MIRA INFORM REPORT

Report No. :	349091
Report Date :	20.11.2015

IDENTIFICATION DETAILS

Name :	RATIONAL BUSINESS CORPORATION PRIVATE LIMITED
Registered Office :	Bahalgarh Chowk, Delhi Sonepat Road, Sonepat - 131001, Haryana
Tel. No.:	91-11-42563500
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	10.01.2006
Com. Reg. No.:	05-041196
Capital Investment / Paid-up Capital :	Rs.49.896 Million
CIN No.: [Company Identification No.]	U21017HR2006PTC041196
IEC No.:	Not Available (As claimed by company management that company does not export and import)
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Office Stationery and Allied products and Computer Peripherals and Hardware.
No. of Employees :	150 (Approximately)

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 450000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	The subject is an established company incorporated in the year 2006. It is a manufacturer and supplier of complete range of office stationary. It has moderate track. The rating takes into consideration moderate financial track record of the company marked by high debt level and very low profit margin in FY14, due to which it might face problem in serving its debt obligation in future. Trade relations are fair. Business is active. Payment terms are reported to be slow but correct. In view of aforesaid, 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.

HENKEL RATING

HENKEL’s Rating :

400 (High risk) 450 (Very high risk)

Credit Rating	Henkel Rating (Customer Risk Assesment- CRA)
Mira Inform	Risk Category	Credit Limit	Description
Aaa	100	Inter Company, credit limit not required	Very low risk (blue ships)
Aa	200, 201	(120% of Gross Annualised Sales/365)*Credit Term.	Low risk
A	300, 301	(100% of Gross Annualised Sales/365)*Credit Term.	Moderate risk
Ba	350	(90% of Gross Annualised Sales/365)*Credit Term.	Significant risk
B	400	(80% of Gross Annualised Sales/365)*Credit Term.	High risk
	450		Very high risk
Ca or C	500*	NIL/ Legal/ Bad/No Transaction	Doubtful accounts
	007*	NIL	Small unrated customers
	009*	NIL	Inactive customers
	999*	Initially First Invoice vales, CRA will be done and based on report the CL would get revised.	New customer

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term Rating = (BB+) (Suspended)
Rating Explanation	Inadequate credit quality and high credit risk.
Date	January 30, 2015

Rating Agency Name	CRISIL
Rating	Short term Rating = (A4+)
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	January 30, 2015

Note : Response for suspension: Absence of requisite information.

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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Niraj Kumar
Designation :	Finance Manager
Contact No.:	91-11-42563500
Date :	17.11.2015

LOCATIONS

Registered Office / Factory:	Bahalgarh Chowk, Delhi Sonepat Road, Sonepat - 131001, Haryana, India
Tel. No.:	91-11-42563500/27463400
Fax No.:	91-11-42563599
E-Mail :	pankajjindalandco@gmail.com ashishgupta2002@desmat.com ashish@desmat.com century@giasdl01.vsnl.net.in ashok@desmat.com accounts4@desmat.com
Website :	www.desmat.com
Location :	Owned
Locality :	Commercial
Corporate Office :	N-10, Satyawati Nagar, Ashok Vihar, Phase 3, New Delhi, India
E-Mail :	ashok@desmat.com
Warehouse :	18/6 Miles, G.T road, Vill Rasoli, Near Rasoi Dhaba, District Sonepat, Haryana, India
Location :	Owned

DIRECTORS

As on 30.09.2014

Name :

Mr. Ashok Gupta

Designation :

Director

Address :

B-26, 2nd Floor, Satyawati Colony, Ashok Vihar-III, Delhi -110052, India

Date of Birth/Age :

04.09.1968

Date of Appointment :

10.01.2006

DIN No.:

00023505

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	U21017HR2006PTC041196	RATIONAL BUSINESS CORPORATION PRIVATE LIMITED	Director	10/01/2006	10/01/2006	-	Active	NO
2	U74996HR2006PTC048214	ARS PULP & PAPERS PRIVATE LIMITED	Director	28/08/2006	28/08/2006	-	Active	NO
3	U21098HR2010PTC041710	AGPS ENTERPRISES PRIVATE LIMITED	Director	04/09/2012	16/12/2010	-	Active	NO

Name :

Mr. Ashish Gupta

Designation :

Director

Address :

B-26, 1st Floor, Satyawati Colony,, Ashok Vihar-III, Delhi - 110052, India

Date of Birth/Age :

22.02.1974

Date of Appointment :

10.01.2006

DIN No.:

00023146

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	U21017HR2006PTC041196	RATIONAL BUSINESS CORPORATION PRIVATE LIMITED	Director	10/01/2006	10/01/2006	-	Active	NO
2	U74996HR2006PTC048214	ARS PULP & PAPERS PRIVATE LIMITED	Director	28/08/2006	28/08/2006	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Niraj Kumar
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2014

Names of Shareholders (Equity Shares)	No. of Shares
Ashish Gupta	29800
Ashok Gupta	29800
Anubha Gupta	55000
Total	114600

Names of Shareholders (Preference Shares)	No. of Shares
Anubha Gupta	487500
Total	487500

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2014

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Office Stationery and Allied products and Computer Peripherals and Hardware.

Products :

• Office Stationery
• Allied products
• Computer Peripherals
• Hardware

Product Description	Item Code No.
Paper	84193200

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Countries :

USA

Imports :

Products :

Raw Material

Countries :

• Germany
• China
• USA

Terms :

Selling :

Cheque and Credit (30 Days)

Purchasing :

Cheque and Credit (30 Days)

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

150 (Approximately)

Bankers :

Bank Name	HDFC Bank Limited
Branch	New Delhi, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Cash / Credit = Rs. 130.000 Million
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

• Standard Chartered Bank, 10, Parliament Branch, New Delhi - 110001, India / Total Rs. 150.000 Million

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Rupee term loan from bank	14.919	17.641
Short-term borrowings
Working capital loans from banks	250.745	249.009
Total	265.666	257.650

Financial Institution :	Indusind Bank Limited, Dr. Gopal Das Bhawan, 28 Barakhamba Road, New Delhi- 110001, India
Auditors :
Name :	Pankaj Jindal And Company Chartered Accountants
Address :	11/10, IInd Floor, Shakti Nagar, Delhi – 110007, Delhi, India
PAN N Income-tax PAN of auditor or auditor's firm :	ABVPJ5532A
Memberships :	Not Available
Collaborators :	Not Available
Entries where Control Exist – Subsidy:	AGPS Enterprises Private Limited U21098HR2010PTC041710
Entities where Key Management Personnel and their relatives exercise significant influence:	Desmat Technologies ARS Pulp and Paper Private Limited

CAPITAL STRUCTURE

As on 30.09.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Million
700000	Preference Shares	Rs.100/- each	Rs.70.000 Million
	Total		Rs.80.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
114600	Equity Shares	Rs.10/- each	Rs.1.146 Million
487500	Preference Shares	Rs.100/- each	Rs.48.750 Million
	Total		Rs.49.896 Million

FINANCIAL DATA

[all figures are in Rupees Million]

FINANCIAL DETAILS FILE ATTACHED

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	53.396	49.896	49.896
Reserves & Surplus	107.409	102.139	108.209
Net worth	160.805	152.035	158.105
long-term borrowings	122.175	100.939	96.575
Short term borrowings	243.365	249.009	250.746
Current Maturities Of Long-Term Debts	15.825	0.888	5.266
Total borrowings	381.365	350.836	352.587
Debt/Equity ratio	2.372	2.308	2.230

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1389.108	1635.722	1698.164
		17.753	3.817

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	1389.108	1635.722	1698.164
Profit	6.936	2.996	7.824
	0.50%	0.18%	0.46%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

NOTE: Registered office of the company has been shifted from n-10 Satyavati Nagardelhi 52, Delhi – 52, India to the present address w.e.f. 20.08.2010

PERFORMANCE OF THE COMPANY

Company’s overall Revenue/Income generated from business operations stood at Rs. 1698.918 Million for the current year as compared to Rs.1644.228 Million achieved during the previous year. The Company has earned the net profit after tax and adjustment to Rs. 7.824 Million for the year as compared to Rs. 2.996 Million earned during the previous year.

The Company has adequate funds and arrangements to meet its secured as well as un-secured liabilities. Further, they have successfully, efficiently and effectively smoothen the working and business overall operations of the Company and to maintain adequate growth prospects for the staff members, its prospective employees and other managerial personnel and to retain them and further to build transparency in their business affairs/upcoming prospective assignments has taken all the initiatives to reach their goals.

UNSECURED LOAN

Unsecured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Loans and Advances from related parties	76.939	78.495
Other loans and advances	4.718	4.803
Total	81.657	83.298

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10583278	05/06/2015	7,500,000.00	STANDARD CHARTERED BANK	10, PARLIAMENT STREET, NEW DELHI - 110001,  INDIA	C60420809
2	10451870	09/06/2015 *	200,000,000.00	HDFC BANK LIMITED	HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra - 400013, INDIA	C61648820
3	10304785	08/06/2015 *	427,500,000.00	STANDARD CHARTERED BANK	10, PARLIAMENT STREET, NEW DELHI - 110001,  INDIA	C60424538
4	10306599	08/06/2015 *	427,500,000.00	STANDARD CHARTERED BANK	10, PARLIAMENT STREET, NEW DELHI - 110001,  INDIA	C60426798
5	10298510	30/07/2015 *	225,000,000.00	STANDARD CHARTERED BANK	10, PARLIAMENT STREET, NEW DELHI - 110001,  INDIA	C60610052

FIXED ASSETS

Tangible Assets

• Land
• Buildings
• Factory building
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Motor vehicles
• Office equipment
• Computer equipments

Intangible Assets

• Computer software
• Goodwill
• Goodwill on investments joint ventures

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.66.11
UK Pound	1	Rs.100.51
Euro	1	Rs.70.39

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KIN
Report Prepared by :	SUJ

SCORE & RATING EXPLANATIONS

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