MIRA INFORM REPORT

Report Date :

11.02.2012

IDENTIFICATION DETAILS

Name :	SHAH PULP AND PAPER MILLS LIMITED
Registered Office :	Angeline Apartment, B/202, 2^nd Floor, Sarojini Road, Vile Parle (West), Mumbai – 400056, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.11.1993
Com. Reg. No.:	11-074945
Capital Investment / Paid-up Capital :	Rs.110.000 Millions
CIN No.: [Company Identification No.]	U21010MH1993PLC074945
TAN No.: [Tax Deduction & Collection Account No.]	MUMS18657C
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Exporter, Importer, Buyer and Seller of texturised crimped, nylon filament yarn, polyester filament yarn and other synthetic yarns
No. of Employees :	Information not divulged by management

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 1280000
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. General financial position is satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for 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.

LOCATIONS

Registered Office :	Angeline Apartment B/202 2^nd Floor Sarojini Road, Vile Parle (West), Mumbai – 400056, Maharashtra, India
Tel. No.:	91-22-26161932/26121878
Fax No.:	91-22-26173673
E-Mail :	info@shahpaper.com shahpulp@gmail.com sppml@sify.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Mahendra Hirji Shah

Designation :

Managing director

Address :

610/H-II, Chanod, Vapi, G.I.D.C., Valsad - 396 195, Gujarat, India

Date of Birth/Age :

16.05.1959

Date of Appointment :

05.11.1993

DIN No.:

00190008

Other Directorship :

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
U21010MH1990PLC057464	Shah Paper Mills Limited	Managing director	1/01/2010	27/07/1990	-	Active	NO
U21010MH1993PLC074945	Shah Pulp and Paper Mills Limited	Managing director	1/01/2010	5/11/1993	-	Active	NO
U67120MH1996PLC101623	Shah Financial Services Limited	Director	5/08/1996	5/08/1996	-	Active	NO
U45200MH1996PTC095845	Natvar Properties Private Limited	Director	30/09/1996	30/09/1996	-	Active	NO
U21020MH2004PTC145176	Shah Containers Private Limited	Director	15/06/2004	15/06/2004	-	Active	NO
U45202MH2008PTC183338	Your Home Developers Private Limited	Director	12/06/2008	10/06/2008	-	Active	NO
U17299MH2006PTC163638	Venkateshvara Texfab Private Limited	Director	25/09/2010	25/09/2010	10/10/2010	Active	NO
U51109MH2008PTC188417	Avion Paper Impex Private Limited	Director	2/09/2011	2/09/2011	-	Active	NO

Name :

Mr. Deepen Keshavji Gosrani

Designation :

Director

Address :

A/101, Nirmal Soc., Nea Vapi Valsad, Haria Hospital Vapi - 396 195, Gujarat, India

Date of Birth/Age :

08.01.1968

Date of Appointment :

16.01.1995

DIN No.:

00150843

Other Directorship :

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
U21010MH1993PLC074945	Shah Pulp and Paper Mills Limited	Director	1/09/2006	16/01/1995	-	Active	NO
U21020MH2004PTC145176	Shah Containers Private Limited	Director	18/03/2004	18/03/2004	-	Active	NO

Name :

Mr. Amritlal Khimji Shah

Designation :

Director

Address :

207 Residential Area Valsad, G.I.D.C., Vapi - 396 195, Gujarat, India

Date of Birth/Age :

22.11.1944

Date of Appointment :

05.11.1993

DIN No.:

00140411

Other Directorship :

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
U21010MH1990PLC057464	Shah Paper Mills Limited	Director	30/09/2006	8/08/1990	-	Active	NO
U21010MH1993PLC074945	Shah Pulp and Paper Mills Limited	Director	1/09/2006	5/11/1993	-	Active	NO
U67120MH1996PLC101623	Shah Financial Services Limited	Director	5/08/1996	5/08/1996	-	Active	NO
U45200MH1996PTC095845	Natvar Properties Private Limited	Director	30/09/1996	30/09/1996	-	Active	NO
U74210GJ1997GAP031525	Vapi Waste and Effluent Management Company Limited	Director	17/01/1997	17/01/1997	-	Active	NO
U21020MH2004PTC145176	Shah Containers Private Limited	Director	15/06/2004	15/06/2004	-	Active	NO

Name :

Mr. Mahesh Khetshi Maru

Designation :

Whole-time director

Address :

A/204, Suyog Mandir, Co-operative Housing Society, Ram Mandir Road, Bhabai, Borivali (West), Mumbai - 400 092, Maharashtra, India

Date of Birth/Age :

24.06.1966

Date of Appointment :

12.06.1999

DIN No.:

00145681

Other Directorship :

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
U67120MH1996PLC101623	Shah Financial Services Limited	Director	5/08/1996	5/08/1996	-	Active	NO
U21010MH1993PLC074945	Shah Pulp and Paper Mills Limited	Whole-time director	30/09/2010	12/06/1999	-	Active	NO
U21010MH1990PLC057464	Shah Paper Mills Limited	Director	30/09/2006	16/08/1999	-	Active	NO
U51109MH2008PTC188417	Avion Paper Impex Private Limited	Director	2/09/2011	8/10/2010	-	Active	NO
U45202MH2008PTC183338	Your Home Developers Private Limited	Director	19/09/2011	19/09/2011	-	Active	NO

Name :

Mr. Girish Sarvotham Shetty

Designation :

Director

Address :

306, Rajlaxmi Co-operative Housing Society, Near Gunjan Cinema, G.I.D.C., Vapi Valsad - 396 195, Gujarat, India

Date of Birth/Age :

28.12.1973

Date of Appointment :

07.10.2002

DIN No.:

00144740

Other Directorship :

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
U21010MH1993PLC074945	Shah Pulp and Paper Mills Limited	Director	7/10/2002	7/10/2002	-	Active	NO
U21010MH1990PLC057464	Shah Paper Mills Limited	Whole-time director	30/09/2010	1/04/2005	-	Active	NO
U67120MH1996PLC101623	Shah Financial Services Limited	Director	30/08/2008	30/08/2008	-	Active	NO

Name :

Mr. Ashok Zaverchand Shah

Designation :

Director

Address :

S-2, Paras Apartment, Resi Area, G.I.D.C , Vapi, Valsad - 396 195, Gujarat, India

Date of Birth/Age :

25.09.1963

Date of Appointment :

17.09.2004

DIN No.:

00146132

Other Directorship :

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
U21010MH1990PLC057464	Shah Paper Mills Limited	Whole-time director	1/01/2010	13/02/1991	-	Active	NO
U67120MH1996PLC101623	Shah Financial Services Limited	Managing director	30/08/2008	5/08/1996	-	Active	NO
U21010MH1993PLC074945	Shah Pulp and Paper Mills Limited	Director	17/09/2004	17/09/2004	-	Active	NO

Name :

Mr. Hemant Gamanlal Modi

Designation :

Whole-time director

Address :

B/103, Amardham Apts, Near Dreamland Theatre, Tithal Road, Valsad - 396001, Gujarat, India

Date of Birth/Age :

15.09.1963

Date of Appointment :

01.04.2005

DIN No.:

00145130

Other Directorship :

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
U21010MH1990PLC057464	Shah Paper Mills Limited	Director	7/10/2002	7/10/2002	-	Active	NO
U21010MH1993PLC074945	Shah Pulp and Paper Mills Limited	Whole-time director	30/09/2010	1/04/2005	-	Active	NO
U45202MH2008PTC183338	Your Home Developers Private Limited	Director	15/09/2009	20/09/2008	-	Active	NO

Name :

Mr. Manoj Oza

Designation :

Director

Address :

102, Niraml Co-operative Housing Society, Chharwada Road, G.I.D.C. Valsad - 396001, Gujarat, India

Date of Birth/Age :

28.20.1945

Date of Appointment :

29.09.2006

DIN No.:

00289871

Other Directorship :

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
U24231GJ1972PTC002024	Toyota Chemical Industries Private Limited	Managing director	2/02/1972	2/02/1972	-	Active	NO
U24230MH1983PTC030281	Sepato Pharm Private Limited	Director	25/06/1983	25/06/1983	-	Active	NO
U74210GJ1997GAP031525	Vapi Waste and Effluent Management Company Limited	Director	20/07/2009	17/01/1997	20/07/2009	Active	NO
U21010MH1993PLC074945	Shah Pulp and Paper Mills Limited	Director	29/09/2006	29/09/2006	-	Active	NO
U24200MH1998PTC115774	Pharma Base India Private Limited	Alternate director	20/01/2010	20/01/2010	-	Active	NO

Name :

Mr. Vijay Ranchan

Designation :

Director

Address :

Plot 131, Sector 8-C, Gandhinagar – 382008, Gujarat, India

Date of Birth/Age :

01.10.1942

Date of Appointment :

26.04.2006

DIN No.:

01602023

Other Directorship :

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
L01100MH1996PLC100380	Usher Agro Limited	Director	30/12/2004	30/12/2004	-	Active	NO
U67110GJ2005PLC045636	Ahmedabad Stock Exchange Limited	Director	4/03/2005	4/03/2005	14/12/2007	Active	NO
U72300GJ2000NPL037393	Ase Capital Market Development Board	Director	7/07/2005	7/07/2005	14/12/2007	Active	NO
U21010MH1993PLC074945	Shah Pulp and Paper Mills Limited	Director	26/04/2006	26/04/2006	-	Active	NO
U40200GJ2001PLC040160	Adani Energy Limited	Director	25/08/2006	25/08/2006	7/01/2010	Active	NO
L40100GJ1996PLC030533	Adani Power Limited	Director	25/09/2008	12/12/2007	-	Active	NO
U40102MH2007PLC172552	Usher Eco Power Limited	Director	27/06/2008	7/04/2008	-	Active	NO
U74900MH2008FTC187029	Pramerica Asset Managers Private Limited	Director	18/12/2009	3/09/2009	-	Active	NO
U74210GJ2010PTC059369	Eywa Energy Private Limited	Director	29/01/2010	29/01/2010	-	Active	NO
U45200AP2004PTC044833	Vishwa Infrastructures and Services Private Limited	Director	12/09/2011	21/10/2010	-	Active	NO
U40101GJ2007PLC050506	Adani Power Maharashtra Limited	Director	30/06/2011	6/05/2011	-	Active	NO
L27209GJ1999PLC036656	Gyscoal Alloys Limited	Additional director	11/10/2011	11/10/2011	-	Active	NO

Name :

Mr. Hirji Tejshi Shah

Designation :

Director

Address :

610/H-II, Chanod, G.I.D.C., Vapi Valsad - 396 195, Gujarat, India

Date of Birth/Age :

23.08.1938

Date of Appointment :

30.09.2006

DIN No.:

00140063

Other Directorship :

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
U21010MH1990PLC057464	Shah Paper Mills Limited	Director	30/09/2006	16/09/1999	-	Active	NO
U21010MH1993PLC074945	Shah Pulp and Paper Mills Limited	Director	30/09/2006	30/09/2006	-	Active	NO

Name :

Mr. Bhanupratap Pruthviraj Singh

Designation :

Whole-time director

Address :

48, Bharauch, Pritam Society, Bharuch – 392001, Gujarat, India

Date of Birth/Age :

04.08.1956

Date of Appointment :

23.08.2008

DIN No.:

02254985

Other Directorship :

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
U21010MH1993PLC074945	Shah Pulp and Paper Mills Limited	Whole-time director	30/09/2010	23/08/2008	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Equity Shares
Amritlal K Shah (HUF)	334450
Amritlal Khimji Shah Hansaben A. Shah	233550
Ashok Zaverchand Shah Mita Ashok Shah	676275
Divyesh Amritlal Shah Amritlal Khimji Shah	2000
Hansaben Amritlal Shah Amritlal Khimji Shah	345700
Hirji Tejshi Shah Mahendra Hirji Shah	292750
Jigna Ketan Shah Ketan Keshavji Shah	50000
Keshavji Bharmal Shah Pushpaben Keshavji Shah	64000
Keshavji Bharmal Shah (HUF)	10000
Ketan Keshavji Shah Jigna Ketan Shah	402400
Ketan Keshavji Shah (HUF)	34000
Mahendra Hirji Shah Nisha Mahendra Shah	2754375
Pravinaben Shantilal Shah Shantilal Khimji Shah	74000
Pravinchandra Hirji Shah Nayna Pravinchandra Shah	1000000
Pushpaben Keshavji Shah Keshavji Bharmal Shah	9000
Ramesh Keshavji Shah Harsida Ramesh Shah	342500
Ramesh Keshavji Shah (HUF)	25000
Rohit Plastopack Private Limited, India	1096000
Shah Financial Services Limited, India	1022500
Shahtilal Karamshi Shah Kalpana Shantilal Shah	1000000
Shantilal Khimji Shah Pravinaben Shantilal Shah	180000
Shobhagchand Khimji Shah Vanitaben Shobhagchand Shah	1500
Pritesh Mahendra Shah Mahendra Hirji Shah	50000
Total	10000000

Names of Shareholders	No. of Preference Shares
Amritlal Khimji Shah Hansaben A. Shah	2600
Ashok Zaverchand Shah Mita Ashok Shah	1950
Shah Paper Mills Limited, India	25000
Bharti Hitesh Shah Hitesh Ratilal Shah	1500
Chandramani Ratilal Shah Hitesh Ratilal Shah	1500
Shah Financial Services Limited, India	12000
Gautam B. Desai Jagruti Gautam Desai	--
Mahendra Hirji Shah Nisha Mahendra Shah	8450
Pravinchandra Hirji Shah Nayna Pravinchandra Shah	10000
Preeti Shashikant Bakhai	--
Shantilal Karamshi Shah Kalpana Shantilal Shah	10000
Utsav M. Majithia	--
Vipul Mulchand Shah Priti Vipul Shah	3000
Dungershi Gala Arun Gala	6000
Index Tie-Up Private Limited, India	18000
Total	100000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	9.00
Bodies corporate	21.00
Directors or relatives of Directors	50.00
Other top fifty shareholders	20.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Exporter, Importer, Buyer and Seller of texturised crimped, nylon filament yarn, polyester filament yarn and other synthetic yarns

Products :

Item Code No.	Product Description
4801.00	Newsprint In Roll
4802.90	Newsprint Grade Writing Printing Paper
4804.90	Kraft Paper and Paperboard

GENERAL INFORMATION

No. of Employees :

Information not divulged by management

Bankers :

State Bank of India, Vapi Industrial Township Branch, Vapi, Valsad – 396195, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee Term Loans	33.223	50.778
Rupee Term Loans financial Institutions	0.364	0.000
Working Capital Loans secured	123.379	144.564
Total	156.966	195.342
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Other Debts	42.050	41.350
Total	42.050	41.350

Financial Institute :	Mahindra and Mahindra Finance
Banking Relations :	--
Auditors :
Name :	R. R. Muni and Company Chartered Accountants
Address :	2543, Gokul Building No. 55, Gandhi Nagar, Bandra (East), Mumbai – 400051, Maharashtra, India
PAN.:	AAAFR2711F
Associates :	· Shah Paper Mills Limited · Shah Financial Services Limited · Shah Containers Private Limited · ENEM Marketing Private Limited · Natvar Properties Private Limited · Mahavir Packaging · Amar Packging

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions
100000	12% Cumulative Redeemable shares	Rs.100/- each	Rs.10.000 Millions
	Total		Rs.110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions
100000	12% Cumulative Redeemable shares	Rs.100/- each	Rs.10.000 Millions
	Total		Rs.110.000 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		110.000	110.000	110.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		212.408	199.774	188.432
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		322.408	309.774	298.432
LOAN FUNDS
1] Secured Loans		156.966	195.342	193.676
2] Unsecured Loans		42.050	41.350	36.775
TOTAL BORROWING		199.016	236.692	230.451
DEFERRED TAX LIABILITIES		52.360	53.049	52.746
TOTAL		573.784	599.515	581.629
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		339.006	338.454	290.558
Capital work-in-progress		0.020	0.657	0.000
Leasehold Land		0.000	0.000	27.616
INVESTMENT		0.482	0.514	0.514
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	232.022	193.643	234.412
	Sundry Debtors	139.222	163.707	174.358
	Cash & Bank Balances	56.044	36.271	27.821
	Other Current Assets	1.439	0.976	0.000
	Loans & Advances	171.433	131.639	103.189
Total Current Assets		600.160	526.236	539.780
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	301.070	207.015	226.612
	Other Current Liabilities	13.979	17.660	14.479
	Provisions	54.516	45.417	39.559
Total Current Liabilities		369.565	270.092	280.650
Net Current Assets		230.595	256.144	259.130
MISCELLANEOUS EXPENSES		3.681	3.746	3.811
TOTAL		573.784	599.515	581.629

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	915.619	824.074	922.096
		Other Income	9.837	8.233	3.481
		TOTAL (A)	925.456	832.307	925.577
Less	EXPENSES
		Consumption materials changes inventories	628.419	551.047
		Manufacturing other operating expenses	140.417	128.038	842.540
		Employee related expenses	24.041	21.263
		Administrative selling other expenses	48.967	52.664
		Prior Period expenses	0.004	0.000
		TOTAL (B)	841.848	753.012	842.540
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		83.608	79.294	83.037
Less	FINANCIAL EXPENSES (D)		39.918	39.434	38.563
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		43.690	39.860	44.474
Less/ Add	DEPRECIATION/ AMORTISATION (F)		22.645	21.811	20.947
	PROFIT BEFORE TAX (E-F) (G)		21.045	18.049	23.527
Less	TAX (H)		8.411	6.805	8.841
Add	AMOUNT TRANSFERRED FROM ASSETS REVALUATION RESERVES ON ACCOUNT OF DEPRECIATION (G-H) (I)		0.000	0.000	2.441
	PROFIT AFTER TAX (G-H) (I)		12.634	11.244	17.127
	BALANCE CARRIED TO THE B/S		15.075	0.000	17.127
	Earnings Per Share (Rs.)		1.25	1.37	1.55

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.36	1.35	1.85
Net Profit Margin (PBT/Sales)	(%)	2.27	2.19	2.55
Return on Total Assets (PBT/Total Assets}	(%)	2.24	2.09	2.83
Return on Investment (ROI) (PBT/Networth)		0.07	0.06	0.08
Debt Equity Ratio (Total Liability/Networth)		1.76	1.63	1.71
Current Ratio (Current Asset/Current Liability)		1.62	1.95	1.92

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
Creditors due small micro enterprises	0.849	1.893	226.612
Creditors due others	300.221	205.122
Total	301.070	207.015	226.612

PROGRESS REVIEW

The Company has witnessed one more year of profit. The Shareholders may note that the Company since its inception has conducted its business activities and has realized profits without interruptions, from year to year. During the year, once again, the production achieved was to the full capacity of the facilities installed. The Company produced 35,580.616 M.T. during the year and has sold 35,628.176 MT in a competitive market. Unlike the previous year, the Company did not continue with production for Job work but undertook the entire manufacturing for itself. The realization of profits has assisted timely servicing of secured loans. The Grievance of the Shareholders who had preferred to lodge a Petition before the Company Law Board in the year 2006 is not yet concluded. The Appeal filed by the Company in the year 2010 against the order of the Company Law Board is awaiting disposal by the Hon’able Bombay High Court.

FORM 8

Corporate identity number of the company	U21010MH1993PLC074945
Name of the company	SHAH PULP AND PAPER MILLS LIMITED
Address of the registered office or of the principal place of business in India of the company	Angeline Apartment, B/202 2nd Floor, Sarojini Road, Vile Parle (West), Mumbai – 400056, Maharashtra, India Email Id : shahpulp@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90352520
Type of charge	Immovable property Book debts pledge of 2.500 Millions shares and charge on Current Assets
Particular of charge holder	State Bank of India, MID Corporate Branch, 1^st Floor, Shanti Complex, Gidc, Vapi, Valsad – 396195, Gujarat, India Email Id : sbi.01658@sbi.co.in
Nature of instrument creating charge	Stamped Form C.5 dated 30.06.2011 for grant of Individual Limit within the overall limit increased from Rs. 318.000 Millions to Rs. 331.000 Millions
Date of instrument Creating the charge	30.06.2011
Amount secured by the charge	Rs.331.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit - Base rate + 4.5% Term Loan I - Base Rate + 5.50% Term Loan II - SBAR + 1.00% Terms of repayment Working Capital - on demand Margin Raw Material Indigenous and Imported - 25% Stocks in Process - 40% Finished Goods - 30% Stores and Spares - 50% Book Debts - (90 days) - 50% LC - 15% BG - 15% Extent and operation of the charge CC/LC/BG/ CL: Hypothecation of all the present and future chargeable current assets of the Company Term Loans: First Charge over fixed assets purchased out of bank finance Others Guarantee by Directors Shri A K Shah, Shri Mahendra Shah, Shri Deepen Gosrani and Shri Ashok Z Shah and Guarantor Shri Shailendra R Shah
Short particulars of the property or asset(s) charged (including complete address and location of the property)	2nd Charge on all the rpesent and future residual value of fixed Assets of Company at Plot No 97 and adjoining Plot , GIDC Silvassa Vapi, Pledge of 25 Lacs Shares, For term Loan: Extension of charge on the current assets of the Company Immoveable property of the Company situated at Survey Nos. 768/p, 507/1, 507/2, 508/2, 504/1, 500/p, 502/p, 506/p of Plot No. 97 GIDC Vapi, Gujarat, India
Date of instrument modifying the charge	30.06.2010
Particulars of the present modification	Stamped Form C.5 dated 30.06.2011 for grant of Individual Limit within the overall limit increased from Rs. 318.000 Millions to Rs. 331.000 Millions

Contingent Liabilities (As on 31.03.2011):

Contingent liabilities are disclosed when the Company has a possible or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

a) A Demand of Rs.1.472 Millions has been raised against the Company by the Sales Tax Department, Surat on account of the differential amount of Sales Tax and Purchase Tax, including interest and penalty. The Company has made payment of Rs.1.261 Millions under protest and has filed an appeal before the Ahmedabad Tribunal. The liability of the demand is contingent till the disposal of appeal by the Appellate authority.

b) A demand of Rs.1.052 Millions was raised against the company by the Central Excise Department on account of duty on sale of imported waste paper. The company has made payment thereof under protest. The company has filed an appeal against such assessment. The liability is contingent till the disposal of the appeal by the respective authority.

c) Outstanding demands raised by the Income Tax department on account of disallowance of expenses are as follows.

Assessment Year	Assessment Dues	Penalty u/s 271(I) (c)
2003-2004	--	1.257
2004-2005	--	0.433
2005-2006	1.102	0.933
2006-2007	1.091	--
2007-2008	--	--
2008-2009	0.390	--
2009-2010	0.421	--

The Company has preferred appeals against the aforesaid orders before the appellate authorities. The liability of the demand is contingent till the disposal of the appeals by the appellate authorities.

d) During the year the company has provided a bank guarantee aggregating to Rs.15.000 Millions to Additional Director General Employment News, Ministry of I and B and of Rs.100000/- to Gujarat Pollution Control Board as an obligation towards contracts entered into with the said parties.

Fixed Assets

• Factory building
• Building
• Bore well
• Compound wall
• WBM Road
• Electrical installation
• Panel boards, switch gears and transformers
• Plant and machinery
• Crane
• Fire fighting equipment
• Laboratory equipment
• Weighing scale
• Boiler and coal handling unit
• ETP Plant
• Furniture and fixtures
• Air conditioner
• Office appliances
• ATP Pulper
• Pressure screen
• High density tower
• Capitive power plant
• Turbine – 2
• Packing machine
• Gas based D.G
• Hot Dispersion
• Leasehold land

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.49.64
UK Pound	1	Rs.78.35
Euro	1	Rs.65.80

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		54

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.