MIRA INFORM REPORT

Report Date :

30.01.2012

IDENTIFICATION DETAILS

Name :	INDO AFRIQUE PAPER MILLS PRIVATE LIMITED
Registered Office :	Village Pande, P. O. Sarole, Pune Satara Road, Taluka Bhor, Pune – 412205, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.02.1981
Com. Reg. No.:	11-023970
Capital Investment / Paid-up Capital :	Rs.106.070 Millions
CIN No.: [Company Identification No.]	U21099MH1981PTC023970
TAN No.: [Tax Deduction & Collection Account No.]	PNEI04775B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Writing Print, News Print, Packaging Paper.
No. of Employees :	140 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 430000
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. 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 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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Ashok Jain
Designation :	Accounts Manager
Contact No.:	91-9923405795
Date :	28.01.2012

LOCATIONS

Registered Office/ Factory :	Village Pande, P. O. Sarole, Pune Satara Road, Taluka Bhor, Pune – 412205, Maharashtra, India
Tel. No.:	91-2113-282342
Mobile No.:	91-9923405795 (Mr. Ashok Jain)
Fax No.:	Not Available
E-Mail :	ashokjain.indo@gmail.com jitupatel.indo@gmail.com
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :

Mr. Jitendra Ambalal Patel

Designation :

Managing director

Address :

70, Sopanbaug Co-operative Housing Society, Ghorpuri, Pune – 411001, Maharashtra, India

Date of Birth/Age :

02.05.1948

Date of Appointment :

02.01.1985

DIN No.:

00248302

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
U21099MH1981PTC023970	Indo Afrique Paper Mills Private Limited	Managing director	2/01/1985	2/01/1985	-	Active	NO
U99999MH1969PLC014398	Laxmi Board and Paper Mills Limited	Director	25/06/2004	25/06/2004	-	Active	NO

Name :

Mr. Manish Mahendra Patel

Designation :

Director

Address :

12, 13th Cross, Vani Vilas Mohalla, Jayalakshmi Puram, Mysore – 570002, Karnataka, India

Date of Birth/Age :

18.05.1959

Date of Appointment :

18.10.1994

DIN No.:

00128179

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
U99999MH1969PLC014398	Laxmi Board and Paper Mills Limited	Director	26/03/1990	26/03/1990	-	Active	NO
L85110KA1959PLC001352	The South India Paper Mills Limited	Managing director	9/10/1990	9/10/1990	-	Active	NO
U85110KA1984PTC006140	Bhadra Packaids Private Limited	Managing director	30/03/1994	30/03/1994	14/10/2011	Active	NO
U21099MH1981PTC023970	Indo Afrique Paper Mills Private Limited	Director	18/10/1994	18/10/1994	-	Active	NO
U02102KA1999PTC025847	Sai Carton Manufacturing Company Private Limited	Director	3/04/2002	3/04/2002	25/03/2009	Active	NO

Name :

Mr. Upendra Ambalal Patel

Designation :

Director

Address :

114, Parksedges Crescent N6 K3 B7, London Ontario, Canada

Date of Birth/Age :

18.11.1937

Date of Appointment :

24.12.1997

Date of Ceasing :

05.10.2011

DIN No.:

02482227

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
U21099MH1981PTC023970	Indo Afrique Paper Mills Private Limited	Director	24/12/1997	24/12/1997	5/10/2011	Active	NO

Name :

Mr. Ajay Dineshchandra Patel

Designation :

Alternate director

Address :

Aurum, Lala Jamnadas Gupta Marg, Deonar Farm Road, Deonar Behind Tata School, Mumbai – 400088, Maharashtra, India

Date of Birth/Age :

10.12.1968

Date of Appointment :

16.05.2010

DIN No.:

00466905

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
L85110KA1959PLC001352	The South India Paper Mills Limited	Director	31/08/1996	31/08/1996	-	Active	NO
U74999MH2002NPL135009	Kalyan Bhiwandi Industrial CETP	Director	26/02/2002	26/02/2002	-	Active	NO
U99999MH1969PLC014398	Laxmi Board and Paper Mills Limited	Whole-time director	1/07/2009	1/06/2003	-	Active	NO
U85110KA1984PTC006140	Bhadra Packaids Private Limited	Director	29/09/2004	29/09/2004	29/09/2011	Active	NO
U21099MH1981PTC023970	Indo Afrique Paper Mills Private Limited	Whole-time director	1/11/2011	16/05/2010	-	Active	NO

KEY EXECUTIVES

Name :	Mr. V S Sridhar
Designation :	Secretary
Address :	B/10/4 Bandhan Co-operative Housing Society, Kothrud, Pune – 411029, Maharashtra, India
Date of Birth/Age :	01.04.1954
Date of Appointment :	01.03.1992
PAN No.:	BJFPS8066M
Name :	Mr. Ashok Jain
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Ashok R. Patel	70
Jitendra A. Patel	448195
Mahendra A. Patel	69300
Ansuyaben M. Patel	206800
Meeta V. Patel	154847
Manish M. Patel and Arnav M. Patel	271632
Vandana M. Patel and Esha M. Patel	222082
Amrita S. Punja	226870
Sandhya J. Patel	395611
Beena J. Patel	292677
Reena J. Patel	292677
Upendra A. Patel and Vatsala U. Patel	228921
Sejal U. Patel	174390
Paulam U. Patel	219296
Balbindersingh I. Gill	372400
Ranbirsingh B. Gill	269773
Vikramsingh B. Gill	269766
Dinesh C. Patel and Swarn D. Patel	258500
Ajay D. Patel	458920
Avani Shamit Patel and Shamit B. Patel	137500

As on 20.11.2011

Names of Allottees	No. of Shares
Rajesh Natvarlal Modi	10000
Ila Rajesh Modi	451990
Mishir Rajesh Modi	10000
Rachit Rajesh Modi	3535000
Total	4006990

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

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	16.34
Directors or relatives of Directors	59.98
Other top fifty shareholders	23.68
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Writing Print, News Print, Packaging Paper.
Terms :
Selling :	Cash/ Credit
Purchasing :	Cash/ Credit

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

No. of Employees :

140 (Approximately)

Bankers :

· Canara Bank, Industrial Finance Branch, Red Cross Building 11, M.G. Road, Pune – 411001, Maharashtra, India

· State Bank of India, Corporate Division, Commercial Branch, N.G.N. Vaidya Marg, Mumbai – 400023, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	26.845	45.387
Working Capital loans banks secured	16.822	13.344
Working Capital loans others	13.697	12.235
Loan taken for vehicles	0.577	0.342
Loan taken for other fixed assets	0.666	2.959
Total	58.607	74.267

Notes:

(A) State Bank of India (Secured Against Hypothecation of Plant and Machinery and Guaranteed By Director.)(Installments Due Within One Year Rs.18.400 Millions)

(B) State Bank of India (Secured Against Hypothecation of Plant and Machinery and Guaranteed By Director)

(C) Canara Bank (Secured Against Hypothecation of Stock and Book Debts and Guaranteed By Managing Director )

(D) Canara Bank (Secured Against Hypothecation of Stock and Book Debts and Guaranteed By Managing Director )

(E) Bills Discounted With Canara Bank

(F) Bills Discounted With Canara Bank

(G) Sundaram Finance Loan - Tata Winger and Tata Indica (Installments Due Within One Year Rs.0.327 Million)

(H) Sundaram Finance Loan - Tata Winger and Tata Indica

(I) Canara Bank (Secured Against Hypothecation of Plant and Machinery and Guaranted by Directors)(Installments Due Within One Year Rs.0.665 Million)

(J) Canara Bank (Secured Against Hypothecation of Plant and Machinery and Guaranteed by Directors)

Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Deposits related parties unsecured	8.970	8.970
Deferred Sales tax loan	11.420	11.564
Others debts	27.412	27.314
Interest accrued due other debts	3.256	3.188
Total	51.058	51.036

(Installments Due within One Year Rs. 13,03,661.00)

Banking Relations :	--
Auditors :
Name :	D. R. Barve and Company Chartered Accountants
Address :	46 1 / 1, Sadashiv Peth, Tilak Road, Pune – 411030, Maharashtra, India
Tel. No.:	91-20-24455414/3592
E-Mail :	drb@drbarveandco.in
PAN.:	ABGPB3910K

CAPITAL STRUCTURE

After 30.09.2011

Authorised Capital : Rs.212.500 Millions

Issued, Subscribed & Paid-up Capital : Rs.146.140 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
11000000	Equity Shares	Rs.10/- each	Rs.110.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10606990	Equity Shares	Rs.10/- each	Rs.106.070 Millions

Note:

(Out of above 1670247 no of shares were issued by conversion of cumulative convertible preference shares in the year 2009-10)

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		106.070	98.317	98.317
2] Share Application Money		0.000	5.594	0.000
3] Reserves & Surplus		11.344	11.344	41.921
4] (Accumulated Losses)		(8.170)	13.606	0.000
NETWORTH		109.244	128.861	140.238
LOAN FUNDS
1] Secured Loans		58.607	74.267	101.915
2] Unsecured Loans		51.058	51.036	51.969
TOTAL BORROWING		109.665	125.303	153.884
DEFERRED TAX LIABILITIES		30.236	40.314	47.296
TOTAL		249.145	294.478	341.418
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		241.982	270.784	295.745
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.030	0.031	0.031
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	21.186	27.326	35.546
	Sundry Debtors	60.975	65.601	60.101
	Cash & Bank Balances	2.643	2.960	(0.346)
	Other Current Assets	1.966	5.530	0.000
	Loans & Advances	18.936	7.303	13.233
Total Current Assets		105.706	108.720	108.534
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	75.730	60.611	48.559
	Other Current Liabilities	22.843	24.433	14.115
	Provisions	0.000	0.013	0.218
Total Current Liabilities		98.573	85.057	62.892
Net Current Assets		7.133	23.663	45.643
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		249.145	294.478	341.418

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
		TURNOVER	440.473	435.048	509.799
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		NA	116.531	40.595
Less	FINANCIAL EXPENSES		NA	15.065	17.045
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(6.994)	1.466	23.550
Less/ Add	DEPRECIATION/ AMORTISATION		24.820	25.572	24.694
	PROFIT/ (LOSS) BEFORE TAX		(31.814)	(24.106)	(1.144)
Less	TAX		(10.051)	(6.982)	(6.392)
	PROFIT/ (LOSS) AFTER TAX		(21.763)	(17.124)	5.248
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	30.577	24.856
Less	APPROPRIATIONS		NA	0.152	(0.473)
	BALANCE CARRIED TO THE B/S		NA	13.605	30.577
	Earnings/ (Loss) Per Share (Rs.)		(2.05)	(1.74)	0.64

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	(7.22)	(5.54)	(0.22)
Return on Total Assets (PBT/Total Assets}	(%)	(9.15)	(6.35)	(0.28)
Return on Investment (ROI) (PBT/Networth)		(0.29)	(0.19)	(0.01)
Debt Equity Ratio (Total Liability/Networth)		1.91	1.63	1.54
Current Ratio (Current Asset/Current Liability)		1.07	1.28	1.73

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	0.000	0.000	0.000
Creditors due to others	75.730	60.611	48.559
Total	75.730	60.611	48.559

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter’s background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	No
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	No
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
19) Payments terms	Yes
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	No
24) Banking facility details	No
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

OPERATIONS

During the year 2010-11, the Company achieved a turnover of 16111MTs [valued at Rs.440.473 Millions] as against 18121MTs [valued at Rs.435.048 Millions] in the previous year. Amidst the adverse market and the steady decline in demand, the Company on account of its quality product fetched Rs.0.003 Million per ton more than its previous year’s average price for newsprint. However, owing to the increased cost of production, especially a steep hike in waste paper and fuel prices, the cash generations for the year 2010-11 were adversely affected. Apart from this the worldwide shortage of fibre kept waste paper price continuously on a rise and therefore occasionally the machines had to be shut due to shortage of fibre. This resulted in scaling down of production by about 2000 MTS over its previous year. The Indian Newsprint market in general was also affected owing to cheap imports dumped from Russia and Korea owing to anti-dumping duty not prevalent in the country. The immediate cost increase on the raw material and fuel price could not be recouped from the customers in the Indian market on account of availability of finished imported paper at competitive landed prices. For the financial year 2010-11, after provision for Depreciation of Rs.24.820 Millions there is a net loss of Rs31.814 Millions (includes an extra ordinary items-profit on sale of asset Rs.13.371 Millions and net value on leased assets written off Rs.0.539 Millions) against the net loss of Rs.24.106 Millions (after Depreciation of Rs.25.572 Millions) in the previous year 2009-10.

CURRENT PROSPECTS AND FUTURE PLANS:

The targeted level of production at the enhanced capacities is achievable subject to continuous availability of waste paper and fuel at reasonable prices. With the availability of uninterrupted power from the industrial feeder line from Satara Division now in place, the prospects of the Company in terms of estimated production/turnover are achievable.

Contingent Liabilities not provided for (As on 31.03.2011)

(A) Bombay Port Trust – Rs.5.642 Millions

(B) Excise duty (Service Tax claim) – Rs.1.671 Millions

(C) Sales Tax Tribunal – Rs.1.234 Millions

FIXED ASSETS

· Land

· Building

· Electrical Installations

· Plant and Machinery

· Furniture/ Office Equipments

· Vehicles

· Co-Generation System

· Leased out Assets

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.49.65
UK Pound	1	Rs.77.80
Euro	1	Rs.65.05

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.