MIRA INFORM REPORT

Report Date :

20.07.2013

IDENTIFICATION DETAILS

Name :	MERINO PANEL PRODUCTS LIMITED
Registered Office :	5, Alexander Court, 60/1, Chowringhee Road, Kolkata – 700 020, West Bengal
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	08.08.1994
Com. Reg. No.:	21-064386
Capital Investment / Paid-up Capital :	Rs. 20.000 Millions
CIN No.: [Company Identification No.]	U20299WB1994PLC064386
TAN No.: [Tax Deduction & Collection Account No.]	CALM02677D
PAN No.: [Permanent Account No.]	AABCM5672Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and selling of Decorative Laminates, Chemicals (primarily meant for captive consumption) and trading of Papers and Chemicals, Panel Boards and Plywood’s.
No. of Employees :	1000 (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 2180000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of “Merino Industries Limited”. It is a well established company having fine track record. Even though the company has seen a better growth in the sales turnover there appear a drastic dip in its net profitability during 2012. However, financial position of the company seems to be good. Trade relations are fair. Business is active. Payments terms are regular and as per commitments. In view of strong promoter experience and groups established market position, the subject can be considered normal for business dealings at usual trade 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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	Ling Term Rating = A-
Rating Explanation	Adequate degree of safety and low credit risk
Date	10.05.2012

Rating Agency Name	CRISIL
Rating	Short Term Rating = A2+
Rating Explanation	Strong degree of safety and low credit risk
Date	10.05.2012

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/ Head Office :	5, Alexander Court, 60/1, Chowringhee Road, Kolkata – 700 020, West Bengal, India
Tel. No.:	91-33-22479291 / 22470976 / 22472758 / 22477587/ 22901214 / 22872758
Fax No.:	91-33-22400314 / 22476103/ 22906103 / 91-1276-278337
Telex	021-2387 LNGX IN
E-Mail :	merinokol@merinoindia.com merinocal@vsnl.com merinorohad@merinoindia.com
Website :	http://www.merinoindia.com
Area :	Large
Location :	Owned
Marketing Office :	70, KLJ Complex, 2nd Floor, Moti Nagar, New Delhi-110015, India
Tel. No.:	91-11-45557000,25107617
Fax No.:	91-011-45557050
Factory 1 :	Village Achheja, PO-Hapur – 245101, District Ghaziabad, Uttar Pradesh, India
Tel. No.:	91-122-3082500,2308601
Fax No.:	91-122-2306998
Email :	merinohapur@merinoindia.com
Factory 2 :	44 KM. Stone, Delhi-Rohtak Road, Rohad, District Jhajjar – 124501, Haryana, India
Tel. No.:	91-1276-221000, 304900
Fax No.:	91-1276-221050
Email :	merinorohad@merinoindia.com
Factory 3 :	Bagalur Road, Kalahasthipuram Village, Hosur Taluk, Krishnagiri – 635103, Tamilnadu, India
Tel. No.:	91-4344-293545, 327765
Fax No.:	91-4344-245307
Email :	merinohosur@merinoindia.com
Overseas Office :	9600 NW, 25th Street, Doral, Florida – 33172
Tel No.:	305-456-1913
Email :	merinousa@merinoindia.com

DIRECTORS

As on 29.09.2012

Name :

Mr. Champalal Lohia

Designation :

Executive Vice Chairman

Address :

44/78, Punjabi Bagh, New Delhi-110026, India

Date of Birth/Age :

09.03.1934

Date of Appointment :

08.08.1994

DIN No.:

00154019

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51909WB1965PLC026556	MERINO INDUSTRIES LIMITED	Whole-time director	01/04/2012	15/01/1968	-	Active	NO
2	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Director	08/08/1994	08/08/1994	-	Active	NO

Name :

Mr. Rup Chand Lohia

Designation :

Director

Address :

Flat No. 4D, 4^th Floor, 3 Mayfair Road, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

16.01.1940

Date of Appointment :

08.08.1994

DIN No.:

00063290

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Director	08/08/1994	08/08/1994	-	Active	NO
2	U70101WB1988PTC044285	MERINO EXPORTS PRIVATE LIMITED	Director	01/04/1996	01/04/1996	-	Active	NO
3	U25200MH1955NPL009601	THE PLASTICS EXPORT PROMOTION COUNCIL	Director	18/10/1996	18/10/1996	-	Active	NO
4	U51909WB1965PLC026556	MERINO INDUSTRIES LIMITED	Whole-time director	01/01/2013	01/01/2002	-	Active	NO

Name :

Mr. Prakash Lohia

Designation :

Managing Director

Address :

Vrindavan Apartment, 4^th Floor, 55/ 1 Kabi Bharati Sarani, Kolkata - 700029, West Bengal, India

Date of Birth/Age :

10.07.1952

Date of Appointment :

08.08.1994

DIN No.:

00063274

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U51909WB1965PLC026556	MERINO INDUSTRIES LIMITED	Managing director	01/04/2012	14/07/1976	-	Active	NO
2	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Director	08/08/1994	08/08/1994	-	Active	NO
3	U51109WB1993PLC058257	MERINO SERVICES LIMITED	Director	27/09/2007	15/02/2007	-	Active	NO

Name :

Mr. Bikash Lohia

Designation :

Director

Address :

44/78, Punjabi Bagh, New Delhi-110026, India

Date of Birth/Age :

27.05.1970

Date of Appointment :

01.10.2006

DIN No.:

00154013

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Director	01/10/2006	01/12/1994	27/11/2012	Active	NO
2	U51909WB1965PLC026556	MERINO INDUSTRIES LIMITED	Whole-time director	01/10/2012	01/10/2006	-	Active	NO
3	U51109WB1993PLC058257	MERINO SERVICES LIMITED	Director	27/09/2007	15/02/2007	-	Active	NO

Name :

Mr. Deepak Champa Lal Lohia

Designation :

Whole Time Director

Address :

H. No. 44, Gali No. 78, Punjabi Bagh, New Delhi-110026, India

Date of Birth/Age :

26.04.1976

Qualification :

B.E. (Mechanical)

Experience :

12 Years

Date of Appointment :

01.04.2012

DIN No.:

00154027

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Whole-time director	01/04/2012	01/04/2000	-	Active	NO
2	U63022WB1993PTC058460	KASTURI BAI GOPI BABU COLD STORAGE PRIVATE LIMITED	Director	31/07/2008	01/10/2006	-	Active	NO
3	U51109WB1993PLC058257	MERINO SERVICES LIMITED	Director	27/09/2007	15/02/2007	-	Active	NO

Name :

Mr. Manoj Rupchand Lohia

Designation :

Whole-Time- Director

Address :

No. 247 80 Feet Road, Defence Colony, Indira Nagar, Bangalore-560038, Karnataka, India

Date of Birth/Age :

17.02.1972

Qualification :

B.Com

Experience :

13 Years

Date of Appointment :

01.04.2012

DIN No.:

00127775

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U70101WB1988PTC044285	MERINO EXPORTS PRIVATE LIMITED	Director	31/07/2008	01/04/2000	-	Active	NO
2	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Whole-time director	01/04/2012	01/06/2004	-	Active	NO

Name :

Mr. Asok Kumar Parui

Designation :

Director

Address :

4 Dr. A L Munshi Lane, P.O. Uttappara, Hooghly-712258, West Bengal, India

Date of Birth/Age :

27.12.1950

Date of Appointment :

01.10.1998

DIN No.:

00061267

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Director	01/10/1998	01/10/1998	-	Active	NO
2	U51109WB1993PLC058257	MERINO SERVICES LIMITED	Director	27/09/2007	15/02/2007	-	Active	NO

Name :

Mr. Anil Jajoo

Designation :

Director

Address :

44/2/27, Jheel Road, Block-A, Flat-5, 2^nd Floor, Kolkata-700075, West Bengal, India

Date of Birth/Age :

10.07.1968

Date of Appointment :

01.01.2004

DIN No.:

00063284

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U63022WB1993PTC058460	KASTURI BAI GOPI BABU COLD STORAGE PRIVATE LIMITED	Director	14/08/1997	14/08/1997	-	Active	NO
2	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Director	01/01/2004	01/01/2004	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Sumantra Singh
Designation :	Company Secretary
Address:	Flat No. 301, 3^rd Floor, 36, Balllygunge Place, Kolkata-700019, West Bengal, India
Date of Birth/ Age:	06.02.1968
Date of Appointment:	16.09.2005
Name :	Mr. Rajiv
Designation :	AGM Account Manager

MAJOR SHAREHOLDERS

As on 29.09.2012

Names of Shareholders	No. of Shares
Man Kumar Lohia	1000
Champalal Lohia	1000
Rupchand Lohia	1000
Prakash Lohia	1000
Prasan Lohia	1900
Bikash Lohia	2480
Manoj Lohia	1860
Merion Industries Limited, West Bengal, India	1493000
Merion Exports Private Limited, West Bengal, India	490000
Deepak Lohia	2300
Madhusudan Lohia	2760
Ruchira Lohia	1700
Total	2000000

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Bodies corporate	99.00
Directors or relatives of Directors	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and selling of Decorative Laminates, Chemicals (primarily meant for captive consumption) and trading of Papers and Chemicals, Panel Boards and Plywood’s.

Products :

Product Description	Item Code Number
Decorative Laminates	48-23-90-19
Plywood	44-12-31-90
Panal Products	44-11-74-29

Brand Names :

“MERINO”

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Decorative laminates	Pcs.	NA	5000000	3514763
Plywood	Sq. Mtrs	NA	810000	328634
Panel products	Pcs.	NA	374000	97638
Laminates scrap (under sized)	Kgs.	NA	NA	49020
Formaldehyde	M.T.	NA	9360	5719

GENERAL INFORMATION

No. of Employees :

1000 (Approximately)

Bankers :

· State Bank of India, Commercial Branch, First Floor, Vankarath Towers, Bye Pass Jn, Padivattom, Emakulam – 682024, Kerala, India

· Axis Bank Limited, Corporate Banking Branch, A.C. market, 3^rd Floor, 1 Shakespeare Sarani, Kolkata – 700071, West Bengal, India

· Indusind Bank Limited, Savitri Towers, 3A Upper Wood Street, Kolkata – 700017, West Bengal, India

Facilities :

Secured Loans	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Term loan from bank – Indian Rupee Loan	47.614	27.400
From Other – Indian Rupee Loan	0.917	1.652
Short Term Borrowings
Working Capital Loans
From Banks Overdraft / Cash credit	75.134	27.832
Working capital demand loan	8.000	0.000
Rupee packing credit loan	115.693	138.475
Foreign currency buyers credit loan	70.183	148.148
	317.541	343.507

Note:

Long Term Borrowings :

(a) Repayment terms and nature of securities given for Indian rupee term loans are as follows:

Bank	31.03.2012	31.03.2011	Nature of Securities	Repayment Terms
Axis Bank Limited *	7.400	27.400	Exclusive first charge on assets created out of the Term Loan. 2nd pari-passu charge on current assets of the Company with other Working capital bankers, both present and future.	Repayable in sixteen equal quarterly instalments commencing from 30.11.2009. Interest is Payable monthly @ Base Rate plus 3% p.a.
Axis Bank Limited *	40.214	0.000	Exclusive first charge on assets created out of the Term Loan. Equitable mortgage of industrial land and building, admeasuring 206.91 Kathas situated at Mouza Khalisani, P.O. Khalisani, Uluberia, District Howrah owned by M/s Merino Exports Private Limited.	Repayable in twenty equal Quarterly instalments Commencing after three months from the date of 1^stdisbursement. Interest is Payable monthly @ Base Rate plus 3% p.a.
Term loans are also covered by Personal Guarantee of some of the Promoter Directors of the Company.	47.614	27.400

(b) Car Loans are secured by way of hypothecation of the related assets, some of which are pending registration of charge. These are repayable in thirty six equal installments bearing interest rate varying from 9.26% p.a to 11.52% p.a.

Short Term Borrowings :

Working Capital Loans are secured by way of:

i. Primary Security : Hypothecation of all current assets of the Company, both present and future, on pari passu basis

ii. Collateral: Charge over all fixed assets of the Company both present and future. On pari-passu basis.

Working Capital Loans are also secured by personal guarantee of some of the Directors of the Company.

Banking Relations :	--
Auditors :
Name :	For Price Waterhouse Chartered Accountants
Address :	Plot No. Y14, Block – EP, Sector V Salt Lake Electronics Complex, Bidhan Nagar, Kolkata – 700091, West Bengal, India
PAN No.:	AAEFP3641G
Holding company :	Merino Industries Limited CIN No.: U51909WB1965PLC026556

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
2750000	Equity Shares	Rs. 10/- each	Rs. 27.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs. 10/- each	Rs. 20.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	20.000	20.000
(b) Reserves & Surplus	523.835	478.223
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	543.835	498.223
(3) Non-Current Liabilities
(a) long-term borrowings	48.531	39.955
(b) Deferred tax liabilities (Net)	29.038	32.093
(c) Other long term liabilities	0.052	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	77.621	72.048
(4) Current Liabilities
(a) Short term borrowings	333.510	314.455
(b) Trade payables	262.637	155.319
(c) Other current liabilities	76.447	71.737
(d) Short-term provisions	5.172	33.451
Total Current Liabilities (4)	677.766	574.962
TOTAL	1299.222	1145.233
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	371.718	365.687
(ii) Intangible Assets	2.764	1.150
(iii) Capital work-in-progress	88.044	20.125
(iv) Intangible assets under development	0.525	2.340
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	6.434	8.930
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	469.485	398.232
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	366.369	334.773
(c) Trade receivables	384.296	308.837
(d) Cash and cash equivalents	9.670	23.170
(e) Short-term loans and advances	69.068	76.394
(f) Other current assets	0.334	3.827
Total Current Assets	829.737	747.001
TOTAL	1299.222	1145.233

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		20.000
2] Share Application Money		0.000
3] Reserves & Surplus		392.765
4] (Accumulated Losses)		0.000
NETWORTH		412.765
LOAN FUNDS
1] Secured Loans		281.250
2] Unsecured Loans		48.601
TOTAL BORROWING		329.851
DEFERRED TAX LIABILITIES		28.141
TOTAL		770.757
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		289.447
Capital work-in-progress		16.009
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	278.159
	Sundry Debtors	251.082
	Cash & Bank Balances	4.557
	Other Current Assets	11.330
	Loans & Advances	136.861
Total Current Assets		681.989
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	183.530
	Other Current Liabilities
	Provisions	33.158
Total Current Liabilities		216.688
Net Current Assets		465.301
MISCELLANEOUS EXPENSES		0.000
TOTAL		770.757

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1909.960	1753.792	1312.351
		Other Income	8.536	31.496	23.227
		TOTAL (A)	1918.496	1785.288	1335.578
Less	EXPENSES
		Cost of Material consumed	1135.161	1024.051
		Purchases of stock-in-trade	198.777	141.884
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(5.698)	0.067
		Employee Benefit Expenses	126.369	115.120
		Other Expenses	297.814	267.321
		TOTAL (B)	1752.423	1548.443	1189.550
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		166.073	236.845	146.028
Less	FINANCIAL EXPENSES (D)		37.172	27.930	33.753
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		128.901	208.915	112.275
Less/ Add	DEPRECIATION/ AMORTISATION (F)		49.369	44.276	41.762
	PROFIT BEFORE TAX (E-F) (G)		79.532	164.639	70.513
Less	TAX (H)		21.717	54.775	27.075
	PROFIT AFTER TAX (G-H) (I)		57.815	109.864	43.438
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		422.780	348.308	250.950
Less	APPROPRIATIONS
		Interim Dividend	10.500	21.000	14.457
		Tax on Dividend	1.703	3.406	28.000
		General Reserve	5.782	10.986	4.758
	BALANCE CARRIED TO THE B/S		462.610	422.780	348.308
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	577.312	505.440	505.441
	TOTAL EARNINGS		577.312	505.440	505.441
	IMPORTS
		Raw Materials	965.598	739.840	514.714
		Capital Goods	10.646	47.037	0.466
		Components and spare parts	1.669	1.555	21.220
	TOTAL IMPORTS		977.913	788.432	536.400
	Earnings Per Share (Rs.)		28.91	54.93	72.29

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.01	6.15	3.25
Net Profit Margin (PBT/Sales)	(%)	4.16	9.39	5.37
Return on Total Assets (PBT/Total Assets}	(%)	9.51	21.78	7.26
Return on Investment (ROI) (PBT/Networth)		0.15	0.33	0.17
Debt Equity Ratio (Total Debt /Networth)		0.70	0.71	0.80
Current Ratio (Current Asset/Current Liability)		1.22	1.30	3.15

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	Yes
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	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	Yes

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
Long Term Borrowings
Sales tax loan	0.000	10.903
Short Term Borrowings
Demand Loan from Related Indian Rupee Loan	64.500	0.000
Total	64.500	10.903

OPERATIONS:

During the year, the company’s net sales increased by Rs. 156.168 Millions as compared to that of the previous year but the Profit before tax for the year decreased to Rs. 79.532 Millions as against Rs. 164.639 Millions in the previous year due to increase in expenditure by Rs. 218.315 Millions the impact of which could not be fully absorbed by the markets. The Directors are hopeful that improved results would be posted in the coming years.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U20299WB1994PLC064386
Name of the company	MERINO PANEL PRODUCTS LIMITED
Address of the registered office or of the principal place of business in India of the company	5, Alexander Court, 60/1, Chowringhee Road, Kolkata – 700 020, West Bengal, India Email ID : merinokol@merinoindia.com
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge Others (Stock, Plant and Machinery, Current Stock)
Particular of charge holder	Indusind Bank Limited, Savitri Towers, 3A Upper Wood Street, Kolkata – 700017, West Bengal, India
Nature of instrument creating charge	Deed of hypothecation
Date of instrument Creating the charge	04.03.2013
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 0.75% above IBL Base Rate. Rates are subject to change from time to time as per Bank's Policy. Terms of Repayment Term Loan to be repaid in 18 equal quarterly installments starting after 6 months from 1st disbursement. Margin 36.27% Extent and Operation of the charge The Bank shall have 1st pari passu charge on Movable property of the Company and 2nd Charge on all Current Assets of the Company with other lenders. The security of hypothecation created in favour of the Bank will be on continuing basis. Others The borrower shall keep the hypothecated goods in marketable and good condition and also take suitable insurance to protect the goods against the losses, damages, fire, flood, theft, burglary and such other risk as the Bank shall require from time to time.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Company hereby Hypothecates the followings: 1) All present and future Movable properties of the Company including Plant and Machinery, Furniture and Fittings, equipments, computers, spares and others, as 1st charge and ranking pari passu with other term lenders. 2) All present and future stock in trade consisting of Raw Materials, finished goods, goods in process of manufacturing and other merchandise whatsoever being movable properties now or at anytime hereafter belonging to the borrower and stored at any place. 3) All present and future Book debts, outstanding moneys receivable, claims and bills which are now due and owing or which may become due in future. - 2nd charge on entire current assets of the company ranking pari passu with other term lenders.

FIXED ASSETS:

• Land
• Building
• Plant and Equipments
• Furniture and Fixture
• Vehicle
• Office Equipment

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. 59.79
UK Pound	1	Rs. 91.03
Euro	1	Rs. 78.52

INFORMATION DETAILS

Report Prepared by :

VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.