MIRA INFORM REPORT

Report Date :

23.11.2013

IDENTIFICATION DETAILS

Name :	REMCO PAPER AND BOARD INDUSTRIES PRIVATE LIMITED
Registered Office :	Vijayshree Apartments, Tatya Gharpure Path, Shop No. S/5, Girgaon, Mumbai – 400004, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	26.02.1987
Com. Reg. No.:	11-042720
Capital Investment / Paid-up Capital :	Rs. 30.970 Millions
CIN No.: [Company Identification No.]	U21010MH1987PTC042720
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Coated Duplex Board.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 280000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Management has failed to file the latest financials of 2012 as well as 2013 with the government department. As per the available financial, there appears a drastic dip in the net profitability due to which profit margin of the company has been affected. However, trade relations are fair. Business is active. Payments are unknown. The company can be considered for business dealings with some cautions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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 PARTED BY (GENERAL DETAILS)

Name :	Mr. Paresh Dharia
Designation :	Director
Contact No.:	91-22-23804555
Date :	22.11.2013

LOCATIONS

Registered Office :	Vijayshree Apartments, Tatya Gharpure Path, Shop No. S/5, Girgaon, Mumbai – 400004, Maharashtra, India
Tel. No.:	91-22-23804555/ 23805565
Fax No.:	91-22-23804544
E-Mail :	remco_paper1978@yahoo.co.in
Location :	Owned
Factory :	Plot No. 204/205, Phase II, GIDC, Vapi, District Valsad - 396195, Gujarat, India
Tel. No.:	91-260-2401585/ 2432390
Fax No.:	91-260-2401993

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Paresh Mangaldas Dharia
Designation :	Managing director
Address :	B/12/117, New “B” Type, Residential Area, GIDC, Vapi – 396195, Gujarat, India
Date of Birth/Age :	12.07.1959
Date of Appointment :	14.08.1995
DIN No.:	00054151
Name :	Mr. Sunny Paresh Dharia
Designation :	Director
Address :	B/12/117, New “B” Type, Residential Area, GIDC, Vapi – 396195, Gujarat, India
Date of Birth/Age :	06.10.1984
Date of Appointment :	01.10.2005
DIN No.:	00169974

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Paresh Dharia	637638
Prakash Dharia	68000
Mangaldas Dharia	80000
Rekhaben Dharia	483500
Kunal Dharia	515671
Yashes Dharia	173302
Kashmira Dharia	138122
Manjulaben Dharia	16000
Manjulaben Dharia and Mangaldas Dharia	10000
Paresh Dharia(HUF)	104000
Rekhaben Dharia (HUF) Karta	52393
Late. Jaswant Dharia	195000
Sunny Dharia	205100
Alkaben Shah	10
Naro t tamdas Shah	10
Sureshbhai Shah	10
Kokilaben Shah	10
Rachana Mehta	68201
Khyati Dharia Jointly with Sunny Dharia	272844
Mohanlal Jadia	10
Gaurang Shah	30911
Kamlesh Thakkar	18547
Sandhya Thakkar	12364
Rakha Rakha	15398
Total	3097041

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	95.30
Other top fifty shareholders	4.70
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Coated Duplex Board.

Products/ Services :

ITC Code No.	Product Descriptions
280201000	Paper and Duplex Board

Terms :

Selling :

L/C and Credit

Purchasing :

L/C and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Installed Capacity*	Actual Production*
Duplex Board	15000	8758.61
Mill Board	3000	328.74

(*) On triple shift basis as certified by the management.

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

100 (Approximately)

Bankers :

· Axis Bank Limited, Trishul, 3rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellisbridge, Ahmedabad - 380006, Gujarat, India

Bank of Baroda, C.P. Tank Branch, V. P. Road, Mumbai - 400004, Maharashtra, India [Tel No.: 91-22-23820251]

Facilities :

SECURED LOANS	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
From Axis Bank Limited Term Loans [Secured by creation of first charge by way of equitable mortgage of land and factory building and hypothecation of plant and machinery addition and other fixtures present and future situation at plot no.204, 205, 206, 212 and 161 2^nd Phase, GIDC Industrial Estate, Vapi and personal guarantees of the directors]	6.957	14.975
Cash Credit [Secured by creation of first charge by way of hypothecation of stock, book debts and current asset of the company both present and future and extension of first charge on fixed assets of the company taken for term loans and personal guarantees of the directors]	40.599	40.903
Total	47.556	55.878

Banking Relations :	--
Auditors :
Name :	Mamta R Gupta Chartered Accountant
Address :	B-301, Pramukh Hills, Chharwada Road, Vapi – 396191, Gujarat, India
Income-tax PAN of auditor or auditor's firm :	AGKPA5781E
Enterprises where key managerial person and relative of key managerial person having significant influence :	· Supreme Kraft Private Limited Revival Paper Mills Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
6,000,000	Equity Shares	Rs. 10/- each	Rs. 60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,097,041	Equity Shares	Rs. 10/- each	Rs. 30.970 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		30.970	30.970	30.970
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		39.415	39.353	39.179
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		70.385	70.323	70.149
LOAN FUNDS
1] Secured Loans		47.556	55.878	67.529
2] Unsecured Loans		4.910	7.694	8.100
TOTAL BORROWING		52.466	63.572	75.629
DEFERRED TAX LIABILITIES		5.732	6.249	6.063
TOTAL		128.583	140.144	151.841
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		108.678	66.352	55.167
Capital work-in-progress		0.000	46.982	53.082
INVESTMENT		0.031	0.031	0.031
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	32.430	32.924	25.865
	Sundry Debtors	66.367	38.419	44.902
	Cash & Bank Balances	0.979	0.732	2.173
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	13.269	16.375	25.812
Total Current Assets		113.045	88.450	98.752
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	61.597	56.860	50.058
	Other Current Liabilities	31.421	4.641	5.080
	Provisions	0.153	0.170	0.053
Total Current Liabilities		93.171	61.671	55.191
Net Current Assets		19.874	26.779	43.561
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		128.583	140.144	151.841

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	234.651	183.221	255.815
		Other Income	4.715	9.195	3.760
		TOTAL	239.366	192.416	259.575
Less	EXPENSES
		Raw Material Consumed	126.856	108.201	160.057
		Manufacturing Expenses	74.154	60.407	76.408
		Personnel Expenses	10.971	8.537	9.785
		Administrative Expenses	6.883	7.069	3.838
		Selling and Distribution Expenses	6.582	0.865	0.321
		Increase/ (Decrease) in inventories	0.254	(1.581)	1.665
		TOTAL	225.700	183.498	252.074
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		13.666	8.918	7.501
Less	FINANCIAL EXPENSES		7.400	5.222	9.467
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		6.266	3.696	(1.966)
Less/ Add	DEPRECIATION/ AMORTISATION		5.950	5.829	5.832
Add	EXCEPTIONAL ITEM		0.000	3.266	8.000
Less	PRIOR YEAR EXPENSES		0.034	0.030	0.026
	PROFIT BEFORE TAX		0.282	1.103	0.176
Less	TAX		0.220	0.929	(0.975)
	PROFIT AFTER TAX		0.062	0.174	1.151
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		17.364	17.190	16.039
	BALANCE CARRIED TO THE B/S		17.426	17.364	17.190
	IMPORTS
		Raw Materials	12.340	10.478	18.738
		Stores & Spares	0.000	0.000	0.424
	TOTAL IMPORTS		12.340	10.478	19.162
	Earnings Per Share (Rs.)		0.02	0.06	0.37

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.03	0.09	0.44
Net Profit Margin (PBT/Sales)	(%)	0.12	0.60	0.07
Return on Total Assets (PBT/Total Assets}	(%)	0.13	0.71	0.11
Return on Investment (ROI) (PBT/Networth)		0.00	0.02	0.00
Debt Equity Ratio (Total Debt/Networth)		0.75	0.90	1.08
Current Ratio (Current Asset/Current Liability)		1.21	1.43	1.79

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	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	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
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

CURRENT MATURITIES OF LONG TERM DEBT: NOT AVAILABLE

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	80005979	17/05/2008 *	98,970,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPPOSITE SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD - 380006, GUJARAT, INDIA	A43041367
2	90237407	25/04/2005 *	35,000,000.00	BANK OF BARODA	C. P. TANK BRANCH, C. P. ROAD, MUMBAI - 400004, MAHARASHTRA, INDIA	-

* Date of charge modification

UNSECURED LOANS

UNSECURED LOANS	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
From Banks	2.330	4.719
From Directors	0.516	0.911
From Shareholders	0.014	0.014
Trade Deposits	2.050	2.050
Total	4.910	7.694

OPERATIONS

During the year Turnover has increased by Rs 51.431 Millions (From Rs. 183.221 Millions in the previous year) to Rs. 234.651 Millions and net Profits has decreased by Rs. 0.112 Million (from Rs. 0.174 Million in the previous year to Rs. 0.062 Million.]

Due to continued rise in demand for indigenous paper the turnover has. Risen by 28.07 % as compared to previous year. The margin between the selling price and cost of manufacturing is less and heavy financial burden due to heavy interest and the project on Plot No. 161 has resulted in to reduction in Profits.

Due to the General economic slowdown and recession in the economy, There was decrease in the Profit of the Company and Financial Performance of the Company was adversely impacted by All-round increase in the Cost of raw Materials, Power and Coal and rupee appreciated by more than 20% Over the Previous year resulting in increase in raw material Cost of Imported waste Paper.

The Company's results were further impacted by sharp increase in finance cost arising from higher rates during most part of the year.

As Reported Last Year, Company is taking steps to cut power Cost by Commissioning 0.3 M.W. turbine. Also to increase Production of Machine No 3, Company is in the Process of Installing Off-Line Sheet Cutter Machine which is scheduled to be commissioned in the financial year 2011 - 12.

The Company is continuously taking necessary steps to increase the profitability by increasing volume, Operational Efficiency, Higher Productivity and Cost Cutting Measures. The Directors are Optimistic about the future of the Company due to the fact that the global economy in General and India in particular is showing Signs of revival.

CONTINGENT LIABILITIES:

Particulars	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Disputed sales tax interest liabilities contested by the company with Deputy Commisioner, Valsad	0.526	0.526
Disputed CENVAT penalty liabilities contested by the company with Commissioner, Central Excise, Customs and Service Tax, Daman	0.500	0.000
Disputed Income Tax liabilities contested by the company with Higher judicial authority	1.562	0.000
Total	2.588	0.526

FIXED ASSETS:

· Land

Building

Plant and Machinery

Borewell

Pollution control equipments

Factory safety equipments

Generator

Laboratory equipments

Computer systems

Furniture and fixture

Vehicles

Office 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. 63.02
UK Pound	1	Rs. 102.04
Euro	1	Rs. 84.92

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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.