MIRA INFORM REPORT

Report Date :

06.07.2007

IDENTIFICATION DETAILS

Name :	VAIBHAV PAPER BOARDS PRIVATE LIMITED
Registered Office :	3, Shiley Industrial Estates, V Road, Goregaon (West), Mumbai – 400 062, Maharashtra
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	14.04.1980
Com. Reg. No.:	11-22509
CIN No.: [Company Identification No.]	U21010MH1980PTC022509
TAN No.: [Tax Deduction & Collection Account No.]	MUMV08024C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of M G Kraft Paper.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :	--
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an old and established company having moderate track records. Company’s profitability is under severe pressure. It has some accumulated losses. Payments are reported as slow but correct. The company can be considered normal for small business dealings at usual trade terms and conditions, with slight caution initially.

LOCATIONS

Registered Office :	3, Shiley Industrial Estates, V Road, Goregaon (West), Mumbai-400062, Maharashtra, India
Tel. No.:	91-22-28752280
Fax No.:	91-22-28743477
E-Mail :	kraftpaper@sancharnet.in

DIRECTORS

Name :	Mr. Jinesh F Shah
Designation :	Director
Address :	Amidhara, 1, Oswal Colony, Jamnagar District, Jamnagar-361005, Gujarat
Date of Birth/Age :	11.07.1955
Date of Appointment :	22.05.1995
Name :	Mr. Navin D Malde
Designation :	Director
Name :	Mr. Kapoor D Shah
Designation :	Director
Name :	Mr. Jayanti G Maru
Designation :	Director
Name :	Mr. Chandulal Raichand Shah
Designation :	Director
Address :	Milan, Club Road, Opposite Joly Bunglow, Jamnagar District, Jamnagar-361005, Gujarat
Date of Birth/Age :	24.10.1934
Date of Appointment :	03.08.1995
Name :	Mr. Ramniklal Keshavji Shah
Designation :	Director
Address :	Sonil, Club Road, MIG Colony, Jamnagar-361005, Gujarat
Date of Birth/Age :	10.02.1942
Date of Appointment :	03.08.1995
Name :	Mr. Shantilal D Nagda
Designation :	Director
Address :	401, Gayatri Niwas, Bhagat Singh road, Vile Parle (West), Mumbai-400056, Maharashtra
Date of Birth/Age :	12.04.1953
Date of Appointment :	29.04.2001
Name :	Mr. Nagindas D Panchal
Designation :	Director
Address :	202, Nilkanthvarni Flats, Abhilasha Chokdi, New Sama Road, Vadodara-390008, Gujarat
Date of Birth/Age :	24.09.1952
Date of Appointment :	30.07.2004
Name :	Mr. Jugalkishore N Dharnidharka
Designation :	Director
Name :	Mr. Shyamsunder N Dharnidharka
Designation :	Director
Name :	Mr. Bal Manohar Hiralal Jalan
Designation :	Director
Name :	Mr. Naresh Chandra Shuibhkaran Seksaria
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Mr. Chandrakant H Savla	30000
Mr. Jayantilal G Shah	120000
Jayantilal G Shah (HUF)	20000
Ms. Meena J Shah	60000
Mr. Vishal J Shah	40000
Ms. Dhruti J Shah	15000
Mr. Dilip Shah	100000
Ms. Kirti shah	20000
Mr. Govindji Shah	60000
Govindji Shah (HUF)	60000
Ms. Virmatiben Shah	60000
Mr. Mulji Shah	50000
Ms. Disha Shah	15000
Mr. Ramniklal Shah	130000
Ms. Lilavanti Shah	80000
Mr. Himesh Shah	100000
Mr. Chandulal Shah	40000
Mr. Parth Dodhia	60000
Mr. Nirav Dodhia	100000
Mr. Harshil Dodhia	65000
Ms. Disha Dodhia	45000
Mr. Surendra Sumaria	80000
Ms. Champaben Sumaria	75000
Mr. Deepchand Shah	75000
Mr. Sandeep Shah	80000
Mr. Mehul Nagda	160000
Mr. Chunilal Nagda	160000

As on 31.03.2006

Names of Shareholders	No. of Shares	Percentage of Holding
Directors or their relatives		57.00
Other top 50 shareholders		43.00
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of M G Kraft Paper.

Products :

ITC Code	Product Description
4804.00	Uncoated Kraft Paper

GENERAL INFORMATION

Bankers :

State Bank of India, Vapi Industrial Townsip Branch, Vapi-396195, District Valsad

Facilities :

Secured Loans (As on 31.03.2004):

(Rs. In millions)

Gujarat Industrial Investment Corporation Limited	45.600
Interest accrued and due	11.405
State Bank of India Cash Credit	16.512
Total	73.517

Unsecured Loans

From Directors	6.329
From Shareholders/ Relatives	39.015
Total	45.344

Banking Relations :	Satisfactory
Auditors :
Name :	G V Karkera & Company Chartered Accountants
Address :	18, Rajhans, Char Rasta, GIDC, Vapi-396195, Gujarat, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
3600000	Equity Shares	Rs.10/- each	Rs.36.000 millions
700000	Preference Shares	Rs.10/- each	Rs.7.000 millions
200000	Unclassified Shares	Rs.10/- each	Rs.2.000 millions
	Total		Rs.45.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3100000	Equity Shares	Rs.10/- each	Rs.31.000 millions
700000	Preference Shares	Rs.10/- each	Rs.7.000 millions
	Total		Rs.38.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		38.000	38.000	38.000
2] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(137.546)	(132.946)	(92.666)
NETWORTH		(99.546)	(94.946)	(54.666)
LOAN FUNDS
1] Secured Loans		89.723	82.209	73.517
2] Unsecured Loans		47.750	46.157	45.343
TOTAL BORROWING		137.473	128.366	118.860
TOTAL		37.927	33.420	64.194
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		71.615	76.501	79.714
Capital work-in-progress		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.794	11.528	11.001
	Sundry Debtors	38.120	27.596	45.420
	Cash & Bank Balances	0.085	1.813	1.514
	Loans & Advances	4.743	5.997	3.386
Total Current Assets		58.742	46.934	61.321
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	88.717	85.804	76.785
	Provisions	3.713	4.261	0.600
Total Current Liabilities		92.430	90.065	77.385
Net Current Assets		(33.688)	(43.131)	(16.064)
MISCELLANEOUS EXPENSES		0.000	0.050	0.544
TOTAL		37.927	33.420	64.194

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
Sales Turnover		242.413	242.837	261.209
Other Income		0.000	0.000	4.358
Total Income		242.413	242.837	265.547
Profit/(Loss) Before Tax		(4.560)	(40.297)	(4.541)
Provision for Taxation		0.000	0.000	0.000
Profit/(Loss) After Tax		(4.560)	(40.297)	(4.541)
Expenditures :
	Manufacturing Expenses	NA	NA	43.084
	Administrative Expenses	NA	NA	13.261
	Raw Material Consumed	NA	NA	190.224
	Depreciation & Amortization	5.399	5.269	5.197
	Interest	15.191	15.142	0.000
	Other Expenditure	226.383	262.723	18.341
Total Expenditure		246.973	283.134	270.107

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	(1.88)	(16.59)	(1.71)
Net Profit Margin (PBT/Sales)	(%)	(1.88)	(16.59)	(1.71)
Return on Total Assets (PBT/Total Assets}	(%)	(3.50)	(32.64)	(3.22)
Return on Investment (ROI) (PBT/Networth)		(0.04)	(0.42)	(0.08)
Debt Equity Ratio (Total Liability/Networth)		(2.31)	(2.30)	(3.59)
Current Ratio (Current Asset/Current Liability)		0.63	0.52	0.79

LOCAL AGENCY FURTHER INFORMATION

Form 8 Particular for creation or modification of charges

Name of the company	VAIBHAV PAPER AND BOARDS PRIVATE LIMITED (hereinafter referred to as the company)
Presented By	Director
1) Date and description of instrument creating the change	09.03.1998 Deed of extension of equitable mortgage by way of second charge executed by the company in favour of state bank of India (hereinafter referred to as the bank)
2) Amount secured by the charge/amount owing on the securities of charge	The working capital facilities of Rs..32.500 millions granted/ agreed to be granted by the bank to the company together with interest, additional interests, commitment charges, premia on payment or on redemption, costs, charges expenses and all other moneys payable by the company to the bank.
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	The company’s land and building the whole of the moveable properties of the company including its moveable plant and machinery, machinery spares, tools and accessories and other moveable, both present and future pertaining to the project situated at Plot No.1810/1811, 3^rd Phase, Vapi, notified Industrial area, village Chhiri, Taluka Paradi, District Valdsad in the state of Gujarat whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security be brought into or upon or be stored or be in or about other company’s factories, premises and godowns or wherever else the same may be r be held by any party to the order or disposition of the company or in the course of transit or on high seas or on order, or delivery, howsoever and wheresoever in the possession of the company and either by way of substitution or addition.
4) Gist of the terms and conditions and extent and operation of the charge.	The charge operates as security, inter alia, for the due prepayment by the company to the bank of its working capital facilities aggregating of Rs.32.500 millions together with interest, additional interest, commitment charges, premia on prepayment or ion redemption, costs, charges, expenses and all other moneys payable by the company to the bank. The charge in favour of bank is subject to the first charge of Gujarat Industrial Investment Corporation Limited (GIIC) for securing its term loan and all other moneys payable by the company to GIIC under its loan agreement with GIIC.
5) Name and Address and description of the person entitled to the charge.	State Bank of India, Vapi Industrial Townsip Branch, Vapi-396195, District Valsad
6) Date and brief description of instrument modifying the charge	Nil
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Nil

Fixed Assets :

v Buildings

v Factory Buildings

v Office Buildings

v Staff Quarters

v Plant and Machinery

v Computer System

v Furniture and fixtures

v Vehicles

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 records 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] 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.40.46
UK Pound	1	Rs.81.55
Euro	1	Rs.55.09

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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