MIRA INFORM REPORT

Report Date :

08.12.2012

IDENTIFICATION DETAILS

Name :	ECOBOARD INDUSTRIES LIMITED
Formerly Known As :	WESTERN BIO-SYSTEMS LIMITED
Registered Office :	36/1, preet Chambers, 2^nd Floor, Pune – Mumbai Road, Wakdewadi, Pune – 411 003, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	20.11.1991
Com. Reg. No.:	11-064087
Capital Investment / Paid-up Capital :	Rs. 178.320 Millions
CIN No.: [Company Identification No.]	L24239MH1991PLC064087
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchange
Line of Business :	Manufacturer of Plain and Prelaminated Particle Boards from agro residues such as Sugarcane Bagasse, Cotton Stalk, Bajra, Tuar etc
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (36)

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

Maximum Credit Limit :	USD 1600000
Status :	Moderate
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is well established company having moderate track. The appears continues fall in the sales turnover and their appears losses recorded by the company. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	A4 (Cash Credit)
Rating Explanation	ICRA suspended the rating due to lack of information.
Date	April 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office (Bio – Division)	36/1, Preet Chambers, 2^nd Floor, Wakdewadi, Pune Mumbai Road, Pune-411 003, Maharashtra, India
Tel. No.:	91-20-25513669, 40079454
Fax No.:	91-20-25513669
E-Mail :	hrd@ecoboardindia.com bsd@ecoboardindia.com cs@ecoboardindia.com info@ecoboardindia.com
Website :	www.ecoboardindia.com
Area :	6000 sq. ft.
Location :	Owned
Corporate office :	65/1 A, “Akarshak”, ECO House, Opposite Nal Stop, Karve Road, Pune 411 004, Maharashtra, India
Tel. No.:	91-20-25432345
Fax No. :	91-20-25465328
E-Mail :	info@ecoboardindia.com ecoinfo@ecoboardindia.com
Website :	www.ecoboardindia.com
Factory 1 :	Jambhulwadi, Near Islampur, Walwa, Sangli-415 407, Maharashtra, India
Tel. No.:	91-2342-252818
Fax No.:	91-2342-252819
E-Mail :	islampur@ecoboardindia.com
Factory 2 :	Near Akluj, Post Velapur, Malshiras, Solapur-413 118, Maharashtra, India
Tel. No.:	91-2185-245261 / 245262
Fax No.:	91-2185-245203
E-Mail :	velapur@ecoboardindia.com
Branches :	Located At · Pune · Mubai · Ahmedabad · Kolhapur · Hyderabad · Bangalore · Vizag · Cochin · Chennai · Bhubaneshwar · Coimbatore · Delhi · Chandigarh · Bhopal · Kolkata · Raipur

DIRECTORS

AS ON 31.03.2012

Name :	Mr. V S Raju
Designation :	Chairman
Name :	Mr. P. Satyanarayana Raju
Designation :	Director
Name :	Mr. G. Ramakrishna Raju
Designation :	Managing Director
Name :	Mr. Srinivas Raju P.
Designation :	Director
Name :	Mr. Ramchandra Raju P.S.
Designation :	Director
Name :	Dr. N.A. Ramaiah
Designation :	Director
Name :	Mr. U S Kadam
Designation :	Director
Name :	Mr. V P Rane
Designation :	Director
Name :	Mr. Praveen Kumar Raju Gottumukkala
Designation :	Director
Name :	Mr. Narasimhan Krishnan
Designation :	Independent Director

KEY EXECUTIVES

Name :	Mr. Pramod Patil
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2012

Category of Shareholder	No. of Shares	% of No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	9987913	56.01
Sub Total	9987913	56.01
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	9987913	56.01
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	1900	0.01
Foreign Institutional Investors	7800	0.04
Sub Total	9700	0.05
(2) Non-Institutions
Bodies Corporate	1475364	8.27
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	4533680	25.42
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1230521	6.9
Any Others (Specify)	594822	3.34
Clearing Members	214591	1.2
Market Maker	6475	0.04
Non Resident Indians	48309	0.27
Overseas Corporate Bodies	250000	1.4
Hindu Undivided Families	75447	0.42
Sub Total	7834387	43.93
Total Public shareholding (B)	7844087	43.99
Total (A)+(B)	17832000	100
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0
(1) Promoter and Promoter Group	0	0
(2) Public	0	0
Sub Total	0	0
Total (A)+(B)+(C)	17832000	0

BUSINESS DETAILS

Line of Business :

Manufacturer of Plain and Prelaminated Particle Boards from agro residues such as Sugarcane Bagasse, Cotton Stalk, Bajra, Tuar etc

Products :

ITC CODE	PRODUCTS
44103110	Bagasse Board
44101110	Wood Board
84198904	Big Gas Plants

PRODUCTION STATUS (AS ON : 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Particle Board Division	Lakhs M2	51.00	1653993 M2
Anaerobic Waste water treatment plants (Biogas Plant) and Other Plants	--	--	Parts and Components of 7 Plants

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Bank of Maharashtra

· Andhra Bank

· State Bank of India

Facilities :

Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Long Term Borrowings
Vehicle loans from bank	0.928	0.140
Short Term Borrowings
Loans repayable on demand
Cash credit facilities from banks	219.707	185.513
TOTAL	220.635	185.653
Unsecured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Long Term Borrowings
From directors	21.461	0.000
TOTAL	21.461	0.000
NOTES LONG TERM BORROWINGS Vehicle loan from bank is repayable by way of 36 equated monthly installments ending July 2014. No repayment date is stipulated for Directors’ deposits. However it is agreed by the Directors that the deposits shall not be repayable before 1st April 2013.

Banking Relations :	--
Auditors :
Name :	Chaturvedi SK and Fellows Chartered Accountant
Address :	410, Dev Plaza, SV Road, Andheri (West), Mumbai - 400 058, Maharashtra, India
Tel. No.:	91-20-25432345
Fax No.:	91-20-25465328
Associates :	· Vesar Furnitek Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
23000000	Equity Shares	Rs.10/- each	Rs. 230.000 Millions
200000	Preference Shares	Rs.100/- each	Rs. 20.000 Millions
	TOTAL		Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
17832000	Equity Shares	Rs.10/- each	Rs. 178.320 Millions

NOTES

Rights, preferences and restrictions attached to shares

The Company has only one class of Equity shares. Each Share has a paid up value of Rs.10/-. Every shareholder is

entitled to one vote per share. Each share is entitled to dividend at the rate as may be declared by the Board and approved

by the shareholders at the Annual General Meeting.

Details of shareholders holding more than 5% equity shares in the Company :

Particulars	As at 31.03.2012
	No. of Shares	% of holding
Jayalakshmi Gottumukkala	2765637	15.51%
Ramakrishna Raju Gottumukkala	2476225	13.88%
Satyavathi Vegesna	1094147	6.14%
P. Satyanarayana Raju	905900	5.08%

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		178.320	178.320	179.620
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		237.137	257.994	297.952
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		415.457	436.314	477.572
LOAN FUNDS
1] Secured Loans		220.635	185.653	227.746
2] Unsecured Loans		21.461	0.000	59.736
TOTAL BORROWING		242.096	185.653	287.482
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		657.553	621.967	765.054
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		335.597	375.325	417.989
Capital work-in-progress		0.769	0.769	0.815
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	292.742	228.442	277.410
	Sundry Debtors	51.901	69.717	81.998
	Cash & Bank Balances	14.870	19.535	29.381
	Other Current Assets	24.329	0.000	0.000
	Loans & Advances	55.579	62.576	59.184
Total Current Assets		439.421	380.270	447.973
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	73.450	65.758	55.274
	Other Current Liabilities	37.319	60.182	37.002
	Provisions	7.465	8.457	9.447
Total Current Liabilities		118.234	134.397	101.723
Net Current Assets		321.187	245.873	346.250
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		657.553	621.967	765.054

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	327.550	429.454	484.495
		Other Income	3.134	4.209	43.358
		TOTAL (A)	330.684	433.663	527.853
Less	EXPENSES
		Cost of materials consumed	184.469	195.751	280.731
		Purchases of stock-in-trade	0.000	0.204	0.000
		Employee benefits expense	28.140	33.593	0.000
		Manufacturing and other operating expenses	75.512	86.886	193.712
		Administration and other charges	30.571	34.341	0.000
		Excise Duty Paid	0.000	0.000	2.650
		Selling and distribution expenses	20.785	37.740	0.000
		Changes in inventories of finished goods, work-in-progress	(41.067)	29.004	26.618
		Exceptional items	(25.190)	(21.048)	0.000
		TOTAL (B)	273.220	396.471	503.711
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		57.464	37.192	24.142
Less	FINANCIAL EXPENSES (D)		36.466	35.541	27.077
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.998	1.651	(2.935)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		41.855	41.608	43.503
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(20.857)	(39.957)	(46.438)
Less	TAX (H)		0.000	0.000	0.381
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(20.857)	(39.957)	(46.819)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	(265.538)
	BALANCE CARRIED TO THE B/S		NA	NA	(312.357)
	IMPORTS
		Raw Materials	2.447	6.948	53.488
		Stores & Spares	3.501	0.995	2.732
	TOTAL IMPORTS		5.948	7.943	56.220
	Earnings Per Share (Rs.)		(1.17)	(2.24)	(2.63)

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012
	1^st Quarter	2^nd Quarter
Net Sales	90.880	89.710
Total Expenditure	79.950	78.470
PBIDT (Excl OI)	10.930	11.240
Other Income	0.410	0.380
Operating Profit	11.340	11.620
Interest	9.910	10.800
Exceptional Items	0.000	0.000
PBDT	1.430	0.820
Depreciation	10.460	10.450
Profit Before Tax	(9.020)	(9.630)
Tax	0.000	0.000
Provisions and contingencies	0.000	0.000
Profit After Tax	(9.020)	(9.630)
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	(9.020)	(9.630)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(6.31)	(9.21)	(8.87)
Net Profit Margin (PBT/Sales)	(%)	(6.37)	(9.30)	(9.58)
Return on Total Assets (PBT/Total Assets}	(%)	(2.69)	(5.29)	(5.36)
Return on Investment (ROI) (PBT/Networth)		(0.05)	(0.09)	(0.10)
Debt Equity Ratio (Total Liability/Networth)		0.87	0.73	0.81
Current Ratio (Current Asset/Current Liability)		3.72	2.83	4.40

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
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	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

BUSINESS

The business environment for company’s products remained challenging during the year. Company tried to pass on the increase in input costs to the customers. This faced resistance from the customers leading to fall in sales of particle boards as well as biogas systems. It was only during later part of the year that the customers accepted increase in prices. Management’s persistence with the increased selling price for its products helped in bringing down the losses from ordinary business activities. Management hopes to regain its sales volumes during the next year which should bring down the loss even further. Company had orders in hand of the value of more than Rs. 60.000 Millions for bio-gas systems.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW

Company has made financial statements as required by Companies Act, 1956, and other applicable laws. Financial statements have been made on prudent and reasonable basis. Sales were recorded at Rs. 327.500 Millions as compared to Rs. 429.400 Millions of the previous year.

INDUSTRY OUTLOOK

The Government has taken some positive measures to re-charge the industry. The Central Government has exempted boards manufactured from Bagasse from the Excise Duty. Moreover, the Maharashtra Government has also reduced Value-Added Tax on particle board made from bagasse/other Agri crop residue from 12.5 to 5 per cent. The tax relief does provide some succor to the beleaguered industry. However, there is more that the government can do. It should provide more fiscal and other inventives to encourage particle-board products and take measures to discourage use of plywood and wood boards. Every year, the country burns over 150 million tonnes (mt) of agricultural waste across farms. This pollutes the environment with high carbon emission. This agricultural waste can be a raw material to manufacture wood-free particle boards as well as a fuel to generate renewable energy. But that can happen if there is a mechanism to collect this huge agricultural waste from across farms and transport them to Companies like Ecoboard. It is neither viable for farmers nor particle board manufacturers to collect the farm residue. The Government must include residue collection in its MNREGS programme. This will help particle board industry, involve farmers in agro-based industries and also prevent burning of agro-waste, which is one of the biggest sources of pollution.

COMPANY OUTLOOKS

Company has close down the Islampur plant due to non-availability of bagasse around the Islampur and shifted its production to the larger Velapur plant. Plans are afoot to sell off the Islampur plant, which has 1,00,000 sq.ft. of built-up area, and the surrounding 31 -acre plot, which can fetch good returns. The Velapur plant, situated on a 90 -acre with a built-up area of 1,50,000 sq. ft has a higher production capacity. Besides, the raw material is available there in plenty and at a lower price comparatively making it viable for us to increase production without raising the overheads.

FUTURE OUTLOOK AND CHALLENGES

Company faces host of problems. A major challenge is the spiraling price of the main raw material bagasse. It takes about 4 tonnes of bagasse to make 1 tonne of particle board. The price of bagasse is quoting at about Rs. 2,000 per tonne. It is ironical that the waste (bagasse) today costs more than the sugarcane and is severely eating into margins. The exponential rise in the bagasses price is mainly owing to its huge demand for cogeneration, with State Government buying power so produced at high prices. Besides, dumping of particle boards by China, Malaysia, New Zealand and Thailand has severely affected the Indian industry. Then there is a flood of imported wood and plywood boards from Malaysia, Indonesia, Thailand and some European countries, further aggravating the existing woes.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
a) Claims against the Company not acknowledged as debt Excise duty claims disputed in appeals	14.162	5.032
b) Letters of credit and bank guarantees outstanding (net of margin deposits)	23.109	14.259

fixed assets

· Land

· Building

· Plant and Machinery

· Electrical Installations

· Furniture and Fixtures

· Equipments

· Vehicles

· Tools and Patterns

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER HALF YEAR ENDED 30^TH SEPTEMBER 2012

(Rs. in millions)

Sr. No.	Particular	Quarter Ended		Half Year Ended
		30.09.2012 (Unaudited)	30.06.2012 (Unaudited)	30.09.2012 (Unaudited)
1.	Net Sales/Income from Operations	89.710	90.881	180.591
2.	Expenditure
	Cost of Materials Consumed	61.066	42.788	103.854
	(Increase) / Decrease in Stock in Trade	(22.254)	5.008	(17.246)
	Employees Cost	7.405	7.387	14.792
	Power and Fuel	9.160	8.214	17.374
	Depreciation	10.449	10.464	20.913
	Other Expenditure	23.098	16.551	39.649
	Total	88.924	90.412	179.336
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	0786	0.469	1.255
4.	Other Income	0.382	0.414	0.796
5.	Profit Before Interest and Exceptional Items (3+4)	1.168	0.883	2.051
6.	Interest	10.799	9.905	20.704
7.	Profit After Interest but before Exceptional Items (5-6)	(9.631)	(9.022)	(18.653)
8.	Exceptional Items	--	--	--
9.	Profit from Ordinary Activities before Tax (7+8)	(9.631)	(9.022)	(18.653)
10.	Tax Expense	0.000	0.000	0.000
11.	Net Profit from Ordinary Activities after Tax (9-10)	(9.631)	(9.022)	(18.653)
12.	Extraordinary Item (net of expense)	--	--	--
13.	Net Profit for the period (11-12)	(9.631)	(9.022)	(18.653)
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	178.320	178.320	178.320
15.	Reserves Excluding Revaluation Reserve	--	--	--
16.	Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	(0.54)	(0.51)	(1.05)
	b) Basic and diluted EPS after extraordinary items	(0.54)	(0.51)	(1.05)
17.	Public Shareholding
	-Number of Shares	7844087	7844087	7844087
	- Percentage of Shareholding	43.99%	43.99%	43.99%
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	0	0	0
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	0.00%	0.00%	0.00%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	0.00%	0.00%	0.00%
	b) Non Encumbered
	- Number of Shares	9987913	9987913	9987913
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00%	100.00%	100.00%
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	56.01%	56.01%	56.01%

PARTICULARS	30.09.2012
Equity and liabilities
Shareholders' fund
Share capital	178.320
Reserve & surplus	218.483
Sub-total - Shareholders' funds	396.803
Non - current liabilities
Long term borrowings	9.714
Other long-term liabilities	6.312
Long term provisions	7.833
Sub-total - Non-current liabilities	23.859
Current liabilities
Short term borrowings	231.291
Trade payables	49.737
Other current liabilities	45.043
Sub-total - Current liabilities	326.071
Total - Equity & Liabilities	746.733
Assets
Non-current assets
Fixed assets	316.709
Long term loans & advances	4.217
Sub-total - Non-current Assets	320.926
Current assets
Inventories	298.456
Trade receivables	56.450
Cash & bank balances	14.344
Short term loans & advances	56.557
Sub-total - Current Assets	425.807
Total – Assets	746.733

SEGMENT REPORTING FOR THE QUARTER ENDED 31^ST MARCH 2012

(Rs. in millions)

Sl. No.	Particulars	Quarter Ended		Half Year Ended
		30.09.2012	30.06.2012	30.09.2012
		(Unaudited)	(Unaudited)	(Unaudited)
1	Segment Revenue
	Particle Boards	56.169	55.001	111.170
	Bio Systems	33.541	35.880	69.421
	Total	89.710	90.881	180.591
2	Segment Results
	Particle Boards	(5.398)	(5.358)	(10.756)
	Bio Systems	6.566	6.241	12.807
	Total	1.168	0.883	2.051
	Less :Interest	10.799	9.905	20.704
	Profit Before Tax	(9.631)	(9.022)	(18.653)
	Less : - Income Tax (Including fringe benefit tax)	0.000	0.000	0.000
	Profit After Tax	(9.631)	(9.022)	(18.653)
3	Capital Employed
	Particle Boards	359.107	413.433	359.107
	Bio Systems	37.696	31.725	37.696
	Total	396.803	445.158	396.803

NOTES

1. The previous periods figures have been regrouped to conform to current periods required classification.

2. Exceptional item includes profit on sale of land at non plant location.

3. The above results have been considered bu audit committee and approved by the Board of Directors in their respective meetings held on 9^th November, 2012.

4. Status of investors complaints for the quarter ended 30^th September 2012 – complaints received and attended-1, Complaints pending – Nil.

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. 54.46
UK Pound	1	Rs. 87.62
Euro	1	Rs. 71.11

INFORMATION DETAILS

Report Prepared by :

DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		36

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.