MIRA INFORM REPORT

Report Date :

25.02.2011

Note : The Correct Name of the Company is RAJALAKSHMI PAPER MILLS PRIVATE LIMITED.

IDENTIFICATION DETAILS

Name :	RAJALAKSHMI PAPER MILLS PRIVATE LIMITED
Registered Office :	1^st Floor, No.132, Venkatesa Mills Post Udumalpet – 642128, Tamil Nadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	05.08.1978
Com. Reg. No.:	000814
CIN No.: [Company Identification No.]	U21012TZ1978PTC000814
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Printing and Writing Paper and M.G. Kraft Paper

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 324000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal 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 – 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 DECLINED BY

Name :	Mr. Rajgopal
Designation :	Accounts Department
Contact No.:	91-9443311544
Date :	24.02.2011

LOCATIONS

Registered Office :	1^st Floor, No.132, Venkatesa Mills Post Udumalpet – 642128, Tamil Nadu
Tel. No.:	91-4252-252286
Fax No.:	91-4252-252287
E-Mail :	gmf@rlpmolls.com
Website :	http://www.rlpmills.com
Factory I and II :	Swaminathapuram, Pushpathhur Village, Palani Taluk, India
Administrative Office :	Palani Road, Madathukulam – 642113, India

DIRECTORS

AS ON 27.08.2010

Name :	Mr. Venkatasubba Naidu Genguswamu
Designation :	Chairman
Address :	Venkata Nilayam, Venkatesa Mills Post, UdumaLPET Tirupur, Tamilnadu – 642128, India
Date of Birth/Age :	04.10.1931
Date of Appointment :	05.08.1978
Name :	Mr. Raveenran Genguswamy
Designation :	Director
Address :	Venkata Nilayam, Venkatesa Mills Post, UdumaLPET Tirupur, Tamilnadu – 642128, India
Date of Birth/Age :	17.01.1959
Date of Appointment :	05.08.1978
Name :	Mr. Naidu Govindaswamu Rajalakshmi
Designation :	Director
Address :	Venkata Nilayam, Venkatesa Mills Post, UdumaLPET Tirupur, Tamilnadu – 642128, India
Date of Birth/Age :	05.11.1934
Date of Appointment :	05.08.1978
Name :	Mr. Genguswamy Raueendran Vishnuvardhan
Designation :	Director
Address :	133, Venkata Nilayam Venkatesa Mills PD, Udumalpet, Tirupur – 642128, Tamilnadu, India
Date of Birth/Age :	16.11.1983
Date of Appointment :	18.01.2007
Name :	Mr. Genguswamy Raveendran Harshavardhan
Designation :	Director
Address :	Venkata Nilayam, Venkatesa Mills Post, UdumaLPET Tirupur, Tamilnadu – 642128, India
Date of Birth/Age :	14.07.1987
Date of Appointment :	01.06.2010
Name :	Mr. Ramakrishnan Velayudhaswamy Naidu
Designation :	Director
Address :	36, Dharapuram Road, Udumalpet, Tirupur – 642126, Tamilnadu, India
Date of Birth/Age :	12.04.1949
Date of Appointment :	28.03.2002
Name :	Mr. Nallamuthu Arumuga Gounder
Designation :	Director
Address :	12, Kalpana Road, Udumalpet, Tirupur – 642126, Tamilnadu, India
Date of Birth/Age :	20.06.1935
Date of Appointment :	07.01.2006
Name :	Mr. Appasamy Naidu Srinivasan
Designation :	Director
Address :	Door No. 145 A, Swaminathapuram Pushpathur Palani, Pushpathur – 624618, Tamilnadu, India
Date of Birth / Age :	09.03.1939
Date of Appointment :	13.02.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.08.2010

Names of Shareholders	No. of Shares
V. Genguswamy	7402
G. Rajalakshmi	2650
G. Raveendran	6700
G. Kathurisamy Naicker	250
S. Lokaraju	125
S. Srinivasan	125
V. Jayaraman	500
O.M.SP.L.M.AL Alagappan	500
Thomas Kunnath	250
K.P. Baby Alis Antony	250
T. Krishnasamy	250
K.P. Amon	374
K.C. Pavoo	187
K.A. Paul	187
Mangllal Rathi	125
Kamalnarayan Rathi	125
G Natraj Naidu	250
M. Jayathi	250
Pothuri Vankatraman	250
S. Muthuraja	250
N. Gunasundari	250
S. Kasi Raja	250
S.P. Valliammai	250
P.L. Natarajan	250
Total	22000

AS ON 27.08.2010

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	0.00
Bodies corporate	0.00
Directors or relatives of Directors	76.00
Other top fifty shareholders	24.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Printing and Writing Paper and M.G. Kraft Paper

Products :

Item Code No.	Product Description
4802-6009	Printing And Writing Paper
4804-4200	M.G. Kraft Paper

Production Status : (As on 31.03.2010)

Particulars		Factory I	Factory II
Installed Capacity	M.Tons	6000	5000
Production	M.Tons	6836	4925

GENERAL INFORMATION

No. of Employees :

Not Divulged by the management

Bankers :

Indian Overseas Bank, Pollachi Road, Udumalpet, Tamil Nadu – 642126, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Banks
Term Loan	49.723	60.776
Short Term Loan	12.330	--
Working Capital Loan	27.555	18.957
Hire Purchase Loan	2.622	2.654
Total	92.230	82.387
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Trade Deposits	2.397	2.447
Interest accrued and due on deposits	1.626	1.423
Total	4.023	3.870

Banking Relations :	--
Auditors :
Name :	M J Vijayaraagavan Chartered Accountant
Address :	M.S. Jagannathan And Viswanathan, No.6. D.B. Road, R.S. Puram, Coimbatore – 641002, Tamilnadu, India
Associates Companies :	Amaravati Sri Venkatsa Paper Mills Limited Vishnuvardhan Paper Mills Private Limited V.G. Paper And Boards Limited The Sri Venkatesa Mills Limited V.G. Textiles Private Limited Nithya Finance Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
22000	Equity Shares	Rs.100/- each	Rs. 2.200 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22000	Equity Shares	Rs.100/- each	Rs. 2.200 Millions

AS ON : 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
99000	Equity Shares	Rs.100/- each	Rs. 9.900 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
22000	Equity Shares	Rs.100/- each	Rs. 2.200 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		2.200	2.200	2.200
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		78.879	75.882	70.862
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		81.079	78.082	73.062
LOAN FUNDS
1] Secured Loans		92.230	82.387	70.276
2] Unsecured Loans		4.023	3.870	3.578
TOTAL BORROWING		96.253	86.257	73.854
DEFERRED TAX LIABILITIES		11.841	7.393	5.161
TOTAL		189.173	171.732	152.077
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		146.935	152.470	48.980
Capital work-in-progress		10.247	0.000	37.266
INVESTMENT		3.290	3.292	3.290
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	60.123	44.546	61.697
	Sundry Debtors	38.100	34.176	39.701
	Cash & Bank Balances	7.014	9.264	20.989
	Other Current Assets	3.666	2.092	4.481
	Loans & Advances	41.181	31.109	50.101
Total Current Assets		150.084	121.187	176.969
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	82.364	72.081	99.814
	Other Current Liabilities	19.806	18.254
	Provisions	19.213	14.882	14.614
Total Current Liabilities		121.383	105.217	114.428
Net Current Assets		28.701	15.970	62.541
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		189.173	171.732	153.077

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	393.180	NA	NA
		Other Income
		TOTAL (A)	393.180	NA	NA
Less	EXPENSES
		Office Expenses
		Administrative Expenses	356.805	NA	NA
		Advertising Expenses
		TOTAL (B)	356.805	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		36.375	21.857	23.636
Less	FINANCIAL EXPENSES (D)		11.835	4.565	3.645
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		24.540	17.292	19.991
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.608	6.368	5.171
	PROFIT BEFORE TAX (E-F) (G)		13.932	10.924	14.820
Less	TAX (I)		9.391	2.127	6.864
	PROFIT AFTER TAX (G-I) (J)		4.541	8.797	7.956
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.382	1.362	1.234
Less	APPROPRIATIONS
		Transfer to General Reserve	3.000	5.000	7.500
		Dividend	1.320	1.320	1.100
		Tax on Dividend	0.224	0.224	0.187
	BALANCE CARRIED TO THE B/S		1.379	1.382	1.362
	EARNINGS IN FOREIGN CURRENCY
		Direct Export	73.381	48.244	NA
		Merchandise Export	4.034	9.411	NA
	TOTAL EARNINGS		77.415	57.655	NA
	IMPORTS
		Raw Materials	51.124	54.698	NA
		Stores & Spares	0.787	0.840	NA
		Capital Goods	0.000	0.485	NA
		Others	1.288	0.065	NA
	TOTAL IMPORTS		53.199	56.088	NA
	Earnings Per Share (Rs.)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.15	--	--
Net Profit Margin (PBT/Sales)	(%)	3.54	--	--
Return on Total Assets (PBT/Total Assets}	(%)	4.69	3.99	9.06
Return on Investment (ROI) (PBT/Networth)		0.17	0.13	0.20
Debt Equity Ratio (Total Liability/Networth)		2.68	1.42	2.57
Current Ratio (Current Asset/Current Liability)		1.23	1.15	1.54

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details :

(Rs. In Millions )

Particulars	31.03.2010	31.03.2009	31.03.2008
For Purchases
- Due to small and Medium Enterprises	--	--	NA
- Due to other than small and Medium Enterprises	82.364	72.081	NA

REVIEW OF PERFORMANCE :

The production and sales figures for the year are as follows :

Particulars	31.03.2010		31.03.2009
	Factory I	Factory II	Factory I	Factory II
Production (Qty. in M.T.)	6836	4925	6966	5026
Sales (Qty. in M.T.)	6865	4904	7922	5343
Value (Rupees In Millions)	215.503	132.668	257.943	138.867

Future Prospects :

Inspite of unprecedented crises in the availability of electricity and recession they had, the company has witnessed an increase of profit. With the economy back to robust growth they feel that it is time for the company to expand operation. One area they have identified is packaging, as manufacturing shifts from the western to the emerging markets, they feel there would be an immense scope in this sector which the company can tap. This year they hope to plan and start the packaging division.

Fixed Assets :

• Land
• Buildings
• Machinery
• Electric Machinery
• Co-Generation plant
• Wind Mill
• Computer
• Furniture and Office Equipments
• Motor Vehicles
• Agricultural Equipments

Form : 8

Corporate identity number of the company	U21012TZ1978PTC000814
Name of the company	RAJALAKSHMI PAPER MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Nithya Nilayamno132 Palaniroad, Sv Mills Post Udumalpet, Tamil Nadu, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Others
Particular of charge holder	Indian Overseas Bank, Pollachi Road, Udumalpet, Tamil Nadu – 642126, India
Nature of instrument creating charge	Letter of Hypothecation (for securing machineries/ vehicles / goods / book debts) Dated 15/03/2010.
Date of instrument Creating the charge	15/03/2010
Amount secured by the charge	Rs. 141.600 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest : CC: BPLR+0.75% Presently 12.75% TL : BPLR+1.25% Presently 13.25% IDDBP/FDDBP-BPLR+0.75% Presently 12.75% Terms of repayment : CC: Repayable on Demand. Term Loan repayable in 72 equal monthly installments. Margin : OCC Stocks 25% Receivables 50% LG 25%. TL Machinery 25% TL Building 40%. Extent and operation of the charge : First charge on the entire fixed assets and movable properties of the company( existing and future) ( except properties at Courtallam and Chennai. Other : Total limits of Rs. 141.600 millions consists of CC(H) Rs.27.000 millions, IDDBP / FDDBP Rs.10.000 millions. LC Rs. 25.000 millions, LG Rs. 2.500 millions, TL I Rs. 46.300 millions , TL II Rs.20.000 millions and TL III 10.800 millions
Short particulars of the property charged (Including location of the property)	Stock of Raw Materials, stock in process , finished goods , Stores and spares Book Debts / receivables and other current assets. Document of title to goods / accepted hundies Assets created out of Term Loans and plant and machineries at Pushpathur village in Palani Taluk under GSNO: 471, 476/1,477/1, 467/2 ,477/2, 479/2, 460,479/3,470,480/2.477/3,500, 456/1 ( 52.63 acres)
Date of instrument modifying the charge	12/03/2010
Particulars of the present modification	The total limits enhanced from Rs 125.300 millions to Rs. 141.600 millions (CC RS 27.000 millions, IDDBP/FDDBP Rs. 10.000 millions, LC (I and F RS 25.000 millions, LG Rs. 2.500 millions, TL RS. 46.300 millions TL RS. 20.000 millions and Fresh TL RS 10.800 millions) is secured by Hypothecation of stock in trade and plant and machinery of the company.

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. 45.37
UK Pound	1	Rs. 73.54
Euro	1	Rs. 62.39

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		49

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.