MIRA INFORM REPORT

Report Date :

30.04.2012

IDENTIFICATION DETAILS

Name :	MALAR PAPER MILLS PRIVATE LIMITED
Registered Office :	7-2-20, Kunnakudi Road, Pallathur, Sivagangai – 630107, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	26.12.2005
Com. Reg. No.:	18-058430
Capital Investment / Paid-up Capital :	Rs.50.000 Millions
CIN No.: [Company Identification No.]	U21012TN2005PTC058430
TAN No.: [Tax Deduction & Collection Account No.]	MRIM01679G
PAN No.: [Permanent Account No.]	AAECM5321R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of paper pulp and paper boards.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 110000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. Profitability of the company is under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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

LOCATIONS

Registered Office :	7-2-20, Kunnakudi Road, Pallathur, Sivagangai – 630107, Tamilnadu, India
Tel. No.:	91-4333-245795
Fax No.:	91-4333-245804
E-Mail :	malarpaper@yahoo.co.in
Factory :	P.S.P. Industrial Complex, Aranthangi Road, Kallur, Tamilnadu, India

DIRECTORS

As on 30.09.2010

Name :

Padikkasu Balasubramanian

Designation :

Director

Address :

7-2-20, Kunnakudi Road, Pallathur, Sivagangai District – 630107, Tamilnadu, India

Date of Appointment :

26.12.2005

DIN No.:

00554546

Name :

Palaniyandi Ramasamy

Designation :

Director

Address :

18/5D, Kamundi Pottal Street, Puduvayal, Sivagangai District – 630108, Tamilnadu, India

Date of Appointment :

26.12.2005

DIN No.:

00867193

Name :

Palaniyandi Pillai Padikkasu

Designation :

Managing director

Address :

Srivalliammai Rice Mill, Pallathur PO, Karaikudi Sivaganga District – 630107, Tamilnadu, India

Date of Birth/Age :

23.01.2006

Date of Appointment :

26.12.2005

DIN No.:

01243346

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	U15314TN1991PTC021644	MALAR SOLVENT EXTRACTION PRIVATE LIMITED	Managing director	6/11/1991	6/11/1991	-	Active	NO
2	U21012TN2005PTC058430	MALAR PAPER MILLS PRIVATE LIMITED	Managing director	23/01/2006	26/12/2005	-	Active	YES
3	U13209TN2011PTC078969	A L MALAR MINERALS PRIVATE LIMITED	Director	28/01/2011	28/01/2011	16/08/2011	Active	NO

Name :

Periyasamy Palaniyandi

Designation :

Director

Address :

1-17, MVC Street, Pallathur, Sivagangai District – 630107, Tamilnadu, India

Date of Appointment :

26.12.2005

DIN No.:

01889680

Name :

Periyasamy Padikkasu

Designation :

Director

Address :

7-2-20, Kunnakudi Road, Pallathur, Sivagangai District – 630107, Tamilnadu, India

Date of Appointment :

26.12.2005

DIN No.:

01889688

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
PL. Padikkasu	268000
PL. Periyasamy	40000
PL. Ramasamy	15000
P. Balasubramanian	25000
P. Periasamy	25000
PL. Ganapathy	5000
P. Savithri	37000
P. Karpagam	10000
P. Senbagavalli	20000
B. Dhanalakshmi	15000
G Indhra	5000
G Sivasankaran	5000
R Tamilselvi	5000
R Vijaya	15000
S Jeyakarthick	5000
M Subash Chandrabose	5000
Total	500000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors/ Relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of paper pulp and paper boards.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Indian Bank, 100-101 East Avani Moola Street, Madurai Main Branch, Madurai – 625001, Tamilnadu, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Indian Bank – term loan, secured on the fixed assets of the company and on the personal guarantee of the directors	94.107	113.305
Indian Bank – term loan II, secured on the fixed assets of the company and on the personal guarantee of the directors	7.886	9.495
Indian Bank – Madurai – OCC a/c secured on the floating charge of the current assets of the company and on the personal guarantee of the directors	31.008	14.231
Indian Bank – Pallatur, OCC a/c secured on the floating charge of the current assets of the company and on the personal guarantee of the directors	5.024	5.033
Indian Bank – Karaikudi – OCC a/c secured on the floating charge of the current assets of the company and on the personal guarantee of the directors	0.122	0.000
Total	138.147	142.064
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
PL. Padikassu	15.400	10.400
Total	15.400	10.400

Banking Relations :	--
Auditors :
Name :	M. Chinniah and Company Chartered Accountants
Address :	108, Nizam Colony, Pudukkottai – 622001, Tamilnadu, India
PAN.:	AAEPC4281H

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs.50.000 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		50.000	50.000	1.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(21.481)	(8.550)	(15.818)
NETWORTH		28.519	41.450	(14.818)
LOAN FUNDS
1] Secured Loans		138.147	142.064	186.935
2] Unsecured Loans		15.400	10.400	0.000
TOTAL BORROWING		153.547	152.464	186.935
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		182.066	193.914	172.117
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		116.844	128.209	149.820
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	50.818	37.210	57.085
	Sundry Debtors	23.686	25.044	17.503
	Cash & Bank Balances	0.460	3.139	0.589
	Other Current Assets	6.801	4.096	2.613
	Loans & Advances	20.135	17.870	15.676
Total Current Assets		101.900	87.359	93.466
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	41.774	26.781	10.418
	Other Current Liabilities	4.505	6.874	75.752
	Provisions	0.000	0.000	0.000
Total Current Liabilities		46.279	33.655	86.170
Net Current Assets		55.621	53.704	7.296
MISCELLANEOUS EXPENSES		9.601	12.001	15.001
TOTAL		182.066	193.914	172.117

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Turnover	276.575	381.460	79.723
		Other Income	4.387	7.517	0.539
		TOTAL (A)	280.962	388.977	80.262
Less	EXPENSES
		Cost of Sales	168.542	249.821	40.488
		Payment and Provisions to employees	16.464	7.746	2.008
		Operating and other expenses	71.003	75.590	20.497
		Taxes and duties	3.037	8.418	1.613
		TOTAL (B)	259.046	341.575	64.606
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		21.916	47.402	15.656
Less	FINANCIAL EXPENSES (D)		16.225	19.634	8.055
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.691	27.768	7.601
Less/ Add	DEPRECIATION/ AMORTISATION (F)		18.622	20.500	23.419
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		(12.931)	7.268	(15.818)
Less	TAX (H)		0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		(12.931)	7.268	(15.818)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.550	15.818	0.000
	BALANCE CARRIED TO THE B/S		(21.481)	(8.550)	(15.818)
	Earnings/ (Loss) Per Share (Rs.)		(25.86)	NA	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	(4.60)	1.87	(19.71)
Net Profit Margin (PBT/Sales)	(%)	(4.68)	1.91	(19.84)
Return on Total Assets (PBT/Total Assets}	(%)	(5.91)	3.37	(6.5)
Return on Investment (ROI) (PBT/Networth)		(0.45)	0.18	(1.07)
Debt Equity Ratio (Total Liability/Networth)		7.01	4.49	18.43
Current Ratio (Current Asset/Current Liability)		2.20	2.60	1.08

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	Yes
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	No
30) Major Shareholders, if available	Yes

Bankers Charges Report as per Registry

Corporate identity number of the company	U21012TN2005PTC058430
Name of the company	MALAR PAPER MILLS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	7-2-20, Kunnakudi Road, Pallathur, Sivagangai, Tamilnadu, India Email : malarpaper@yahoo.co.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10021298
Type of charge	Immovable property Movable Property
Particular of charge holder	Indian Bank, 100-101 East Avani Moola Street, Madurai Main Branch, Madurai – 625001, Tamilnadu, India Email : ibmadura@indianbank.co.in
Nature of instrument creating charge	Hypothecation agmt of movables for LC Limit Hypothecation agmt of goods AGMT for Inc. in cash credit AGMT for OCC AGMT for hypothecation of movables for cash credit Irrevocable LC
Date of instrument Creating the charge	11.05.2010
Amount secured by the charge	Rs.174.900 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest OCC- BPLR-2%, MTL-I- BPLR+TP-2.5%(10% at present), MTL-II- BPLR+TP-2.5%(10% at present) Terms of Repayment MTL-I- Monthly installment from April 2008 at Rs.1.600 Millions for the first 26 months and Rs.1.700 Millions for the next 52 months besides interest as and when debited. MTL-II- Monthly installment from April 2008 at Rs.0.150 Million for the first 12 months and Rs.0.135 Million for the next 68 months and Rs.0.156 Million for the last installment besides interest as and when debited Margin OCC- 25%, Inland DOC BP/DABP(sublimit)- 25%, IBN (sub limit)- 10%, Import LC- 10%, MTL-1- 25%, MTL-II- 27.77%, Performance Guarantee- 10% Extent and Operation of the charge OCC- Stocks and debtors of less than 6 months MTL- Fixed assets of the company Guarantee- Counter Guarantee by the Company Extension of equitable mortgage on fixed assets
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Property at Pudukottai District within the limits of Rayapuram Village Totaling to 32 acres and 50 cents- S. No. 385/1, 386/2, 387/1, 387/6, 387/10, 387/11, 390/3, 390/4, 390/5, 390/6, 390/7, 390/10, S. No- 391/1, 391/2, 392/1, 393/2, 393/3, 390/2 totaling 21 acres 60 cents S. No- 386/3- 1 acre 54 cents S. No- 388/2, 388/3, 388/5, 388/6, 388/7, 388/8, 388/9, 388/11, 388/12, 388/13, 389/2, 389/5 Totaling 8 acres 32 cents S. No- 390/1- 1 acre 4 cents
Date of instrument modifying the charge
Particulars of the present modification	Loan limit has been modified from Rs.183.300 Millions to Rs.174.900 Millions as follows- (in Millions) Facility Existing Modified OCC 5 6.5 (sub Limit) Inland DOC BP/DABP (1) (1) Import LC (1) 1 MTL-1 118.400 96.600 MTL-II 9.900 8.300 Perf. Guar 5.000 5.000 Total 183.300 174.900

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture

· Office Equipment

· 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.52.68
UK Pound	1	Rs.85.12
Euro	1	Rs.69.38

INFORMATION DETAILS

Report Prepared by :

CTI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		26

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.