MIRA INFORM REPORT

Report Date :

20.04.2013

IDENTIFICATION DETAILS

Name :	DEVKIRAN PAPER MILLS PRIVATE LIMITED
Registered Office :	"Sri Maruthi Nilaya" Hunsur Road, Mysore – 571602, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.04.1985
Com. Reg. No.:	08-006879
Capital Investment / Paid-up Capital :	Rs. 5.941 Millions
CIN No.: [Company Identification No.]	U02520KA1985PTC006879
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Deluxe Kraft and Absorbent Kraft Paper.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 171000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The management of the company has failed to file its financial with the government department for the year 2012. As per previous year’s record, there appeared huge external borrowings recorded by the company. However, trade relations are reported as fair. Business is active. Payment terms are unknown. The company can be considered for business dealings with great caution.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating : B
Rating Explanation	High risk of default
Date	March 05, 2013

Rating Agency Name	CRISIL
Rating	Short term rating : A4
Rating Explanation	Minimal degree of safety and very high credit risk
Date	March 05, 2013

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ 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.

LOCATIONS

Registered Office :	"Sri Maruthi Nilaya" Hunsur Road, Mysore – 571602, Karnataka, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	devkiranpaper@rediffmail.com
Website :	www.devkiranpaper.com
Factory :	No 24, Gudimavu, Kumbalgodu Post, Bangalore – 560074, Karnataka, India
Tel. No.:	91-80-28437288/ 527
Fax No.:	91-80-28437288
E-Mail :	info@devkiranpaper.com
Sales Office :	No 919, 1st Floor, 2nd Cross, 5th Main, MC Layout, Vijaynagar, Bangalore – 560040, Karnataka, India
Tel. No.:	91-80-23108417
Fax No.:	91-80-23108417
E-Mail :	sales@devkiranpaper.com

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Bhaskara Setty Hanumantha Setty Raja
Designation :	Whole-time director
Address :	No. 66, 1st Floor, Widia Layout, 5^TH Cross, 2nd Main, Vijayanagar, Bangalore – 560040, Karnataka, India
Date of Birth/Age :	12.09.1959
Date of Appointment :	30.04.1985
DIN No.:	01194773
Name :	Mr. Sreenivasa Hanumanthaiah Setty
Designation :	Whole-time director
Address :	No. 190/ 5th Cross, Gkwlayout, Vijayanagar, Bangalore – 560040, Karnataka, India
Date of Birth/Age :	05.05.1949
Date of Appointment :	30.04.1985
DIN No.:	02440190
Name :	Mr. Ramanujasetty Hanumathasetty Raja
Designation :	Whole-time director
Address :	No.17/284, Sri Maruthi Nilaya Hunsur Road, K.R. Nagar, Karnataka, India
Date of Birth/Age :	15.05.1938
Date of Appointment :	30.04.1985
DIN No.:	02899460
Name :	Mr. Ramakrishnasetty Hanumanthasetty Raja
Designation :	Whole-time director
Address :	No 1143/65-A, Floor, 1^ST Floor, Sarvajanika Hostel, Back Side, 4th Main, 1st Cross, Vidyaranyapuram, Mysore - 570008, Karnataka, India
Date of Birth/Age :	24.08.1952
Date of Appointment :	30.04.1985
DIN No.:	02899519

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
R. H. Ramanuja Setty	5750
R. H. Bhaskar Setty	1666
R R Murali	250
R R Niranjan	125
R T Kiran	250
R S Prashanth	125
Usha Bhaskar	6249
Laxmi	3999
R H. Ramakrishna Setty	1000
Anantha Nagalakshmi Setty	6000
R.R Sunanda	6499
RS. Saraswathi	8827
Shubha	499
Seetha Laxmi	499
Ashwini. K	1000
G. Asha Nataraj	838
Nagesh B. L.	2500
A. R Rhadha	6666
N. Rama Setty	5833
R S Shruthi	833
Hariram Amarchand	1
Jayesh Kothari	1
Prakash Chand Kothari	1
Pawan Ahuja	1
Sangeetha Jadwani	1
Satram Amarchand	1
Total	59414

AS ON 27.11.2012

Names of Allottees	No. of Shares
R. H. Ramanuja Setty	34500
R. H. Bhaskar Setty	9996
R R Murali	1500
R R Niranjan	750
R T Kiran	1500
R S Prashanth	750
Usha Bhaskar	37500
Sree Laxmi	24000
R H. Ramakrishna Setty	6000
Anantha Nagalakshmi Setty	36000
R.R Sunanda	39000
R.S. Saraswathi	52884
Shubha	3000
Seetha Laxmi	3000
Ashwini. K	6000
G. Asha Nataraj	5028
Nagesh B. L.	15000
A. R Rhadha	39996
N. Rama Setty	34998
R S Shruthi	4998
Abhishek Totlari	6
Mahendra Kumar	6
B S Vijay	6
Deepa Giridhar	6
Kanchan Kukreja	6
Sindhu & Lakshmi	6
Ananth Padmanabha	6
T Venkatesh	6
Sree Chandana	6
Sunil Karla	6
B C Pradeep Kumar	6
V S, Prakash Kumar	6
Sanjay Kumar Ramchand	6
V P Sunil	6
Total	356484

AS ON 28.11.2012

Names of Allottees	No. of Shares
Sreenivasa Hanurnanthaiah Setty	50000
Bhaskara Setty Hanurnantha Setty Raja	12500
Total	62500

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.99
Other top fifty shareholders	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Deluxe Kraft and Absorbent Kraft Paper.

Products :

ITC Code	Product Descriptions
48030090	Kraft Paper

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production Kgs.
Kraft Paper	Tons PA	3000	2500	3792316

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Cash Credit etc with State Bank of India (Secured by Hypothecation of stock in trade & bills)	11.928	0.000
Term Loan- State Bank of India (Secured by Equitable Mortgage of Factory Land and Bldg, and Assets of the Company)	138.509	76.886
Total	150.437	76.886

Banking Relations :	--
Auditors :
Name :	B S Ravikumar and Associates Chartered Accountants
Address :	No. 73, 2nd Floor, Sri Madhvesha Complex, Malai Mahadeshwara Road, Nazarbad, Mysore – 570010, Karnataka, India
Tel. No.:	91-821-4288140/ 4288141
Fax No.:	91-821-2422125
E-Mail :	Bsr.assoc@gmail.com
Income-tax PAN of auditor or auditor's firm :	AADFB1008N
Entities over which key Management Personnel and their Relatives are able to exercise significant influence :	Ø Shreyas Incorporation Ø Associated Paper and Straw Boards

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
480,000	Equity Shares	Rs. 100/- each	Rs. 48.000 Millions
10,000	Preference Shares	Rs. 100/- each	Rs. 1.000 Million
	Total		Rs. 49.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
478,398	Equity Shares	Rs. 100/- each	Rs. 47.840 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
480,000	Equity Shares	Rs. 100/- each	Rs. 48.000 Millions
10,000	Preference Shares	Rs. 100/- each	Rs. 1.000 Million
	Total		Rs. 49.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
59,414	Equity Shares	Rs. 100/- each	Rs. 5.941 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		5.941	3.000	3.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		36.910	19.374	6.970
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		42.851	22.374	9.970
LOAN FUNDS
1] Secured Loans		150.437	76.886	44.039
2] Unsecured Loans		20.876	13.552	13.455
TOTAL BORROWING		171.313	90.438	57.494
DEFERRED TAX LIABILITIES		0.180	0.286	0.382
TOTAL		214.344	113.098	67.846
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.702	6.068	53.776
Capital work-in-progress		203.824	92.539	0.000
INVESTMENT		0.004	0.004	0.002
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	3.512	1.865	3.469
	Sundry Debtors	9.934	10.549	11.939
	Cash & Bank Balances	0.484	1.145	0.688
	Other Current Assets	0.000	0.000	0.002
	Loans & Advances	10.549	17.898	5.740
Total Current Assets		24.479	31.457	21.838
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	18.079	12.359	7.425
	Other Current Liabilities	0.933	0.592	0.000
	Provisions	0.653	4.019	0.345
Total Current Liabilities		19.665	16.970	7.770
Net Current Assets		4.814	14.487	14.068
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		214.344	113.098	67.846

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Turnover			65.700
		Other Income			N.A.
		TOTAL	84.878	77.976	N.A.
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	81.704	60.282	N.A.
	PROFIT BEFORE TAX		3.174	17.694	3.355
Less	TAX		0.345	3.931	N.A.
	PROFIT AFTER TAX		2.829	13.763	N.A.
	Earnings Per Share (Rs.)		140.68	683.13	150.43

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.33	17.65	N.A.
Return on Total Assets (PBT/Total Assets}	(%)	10.52	47.15	4.44
Return on Investment (ROI) (PBT/Networth)		0.07	0.79	0.34
Debt Equity Ratio (Total Debt/Networth)		4.00	4.04	5.77
Current Ratio (Current Asset/Current Liability)		1.24	1.85	2.81

LOCAL AGENCY FURTHER INFORMATION

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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
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	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
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	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Share holders and Directors	20.470	12.765
Keyman Insurance Loan	0.292	0.292
ABN Amro Bank	0.114	0.495
Total	20.876	13.552

FINANCIAL RESULTS:

During the year, the company has achieved a turnover of Rs. 81.500 Millions (Previous year Rs. 59.600 Millions). During the year the company has earned a profit of Rs. 3.174 Millions (Previous year Rs. 17.692 Millions).

The company is expected to do better in the ensuing year. The directors do not propose for any dividend payment.

FIXED ASSETS:

Ø Land

Ø Buildings

Ø Plant and Machinery

Ø Pollution Control Equipment

Ø Vehicles

Ø Electrical Equipment

Ø Furniture and Fixture

Ø Computer

Ø Pager, Fax and Stabilizer

Ø Telephone Instrument

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 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. 54.03
UK Pound	1	Rs. 82.43
Euro	1	Rs. 70.49

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		32

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.