MIRA INFORM REPORT

Report Date :

01.04.2011

Note : The Correct name of the company is RADHESHYAM PAPER MILLS PRIVATE LIMITED

IDENTIFICATION DETAILS

Name :	RADHESHYAM PAPER MILLS PRIVATE LIMITED
Registered Office :	Survey No.12, Lilapar Road, Village Lilapar, Tal Morbi, Dist Rajkot – 363641, Gujarat
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	01.12.2004
Com. Reg. No.:	045072
CIN No.: [Company Identification No.]	U21010GJ2004PTC045072
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader and Importer of paper scraps, paper hardboard sheets, craft papers across India.

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 40000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The company has successful in wiping of the losses of previous year. Trade relations are reported as fair. Business is active. Payments are reported to be slow. 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.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Sunil
Designation :	Chief Executive Officer
Contact No.:	91-9825343288
Date :	31.03.2011
Name :	Mr. Ashwin Patel
Designation :	Chief Executive Officer
Date :	91-9825421477

LOCATIONS

Registered Office /Factory :	Survey No.12, Lilapar Road, Village Lilapar, Tal Morbi, Dist Rajkot – 363641, Gujarat, India
Tel. No.:	91-2822-221106 / 222905 / 221135
Mobile No.:	91-9825343288 (Mr. Sunil ) 91-9825421477 (Mr. Ashwin Patel)
E-Mail :	radhe-paper@yahoo.com
Area :	18 Vigha
Location :	Owned

DIRECTORS

AS ON 30.09.2009

Name :	Mr. Laljibhai Ratilal Adroja
Designation :	Director
Address :	Umiya Apartment, Kalika Plot, Morbi – 363641, Gujarat, India
Date of Appointment :	01.12.2004
Name :	Mr. Ranchodbhai Sunilkumar Patel
Designation :	Director
Address :	St. Ranakpar, Tal Halved, District Surendranagar, Gujarat, India
Date of Birth/Age :	29.06.1983
Date of Appointment :	01.12.2004
Name :	Mr. Chandulal Ashvinbhai Patel
Designation :	Director
Address :	Darbar Naka, Halved, District Sundernagar, Gujarat, India
Date of Birth/Age :	15.09.1977
Date of Appointment :	01.12.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2009

Names of Shareholders	No. of Shares
Ratilal Laljibhai Adroja	54000
Sunilkumar Ranchhodbhai Patel	63000
Ashvinbhai Chandulal Pate!	137000
Chandulal Dayabhai Patel	73200
Laxmanbhai Bhanjibhai Patel	56800
Rashnxiben Dharmendrabhai	150000
Govindbhai Meghjibhai	80000
Jitendrabbai Chaudulul Patel	29000
Chetanbhai Ranehhodbhai	2500
Manila! Narayanbhai Patel	2500
Keshabhai Govindbhai Patel	25000
Sandipbhai Karsanbhai Patel	2500
Mineshbhai Dhanjibhai Patel	22500
KanjibhaiDhanjibhaiPatel	22500
Babubhai Meghjibhai Patel	25000
Karshanbhai Lajjibhai Patel	11800
Ranchhodbhai La!jibhai Patel	26900
Sukhdevbhai Laljibhai Patel	58200
Ansoyaben Ranchhodbhai Patel	29300
Ranjanbhai Suklidevbhai Patel	1900
Muktaben Karshanbhai Patel	31800
Vasudevbhai Harjibhai Patel	1700
Vajiben La!jibhai Patel	1500
Nanjibhai Devsibhai Patel	3600
Jivrajbhai Devsibhai Patel	24200
Vijyaben Lajibhai Patel	25000
Parshottambhai Gandubhai	10000
Haribhai Virjibhai	25000
Total	996400

AS ON 30.09.2009

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Trader and Importer of paper scraps, paper hardboard sheets, craft papers across India.
Imports :
Products :	Raw Material – Paper Scrap
Countries :	USA UK Dubai
Terms :
Selling :	Cash, Credit (30 days)
Purchasing :	Cash, Credit (30 days)

PRODUCTION STATUS (AS ON 31.03.2009)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Craft Paper	MTS	NA	NA	10059.276

GENERAL INFORMATION

Suppliers :

• Sujata Packaging
• Blmal Packaging
• Raval Enterprise
• Perfect Packaers-Wadhwan
• Radhe Packaging Indus.
• Sameer Packaging
• Rajkot Packaging
• Perfect Pack –Su Nagar
• Bhagvati Industries
• Radheshyam Packaging Ind.
• Vlkas Paper Agency
• Hind Enterprise
• Kraft Tech Industries
• Yogi Traders
• Shalimar Packaging
• Maakrupa Packers

Customers :

• Mangalam Trader
• Bonbaywala Brothers
• Rubeena Scrap Traders
• Shreeyade Papers
• Ramdev Plastic
• Mohammed Enterprise
• Shyam Paper Bag
• Shabbir Brothers
• Shrl Krishna Sales Corp.
• Leemram Tarachand
• Sunshine Paper Trading Company
• Shri Harl Krishna Enterprise
• Amber Gum Industries
• Sunrise Scrap Traders
• Manlsh Scrap Traders
• Wholesalers
• Retailers
• Box Manufacturing Companies

No. of Employees :

40 (Approximately)

Bankers :

• HDFC Bank, Morbi

• SBI Bank, Morbi
• ICICI Bank, Morbi
• State Bank Of Saurashtra, Main Branch, Morbi - 363641, Gujarat, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
SBI SSI Branch C/C A/c Against Hypothecation of Stock of the company	3.572	2.868
SBI SSI Branch Book Debts A/c Against Hypothecation of Book Debts	3.253	5.000
HDFC Bank Accent – I Car Loan A/c Against Hypothecation of Accent Car	0.209	0.000
HDFC Bank Accent – II Car Loan A/c Against Hypothecation of Accent Car II	0.209	0.000
Total	7.243	7.868
Unsecured Loan	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
From Director	1.562	1.410
From Shareholders	4.255	3.934
From Relatives	0.000	0.000
Total	5.818	5.344

Note : Have CC of Rs. 8.000 millions with SBI Which will be transferred to ICICI in April 2011 with Rs. 15.000 millions

Banking Relations :	--
Auditors :
Name :	V.N. Sitapara and Associates Chartered Accountant
Address :	Ram Chowk, Savsar Plot Main Road, Morbi – 363641, Gujarat, India

CAPITAL STRUCTURE

AS ON 30.09.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
996400	Equity Shares	Rs.10/- each	Rs.9.964 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		9.964	9.964	9.964
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.145	0.000	3.257
4] (Accumulated Losses)		0.000	(3.121)	0.000
NETWORTH		10.109	6.843	13.221
LOAN FUNDS
1] Secured Loans		7.243	7.868	9.376
2] Unsecured Loans		5.818	5.344	5.050
TOTAL BORROWING		13.061	13.212	14.426
DEFERRED TAX LIABILITIES		0.332	0.323	0.321
TOTAL		23.502	20.378	27.968
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.153	16.423	17.481
Capital work-in-progress		0.000	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	8.398	11.962	4.937
	Sundry Debtors	23.207	9.296	15.380
	Cash & Bank Balances	0.179	0.099	0.719
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.750	3.464	3.960
Total Current Assets		35.534	24.821	24.996
Less : CURRENT LIABILITIES & PROVISIONS
	Other Current Liabilities	1.183	2.099	0.750
	Sundry Creditors	24.601	17.597	11.796
	Provisions	2.474	1.317	2.184
Total Current Liabilities		28.258	21.013	14.730
Net Current Assets		7.276	3.808	10.266
MISCELLANEOUS EXPENSES		0.073	0.147	0.221
TOTAL		23.502	20.378	27.968

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	154.140	51.034	85.359
		Other Income		0.168	0.213
		TOTAL (A)	154.140	51.202	85.572
Less	EXPENSES
		Raw material Consumed		30.194	52.267
		Stores, Spares Packing Materials		0.027	0.059
		Power and Fuel Expenses		18.853	21.068
		Employee Emoluments		1.629	1.697
		Other Manufacturing Expenses		2.071	3.708
		General Administrative Expenses		0.726	0.745
		Increase/Decrease in stock		0.088	(0.120)
		TOTAL (B)	148.145	53.588	79.424
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			(2.386)	6.148
Less	FINANCIAL EXPENSES (D)			1.607	2.052
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.995	(3.993)	4.096
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.278	2.386	2.565
	PROFIT BEFORE TAX (E-F) (G)		3.717	(6.379)	1.531
Less	TAX (I)		0.450	0.004	0.462
	PROFIT AFTER TAX (G-I) (J)		3.267	(6.383)	1.069
	Earnings Per Share (Rs.)		3.27	(6.40)	1.07

Particulars	31.03.2010
Sales Turnover (Approximately)	180.000

Expected Sales (2010-2011) : Rs. 230.000 millions

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	2.11	(12.46)	1.24
Net Profit Margin (PBT/Sales)	(%)	2.41	(12.45)	1.79
Return on Total Assets (PBT/Total Assets}	(%)	7.19	(15.46)	3.60
Return on Investment (ROI) (PBT/Networth)		0.36	0.93	0.11
Debt Equity Ratio (Total Liability/Networth)		2.79	5.00	1.11
Current Ratio (Current Asset/Current Liability)		1.25	3.07	1.69

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details :

(Rs. In Millions)

Particulars	31.03.2009	31.03.2008	31.03.2007
Creditors for Capital Expenditure	0.313	1.237	0.927
Creditors For Goods	23.429	15.655	10.328
Creditors For Expenses	0.859	0.705	0.541
Total	24.601	17.597	11.796

FORM : 8

Corporate identity number of the company	U21010GJ2004PTC045072
Name of the company	RADHESHYAM PAPER MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No 12 Lilapar Roadvill Kilapar, Tal Morbi Dist Rajkot - 363641, Gujarat, India
This form is for	Modification of charge
Type of charge	Immovable property
Particular of charge holder	State Bank Of Saurashtra, Main Branch, Morbi - 363641, Gujarat, India
Nature of instrument creating charge	Confirmatory Letter dated 21-02-2008
Date of instrument Creating the charge	21/02/2008
Amount secured by the charge	Rs. 275.600 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : As prescribed by the Bank Terms of repayment : As prescribed by the Bank Margin : As prescribed by the Bank Extent and operation of the charge : Charge will operate as first and exclusive charge in favour of the Bank till due repayment of loan, interest and any other charges due on it. Other : Present Limit of loan granted to Max Granito Pvt. Ltd. 1.Cash Credit (Hypo)/ ODBD) Rs. 70.000 millions 2. MTL-1 Rs. 100.000 millions 3. MTL-2 Rs. 70.000 millions 4. LC (Regular) Rs. 20.000 millions LC One time sub-limit Rs. 51.200 millions 5. BG Rs. 15.600 millions
Short particulars of the property charged (Including location of the property)	Equitable Mortgage of company's immovable property being factory land and building of total Ac 7.0965 of N.A. land at Survey No. 12 situated at Lilapar, Morbi in the name of company.
Date of instrument modifying the charge	08/02/2007
Particulars of the present modification	Charge has been modified in respect of Corporate Guarantee given to Max Granito Private Limited by grant fresh MTL-2 of Rs. 70.000 millions, increase in limit of C.C. from Rs. 40.000 millions to Rs. 70.000 millions, increase in LC limit from Rs. 10.000 millions to 20.000 millions, increase in Bank guarantee from Rs. 9.600 millions to Rs. 15.600 millions, no change in MTL-1 of Rs. 100.000 millions Hence total charge is modified from Rs. 159.600 millions to Rs. 275.600 millions.

Fixed Assets :

• Factory Building
• Plant and Machinery
• Electric Installation
• Computer
• Office Building
• Motor Car Accent

Trade References :

Max Packaging – Morbi

Jyoti Packaging – Metoda

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. 44.65
UK Pound	1	Rs. 71.93
Euro	1	Rs. 63.24

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
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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
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.