MIRA INFORM REPORT

Report Date :

03.02.2012

IDENTIFICATION DETAILS

Name :	SPB PAPERS LIMITED (w.e.f. 21.06.2011)
Formerly Known as:	SUBBURAJ PAPERS PRIVATE LIMITED
Registered Office :	No. 109, Nungambakkam High Road, Chennai – 600034, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.03.2006
Com. Reg. No.:	059326
Capital Investment / Paid-up Capital :	Rs.150.000 Millions
CIN No.: [Company Identification No.]	U21012TN2006PLC059326
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacture Wood Free Paper for Printing and Writing Purpose
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ca (16)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears huge 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 on a secured 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

LOCATIONS

Registered Office :	No. 109, Nungambakkam High Road, Chennai – 600034, Tamilnadu, India
Tel. No.:	91-44-28278000/33967
Fax No.:	91-44-28275086
E-Mail :	pichai@spbltd.com
Factory:	Unit Tirunelveli Elanthaikulam, Singampari Post Mukkudal (VIA) Tirunelveli District – 627601, Tamilnadu, India

DIRECTORS

AS ON 27.08.2011

Name :	Mr. Gopalaratnam Natarajan
Designation :	Director
Address :	Cmds Bungalow, SPB Limited, Cauvery Rs Road, Po Palayam, Erode, Namakkal – 638007, Tamilnadu, India
Date of Birth/Age :	15.04.1947
Date of Appointment :	01.04.2011

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	L21012TZ1960PLC000364	SESHASAYEE PAPER AND BOARDS LIMITED	Managing director	01/04/2009	26/12/1987	-	Active	NO
2	U74140TN1984PLC010793	SPB PROJECTS AND CONSULTANCY LTD	Director	20/02/1989	20/02/1989	-	Active	NO
3	L36999TN1961PLC004606	HIGH ENERGY BATTERIES (INDIA) LIMITED	Director	06/06/1991	06/06/1991	-	Active	NO
4	U51909TN1978PTC007495	ESVI INTERNATIONAL (ENGGS & EXPRTS) PRIVATE LIMITED	Director	25/09/1992	25/09/1992	-	Active	NO
5	U65993TN1985PTC011819	TIME SQUARE INVESTMENTS PRIVATE LIMITED	Director	12/01/1993	12/01/1993	-	Active	NO
6	L15422TN1996PLC037200	PONNI SUGARS (ERODE) LIMITED	Director	26/12/1996	26/12/1996	-	Active	NO
7	U21012TN2006PLC059326	SPB PAPERS LIMITED	Director	27/08/2011	01/04/2011	-	Active	NO

Name :	Mr. Sridar Venkatesan
Designation :	Director
Address :	303A HP Employees CHS Plot No. NDR – 11, Tilaknagar, Chembur, Mumbai – 400089, Maharashtra, India
Date of Birth/Age :	28.07.1947
Date of Appointment :	01.04.2011

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	L31402WB1934PLC007993	EVEREADY INDUSTRIES INDIA LTD	Director	24/07/2009	01/08/2008	24/02/2010	Active	NO
2	U51900MH1994PLC078303	STCI Finance Limited	Director	29/09/2009	23/12/2008	-	Active	NO
3	U17119DN1982PLC000092	KRISHNA KNITWEAR TECHNOLOGY LIMITED	Director	27/06/2009	24/01/2009	15/03/2010	Active	NO
4	L17120MH1993PLC073267	ASAHI INDUSTRIES LIMITED	Director	08/08/2009	31/01/2009	15/03/2010	Active	NO
5	U67110MH2006PLC165306	STCI Primary Dealer Limited	Director	04/09/2009	02/02/2009	-	Active	NO
6	L21012TZ1960PLC000364	SESHASAYEE PAPER AND BOARDS LIMITED	Director	25/07/2009	04/06/2009	-	Active	NO
7	L15422TN1996PLC037200	PONNI SUGARS (ERODE) LIMITED	Director	22/07/2009	05/06/2009	-	Active	NO
8	L18109DN1987PLC000034	ESKAY K 'n' IT (INDIA) LIMITED	Director	22/08/2009	09/06/2009	15/03/2010	Active	NO
9	L74999DN1987PLC000035	K-LIFESTYLE & INDUSTRIES LIMITED	Director	22/08/2009	12/06/2009	15/03/2010	Active	NO
10	U65999MH2008PTC183786	Morpheus Capital Advisors Private Limited	Director	24/09/2009	08/09/2009	-	Active	NO
11	U40101TN1997PLC037663	LANCO TANJORE POWER COMPANY LIMITED	Director	14/07/2010	18/01/2010	-	Active	NO
12	L65190GJ1994PLC021012	ICICI BANK LIMITED	Director	28/06/2010	21/01/2010	-	Active	NO
13	U40100AP2005PLC045445	LANCO VIDARBHA THERMAL POWER LIMITED	Director	30/09/2011	24/07/2010	-	Active	NO
14	U65922MH2010PTC202721	AADHAR HOUSING FINANCE PRIVATE LIMITED	Director	19/08/2010	19/08/2010	-	Active	NO
15	U51420MH2008PLC187689	SARDA METALS & ALLOYS LIMITED	Director	30/09/2010	20/08/2010	-	Active	NO
16	L26109WB1946PLC013294	HINDUSTHAN NATIONAL GLASS & INDUSTRIES LIMITED	Director	19/08/2011	02/11/2010	-	Active	NO
17	U21012TN2006PLC059326	SPB PAPERS LIMITED	Director	27/08/2011	01/04/2011	-	Active	NO
18	U65990MH1966PLC013459	SICOM LIMITED	Additional director	29/09/2011	29/09/2011	-	Active	NO
19	U69990MH1999PLC123190	IDFC AMC TRUSTEE COMPANY LIMITED	Director	08/12/2011	08/12/2011	-	Active	NO

Name :	Mr. Kasi Viswanathan Subramanian Kallidaikurichi
Designation :	Director
Address :	#2102, Supdts Quarters SPB Limited, Cauvery RS PO Erode, Namakkal – 638007, Tamilnadu, India
Date of Birth/Age :	28.03.1951
Date of Appointment :	01.04.2011

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	L21012TZ1960PLC000364	SESHASAYEE PAPER AND BOARDS LIMITED	Whole-time director	01/04/2011	29/01/2005	-	Active	NO
2	U21012TN2006PLC059326	SPB PAPERS LIMITED	Director	27/08/2011	01/04/2011	-	Active	NO

Name :	Mr. Ramanathan Narayanan
Designation :	Director
Address :	Flat 4 Block II Ananya Ashok 15 Bakthavachalam Slai, Mylapore, Chennai – 600004, Tamilnadu, India
Date of Birth/Age :	14.06.1954
Date of Appointment :	01.04.2011

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	L15422TN1996PLC037200	PONNI SUGARS (ERODE) LIMITED	Managing director	01/04/2011	01/04/2005	-	Active	NO
2	U01132TZ1926PLC000019	THE COONOOR TEA ESTATES COMPANY LIMITED	Director	17/09/2005	17/09/2005	-	Active	NO
3	U51909TN1978PTC007495	ESVI INTERNATIONAL (ENGGS & EXPRTS) PRIVATE LIMITED	Director	19/08/2006	19/08/2006	-	Active	NO
4	U72112MP1922PLC000060	HOPE TEXTILES LTD	Director	30/09/2006	30/09/2006	-	Active	NO
5	U33111TN1947NPL000861	HINDUSTAN CHAMBER OF COMMERCE	Director	01/10/2010	08/12/2008	-	Active	NO
6	U99999DL1969GAP005106	INDIAN SUGAR EXIM CORPORATION LTD.	Nominee director	22/03/2010	22/03/2010	-	Active	NO
7	U21012TN2006PLC059326	SPB PAPERS LIMITED	Director	27/08/2011	01/04/2011	-	Active	NO

Name :	Mr. Pichai Venkataraman
Designation :	Director
Address :	Flat No.6, J Aparts 31 First Main Road, Kasturba Nagar, Adayar, Chennai – 600020, Tamilnadu, India
Date of Birth/Age :	12.09.1947
Date of Appointment :	01.04.2011

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	U65993TN1994PTC029413	DHANASHREE INVESTMENTS PRIVATE LIMITED	Director	07/09/1998	07/09/1998	-	Active	NO
2	U65993TN1983PTC010193	ULTRA INVESTMENTS & LEASING CO PRIVATE LIMITED	Director	30/09/1998	30/09/1998	-	Active	NO
3	U65993TN1985PTC011819	TIME SQUARE INVESTMENTS PRIVATE LIMITED	Director	19/01/2001	19/01/2001	-	Active	NO
4	L21012TZ1960PLC000364	SESHASAYEE PAPER AND BOARDS LIMITED	Whole-time director	01/04/2011	29/01/2005	-	Active	NO
5	U21012TN2006PLC059326	SPB PAPERS LIMITED	Director	27/08/2011	01/04/2011	-	Active	NO

Name :	Mr. Venkadasamy Subburaj
Designation :	Director
Address :	No.32-A, Perachi Amman Kovil Street Palayamkottai, Tirunelveli – 627003, Tamilnadu, India
Date of Birth/Age :	28.08.1957
Date of Appointment :	28.03.2006
Date of Ceasing:	14.04.2011

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	U17111TN1993PTC024754	SUBBURAJ SPINNING MILLS PRIVATE LIMITED	Director	02/04/1993	02/04/1993	-	Active	NO
2	U17111TN1997PTC039310	SUBBURAJ TEXTILE MILLS PRIVATE LIMITED	Director	24/10/1997	24/10/1997	-	Active	NO
3	U17111TN2003PTC050935	SUBBURAJ COTSPIN MILLS PRIVATE LIMITED	Director	28/05/2003	28/05/2003	-	Active	NO
4	U21012TN2006PLC059326	SPB PAPERS LIMITED	Director	28/03/2006	28/03/2006	14/04/2011	Active	NO
5	U17100TN2007PLC063107	SUBBURAJ INDUSTRIES LIMITED	Director	16/04/2007	16/04/2007	-	Active	NO

Name :	Mrs. Subburaj Umamaheshwari
Designation :	Director
Address :	No.32-A, Perachi Amman Kovil Street Palayamkottai, Tirunelveli – 627003, Tamilnadu, India
Date of Birth/Age :	09.10.1962
Date of Appointment :	28.03.2006
Date of Ceasing:	14.04.2011

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	U17111TN1993PTC024754	SUBBURAJ SPINNING MILLS PRIVATE LIMITED	Director	20/12/1995	20/12/1995	-	Active	NO
2	U17111TN1997PTC039310	SUBBURAJ TEXTILE MILLS PRIVATE LIMITED	Director	29/04/2002	29/04/2002	-	Active	NO
3	U21012TN2006PLC059326	SPB PAPERS LIMITED	Director	28/03/2006	28/03/2006	14/04/2011	Active	NO
4	U17100TN2007PLC063107	SUBBURAJ INDUSTRIES LIMITED	Director	16/04/2007	16/04/2007	-	Active	NO

Name :	Mr. Subbiah Arunkumar
Designation :	Director
Address :	B-50, 7^th Floor, Cross Street, Maharaja Nagar, Tirunelveli – 627003, Tamilnadu, India
Date of Birth/Age :	23.012.1973
Date of Appointment :	28.03.2006
Date of Ceasing:	14.04.2011

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	U17111TN1993PTC024754	SUBBURAJ SPINNING MILLS PRIVATE LIMITED	Director	01/11/1997	01/11/1997	25/03/2011	Active	NO
2	U17111TN2003PTC050935	SUBBURAJ COTSPIN MILLS PRIVATE LIMITED	Director	28/05/2003	28/05/2003	-	Active	NO
3	U21012TN2006PLC059326	SPB PAPERS LIMITED	Director	28/03/2006	28/03/2006	01/04/2011	Active	NO
4	U17100TN2007PLC063107	SUBBURAJ INDUSTRIES LIMITED	Director	16/04/2007	16/04/2007	-	Active	NO
5	U67190TN2010PTC078348	ARRECA INVESTMENT PRIVATE LIMITED	Director	07/12/2010	07/12/2010	-	Active	NO

Name :	Mrs. Arunkumar Anitha
Designation :	Director
Address :	B-50, 7^th Floor, Cross Street, Maharaja Nagar, Tirunelveli – 627003, Tamilnadu, India
Date of Birth/Age :	26.04.1978
Date of Appointment :	28.03.2006
Date of Ceasing:	01.04.2011

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	U17111TN1997PTC039310	SUBBURAJ TEXTILE MILLS PRIVATE LIMITED	Director	14/04/2003	14/04/2003	25/03/2011	Active	NO
2	U17111TN1993PTC024754	SUBBURAJ SPINNING MILLS PRIVATE LIMITED	Director	16/04/2003	16/04/2003	25/03/2011	Active	NO
3	U21012TN2006PLC059326	SPB PAPERS LIMITED	Director	28/03/2006	28/03/2006	01/04/2011	Active	NO
4	U17100TN2007PLC063107	SUBBURAJ INDUSTRIES LIMITED	Director	16/04/2007	16/04/2007	-	Active	NO
5	U67190TN2010PTC078348	ARRECA INVESTMENT PRIVATE LIMITED	Director	07/12/2010	07/12/2010	-	Active	NO

Name :	Mr. Tokula Kaledoss Athmaram Badrinath
Designation :	Director
Address :	32A, New Colony, Perachiamman Kovil Street, Vannarpettai, Palayamkottai, Tirunelveli – 627003, Tamilnadu, India
Date of Birth/Age :	26.04.1978
Date of Appointment :	28.03.2006
Date of Ceasing:	14.04.2011

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	U17111TN1997PTC039310	SUBBURAJ TEXTILE MILLS PRIVATE LIMITED	Director	01/10/2005	01/10/2005	-	Active	NO
2	U21012TN2006PLC059326	SPB PAPERS LIMITED	Director	28/03/2006	28/03/2006	14/04/2011	Active	NO
3	U17100TN2007PLC063107	SUBBURAJ INDUSTRIES LIMITED	Director	16/04/2007	16/04/2007	-	Active	NO

Name :	Mrs. Subburaj Shyamala
Designation :	Director
Address :	32A, New Colony, Perachiamman Kovil Street, Vannarpettai, Palayamkottai, Tirunelveli – 627003, Tamilnadu, India
Date of Birth/Age :	16.08.1981
Date of Appointment :	29.06.2009
Date of Ceasing:	01.04.2011

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	U17111TN1997PTC039310	SUBBURAJ TEXTILE MILLS PRIVATE LIMITED	Director	24/09/2007	24/09/2007	-	Active	NO
2	U21012TN2006PLC059326	SPB PAPERS LIMITED	Additional director	29/06/2009	29/06/2009	01/04/2011	Active	NO

Name :	Mr. Gurusamy Krishnakumar
Designation :	Director
Address :	32A, New Colony, Perachiamman Kovil Street, Vannarpettai, Palayamkottai, Tirunelveli – 627003, Tamilnadu, India
Date of Birth/Age :	01.09.1973
Date of Appointment :	29.06.2009
Date of Ceasing:	01.04.2011

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	U17111TN1993PTC024754	SUBBURAJ SPINNING MILLS PRIVATE LIMITED	Director	24/09/2007	24/09/2007	-	Active	NO
2	U21012TN2006PLC059326	SPB PAPERS LIMITED	Additional director	29/06/2009	29/06/2009	01/04/2011	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.08.2011

Names of Shareholders	No. of Shares
Seshsayee Paper and Boards Limited, Erode	6250000
Ponni Sugars (Erode) Limited, Chennai	5000000
Anita Arun	1280000
S Uma Maheshwari	1070000
Arun Subbiah	400000
A Baidrinath	200000
S Rekha	200000
Shyamala	600000
Total	15000000

AS ON 27.08.2011

Category	Percentage
Bodies corporate	75.00
Other top fifty shareholders	25.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacture Wood Free Paper for Printing and Writing Purpose

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Paper	Tonnes	90000	3914

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Canara Bank, Thousand Lights Branch, No.5,Greams Road, Chennai - 600006, Tamil Nadu, India

· Bank of India, 402, Tenkasi Road, Rajapalayam - 626117, Tamil Nadu, India

Facilities :

SECURED LOAN	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee Term Loans Banks Secured	0.000	1669.572
Working Capital Loans Banks Secured	0.000	275.192
TOTAL	0.000	1944.764
UNSECURED LOAN	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee Term Loans Other Secured	1804.150	0.000
Hire Purchase installment payable unsecured	1.379	0.000
TOTAL	1805.529	0.000

Banking Relations :	--
Auditors :
Name :	Mr. K V Raman Chartered Accountant
Address :	42 Sevalpatti South Street, Rajapalayam – 626117, Tamilnadu, India
Associates/Subsidiaries :	NA

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 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		150.000	150.000	150.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		477.000	477.000	477.000
4] (Accumulated Losses)		(594.727)	(488.059)	0.000
NETWORTH		32.273	138.941	627.000
LOAN FUNDS
1] Secured Loans		0.000	1944.764	1477.024
2] Unsecured Loans		1805.528	4.078	21.214
TOTAL BORROWING		1805.528	1948.842	1498.238
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		1837.801	2087.783	2125.238
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1889.368	1967.709	1805.746
Capital work-in-progress		35.236	31.980	14.845
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.584	159.399	172.549
	Sundry Debtors	3.153	48.836	11.010
	Cash & Bank Balances	6.683	21.368	0.262
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	120.153	135.587	290.457
Total Current Assets		153.573	365.190	474.278
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	234.274	277.522	0.000
	Other Current Liabilities	6.102	0.000	232.990
	Provisions	0.000	0.000	0.000
Total Current Liabilities		240.376	277.522	232.990
Net Current Assets		(86.803)	87.668	241.288
MISCELLANEOUS EXPENSES		0.000	0.426	63.359
TOTAL		1837.801	2087.783	2125.238

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	112.234	289.859	23.792
		Other Income	16.116	3.689	1.145
		TOTAL (A)	128.350	293.548	24.937
Less	EXPENSES
		Consumption materials changes inventories	123.065	239.374	NA
		Manufacturing service costs	58.658	117.017	NA
		Employee related expenses	27.357	36.729	NA
		Administrative selling other expenses	16.259	22.323	NA
		Exceptional income expense	(106.844)	0.000	NA
		TOTAL (B)	225.339	415.443	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9.855	(121.895)	(0.305)
Less	FINANCIAL EXPENSES (D)		11.674	226.296	22.512
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(1.819)	(348.191)	(22.817)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		104.848	76.933	40.108
	PROFIT BEFORE TAX (E-F) (G)		(106.667)	(425.124)	(62.925)
Less	TAX (I)		0.000	0.000	0.000
	PROFIT AFTER TAX (G-I) (J)		(106.667)	(425.124)	(62.925)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	30.050	18.646	NA
	TOTAL EARNINGS		30.050	18.646	NA
	IMPORTS
		Raw Materials	7.617	104.020	NA
	TOTAL IMPORTS		7.617	104.020	NA
	Earnings Per Share (Rs.)		(7.11)	(28.34)	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(83.10)	(144.82)	(252.33)
Net Profit Margin (PBT/Sales)	(%)	(95.03)	(146.66)	(264.47)
Return on Total Assets (PBT/Total Assets}	(%)	(5.22)	(18.22)	(2.76)
Return on Investment (ROI) (PBT/Networth)		(3.30)	(3.06)	(0.10)
Debt Equity Ratio (Total Liability/Networth)		63.39	16.02	2.76
Current Ratio (Current Asset/Current Liability)		0.64	1.32	2.03

LOCAL AGENCY FURTHER INFORMATION

FORM 8:

Corporate identity number of the company	U21012TN2006PLC059326
Name of the company	SPB PAPERS LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 109, Nungambakkam High Road, Chennai – 600034, Tamil Nadu, India
This form is for	Creation of charge
Type of charge	Movable Property
Particular of charge holder	Canara Bank
Nature of instrument creating charge	Hypothecation Agreement dated August 24, 2011
Date of instrument Creating the charge	24.08.2011
Amount secured by the charge	Rs.2100.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Base rate plus 3% at monthly rests. Present effective rate - 13.75% p.a. Terms of Repayment Bullet repayment within 6 months from the date of disbursement - The first instalment to commence from September 16, 2011. Extent and Operation of the charge SHORT TERM LOAN- Rs.2100.000 Millions including start up working capital facility of Rs.300.000 Millions 100% charge in favour of Canara Bank, Thousand Lights Branch, Chennai
Short particulars of the property charged	Hypothecation of entire Plant and Machinery, tools and accessories- both present and future (morefully described in the annexure to the Deed of hypothecation) All situated/installed at the factory premises at Elanthaikulam, singamparai post, Mukkudal via , Tirunelveli District. Plant and Machinery written down value as at 31st March 2011 being Rs. 1645.600 Millions.

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.49.12
UK Pound	1	Rs.77.84
Euro	1	Rs.64.74

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	3
--CREDIT LINES	1~10	--
--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		16

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.