MIRA INFORM REPORT

Report Date :

23.05.2008

IDENTIFICATION DETAILS

Name :	MOHAN FIBRE PRODUCTS LIMITED
Registered Office :	235, Sector – 18 A, Chandigarh – 160018
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	16.10.1987
Com. Reg. No.:	007744
CIN No.: [Company Identification No.]	U25206CH1987PLC007744
TAN No.: [Tax Deduction & Collection Account No.]	PTLM11724G
PAN No.: [Permanent Account No.]	AACCM7732N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacture of Moulded Fibre Packaging to the Fruit, Egg and Catering Industries

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.	Small

Maximum Credit Limit :	USD 246540
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Financial position is below average. Payments are reported as slow but correct. The company maintains steady business. It can be considered for small to mediocre business dealings at usual trade terms and conditions. Medium and large sized delays can be considered assure adequate security.

LOCATIONS

Registered Office :	235, Sector – 18 A, Chandigarh – 160018, India
Tel. No.:	91-1762-280259/ 60/ 2724469
Fax No.:	91-1762-2575043
E-Mail :	info@mohanfibre.com mkumar@mohanfibre.com
Website :	http://www.mohanfibre.com
Factory :	VPO: Mubarakpur, Derabassi, Patilala Mohali- 140507, Punjab, India
Tel. No.:	91-1762-282438/ 280259/ 280260
Fax No.:	91-1762-282438/ 2575043
E-Mail :	mkumar@mohanfibre.com
Website :	http://www.mohanfibre.com
Area :	20 sq. ft.
Location :	Owned

DIRECTORS

Name :	Mr. P H Vaishnav
Designation :	Director
Address :	81, Sector 10, Chandigarh, Uttranchal, India
Date of Birth/Age :	22.12.1932
Date of Appointment :	20.11.1995
Name :	Mr. Madhukar Malhotra
Designation :	Director
Address :	2228, Sector 21C, Chandigarh, Uttranchal, India
Date of Birth/Age :	14.04.1945
Date of Appointment :	25.08.1990
Name :	Mr. Krishna Kumar
Designation :	Whole Time Director
Address :	235, Sector 18A, Chandigarh – 160018, Uttranchal, India
Date of Birth/Age :	20.03.1937
Date of Appointment :	27.10.1987
Name :	Mr. Munishwar Kumar
Designation :	Director Marketing and Business Development
Address :	115 Sector -6, Panchkula, Haryana, India
Date of Birth/Age :	03.01.1968
Date of Appointment :	27.10.1987
Name :	Mr. Tapishwar Kumar
Designation :	Managing Director
Address :	115 Sector -6, Panchkula, Haryana, India
Date of Birth/Age :	07.07.1933
Date of Appointment :	27.10.1987
Name :	Mr. Mann J S
Designation :	Director and Chairman
Address :	1049, Phase IV, Mohali, Ropar, Punjab, India
Date of Birth/Age :	01.12.1950
Date of Appointment :	27.10.1987
Date of Ceasing :	22.02.2005
Name :	Mr. Singh Sajjan
Designation :	Director
Address :	397, Phase IV, Mohali, Ropar, Punjab, India
Date of Birth/Age :	10.07.1951
Date of Appointment :	04.01.1998
Date of Ceasing :	22.02.2005
Name :	Mr. Ahuja S K
Designation :	Director
Address :	85, Sector 8A, Chandigarh, Uttranchal, India
Date of Birth/Age :	01.12.1960
Date of Appointment :	04.07.2001
Date of Ceasing :	22.02.2005

KEY EXECUTIVES

Name :	Mr. B R Gulati
Designation :	Company Secreatary
Address :	622, Sector – 7, Panchkula, Haryana, India
Date of Birth/Age :	02.05.1956
Date of Appointment :	18.02.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 26.09.2005)

Names of Shareholders	No. of Shares
Mr. Krishna Kumar	106100
Ms. Savita S. Kumar	243300
Mr. Munishwar Kumar	108500
Mrs. Priya Kumar	23500
Mrs. Gauri Chaudhary	16500
Mrs. Enma Popli	16500
Mohan Paper Moulding Private Limited	2102770
Mr. Tapishwar Kumar	142180
Mr. Brijesh Kumar	105580
Mr. Krishna Kumar	10000
Mr. Enma Popli	10000
Dr. Priya H. Kumar	170000
Mr. Mushwar Kumar	116885
Ms. Savita S. Kumar	381885
Mr. Tapishwar Kumar	85200
Mr. Madhu T. Kumar	289000
Mrs. Gauri Chaudhary	70200
Mr. Tapishwar Kumar	70200
Mrs. Enma Kumar	58000
Mrs. Pooja Kumar	37000

(As on 31.03.2007)

Category	Percentage
Bodies Corporate (Not mentioned above)	49.96
Directors or relatives of directors	49.07
Others top fifty shareholders (other than listed above)	0.35
Others	0.62
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacture of Moulded Fibre Packaging to the Fruit, Egg and Catering Industries
Products :	Products Descriptions Paper Pulp Moulded Trays Item Code No. 48237010 · Apple Trays · Egg Trays · Hand Wrapping Machine · Disposable Plates, Bowls and Trays · Consumer Pak Trays · Disposable Medical Trays

GENERAL INFORMATION

No. of Employees :	40
Bankers :	· State Bank of India SCB, Sector 17B, Chandigarh · ICICI Bank Limited Sector 11, Panchkula

Banking Relations :	Satisfactory
Auditors :
Name :	P K Vasudeva and Company Chartered Accountant
Address :	SCO 32-35 Madhya Marg, Sector 8C, Chandigarh – 160008, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5400000	Equity Shares	Rs.10/- each	Rs. 54.000 Millions
60000	Preference Shares	Rs.100/- each	Rs.6.000 Millions
	Total		Rs.60.000 Millions

Issued and Subscribed Capital :

No. of Shares	Type	Value	Amount
4210000	Equity Shares	Rs.10/- each	Rs.42.100Millions
26600	Preference Shares	Rs.50/- each	Rs.1.330 Millions
	Total		Rs.43.430 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
4209100	Equity Shares	Rs.10/- each	Rs.42.091Millions
26600	Preference Shares	Rs.50/- each	Rs.1.330 Millions
	Total		Rs.43.421 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Management remained non-cooperative during current investigation.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		43.421	44.751	46.591
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		18.214	25.349	16.064
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		61.635	70.100	62.655
LOAN FUNDS
1] Secured Loans		32.629	0.504	0.365
2] Unsecured Loans		0.000	0.404	0.764
TOTAL BORROWING		32.629	0.908	1.129
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		94.264	71.008	63.784
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		31.682	31.136	27.320
Capital work-in-progress		11.576	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	45.494	30.348
	Sundry Debtors	0.000	7.464	15.429
	Cash & Bank Balances	0.000	6.907	2.129
	Other Current Assets	74.783	0.191	0.160
	Loans & Advances	2.503	8.158	0.912
Total Current Assets		77.286	68.214	48.978
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.000	21.257	11.695
	Provisions	26.280	7.086	0.819
Total Current Liabilities		26.280	28.343	12.514
Net Current Assets		51.006	39.872	36.464
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		94.264	71.008	63.784

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		113.614	151.530	109.596
Other Income		15.772	1.338	1.300
Total Income		129.386	152.868	110.896
Profit/(Loss) Before Tax		(6.828)	16.412	10.427
Provision for Taxation		0.000	6.322	3.361
Profit/(Loss) After Tax		(6.828)	10.090	7.066
Export Value		NA	0.321	NA
Expenditures :
	Raw Material Consumed	70.266	53.980	41.458
	Purchases made for re-sale	0.000	0.000	0.000
	Consumption of stores and spares parts	0.000	7.372	10.210
	Increase/(Decrease) in Finished Goods	0.000	(16.523)	(18.770)
	Salaries, Wages, Bonus, etc.	4.246	7.982	6.437
	Managerial Remuneration	4.638	3.670	3.012
	Payment to Auditors	0.035	0.035	0.050
	Interest	1.098	0.299	0.243
	Insurance Expenses	0.728	0.831	0.653
	Power & Fuel	0.729	44.628	33.293
	Depreciation & Amortization	7.352	5.728	5.494
	Other Expenditure	47.122	28.454	18.389
Total Expenditure		136.214	136.456	100.469

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	(5.28)	6.60	6.37
Net Profit Margin (PBT/Sales)	(%)	(6.01)	10.83	9.51
Return on Total Assets (PBT/Total Assets}	(%)	(6.27)	16.52	13.67
Return on Investment (ROI) (PBT/Networth)		(0.11)	0.23	0.17
Debt Equity Ratio (Total Liability/Networth)		0.95	0.42	0.22
Current Ratio (Current Asset/Current Liability)		2.94	2.41	3.91

LOCAL AGENCY FURTHER INFORMATION

Form 8:

Corporate identity number (CIN) Foreign company registration number

53-7744

Name of the Company

MOHAN FIBRE PRODUCTS LIMITED

Address

235, Sector – 18A, Chandigarh – 160018, India

This form is for

Creation of Charge

Type of Charge

Hypothecation

Particulars of the charge holder

State Bank of India

SCO No.103-106, Specialised Commercial Branch, Sector 17 B, Chandigarh - 160017, India

Nature or description of the instrument(s) creating or modifying the charge

Agreement of Hypothecation of Goods and Assets

Letter Regarding the grant of individual limits within the overall limit

Date of the instrument creating or modifying the charge

21.06.2006

Amount secured by the charge

Rs.18.000 Millions

Brief particulars of the principal terms and conditions and extent and operation of the charge

Name of the Bank and it branch address	Loan Millions	Rate of Interests
State Bank of India SCO No.103-106, Specialised Commercial Branch, Sector 17 B, Chandigarh - 160017	Rs.18.000 Millions	SBAR Min. 10.75% p.a.

Repayment:

Term Loan of Rs.18.000 Millions will be repaid in 12 Quarterly Installments of Rs.1.500 Millions each Commencing from 1^st April, 2007 On wards.

Short particulars of the property charged (including location of the property)

Plant and Machinery

First Charge over all the fixed assets of the company existing as well as future.

Particular of the present modification

NA

Fixed Assets:

· Land and Site Development

· Building

· Factory

· Non Factory

· Furniture and Fixture

· Plant and Machinery

· Equipment Vehicles

Profile:

Subject is a provider of moulded fibre packaging to the fruit, egg and catering industries. Subject operates from V.P.O. Mubarakpur, just 15 kms from Chandigarh, 250 kms North of New Delhi, the capital of India.

Company is run by a team of entrepreneurs who ventured into the paper pulp moulding industry way back in 1979. Subject started its operation at its new facility in 1990. Company state of the art plant and machinery have been imported from US.

Subject is well reputed and trusted in all the segments in which it competes.

Company is moulding machine produces trays @ 360 trays per minute. All the trays are pressed both on the front as well as the back side to allow for smooth finish.

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.43.15
UK Pound	1	Rs.85.08
Euro	1	Rs.68.10

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		39

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.	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