MIRA INFORM REPORT

Report Date :

24.05.2013

IDENTIFICATION DETAILS

Name :	AAJ KA ANAND PAPERS LIMITED
Registered Office :	365/ 6, Shivaji Nagar, Aaj Ka Anand Building, Pune – 411005, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	14.12.1993
Com. Reg. No.:	11-034813
Capital Investment / Paid-up Capital :	Rs. 84.000 Millions
CIN No.: [Company Identification No.]	U22110MH1993PLC034813
PAN No.: [Permanent Account No.]	AABCA5435D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Publisher and Distributor of Newspaper and Magazine.
No. of Employees :	Information declined by the management

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 3260000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Financially company seems to be performing well. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal 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.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long term Bank facilities : (CARE) BBB-
Rating Explanation	Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk.
Date	February 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.

INFORMATION DECLINED BY

Name :	Mr. Anand Shyam Agarwal
Designation :	Director
Contact No.:	91-9822024795
Date :	23.05.2013

LOCATIONS

Registered/ Corporate Office :	365/ 6, Shivaji Nagar, Aaj Ka Anand Building, Pune – 411 005, Maharashtra, India
Tel. No.:	91-20-25534888/ 25538835
Mobile No.:	91-9822024795 (Mr. Anand S. Agarwal)
Fax No.:	91-20-25533224
E-Mail :	aajkaanand@yahoo.com info@aajkaanandpapers.com
Website :	www.aajkaanandpapers.com
Area :	40000 sq mtr
Location :	Owned
Bureau Office :	Located at: Ø Mumbai Ø Nashik Ø Indore Ø New Delhi Ø Ahmedabad Ø Lucknow

DIRECTORS

AS ON 29.06.2012

Name :	Mr. Anand Shyam Agarwal
Designation :	Director
Address :	365, Shivaji Nagar, Aaj Ka Anand Building, Pune – 411005, Maharashtra, India
Date of Birth/Age :	11.12.1971
Qualification :	Arts Graduate
Date of Appointment :	14.12.1993
PAN No.:	AATPA8343H
DIN No.:	00028902
Name :	Mr. Shyam Gyanichand Agarwal
Designation :	Director
Address :	365, Shivaji Nagar, Aaj Ka Anand Building, Pune – 411005, Maharashtra, India
Date of Birth/Age :	10.10.1945
Qualification :	Inter Science
Date of Appointment :	14.12.1993
PAN No.:	AATPA8345B
DIN No.:	00029085
Name :	Mr. Navin Shyam Agarwal
Designation :	Director
Address :	365, Shivaji Nagar, Aaj Ka Anand Building, Pune – 411005, Maharashtra, India
Date of Birth/Age :	22.10.1979
Qualification :	Commerce Graduate
Date of Appointment :	15.10.1997
PAN No.:	AATPA8344A
DIN No.:	00029060
Name :	Mrs. Ritu Anand Agarwal
Designation :	Director
Address :	365, Shivaji Nagar, Aaj Ka Anand Building, Pune – 411005, Maharashtra, India
Date of Birth/Age :	16.11.1975
Qualification :	Commerce Graduate
Date of Appointment :	15.10.1997
PAN No.:	ACWPA6853B
DIN No.:	01576537
Name :	Mrs. Vidya Shyam Agarwal
Designation :	Director
Address :	365, Shivaji Nagar, Aaj Ka Anand Building, Pune – 411005, Maharashtra, India
Date of Birth/Age :	29.05.1952
Qualification :	Pre Matriculation
Date of Appointment :	15.10.1997
PAN No.:	ABZPA4801F
DIN No.:	01576559

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.06.2012

Names of Shareholders	No. of Shares
Shyam G. Agarwal	219145
Anand Shyam Agarwal	187155
Navin Shyam Agarwal	149650
Ritu A. Agarwal	129300
Vidya Shaym Agarwal	152750
Rakesh Gupta	1000
Kiran Rakesh Gupta	1000
Total	840000

AS ON 10.09.2012

Names of Allottees	No. of Shares
Shyam G. Agarwal	11200
Vidya Shaym Agarwal	7000
Anand Shyam Agarwal	8800
Ritu A. Agarwal	6000
Navin Shyam Agarwal	7000
Total	40000

AS ON 29.06.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	99.76
Other top fifty shareholders	0.24
Total	100.00

BUSINESS DETAILS

Line of Business :

Publisher and Distributor of Newspaper and Magazine.

Products :

ITC Code	Product Descriptions
99611512	Newspaper

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

Ø Bank of Baroda, Powai, Mumbai - 400076, Maharashtra, INDIA

Ø Axis Bank Limited, Corporate Banking Branch, 214/215, City Mall, Ganesh khind Road, Pune - 411007, Maharashtra, India

Ø Bank of Maharashtra

Ø State Bank of India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term loans from banks	195.168	35.964
Working capital loans from banks	622.203	473.416
Loans taken for vehicles	2.173	2.783
Total	819.544	512.163
Note: Secured by Hypothecation of the Plant and Machinery and other Fixed Assets of Printing press at Hinjewadi and Collaterally secured against mortgage of Land belonging to Promoters of the Company and equitable mortgage of Land and Building at Shivaji Nagar, Hypothecation of Equipments and receivables and personal guarantee of Directors and Equitable Mortgage of Land and Building of Shivaji Nagar, 2nd charge on entire Current Assets and personal guarantee of all the Directors

Banking Relations :	--
Auditors :
Name :	Abhay A Shastri and Associates Chartered Accountants
Address :	Flat No. 201, Lotus Residency, Kothrud, Pune, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAUFA9809P

CAPITAL STRUCTURE

AFTER 29.06.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs. 100/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
880,000	Equity Shares	Rs. 100/- each	Rs. 88.000 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs. 100/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
840,000	Equity Shares	Rs. 100/- each	Rs. 84.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		84.000	80.000	77.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		730.928	291.128	238.722
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		814.928	371.128	316.222
LOAN FUNDS
1] Secured Loans		819.544	512.163	425.250
2] Unsecured Loans		48.258	48.156	45.362
TOTAL BORROWING		867.802	560.319	470.612
DEFERRED TAX LIABILITIES		5.798	2.529	2.957
TOTAL		1688.528	933.976	789.791
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		782.182	237.746	200.809
Capital work-in-progress		0.000	0.000	38.768
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	223.540	126.225	105.672
	Sundry Debtors	648.850	564.003	471.970
	Cash & Bank Balances	8.964	4.244	0.717
	Other Current Assets	0.433	0.344	0.00
	Loans & Advances	89.388	43.416	5.389
Total Current Assets		971.175	738.232	583.748
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	10.685
	Other Current Liabilities	46.379	16.211	3.565
	Provisions	18.450	25.791	19.682
Total Current Liabilities		64.829	42.002	33.932
Net Current Assets		906.346	696.230	549.816
MISCELLANEOUS EXPENSES		0.000	0.000	0.398
TOTAL		1688.528	933.976	789.791

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from operations	1564.208	1212.192	910.650
		Other Income	0.000	0.000	0.000
		TOTAL (A)	1564.208	1212.192	910.650
Less	EXPENSES
		Cost of materials consumed	1271.122	988.379
		Purchases of stock-in-trade	4.335	3.293
		Employee benefit expense	22.250	17.440
		Other expenses	57.574	45.331
		TOTAL (B)	1355.281	1054.443	787.664
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		208.927	157.749	122.986
Less	FINANCIAL EXPENSES (D)		103.262	68.403	45.081
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		105.665	89.346	77.905
Less/ Add	DEPRECIATION/ AMORTISATION (F)		7.498	7.830	6.286
	PROFIT BEFORE TAX (E-F) (G)		98.167	81.516	71.619
Less	TAX (H)		26.269	25.593	24.669
	PROFIT AFTER TAX (G-H) (I)		71.898	55.943	46.950
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		146.675	99.769	61.889
	APPROPRIATIONS
		Transfer to General Reserve	0.000	7.750	7.750
		Dividend	0.000	1.287	1.320
	BALANCE CARRIED TO THE B/S		215.531	146.675	99.769
	Earnings Per Share (Rs.)		90.00	72.00	73.50

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	4.60	4.62	5.16
Net Profit Margin (PBT/Sales)	(%)	2.15	6.72	7.86
Return on Total Assets (PBT/Total Assets}	(%)	5.60	8.35	11.59
Return on Investment (ROI) (PBT/Networth)		0.12	0.22	0.23
Debt Equity Ratio (Total Debt/Networth)		1.06	1.51	1.49
Current Ratio (Current Asset/Current Liability)		14.98	17.58	17.20

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Sundry Creditors for Others	0.000	0.000	10.685

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	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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Loans and advances from related parties	48.258	48.156
Total	48.258	48.156

CORPORATE OVERVIEW:

Subject is a Leading Publishing House publishing Dailies in Regional Language since last 40 years. The company publishes Hindi Daily 'Aaj Ka Anand' and Marathi Daily 'Sandhyanand'. Aaj Ka Anand is the only Hindi Daily newspaper published from the whole of Western Maharashtra. The circulation of both the dailies is around 5 Lac Copies and its presence is in almost all cities in Maharashtra. The company has recently launched English Daily 'Life 365' to cater intellectual section of the society.

OPERATIONS:

Despite of rising cost of raw material and increase in cost of finance, the company was able to achieve total Income of Rs. 1564.200 Millions as compared to the previous years total Income of Rs. 1212.100 Millions. This growth of 29 % in revenue than the previous years was mainly attributed to the better management of fixed cost, product mix and operational efficiency.

The turnover of the company was significantly augmented by the resourceful functioning of the Company’s Hotel Project CITIOTEL. In its second year of operations, the Citiotel has successfully achieved an occupancy rate of 75%. This could be achieved only through persistent improvement in the performance of every aspect of hospitality and providing wide range of value added and unmatched services to its customers. The management is optimistic that the occupancy rate shall further rise to new level.

LIFE 365 a unique daily from Aaj Ka Anand Group was launched on the auspicious day of Akshay Tritiya on 24th April 2012. The company has ventured into the English segment of the daily newspaper with 16 page color daily aiming at promoting positive values in personal and public life. Initial response to new English daily is very encouraging.

FUTURE OUTLOOK

According to Indian Readership Survey news paper reach in India is just over 38 % of Indian population. Aided by improved percentage of literacy, infrastructure and average standard of living of people of India, print media industry is expected to grow in double digit. The growth of Regional Dailies in non-metro cities and towns is remarkable in F-Y 2011-12. This has been reflected by spurt in advertisement and circulation revenues of print media industry. It is expected in coming year growth in circulation and advertisement turnover in Tier 2 and Tier 3 cities will be growth engines for print media industry.

At Aaj Ka Anand we are ready to seize these opportunities. The company has already undertaken modernization of printing facilities. New production unit at Hinjewadi, Pune made operational with modernized printing facilities. Existing both the dailies i.e Aaj Ka Anand Sandhyanand made all pages color and increase number of pages. With the introduction of English Daily Life 365, the company has entered into the main stream business of print media industry with unique features, totally different from conventional newspaper, to cater all sections of society.

The company is making persistence efforts to improve occupancy rate in Citiotel it is expected to reach between 90% to 100% in F-Y 2013-14.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U22110MH1993PLC034813
Name of the company	AAJ KA ANAND PAPERS LIMITED
Address of the registered office or of the principal place of business in India of the company	365/ 6, Shivaji Nagar, Aaj Ka Anand Building, Pune – 411005, Maharashtra, India Email: aajkaanand@yahoo.com
This form is for	Modification of charge
Charge identification number of the modified	10066389
Type of charge	Immovable property
Particular of charge holder	Axis Bank Limited, Corporate Banking Branch, 214/215, City Mall, Ganesh khind Road, Pune - 411007, Maharashtra, India Email: Meena.Shankar@axisbank.com
Nature of description of the instrument creating or modifying the charge	Memorandum of Entry (Extension of Equitable Mortgage) dated 6th February 2013
Date of instrument Creating the charge	06.02.2013
Amount secured by the charge	Rs. 950.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Extent and Operation of the charge 1st Charge of Axis Bank Limited on mortgaged property to secure Term Loan of Rs. 50.000 Millions and Line of Credit of Rs.100.000 Millions 2nd Parri passu charge on mortgaged property to secure Facilities provided by Consortium Banks as: Axis Bank Limited Rs.220.000 Millions, State Bank of India Rs.430.000 Millions, Bank of Baroda Rs.150.000 Millions Charge shall continue till full repayment of Loan.
Short particulars of the property charged	All that piece and parcel of N.A. plot of land bearing Sub-Plot no. 14 out of Final Plot No. 713/14 i.e. CTS No. 364+365/14 at Shivajinagar, Taluka Haveli, Dist. Pune, within the Registration District, Pune, Sub-District, Taluka Haveli, within the jurisdiction of Sub-Registrar, Haveli no.10 and within the limits of Pune Municipal Corporation and as per property registered card adm. 521.00 sq. mtrs. together with building constructed thereon.
Particulars of the present modification	Mortgage on immovable property of Company situated at - N.A. plot of land bearing Sub-Plot no.14 out of Final Plot No.713/14 i.e. CTS No. 364+365/14 at Shivajinagar, Pune is extended to secure limits as mentioned below: 1st Charge of Axis Bank Limited on property to secure TL of Rs.50.000 Millions & Line of Credit of Rs.100.000 Millions 2nd Parri passu charge on property to secure Facilities provided by Consortium Banks as: Axis Bank Limited Rs.220.000 Millions, State Bank of India Rs.430.000 Millions, Bank of Baroda Rs.150.000 Millions

FIXED ASSETS:

Ø Land

Ø Buildings

Ø Office building

Ø Other building

Ø Plant and equipment

Ø Other plant and equipment

Ø Furniture and fixtures

Ø Vehicles

Ø Motor vehicles

Ø Office equipment

Ø Computer equipments

Ø Other equipments

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. 55.99
UK Pound	1	Rs. 84.19
Euro	1	Rs. 71.86

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--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.