MIRA INFORM REPORT

Report Date :

06.05.2014

IDENTIFICATION DETAILS

Name :	JMC PAPER TECH PRIVATE LIMITED
Registered Office :	25-26/8/13, Nilsin Blue Factory Compound, Phase-1, GIDC, Vatva, Ahmedabad-382445, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	19.07.2011
Com. Reg. No.:	04-066396
Capital Investment / Paid-up Capital :	Rs. 38.175 Millions
CIN No.: [Company Identification No.]	U29293GJ2011PTC066396
TAN No.: [Tax Deduction & Collection Account No.]	AHMJ04795A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Paper Mill Machinery Equipment and Trader of Spare Parts.
No. of Employees :	150 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 160000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject was erstwhile started as a partnership concern started in the year 2002 with the name “JMC Engineers” and further reconstituted as a private limited company bearing the present name. it is an established company having moderate track record. The company possesses a below average financial profile marked by low position of reserves and huge gap between trade receivables and payables along with deterioration in cash reserves. Management has reported a dip in its sales volume as well as net profitability along with low profit margins. However, trade relations appear to be fair. Business is active. Payment terms are reported as slow. The company can be considered 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 – December 1, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

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. Rajani Patel
Designation :	Director
Contact No.:	91-9825012168
Date :	16.04.2014

LOCATIONS

Registered Office/ Factory :	25-26/8/13, Nilsin Blue Factory Compound, Phase-1, GIDC, Vatva, Ahmedabad-382445, Gujarat, India
Tel. No.:	91-79-40014848 / 25830709 / 25892681
Mobile No.:	91-9825012168 (Mr. Rajani Patel)
Fax No.:	91-79-40014888 / 25830759
E-Mail :	rajni@jmcengineers.com
Website :	http://www.jmcengineers.com

DIRECTORS

AS ON 30.09.2013

Name :	Mrs. Binaben Rajani Patel
Designation :	Director
Address :	19/B, Parul Nagar Society, Bhyangdev Char Rasta, Ghatlodiya, Ahmedabad-380061, Gujarat, India
Date of Birth/Age :	12.11.1973
Date of Appointment :	19.07.2011
DIN No.:	02441100
Name :	Mr. Mayankkumar Amrutlal Suthar
Designation :	Director
Address :	D-4, Devbhumi Society, Ghodasar, Ahmedabad-380050, Gujarat, India
Date of Birth/Age :	17.04.1970
Date of Appointment :	19.07.2011
DIN No.:	03509669
Name :	Mr. Rajani Ambalal Patel
Designation :	Managing Director
Address :	10/B, Parul Nagar Society, Bhyangdev Char Rasta, Ghatlodiya, Ahmedabad-380061, Gujarat, India
Date of Birth/Age :	11.09.1971
Date of Appointment :	19.07.2011
DIN No.:	03509671
Name :	Mr. Kanan Dhirendra Patel
Designation :	Director
Address :	19/B, Parul Nagar Society, Bhyangdev Char Rasta, Ghatlodiya, Ahmedabad-380061, Gujarat, India
Date of Birth/Age :	25.04.1985
Date of Appointment :	21.07.2011
DIN No.:	03580054

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	Company/ LLP Status	Defaulting status
1	U29293GJ2011PTC066396	JMC PAPER TECH PRIVATE LIMITED	Director	29/09/2012	21/07/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON AS ON 30.09.2013

Name of Shareholders	No. of Shares	%age
Binaben Rajani Patel	2,685,000	70.33
Rajani Ambalal Patel (HUF)	681,000	17.84
Kanan Patel	449,000	11.76
Mayankkumar Amrutlal Suthar	1,000	0.03
Rajesh Babubhai Gajjar	500	0.01
Nipam Jayantilal Thakkar	500	0.01
Amarishkumar Dahyalal Patel	500	0.01
TOTAL	3,817,500	100.00

AS ON 30.09.2013

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Paper Mill Machinery Equipment and Trader of Spare Parts.
Exports :
Products :	Finished Goods
Countries :	Bangladesh Sri Lanka Canada US
Imports :
Products :	Raw Material
Countries :	China
Terms :
Selling :	Cash, Credit, Cheque
Purchasing :	Cash, Credit, Cheque

GENERAL INFORMATION

Customers :

Wholesalers and Others

No. of Employees :

150 (Approximately)

Bankers :

• Union Bank of India, Gomtipur Branch, Outside Gomtipur Gate, Ahmedabad-380021, Gujarat, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2013	Rs. In Millions 31.03.2012
Long Term Borrowings
Term Loan From Banks
For Motor Car	0.249	0.000
Short Term Borrowings
Loans Repayable on Demand
Working Capital Loans from Bank
Union Bank of India – Cash Credit	45.014	26.725
Union Bank of India – Packing Credit	4.929	8.921
TOTAL	50.192	35.646
NOTES LONG TERM BORROWINGS Terms of Repayment Term loan from Union Bank of India for Motor Car is repayable in 36 equal monthly installments from the date of the loan, interest rate applicable on this term loans to 11% p.a. Security offered against term loans Term loan for motor car is secured by the hypothecation of respective motor car. Further this loan is also secured by personal guarantees of Directors. SHORT TERM BORROWINGS Working capital loans are secured by hypothecation of present and future inventory and book debts. Working capital facilities from bank are secured by way of first mortgage / charge on pari-passu basis on the plant and machineries and manufacturing units of company and on property belonging to one of director situated at Ahmedabad (Gujarat) and personal guarantees of all directors of the company.

Banking Relations :	--
Auditors :
Name :	Surana Maloo and Company Chartered Accountant
Address :	4^th Floor, Shaival Plaza, Gujarat College Road, Ahmedabad-380006, Gujarat, India
PAN No.:	AAHFS7809J

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs. 45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3817500	Equity Shares	Rs.10/- each	Rs. 38.175 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	38.175	38.175
(b) Reserves & Surplus	2.030	1.331
(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)	40.205	39.506
(3) Non-Current Liabilities
(a) long-term borrowings	5.414	16.411
(b) Deferred tax liabilities (Net)	0.175	0.234
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	5.589	16.645
(4) Current Liabilities
(a) Short term borrowings	62.044	92.965
(b) Trade payables	85.676	59.004
(c) Other current liabilities	0.675	3.478
(d) Short-term provisions	0.424	0.000
Total Current Liabilities (4)	148.819	155.447
TOTAL	194.613	211.598
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	22.621	25.229
(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	0.268	0.214
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	22.889	25.443
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	132.427	168.199
(c) Trade receivables	31.975	8.309
(d) Cash and cash equivalents	0.393	2.166
(e) Short-term loans and advances	6.929	5.051
(f) Other current assets	0.000	2.430
Total Current Assets	171.724	186.155
TOTAL	194.613	211.598

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2013	31.03.2012
	SALES
	Income	200.899	242.403
	Other Income	1.726	2.772
	TOTAL	202.625	245.175
Less	EXPENSES
	Cost of Materials Consumed	201.595	243.245
	Purchases of Stock-in-Trade
	Employees benefits expense
	TOTAL	201.595	243.245
	PROFIT/ (LOSS) BEFORE TAX	1.030	1.930
Less	TAX	0.329	0.602
	PROFIT/ (LOSS) AFTER TAX	0.701	1.328
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	17.911	10.052
	TOTAL EARNINGS	17.911	10.052
	IMPORTS
	Raw Materials	0.000	35.548
	TOTAL IMPORTS	0.000	35.548
	Earnings / (Loss) Per Share (Rs.)	0.18	0.35

Expected Sales (2013-2014) : Rs. 300.000 Millions

The above information has been parted by Mr. Rajani Patel.

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012
PAT / Total Income	(%)	0.35	0.54
Net Profit Margin (PBT/Sales)	(%)	0.51	0.80
Return on Total Assets (PBT/Total Assets}	(%)	0.53	0.91
Return on Investment (ROI) (PBT/Networth)		0.03	0.05
Debt Equity Ratio (Total Debt /Networth)		1.68	2.77
Current Ratio (Current Asset/Current Liability)		1.15	1.20

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013
	(INR in Mlns.)	(INR in Mlns.)
Share Capital	38.175	38.175
Reserves & Surplus	1.331	2.030
Net worth	39.506	40.205
long-term borrowings	16.411	5.414
Short term borrowings	92.965	62.044
Total borrowings	109.376	67.458
Debt/Equity ratio	2.769	1.678

YEAR ON YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013
	(INR in Mlns)	(INR in Mlns)
Sales	242.403	200.899
		(17.122)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013
	(INR)	(INR)
Sales	242.403	200.899
Profit	1.328	0.701
	0.55%	0.35%

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 two years	Yes
12]	Profitability for last two years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	Yes
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)	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

Unsecured Loan	Rs. In Millions 31.03.2013	Rs. In Millions 31.03.2012
Long Term Borrowings
From Shareholders	5.165	1.825
From Corporate Bodies	0.000	14.586
Short Term Borrowings
Other Loans and Advances
Advance for work from Customers	12.101	57.319
TOTAL	17.266	73.730

INDEX OF CHARGES

S. No	Charge ID	Date of Charge Creation /Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN
1	10364018	22/05/2012	600,000.00	UNION BANK OF INDIA	GOMTIPUR BRANCH, OUTSIDE GOMTIPUR GATE, AHMEDABAD, GUJARAT - 380021, INDIA	B43002211
2	10299918	28/08/2012 *	50,783,000.00	UNION BANK OF INDIA	GOMTIPUR BRANCH, OUTSIDE GOMTIPUR GATE, AHMEDABAD, GUJARAT - 380021, INDIA	B57398240
* Date of charge modification

CORPORATE INFORMATION

Subject is a closely held company domiciled in India and incorporated under the provisions of the company act, 1956. The company is engaged in the business of manufacturing of paper mill machinery equipment and trading of its spare parts.

OPERATIONS

The sales of the company has been placed at Rs. 200.899 Millions as compared to previous figures of Rs. 242.403 Millions whereas after providing for interest, depreciation and other expenses, the company has earned net profit of Rs. 0.701 Million as compared to previous year figures of Rs. 1.328 Millions. The directors are optimistic of achieving better results in the coming year.

FIXED ASSETS

• Freehold Land
• Leasehold Land
• Factory Building
• Plant and Machinery
• Pattern and Dies
• Vehicles
• Furniture
• Office Equipments
• Computers

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. 60.06
UK Pound	1	Rs. 101.31
Euro	1	Rs. 83.34

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUB
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
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	3
--RESERVES	1~10	3
--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	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		28

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.