MIRA INFORM REPORT

Report Date :

13.09.2012

IDENTIFICATION DETAILS

Name :	ELOF HANSSON (INDIA) PRIVATE LIMITED
Registered Office :	5F, Court Chambers, 35 New Marine Lines, Mumbai-400020, Maharashtra
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	05.04.1977
Com. Reg. No.:	11-19593
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U29100MH1977PTC019593
TAN No.: [Tax Deduction & Collection Account No.]	CHEE03394G
PAN No.: [Permanent Account No.]	AAACE2664H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Chemicals and Indenting Agent for Pulp Paper, Chemicals Machinery Components of Instruments Required by Paper Mills.
No. of Employees :	33 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (52)

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

Maximum Credit Limit :	USD 987952
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be regular 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.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Mahesh Joshi
Designation :	Finance Manager
Contact No.:	91-44-24315110
Date :	12.09.2012

LOCATIONS

Registered Office :	5F, Court Chambers, 35 New Marine Lines, Mumbai-400020, Maharashtra, India
Tel. No.:	91-22-22002588
Fax No.:	91-22-22062466
E-Mail :	Mahesh.joshi@in.elofnansson.com
Location:	Owned
Corporate Office :	New No. 149, Chamioers Road, R.A, Puram, Chennai-600028, Tamilnadu, India
Tel. No.:	91-44-24315110
Fax No.:	91-44-24315116
E-Mail :	office.chennai@in-elofhansson.com
Branches :	Located At: · Delhi · Hyderabad · Kolkatta

DIRECTORS

AS ON 11.06.2012

Name :	Mr. Hemraj Chaturbhu Asher
Designation :	Director
Address :	# 32, Modi Street, Mumbai-400001, Maharashtra, India
Date of Birth/Age :	02.01.1934
Date of Appointment :	05.04.1977
Din No.:	00024863
Name :	Mr. Thomas Gustaf Pettersson
Designation :	Director
Address :	Elof Hansson AB, SE 41380, Goteborg, Sweden
Date of Birth/Age :	15.05.1953
Date of Appointment :	06.12.1993
Din No.:	00422091
Name :	Mr. Prashant Khatau Asher
Designation :	Director
Address :	# 32, Modi Street, Mumbai-400001, Maharashtra, India
Date of Birth/Age :	17.12.1965
Date of Appointment :	21.09.1995
Din No.:	00274409
Name :	Mr. Peter Hentz
Designation :	Director
Address :	Elof Hansson AB, SE 41380, Goteborg, Sweden
Date of Birth/Age :	04.10.1945
Date of Appointment :	12.04.2005
Din No.:	00421956
Name :	Mr. Sandberg Robert Jan
Designation :	Director
Address :	Fagottvagen, 8, Kungsbacka, Sweden 434, Sweden
Date of Birth/Age :	10.01.1957
Date of Appointment :	12.10.2011
Din No.:	05160041

KEY EXECUTIVES

Name :	Mr. Mahesh Joshi
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 11.06.2012

Names of Shareholders	No. of Shares
Elof Hansson Pulp Paper Limited, London	999
Elof Hansson AB, Sweden	1
Total	1000

AS ON 11.06.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Chemicals and Indenting Agent for Pulp Paper, Chemicals Machinery Components of Instruments Required by Paper Mills.

Products :

Product Description	Item Code
Organic Surface Active Agents	34029000

Exports :

Products :

Pulp Paper, Chemicals Machinery Components of Instruments Required by Paper Mills.

Countries :

· Bangladesh

· Middle East

· South East Asia

Imports :

Products :

Raw materials

Countries :

· United States of America

· Sweden

Terms :

Selling :

Cash, Credit

Purchasing :

Cash, Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity *	Actual Production
Chemicals	Kgs	300000	183302

Note: * As certified by the management on which the auditors have placed reliance as this is a technical matter. The company’s products are exempt form licensing requirements.

GENERAL INFORMATION

Customers:	· IIC Limited · Wholesalers · Retailers
Suppliers :	Advanced Fiber Technology, Finland
No. of Employees :	33 [Approximately]
Bankers :	· IDBI Bank, Marine Lines · Slandered Chartered Bank · Union Bank
Facilities:	Limit Credit – Rs.10.000 Millions

Banking Relations :	--
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	ASV N Ramana Tower, 52, Venkatnarayana Road, T. Nagar, Chennai-600017, Tamilnadu, India
Tel. No.:	91-44-66885000
Fax No.:	91-44-66885050
Holding Company:	Elof Hansson Pulp Paper Limited, London
Ultimate Holding Company:	Elof Hansson AB, Sweden
Fellow Subsidiaries:	Moberg and Company, Sweden Troedsson Paper, Sweden Torgun Corporation, United States of America Elof Hansson, New York Elof Hansson, Brazil Elof Hansson, Singapore

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
2000	Equity Shares	Rs.100/- each	Rs.0.200 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1000	Equity Shares	Rs.100/- each	Rs.0.100 Million

NOTE:

a) Of the above 600 equity shares of Rs. 100 each were allotted as fully paid up bonus shares by way of capitalization of balance in Profit and loss account.

b) 999 shares of Rs.100 each are held by Elof Hansson Pulp & Paper Ltd, London, the Holding Company and 1 share of Rs.100 each is held by Elof Hansson AB, Sweden, the Ultimate Holding Company.

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2012
Sales Turnover (Approximately)	200.000

Expected Sales (2012-2013) : Rs.200.000 Millions

The above information has been parted by Mr. Mahesh joshi (Finance Manager)

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		0.100	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		246.888	237.723	215.157
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		246.988	237.823	215.257
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		246.988	237.823	215.257
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.538	7.263	7.741
Capital work-in-progress		0.432	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		2.456	2.671	1.481
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.724	11.803	3.230
	Sundry Debtors	197.568	27.567	23.623
	Cash & Bank Balances	25.595	181.497	173.910
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	26.503	24.760	21.808
Total Current Assets		256.390	245.627	222.571
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5.896	2.426	14.688
	Other Current Liabilities	10.128	13.879	0.592
	Provisions	1.804	1.433	1.256
Total Current Liabilities		17.828	17.738	16.536
Net Current Assets		238.562	227.889	206.035
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		246.988	237.823	215.257

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
		Gross Income	139.731	152.200	154.290
Less	EXPENSES
		Office Expenses
		Administrative Expenses	125.351	118.330	117.620
		Advertising Expenses
		TOTAL	125.351	118.330	117.620
	PROFIT BEFORE TAX		14.380	33.870	36.670
Less	TAX		5.215	12.500	12.600
	PROFIT AFTER TAX		9.165	21.370	24.070
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2.594	9.649	6.708
		Commission Earnings	26.575	33.950	34.000
	TOTAL EARNINGS		29.169	43.599	40.708
	IMPORTS
		Traded Goods	47.411	29.669	20.347
		Raw Material	0.617	0.000	0.000
	TOTAL IMPORTS		48.028	29.669	20.347
	Earnings Per Share (Rs.)		9165	21370	24326

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	6.56	14.04	15.60
Return on Total Assets (PBT/Total Assets}	(%)	5.49	13.39	15.92
Return on Investment (ROI) (PBT/Networth)		0.06	0.14	0.17
Debt Equity Ratio (Total Liability/Networth)		0.07	0.07	0.08
Current Ratio (Current Asset/Current Liability)		14.38	13.85	13.46

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors
Total outstanding dues to others	5.896	2.426	14.688

Sr. No.	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	Yes
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	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	No
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FINANCIAL RESULTS :

The Directors are pleased to report that the Company's performance for the year ended 31^st December 2011 was satisfactory. The Gross Income for the year was lower at Rs. 139.730 millions compared to Rs. 152.200 millions for the previous year. The profit before tax during the year was Rs. 143.790 millions as against Rs.33.870 millions for the previous year. The provision for taxation for the year was Rs.5.000 millions as against Rs. 12.500 millions for the previous year.

OPERATIONS:

The Directors report that the Company continued to maintain the contribution from the sale of water treatment chemicals from the blending unit in Chennai. The Division's earnings from projects and commission income as well as engineering services registered negative growth.

The Company's order backlog position for chemicals and machinery equipment divisions business is satisfactory.

The Company's Pulp, Paper and Secondary Fibre business was also satisfactory.

CONTINGENT LIABILITY:

Particulars	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Claims against the company not acknowledged as debt	4.395	7.113

(Claims by third parties)

The above amounts are based on demands / claims raised which the company is contesting with the concerned authorities. Outflows if any arising out of these claims would depend on the outcome of the decision and the company's right for future appeals. No reimbursements are expected.

FIXED ASSETS:

• Plant and Machinery
• Furniture and Fixtures
• Office Equipments
• Vehicles
• Computers
• Leasehold Improvements

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.55.26
UK Pound	1	Rs.88.85
Euro	1	Rs.71.13

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
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	NO
--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		52

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.