MIRA INFORM REPORT

Report Date :

13.06.2011

IDENTIFICATION DETAILS

Name :	FAKIRSONS PAPCHEM PRIVATE LIMITED
Formerly Known As :	ROYAL TOUCH HYGIENE PRODUCTS PRIVATE LIMITED
Registered Office :	302, Dev Arc, Opposite Iscon Circle, S.G Highway, Satellite, Ahmedabad - 380 052, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	17.06.1992
Com. Reg. No.:	04-017833
Capital Investment / Paid-up Capital :	Rs.1.437 millions
CIN No.: [Company Identification No.]	U24231GJ1992PTC017833
Legal Form :	Private Limited Liability Company
Line of Business :	Distributor, Exporter and Importer of Paper and Chemicals.
No. of Employees :	30 Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 58500
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an 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 PARTED BY

Name :	Mr. Manoj
Designation :	Director
Contact No.:	91-9374936524
Date :	11.06.2011

LOCATIONS

Registered Office :	302, Dev Arc, Opposite Iscon Circle, S.G Highway, Satellite, Ahmedabad - 380 052, Gujarat, India
Tel. No.:	91-79-40087171
Mobile No.:	91-9374936524 (Mr. Manoj Gupta)
Fax No.:	91-79-40087172
E-Mail :	fakirsons2004@yahoo.com info@fakirson.net
Website :	www.fakirsons.net
Area :	3500 Sq. ft.
Location :	Owned

DIRECTORS

(As on 30.09.2010)

Name :	Mr. Mahendra Ratanlal Gupta
Designation :	Director
Address :	A- 4, Ramyakunj Society, Near Kharawala Factory, Isanpura, Ahmedabad- 382443, Gujarat, India
Date of Birth/Age :	01.09.1968
Qualification :	Graduate
Date of Appointment :	16.07.1992
DIN No. :	00927094
Name :	Mr. Manoj R Gupta
Designation :	Director
Address :	A- 4, Ramyakunj Society, Near Kharawala Factory, Isanpura, Ahmedabad- 382443, Gujarat, India
Date of Birth/Age :	26.01.1971
Qualification :	Graduate
Date of Appointment :	01.04.1995
DIN No. :	02007406

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 30.09.2010)

Names of Shareholders	No. of Shares
Mahendra R Gupta	20500
Manoj R Gupta	45150
Mukesh R Gupta	25000
Geetadevi R Gupta	10500
Mamta Mahendra Gupta	10500
Alka Manoj Gupta	10500
Sarika Mukesh Gupta	10100
Kanwarsen Budakia Trust	500
R K Gupta HUF	10500
Mahendra Gupta HUF	100
Manoj Gupta HUF	100
Mukesh Gupta HUF	100
R K Sons Family Trust	100
Total	143650

(As on 30.09.2010)

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Distributor, Exporter and Importer of Paper and Chemicals.
Products :	Various types of Paper and Paper Board · Absorbent Kraft Paper (Recycled, Agro-base, Virgin Wood Pulp) · Printing Base Paper · M. G. White Poster Paper · Writing / Printing Paper · Duplex Board · Low G.S.M. M. G. Kraft Paper · High BF Kraft Paper Chemicals · Melamine · Nigrosine Black (Dyes) · Ultra Flow (Partly Substitute of Phenol) · Formaldehyde 37%.
Exports :
Products :	Paper Chemicals
Countries :	Bangladesh
Imports :
Products :	Paper Chemicals
Countries :	China
Terms :
Selling :	Cash and Credit (30 days / 60 days / 90 days)
Purchasing :	Cash and Credit (30 days / 60 days / 90 days)

GENERAL INFORMATION

Customers :

Distributor

No. of Employees :

30 Approximately

Bankers :

· Canara Bank

Navrangpura Brach, Navrangpura, Ahmedabad – 380 009, Gujarat, India

· Axis Bank Limited

“Kesar Kunj” Krishna Baug Char Rasta, Maninagar, Ahmedabad- 380008, Gujarat, India

· ICICI Bank Limited

· Axis Bank

S.G. Highway Branch, Ahmedabad, Gujarat, India

· Standard Chartered Bank

Facilities :

Secured Loans	As on 31.03.2010) Rs. in millions	(As on 31.03.2009) Rs. in millions
Bank O.D. (Axis Bank channel finance)	0.424	2.619
Canara bank (Buyer’s Credit) (Against Stock)	17.666	0.000
Total	18.090	2.619

Unsecured Loans	As on 31.03.2010) Rs. in millions	(As on 31.03.2009) Rs. in millions
From Directors	0.294	0.290
From Shareholders	27.018	24.170
From Directors’ Relatives and others	0.139	0.120
Inter Corporate Deposit (under Same Mgmt.)	1.500	1.100
Total	28.951	25.680

Banking Relations :	--
Auditors :
Name :	S. V. Agrawal and Company Chartered Accountant
Address :	502, Mangal Murti Complex, Opp. City Gold Cinema, Ashram Road, Ahmedabad – 380 009, Gujarat, India
Tel. No.:	91-79-26582432 / 26583812
PAN No.:	AATPA3597R
Group Company :	(As on 31.03.2009) · Balaji Formline Private Limited, Ahmedabad Activity: Manufacturer of Chemicals · All India Roadway Private Limited, Ahmedabad Activity: Logistics

CAPITAL STRUCTURE

Authorised Capital : (AS on 31.03.2010)

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs.10/- each	Rs.15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
143650	Equity Shares	Rs.10/- each	Rs.1.437 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		1.437	1.437	1.437
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		13.199	10.530	6.194
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		14.636	11.967	7.631
LOAN FUNDS
1] Secured Loans		18.090	2.619	5.222
2] Unsecured Loans		28.951	25.680	17.178
TOTAL BORROWING		47.041	28.299	22.400
DEFERRED TAX LIABILITIES		0.647	0.527	0.340
TOTAL		62.324	40.793	30.371
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.531	6.898	6.883
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.015	0.015	0.015
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.251	8.284	14.310
	Sundry Debtors	38.668	32.784	32.938
	Cash & Bank Balances	3.361	4.523	2.800
	Other Current Assets	4.025	4.025	0.222
	Loans & Advances	9.718	3.371	2.072
Total Current Assets		86.023	52.987	52.342
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	28.637	16.845	28.112
	Other Current Liabilities
	Provisions	1.608	2.262	0.757
Total Current Liabilities		30.245	19.107	28.869
Net Current Assets		55.778	33.880	23.473
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		62.324	40.793	30.371

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income (turnover)	318.462		157.539
		Other Income	NA	323.136	3.087
		Profit / (Loss) from Branch	NA		0.268
		TOTAL	NA	323.136	160.894
Less	EXPENSES
		Trading and Other Expenses	NA	NA	164.366
		Administrative Expenses	NA	NA	6.354
		Increase/(Decrease) in Finished Goods	NA	NA	(11.892)
		TOTAL	NA	319.215 (Including Depreciation)	158.829
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		NA	NA	2.065
Less/ Add	DEPRECIATION/ AMORTISATION		NA	NA	0.453
	PROFIT BEFORE TAX		3.911	3.921	1.612
Less	TAX		1.243	0.122	0.562
	PROFIT AFTER TAX		2.668	3.799	1.050
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	8.006	2.620
Less	Differed Tax Liability		NA	0.000	0.000
	BALANCE CARRIED TO THE B/S		NA	11.805	3.670
	IMPORTS
		Raw Materials	NA	NA	7.063
	TOTAL IMPORTS		NA	NA	7.603
	Earnings Per Share (Rs.)		18.58	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	NA	1.18	0.65
Net Profit Margin (PBT/Sales)	(%)	1.23	NA	1.02
Return on Total Assets (PBT/Total Assets}	(%)	4.23	6.55	2.72
Return on Investment (ROI) (PBT/Networth)		0.27	0.33	0.21
Debt Equity Ratio (Total Liability/Networth)		5.28	3.96	6.72
Current Ratio (Current Asset/Current Liability)		2.84	2.77	1.81

LOCAL AGENCY FURTHER INFORMATION

Note

The Registered Office of the company has been shifted from 207, Vraj Avenue, St. Xaviers, Ladies Hostel, Swastik Char Rasta, Navrangpura, Ahmedabad, Gujarat, India to the present address with effect from 07.07.2007.

Bankers Charges Report as per Registry

Corporate identity number of the company	U24231GJ1992PTC017833
Name of the company	FAKIRSONS PAPCHEM PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	302, Dev Arc, Opposite Iscon Circle, S.G Highway, Satellite, Ahmedabad- 380052, Gujarat, India
This form is for	Modification of charge
Type of charge	· Movable Property (not being pledge) · Others
Particular of charge holder	Canara Bank, Navarngpura Branch, Ahmedabad-380 009, Gujarat, India
Nature of instrument creating charge	Supplemental Common Hypothecation Agreement
Date of instrument Creating the charge	24.03.2011
Amount secured by the charge	Rs.60.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base Rate + 3.50% (ie presently 13% p.a.) (floating) Terms of Repayment Repayable on demand. Margin 25% on stocks 40% on book debts Extent and Operation of the charge The charge on assets of the company will remain in force in favour of bank until total limit of Rs.60.000 millions with interest as well as all other charged debited by the bank has been fully paid up. Others ILC / FLC : Rs.30.000 millions (Enhanced from Rs.20.000 millions) OCC / ODBD : Rs.30.000 millions (Fresh) Total : Rs.60.000 millions
Short particulars of the property charged	· Hypothecation of stocks and receivables of the company. · As collateral security factory Land and building of M/s. Balaji Formalin Pvt. Ltd. At 1398 Khatraj Kalol Road, Village Moti Bhoyan, Tal. : Kalol, Dist. Ghandhinagar. · As collateral security office at 302, Devarc Mall, S G Road, Ahmedabad of the company. · As collateral security machineries of M/s. Balaji Formalin Pvt. Ltd. · As collateral security commercial vehicles (8 Trucks) owned by M/s. Balaji Formalin Pvt. Ltd. · Personal guarantee of (1) Mahendra R. Gupta and (2) Manoj R. Gupta · Corporate Guarantee of M/s. Balaji Formalin Pvt. Ltd. · The above securities are shares on pari passu basis as 1^st charge between the limit of the company and Rs.99.500 millions limit of M/s. Balaji Formalin Pvt. Ltd.
Particulars of the present modification	The limit is enhanced from present limit of Rs.20.000 millions to Rs.60.000 millions.

Fixed Assets

· Air Conditioner

· Computer Instruments

· Cellular phone

· Electric Fitting

· Fax Machine

· Godown Equipments

· Furniture and Fixtures

· Indica Car

· Two Wheeler

· Telephone Instruments

· Honda City Car

· Office Premises

· Cycle

· Water Dispender

· Office Equipments

· Maruti Wagon – R

· L.G. 22” LCD Television

· Mobile Phone

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.44.72
UK Pound	1	Rs.72.93
Euro	1	Rs.64.72

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.