MIRA INFORM REPORT

Report Date :

01.02.2014

IDENTIFICATION DETAILS

Name :	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED
Registered Office :	944 (Old 1680/31) Ramani’s Regency, Trichy Road, Ramanathapuram, Coimbatore-641045, Tamilnadu
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.05.2002
Com. Reg. No.:	18-010851
Capital Investment/ Paid-up Capital:	Rs.150.376 Millions
CIN No.: [Company Identification No.]	U21012TZ2002PTC010851
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Kraft Paper and Duplex Board.
No. of Employees:	850 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 2300000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Profitability of the company seems to be fair. Trade relations are fair. Business is active. Payment terms are reported to be usually correct. The Company can be considered for business dealing at usual trade terms and condition.

NOTES :

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

ECGC Country Risk Classification List – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
India	A1	A1

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

INDIAN ECONOMIC OVERVIEW

The services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus onproviding payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

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. Srinivasan
Designation :	General Manager
Contact No.:	91-9600923881
Date :	23.01.2014

LOCATIONS

Registered Office / Corporate Office :	944 (Old 1680/31) Ramani’s Regency, Trichy Road, Ramanathapuram, Coimbatore-641045, Tamilnadu, India
Tel. No.:	91-422-4300445 / 4300446
Mobile No.:	91-9600923881 (Mr. Srinivasan)
Fax No.:	91-422-4300449
E-Mail :	sales@sripathipaperboards.com karhikeyan@sripthi.net gmf@sripathi.net
Website :	http://www.sripthipaperboards.com
Factory 1 :	2, Sukkiravarpatti, Sivakasi-626130, Tamilnadu, India
Tel. No.:	91-4562-238171 / 238117 / 238014 / 238049
Fax No.:	91-4562-238147
E-Mail :	sales@sripathi.net
Factory 2 :	Rajan Nagar, Puduvadavalli, Sathyamangalam – 638401, Tamilnadu, India
Tel. No.:	91-4295-243463
Fax No.:	91-4295-243473
E-Mail :	marketing@sripathi.net

DIRECTORS

As on 27.09.2013

Name :

Mr. Ramachandran Krishnasamy

Designation :

Chairman and Managing Director

Address :

2/3, R K Gardens, Chandra Gandhi Nagar, Extension Sowripalayam Post, Coimbatore-641028, Tamilnadu, India

Date of Birth/Age :

30.04.1961

Date of Appointment :

19.08.2002

PAN No.:

AFXPK5490E

DIN No.:

00251421

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	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	29/05/2002	29/05/2002	Not Available for eFiling	NO
2	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Managing director	19/08/2002	19/08/2002	Active	NO
3	U51909TZ2003PTC010770	SINGLE WINDOW COMMODITIES PRIVATE LIMITED	Director	11/09/2003	11/09/2003	Active	NO
4	L67120TZ1995PLC005763	SINGLE WINDOW SECURITIES LIMITED	Managing director	01/10/2009	01/10/2004	Active	NO
5	U29120TZ2010PTC015883	K.R.S. ENGINEERING INDIA PRIVATE LIMITED	Director	10/03/2010	10/03/2010	Active	NO
6	U02102TZ2005PTC011874	SUDIRMAN PAPER PRIVATE LIMITED	Director	11/03/2010	11/03/2010	Amalgamated	NO
7	U74900TN2008NPL067185	SOUTH INDIAN KRAFT PAPER MILLS ASSOCIATION	Director	28/09/2011	28/09/2011	Active	NO
8	U21010TZ2011PTC016821	SRI SATYA SAI PAPER & BOARD MILLS PRIVATE LIMITED	Additional director	16/09/2013	16/09/2013	Active	NO
9	U37102TZ1998GAP008524	TAMILNADU ELECTRICITY CONSUMERS ASSOCIATION	Director	04/10/2013	04/10/2013	Active	NO

Name :

Mr. Krishnasamy Ravichandran

Designation :

Managing Director

Address :

Old No.725/6 C, New No.350, Standard Colony, Thiruthangal, Sivakasi, Virudhunagar-626130, Tamilnadu, India

Date of Birth/Age :

29.06.1963

Date of Appointment :

29.05.2002

PAN No.:

AAPPR9861F

DIN No.:

01120533

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Managing director	29/05/2002	29/05/2002	-	Active	NO
2	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	19/08/2002	19/08/2002	-	Not Available for eFiling	NO
3	U74900TN2008NPL067185	SOUTH INDIAN KRAFT PAPER MILLS ASSOCIATION	Director	30/09/2010	03/03/2010	28/09/2011	Active	NO
4	U02102TZ2005PTC011874	SUDIRMAN PAPER PRIVATE LIMITED	Director	11/03/2010	11/03/2010	-	Amalgamated	NO
5	U21010TZ2011PTC016821	SRI SATYA SAI PAPER & BOARD MILLS PRIVATE LIMITED	Additional director	16/09/2013	16/09/2013	-	Active	NO

Name :

Mr. Ayyappan Ragupathy

Designation :

Whole Time Director

Address :

471 A, Vadakku Radaveethi, Thiruthangal, Virudhunagar-626130, Tamilnadu, India

Date of Birth/Age :

11.02.1958

Date of Appointment :

19.08.2002

PAN No.:

AGDPR8092G

DIN No.:

01128755

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	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	19/08/2002	19/08/2002	Not Available for eFiling	NO
2	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Whole-time director	19/08/2002	19/08/2002	Active	NO
3	U21010TZ2011PTC016821	SRI SATYA SAI PAPER & BOARD MILLS PRIVATE LIMITED	Additional director	16/09/2013	16/09/2013	Active	NO

Name :

Mr. Alagamperumal Subbiah

Designation :

Director

Address :

54, Azhagapuri, Virudhunagar-626005, Tamilnadu, India

Date of Birth/Age :

03.06.1960

Date of Appointment :

19.08.2002

DIN No.:

01240122

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	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	19/08/2002	19/08/2002	Not Available for eFiling	NO
2	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Director	19/08/2002	19/08/2002	Active	NO

Name :

Mr. Veerappan Nagaraj

Designation :

Director

Address :

1/18, Azhagapuri, Meesalur PO Virudhunagar-626003, Tamilnadu, India

Date of Birth/Age :

09.05.1962

Date of Appointment :

19.08.2002

DIN No.:

01240207

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	U21012TN2002PTC048995	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED (TRFD TO CBE)	Director	19/08/2002	19/08/2002	Not Available for eFiling	NO
2	U21012TZ2002PTC010851	SRIPATHI PAPER AND BOARDS PRIVATE LIMITED	Director	19/08/2002	19/08/2002	Active	NO

KEY EXECUTIVES

Name :	Mr. Sri Nivasan
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.09.2013

Names of Shareholders	No. of Shares
R Krishnaswamy	7492041
K Chitrabanu	3146270
R Jayaprakash	100000
B Senthil Kumar	52500
S. Jagannathan	27320
P.R. Krishnamoorthy	5000
V. Vasanthi	50000
Kalarani	50000
Megastox Fin Research Private Limited, India	746950
B. Anuradha	10000
K Ravichandran	761513
R Rukmani	25000
V Nagaraj	339875
A Raghupathi	132896
A Subbiah	198275
S Alagudurai	100000
Beaumont Enterprises India Private Limited, India	1800000
TOTAL	15037640

As on 27.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Bodies corporate	16.94
Directors or relatives of Directors	83.06
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Kraft Paper and Duplex Board.

Products :

ITC Code	Product Description
8419	Paper and Paper Product
8502	Windmill

Exports :

Products :

· M.G. Kraft Paper 12 to 30 BF (100to 250GSM)

· White Coated Duplex Board (White Black and Grey Black) 250 to 500 GSM

· Writing and Printing Paper

Countries :

· UK

· USA

· Europe

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Value
Licensed Capacity	TPA	72000
Installed Capacity	TPA	NA
Actual Production
Finished Goods	TPA	71150.98

GENERAL INFORMATION

No. of Employees :

850 (Approximately)

Bankers :

· City Union Bank of India, 13 – Chairman NPSN Arumuga Nadar Road, Sivakasi – 626123, Tamilnadu, India

· Industrial Development Bank of India Limited, Stock Exchange Building, 683-686, Trichy Road, Coimbatore, Tamilnadu, India

· State Bank of Travancore, Coimbatore Branch, 15, SNV Ashirvad, State Bank Road, Coimbatore-641018, Tamilnadu, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2013	Rs. In Millions 31.03.2012
Long Term Borrowing
Term Loans From Banks	380.820	538.783
Term Loans From Others	6.000	9.900
Other loans and advances	4.385	0.265
Short Term Borrowing
Loans repayable on demand from Bank	668.678	635.542
Loans repayable on demand from Others	0.000	252.569
TOTAL	1059.883	1437.059

SBT - Secured by charge with IDBI Bank over all movable pari passu & immovable fixed assets of the company present and future, including the proposed expansion project and also secured by hypothecation of current assets of the company subject to the charge on working capital limits and personal guarantee by the promoter Directors.

IDBI - Secured by paripassu charge over the entire fixed assets of the company along with State Bank of Travancore and also secured by hypothecation of current assets of the company subject to charge on the working capital limits and personal guarantee by the promoter Directors.

Union Bank of India - Secured by the fixed assets, Stocks and Book Debts of the Writing and Printing Paper division and personal guarantee by the Directors.

TIIC - Secured by the fixed asset purchased using the fund.

IndusInd Bank - Secured by Vehicles purchased using their respective loans.

Kotak Mahindra Bank - Secured by vehicles purchased using the fund.

Short term borrowings from banks are cash credit and WCDL and secured by First charge by way of Hypothecation of entire current assets of the company and further secured by second charge by way of mortgage on all the fixed assets, both present and future of the company and personal guarantee given by the Directors of the company. These charges are ranking pari passu amongst the working capital lending Bankers

Banking Relations :	---
Auditors :
Name :	Bakthavachalam and Company Chartered Accountant
Address :	15/67 A, KG Layout, Bharathi Park, 8th Cross Saibaba Colony, Coimbatore-641011, Tamilnadu, India
PAN No.:	AADFB5331Q
Sister Concern	· Single Window Securities Limited · Balaji Packaging Industries

CAPITAL STRUCTURE

AS ON 31.3.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.10/- Each	Rs.180.000 Million
	Total		Rs.180.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15037640	Equity Shares	Rs.10/- Each	Rs 150.376 Million
	Total		Rs 150.376 Million

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.10/- Each	Rs.180.000 Million
2000000	Preference Shares	Rs.100/- Each	Rs.200.000 Million
	Total		Rs.380.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
15037640	Equity Shares	Rs.10/- Each	Rs 150.376 Million
	Total		Rs 150.376 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	150.376	100.376	100.000
(b) Reserves & Surplus	391.394	324.921	248.984
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	45.751	97.751	31.612
Total Shareholders’ Funds (1) + (2)	587.521	523.048	380.596
(3) Non-Current Liabilities
(a) long-term borrowings	418.871	556.235	429.226
(b) Deferred tax liabilities (Net)	137.719	105.706	87.194
(c) Other long term liabilities	12.147	14.962	27.350
(d) long-term provisions	5.495	1.680	1.053
Total Non-current Liabilities (3)	574.232	678.583	544.823
(4) Current Liabilities
(a) Short term borrowings	1108.233	888.111	524.711
(b) Trade payables	175.645	200.690	96.781
(c) Other current liabilities	161.078	187.247	120.557
(d) Short-term provisions	19.712	20.049	27.023
Total Current Liabilities (4)	1464.668	1296.097	769.072
TOTAL	2626.421	2497.728	1694.491
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1361.876	1212.162	785.636
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	36.662	34.596	63.162
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.079
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	7.263	5.068	17.839
(e) Other Non-current assets	0.000	0.000	0.060
Total Non-Current Assets	1405.801	1251.826	866.776
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	460.976	443.809	209.262
(c) Trade receivables	518.109	431.706	332.622
(d) Cash and cash equivalents	59.184	182.078	58.700
(e) Short-term loans and advances	168.868	174.315	220.200
(f) Other current assets	13.483	13.994	6.931
Total Current Assets	1220.620	1245.902	827.715
TOTAL	2626.421	2497.728	1694.491

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Sales and Services	3257.193	2497.406	2055.000
		Other Income	4.726	3.300	18.700
		TOTAL (A)	3261.919	2500.706	2073.700
Less	EXPENSES
	Material and Operating Expenses		2848.790	2175.247	1801.900
	TOTAL (B)		2848.790	2175.247	1801.900
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		413.129	325.459	271.800
Less	FINANCIAL EXPENSES (D)		189.735	145.893	82.700
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		223.394	179.566	189.100
Less/ Add	DEPRECIATION/ AMORTISATION (F)		124.885	85.683	64.000
	PROFIT BEFORE TAX (E-F) (G)		98.509	93.883	125.100
Less	TAX (I)		32.013	25.903	42.600
	PROFIT AFTER TAX (G-I) (J)		66.496	67.980	82.500
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		197.497	151.184	68.600
	PROFIT BROUGH FORWARD FROM SUDIRMAN		0.000	(21.588)	0.000
	INVESTMENT IN PAPER SUDIRMAN PRIVATE LIMITED SHARES EXTINGUISHED		0.000	(0.079)	0.000
	BALANCE CARRIED TO THE B/S		263.993	197.497	151.100
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	239.600	253.247
	TOTAL EARNINGS		NA	239.600	253.247
	IMPORTS		NA	654.300	534.312
	Earnings Per Share (Rs.10/- Each)		6.60	6.77	8.38

Expected Sales (2013-14): Rs. 4000.000 Million

The above information has been parted by Mr. Srinivasan (General Manger)

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.211
PAT / Total Income	(%)	2.04	2.72	3.98
Net Profit Margin (PBT/Sales)	(%)	3.02	3.76	6.62
Return on Total Assets (PBT/Total Assets}	(%)	3.80	3.81	7.66
Return on Investment (ROI) (PBT/Networth)		0.17	0.18	0.32
Debt Equity Ratio (Total Liability/Networth)		2.60	2.76	2.51
Current Ratio (Current Asset/Current Liability)		0.83	0.96	2.17

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	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	----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----
26]	Buyer visit details	Yes
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	No

UNSECURED LOAN:

Particular	Rs. In Millions 31.03.2013	Rs. In Millions 31.03.2012
Short Term Borrowing
Loans repayable on demand from Others	439.555	0.000
Long Term Borrowing
Term Loan From Bank	27.666	7.287
TOTAL	467.221	7.287

REVIEW OF OPERATIONS:

During the year the company has achieved a turnover of Rs. 3257.193 Million as against the Previous year turnover of Rs.2497.406 Million There is an overall growth in sales by 30.42% over the previous year. The EBITDA has improved to Rs 413.129 Million as against Rs 325.459 Million in the previous year. The Company is present in all major segments of Paper Industry viz., Kraft, Boards and Printing & Writing segments. The overall slowdown in the economy was responsible for sluggish demand for paper. The EBITDA has been maintained more or less as in the previous year but the high interest cost and depreciation has resulted in the reduction in the Profit after tax. However the company is constantly taking steps in the areas of Quality improvement, energy savings, effluent treatment etc., in order to achieve cost reduction which will have a bearing on the bottom line in the years to come.

OUTLOOK:

The Indian Economy has grown by about 5% during 2012-13 against 6.5% during the previous year with manufacturing sector growth of just 1% against 2% in the previous year. India represents 15% of the world population but the paper consumption stands at very low levels compared to the world's paper consumption. The Indian Paper Industry which ranks 11th in production globally, has registered faster growth rates of about 7% in recent times. The forecast for paper industry for 2013- 14 is around 6 7%. The Indian Govt., has allowed for FDI in retail business. They expect this will create a substantial demand in the Premium duplex Board and folding box Board in the paper Industry which has higher margins. There are strong macroeconomic drivers like increasing corporate spend, improving literacy and living standards, declining poverty and higher disposable incomes in India that are likely to increase the demand for paper in the country in the long run.

CONTINGENT LIABILITIES:

Particular	31.03.2013 Rs. In Million	31.03.2012 Rs. In Million
Claims against the company not acknowledged as debt(Letter of credit opened both inland and foreign)	16.113	93.838
Claims against the company not acknowledged as debt The company is liable to pay electricity tax on own generation which is disputed in writ petition before madras high court which had granted a stay against such levy	-	4.823
Reversal of Cenvat credit taken on inputs during the manufacture of first exempted clearance of 3500 MT on Unit I & Unit II. The case is pending with the CESTAT.	22.063	-
TNEB has demanded penalty for exceeding demand and energy quota. The company has filed appeal with the Tamil Nadu Electricity Regulatory Commission, Chennai and is pending	7.074	-
Sales tax dept., has demanded reversal of input credit availed under TN VAT Act against the power plant.	3.407	-

INDEX OF CHARGE:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10264243	28/11/2013 *	495,300,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, 1443, TRICHY ROAD, COIMBATORE, Tamil Nadu - 641018, INDIA	B92360296
2	10200516	10/02/2010	19,000,000.00	THE TAMILNADU INDUSTRIAL INVESTMENT CORPORATION LI MITED	UNITED SHOPPING COMPLEX, 94,DR.NANJAPPA ROAD, COI MBATORE, Tamil Nadu - 641018, INDIA	A78467925
3	10079906	25/06/2010 *	57,350,000.00	UNION BANK OF INDIA	ERODE MAIN BRANCH, 381 SATHY ROAD, ERODE, Taminadu - 638003, INDIA	A90446543
4	10026626	05/09/2013 *	400,000,000.00	IDBI Bank Ltd	Excellence, 4th Floor, 104, Race course Road, Coimbatore, Tamil Nadu - 641018, INDIA	B87160511
5	10023498	28/11/2013 *	1,217,500,000.00	STATE BANK OF TRAVANCORE	COIMBATORE MAIN, 15, SNV ASHIRVAD, STATE BANK ROA D, COIMBATORE, Tamil Nadu - 641018, INDIA	B94217098
6	10011695	05/09/2013 *	251,500,000.00	IDBI Bank Ltd	Excellence, 4th Floor, 104, Race course Road, Coimbatore, Tamil Nadu - 641018, INDIA	B87159422

FIXED ASSETS

· Factory Land

· Wind Mill

· Factory Building

· Borewell

· Machinery

· Computer

· Furniture and Fixtures

· Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records 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 : 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.62.47
UK Pound	1	Rs.102.95
Euro	1	Rs.84.60

INFORMATION DETAILS

Report Prepared by :

ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
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	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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		45

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.