, Nagpur (Secured against Wing Mill, Land and also by personal guarantees of Directors and guarantors.)	3.244	9.116
From Tata Capital Limited, Nagpur (Secured against hypothecation of Motor Car)	0.000	0.519
SHORT TERM BORROWINGS
Cash Credit
From SBI Hinga, Nagpur	79.856	46.116
SBI Itwari, Nagpur	18.374	15.105
Export Packing Credit
From SBI Hinga, Nagpur	0.000	2.822
Total	101.474	73.678

Banking Relations :	--
Auditors :
Name :	Agarwal Challani and Company Chartered Accountants
Address :	51, New Colony, Nagpur – 440001, Maharashtra, India
PAN No.:	AACFA2753L

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
44750	Equity Shares	Rs.100/- each	Rs.4.475 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	4.475	4.475
(b) Reserves & Surplus	142.074	127.445
(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)	146.549	131.920
(3) Non-Current Liabilities
(a) long-term borrowings	54.962	53.292
(b) Deferred tax liabilities (Net)	8.818	9.542
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	63.780	62.834
(4) Current Liabilities
(a) Short term borrowings	208.359	64.043
(b) Trade payables	118.000	141.474
(c) Other current liabilities	0.833	0.000
(d) Short-term provisions	9.020	9.248
Total Current Liabilities (4)	336.212	214.765
TOTAL	546.541	409.519
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	42.399	43.877
(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	0.001	6.001
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	11.279	12.237
Total Non-Current Assets	53.679	62.115
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	0.000	1.059
(c) Trade receivables	475.285	297.949
(d) Cash and cash equivalents	5.715	3.233
(e) Short-term loans and advances	16.914	0.000
(f) Other current assets	12.948	45.163
Total Current Assets	510.862	347.404
TOTAL	546.541	409.519

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.475
2] Share Application Money		0.000
3] Reserves & Surplus		114.475
4] (Accumulated Losses)		0.000
NETWORTH		118.950
LOAN FUNDS
1] Secured Loans		99.971
2] Unsecured Loans		26.771
TOTAL BORROWING		126.742
DEFERRED TAX LIABILITIES		10.413
TOTAL		256.105
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		44.565
Capital work-in-progress		0.000
INVESTMENT		6.001
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.262
	Sundry Debtors	227.516
	Cash & Bank Balances	4.503
	Other Current Assets	2.527
	Loans & Advances	46.368
Total Current Assets		282.176
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	71.344
	Other Current Liabilities	0.936
	Provisions	4.357
Total Current Liabilities		76.637
Net Current Assets		205.539
MISCELLANEOUS EXPENSES		0.000
TOTAL		256.105

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	430.843	265.524
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	411.627	251.706
	PROFIT BEFORE TAX		19.216	13.818
Less	TAX		4.505	3.787
	PROFIT AFTER TAX		14.711	10.031
	EARNINGS IN FOREIGN CURRENCY		128.009	6.987
	Earnings Per Share (Rs.)		290.00	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	3.41	3.78
Return on Total Assets (PBT/Total Assets}	(%)	NA	3.42	3.85
Return on Investment (ROI) (PBT/Networth)		NA	0.15	0.12
Debt Equity Ratio (Total Debt/Networth)		1.80	0.89	1.07
Current Ratio (Current Asset/Current Liability)		1.52	1.62	3.68

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT DETAILS – NOT AVAILABLE

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	No
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last two years	Yes
12]	Profitability for last two 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	No
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	Yes

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
LONG TERM BORROWINGS
From Shareholders	51.718	10.854
Inter-Corporate	0.000	32.803
SHORT TERM BORROWINGS
From Shareholders	74.200	0.000
Inter-Corporate	35.929	0.000
Total	161.847	43.657

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90154858	14/05/2013 *	239,300,000.00	State Bank of India	HINGNA INDUSTRIAL ESTATE, PLOT NO. 43, MIDC, HINGNA, NAGPUR, MAHARASHTRA - 440016, INDIA	B76685569

* Date of charge modification

FIXED ASSETS

Tangible Assets

· Land at Sangli

· Computers

· Wind-mil

· Motorcars

· Motor Cycles

· Scooters

· Furniture and Fixtures

· Air Conditioners

· E.P.A.B.X.

· Fax Machine

· Xerox Machine

· Mobile Phones

· Office Equipments

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.61.50
UK Pound	1	Rs.99.49
Euro	1	Rs.84.88

INFORMATION DETAILS

Information Gathered by :	JML
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	4
--RESERVES	1~10	5
--CREDIT LINES	1~10	3
--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		32

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.