MIRA INFORM REPORT

Report Date :

23.02.2012

IDENTIFICATION DETAILS

Name :	NICE PAPERS LIMITED
Registered Office :	102, Shri Mohini Complex, Kingsway, Nagpur – 440001, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.08.1991
Com. Reg. No.:	11-063114
Capital Investment / Paid-up Capital :	Rs.15.033 Millions
CIN No.: [Company Identification No.]	L21090MH1991PLC063114
TAN No.: [Tax Deduction & Collection Account No.]	NGPN0654D
PAN No.: [Permanent Account No.]	AABCN8280F
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Kraft Paper.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (28)

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

Maximum Credit Limit :	USD 69000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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.

INFORMATION DENIED BY

Name :	Mr. Pratik Saraf
Designation :	Manager
Date :	18.02.2012

LOCATIONS

Registered Office :	102, Shri Mohini Complex, Kingsway, Nagpur – 440001, Maharashtra, India
Tel. No.:	91-712-2521349
Fax No.:	91-712-2544613
E-Mail :	saraf_ngp@sancharnet.com saraf_ngp@bsnl.in
Factory :	Survey No. 138, Village Ghoghali, Kamleshwar, Nagpur, Maharashtra, India

DIRECTORS

As on 24.09.2011

Name :

Mr. Rajendra Kumar Basudeo Saraf

Designation :

Whole-time director

Address :

201, Silver Oak, Raj Nagar, Katol Road, Nagpur – 440013, Maharashtra, India

Date of Birth/Age :

15.03.1954

Date of Appointment :

28.08.1991

DIN No.:

00326460

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
U24100MH1973PTC016592	Anupam Extractions Limited	Director	30/07/1983	30/07/1983	-	Active	NO
L21090MH1991PLC063114	Nice Papers Limited	Whole-time director	1/09/2010	28/08/1991	-	Active	NO
L63023MH1980PLC023000	Out of City Travel Solutions Limited	Director	30/09/2009	5/03/2009	23/12/2009	Active	NO

Name :

Mr. Aditya Surendra Kumar Saraf

Designation :

Whole-time director

Address :

BE 3, Ganga Sagar, Canal Road, Ramdas Peth, Nagpur – 440010, Maharashtra, India

Date of Birth/Age :

01.08.1975

Date of Appointment :

01.07.2001

DIN No.:

00840126

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
L21090MH1991PLC063114	Nice Papers Limited	Whole-time director	1/09/2010	1/07/2001	-	Active	NO
U45201WB2006PTC169365	Hi-Tec Precision Engineering Private Limited	Director	14/08/2006	14/08/2006	20/10/2011	Active	NO
U24100MH1973PTC016592	Anupam Extractions Limited	Director	12/03/2008	12/03/2008	-	Active	NO
U74990MH2009PTC195966	T I Trade Services Private Limited	Director	23/09/2009	23/09/2009	-	Active	NO

Name :

Mr. Nilesh Virendra Jain

Designation :

Director

Address :

Durgaiya Road, Sadar, Nagpur – 440001, Maharashtra, India

Date of Birth/Age :

22.05.1970

Date of Appointment :

31.07.2009

DIN No.:

02776849

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
L21090MH1991PLC063114	Nice Papers Limited	Director	26/09/2009	31/07/2009	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Pratik Saraf
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 24.09.2011

Names of Shareholders	No. of Shares
Rajendra Kumar Basudeo Saraf	62700
Aditya Surendra Kumar Saraf	20000

Equity Share Break up (Percentage of Total Equity)

As on 24.09.2011

Category	Percentage
Bodies corporate	12.60
Directors or relatives of Directors	46.60
Other top fifty shareholders	40.80
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Kraft Paper.

Products :

Product Description	Item Code
Kraft Paper	48.04

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Kraft Paper	MT	14400	1400	11879.857

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· Axis Bank Limited, Trishul 3^rd Floor, Opposite Samartheshwar Temple, Law Garden Elliisbridge, Ahmedabad – 380006, Gujarat, India

· Oriental Bank of Commerce, Nagpur, Maharashtra, India

· HDFC Bank Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
CASH CREDIT
From Oriental Bank of Commerce, Nagpur A/c No.5064 (Against Hypothecation of Stock and Book Debts)	18.643	18.164
CAR LOAN
From HDFC Bank Limited (A/c No.13789772)	0.072	0.230
From HDFC Bank Limited (A/c No.15433802)	0.215	0.339
From HDFC Bank Limited (A/c No.16928405)	0.661	0.000
From HDFC Bank Limited (A/c No.17189799)	0.910	0.000
FROM LIC	2.505	3.253
Total	23.006	21.986
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Short Term Loan and Advances From Other Including Directors Relatives (Interest Free)
A K Corporation	1.180	1.180
N K Corporation	1.180	1.180
S K Corporation	1.180	1.180
R K Corporation	1.180	1.180
Aditya Trust	0.570	0.570
Nitin Trust	0.570	0.570
Pratik Trust	0.570	0.570
Roshan Trust	0.570	0.570
Short Term Loan and Advances From Other Including Directors Relatives (Interest Free)
A K Corporation	2.071	2.902
N K Corporation	0.970	1.218
S K Corporation	6.226	6.106
R K Corporation	2.596	2.422
Sales Tax Deffered Loan	5.856	6.473
Total	24.719	26.121

Banking Relations :	--
Auditors :
Name :	Krishna Murari Agarwal and Company Chartered Accountants
Address :	Plot No.10/2, I. T. Park, Behind Infotech Tower, Parsodi, Nagpur – 440022, Maharashtra, India
PAN.:	AABFK4223G

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1750000	Equity Shares	Rs.10/- each	Rs.17.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1503300	Equity Shares	Rs.10/- each	Rs.15.033 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		15.033	15.033	15.033
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		3.000	3.000	3.000
4] (Accumulated Losses)		(0.860)	(5.449)	(9.048)
NETWORTH		17.173	12.584	8.985
LOAN FUNDS
1] Secured Loans		23.006	21.986	21.502
2] Unsecured Loans		24.719	26.120	26.497
TOTAL BORROWING		47.725	48.106	47.999
DEFERRED TAX LIABILITIES		2.667	0.000	0.000
TOTAL		67.565	60.690	56.984
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		34.557	31.146	32.289
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.145	0.145	0.145
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.997	9.557	5.940
	Sundry Debtors	26.145	22.589	21.402
	Cash & Bank Balances	0.261	0.405	0.174
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.916	8.140	9.875
Total Current Assets		52.319	40.691	37.391
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	14.778	9.291	10.044
	Other Current Liabilities	2.181	1.041	1.046
	Provisions	2.497	0.960	1.751
Total Current Liabilities		19.456	11.292	12.841
Net Current Assets		32.863	29.399	24.550
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		67.565	60.690	56.984

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	282.077	213.198	157.652
		Other Income	2.115	0.121	0.080
		TOTAL (A)	284.192	213.319	157.732
Less	EXPENSES
		Raw Materials Stores and Spares Consumed	219.984	163.717	125.985
		Manufacturing Expenses	28.577	24.661	18.325
		Salaries, Wages, bonus and benefits to Employees	4.347	3.065	2.502
		Administrative and Selling Expenses	15.965	11.566	8.277
		Repairs and Maintenance	1.150	0.834	0.376
		Loss on sale of car	0.250	0.000	0.000
		(Increase) / Decrease in Stock	(1.306)	(0.719)	(0.398)
		TOTAL (B)	268.967	203.124	155.067
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.225	10.195	2.665
Less	FINANCIAL EXPENSES (D)		3.107	3.164	3.300
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.118	7.031	(0.635)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.095	2.886	2.795
	PROFIT BEFORE TAX (E-F) (G)		9.023	4.145	(3.430)
Less	TAX (I)		4.434	0.546	(0.069)
	PROFIT AFTER TAX (G-I) (J)		4.589	3.599	(3.499)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(5.449)	(9.048)	(5.549)
	BALANCE CARRIED TO THE B/S		(0.860)	(5.449)	(9.048)
	Earnings Per Share (Rs.)		3.05	2.39	(2.33)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.61	1.69	(2.22)
Net Profit Margin (PBT/Sales)	(%)	3.20	1.94	(2.17)
Return on Total Assets (PBT/Total Assets}	(%)	10.15	6.42	(4.92)
Return on Investment (ROI) (PBT/Networth)		0.53	0.33	(0.39)
Debt Equity Ratio (Total Liability/Networth)		3.91	4.72	6.77
Current Ratio (Current Asset/Current Liability)		2.69	2.95	2.92

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors

(Rs. In Millions)

PARTICULARS	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors for Suppliers	10.696	5.391	1.639
Sundry Creditors for Expenses and Advance from Customers	4.082	3.900	8.405
TOTAL	14.778	9.291	10.044

Financial Results:

The company posted another year of impressive results testifying to the robustness of the corporate strategy of creating multiple drivers of growth. The company recorded a Gross Profit of Rs.9.023 Millions during the year 2010-11 as compared to the Gross Profit Rs.4.144 Millions during the previous year 200-10 and Net Profit of Rs.4.589 Millions during the current year as against a Net Profit of Rs.3.599 during the previous financial year. In years to come the company is looking forward to give continued growth and profits to its valuable shareholders.

Contingent Liability:

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010
Contingent Liability not provided for in respect of claims, against the company not acknowledged as debts	0.188	0.089
Bank Guarantee / LC Outstanding	0.330	0.373
Estimated amount of contracts remaining to be executed on Capital Account and not provided for	0.000	0.000
For Sales Tax Deferral	1.218	0.000

Bankers Charges Report as per Registry

Corporate identity number of the company	L21090MH1991PLC063114
Name of the company	NICE PAPERS LIMITED
Address of the registered office or of the principal place of business in India of the company	102 Shri Mohini Complex, Kingsway, Nagpur – 440001, Maharashtra, India Email : saraf_ngp@bsnl.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10320228
Type of charge	Immovable property
Particular of charge holder	Axis Bank Limited, Trishul 3^rd Floor, Opposite Samartheshwar Temple, Law Garden Elliisbridge, Ahmedabad – 380006, Gujarat, India Email : K.Chengappa@axisbank.com
Nature of instrument creating charge	Memorandum of entry ( equitable mortgage by deposit of title deeds dated 07.12.2011)
Date of instrument Creating the charge	07.12.2011
Amount secured by the charge	Rs.50.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per the terms and conditions of memorandum of entry (equitable mortgage by deposit of title deeds dated 07.12.2011) Terms of repayment As per the terms and conditions of memorandum of entry ( equitable mortgage by deposit of title deeds dated 07.12.2011) Margin As per the terms and conditions of memorandum of entry ( equitable mortgage by deposit of title deeds dated 07.12.2011) Extent and operation of the charge First and exclusive charge over the properties mortgaged vide memorandum of entry ( equitable mortgage by deposit of title deeds dated 07.12.2011)
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All that piece and parcel on non agricultural land adm hector 2.92R bearing Survey No. 138, Mouza- Ghogali, P.H. No. 20 Situated at Village Ghogli, P.C. No. 20, TQ- Kalmeshwar, District- Nagpur, Maharashtra, India
Particulars of the present modification	By way of this modification additional security has been given by creating charge over the immovable properties in order to secure the due repayment of Rs. 50.000 Millions

Fixed Assets:

· Leasehold Land

· Factory Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· Computer

· Tractor

· Computer Software

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.49.25
UK Pound	1	Rs.76.75
Euro	1	Rs.65.16

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	3
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	2
--CREDIT LINES	1~10	2
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.