MIRA INFORM REPORT

Report Date :

24.05.2013

IDENTIFICATION DETAILS

Name :	STAY-ON PAPERS PRIVATE LIMITED
Registered Office :	Plot No. 31 and 32, Apparel Export Park, Gundlapochampally, Medchal Mandal, Hyderabad – 500014, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	07.04.1984
Com. Reg. No.:	21-004615
Capital Investment / Paid-up Capital :	Rs. 4.430 Millions
CIN No.: [Company Identification No.]	U21012AP1984PTC004615
TAN No.: [Tax Deduction & Collection Account No.]	HYDS00184C
PAN No.: [Permanent Account No.]	AADCS4122M
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Hot Melt Pressure Sensitive, Label Stock and Self Adhesive Tapes in BOPP Tapes, Polyester Tapes, Cotton Tapes, Aluminium Foil Tapes, Release Coated Papers etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (43)

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

Maximum Credit Limit :	USD 70000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. 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.

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

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/ Factory 1 :	Plot No. 31 and 32, Apparel Export Park, Gundlapochampally, Medchal Mandal, Hyderabad – 500014, Andhra Pradesh, India
Tel No.:	91-40-23792220/ 23792221/ 27848345/ 27848333
Fax No.:	91-40-23792320
E-Mail :	stayon123@rediffmail.com stayon@netkracker.com stay-on123@rediffmail.com
Website :	http://www.stayonpapers.com
Corporate Office :	G–11, Minerva Complex, Sarojini Devi Road, Secunderabad – 500003 , Andhra Pradesh, India
Tel No.:	91-40-27848345/ 27848333
Fax No.:	91-40-27819933
Email:	info@stayonpapers.com stayon123@rediffmail.com
Factory 2 :	Shed No. 4-B, 10-B and 11-A, Type – 1, APIIC Industrial Estate, Kukatpally, Hyderabad – 500072, Andhra Pradesh, India
Tel. No.:	91-40-23078443/ 23078453/ 2307844
Fax No.:	91-40-23078463
E-Mail :	stayon123@rediffmail.com stayon@netkracker.com

DIRECTORS

AS ON 28.09.2012

Name :

Mr. Kishen Rao Ananth

Designation :

Managing Director

Address :

C 1, Vikrampuri Colony, Secunderabad – 500009, Andhra Pradesh, India

Date of Birth/Age :

16.05.1953

Date of Appointment :

07.04.1984

DIN No.:

01718621

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	Company/ LLP Status	Defaulting status
1	U21012AP1984PTC004615	STAY-ON PAPERS PRIVATE LIMITED	Managing director	07/04/1984	07/04/1984	Active	NO
2	U55100AP1991PTC012917	LINGAPUR HOTELS AND INVESTMENTS PRIVATE LIMITED	Managing director	08/07/1991	08/07/1991	Active	NO
3	U29142AP1968PTC001204	ELECTRICAL ACCESSORIES (HYDERABAD) PRIVATE LIMITED	Director	17/06/1992	17/06/1992	Active	NO
4	U92411AP1971NPL001403	HYDERABAD RACE CLUB	Director	29/09/2010	27/09/2000	Active	NO

Name :

Mr. Rahul Rao

Designation :

Director

Address :

C 1, Vikrampuri Colony, Secunderabad – 500009, Andhra Pradesh, India

Date of Birth/Age :

20.10.1978

Date of Appointment :

30.12.1996

DIN No.:

01780480

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	Company/ LLP Status	Defaulting status
1	U21012AP1984PTC004615	STAY-ON PAPERS PRIVATE LIMITED	Director	30/12/1996	30/12/1996	Active	NO
2	U55100AP1991PTC012917	LINGAPUR HOTELS AND INVESTMENTS PRIVATE LIMITED	Director	04/11/2003	04/11/2003	Active	NO

Name :

Srilekha Rao

Designation :

Director

Address :

C 1, Vikrampuri Colony, Secunderabad – 500009, Andhra Pradesh, India

Date of Birth/Age :

18.08.1952

Date of Appointment :

31.01.2012

DIN No.:

01718657

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	Company/ LLP Status	Defaulting status
1	U55100AP1991PTC012917	LINGAPUR HOTELS AND INVESTMENTS PRIVATE LIMITED	Director	08/07/1991	08/07/1991	Active	NO
2	U29142AP1968PTC001204	ELECTRICAL ACCESSORIES (HYDERABAD) PRIVATE LIMITED	Director	17/06/1992	17/06/1992	Active	NO
3	U21012AP1984PTC004615	STAY-ON PAPERS PRIVATE LIMITED	Director	31/01/2012	31/01/2012	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2012

Names of Shareholders	No. of Shares
Kishen Rao Ananth	60940
Srilekha Rao	11085
Rahul Rao	15444
Sagarika Rao	1528
Ellandua Narasimhulu	1
Baira Ramachandra	1
Rajam	1
Total	89000

AS ON 28.09.2012

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Hot Melt Pressure Sensitive, Label Stock and Self Adhesive Tapes in BOPP Tapes, Polyester Tapes, Cotton Tapes, Aluminium Foil Tapes, Release Coated Papers etc.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Canara Bank

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
From Financial Institutions Andhra Pradesh State Financial Corporation Loan	2.734	3.492
From Banks Canara Bank	12.522	9.126
From Others	1.500	0.000
Total	16.756	12.618

Banking Relations :	--
Financial Institution :	Andhra Pradesh State Financial Corporation, 5-9-194, Chirag Ali Lane, P.B. No. 165, Hyderabad – 500001, Andhra Pradesh, India
Auditors :
Name :	K K Chowdary and Associates Chartered Accountants
Address :	No.37, L B Stadium, Hyderabad – 500001, Andhra Pradesh, India
Income-tax PAN of auditor or auditor's firm :	AAIFK1720F

CAPITAL STRUCTURE

AS ON 28.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
120,000	Equity Shares	Rs. 100/- each	Rs. 12.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
89,000	Equity Shares	Rs. 100/- each	Rs. 8.900 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs.100/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
44,300	Equity Shares	Rs.100/- each	Rs. 4.430 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		4.430	4.430	4.430
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		13.084	12.090	1.044
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		17.514	16.520	5.474
LOAN FUNDS
1] Secured Loans		16.756	12.618	10.878
2] Unsecured Loans		12.708	8.190	8.190
TOTAL BORROWING		29.464	20.808	19.068
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
MISCELLANEOUS INCOME		0.000	0.000	10.034
TOTAL		46.978	37.328	34.576
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.146	14.484	15.640
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		1.661	1.278	0.978
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.021	16.070	21.236
	Sundry Debtors	12.925	10.566	9.993
	Cash & Bank Balances	0.196	0.300	0.640
	Other Current Assets	0.359	1.958	0.000
	Loans & Advances	0.000	0.000	0.583
Total Current Assets		36.501	28.894	32.452
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	13.688	5.418	9.343
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.642	1.910	5.151
Total Current Liabilities		14.330	7.328	14.494
Net Current Assets		22.171	21.566	17.958
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		46.978	37.328	34.576

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	47.348	40.570	48.256
		Other Income	1.739	8.057	2.240
		TOTAL	49.087	48.627	50.496
Less	EXPENSES
		Raw Material Consumed			33.276
		Other Expenses			14.325
		TOTAL	48.393	47.916	47.601
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		[Including Depreciation Expenses]	[Including Depreciation Expenses]	2.895
Less/ Add	DEPRECIATION/ AMORTISATION				2.739
	PROFIT BEFORE TAX		0.694	0.711	0.156
Less	TAX		NA	NA	(0.458)
	PROFIT AFTER TAX		NA	NA	0.614
	Less: Prior Period Taxes		NA	NA	0.243
	Net Profit for the year		NA	NA	0.370
	Earnings Per Share (Rs.)		NA	NA	13.86

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	1.22
Net Profit Margin (PBT/Sales)	(%)	1.47	1.75	0.32
Return on Total Assets (PBT/Total Assets}	(%)	1.16	1.64	0.32
Return on Investment (ROI) (PBT/Networth)		0.04	0.04	0.03
Debt Equity Ratio (Total Debt/Networth)		1.68	1.26	3.48
Current Ratio (Current Asset/Current Liability)		2.55	3.94	2.24

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	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	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Ananth K. Rao (HUF)	4.568	2.550
Ananth K. Rao (IND)	6.135	2.635
Gajasimha Rao	0.000	1.000
Shrilekha Rao	2.005	2.005
Total	12.708	8.190

Note:

The Registered office of the company has been shifted from 4B-Type-1APIIC (Industrial Estate), Kukatpally, Hyderabad – 500072, Andhra Pradesh, India to the present address w.e.f.30.06.2008.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U21012AP1984PTC004615
Name of the company	STAY-ON PAPERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 31 and 32, Apparel Export Park, Gundlapochampally, Medchal Mandal, Hyderabad – 500014, Andhra Pradesh, India Email: stayon123@rediffmail.com
This form is for	Modification of charge
Charge identification number of the modified	10357292
Type of charge	Immovable property
Particular of charge holder	Andhra Pradesh State Financial Corporation, 5-9-194, Chirag Ali Lane, P.B. No. 165, Hyderabad – 500001, Andhra Pradesh, India Email: rrwest@apsfc.com
Nature of description of the instrument creating or modifying the charge	Memorandum of Deposit of Title Deeds
Date of instrument Creating the charge	17.07.2012
Amount secured by the charge	24,000,000.00
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per the earlier charge dated 24.05.2012 Terms of Repayment As per the earlier charge dated 24.05.2012 Margin As per the earlier charge dated 24.05.2012 Extent and Operation of the charge The properties mortgaged /charged shall operates as the security for the due repayment of the credit facilities of Rs.24.000 Millions granted by the Bank to the Company, along with interest, penal interest, additional interest, damages if any thereon.
Short particulars of the property charged	Free hold interest in the land admeasuring 4056.62 Sq.mtrs. covered by Plot No. 30, in Sy.No.509/1/2 situated at, APIIC-IALA, AEP Gundlapochampally, Medchal (M), R.R. District together with buildings constructed/to be constructed thereon bounded by North: Plot No. 31 & 32, South: Existing 24.40 m wide road, East: 20 mtrs. Wide Green belt, West: 24.40 mtrs. Wide road.
Particulars of the present modification	There is no change in the limits. The charge is additionally secured by the property Free hold interest in the land admeasuring 4056.62 Sq. mtrs. covered by Plot No. 30, in Sy.No. 509/1/2 situated at, APIIC-IALA, AEP Gundlapochampally, Medchal (M), R.R. District together with buildings constructed/to be constructed thereon bounded by North: Plot No. 31 & 32, South: Existing 24.40 m wide road, East: 20 mtrs. Wide Green belt, West: 24.40 mtrs. Wide road.

FIXED ASSETS

Ø Plant and Equipment

Ø Furniture and Fixture

Ø Office Equipment

Ø Electrification

Ø Vehicles

Ø Land and Building

Ø Computers

Ø Dot Matrix Printer

Ø Type Writer

Ø Weighing Scales

Ø Land

Ø Lazer Jet Printer

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

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	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		43

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.