MIRA INFORM REPORT

Report Date :

10.11.2011

IDENTIFICATION DETAILS

Name :	HARDOLI PAPER MILLS LIMITED
Registered Office :	Krishna Kunj, First Floor, Bhavasar Chowk, C.A. Road, Nagpur – 440002, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	24.02.1995
Com. Reg. No.:	11-085883
Capital Investment / Paid-up Capital :	Rs.23.411 Millions
CIN No.: [Company Identification No.]	L21010MH1995PLC085883
TAN No.: [Tax Deduction & Collection Account No.]	AGRH10195D/
Legal Form :	A Public Limited Liability Company. The Company’s Shares are listed on over the counter exchange of India.
Line of Business :	Manufacturer of Craft Papers.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 230000
Status :	Satisfactory
Payment Behaviour :	Slow but 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 slow but correct. 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.

INFORMATION DECLINED BY

Name :	Mr. D D Pandey
Designation :	Administrator Officer
Date :	09.11.2011

LOCATIONS

Registered Office :	Krishna Kunj, First Floor, Bhavasar Chowk, C.A. Road, Nagpur – 440002, Maharashtra, India
Tel. No.:	91-712-2770168/ 2770968/ 2733846
Fax No.:	91-712-2770168
E-Mail :	sushil@wnaca.com hardolipaper@gmail.com
Factory :	42 KM, Nagar – Amravati Road, Village Hardoli, District Nagpur, Maharashtra, India
Tel No.:	91-7112-202636

DIRECTORS

(AS ON 17.09.2010)

Name :

Mr. Kailash Purushottam Agarwal

Designation :

Managing Director

Address :

MAA Umiya Nagar, Opposite Akash Dal Mills, Chikli Layout, Nagpur – 440008, Maharashtra, India

Date of Birth/Age :

03.03.1946

Date of Appointment :

24.05.2007

DIN No.:

00367292

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L21010MH1995PLC085883	HARDOLI PAPER MILLS LIMITED	Managing director	24-05-07	24-05-07	-	Active	NO
2	U74900MH2008PTC181287	RAHI INDIA PRIVATE LIMITED	Director	18-04-08	18-04-08	01-10-09	Active	NO

Name :

Mr. Rajiv Dharamprakash Behal

Designation :

Director

Address :

Yansh 9A, Byramji Town, Nagpur – 440013, Maharashtra, India

Date of Birth/Age :

17.01.1958

Date of Appointment :

24.02.1995

DIN No.:

00078606

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L21010MH1995PLC085883	HARDOLI PAPER MILLS LIMITED	Director	24-02-95	24-02-95	Active	NO
2	U99999MH1995PTC089486	RAJIV BEHAL SERVICES PRIVATE LIMITED	Director	13-06-95	13-06-95	Active	YES
3	U73100MH1999PTC118185	CARBON INSPECT INDIA PRIVATE LIMITED	Director	05-02-99	05-02-99	Strike off	NO

Name :

Mr. Anilkumar Murarilal Lakhotiya

Designation :

Whole time Director

Address :

303, Ashish Apartments, Ramdaspeth, Nagpur – 440010, Maharashtra, India

Date of Birth/Age :

23.01.1952

Date of Appointment :

24.02.1995

DIN No.:

00367361

Name :

Mr. Jarnailsingh Gurdassingh Saini

Designation :

Director

Address :

446, Hanuman Nagar, Nagpur – 440009, Maharashtra, India

Date of Birth/Age :

05.06.1948

Date of Appointment :

24.02.1995

DIN No.:

00367656

Name :

Mr. Omprakash Damodar Rathi

Designation :

Additional Director

Address :

Plot No.153, N3CIDCO, Aurangabad – 431003, Maharashtra, India

Date of Birth/Age :

10.05.1952

Date of Appointment :

23.04.2010

Email :

odrathi@kaygaonpm.com

DIN No.:

00895316

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U21010MH1989PLC051317	KAYGAON PAPER MILLS LIMITED	Managing director	01-10-07	10-04-89	Active	NO
2	L21010MH1995PLC085883	HARDOLI PAPER MILLS LIMITED	Additional director	23-04-10	23-04-10	Active	NO

KEY EXECUTIVES

Name :	Mr. D D Pandey
Designation :	Administrator Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 17.09.2010)

Names of Shareholders	No. of Shares
Kailash Purushottam Agarwal	229100
Rajiv Dharamprakash Behal	126500
Anilkumar Murarilal Lakhotiya	115600
Jarnailsingh Gurdassingh Saini	84600
Omprakash Damodar Rathi	115300

(AS ON 30.09.2010)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	0.43
Bodies corporate	2.20
Directors or relatives of directors	54.18
Other	43.19
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Craft Papers.

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Kraft Paper	M. Tons	NA	30,000	18,526

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· State Bank of India

SME City Credit Centre, Shraddhanandpeth, South Ambazari Road, Nagpur - 440022, Maharashtra, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Working Capital Facility From SBI	18.862	25.649
Hire Purchases Loan	0.629	0.523
Term Loan	19.460	25.460
Total	38.951	51.632
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Directors	1.681	1.524
From Shareholders	3.074	2.730
From Others	7.856	1.551
Total	12.611	5.805

Banking Relations :	--
Auditors :
Name :	Walter and Associates Chartered Accountant
Address :	B-6/7, Saroj Apartment, M. C. Road, Andheri (East), Mumbai – 400093, Maharashtra, India
Tel No.:	91-22-40568100
Fax No.:	91-22-40568154
Email :	wna@wnaca.com
Website :	www.wnaca.com
PAN No.:	AAAFA0445K

CAPITAL STRUCTURE

(AS ON 17.09.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Share	Rs.10/- each	Rs.35.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2341100	Equity Share	Rs.10/- each	Rs.23.411 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		23.411	23.411	23.411
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		34.107	21.494	26.874
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		57.518	44.905	50.285
LOAN FUNDS
1] Secured Loans		38.951	51.632	29.009
2] Unsecured Loans		12.611	5.805	3.444
TOTAL BORROWING		51.562	57.437	32.453
DEFERRED TAX LIABILITIES		9.097	3.404	5.781
TOTAL		118.177	105.746	88.519
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		88.838	85.281	35.511
Capital work-in-progress		0.000	0.633	33.821
INVESTMENT		0.100	0.100	0.100
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	10.228	8.517	5.401
	Sundry Debtors	36.525	23.778	13.869
	Cash & Bank Balances	0.493	3.146	0.167
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	10.117	5.867	12.027
Total Current Assets		57.363	41.308	31.464
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	27.302	21.237	12.200
	Other Current Liabilities	0.010	0.000	0.098
	Provisions	0.812	0.339	0.079
Total Current Liabilities		28.124	21.576	12.377
Net Current Assets		29.239	19.732	19.087
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		118.177	105.746	88.519

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	309.006	176.583	143.184
		Other Income	0.775	0.273	0.027
		TOTAL (A)	309.781	176.856	143.211
Less	EXPENSES
		Increase in Stock	(0.579)	(3.202)	1.437
		Raw Materials Consumed	197.879	119.289	94.782
		Office Expenses	61.886	37.783	33.629
		Administrative Expenses	7.715	6.464	4.763
		Advertising Expenses	14.305	8.373	5.457
		Loss on Discernment of Fixed Assets	0.000	6.075	0.000
		TOTAL (B)	281.206	174.782	140.068
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		28.575	2.074	3.143
Less	FINANCIAL EXPENSES (D)		5.692	5.201	0.296
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		22.883	(3.127)	2.847
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.459	4.567	2.465
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		18.424	(7.694)	0.382
Less	TAX (H)		5.811	(2.314)	0.195
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		12.613	(5.380)	0.187
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.080	6.460	6.273
	BALANCE CARRIED TO THE B/S		13.693	1.080	6.460
	IMPORTS
		Raw Materials	40.469	19.154	NA
		Stores & Spares	0.652	0.673	NA
		Capital Goods	0.000	0.794	NA
	TOTAL IMPORTS		41.121	20.621	NA
	Earnings/(Loss) Per Share (Rs.)		5.39	(2.30)	0.08

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.07	(3.04)	0.13
Net Profit Margin (PBT/Sales)	(%)	5.96	(4.36)	0.27
Return on Total Assets (PBT/Total Assets}	(%)	12.60	(6.08)	0.57
Return on Investment (ROI) (PBT/Networth)		0.32	(0.17)	0.01
Debt Equity Ratio (Total Liability/Networth)		1.39	1.76	0.89
Current Ratio (Current Asset/Current Liability)		2.04	1.91	2.54

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2010	31.03.2009	31.03.2008
	(Rs. In Millions)
Creditors for Goods	23.205	16.017	6.137
Creditors for Capital Goods	0.562	0.080	3.611
Creditors for Expenses	3.536	5.140	2.452
Total	27.303	21.237	12.200

NOTE:

The Registered Office of the company has been shifted from, Rokde Sadanbhavsar Chowk, Central Avenue, Nagpur – 440002, Maharashtra, India, to the present address w.e.f. 01.12.2009.

OPERATIONS:

The company has achieved the production of 18,526 MT as against 11,249 MT in the previous year which is an increase of 64.68%. The turnover of the company has increased from Rs.176.583 Millions in the previous year of Rs.309.006 Millions during the year. Resultantly the profit before interests, depreciation, Taxes and extra Ordinary Items has increased to Rs.28.575 Millions as compared to Rs.8.148 Millions in the previous year.

The company has achieved the net profit after tax of Rs.12.613 Millions as against a loss of Rs.5.380 Millions in the previous year.

The directors are confident of achieving higher capacity utilization and better prospects for the coming year.

CONTINGENT LIABILITIES (AS ON 31.03.2010)

· On accounts of Bank Guarantee given to coal India Limited Rs.0.033 Million and Margin money Rs.0.033 Million.

· On account of Income tax demand of Rs.7.799 Millions for A.Y. 2005-2006 and Rs.1.258 Millions for the A.Y. 2006-2007.

· Estimated amount of Contracts remaining to be executed on capital Accounts and not provided for as on 31^st March, 2010 is Rs.2.169 Millions (Net of advance given) Rs.0.644 Million. The said amount is however based on estimation.

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	90210902
Corporate identity number of the company	U21010MH1995PLC085883
Name of the company	HARDOLI PAPER MILLS LIMITED
Address of the registered office or of the principal place of business in India of the company	Rokde Sadanbhavsar Chowk, Central Avenue, Nagpur – 440002, Maharashtra, India
Type of charge	Immovable Property
Particular of charge holder	· State Bank of India SME City Credit Centre, Shraddhanandpeth, South Ambazari Road, Nagpur - 440022, Maharashtra, India mca21@in.com
Nature of description of the instrument creating or modifying the charge	Memorandum for recording extension of mortgage by deposit of title deeds covering enhanced limit and creation of equitable mortgage on additional properties for existing limits and enhanced limit and additional facilities.
Date of instrument Creating the charge	12.03.2009
Amount secured by the charge	Rs.64.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest WCDL: 2 % above SBAR with a minimum of 14.25% p.a. present effective rate 14.25% P.A. Terms of Repayment WCDL: Repayable in 4 monthly installment of Rs.1.000 Millions each commencing from September 2009. Margin Raw Material : 25% Stock in progress : 33.33% Finished Goods : 33.33% Receivables : 40% Letter of Credit : 25% Term Loan : 25% Extent and Operation of the charge The charge operate as security on the properties of the company.
Short particulars of the property charged	All that piece of land situate at Mouja Hardoli, Taluka Katol, District Nagpur bearing Survey No/ Khasra No. 31 Ph No. 67 admeasuring 42168.28 square meters (4.22 hectors) or thereabout together with building and structure standing thereon.
Date of latest modification prior to the present modification	11.10.2008
Particulars of the present modification	Extension of equitable mortgage to cover additional credit facilities of Rs.4.000 Millions. Thus total credit facilities stand at Rs.64.000 Millions.

FIXED ASSETS:

· Freehold Land

· Factory Building

· Building (Others)

· Plant and Machinery

· Electrical Installation

· Computers

· Office Equipment

· Furniture and Fixtures

· 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.49.38
UK Pound	1	Rs.79.20
Euro	1	Rs.67.84

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	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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		43

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.