MIRA INFORM REPORT

Report Date :

01.02.2012

IDENTIFICATION DETAILS

Name :	SETH BANKATLAL MALU INDUSTRIES PRIVATE LIMITED

Registered Office :	1186, Radha Niwas, Bhavsar Chowk, Gandhibag, Nagpur – 440 002, Maharashtra

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	14.07.2000

Com. Reg. No.:	11-127707

Capital Investment / Paid-up Capital :	Rs.25.000 Millions

CIN No.: [Company Identification No.]	U51900MH2000PTC127707

TAN No.: [Tax Deduction & Collection Account No.]	NGPS05672C

PAN No.: [Permanent Account No.]	AAFCS5692E

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Supplier of Kraft Paper.

No. of Employees :	Information declined by the management.

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING

STATUS

PROPOSED CREDIT LINE

26-40

Capability to overcome financial difficulties seems comparatively below average.

Small

Maximum Credit Limit :	USD 330000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small 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.

INFORMATION DECLINED BY

Name :	Mr. Ashok Karva
Designation :	Accounts Manager
Contact No.:	91-712-2760407
Date :	31.01.2012

LOCATIONS

Registered Office :	1186, Radha Niwas, Bhavsar Chowk, Gandhibag, Nagpur-440002, Maharashtra, India
Tel. No.:	91-712-2760407/2767151/2774170/2730656
Fax No.:	91-712-2730657
E-Mail :	snmaloo@satyam.net.in

DIRECTORS

As on 30.09.2011

Name :

Mr. Satyanrayan Bankatlal Malu

Designation :

Managing Director

Address :

1186 Radha Niwas, Bhavsar Chowk, Gandhibagh, Nagpur – 440 002, Maharashtra, India

Date of Birth/Age :

13.07.1952

Date of Appointment :

14.07.2000

DIN No. :

00444841

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	U51900MH2000PTC127707	SETH BANKATLAL MALU INDUSTRIES PRIVATE LIMITED	Managing director	14-07-00	14-07-00	Active	NO
2	U21095MH2001PTC131095	RUNICHA PAPER MILLS PRIVATE LIMITED	Director	05-03-01	05-03-01	Active	NO
3	U27100MH2004PTC144882	S N MALU STEEL PRIVATE LIMITED	Managing director	05-03-04	05-03-04	Active	NO

Name :

Mr. Ramesh Satyanrayan Malu

Designation :

Director

Address :

1186 Radha Niwas, Bhavsar Chowk, Gandhibagh, Nagpur – 440 002, Maharashtra, India

Date of Birth/Age :

24.03.1980

Date of Appointment :

26.12.2001

DIN No. :

00690290

Other Directorship:

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

U21095MH2001PTC131095

RUNICHA PAPER MILLS PRIVATE LIMITED

Director

05-03-01

Active

U51900MH2000PTC127707

SETH BANKATLAL MALU INDUSTRIES PRIVATE LIMITED

Director

26-12-01

Active

KEY EXECUTIVES

Name :	Mr. Ashok Karva
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders		No. of Shares
Satyanrayan Bankatlal Malu		2100000
Ramesh Satyanrayan Malu		399998
Sunil Shyamsunder Agrawal		2

Total		2500000

As on 30.09.2011

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Kraft Paper.

PRODUCTION STATUS [AS ON31.03.2011]

Particulars

Installed Capacity

Actual Production

[MT]

M.G. Kraft Paper

50 TPD

15808.10

GENERAL INFORMATION

No. of Employees :

Information declined by the management.

Bankers :

Allahabad Bank, Tiwari Sadan, Opposite Hotel Skylark, Gandhibagh, Central Avenue, Nagpur-440002, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Allahabad Bank [Cash Credit] [Secured by hypothecation of stock and debtors and by the first charge on the fixed assets and personal guarantees given by directors]	74.749	0.000
Allahabad Bank Term Loan [Secured by first charge on fixed assets and personal guarantees given by directors]	15.775	0.000
Tata Capital Limited [Car Loan]	2.117	1.913
SBI Car Loan A/C	1.565	0.000
Allahabad Bank Car Loan	3.494	0.000
Bank of India [Cash Credit]	0.000	54.573
Bank of India [Term Loan]	0.000	2.795
Bank of India [Star Mortgage Term Loan]	0.000	2.300
Total	97.700	61.581

Unsecured Loan
From Directors and Others
Ramesh Malu	1.733	1.288
Sunil Agrawal	0.000	4.000
Rajesh Malu	0.019	0.000
Total	1.752	5.288


Banking Relations :	--

Auditors :
Name :	A.S. Daga and Company Chartered Accountants
Address :	301, 602-B Wing, 6^th Floor, Lokmat Bhawan, Ramdaspeth, Nagpur-440012, Maharashtra, India
Tel. No.:	91-712-2461971 / 6617971
Mobile No.:	91-9373114747
Fax No.:	91-712-2461971
E-Mail :	asdaga@dataone.in
Website:	www.asdaga.com
Pan No.:	AAOFA2366H

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Shares	Rs.10/- each	Rs.25.000 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		25.000	12.500	12.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		59.145	70.813	68.822
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		84.145	83.313	81.322
LOAN FUNDS
1] Secured Loans		97.700	61.581	61.859
2] Unsecured Loans		1.752	5.288	10.844
TOTAL BORROWING		99.452	66.869	72.703
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		183.597	150.182	154.025

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		95.482	91.646	89.557
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	85.955	61.773	53.505
	Sundry Debtors	31.954	17.606	19.091
	Cash & Bank Balances	10.636	7.809	6.091
	Other Current Assets	20.249	12.605	14.517
	Loans & Advances	9.211	4.268	3.585
Total Current Assets		158.005	104.061	96.789
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	68.213	44.021	30.004
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	1.835	1.741	2.633
Total Current Liabilities		70.048	45.762	32.637
Net Current Assets		87.957	58.299	64.152

MISCELLANEOUS EXPENSES		0.158	0.237	0.316

TOTAL		183.597	150.182	154.025

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income
		Other Income
		TOTAL (A)	368.187	247.153	306.553

Less	EXPENSES
		Office Expenses
		Administrative Expenses	349.235	232.487	291.995
		Advertising Expenses
		TOTAL (B)	349.235	232.487	291.995

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		18.952	14.666	14.558

Less	FINANCIAL EXPENSES (D)		10.725	7.617	7.240

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.227	7.049	7.318

Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.966	3.919	3.668

	PROFIT BEFORE TAX (E-F) (G)		2.261	3.130	3.650

Less	TAX (H)		1.095	0.770	1.400

	PROFIT AFTER TAX (G-H) (I)		1.166	2.360	2.250

	Earnings Per Share (Rs.)		0.47	1.89	1.80

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.32	0.95	0.73

Return on Total Assets (PBT/Total Assets}	(%)	0.89	1.60	1.96

Return on Investment (ROI) (PBT/Networth)		0.03	0.04	0.04

Debt Equity Ratio (Total Liability/Networth)		2.01	1.35	1.30

Current Ratio (Current Asset/Current Liability)		2.25	2.27	2.97

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors for Indian Raw Material	25.728	19.489	6.245
Sundry Creditors for Imported Raw Material	35.068	20.361	22.449
Sundry Creditors for Other than Raw Material	7.417	4.171	1.310
Total	68.213	44.021	30.004

FINANCIAL HIGHLIGHTS:

Inspite of stiff market conditions and growing competition the company has shown considerable resistance to the prevailing situation and managed to achieve positive result for the year.

CONTINGENT LIABILITIES:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)
Bank guarantees given by the company’s bankers in the normal course of business	4.900	4.585
LC outstanding	54.975	46.058
Total	59.875	50.643

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Electrification

· Furniture and Fixture

· Office Equipment

· Vehicles

· Boilers

· Live Stock

· Computer Software WIP

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.49.68
UK Pound	1	Rs.78.17
Euro	1	Rs.65.52

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	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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.

MIRA INFORM REPORT

85.955

31.954

10.636

20.249

9.211

158.005

68.213

0.000

1.835

70.048

87.957

0.32

0.89

0.03

2.01

2.25

Unit