MIRA INFORM REPORT

Report Date :

03.02.2012

IDENTIFICATION DETAILS

Name :	SHREE GAJANAN PAPER AND BOARDS PRIVATE LIMITED

Registered Office :	Plot No.781/1, GIDC, 40 M Shed Area, Vapi, Valsad – 396195, Gujarat

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	16.06.1995

Com. Reg. No.:	04-26358

Capital Investment / Paid-up Capital :	Rs.45.300 Millions

CIN No.: [Company Identification No.]	U21010GJ1995PTC026358

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of Duplex Board and Kraft Paper

No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 280000

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 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 – September 30, 2011

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

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

LOCATIONS

Registered Office :	Plot No.781/1, GIDC, 40 M Shed Area, Vapi, Valsad – 396195, Gujarat, India
Tel. No.:	91-2632-3091376/ 91-260-2400571/ 2400965/ 3291376
Mobile No.:	91-982560675 (Mr. Mukesh Mandowar)
Fax No.:	91-260-2401328
E-Mail :	sgpbvapi@yahoo.co.in sgpbvapi@rediffmail.com
Website :	http://www.shreegajananpaper.com
Area :	7000 sq. ft.
Location :	Owned

Marketing Office :	54 New Suri Building, Indulker Marg, Ville Parle East, Mumbai – 400057, Maharashtra, India
Tel. No.:	91-22-28315488/ 28262302/ 26166488/ 32513182
Fax No.:	91-22-26166488

DIRECTORS

As on 30.09.2010

Name :

Mr. Sunil Madanlal Agarwal

Designation :

Managing Director

Address :

902, Orchid Tower, Chharwada Road, Vapi – 396191, Gujarat, India

Date of Birth/Age :

03.09.1964

Qualification :

B. Com

Date of Appointment :

16.06.1995

DIN No.:

00118100

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	U21010GJ1995PTC026358	SHREE GAJANAN PAPER AND BOARDS PRIVATE LIMITED	Managing director	16-06-95	16-06-95	-	Active	NO
2	U21010GJ1995PTC027384	SUDHA PAPER BOX PRIVATE LIMITED	Director	07-09-95	07-09-95	-	Active	NO
3	U21000GJ2010PTC060957	SOUTH GUJARAT PAPERS PRIVATE LIMITED	Director	03-06-10	03-06-10	19-04-11	Active	NO

Name :

Mr. Mohmadismail Bachhu Chaudari

Designation :

Director

Address :

S I Mansion, Godal Nagar, Inmrannagar, Vapi, Valsad – 396191, Gujarat, India

Date of Birth/Age :

22.08.1963

Qualification :

B. Com

Date of Appointment :

01.03.1999

DIN No.:

00118194

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	U21010GJ1995PTC027384	SUDHA PAPER BOX PRIVATE LIMITED	Director	30-09-98	30-09-98	-	Active	NO
2	U21010GJ1995PTC026358	SHREE GAJANAN PAPER AND BOARDS PRIVATE LIMITED	Whole-time director	01-03-99	01-03-99	-	Active	NO

Name :

Mr. Sanjay Kumar Agarwal

Designation :

Director

Address :

Gayatri Society, N H No.8, Killa Pardi, Valsad – 396125, Gujarat, India

Date of Birth/Age :

16.03.1971

Qualification :

B. Com

Date of Appointment :

16.06.1995

DIN No.:

00154111

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	U21010GJ1995PTC026358	SHREE GAJANAN PAPER AND BOARDS PRIVATE LIMITED	Whole-time director	16-06-95	16-06-95	-	Active	NO
2	U21010GJ1995PTC027384	SUDHA PAPER BOX PRIVATE LIMITED	Director	07-09-95	07-09-95	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders		No. of Shares
Sunil M. Agarwal		1068150
Madanlal R. Agarwal		341000
Sanjay M. Agarwal		435350
Sureshbhai S.		5000
Mitesh I. Desai		32500
Nihar S. Shah		15000
Shrikant S. Agarwal		30875
Induben P. Shah		15000
Viren P. Shah		20000
Omprakash K. Singh		20000
Kuniyankutty H. Mohiddin		5000
Biren H. Mohiddin		5000
Ismail B. Chaudhary		354090
Abdul B. Chaudhary		316100
Nazma I. Chaudhary		343825
Sudha Paper Box Private Limited		522500
Purnima S. Agarwal		112000
Rashmi S. Agarwal		334500
Ishaque B. Chaudhary		204110
Kiran R. Patil		40000
Ismail H. Nathani		100000
Shobhadevi R. Kedia		15000
Bimal R. Kedia		20000
Vishnu R. Kedia		15000
Sonali A. Jaiswal		25000
Rishi K. Kedia		50000
TOTAL		4445000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Bodies corporate	11.75
Directors or relatives of Directors	74.35
Other top fifty shareholders	13.90
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Duplex Board and Kraft Paper

Products :

Products Description	Item Code No.

M. G. Kraft Paper	4804.90

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	*Installed Capacity**	Actual Production

M G Kraft Paper	MT	NA	43800	22968

Note: * on three shift basis as certified by the management and accepted by the auditors being technical matter

GENERAL INFORMATION

No. of Employees :

100 (Approximately)

Bankers :

Bank of Baroda, Vapi Industrial Estate, SSI Branch, C/M -14, Near Char Rasta GIDC, Vapi – 396195, Gujarat, India
Industrial Development Bank of India Limited, C-1, Advance Complex, Near Hotel Green View, National Highway No.8, Vapi – 396191, Gujarat, India
ICICI Bank Limited

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Term Loan
IDBI Bank (Secured by way of a first charge created through an equitable mortgage of immovable properties)	33.477	18.754
Car Loan
ICICI Bank Limited	0.090	0.340
Sundram Finance Limited (Secured by way of mortgage of specific motor car against which such loans are taken)	1.529	0.000
Working Capital
Cash Credit – IDBI Bank (Secured by creation of first charge by way of mortgage/ hypothecation of all present and future properties of the company movable and immovable property, inventories, book debts etc.)	86.183	71.014
Total	121.279	90.108

Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Directors	0.541	0.554
From Shareholder	0.763	0.763
From Bank and Financial Institution	3.244	5.629
From Others	8.501	17.041
Trade Deposits	49.650	12.050
Total	62.699	36.037

Banking Relations :	--

Financial Institution :	Sundram Finance Limited

Auditors :
Name :	Mathew and Associates Chartered Accountant
Address :	206-207, Panchratna Building, N.H.8, Vapi – 396195, Gujarat, India
PAN.:	AJKPM5631K

Enterprise in which key controls :	Shree Sudha Transport Sudha Paper Box Private Limited Sudha Packaging

CAPITAL STRUCTURE

As on 30.09.2010

Authorised capital of Rs.50.000 Millions

Issued, Subscribed and Paid up Capital of Rs.45.300 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4445000	Equity Shares	Rs.10/- each	Rs.44.450 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		44.450	44.450	44.450
2] Share Application Money		4.250	4.250	0.000
3] Reserves & Surplus		21.215	20.853	19.612
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		69.915	69.553	64.062
LOAN FUNDS
1] Secured Loans		121.279	90.108	69.921
2] Unsecured Loans		62.699	36.037	34.908
TOTAL BORROWING		183.978	126.145	104.829
DEFERRED TAX LIABILITIES		3.049	0.000	1.657

TOTAL		256.942	195.698	170.548

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		117.894	41.112	48.860
Capital work-in-progress		0.097	32.600	0.000

INVESTMENT		0.010	0.008	0.008
DEFERREX TAX ASSETS		0.000	0.836	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	60.801	43.310	53.182
	Sundry Debtors	91.969	86.997	74.478
	Cash & Bank Balances	2.631	6.865	5.304
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	13.672	16.468	15.657
Total Current Assets		169.073	153.640	148.621
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	21.780	17.730	19.539
	Other Current Liabilities	7.566	11.175	4.154
	Provisions	0.786	3.593	3.248
Total Current Liabilities		30.132	32.498	26.941
Net Current Assets		138.941	121.142	121.680

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		256.942	195.698	170.548

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	397.489	380.016	345.800
		Other Income
		TOTAL	397.489	380.016	345.800

Less	EXPENSES
		Office Expenses	391.225	376.796	341.223
		Administrative Expenses
		Advertising Expenses
		TOTAL	391.225	376.796	341.223

	PROFIT BEFORE TAX		6.264	3.220	4.577

Less	TAX		5.902	1.979	1.909

	PROFIT AFTER TAX		0.362	1.241	2.668

	IMPORTS
		Raw Materials	105.614	75.605	88.996
		Stores & Spares	1.430	0.643	0.650
		Capital Goods	5.781	1.001	0.000
	TOTAL IMPORTS		112.825	77.249	89.646

	Earnings Per Share (Rs.)		0.08	0.28	0.64

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.09	0.33	0.77

Return on Total Assets (PBT/Total Assets}	(%)	2.18	1.65	2.32

Return on Investment (ROI) (PBT/Networth)		0.09	0.05	0.07

Debt Equity Ratio (Total Liability/Networth)		3.08	2.28	2.06

Current Ratio (Current Asset/Current Liability)		5.61	4.73	5.52

LOCAL AGENCY FURTHER INFORMATION

CONTINGENT LIABILITY NOT PROVIDED FOR

(Rs in millions )

Particulars	31.03.2010	31.03.2009
Income Tax Dividend	0.085	0.085
Electricity Charges	0.562	0.562
Excise Duty	0.235	0.000

FORM 8

Corporate identity number of the company	U21010GJ1995PTC026358
Name of the company	SHREE GAJANAN PAPER AND BOARDS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No.781/1, GIDC, 40 M Shed Area, Vapi, Valsad – 396195, Gujarat, India Email sgpbvapi@rediffmail.com
This form is for	Creation of charge
Type of charge	Immovable Property
Particular of charge holder	Bank of Baroda, Vapi Industrial Estate, SSI Branch, C/M -14, Near Char Rasta GIDC, Vapi – 396195, Gujarat, India Email : indvap@bankofbaroda.com
Nature of instrument creating charge	Instrument relating to deposit of title deeds
Date of instrument Creating the charge	25.10.2011
Amount secured by the charge	Rs.225.713 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Term loan 1 and 2 4% above base rate 14% Cash credit (stock and book debts) 4% above base rate 14% Terms of Repayment: Term loan i - 38 monthly installments of which 37 of Rs.0.677 millions and 1 Rs.0.664 millions. Term loan 1 - 60 monthly installments of which 59 of Rs.0.333 millions and 1 of Rs.0.353 millions. Cash credit - on demand Margin: Machinery - 25% for term loan 1 Plant and machinery - 40% of term loan 2 Stock - 25% Book debts - 40% DP L/C: 20% cash margin Extent and operation of the charge: The entire credit facilities are secured against the properties of the company until total principle, interest and any other cost are fully paid up.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Plot no. 781/1, 781/2, 40 Shed Area, Rs no. 246/p, 247/p GIDC, vapi. Flat No. 902, Orchid Tower, Sr. No. 274/a, City Sr. No. 711, Charwada Road, Vapi. Residentail Bunglow at Gayatri Soc., Plot No. 19, Sr. No. 118, N.H. NO. 8, Pardi, Dist. Valsad. Sr. No. 213/p, Plot No. 3-9, Sr. No. 213, Chala Vapi. *Sr. No. 426, Plot No. 156-157, Chala Vapi.

FIXED ASSETS

Land and Site Development
Factory Building
Plant and Machinery
Office Equipment
Computer
Furniture and Fixture
Vehicles

WEBSITE DETAILS

PROFILE

Subject was established in the year of 1995 with a view to revolutionize the paper industry by providing incomparably high quality paper products. They hold a very prominent position among all the leading M. G. Kraft Paper, Manufacturers and suppliers all over the India. They manufacture M. G. Kraft paper by recycling of waste paper. The paper products are biodegradable. They provide very high quality kraft paper that works as a fine replacement for other packaging media such as wood, tin, plastic etc.

The current capacity of the unit is 100 MT per day. They are planning to increase the production capacity as the paper market is expanding faster than the industrial growth of the country. They are marketing the kraft paper, in western region, i.e., Gujarat, Maharashtra and Rajasthan and in southern region. The company is planning to expand its market all over the world through agents as well as direct sale. The company is planning to install new plant at Vapi (Gujrat) for the manufacturing of envelop paper and export to USA, UK.

They are manufacturing different varieties of kraft paper of 100-200 GSM and Bursting Factor (BF) ranging from 14 to 28 in different color as required by customers. The product is in reels form and is used for making Corrugated Boxes, Liners, Textile Tubes, Duplex Cartons etc, the main consumption is thus in packaging. Appropriate equipments and well developed laboratory has already been installed with facility to test GSM, Burst Factor, Tear Factor, Moisture Test, Caliper Test, Degree SR, Cob Value etc. Batch testing and well framed test report have been made compulsory and are an integral part of production to assure well consistency in quality.

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.49.13
UK Pound	1	Rs.77.85
Euro	1	Rs.64.75

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--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		32

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

60.801

91.969

2.631

0.000

13.672

169.073

21.780

7.566

0.786

30.132

138.941

0.09

2.18

0.09

3.08

5.61

Unit