MIRA INFORM REPORT

Report Date :

25.01.2012

IDENTIFICATION DETAILS

Name :	SHALIMAR WIRES INDUSTRIES LIMITED
Registered Office :	25, Ganesh Chandra Avenue, P S Bowbazar, Kolkata-700013, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.09.1996
Com. Reg. No.:	081521
Capital Investment / Paid-up Capital :	Rs.306.745 Millions
CIN No.: [Company Identification No.]	L74140WB1996PLC081521
PAN No.: [Permanent Account No.]	AAICS2281G
Legal Form :	A Public Limited Liability Company. The Company’s Shares are listed on stock exchange.
Line of Business :	Manufacturer of Synthetic Wire Cloth, Metallic Wire Cloth, Pulp mill Wire Cloth, dryer screen, auto guides dandy rolls and accessories.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Sick Unit
Payment Behaviour :	Slow and delayed
Litigation :	--
Comments :	The company has been declared as a sick unit by the Board for Industrial and Financial Reconstruction (BIFR). Financials of the company are weak and poor. Payments are reported to be slow and delayed. The company can be considered for business dealings on a safe and 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/ Head Office / Factory :	25, Ganesh Chandra Avenue, P S Bowbazar, Kolkata-700013, West Bengal, India
Tel No:	91-33-22349308 / 11
Fax No.:	91-33-22116880
E-Mail :	kejriwal@shalimargroup.biz swilcama@cal2.vsnl.net.in
Website :	http://www.shalimargroup.biz
Area :	4500 sq. ft.
Location :	Owned
Corporate Office/ Factory :	77 Netaji Subhas Road, P.O. Uttarpara-712258, West Bengal, India
Tel. No.:	91-33-26638186/ 245/ 259/ 26637305
Fax No.:	91-33-26633249 / 266337611
E-Mail :	swilutp@giascl01.vsnl.net.in
Branch Office:	127, H.B. Estate, Sonegaon, Khamla Road, Nagpur-440023, Maharashtra, India
Tel No.:	91-712-261898
Fax No.:	91-712-262027
Marketing Office :	Located at: · Ludhiana · Chandigarh · New Delhi · Ahmedabad · Lucknow · Mumbai · Indore · Nagpur · Mumbai · Bangalore · Hyderabad · Chennai · Coimbatore · Kolkata

DIRECTORS

As on 31.03.2011

Name :	Mr. Sunil Khaitan
Designation :	Chairman and Managing Director
Name :	Mr. Pradeep Kumar Sarkar
Designation :	Director
Date of Birth :	19.04.1941
Date of Appointment :	02.08.2011
Nature of expertise in specific functional area :	Mr. P.K. Sarkar has almost 40 years experience in banking operations (developmental, commercial, international) and merchant banking, HRM, Securities Market etc. Mr. Sarkar has held several positions in State Bank of India since 1969. Mr. Sarkar was Dy. Managing Director & Group Executive (International Banking) from February, 2000 to November, 2001 and was head of International Banking Operations of State Bank of India as well as Head of Treasury Operations and Financial Control. Mr. Sarkar was the Executive Director of Calcutta Stock Exchange from February 2002 to March, 2003 and was in overall control and management of the Stock Exchange and was specially appointed to revamp the systems post 2002 financial irregularities. Mr. Sarkar was also Banking Ombudsman for West Bengal and Sikkim, Reserve Bank of India from February, 2004 to November, 2006 and was involved in resolution of grievances against deficiency in banking service.
Qualification :	M.A. (English) Certified Associate, Indian Institute of Bankers
List of outside directorship :	(1) GTFS Multi Services Limited (2) GTFS Training Services Limited (3) Bengal Integrated Auto Industrial Park Private Limited (4) Luxmi Portfolio Limited (5) Abira Green Energy Private Limited (6) Guiness Securities Limited (7) Jagaran Microfinance Limited
Name :	Mr. Dipak Dasgupta
Designation :	Director
Date of Birth :	05.08.1937
Date of Appointment :	27.07.2002
Nature of expertise in specific functional area :	Mr. Dipak Dasgupta is a specialist in Corporate Strategy and Restructuring. He has to his credit turning round many Units and streamlining the same. During the last three decades he has series of success stories, which has been appreciated at the highest level in the Organisation that he has worked with. Mr. Dasgupta is well known for his expertise in HRM and Corporate Relations and has been closely associated with Chambers of Commerce and CII. He is the Chairman of Core Committee on HR. Mr. Dasgupta is well known for man management and leadership qualities and chairs regularly Seminers on management. Mr. Dasgupta has been successful in signing series of important agreements with full emphasis on change of work culture and productivity. His overall track record is excellent which is widely acclaimed by all concerned. Mr. Dasgupta is also a well known sportsman having represented Ranji Trophy Cricket for several years and played against Australia and West Indies. He is the President of West Bengal Sports Federation and closely associated with Cricket Association of Bengal.
Qualification :	B. Com, MBA
List of outside directorship :	(1) Rainbow Productions Limited (2) Shalimar Industries Limited (3) Satya Sons Services Limited (4) Satmaco Marchandise Private Limited (5) Keystone Marketing India Private Limited
Name :	Mr. Dipak Rudra
Designation :	Director
Name :	Mr. Probir Roy
Designation :	Director
Name :	Mr. B. Dasgupta
Designation :	(Nominee Director representing IDBI)
Name :	Mr. Satish Kumar Gupta
Designation :	(Nominee Director representing ARCIL)

KEY EXECUTIVES

EXECUTIVES :
Name :	Mr. R P Dhanuka
Designation :	Senior President
Name :	Mr. D Khaitan
Designation :	President – Paper Machine Wire Unit (Nasik)
Name :	Mr. S J Sengupta
Designation :	Chief Financial Officer
Name :	Mr. S K Kejriwal
Designation :	General Manager (Corporate Affairs) and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.9.2011

Names of Shareholders		No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	12697036	40.11
Bodies Corporate	15127813	47.79
Sub Total	27824849	87.90
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	27824849	87.90
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	654	--
Financial Institutions / Banks	13190	0.04
Insurance Companies	763576	2.41
Sub Total	777420	2.46
(2) Non-Institutions
Bodies Corporate	1188837	3.76
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	1677454	5.30
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	176486	0.56
Any Others (Specify)	10077	0.03
Non Resident Indians	9284	0.03
Clearing Members	793	--
Sub Total	3052854	9.64
Total Public shareholding (B)	3830274	12.10
Total (A)+(B)	31655123	100.00
C) Shares held by Custodians and against which Depository Receipts have been issued	--	--
(1) Promoter and Promoter Group	--	--
(2) Public	--	--
Sub Total	--	--
Total (A)+(B)+(C)	31655123	--

BUSINESS DETAILS

Line of Business :

Manufacturer of Synthetic Wire Cloth, Metallic Wire Cloth, Pulp mill Wire Cloth, dryer screen, auto guides dandy rolls and accessories.

Products :

Product Description	ITC Code
Synthetic Fabric for Pulp, Paper ands Board Industry	59.11
Copper and Copper Alloy Wire	74.08
Stainless Steel Wire Cloth	73.14

PAPER MILLS PRODUCTS:

Synthetic Wire Cloth

* Single Layer Forming Fabric
* Double Layer Forming Fabric
* 2.5 Layer Forming Fabric
* Three Layer Forming Fabric

Metallic Wire Cloth 

* Phosphor Bronze Wire Cloth
* Stainless Steel Wire Cloth

· Pulp Mill Wire Cloth

· Endless Diagonal Seam Covers

· Dryer Screen

· Dandy Rolls

· Accessories

· Auto Guides

· Cleaning System

· Watermarks

· Water Filters

Non Ferrous Wires:

· Coated EDM Wires

· Plain EDM Wires

· Copper Alloy Wires

· Phosphor Bronze Wires

· Zipper Flat Wires

· Tooth Brush Anchor Wires

· Nickel Silver Wires

· Brass Wires

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Wire Cloth/ Fabric for Pulp, Paper and Board Industry	Sq. mtr	174000	207000	220280
Cooper and Copper Alloy Wires including Monel Wire	M.T	1520	900	204
Stainless Steel Wires	M.T	250	125	--
Dandy Roll and Dandy Roll Bracket	No.	100	420	15

GENERAL INFORMATION

No. of Employees :	Not Available
Bankers :	· Allahabad Bank, Kolkata · Canara Bank · Bank of India · Indian Overseas Bank · State Bank of India · HDFC Bank

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)		As on 31.03.2010 (Rs. in Millions)
350,000 (Previous Year : 350,000) 19% Redeemable Non-Convertible Debentures of Rs. 100/- each privately placed with NIA		2.146		2.146
100,000 (Previous Year : 100,000) 19% Redeemable Non-Convertible Debentures of Rs. 100/- each privately placed with OIC		8.989		8.989
100,000 (Previous Year : 100,000) 20% Redeemable Non-Convertible Debentures of Rs. 100/- each privately placed with NIA		10.546		10.546
1,000,000 (Previous Year : 1,000,000) 18% Redeemable Non-Convertible Debentures of Rs. 100/- each	100.000		100.000
Less : Amount Due	10.000	90.000	10.000	90.000
374,467 (Previous Year : 380,982) 14% Secured Redeemable Debentures of Rs. 30/- each	11.429		11.429
Less : Waiver pursuant to BIFR Scheme	0.207		0.000
Add : Adjustment pursuant to BIFR Scheme	0.012		0.000
	11.234		11.429
249,375 (Previous Year : 249,375) 14% Secured Redeemable Debentures of Rs. 20/- each	4.987		4.987
10,300 (Previous Year : 10,300) 14% Secured Redeemable Debentures of Rs. 10/- each	0.103		0.103
	16.324		16.519
Less : Allotment Money in Arrear (Due from Other than Directors)	0.087		0.087
	16.237		16.432
Less : Shown as Investor Education and Protection Fund under the head ‘Current Liabilities & Provisions’	15.225	1.012	15.214	1.218
From Financial Institutions, Banks & ARCIL
- Term Loans		827.863		944.364
Interest Accrued and Due		1666.294		1863.548
Total		2606.850		2920.811
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)		As on 31.03.2010 (Rs. in Millions)
Short Term
From Promoters/Directors		1.675		16.750
From Bodies Corporate		1.404		16.292
From SICOM	4.758		14.657
Sales Tax Loan (under Sales Tax Deferral Scheme)	28.906	33.664	31.177	45.834
Total		36.746		78.876

Banking Relations :

--

Auditors :

Name :

S S Kothari and Company

Chartered Accountant

Name :

G P Agarwal and Company

Chartered Accountnat

Solicitors :

• Khaitan and Company
• Jhunjhunwala and Company
• L P Agarwalla and Company

Related Parties :

· SWIL International Pte Limited

· Sunil Healthcare Limited

· Shalimar Industries Limited

· ASIL Industries Limited

· Satya Sons Services Limited

CAPITAL STRUCTURE

After 30.09.2011

Authorised Capital : Rs.600.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.319.245 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.2/- each	Rs.100.000 Millions
5000000	Preference shares	Rs. 100/- each	Rs.500.000 Millions
	Total		Rs.600.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
6655123	Equity Shares	Rs. 10/- each	Rs.66.551 Millions
	Less : Reduction due to capital Restructuring		Rs.53.240 Millions
2934349	Preference Shares	Rs. 100/- each	Rs.293.434 Millions
	Total		Rs.306.745 Millions

Note: Face value of Share Capital reduced to Rs. 2/- pursuant to Capital Restructuring

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		306.745	359.986	359.990
2] Share Application Money		12.000	0.000	0.000
3] Reserves & Surplus		(2047.678)	(2687.068)	(2891.750)
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		(1740.933)	(2327.082)	(2531.760)
LOAN FUNDS
1] Secured Loans		2606.850	2920.811	3255.920
2] Unsecured Loans		36.743	78.876	73.870
TOTAL BORROWING		2643.593	2999.687	3329.790
DEFERRED TAX LIABILITIES		9.570	9.571	9.570
TOTAL		912.230	682.176	807.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		401.098	449.466	546.930
Capital work-in-progress		3.340	1.438	11.380
INVESTMENT		3.161	3.466	3.370
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	253.435	246.119	244.330
	Sundry Debtors	242.366	213.438	209.560
	Cash & Bank Balances	92.351	68.155	85.890
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	153.534	135.981	141.000
Total Current Assets		741.686	663.693	680.780
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	191.053	405.216	433.070
	Other Current Liabilities	32.277	28.946
	Provisions	1.725	1.725	1.810
Total Current Liabilities		225.055	435.887	434.880
Net Current Assets		516.631	227.806	245.900
MISCELLANEOUS EXPENSES		0.000	0.000	0.020
TOTAL		924.230	682.176	807.600

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	839.957	775.788	730.810
		Other Income	16.604	10.470	20.740
		TOTAL (A)	856.561	786.258	751.550
Less	EXPENSES
		Materials Consumed	209.105	185.583
		Personnel Expenses	152.294	139.126
		Other Expenses	279.740	284.009
		Exceptional Income / Expenses	(466.769)	(199.046)
		Increase/Decrease in Stock	(5.814)	4.403
		TOTAL (B)	168.556	414.075	263.740
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		688.005	372.183	487.810
Less	FINANCIAL EXPENSES (D)		43.258	103.843	372.780
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		644.747	268.340	115.030
Less/ Add	DEPRECIATION/ AMORTISATION (F)		58.598	63.660	86.340
	PROFIT BEFORE TAX (E-F) (G)		586.149	204.680	28.690
Less	TAX (I)		0.000	0.000	2.550
	PROFIT AFTER TAX (G-I) (J)		586.149	204.680	26.140
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(2961.863)	[3166.543]	[3192.680]
	Adjustment on account of capital Restructuring		299.272	0.000	NA
	BALANCE CARRIED TO THE B/S		(2076.441)	(2961.863)	NA
	Earnings Per Share (Rs.)		88.07	30.76	3.93

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2011	30.09.2011
Type	1^st Quarter	2^nd Quarter
Audited / UnAudited	UnAudited	UnAudited
Net Sales	212.75	216.62
Total Expenditure	162.54	180.17
PBIDT (Excl OI)	50.21	36.45
Other Income	0.50	0.53
Operating Profit	50.71	36.98
Interest	8.39	8.37
Exceptional Items	0.00	0.00
PBDT	42.32	28.61
Depreciation	13.79	13.80
Profit Before Tax	28.53	14.81
Tax	0.00	0.00
Provisions and contingencies	0.00	0.00
Profit After Tax	28.53	14.81
Extraordinary Items	0.00	0.00
Prior Period Expenses	0.00	0.00
Other Adjustment	0.00	0.00
Net Profit	28.53	14.81

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	68.43	26.03	3.48
Net Profit Margin (PBT/Sales)	(%)	69.78	26.38	3.93
Return on Total Assets (PBT/Total Assets}	(%)	51.29	18.39	2.34
Return on Investment (ROI) (PBT/Networth)		(0.34)	(0.09)	(0.01)
Debt Equity Ratio (Total Liability/Networth)		(1.65)	(1.48)	1.49
Current Ratio (Current Asset/Current Liability)		3.30	1.52	1.57

LOCAL AGENCY FURTHER INFORMATION

OPERATIONAL REVIEW

During the year, the total income of the Company amounted to Rs.856.561 Millions as compared to Rs.786.258 Millions in the previous year. The operating surplus (profit before interest and depreciation) of the Company was Rs.221.236 Millions as compared to Rs.225.944 Millions in the previous year. The net profit (before considering exceptional item) during the year is Rs.119.380 Millions as compared to Rs.5.634 Millions in the previous year. The Company has accounted for relief and concession granted by BIFR in terms of Rehabilitation Scheme of Rs.466.769 Millions in the current year, as compared to Rs.199.046 Millions in the previous year. The net profit (after aforesaid adjustment) during the year amounted to Rs.586.149 Millions, as compared to Rs.204.680 Millions in the previous year.

REHABILITATION SCHEME

As the are aware, the Rehabilitation Scheme of the company, under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 was sanctioned by Hon’ble Board For Industrial And Financial Reconstruction vide its order dated June 10, 2010. The Scheme envisaged comprehensive financial restructuring of the company. The substantial part of the Scheme have been implemented. The impact of the order in terms of various reliefs and concessions granted by BIFR, has been reflected in the books of accounts of the Company in the current financial year.

MANAGEMENT DISCUSSION AND ANALYSIS

INDUSTRY STRUCTURE AND DEVELOPMENTS

Paper Machine Clothings (PMC)

PMC Industries are solely dependent on the Paper making activities. Their per-capita paper consumption is only 7.0 Kgs as against world’s average of 56.0 Kgs., indicating great potentiality for growth at home. Besides, the real growth in Paper making activity is taking place in Asian region while the other part of the world has already come to a saturating stage. Therefore, being stationed in the developing region and with sufficient knowledge about paper making condition of Asian sub-continent, they see a great future in export potentiality for PMC products. They are also in the process of developing new PMC products to fetch more business from export market.

EDM Wires

Use of EDM machines in Tool Room Industry is gaining popularity all over the world. The situation has become challenging to the EDM wire makers with the invention of developed EDM machines and it has increased demand of specialty EDM wires happily, which are the major product of Uttarpara Plant. Similar situation prevails all the over the world and with their reputation in export market with their Patented products especially to the developed countries, they see a bright future for this product. A new product DYNA “XT” is specially being developed to fetch more business from the export market as well as home market.

OUTLOOK

The outlook of Company appears bright. The Company anticipates modest growth in its operations in coming years and have taken steps to improve further in following areas :-

• Maintain high Quality Standards consistently.
• Create wide based product range to cater to export market.
• Modernize after-sales service.
• Improve efficiency at all states from procurement to disposal.
• Upgrading the Old machinery.
• Develop new design of fabric.

Contingent Liability:

Particulars	31.03.2011	31.03.2010
Sales Tax Demands Excludes amount paid under protest, Rs.2.465 Millions (previous year Rs.2.472 Millions)	215.731	212.499
Excise Demands Excludes amount paid under protest, Rs. 2.467 Millions (previous year Rs.2.477 Millions)	190.859	190.486
Demands by Enforcement Directorate, Govt. of India, Persuant to the provisions of FEMA, 1999 (Settled during the year)	0.000	2.740
Municipal Tax Demands Excludes advance paid Rs.0.250 Million (previous year Rs. 0.250 Million)	1.169	2.020
Bank Guarantees Outstanding	8.134	2.837
Claims against the Company not acknowledged as debts	53.723	54.064

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH SEPTEMBER, 2011

				Rs in Millions	Rs in Millions
	Particulars			3 Months ended	Half Year ended
				[30.09.2011]	[30.09.2011]
				Unaudited	Unaudited
1	(a) Net Sales/Income from Operations			215.660	427.606
	(b)Other Operating Income			0.961	1.763
	Total Operating Income			216.621	429.369
2	Expenditure
	(a)		Increase/(Decrease) in Stock-in-trade and work in progress	14.689	19.302
	(b)		Consumption of raw materials	59.308	115.800
	©		Purchase of traded Goods	0.000	0.000
	(d)		Employees Cost	41.337	82.369
	(e)		Depreciation	13.800	27.592
	(f )		Other Expenditure	64.832	125.132
	(g)		Total (Any item exceeding 10% of the total Expenditure to be shown separately)	193.966	370.233
3			Profit from operation before other income, interest and other exceptional items(1-2)	22.655	59.136
4			Other Income	0.527	1.027
5			profit before interest and exceptional items(3+4)	23.182	60.163
6	Interest			8.374	16.759
7	Profit after interest but before exceptional items(5-6)			14.808	43.404
8	Exceptional Items			0.000	0.000
9	Profit(+)/Loss(-) from Ordinary Activities before tax (7-8)			14.808	43.404
10	Tax Expenses			0.000	0.000
11	Net Profit(+)/Loss(-) from Ordinary Activities after tax( 9-10)			14.808	43.404
12	Extra Ordinary Items			0.000	0.000
13	Net Profit(+)/Loss(-) for the period (1112)			148.808	43.404
14	Paid-up Equity Share Capital Rs.10/ per share			13.310	13.310
15	Reserves excluding revaluation reserves			12.500	12.500
16		Earning Per Share
(a)		Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		1.29	3.80
(b)		Basic and diluted EPS after Extraordinary items for the period, for the year to date and for the previous year(not to be annualised)		1.29	3.80
17		Public Shareholding
		Number of Shares		3829645	3829645
		Percentage of Shareholding		12.10%	12.10%
18		Promoters and Promoter group
		a) Pledged/Encumbered
		Number of shares		2825478	2825478
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		10.15%	10.15%
		Percentage of Shares (as a % of the total share capital of the Company)		8.92%	8.92%
		b) Non-encumbered
		Number of shares		Nil	Nil
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)		Nil	Nil
		Percentage of Shares (as a % of the total share capital of the Company)		Nil	Nil

Particulars	3 months ended (30.09.2011 Unaudited	Half year ended (30.09.2010) Unaudited
Segment Revenue (Net Sales/ Income from each segment)
Segment – Paper Mill Products	183.333	366.604
Segment – Strip and Wire	33.288	62.765
Segment – Others	0.000	0.000
Total	216.621	429.369
Less : Inter Segment Revenue	0.000	0.000
Net sales/ Income from Operations	216.621	429.369
Segment Results (Profit (+)/ Loss (-) before tax and interests from each segment
Segment – Paper Mill Products	33.368	77.008
Segment – Strip and Wire	(10.186)	(16.845)
Segment – Others	0.000	0.000
Total	23.182	60.163
Less: Interests	8.374	16.759
Total Profit Before Tax	14.808	43.404
Capital employed (segment Assets – Segment Liabilities)
Segment – Paper Mill Products	821.194	821.194
Segment – Strip and Wire	54.246	54.246
Segment – Others	0.000	0.000
Total	875.440	875.440

SUMMARY OF ASSETS AND LIABILITIES AS ON 30^TH SEPTEMBER 2011

	Rs in Millions
Particulars	Quarter ended
	As on 30.09.2011
	(Unaudited)
SHAREHOLDERS FUNDS
Share Capital	319.245
Reserves & Surplus	0.000
LOAN FUNDS	2589.040
TOTAL	2908.285
FIXED ASSETS	379.573
INVESTMENT	3.155
CURRENT ASSETS, LOANS & ADVANCES
Inventories	252.816
Sundry Debtors	245.821
Cash & Bank Balances	88.195
Other Current Assets	0.000
Loans & Advances	206.788
Less : CURRENT LIABILITIES & PROVISIONS
Other Current Liabilities	246.226
Provisions	16.499
Net Current Assets	530.895
Profit and Loss accounts	1994.662
TOTAL	2908.285

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Buildings

· Plant and Machinery

· Furniture and Fittings

· Office Equipments

· Vehicles

· Computers

· Patents

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Subject Uttarpara, was set up in 1962, with a mission to provide import substitution to the Indian Paper Industry, which was then totally dependent on imports for all its vital and significant machine clothing inputs. It earned the ISO 9001-1994 version certification in the year 1997. It was certified to ISO 9001-2000 version 03-03-2003 and earned ISO 9001-2008 certificate on 06/03/2009.

In the year 1980, the Company also started manufacturing EDM Wires for the Tool Room Industry. This was also an Import substitution item.

In the year 1981, the Company started manufacturing Synthetic Forming Fabric for the first time in India under collaboration with United Wires, U.K.

In the year 1986, the Company entered into a Technical Know-how arrangement with M/s. Tammet, OY of Finland to manufacture Double Layer Synthetic Forming Fabrics. These fabrics were required for High Speed Paper machines, which were coming up in India.

In the year 1990, Stainless Steel Dandy Roll was launched.

In the year 1992, the Company started, manufacturing Spirally Linked Canvas, which is used in the dryer section of the Paper Industry, The above- product has been well accepted and the demand for the said product is growing rapidly.

In the year 2006, Woven Dryer Screens were launched which have been well accepted.

Business Description

Subject engaged in the manufacture of a range of wires for use in clothing and healthcare and healthcare products.

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 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.49.97
UK Pound	1	Rs.77.74
Euro	1	Rs.65.09

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.