MIRA INFORM REPORT

Report Date :

26.11.2011

IDENTIFICATION DETAILS

Name :	SHRI BADRI KEDAR PAPERS PRIVATE LIMITED (w.e.f. 14.11.1994)
Formerly Known As :	SHREE BADRIKEDAR STEEL PRIVATE LIMITED
Registered Office :	Badrinath Marg, Jhanda Chowk, Kotdwara – 246149, Uttarakhand
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.10.1985
Com. Reg. No.:	20-007453
Capital Investment/ Paid-up Capital:	Rs. 34.260 Millions
CIN No.: [Company Identification No.]	U27109UR1985PTC007453
IEC No.:
TAN No.: [Tax Deduction & Collection Account No.]	MRTS01479C
PAN No.: [Permanent Account No.]	AAECS5685C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Papers.
No. of Employees:	81 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 300000
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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. Sumit Kumar Agarwal
Designation :	Director
Contact No.:	91-9412216619
Date :	25.11.2011

LOCATIONS

Registered Office :	Badrinath Marg, Jhanda Chowk, Kotdwara – 246149, Uttarakhand, India
Tel. No.:	91-1341-231316
Mobile No.:	91-9412216619 (Mr. Sumit Kumar Agarwal)
Fax No.:	Not Available
E-Mail :	shiam_ca@rediffmail.com
Location :	Owned
Factory :	Nagina, Road No. 5, Najibabad, Uttar Pradesh, India
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :	Mr. Dinesh Kumar Goel
Designation :	Director
Address :	Moh Santonalan Niar, A.S.K.J. College, Najibabad – 246763, Kotdwara, Uttar Pradesh, India
Date of Birth/Age :	60 Years
Qualification :	B.E
Date of Appointment :	04.12.2006
DIN NO:	00507774
Name :	Mr. Sumit Agarwal
Designation :	Director
Address :	Badrinath Marg, Kotdwara – 205260, Uttarakhand, India
Date of Birth/Age :	32 Year
Qualification :	B. Tech
Date of Appointment :	04.12.2006
DIN NO:	00503644
Name :	Mr. Arvind Kumar
Designation :	Director
Address :	Badrinath Marg, Kotdwara – 246142, Uttarakhand, India
Date of Birth/Age :	61 Years
Qualification :	B. Com
Date of Appointment :	09.10.1985
DIN NO:	00508230
Name :	Mr. Avdesh Kumar
Designation :	Director
Address :	Badrinath Marg, Kotdwara – 246763, Uttarakhand, India
Date of Birth/Age :	60 Years
Qualification :	B.Com
Date of Appointment :	09.10.1985
DIN NO:	00571115
Name :	Mr. Ashok Kumar
Designation :	Director
Address :	Badrinath Marg, Kotdwara – 246149, Uttarakhand, India
Date of Birth/Age :	66 Years
Qualification :	B.com
Date of Appointment :	09.10.1985
DIN NO:	01073504
Name :	Mr. Ram Autar
Designation :	Director
Address :	Badrinath Marg, Kotdwara – 246763, Uttarakhand, India
Date of Birth/Age :	86 Years
Date of Appointment :	09.10.1985
DIN NO:	01073536

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2011)

Names of Shareholders	No. of Shares
Arvind Kumar	359900
Arvind Kumar (HUF)	525000
Ram Autar	104250
Ashok Kumar	317000
Ashok Kumar (HUF)	475000
Prabhawati	44000
Achla Agarwal	70100
Avdesh Kuamr	181700
Avdesh Kumar (HUF)	600000
Manju Agarwal	66100
Uma Agarwal	70900
Shikha Agarwal	55500
Mudit Agarwal	61300
Richa Agarwal	40000
Sumit Agarwal	60600
Rohit Agarwal	44500
Priyanka Goel	14100
Sameer Jain	11000
Ankit Goel	12500
Dhruva Jain	11000
Archna Goel	21000
Neha Agarwal	32100
Nidhi Agarwal	38300
Monika Agarwal	55500
Dinesh Kumar Goel	132400
Aruna Jan	10000
Hemchand Jain	2500
Bipin kumar Agarwal	9700
Shree Sidhbali Motors and Gen Hire Purchase	50
Total	3426000

Equity Share Break up (Percentage of Total Equity)

(AS ON 30.09.2011)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Papers.

Products :

Product Description	ITC Code No.
Paper and Paper Board	4804 and 4805

· Kraft papers

Imports :

Products :

Vest Paper

Countries :

· U.S

· Dubai

· Saudi

· Europe

· Israel

Terms :

Selling :

Cash (30 Days)

Purchasing :

L/C and Cash (30 Days)

PRODUCTION STATUS 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
M.G. Kraft Paper	MT	14850	13281.767

GENERAL INFORMATION

Customers :

Dealers

No. of Employees :

81 (Approximately)

Bankers :

Punjab National Bank, Chowk Bazar, Najibabad – 246763, Uttar Pradesh, India

Facilities :

Secured Loans	31.03.2011 Rs. in Millions	31.03.2010 Rs. in Millions
Punjab National Bank
Term loan	40.582	40.716
Working Capital loan	58.321	49.585
Deferred liability	0.713	1.087
Total	99.616	91.388
Unsecured Loans	31.03.2011 Rs. in Millions	31.03.2010 Rs. in Millions
From Directors Shareholders and relatives	24.081	23.001
Security deposits	2.075	2.725
Total	26.156	25.726

Banking Relations :	--
Auditors :
Name :	Shiam and Company Chartered Accountant
Address :	Aggarwal Market, Muzaffarnagar – 251001, Uttar Pradesh, India
PAN NO :	AAFCS9134R

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Share	Rs.10/- each	Rs. 40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3426000	Equity Share	Rs.10/- each	Rs. 34.260 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		34.260	34.2600	34.260
2] Share Application Money		5.084	0.000	0.000
3] Reserves & Surplus		41.129	33.450	27.079
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		80.473	67.710	61.339
LOAN FUNDS
1] Secured Loans		99.616	91.388	57.831
2] Unsecured Loans		26.156	25.726	23.702
TOTAL BORROWING		125.772	117.114	81.533
DEFERRED TAX LIABILITIES		14.757	14.272	12.210
TOTAL		221.002	199.096	155.082
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		106.326	110.739	82.654
Capital work-in-progress		4.990	0.903	8.553
INVESTMENT		0.085	0.085	0.085
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	49.199	39.887	31.226
	Sundry Debtors	51.423	49.692	36.482
	Cash & Bank Balances	5.866	7.093	4.376
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	28.134	11.825	9.333
Total Current Assets		134.622	108.497	81.417
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	14.536	8.627	9.608
	Other Current Liabilities	10.194	12.231	8.007
	Provisions	0.291	0.270	0.012
Total Current Liabilities		25.021	21.128	17.627
Net Current Assets		109.601	87.369	63.790
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		221.002	199.096	155.082

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	278.527	221.125	196.566
		Other Income	0.843	1.997	1.046
		TOTAL (A)	279.370	223.122	197.612
Less	EXPENSES
		Raw material consumed	102.028	70.548	54.714
		Manufacturing expenses	129.867	112.208	105.937
		Payment to and provision for employees	5.146	4.765	4.290
		Administrative and Selling Expenses	10.088	11.612	9.095
		Increase/ (Decrease) in stock	(1.046)	(1.774)	0.134
		TOTAL (B)	246.083	197.359	174.170
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		33.287	25.763	23.442
Less	FINANCIAL EXPENSES (D)		14.392	8.907	8.145
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		18.895	16.856	15.297
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.652	7.340	6.364
	PROFIT BEFORE TAX (E-F) (G)		10.243	9.516	8.933
Less	TAX (H)		2.565	3.144	2.689
	PROFIT AFTER TAX (G-H) (I)		7.678	6.372	6.244
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		28.450	22.078	15.834
	BALANCE CARRIED TO THE B/S		36.128	28.450	22.078
	IMPORTS
		Waste paper	23.418	6.143	0.000
		Consumables Stores	0.465	7.422	0.000
	TOTAL IMPORTS		23.883	13.565	0.000
	Earnings Per Share (Rs.)		1.95	1.86	1.82

Expected Sales (2011-2012) : Rs. 350.000 Millions

The above information has been parted by Mr. Sumit Kumar Agarwal.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.74	2.85	3.15
Net Profit Margin (PBT/Sales)	(%)	3.67	4.30	4.54
Return on Total Assets (PBT/Total Assets}	(%)	4.25	4.34	5.44
Return on Investment (ROI) (PBT/Networth)		0.12	0.14	0.14
Debt Equity Ratio (Total Liability/Networth)		1.87	2.04	1.61
Current Ratio (Current Asset/Current Liability)		5.38	5.13	4.61

LOCAL AGENCY FURTHER INFORMATION

Check List:

Check List by info Agents	Available in Report (Yes/ No)
1) Year of Establishment	Yes
2)Locality of the Firm	Yes
3)Constitution of the Firm	Yes
4)Premises Details	Yes
5)Type of Business	Yes
6)Line of Business	Yes
7)Promoter’s Background	------------------
8)No. of Employees	Yes
9)Name of Person Contacted	Yes
10)Designation of Contact person	Yes
11)Turnover of Firm for last three years	Yes
12)Profitability for last three years	No
13)Reason for variation <> 20%	----------------
14)Estimated for coming financial year	Yes
15)Capital in the Business	No
16)Details of Sister Concern	-----------------
17)Major Suppliers	No
18)Major Customer	Yes
19)Payment Terms	Yes
20)Export/ Import Details (if Applicable)	Yes
21)Market Information	------------------
22)Litigation that the Firm / Promoter	------------------
23)Banking Details	Yes
24)Banking facility details	Yes
25)Conduct of the Banking	-------------------
26)Buyer visit details	-------------------
27)Financials, if provided	Yes
28)Incorporation details, if applicable	-------------------
29)Last account filed at ROC	-------------------
30)Major Shareholders, if applicable	-------------------

OPERATION:

The production during the year was 13281.767 MT of M.G. Kraft Paper as compared to last year 13128.060 MT of M.G. Kraft Paper and the sales was 13293.218 MT of M.G. Kraft Paper Rs. 290.475 Millions as compared to last year 13027.692 MT of M.G. Kraft Paper Rs. 230.572 Millions the director expect better results in coming year.

CONTINGENT LIABILITIES:

(Rs. in Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Entry tax under appeal	4.810	0.000	1.910
Bank guarantee to pollution control board	0.266	0.266	0.249
Electricity under appeal	0.000	0.000	2.228
Letter of credit	0.000	0.000	5.300

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Office Equipments

· Vehicles

· Tractor

· 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 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.52.16
UK Pound	1	Rs.80.64
Euro	1	Rs.69.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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		44

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.