MIRA INFORM REPORT

Report Date :

13.06.2013

IDENTIFICATION DETAILS

Name :	G V G PAPER MILLS PRIVATE LIMITED (w.e.f. 17.09.2001)
Formerly Known As :	G V G PAPER MILLS LIMITED (w.e.f. 01.07.1994) G V G PAPER MILLS PRIVATE LIMITED
Registered Office :	168/2, Sikhanda Batcha Street, Gandhi Nagar, Udumalpet – 642154, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	25.01.1985
Com. Reg. No.:	18-006888
Capital Investment / Paid-up Capital :	Rs. 30.000 Millions
CIN No.: [Company Identification No.]	U02101TZ1985PTC006888
PAN No.: [Permanent Account No.]	AABCG1438N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of Printing, Writing, Newsprint and Machine-Glazed and Machine-Finished Kraft Paper.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 2140000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having a satisfactory track record. Financially company seems to be strong. Performance capability is high. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual trade terms and condition.

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	BBB+ = Long Term Rating
Rating Explanation	Having moderate degree of safety regarding timely securing in financial obligation it carry moderate credit risk.
Date	April 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 / Corporate Office:	168/2, Sikhanda Batcha Street, Gandhi Nagar, Udumalpet – 642154, Tamilnadu, India
Tel. No.:	91-4252-224113/224513/224943
Fax No.:	91-4252-225425
E-Mail :	gvgpltd@gmail.com gvgmudt@dataone.in
Head Office :	140, Mannarsamy Koil Street, Rayapuram, Chennai – 600013, Tamilnadu, India
Tel. No.:	91-44-25950906
Fax No.:	91-44-25961211
Factory :	Mallur, Pushpathur Village, Taluk Palani, District Dindigul, Tamilnadu, India
Tel. No.:	91-4252-252535/252536/252327
Fax No.:	91-4252-252245

DIRECTORS

As on 26.09.2012

Name :

Mr. Amarnath Muthuswamy

Designation :

Managing Director

Address :

133-3, Venkatesha Mills, Post Udumalpet, Coibatore – 642128, Tamilnadu, India

Date of Birth/Age :

10.10.1949

Date of Appointment :

25.01.1985

DIN No.:

00088110

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	U17111TZ1980PTC006887	G V G INDUSTRIES PRIVATE LIMITED	Director	11/09/1980	11/09/1980	-	Active	NO
2	U02101TZ1985PTC006888	G V G PAPER MILLS PRIVATE LIMITED	Managing director	25/01/1985	25/01/1985	-	Active	NO
3	U17111TZ1955PTC000012	ANNAMALAIAR MILLS PRIVATE LIMITED	Director	30/05/1990	30/05/1990	-	Active	NO
4	U17119TZ1990PTC002779	SVA SYNTEX PRIVATE LIMITED	Managing director	28/06/1990	28/06/1990	-	Active	NO
5	U17121TZ1991PTC003461	GVG PROCESSORS PRIVATE LIMITED	Director	07/10/1991	07/10/1991	-	Active	NO
6	U21012TZ1981PTC001118	SHRI HARI KRISHNA PAPERS PRIVATE LIMITED	Director	20/02/1995	20/02/1995	-	Active	NO

Name :

Mr. Veluswamy Muthuswamy

Designation :

Director

Address :

133-A, Venkatesha Mills, Post Udumalpet, Coibatore – 642128, Tamilnadu, India

Date of Birth/Age :

09.12.1947

Date of Appointment :

25.01.1985

DIN No.:

00088142

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	U17111TZ1980PTC006887	G V G INDUSTRIES PRIVATE LIMITED	Director	11/09/1980	11/09/1980	-	Active	NO
2	U02101TZ1985PTC006888	G V G PAPER MILLS PRIVATE LIMITED	Director	25/01/1985	25/01/1985	-	Active	NO
3	U17111TZ1955PTC000012	ANNAMALAIAR MILLS PRIVATE LIMITED	Director	03/08/1989	03/08/1989	-	Active	NO
4	U17115TZ1990PTC002695	SREE VISHNULAKSHMI TEXTILES PRIVATE LIMITED	Director	02/05/1990	02/05/1990	07/03/2011	Active	NO
5	U17119TZ1990PTC002779	SVA SYNTEX PRIVATE LIMITED	Director	28/06/1990	28/06/1990	-	Active	NO
6	U17121TZ1991PTC003461	GVG PROCESSORS PRIVATE LIMITED	Director	07/10/1991	07/10/1991	-	Active	NO
7	U17111TZ1989PTC002343	S V P B SPINNERS PRIVATE LIMITED	Director	06/10/1993	06/10/1993	-	Active	NO
8	U21012TZ1981PTC001118	SHRI HARI KRISHNA PAPERS PRIVATE LIMITED	Director	20/02/1995	20/02/1995	-	Active	NO
9	U17111TZ1989PTC002416	ANNAMALAIAR SPINNERS PRIVATE LIMITED	Director	19/08/2004	19/08/2004	-	Active	NO

Name :

Mrs. Padma Amamath

Designation :

Director

Address :

133-3, Venkatesha Mills, Post Udumalpet, Coibatore – 642128, Tamilnadu, India

Date of Birth/Age :

09.07.1958

Date of Appointment :

28.09.1998

DIN No.:

00088176

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	U17111TZ1989PTC002343	S V P B SPINNERS PRIVATE LIMITED	Director	14/04/1989	14/04/1989	-	Active	NO
2	U17119TZ1990PTC002779	SVA SYNTEX PRIVATE LIMITED	Director	31/12/1993	31/12/1993	-	Active	NO
3	U02101TZ1985PTC006888	G V G PAPER MILLS PRIVATE LIMITED	Director	28/09/1998	28/09/1998	-	Active	NO

Name :

Mr. Vivek Veluswamy

Designation :

Director

Address :

133-A, SV Mills, Post Palani Road, Udumalpet, Coibatore – 642128, Tamilnadu, India

Date of Birth/Age :

21.05.1983

Date of Appointment :

30.08.2006

DIN No.:

00800236

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	U21012TZ1981PTC001118	SHRI HARI KRISHNA PAPERS PRIVATE LIMITED	Director	01/06/2006	01/06/2006	-	Active	NO
2	U02101TZ1985PTC006888	G V G PAPER MILLS PRIVATE LIMITED	Director	30/08/2006	30/08/2006	-	Active	NO
3	U17111TZ1989PTC002343	S V P B SPINNERS PRIVATE LIMITED	Director	23/08/2007	23/08/2007	-	Active	NO

Name :

Mr. Anish Amarnath

Designation :

Additional Director

Address :

133-3, Venkatesha Mills, Post Udumalpet, Coibatore – 642128, Tamilnadu, India

Date of Birth/Age :

03.12.1987

Date of Appointment :

19.01.2011

DIN No.:

03403506

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	U02101TZ1985PTC006888	G V G PAPER MILLS PRIVATE LIMITED	Additional director	19/01/2011	19/01/2011	-	Active	NO
2	U21012TZ1981PTC001118	SHRI HARI KRISHNA PAPERS PRIVATE LIMITED	Director	19/01/2011	19/01/2011	-	Active	NO
3	U17119TZ1990PTC002779	SVA SYNTEX PRIVATE LIMITED	Director	26/09/2012	26/09/2012	-	Active	NO

MAJOR SHAREHOLDERS

As on 26.09.2012

SHARE HOLDING DETAILS FILE ATTACHED.

Equity Share Break up (Percentage of Total Equity)

As on 26.09.2012

Category	Percentage
Directors or relatives of Directors	99.40
Other top fifty shareholders	0.60
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Printing, Writing, Newsprint and Machine-Glazed and Machine-Finished Kraft Paper.

Products :

Product Description	ITC Code
Paper	4802

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• The Lakshmi Vilas Bank Limited, Tamilnadu, India
• The Karur Vysya Bank Limited, 2/3 Kalpana Road, Udamalpet, Coimbatore – 642126, Tamilnadu, India

Facilities :

Secured Loans :	As on 31.03.2012 Rs. in Millions	As on 31.03.2011 Rs. in Millions
LONG TERM BORROWING
Rupee term Loan from Bank	0.000	3.500
Loan taken for fixed assets	0.000	1.018
Total	0.000	4.518

Secured Loans :	As on 31.03.2012 Rs. in Millions	As on 31.03.2011 Rs. in Millions
SHORT TERM BORROWING
Working Capital Loans from Bank	24.494	21.063
Loan repayable on demand from Bank	9.739	0.000
Total	34.233	21.063

Banking Relations :	--
Auditors :
Name :	H Natrajan and Company Chartered Accountants
Address :	576 Edayar Street, Coimbatore – 641001, India
PAN No.:	ABEPN1263F
Associates:	Shri Hari Krishna Papers (Private) Limited, India CIN No. : U21012TZ1981PTC001118
Related Parties :	GVG Investments Private Limited, India SVA Syntex Private Limited, India Annamalaiar Spinners Private Limited, India

CAPITAL STRUCTURE

As on 26.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs. 30.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	30.000	20.000
(b) Reserves & Surplus	502.055	438.643
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
(3) Deferred Government Grants	2.944	0.155
(3) Non-current liabilities
(a) long-term borrowings	3.750	8.268
(b) Deferred tax liabilities (Net)	66.753	68.840
(c) Other long term liabilities	3.400	3.128
(d) long-term provisions	0.000	1.424
(4) Current liabilities
(a) Short term borrowings	34.233	21.063
(b) Trade payables	102.993	81.999
(c) Other current liabilities	38.775	31.773
(d) Short-term provisions	6.082	5.778
TOTAL	790.985	681.071
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	304.569	323.037
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	66.974	0.672
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	2.350	2.350
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	10.992	10.174
(e) Other Non-current assets	0.000	0.000
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	188.672	102.561
(c) Trade receivables	47.428	75.367
(d) Cash and cash equivalents	68.648	119.118
(e) Short-term loans and advances	88.687	33.880
(f) Other current assets	12.665	13.912
TOTAL	790.985	681.071

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		15.000
2] Share Application Money		0.000
3] Reserves & Surplus		391.466
4] (Accumulated Losses)		0.000
5] Deferred Government Grants		0.208
NETWORTH		406.674
LOAN FUNDS
1] Secured Loans		46.238
2] Unsecured Loans		25.869
TOTAL BORROWING		72.107
DEFERRED TAX LIABILITIES		63.034
TOTAL		541.815
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		298.518
Capital work-in-progress		0.610
INVESTMENT		3.110
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	98.772
	Sundry Debtors	94.652
	Cash & Bank Balances	75.775
	Other Current Assets	5.823
	Loans & Advances	66.294
Total Current Assets		341.316
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	88.354
	Other Current Liabilities	0.608
	Provisions	12.777
Total Current Liabilities		101.739
Net Current Assets		239.577
MISCELLANEOUS EXPENSES		0.000
TOTAL		541.815

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	INCOME		NA	NA	NA
Less	EXPENSES		NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		129.895	116.813	130.303
Less	FINANCIAL EXPENSES		19.207	19.196	14.907
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		110.688	97.617	115.396
Less/ Add	DEPRECIATION/ AMORTISATION		26.209	24.334	24.315
	PROFIT BEFORE TAX		84.479	73.283	91.081
Less	TAX		15.210	20.524	23.004
	PROFIT AFTER TAX		69.269	52.759	68.077
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		62.165	39.988	30.657
	APPROPRIATIONS
		Proposed Dividend	5.041	4.747	7.500
		Proposed Corporate Dividend Tax	0.818	0.788	1.246
		Transfer to General Reserve	25.000	25.000	50.000
	BALANCE CARRIED TO THE B/S		100.575	62.212	39.988
	EARNINGS IN FOREIGN CURRENCY		111.954	NA	136.954
	IMPORTS
		Raw Materials	NA	NA	4.338
		Stores & Spares	NA	NA	10.826
		Capital Goods	NA	NA	120.609
	TOTAL IMPORTS		NA	NA	135.773
	Earnings Per Share (Rs.)		23.09	NA	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	NA
Net Profit Margin (PBT/Sales)	(%)	NA	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	11.71	10.81	14.24
Return on Investment (ROI) (PBT/Networth)		0.16	0.16	0.22
Debt Equity Ratio (Total Debt /Networth)		0.45	0.40	0.79
Current Ratio (Current Asset/Current Liability)		2.23	2.45	3.35

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	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 BORROWING
Loans and advances from others	3.750	3.750
Total	3.750	3.750

FIXED ASSETS:

• Land
• Building
• Plant and Equipment
• Factory Equipment
• Other Plant and Equipment
• Vehicles

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. 58.27
UK Pound	1	Rs. 91.15
Euro	1	Rs. 77.50

INFORMATION DETAILS

Report Prepared by :

VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	5
--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		48

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.