MIRA INFORM REPORT

Report Date :

21.10.2013

IDENTIFICATION DETAILS

Name :	SERVALAKSHMI PAPER LIMITED

Formerly Known As :	SRI SAI SHAKTHI RAAM PAPERS PRIVATE LIMITED

Registered Office :	Kodaganallur Village, Vaduganpatti Post, I.C. Pettai, Tirunelveli-627010, Tamilnadu

Country :	India

Financials (as on) :	31.03.2013

Date of Incorporation :	03.11.2005

Com. Reg. No.:	18-092783 [New] 18-012260 [Old]

Capital Investment / Paid-up Capital :	Rs.431.137 Millions

CIN No.: [Company Identification No.]	L21012TN2005PLC092783 [New] U21021TZ2005PTC012260 [Old]

TAN No.: [Tax Deduction & Collection Account No.]	CMBS094669F

PAN No.: [Permanent Account No.]	AAKCS2187H

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacture and Exporter of Paper.

No. of Employees :	550 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ca (17)

RATING

STATUS

PROPOSED CREDIT LINE

11-25

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

Status :	Moderate

Payment Behaviour :	Slow and delayed

Litigation :	Exist

Comments :	Subject is an established company having moderate track record. There appears a huge accumulated loss recorded by the company which has eroded net worth of the company. Performance of the company seems to be slow average. Profitability is under pressure. However, trade relations are fair. Business is active. Payment terms are slow and delayed. The company can be considered for business dealing on a safe and secured 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 – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure. Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	B [Long Term]
Rating Explanation	Risk prone credit quality and high risk of default.
Date	06.12.2012

Rating Agency Name	CARE
Rating	A4 [Short Term Bank Facilities]
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	06.12.2012

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.

INFORMATION PARTED BY

Name :	Mr. Ganesh Krishnan
Designation :	Accounts Manager
Contact No.:	91-422-4333344
Date :	16.10.2013

LOCATIONS

Registered Office / Factory :	Kodaganallur Village, Vaduganpatti Post, I.C. Pettai, Tirunelveli-627010, Tamilnadu, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	gvramana@sarvalakshmi.in
Website :	http://www.sarvalakshmi.in

Corporate Office :	31 (Old No. 10-Z), Bharathi Park, VII Cross, Saibaba Colony, Coimbatore-641011, Tamilnadu, India
Tel. No.:	91-422-4333344
Fax No.:	91-422-4333355
E-Mail :

DIRECTORS

AS ON 31.03.2013

Name :	Mr. R. Ramswamy
Designation :	Chairman and Managing Director

Name :	Mr. Y. Shivaram Prasad
Designation :	Directors

Name :	Mr. B. Sriramulu
Designation :	Directors

Name :	Mr. D. Muthusamy
Designation :	Directors

Name :	Mr. S. Srinivasaragavan
Designation :	Directors

Name :	Mr. V.S. Pattabiraman
Designation :	Directors

Name :	Mr. D.V.A. Manoharan (From 6.8.2012)
Designation :	Directors

KEY EXECUTIVES

Name :	Mr. G.V. Ramana
Designation :	Chief Financial Officer

Name :	Mrs. Praveena Dhanagopal
Designation :	Company Secretary

Name :	Mr. Ganesh Krishnan
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	3951588	9.17
Bodies Corporate	18472412	42.85
Sub Total	22424000	52.01
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	22424000	52.01
(B) Public Shareholding
(1) Institutions
(2) Non-Institutions
Bodies Corporate	6407601	14.86
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	4562689	10.58
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	9387768	21.77
Any Others (Specify)	331598	0.77
Clearing Members	245193	0.57
Non Resident Indians	86405	0.20
Sub Total	20689656	47.99
Total Public shareholding (B)	20689656	47.99
Total (A)+(B)	43113656	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	43113656	0.00

BUSINESS DETAILS

Line of Business :	Manufacture and Exporter of Paper.

Exports :
Products :	Paper
Countries :	African Country Dubai Sri Lanka Singapore

Imports :
Products :	Raw Material
Countries :	Dubai US Austria Switzerland

Terms :
Selling :	Cash and Credit

Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

550 [Approximately]

Bankers :

Indian Overseas Bank
State Bank of India
Bank of India

Facilities :

Secured Loan	31.03.2013 [12 Months]	31.03.2012 [9 Months]
	Rs. in Millions
Long Term Borrowings
Term Loans From Banks Term Loan from Nationalized Bank (Secured by 1st charge on the Fixed Assets and 2nd Charge on the Current Assets of the Company on pari passu basis)
Indian Overseas Bank	1496.390	1316.397
State Bank of India	658.102	597.439
Bank of India	788.603	684.073
Long term maturities of finance lease obligations
Hire purchase Loan (Secured by Hypothecation of Specific Vehicles)	0.000	0.166
Less: Unmatured Financial Charges	0.000	(0.001)

Short Term Borrowings
From Banks
i) Cash Credit from Nationalized Bank	352.374	339.674
ii) Buyers Credit	27.368	43.991
iii) Bills discounted	6.305	11.556
TOTAL	3329.142	2993.295
NOTES: Long Term Borrowings: (All the above loans are personally guaranteed by Managing Director) The interest rates for the above loans ranges from 11% to 15.50% Period and amount of continuous default relating to above loans - Nil Short Term Borrowings: (All the above loans are secured by first charge on the current assets and 2nd charge on the fixed assets of the company on pari passu basis and also personally guaranteed by Managing Director). Period and amount of continuous default - Nil


Banking Relations :	--

Statutory Auditors :
Name :	S. Krishnamoorthy and Company Chartered Accountants
Address :	Coimbatore, Tamilnadu, India

Other Related Parties :	Servalakshmi Paper and Boards (Private) Limited Danalakshmi Paper Mills (Private) Limited Servall Engineering Works (Private) Limited Techno Spin (Private) Limited and Vijayalakshmi Paper Mills

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
50000000	Equity Shares	Rs.10/- each	Rs.500.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
43113656	Equity Shares	Rs.10/- each	Rs.431.137 Millions

NOTES:

DETAILS OF SHAREHOLDER HOLDING MORE THAN 5%

PARTICULAR	AS ON 31.03.2013
	NO. OF SHARES	% OF HOLDING
Servalakshmi Paper and Boards Private Limited	8237246	19.11
Danalakshmi Paper Mills Private Limited	5346056	12.40
Servall Engineering Works Private Limited	4835030	11.21

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013 [12 Months]	31.03.2012 [9 Months]	30.06.2011 [15 Months]
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	431.137	431.137	431.137
(b) Reserves & Surplus	(847.114)	(389.339)	190.477
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	(415.977)	41.798	621.614

(3) Non-Current Liabilities
(a) long-term borrowings	2949.845	2603.774	2272.347
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	1.012	0.455	0.371
Total Non-current Liabilities (3)	2950.857	2604.229	2272.718

(4) Current Liabilities
(a) Short term borrowings	386.047	395.221	387.733
(b) Trade payables	385.818	350.408	336.972
(c) Other current liabilities	48.119	55.953	87.793
(d) Short-term provisions	0.000	0.000	0.000
Total Current Liabilities (4)	819.984	801.582	812.498

TOTAL	3354.864	3447.609	3706.830

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2440.296	2564.330	2597.397
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	42.269	43.145	9.074
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	23.330	29.228	86.853
(e) Other Non-current assets	46.621	46.621	46.586
Total Non-Current Assets	2552.516	2683.324	2739.910

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	370.259	400.177	567.401
(c) Trade receivables	142.186	129.701	107.119
(d) Cash and cash equivalents	27.337	25.233	88.475
(e) Short-term loans and advances	161.259	168.163	177.556
(f) Other current assets	101.307	41.011	26.369
Total Current Assets	802.348	764.285	966.920

TOTAL	3354.864	3447.609	3706.830

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013 [12 Months]	31.03.2012 [9 Months]	30.06.2011 [15 Months]
	SALES
		Income	1801.044	540.916	1313.048
		Other Income	53.810	21.200	42.510
		TOTAL (A)	1854.854	562.116	1355.558

Less	EXPENSES
		Cost of materials consumed	1015.999	400.515	921.214
		Employee benefits expense	59.912	34.813	64.814
		Other expenses	657.309	250.684	587.737
		Extraordinary items	10.576	0.000	0.000
		Changes in inventories of finished goods work-in-progress and Stock-in-Trade	(1.698)	92.945	(178.750)
		Exceptional items	0.000	(17.239)	0.000
		TOTAL (B)	1742.098	761.718	1395.015

Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		112.756	(199.602)	(39.457)

Less	FINANCIAL EXPENSES (D)		435.396	303.531	355.100

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(322.640)	(503.133)	(394.557)

Less/ Add	DEPRECIATION/ AMORTISATION (F)		135.135	76.683	141.972

	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(457.775)	(579.816)	(536.529)

Less	TAX (H)		0.000	0.000	0.000

	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(457.775)	(579.816)	(536.529)

	EARNINGS IN FOREIGN CURRENCY
		Export FOB Value	238.299	110.469	271.448
	TOTAL EARNINGS		238.299	110.469	271.448

	IMPORTS
		Raw Materials	224.155	158.877	590.212
		Coal	366.446	141.598	186.551
		Components and Spare Parts	24.714	9.910	10.804
	TOTAL IMPORTS		615.315	310.385	787.567

	Earnings / (Loss) Per Share (Rs.)		(10.62)	(13.45)	(21.58)

Expected Sales (2013-14 ) : Rs.2400.000 Millions.

The above information has been parted by Mr. Ganesh Krishnan.

QUARTERLY RESULTS

PARTICULARS			30.06.2013
Net Sales			563.500
Total Expenditure			513.600
PBIDT (Excl OI)			49.900
Other Income			18.200
Operating Profit			68.100
Interest			118.200
Exceptional Items			0.000
PBDT			(50.200)
Depreciation			33.700
Profit Before Tax			(83.900)
Tax			0.000
Profit After Tax			(83.900)
Extraordinary Items			0.000
Net Profit			(83.900)

KEY RATIOS

PARTICULARS		31.03.2013 [12 Months]	31.03.2012 [9 Months]	30.06.2011 [15 Months]
PAT / Total Income	(%)	(24.67)	(103.15)	(39.57)

Net Profit Margin (PBT/Sales)	(%)	(25.42)	(107.19)	(40.86)

Return on Total Assets (PBT/Total Assets}	(%)	(13.82)	(17.03)	(14.51)

Return on Investment (ROI) (PBT/Networth)		1.10	(13.87)	(0.86)

Debt Equity Ratio (Total Debt/Networth)		(8.02)	71.75	4.27

Current Ratio (Current Asset/Current Liability)		0.97	0.95	1.19

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	No
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	Yes
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)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
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	No
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth 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

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10185308	21/06/2012 *	132,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, TRICHY ROAD, COIMBATORE - 641018, TAMILNADU, INDIA	B44022580
2	10183891	21/06/2012 *	155,000,000.00	BANK OF INDIA	COIMBATORE MID CORPORATE BRANCH, I FLOOR, CHAMBER TOWERS, 8/732 AVAINASHI ROAD, COIMBATORE - 641018, TAMILNADU, INDIA	B44023299
3	10188397	21/06/2012 *	337,500,000.00	INDIAN OVERSEAS BANK	COIMBATORE MID CORPORATE BRANCH, I FLOOR, CHAMBER TOWERS, 8/732 AVAINASHI ROAD, COIMBATORE - 641018, TAMILNADU, INDIA	B43632322
4	10130409	21/06/2012 *	778,000,000.00	BANK OF INDIA	COIMBATORE MID CORPORATE BRANCH, I FLOOR, CHAMBER TOWERS, 8/732 AVAINASHI ROAD, COIMBATORE - 641018, TAMILNADU, INDIA	B44024024
5	10081284	21/06/2012 *	658,600,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, TRICHY ROAD, COIMBATORE - 641018, TAMILNADU, INDIA	B44022150
6	10059874	21/06/2012 *	1,460,700,000.00	INDIAN OVERSEAS BANK	COIMBATORE MID CORPORATE BRANCH, I FLOOR, CHAMBER TOWERS, 8/732 AVAINASHI ROAD, COIMBATORE - 641018, TAMILNADU, INDIA	B43630490
* Date of charge modification

CASE DETAILS

CHENNAI COURT
CASE STATUS INFORMATION SYSTEM

CASE STATUS:	PENDING
STATUS OF:	ORIGINAL PETITION
CASE NO.:	566
YEAR :	2013
PETITIONER :	URC CONSTRUCTION PRIVATE LIMITED
RESPONDENT :	SERVALAKSHMI PAPER LIMITED
PET'S ADVOCATE :	V.P.SENGOTTUVEL
RES'S ADVOCATE :	A.K.MYLSAMY & ASSOCIA
CATEGORY :	SECTION 11
	LAST LISTED ON: NO DATE MENTIONED
CASE UPDATED ON :	SEP 26 2013
NO CONNECTED APPLICATION(S)	NO CONNECTED MATTER(S)

Unsecured Loan	31.03.2013 [12 Months]	31.03.2012 [9 Months]
	Rs. in Millions
Long Term Borrowings
Trade Deposits Trade deposits are received from dealers with whom the company has running agreement.	6.750	5.700
TOTAL	6.750	5.700

PERFORMANCE OF THE COMPANY:

The total paper production was 48459 tonnes, out of which 39198 tonnes (81%) was Newsprint (NP) and Printing and Writing Paper (PWP) 9261 tonnes (19%).

Based on the acceptance of PWP in the domestic market, they are planning to increase the volumes of PWP in their production planning to get better sales realization.

The Company has exported 6644 MT (13.59% of production) in the financial year ended 31st March 2013. In the forthcoming financial year, around 25% of the total production has been planned for exports. Their Company is mainly focusing on Export market season (April – October) for filling the demand gap for PWP.

The speed of the paper machine has been increased and stabilized during the financial year resulting in consistent production and quality levels. The average production per month in the financial year has increased by 46%. Their products are well accepted in the international and domestic markets. Due to its whole year demand, SPL is mainly focusing on the computer stationery segment.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

Paper plays an important role in communication and as a packaging material. In India, the industry is highly fragmented, with large number of companies having small capacities. Indian industry contributes to the Global paper production around 2-3%.

India is considered as one of the fastest growing paper market in the world. Paper consumption in India has been growing at about 8% CAGR in the last few years. The industry has reached an inflection point and is poised for larger growth in multiples of GDP. As per IPMA, the current paper consumption is around 12 million tonnes and it is estimated to touch almost 14 million tonnes by 2015-16 and 20 million tonnes by 2020.

As per the 2011 census, India's effective literacy rate touched 74% catalyzing paper demand. In the Union Budget 2013, the Government has allocated nearly Rs. 650000.000 Millions towards education in 2012-13, an increase of 7% over the preceding year. The allocation for Sarva Siksha Abhiyaan, the government's programme that secures the right of children to free compulsory education was Rs.272500.000 Millions.

There is a continuous demand for Newsprint (NP) throughout the year, whereas Printing and Writing Paper (PWP) has seasonality. The peak demand for PWP is from January to June every year and July to December is lean period.

OUTLOOK:

The products NP and PWP varieties are manufactured in SPL using 100% Recycled fibre and hence the products are not comparable to the products of virgin pulp based A-grade mills in quality. The per capita paper consumption in India is 10 Kg. All citizens with at least 8 years of education by 2015. This gives good hopes for Paper Industry in India. The educational enrolment is increasing at 4.1% per annum and the development in the Secondary and Tertiary sectors of the Country’s economy will increase the paper consumption.

Raw materials shortage, higher capital outlay, strict environment regulations are the major entry barriers for the industry. The demand supply gap is high. The capacity increase in paper industry happened only in coated duplex board production and not much in the Newsprint and Printing and Writing Segments. The Indian paper market has become vulnerable to imports as the developed economies, the traditional importers, face renewed signs of economic recession.

Depreciation of the rupee against the dollar will also impact paper manufacturer’s operating profitability in 2013, due to their significant reliance on imported inputs such as coal and other raw materials. The demand growth for writing and printing paper is expected to be modest this year, on the back of significant capacity addition going on stream. Subdued economic growth may impact the overall paper demand from varied sectors such as industrial, office and educational.

Ban on plastics is a boom to paper industry. There is a negligible effect because of paperless concepts like I-pad, Electronic Text books etc., as only MNC Companies can adopt such concepts and also 100% paper less concept is impossible as some sort of back-up should be there for the same. PWP demand is increasing because of many factors.

They are planning for 3 – 4% total market share in PWP segment and 2-3% of MG varieties in India and hence the entry barrier in the Market is not expected. There is CAGR of 6.8% for PWP and 6-8% for MG varieties as predicted by CRISIL.

FIXED ASSETS:

Land
Building
Plant and Machinery
Electrical Fittings
Furniture and Fixtures
Office Equipments
Computers
Vehicles

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30^TH JUNE 2013

Rs. in Millions

Sr. No.	Particular	Three Months Ended
		30.06.2013
		Unaudited

1.	Net Sales/Income from Operations	563.483
	Other Operating Income	0.000
	Total Income From Operations (Net)	563.483

2.	Expenditure
	Cost of materials consumed	343.501
	Purchase of stock in trade	0.000
	Employee benefits expenses	15.852
	Depreciation and amortization expenses	33.728
	Power and Fuel	126.051
	Other expenses	42.080
	Changes in inventories of finished goods, work in progress and stock in trade	(13.884)
	Total Expenses	547.328

3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	16.155

4.	Other Income	18.169

5.	Profit Before Interest and Exceptional Items (3+4)	34.324

6.	Interest	118.225

7.	Profit After Interest but before Exceptional Items (5-6)	(83.901)

8.	Exceptional Items	--

9.	Profit from Ordinary Activities before Tax (7+8)	(83.901)

10.	Tax Expense	--

11.	Net Profit from Ordinary Activities after Tax (9-10)	(83.901)

12.	Extraordinary Item (net of expense)	--

13.	Net Profit for the period (11-12)	(83.901)

14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	431.137

15.	Reserves Excluding Revaluation Reserve	(847.114)

16.	Basic and Diluted Earnings Per Share (EPS) (Rs.)-Not Annualized
	a) Basic and diluted EPS before extraordinary items	(1.95)
	b) Basic and diluted EPS after extraordinary items	(1.95)

17.	Public Shareholding
	-Number of Shares	20689656
	- Percentage of Shareholding	47.99

18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	Nil
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	Nil
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	Nil

	b) Non Encumbered
	- Number of Shares	22424000
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	52.01

Particulars	Quarter Ended 30.06.2013
Pending at the beginning of the quarter	Nil
Received during the quarter	Nil
Disposed of during the quarter	Nil
Remaining unresolved at the end of the quarter	Nil

SEGMENT WISE RESULTS FOR QUARTER ENDED 30^TH JUNE 2013

Rs. in Millions

Sl. No.	Particulars	Three Months Ended
		30.06.2013
		Unaudited
1	Segment Revenue
	Paper	513.657
	Energy	149.496
	TOTAL	663.153

	Less : Inter Segment Revenue (Net of Excise)	99.670

	NET SALES / INCOME FROM OPERATION	563.483

2	Segment Results
	Paper	22.822
	Energy	11.502
	TOTAL	34.324

	Less :Interest	118.225
	NET PROFIT (+) / LOSS(-) BEFORE TAX	(83.901)

3	Capital Employed
	Paper	2440.087
	Energy	818.993
	TOTAL	3259.08

NOTES:

The above results have been reviewed by the audit committee and approved by the board of directors at the meeting held on August 06, 2013.

The company has two segments viz., Power and Paper. These segments have been identified in line with the AS 17 for segment reporting.

The networth of the company has been fully eroded as on 31.03.2013. The company was admitted to CDR Cell on 24^th June 2013 for debt restructuring.

Figures for the previous periods have been regrouped wherever necessary to conform to the classification for the current periods.

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.61.27
UK Pound	1	Rs.99.03
Euro	1	Rs.83.80

INFORMATION DETAILS

Information Gathered by :	SVA

Report Prepared by :	TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		17

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.

MIRA INFORM REPORT

(24.67)

(25.42)

(13.82)

1.10

(8.02)

0.97

Unit