MIRA INFORM REPORT

Report Date :

10.11.2011

IDENTIFICATION DETAILS

Name :	SHREE RAJ-RAJESHWARI PAP-CHEM INDUSTRIES PRIVATE LIMITED
Registered Office :	Shah House, Plot No. 142, 3^rd Floor, S. V. Road, Opposite Khar Police Station, Khar (West), Mumbai – 400052, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	29.09.1995
Com. Reg. No.:	11-93226
Capital Investment / Paid-up Capital :	Rs.64.500 Millions
CIN No.: [Company Identification No.]	U21010MH1995PTC093226
TAN No.: [Tax Deduction & Collection Account No.]	MUMS35906D
PAN No.: [Permanent Account No.]	AACR3535J
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Paper and Paper Board.
No. of Employees :	50 (Approximately) (Office – 10 and Factory – 40)

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 400000
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 PARTED BY

Name :	Mr. Ashok Dhoke
Designation :	Accounts Department
Contact No.:	91-22-26057434
Date :	09.11.2011

LOCATIONS

Registered Office :	Shah House, Plot No. 142, 3^rd Floor, S. V. Road, Khar (West), Mumbai – 400 052, Maharashtra, India
Tel. No.:	91-22-26053490/ 26057434/ 435
Mobile No.:	91-9970100270 - Mr. Ritesh (General Manager)
Fax No.:	91-22-26043776/ 26053490
E-Mail :	srrpc@netkracker.com srrpc1997@rediffmail.com
Area:	3500 sq. ft.
Location:	Owned
Factory :	Plot No. G-5, Sinnar M.I.D.C. Industrial Area, Nasik – 422103, Maharashtra, India
Tel. No.:	91-2551-230391 / 230078 / 230849
Fax No.:	91-2551-230798
Location:	Owned

DIRECTORS

AS ON 30.09.2010

Name :

Mr. Parag Dilip Shah

Designation :

Director

Address :

595-A, Narendra Niwas, Dr. B. A. Road, Matunga, Mumbai-400019, Maharashtra, India

Date of Birth/Age :

17.06.1975

Date of Appointment :

29.09.1995

DIN No.:

02080947

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	U21010MH1995PTC093226	SHREE RAJ-RAJESHWARI PAP-CHEM INDUSTRIES PRIVATE LIMITED	Director	29/09/1995	29/09/1995	Active	NO
2	U51909MH1995PTC090615	KHIMCHAND CHAGANLAL INTERNATIONAL PRIVATE LIMITED	Director	02/04/1997	02/04/1997	Active	NO
3	U45200MH2005PTC152186	QUALITY ORIGINS CONSTRUCTIONS PRIVATE LIMITED	Director	24/03/2005	24/03/2005	Strike off	NO

Name :

Ms. Silvee

Designation :

Director

KEY EXECUTIVES

Name :	Mr. Ashok Dhoke
Designation :	Accounts Department
Name :	Mr. Ritesh
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares (Equity)
Dilip Khimchand Shah	1255300
Parag Dilip Shah	1325100
Bhamini Dilip Shah	174700
Rupesh Dilip Shah	1300100
K. C. International Private Limited, India	860000
Shivaji Parag Shah	534800
Total	5450000

Names of Shareholders	No. of Shares (Preference)
K. C. International Private Limited, India	1000000
Total	1000000

AS ON 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	14.50
Directors or relatives of directors	85.50
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Paper and Paper Board.
Imports :
Products :	Waste Paper
Countries :	· Middle East · USA · Gulf and European Countries
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Installed Capacity	Actual Production
Paper and Paper Board	100 Mt per Day	29317270

GENERAL INFORMATION

Suppliers :

· Aakar Glasss India Private Limited

· Alfa Decor

· Pooja Marketing

· Piraj Agencies

· International Agencies

· Mansi Enterprises

· Nikhil Industries

· Pennar Chemicals Limited

· Piraj Agencies

· Bombay Metal Corporations

· Mangalam corporations

· H. R. Enterprises

· Deep Engineering

· Daksh Engineering

· Harsh Corporation

Customers :

Retailers, End Users and OEM’s

· Alfa Trading Company

· Vishwas Trading Company

· Bhavin Enterprises

· Nova Packaging

· Anupam Plasto Engineering Private Limited

· Vishwas Papers Mills

· Krishna Papers

· R. S. Enterprises

· Shree Rang Agency

· Siddhi Sales Corporations

· Vijay Traders

· Suraksha Papers

· Shree Trading

· Cosmic

No. of Employees :

50 (Approximately) (Office – 10 and Factory – 40)

Bankers :

· Bank of Baroda,

Vile Parle (West) Branch, Somaiya Sadan, D. J. Road, Vile Parle West, Mumbai - 400 056, Maharashtra, India

· HDFC Bank limited

· State Bank of India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
HDFC Bank Honda Civic Car Loan A/C	0.070	0.463
HDFC Bank Swift Car Loan A/c	0.249	0.416
Reliance Consumer Finance	1.661	2.001
Bank Baroda Cash Credit A/C No.065 Mumbai	57.309	60.198
Term Loan SICOM Term Loan (500 Lacs)	12.000	21.600
SICOM Term Loan (400 Lacs)	59.350	40.000
Total	130.639	124.678
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Director	0.151	16.972
From Shareholders	0.000	0.180
Others	46.562	30.114
From Bank	11.225	19.467
Total	57.938	66.733

Banking Relations :	--
Auditors :
Name :	Umeh P. Gosar and Associates Chartered Accountants
Address :	702, Bhavya Apart,ments, 5^th Road, Opposite Jain Mandir. Khar (West), Mumbai-400 052, Maharashtra, India
Tel. No.:	91-22-26462554/ 32667725
Website:	www.upgassociates.com

CAPITAL STRUCTURE

AS ON 30.09.2010

Authorised Capital : Rs.67.500 Millions

Issued, Subscribed & Paid-up Capital : Rs.67.000 Millions

AS ON 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5450000	Equity Shares	Rs.10/- each	Rs.54.500 Millions
1000000	Preference Shares	Rs.10/- each	Rs.10.000 Millions
50000	Unclassified Shares	Rs.10/- each	Rs.0.500 million
	Total		Rs.65.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5450000	Equity Shares	Rs.10/- each	Rs.54.500 Millions
1000000	Preference Shares	Rs.10/- each	Rs.10.000 Millions
	Total		Rs.64.500 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		64.500	44.500	44.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		32.560	21.696	17.202
4] (Accumulated Losses)		(1.716)	(1.716)	(1.716)
NETWORTH		95.344	64.480	59.986
LOAN FUNDS
1] Secured Loans		130.639	124.678	92.495
2] Unsecured Loans		57.938	66.733	61.890
TOTAL BORROWING		188.577	191.411	154.385
DEFERRED TAX LIABILITIES		6.674	5.475	4.036
TOTAL		290.595	261.366	218.407
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		167.607	168.366	158.036
Capital work-in-progress		76.087	9.691	0.000
INVESTMENT		0.000	1.159	1.660
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	97.482	87.424	52.800
	Sundry Debtors	22.710	23.035	27.889
	Cash & Bank Balances	2.182	19.625	3.068
	Other Current Assets	3.621	3.545	3.065
	Loans & Advances	19.073	25.760	6.532
Total Current Assets		145.068	159.389	93.354
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	88.143	69.526	27.576
	Other Current Liabilities	0.273	0.091	0.290
	Provisions	9.751	7.622	6.777
Total Current Liabilities		98.167	77.239	34.643
Net Current Assets		46.901	82.150	58.711
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		290.595	261.366	218.407

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2010	31.03.2009	31.03.2008
	Revenue From Operations	572.135	174.849	414.830
	PROFIT BEFORE TAX	15.059	6.623	6.105
Less	TAX	2.997	0.690	4.871
	PROFIT AFTER TAX	12.062	5.933	1.234
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	21.693	17.202	13.561
	BALANCE CARRIED TO THE B/S	32.559	21.693	17.202
	Earnings Per Share (Rs.)	1.87	-	-

Particulars	31.03.2011
Sales Turnover (Approximately)	760.000

Expected Sales (2011-12): Rs.820.000 Millions.

The above information has been parted by Mr. Ashok.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Return on Total Assets (PBT/Total Assets}	(%)	4.82	2.02	2.43
Return on Investment (ROI) (PBT/Networth)		0.15	0.10	0.10
Debt Equity Ratio (Total Liability/Networth)		3.01	4.17	3.15
Current Ratio (Current Asset/Current Liability)		1.48	2.06	2.69

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS: (PARTIAL DETAILS)

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors (Chemicals)
Teg Corporation	1.236	0.860	0.421
Vikram Chemicals	0.134	0.410	0.018
Sundry Creditors (Expenses)
Citi Bank Credit	0.051	0.106	0.000
Aim Enrio	0.010	0.005	0.048
Sundry Creditors (Fuel)
Chandra Coal Private Limited	2.545	5.998	1.031
Santosh Baswaling Tandle	1.035	0.666	0.200

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	-----
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	Yes
Profitability for last three years	-----
Reasons for variation <> 20%	-----
Estimation for coming financial year	Yes
Capital in the business	No
Details of sister concerns	-----
Major Suppliers	Yes
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	No
Incorporation details is applicable	-----
Last Accounts filed at ROC	-----
Major Shareholders, if available	-----

TRADE REFERENCE:

· Alfa Decor

· Shree Rang Agency

· Shree Trading

· Cosmic

Bankers Charges Report as per Registry

Corporate identity number of the company	U21010MH1995PTC093226
Name of the company	SHREE RAJ-RAJESHWARI PAP-CHEM INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Shah House, Plot No. 142, 3^rd Floor, S. V. Road, Khar (West), Mumbai – 400 052, Maharashtra, India
This form is for	Modification of charge
Charge identification number of the modified	90156689
Type of charge	Book Debts Movable Property
Particular of charge holder	Bank of Baroda, Somaiya Sadan, D. J. Road, Vile Parle West, Mumbai - 400 056, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Supplemental Composite Agreement of Hypothecation of Goods, Book-Debts, Moveable Machinery and Vehicles.
Date of instrument Creating the charge	10.04.2010
Amount secured by the charge	Rs.98.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest on the cash credit limit at the rate of 1.50% over BPLR of the Bank per annum with monthly rests. Terms of Repayment On Demand. Margin 25% on Stocks and Book Debts. 20% cash margin in respect of Bank Guarantee facility. Extent and Operation of the charge The charge is modified to secure Cash Credit (Hypn. of stock and book debts) - Rs.97.500 millions (increased from Rs.60.000 millions) [with sub-limit : LC - Rs.15.000 millions], Bank Guarantee - Rs.0.500 millions, aggregating to Rs.98.000 millions together with interest, additional interest by way of liquidated damages, compound interest, commitment charges, guarantee commission, commission for Letters of Credit, premia on pre-payment, cost, charges, expenses and other moneys payable by the Borrower to the Bank.
Short particulars of the property charged	Stocks, both present and future and including all stocks of RMs, WIP, SFGs and FGs such as stocks of Raw Materials viz. waste papers, chemicals, uels and other finished and semi finished products, PM and stores etc. All the present and future book debts, outstanding, monies receivable, claims, bills, contracts, engagements and securities etc. All the tangible movable machinery and plant and vehicles of the Borrower together with spares, tools and accessories and other movables both present and future.
Date of latest modification prior to the present modification	28.03.2007
Particulars of the present modification	The charge is increased upto Rs.98.000 millions to cover Cash Credit (Hypothecation of stock and book debts) - Rs.97.500 millions c(increased from Rs.60.000 millions) [with sub-limit : LC - Rs.15.000 millions], Bank Guarantee - Rs.0.500 million.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Electrical Installations

· Vehicles

· Furniture’s and Fixtures

· Office Equipments

· Computer

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	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.