MIRA INFORM REPORT

Report Date :

14.04.2012

IDENTIFICATION DETAILS

Name :	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED
Registered Office :	944 (Old 1680/31) Ramani’s Regency, Trichy Road, Ramanathapuram, Coimbatore-641045, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.11.2003
Com. Reg. No.:	18-010851
Capital Investment/ Paid-up Capital:	Rs.100.000 Millions
CIN No.: [Company Identification No.]	U21012TZ2002PTC010851
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Importer and Exporter of Kraft Paper and Duplex Board.
No. of Employees:	800 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 1522000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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. Srinivasan
Designation :	General manger
Contact No.:	91-9600923881
Date :	10.04.2012

LOCATIONS

Registered Office :	944 (Old 1680/31) Ramani’s Regency, Trichy Road, Ramanathapuram, Coimbatore-641045, Tamilnadu, India
Tel. No.:	91-422-4300445
Mobile No.:	91-9600923881 (Mr. Srinivasan)
Fax No.:	91-422-4300449
E-Mail :	sales@sripathipaperboards.com karhikeyan@sripthi.net gmf@sripathi.net
Website :	http://www.sripthipaperboards.com
Area :	Owned
Corporate Office :	994, Ramani’s Regency, 2nd Floor, Trichy Road, Coimbatore-641045, Tamilnadu, India
Factory 1 :	Sukkiravarpatti, Sivakasi-626130, Tamilnadu, India
Tel. No.:	91-4562-238171 / 238117 / 238014 / 238049
Fax No.:	91-4562-238147
E-Mail :	sales@sripathi.net
Factory 2 :	SF No.297/2, 308/1, Rajan Nagar, Puduvadavalli, Sathyamangalam-638401, Tamilnadu, India
Tel. No.:	91-4295-243463
Fax No.:	91-4295-243473

DIRECTORS

Name :

Mr. Ramachandran Krishnasamy

Designation :

Chairman and Managing Director

Address :

2/3, R K Gardens, Chandra Gandhi Nagar, Extension Sowripalayam Post, Coimbatore-641028, Tamilnadu, India

Date of Birth/Age :

30.04.1961

Date of Appointment :

19.11.2003

Din Number:

00251421

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	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	29/05/2002	29/05/2002	-	Not Available for eFiling	NO
2	U51909TZ2003PTC010770	SINGLE WINDOW COMMODITIES PRIVATE LIMITED	Director	11/9/2003	11/9/2003	-	Active	NO
3	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Managing director	1/4/2011	19/11/2003	-	Active	NO
4	L67120TZ1995PLC005763	SINGLE WINDOW SECURITIES LIMITED	Managing director	1/10/2009	1/10/2004	-	Active	NO
5	U29120TZ2010PTC015883	K.R.S. ENGINEERING INDIA PRIVATE LIMITED	Director	10/3/2010	10/3/2010	-	Active	NO
6	U02102TZ2005PTC011874	SUDIRMAN PAPER PRIVATE LIMITED	Director	11/3/2010	11/3/2010	-	Active	NO
7	U74900TN2008NPL067185	SOUTH INDIAN KRAFT PAPER MILLS ASSOCIATION	Director	28/09/2011	28/09/2011	-	Active	NO

Name :

Mr. Krishnasamy Ravichandran

Designation :

Managing Director

Address :

Old No.725/6 C, New No.350, Standard Colony, Thiruthangal, Sivakasi, Virudhunagar-626130, Tamilnadu, India

Date of Birth/Age :

29.06.1963

Date of Appointment :

19.11.2003

Din Number:

01120533

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	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	19/08/2002	19/08/2002	-	Not Available for eFiling	NO
2	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Managing director	1/4/2011	19/11/2003	-	Active	NO
3	U74900TN2008NPL067185	SOUTH INDIAN KRAFT PAPER MILLS ASSOCIATION	Director	30/09/2010	3/3/2010	28/09/2011	Active	NO
4	U02102TZ2005PTC011874	SUDIRMAN PAPER PRIVATE LIMITED	Director	11/3/2010	11/3/2010	-	Active	NO

Name :

Mr. Ayyappan Ragupathy

Designation :

Whole Time Director

Address :

471 A, Vadakku Radaveethi, Thiruthangal, Virudhunagar-626130, Tamilnadu, India

Date of Birth/Age :

11.02.1958

Date of Appointment :

19.11.2003

Din Number:

01128755

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	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	19/08/2002	19/08/2002	-	Not Available for eFiling	NO
2	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Whole-time director	1/4/2011	19/11/2003	-	Active	NO

Name :

Mr. Alagamperumal Subbiah

Designation :

Director

Address :

54, Azhagapuri, Virudhunagar-626005, Tamilnadu, India

Date of Birth/Age :

03.06.1960

Date of Appointment :

19.11.2003

Din Number:

01240122

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	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	19/08/2002	19/08/2002	-	Not Available for eFiling	NO
2	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Director	19/11/2003	19/11/2003	-	Active	NO

Name :

Mr. Veerappan Nagaraj

Designation :

Director

Address :

1/18, Azhagapuri, Meesalur PO Virudhunagar-626003, Tamilnadu, India

Date of Birth/Age :

09.05.1962

Date of Appointment :

19.11.2003

Din Number:

01240207

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	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	19/08/2002	19/08/2002	-	Not Available for eFiling	NO
2	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Director	19/11/2003	19/11/2003	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 23.09.2011)

Names of Shareholders	No. of Shares
R Krishnaswamy	4262225
K Chitrabanu	3143000
R Jayaprakash	100000
B Senthil Kumar	52500
S. Jagannathan	27320
P.R. Krishnamoorthy	5000
V. Vasanthi	50000
Kalarani	50000
Megastox Fin Research Private Limited	746950
B. Anuradha	10000
K Ravichandran	757525
R Rukmani	25000
V Nagaraj	339875
A Raghupathi	132330
A Subbiah	198275
S Alagudurai	100000
Total	10000000

(AS ON 23.09.2011)

Category	Percentage
Bodies corporate	7.47
Directors or relatives of directors	92.53
Total	100

BUSINESS DETAILS

Line of Business :

Manufacturer, Importer and Exporter of Kraft Paper and Duplex Board.

Products:

ITC Number of Products	48
Description of Product or services	Paper and Board

Exports :

Products :

· Kraft Paper

· Duplex Board

Countries :

· Srilanka

· Middle East

Imports :

Products :

Raw Material

Countries :

Srilanka

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Value
Licensed Capacity	TPA	72000
Installed Capacity	TPA	NA
Actual Production
Finished Goods	TPA	71150.98

GENERAL INFORMATION

Customers:

ITC Limited

Suppliers:

Harman Associates (India) Private Limited

No. of Employees :

800 (Approximately)

Bankers :

· City Union Bank of India, 13 – Chairman NPSN Arumuga Nadar Road, Sivakasi – 626123, Tamilnadu, India

· Industrial Development Bank of India Limited, Stock Exchange Building, 683-686, Trichy Road, Coimbatore, Tamilnadu, India

· State Bank of Travancore, Coimbatore Branch

Facilities :

Term loan Rs. 330.000 Millions From (State Bank of Travancore)

Rs. In Millions

Secured Loan	31.03.2011	31.03.2010
Rupee term loan secured	504.303	339.062
Working Capital Loans secured	364.807	250.522
Total	869.110	589.584
Unsecured Loan	31.03.2011	31.03.2010
Other Debt Unsecured	183.610	44.030
Total	183.610	44.030

Banking Relations :	--
Auditors :
Name :	Bakthavachalam and Company Chartered Accountant
Address :	15/67 A, KG Layout, Bharathi Park, 8^th Cross Saibaba Colony, Coimbatore-641011, Tamilnadu, India
PAN No.:	AADFB5331Q
Associates :	Balaji Packaging

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital:

No. of Shares	Type	Value	Amount
10,000,000	Equity Share	Rs.10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,000,000	Equity Share	Rs.10/- each	Rs. 100.000 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		100.000	100.000	77.219
2] Share Application Money		31.611	23.032	26.440
3] Reserves & Surplus		248.985	201.209	122.768
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		380.596	324.241	226.427
LOAN FUNDS
1] Secured Loans		873.477	592.561	410.894
2] Unsecured Loans		183.610	44.030	21.108
TOTAL BORROWING		1057.087	636.591	432.002
DEFERRED TAX LIABILITIES		87.195	0.000	0.000
TOTAL		1524.878	960.832	658.429
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		785.636	454.493	411.476
Capital work-in-progress		63.162	156.188	11.852
INVESTMENT		0.079	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	209.261	129.014	59.135
	Sundry Debtors	332.622	199.816	160.680
	Cash & Bank Balances	58.700	60.541	57.570
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	244.970	108.007	66.836
Total Current Assets		845.553	497.378	344.221
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	109.011	106.955	78.358
	Other Current Liabilities	33.579	24.292	23.902
	Provisions	27.022	16.100	6.940
Total Current Liabilities		169.612	147.347	109.200
Net Current Assets		675.941	350.31	235.021
MISCELLANEOUS EXPENSES		0.060	0.120	0.080
TOTAL		1524.878	960.832	658.429

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1890.800	1338.028	1174.390
		Income from Windmill Operations		23.962	11.553
		Other Income		1.815	1.930
		Difference in Inventory		8.959	0.646
		TOTAL (A)	2007.000	1372.764	1188.519
Less	EXPENSES
		Operating Expenses	1735.200	1173.430	1039.202
		TOTAL (B)		1173.430	1039.202
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		271.800	199.334	149.317
Less	FINANCIAL EXPENSES (D)		82.700	55.140	52.914
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		181.100	144.194	96.403
Less/ Add	DEPRECIATION/ AMORTISATION (F)		64.000	49.653	41.676
	PROFIT BEFORE TAX (E-F) (G)		125.100	94.541	54.727
Less	TAX (H)		42.500	29.427	11.325
	PROFIT AFTER TAX (G-H) (I)		82.600	65.114	43.402
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		68.620	3.506	0.104
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	0.000	40.000
	BALANCE CARRIED TO THE B/S		151.122	68.620	3.506
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	253.247	75.076	21.111
	IMPORTS		0.000	331.938	281.202
	Earnings Per Share (Rs.)		8.38	6.51	5.62

Expected Sales (2012-2013): Rs. 3000.000 Millions

The above information has been parted by Mr. Srinivasan

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.12	3.65	2.28
Net Profit Margin (PBT/Sales)	(%)	6.62	4.66	3.44
Return on Total Assets (PBT/Total Assets}	(%)	7.67	7.24	4.52
Return on Investment (ROI) (PBT/Networth)		0.33	0.24	0.18
Debt Equity Ratio (Total Liability/Networth)		0.45	2.39	3.05
Current Ratio (Current Asset/Current Liability)		4.99	3.15	2.79

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
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	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	Yes
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	Yes
Major Customers	Yes
Payment Terms	Yes
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes

INDUSTRY OVERVIEW AND REVIEW OF OPERTIONS

Demand for Kraft paper and paperboard closely follows the economic growth of the company and has a positive correlation with the prevailing economic trends. As the Indian economy grows, our industry has along with it. But the market environment during the financial year was challenging, on account of entry of small players in large numbers.

The company continued to strengthen its position in this rapidly developing market and was able to withstand competition and fare better in archiving a top line of Rs. 2004.900 Millions in comparison with the previous year turnover of Rs. 1372.800 Millions, a growth of 36%

During the year the company’s limit at Sivakasi, Tamilnadu was awarded Water Efficient Unit by Confederation of Indian (CII) at the National Water Management Award 2010, for judicious use of water

OUTLOOK FOR THE CURRENT YEAR

As envisaged the Company’s Co-generation plant was successfully commissioned during September 2010 and has started to meet our power requirements. The surplus energy after captive consumption was sold to third parties apart from Tamil Nadu Electricity Board during the year ended 31.03.2011. The full benefit of the investment in Co-generation power plant is expected to be reaped in the Current Fiscal. The Company has diversified into writing paper segment, by investing in M/s Sudirman Paper Private Limited, having its Unit at Sathyamangalam, Erode District and has embarked on a programme to revitalize the operations of that Company, keeping in mind long

FIXED ASSETS

· Factory Land

· Wind Mill

· Factory Building

· Borewell

· Machinery

· Computer

· Furniture and Fixtures

· Vehicles

· Wind mill

TRADE REFERNCES

ITC Limited

Harman Associate (India) Private Limited

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. 51.42
UK Pound	1	Rs. 81.93
Euro	1	Rs. 67.67

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.