MIRA INFORM REPORT

Report Date :

17.09.2011

IDENTIFICATION DETAILS

Name :	DEV PRIYA INDUSTRIES LIMITED
Registered Office :	4, Shankar Vihar, Vikas Marg, Delhi – 110 092
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	09.02.1990
Com. Reg. No.:	55-39163
Capital Investment / Paid-up Capital :	Rs.100.000 millions
CIN No.: [Company Identification No.]	U21010DL1990PLC039163
TAN No.: [Tax Deduction & Collection Account No.]	DELD06278G
PAN No.: [Permanent Account No.]	AAACD4171A
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer of High B.F. Kraft Paper.
No. of Employees :	About 150

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 600000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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

LOCATIONS

Registered Office :	4, Shankar Vihar, Vikas Marg, Delhi – 110 092, India
Telefax No.:	91-11-22460457/ 22013156/ 22013159
E-Mail :	devpriyagroup@sify.com sangeetagarwalgm@rediffmail.com chetn006@gmail.com
Website :	www.devpriyagroup.com
Factory :	8 Km. Meerut, Mawana Road, Village – Saini, Meerut, Uttar Pradesh, India
Telefax No.:	91-121-2620343/ 2620344
Correspondence and Administrative Office :	“Dev Priya”, Shambhu Nagar, Baghpat Road, Meerut, Uttar Pradesh, India
Tel. No.:	91-121-2512181

DIRECTORS

(AS ON 31.03.2010)

Name :

Mr. Rajendra Prasad Gupta

Designation :

Director

Address :

Dev Priya, Shambhu Nagar, Baghpat Road, Meerut – 250 002, Uttar Pradesh, India

Date of Birth/Age :

12.02.1942

Date of Appointment :

02.09.1990

Name :

Mr. Amit Gupta

Designation :

Director

Address :

J – 7/ 2, Jyoti Nagar, West Loni Road, Shahdra

Date of Birth/Age :

25.06.1975

Date of Appointment :

07.02.1997

DIN No.:

00127246

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	U21010DL1990PLC039163	DEVPRIYA INDUSTRIES LIMITED	Director	07-02-97	07-02-97	Active	NO
2	U65921DL1997PTC084353	AD EXIM PRIVATE LIMITED	Director	01-04-98	01-04-98	Active	NO

Name :

Mr. Ashok Kumar Gupta

Designation :

Director

Address :

“Dev Ashray”, Shambhu Nagar, Baghpat Road, Meerut – 250 002, Uttar Pradesh, India

Date of Birth/Age :

10.01.1961

Date of Appointment :

10.01.2002

DIN No.:

02401967

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	U21010DL1990PLC039163	DEVPRIYA INDUSTRIES LIMITED	Director	10-01-02	10-01-02	Active	NO
2	U51909DL1997PTC084439	AVTAR DISTRIBUTORS PRIVATE LIMITED	Director	15-03-02	15-03-02	Active	NO

Name :

Mr. Mahendra Kumar Gupta

Designation :

Director

Address :

Dev Priya, Shambhu Nagar, Baghpat Road, Meerut – 250 002, Uttar Pradesh, India

Date of Birth/Age :

01.08.1949

Date of Appointment :

30.08.2008

DIN No.:

00126749

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	U74899DL1993PTC056706	SUPREME POLYPROPOLENE PRIVATE LIMITED	Director	31-12-93	31-12-93	01-12-08	Active	NO
2	U70101DL1997PTC084350	MAHENDRA CONSTRUCTIONS PRIVATE LIMITED	Director	09-01-97	09-01-97	-	Active	NO
3	L17111UP1988PLC009594	SYBLY INDUSTRIES LIMITED	Director	29-01-01	29-01-01	-	Active	NO
4	U74899DL1993PLC054397	DEV PRIYA PRODUCTS LIMITED	Director	31-12-07	01-04-03	01-10-09	Active	NO
5	U74899DL1987PTC051459	DEV PRIYA PAPERS PRIVATE LIMITED	Director	01-04-05	01-04-05	31-08-07	Active	NO
6	U21010DL1990PLC039163	DEVPRIYA INDUSTRIES LIMITED	Director	30-08-08	30-08-08	-	Active	NO

Name :

Mr. Anshul Gupta

Designation :

Director

Address :

B -19, Dev Shree, Shambhu Nagar, Baghpat Roiad, Meerut City – 250001, Uttar Pradesh, India

Date of Birth/Age :

17.06.1985

Date of Appointment :

01.04.2010

DIN No.:

01951922

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	U74899DL1987PTC051459	DEV PRIYA PAPERS PRIVATE LIMITED	Director	15-11-07	15-11-07	01-04-10	Active	NO
2	U21010DL1990PLC039163	DEVPRIYA INDUSTRIES LIMITED	Director	01-04-10	01-04-10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 17.08.2010)

Names of Shareholders	No. of Shares
Mahendra Kumar Gupta	100000
Ashok Kumar Gupta	57000
Rajendra Prasad Gupta	93000
Sanjeev Gupta	80000
Manish Gupta	100000
Satish Chand Gupta	50000
Madhu Gupta	55500
Surendra Kumar Gupta	56500
Rakesh Kumar Gupta	45500
Sunny Gupta	28500
Prachi Gupta	5500
Ankit Gupta	13500
Neha Gupta	13500
Geela Gupta	24500
Anshula Gupta	30000
Kalpana Gupta	99000
Sumit Gupta	70000
Surendra Kumar Guptas and Sons (HUF)	10000
Amit Gupta	90000
Rakesh Kumar Gupta and Sons (HUF)	20000
Mahendra Kumar Gupta and Sons (HUF)	13000
Rajendra Kumar Gupta and Sons (HUF)	20000
Suresh Chand Gupta and Sons (HUF)	72000
SAupreme Polypropylene Private Limited, India	2320000
Abhirichi Consultant Private Limited, Meerut	2049000
Muskan Paper Private Limited, India	110000
Monarch Cold Storage Private Limited, Meerut	120000
Suresh Chand Gupta	498000
Vichitra Travels Private Limited, India	250000
Shri Radhey Intermediateries Private Limited, India	126000
Rishab Filament Limited, India	790000

(AS ON 30.09.2010)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of High B.F. Kraft Paper.

Products :

Item Code No. (ITC Code)	4804
Product Description	Kraft Paper

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Kraft and White Paper	M. Ton.	NA	100000.000	66796.311

GENERAL INFORMATION

No. of Employees :

About 150

Bankers :

· Oriental Bank of Commerce,

Transport Nagar Branch, Delhi Road, Meerut – 250 001, Uttar Pradesh, India

· State Bank of India

(Commercial Branch), Ganga Plaza, Begum Bridge Road, Meerut – 250 001, Uttar Pradesh, India

Facilities :

Secured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
Term Loans	257.690	279.136
Working Capital Loans	166.722	55.574
Total	424.412	334.710
Unsecured Loans	31.03.2010	31.03.2009
	(Rs. In Millions)
From Body Corporate	132.661	111.250
From Promoters and there Relatives	42.973	36.417
Total	175.634	147.667

Banking Relations :	--
Auditors :
Name :	V.S. Gupta and Company Chartered Accountants
Address :	Western Kutchery Road, Meerut – 250 001, Uttar Pradesh, India
Tel. No.:	91-121-2642252/ 2642852
E-Mail :	vsgupta101@gmail.com

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 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		100.000	90.440	50.000
2] Share Application Money		0.000	0.000	21.240
3] Reserves & Surplus		48.571	41.999	31.999
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		148.571	132.439	103.239
LOAN FUNDS
1] Secured Loans		424.412	334.710	66.559
2] Unsecured Loans		175.634	147.667	95.833
TOTAL BORROWING		600.046	482.377	162.392
DEFERRED TAX LIABILITIES		25.491	20.191	19.917
TOTAL		774.108	635.007	285.548
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		475.151	87.246	84.380
Capital work-in-progress		0.000	359.687	18.230
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	96.593	51.048	74.989
	Sundry Debtors	287.871	119.798	79.899
	Cash & Bank Balances	3.137	0.870	1.288
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	135.741	105.193	80.666
Total Current Assets		523.342	276.909	236.842
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	211.624	77.846	43.768
	Other Current Liabilities	10.391	4.585	3.747
	Provisions	2.500	6.599	6.649
Total Current Liabilities		224.515	89.030	54.164
Net Current Assets		298.827	187.879	182.678
MISCELLANEOUS EXPENSES		0.130	0.195	0.260
TOTAL		774.108	635.007	285.548

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1346.484	628.601	500.043
		Other Income	0.894	0.253	5.770
		TOTAL (A)	1347.378	628.854	505.813
Less	EXPENSES
		Materials Consumed	786.638	409.095	320.014
		Manufacturing Expenses	397.648	141.630	124.517
		Personnel Expenses	17.205	9.471	8.324
		Administrative & Selling Expenses	32.591	16.185	12.993
		Loss on Sale of Fixed Assets	0.738	0.044	0.000
		Increase/(Decrease) in Finished Goods	(13.258)	4.840	(3.392)
		TOTAL (B)	1221.562	581.265	462.456
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		125.816	47.589	43.357
Less	FINANCIAL EXPENSES (D)		52.234	17.690	13.555
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		73.582	29.899	29.802
Less/ Add	DEPRECIATION/ AMORTISATION (F)		59.166	11.884	10.833
	PROFIT BEFORE TAX (E-F) (G)		14.416	18.015	18.969
Less	TAX (H)		7.800	6.873	4.740
	PROFIT AFTER TAX (G-H) (I)		6.616	11.142	14.229
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		41.999	31.999	19.383
Less	APPROPRIATIONS
		Income Tax paid for earlier years	(0.084)	1.142	0.000
		FBT paid for earlier years	0.039	0.000	0.032
		Proposed Dividend	0.000	0.000	1.581
	BALANCE CARRIED TO THE B/S		48.570	41.999	31.999
	IMPORTS VALUE		471.467	247.949	223.492
	Earnings Per Share (Rs.)		0.66	1.23	2.85

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.49	1.77	2.81
Net Profit Margin (PBT/Sales)	(%)	1.07	2.87	3.79
Return on Total Assets (PBT/Total Assets}	(%)	1.44	4.95	5.59
Return on Investment (ROI) (PBT/Networth)		0.10	0.14	0.18
Debt Equity Ratio (Total Liability/Networth)		5.55	5.73	2.10
Current Ratio (Current Asset/Current Liability)		2.33	3.11	4.37

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS:

During the year the new paper machine has started the commercial production and as a result total production of the company has increased to 66796.311H MT of Kraft paper as against 28003.597 M.T. during the previous year. Total sales realization is Rs.1346.484 Millions during the year as against Rs.628.601 Millions during the previous year and Moreover Cash Generation has increased to rs.71.085 Millions against Rs.23.300 Millions of last year. The directors expect better result6 for the coming year.

FORM 8:

Corporate identity number of the company	U21010DL1990PLC039163
Name of the company	DEVPRIYA INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	4, Shankar Vihar, Vikas Marg, Delhi – 110 092, India sangeetagarwalgm@rediffmail.com
This form is for	Creation of charge
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	Oriental Bank of Commerce, T.P. Nagar, Meerut – 250 001, Uttar Pradesh, India E-Mail: ncodedsc21@gmail.com
Nature of description of the instrument creating or modifying the charge	Agreement for Hypothecation of Plant & Machinery
Date of instrument Creating the charge	26.08.2010
Amount secured by the charge	Rs.667.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interests: BASE Rate+4% Terms of Repayment: Monthly Installments Margin: 25% Extent and Operation of the charge: Equitable Mortgage of Factory Land and Building situated at 8th km Village Saini Mawana Road Meerut Hypothecation of Stocks, Debtors, Plant and Machinery and all moveable assets of the company
Short particulars of the property or asset(s) charged	All Immovable Properties of the company situated at 8th km, Village Saini, Mawana Road, Meerut

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Furniture and Fixture

· Office Equipment

· Electrical Installations

· Vehicles

WEBSITE DETAILS:

PROFILE:

Subject is a paper plant which was incorporated on 9th Feb. 1990 under name and style Dev Pulp Private Limited. The unit started its production of Kraft Paper in December 1992, on 30th may 1996, company’s name was changed from Dev Pulp Private Limited, to Subject Total cost of the project was jointly financed by the PICUP and UPFC and the working capital requirements were fulfilled by Oriental Bank of Commerce. The installed capacity of the plant was 12000 MT. P.A.

The company has diverted its product from Kraft Paper to virgin Kraft Paper from 22+ BF. To 28+ BF. The company is having good hold over the paper market. The company is technically viable and financially sound and the outside term liabilities have been paid.

Virgin Kraft Paper is basically used for the purpose of Industrial packaging and is directly related to the pace of Industrial growth. Its demand is increasing day by day. Company is selling its products through dealers but the actual consumption is in multinational companies. The product is being used by manufacturer of T.V., Refrigerators, Food and Breviary Industries, Medicine companies. The esteemed consumers are Whirlpool, Smit Kline, L.G., Samsung, Onida, Videocon, Nestle, Kazaria Ceremic, Coca Cola, Pepsi etc.

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.47.47
UK Pound	1	Rs.74.96
Euro	1	Rs.65.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		30

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.