MIRA INFORM REPORT

Report Date :

12.07.2014

IDENTIFICATION DETAILS

Name :	MERINO PANEL PRODUCTS LIMITED
Registered Office :	5, Alexander Court, 60/1, Chowringhee Road, Kolkata – 700 020, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	08.08.1994
Com. Reg. No.:	21-064386
Capital Investment / Paid-up Capital :	Rs. 20.000 Millions
CIN No.: [Company Identification No.]	U20299WB1994PLC064386
TAN No.: [Tax Deduction & Collection Account No.]	CALM02677D
PAN No.: [Permanent Account No.]	AABCM5672Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing and selling of Decorative Laminates, Chemicals (primarily meant for captive consumption) and trading of Papers and Chemicals, Panel Boards and Plywood’s.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

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

Maximum Credit Limit :	USD 2700000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of “Merino Group”. It is a well-established company having fine track record. The company possesses a healthy financial profile marked by large networth, comfortable gearing and adequate debt protection metrics, along with huge working capital intensive operations which may act as a threat to the liquidity position. Management has witnessed a better growth in its sales volume as well as net profitability during FY13. The rating also take into consideration, the subject susceptibility to raw material prices and to industry competition. Trade relations are fair. Business is active. Payment terms are reported as regular and as per commitments. In view of established market position, the subject can be considered for 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 – March 31, 2014

Country Name	Previous Rating (31.12.2013)	Current Rating (31.03.2014)
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

N E W S

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = A-
Rating Explanation	Adequate degree of safety and low credit risk
Date	23.08.2013

Rating Agency Name	CRISIL
Rating	Short Term Rating = A2+
Rating Explanation	Strong degree of safety and low credit risk
Date	23.08.2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

Name :	Mr. Pravin Kumar
Designation :	Accountant
Contact No.:	91-122-2308601
Date :	11.07.2014

LOCATIONS

Registered/ Head Office :	5, Alexander Court, 60/1, Chowringhee Road, Kolkata – 700 020, West Bengal, India
Tel. No.:	91-33-22479291 / 22470976 / 22472758 / 22477587/ 22901214 / 22872758
Fax No.:	91-33-22400314 / 22476103/ 22906103 / 91-1276-278337
Telex	021-2387 LNGX IN
E-Mail :	merinokol@merinoindia.com merinocal@vsnl.com merinorohad@merinoindia.com
Website :	http://www.merinoindia.com
Area :	Large
Location :	Owned
Marketing Office :	70, KLJ Complex, 2nd Floor, Moti Nagar, New Delhi-110015, India
Tel. No.:	91-11-45557000,25107617
Fax No.:	91-011-45557050
Factory 1 :	Village Achheja, PO-Hapur – 245101, District Ghaziabad, Uttar Pradesh, India
Tel. No.:	91-122-3082500,2308601
Fax No.:	91-122-2306998
Email :	merinohapur@merinoindia.com
Factory 2 :	44 KM. Stone, Delhi-Rohtak Road, Rohad, District Jhajjar – 124501, Haryana, India
Tel. No.:	91-1276-221000, 304900
Fax No.:	91-1276-221050
Email :	merinorohad@merinoindia.com
Factory 3 :	Bagalur Road, Kalahasthipuram Village, Hosur Taluk, Krishnagiri – 635103, Tamilnadu, India
Tel. No.:	91-4344-293545, 327765
Fax No.:	91-4344-245307
Email :	merinohosur@merinoindia.com
Overseas Office :	9600 NW, 25th Street, Doral, Florida – 33172
Tel No.:	305-456-1913
Email :	merinousa@merinoindia.com

DIRECTORS

As on 31.07.2013

Name :

Mr. Champalal Lohia

Designation :

Executive Vice Chairman

Address :

44/78, Punjabi Bagh, New Delhi-110026, India

Date of Birth/Age :

09.03.1934

Date of Appointment :

08.08.1994

PAN No.:

ABDPL0118J

DIN No.:

00154019

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	U51909WB1965PLC026556	MERINO INDUSTRIES LIMITED	Whole-time director	01/04/2012	15/01/1968	-	Active	NO
2	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Director	08/08/1994	08/08/1994	-	Active	NO

Name :

Mr. Rup Chand Lohia

Designation :

Director

Address :

Flat No. 4D, 4^th Floor, 3 Mayfair Road, Kolkata – 700019, West Bengal, India

Date of Birth/Age :

16.01.1940

Date of Appointment :

08.08.1994

PAN No.:

ABLPL0395H

DIN No.:

00063290

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	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Director	08/08/1994	08/08/1994	-	Active	NO
2	U70101WB1988PTC044285	MERINO EXPORTS PRIVATE LIMITED	Director	01/04/1996	01/04/1996	-	Active	NO
3	U25200MH1955NPL009601	THE PLASTICS EXPORT PROMOTION COUNCIL	Director	18/10/1996	18/10/1996	-	Active	NO
4	U51909WB1965PLC026556	MERINO INDUSTRIES LIMITED	Whole-time director	01/01/2013	01/01/2002	-	Active	NO

Name :

Mr. Prakash Lohia

Designation :

Managing Director

Address :

Vrindavan Apartment, 4^th Floor, 55/ 1 Kabi Bharati Sarani, Kolkata - 700029, West Bengal, India

Date of Birth/Age :

10.07.1952

Date of Appointment :

08.08.1994

PAN No.:

ABCPL3771E

DIN No.:

00063274

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	U51909WB1965PLC026556	MERINO INDUSTRIES LIMITED	Managing director	01/04/2012	14/07/1976	-	Active	NO
2	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Director	08/08/1994	08/08/1994	-	Active	NO
3	U51109WB1993PLC058257	MERINO SERVICES LIMITED	Director	27/09/2007	15/02/2007	-	Active	NO

Name :

Mr. Deepak Champa Lal Lohia

Designation :

Whole Time Director

Address :

H. No. 44, Gali No. 78, Punjabi Bagh, New Delhi-110026, India

Date of Birth/Age :

26.04.1976

Qualification :

B.E. (Mechanical)

Date of Appointment :

01.04.2012

PAN No.:

ABCPL3768M

DIN No.:

00154027

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	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Whole-time director	01/04/2012	01/04/2000	-	Active	NO
2	U63022WB1993PTC058460	KASTURI BAI GOPI BABU COLD STORAGE PRIVATE LIMITED	Director	31/07/2008	01/10/2006	-	Active	NO
3	U51109WB1993PLC058257	MERINO SERVICES LIMITED	Director	27/09/2007	15/02/2007	-	Active	NO

Name :

Mr. Manoj Rupchand Lohia

Designation :

Whole-Time- Director

Address :

No. 247 80 Feet Road, Defence Colony, Indira Nagar, Bangalore-560038, Karnataka, India

Date of Birth/Age :

17.02.1972

Qualification :

B.Com

Date of Appointment :

01.04.2012

PAN No.:

ABCPL3770F

DIN No.:

00127775

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	U70101WB1988PTC044285	MERINO EXPORTS PRIVATE LIMITED	Director	31/07/2008	01/04/2000	-	Active	NO
2	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Whole-time director	01/04/2012	01/06/2004	-	Active	NO

Name :

Mr. Asok Kumar Parui

Designation :

Director

Address :

4 Dr. A L Munshi Lane, P.O. Uttappara, Hooghly-712258, West Bengal, India

Date of Birth/Age :

27.12.1950

Date of Appointment :

01.10.1998

DIN No.:

00061267

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	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Director	01/10/1998	01/10/1998	-	Active	NO
2	U51109WB1993PLC058257	MERINO SERVICES LIMITED	Director	27/09/2007	15/02/2007	-	Active	NO

Name :

Mr. Anil Jajoo

Designation :

Director

Address :

44/2/27, Jheel Road, Block-A, Flat-5, 2^nd Floor, Kolkata-700075, West Bengal, India

Date of Birth/Age :

10.07.1968

Date of Appointment :

01.01.2004

DIN No.:

00063284

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	U63022WB1993PTC058460	KASTURI BAI GOPI BABU COLD STORAGE PRIVATE LIMITED	Director	14/08/1997	14/08/1997	-	Active	NO
2	U20299WB1994PLC064386	MERINO PANEL PRODUCTS LIMITED	Director	01/01/2004	01/01/2004	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Sumantra Singh
Designation :	Company Secretary
Address:	Flat No. 301, 3^rd Floor, 36, Balllygunge Place, Kolkata-700019, West Bengal, India
Date of Birth/ Age:	06.02.1968
Date of Appointment:	16.09.2005
Name :	Mr. Pravin Kumar
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.07.2013

Names of Shareholders	No. of Shares
Man Kumar Lohia	1000
Champalal Lohia	1000
Rupchand Lohia	1000
Prakash Lohia	1000
Prasan Lohia	1900
Bikash Lohia	2480
Manoj Lohia	1860
Merion Industries Limited, West Bengal, India	1493000
Merion Exports Private Limited, West Bengal, India	490000
Deepak Lohia	2300
Madhusudan Lohia	2760
Ruchira Lohia	1700
Total	2000000

As on 31.07.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	99.00
Directors or relatives of Directors	1.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Products :

Product Description	Item Code Number
Decorative Laminates	48239019
Plywood	44123190
Panal Products	44117429

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

· State Bank of India, Commercial Branch, First Floor, Vankarath Towers, Bye Pass Jn, Padivattom, Emakulam – 682024, Kerala, India

· Axis Bank Limited, Corporate Banking Branch, A.C. market, 3^rd Floor, 1 Shakespeare Sarani, Kolkata – 700071, West Bengal, India

· Indusind Bank Limited, Savitri Towers, 3A Upper Wood Street, Kolkata – 700017, West Bengal, India

· ICICI Bank Limited, ICICI Tower, Bandra-Kurla; Bandra East, Mumbai - 400051, Maharashtra, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Long-term borrowings
Rupee term loans from banks	25.214	47.614
Foreign currency term loans from banks	9.167	0.000
Rupee term loans from others	2.950	0.917
Short-term borrowings
Working capital loans from banks	277.295	269.010
Total	314.626	317.541

Banking Relations :	---
Auditors :
Name :	Singhi and Company Chartered Accountants
Address :	1B, Old Post Office Street,
PAN No.:	AASFS9578D
Holding Company :	Merino Industries Limited
Others :	Merino Exports Private Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives	· Merino Services Limited · Man Kumar Lohia and Brothers · Sri Hara Kasturi Memorial Trust

CAPITAL STRUCTURE

As on 31.07.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
2750000	Equity Shares	Rs. 10/- each	Rs. 27.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs. 10/- each	Rs. 20.000 Millions

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	20.000	20.000	20.000
(b) Reserves & Surplus	655.300	523.835	478.223
(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)	675.300	543.835	498.223
(3) Non-Current Liabilities
(a) long-term borrowings	37.331	48.531	39.955
(b) Deferred tax liabilities (Net)	38.520	29.038	32.093
(c) Other long term liabilities	0.000	0.052	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	75.851	77.621	72.048
(4) Current Liabilities
(a) Short term borrowings	277.295	333.510	314.455
(b) Trade payables	315.587	262.637	155.319
(c) Other current liabilities	65.358	76.447	71.737
(d) Short-term provisions	34.873	5.172	33.451
Total Current Liabilities (4)	693.113	677.766	574.962
TOTAL	1444.264	1299.222	1145.233
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	454.769	371.718	365.687
(ii) Intangible Assets	4.703	2.764	1.150
(iii) Capital work-in-progress	2.725	88.044	20.125
(iv) Intangible assets under development	0.000	0.525	2.340
(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	7.028	6.434	8.930
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	469.225	469.485	398.232
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	306.513	366.369	334.773
(c) Trade receivables	604.766	384.296	308.837
(d) Cash and cash equivalents	31.992	9.670	23.170
(e) Short-term loans and advances	30.347	69.068	76.394
(f) Other current assets	1.421	0.334	3.827
Total Current Assets	975.039	829.737	747.001
TOTAL	1444.264	1299.222	1145.233

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	2480.570	1909.960	1753.792
		Other Income	10.314	8.536	31.496
		TOTAL (A)	2490.884	1918.496	1785.288
Less	EXPENSES
		Cost of Materials Consumed	1402.760	1135.161	1024.051
		Purchases of Stock-in-Trade	207.933	198.777	141.884
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	12.443	(5.698)	0.067
		Employees benefits expense	142.936	117.908	115.120
		Other expenses	381.768	306.275	267.321
		TOTAL (B)	2147.840	1752.423	1548.443
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		343.044	166.073	236.845
Less	FINANCIAL EXPENSES (D)		52.936	37.172	27.930
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		290.108	128.901	208.915
Less/ Add	DEPRECIATION/ AMORTISATION (F)		56.271	49.369	44.276
	PROFIT BEFORE TAX (E-F) (G)		233.837	79.532	164.639
Less	TAX (H)		77.965	21.717	54.775
	PROFIT AFTER TAX (G-H) (I)		155.872	57.815	109.864
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		462.610	422.780	348.308
Less	APPROPRIATIONS
		Interim Dividend	21.000	10.500	21.000
		Tax on Dividend	3.407	1.703	3.406
		General Reserve	15.587	5.782	10.986
	BALANCE CARRIED TO THE B/S		578.488	17.985	35.392
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	942.911	577.312	505.440
	TOTAL EARNINGS		942.911	577.312	505.440
	IMPORTS
		Raw Materials	891.006	965.598	739.840
		Capital Goods	7.993	10.646	47.037
		Components and spare parts	7.377	1.669	1.555
	TOTAL IMPORTS		906.376	977.913	788.432
	Earnings Per Share (Rs.)		77.94	28.91	54.93

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	6.26	3.01	6.15
Net Profit Margin (PBT/Sales)	(%)	9.43	4.16	9.39
Return on Total Assets (PBT/Total Assets}	(%)	16.22	6.57	14.66
Return on Investment (ROI) (PBT/Networth)		0.35	0.15	0.33
Debt Equity Ratio (Total Debt /Networth)		0.47	0.70	0.71
Current Ratio (Current Asset/Current Liability)		1.41	1.22	1.30

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	20.000	20.000	20.000
Reserves & Surplus	478.223	523.835	655.300
Net worth	498.223	543.835	675.300
long-term borrowings	39.955	48.531	37.331
Short term borrowings	314.455	333.510	277.295
Total borrowings	354.410	382.041	314.626
Debt/Equity ratio	0.711	0.702	0.466

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1753.792	1909.960	2480.570
		8.905	29.875

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	1753.792	1909.960	2480.570
Profit	109.864	57.815	155.872
	6.26%	3.03%	6.28%

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	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	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

GENERAL INFORMATION

Subject is a public limited company domiciled in India, and incorporated under the provisions of the Indian Companies Act, 1956 (the "Act"). The Company is a multiproduct and multi location company. The Company is subsidiary of Merino Industries Limited.

OPERATIONS:

During the year, the Company’s net sales increased by Rs. 570.610 Millions as compared to that of the previous year and the Profit before tax for the year increased to Rs. 233.837 Millions as against Rs. 79.532 Millions in the previous year. The Directors are hopeful that improved results would be posted in the coming years. Laminates segment continues to be the dominant business segment of the Company, accounting for substantial income and profitability. Increase in profitability is the result of improve product and cost management.

EXPORT PERFORMANCE:

The Directors put on record that the Company achieved export turnover (based on FOB value) during the year of Rs. 942.911 Millions as against Rs. 577.312 Millions last year, a growth of around 63%.

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2013	As on 31.03.2012
Short-term borrowings
Loans and advances from others	0.000	64.500
Total	0.000	64.500

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10502835	19/05/2014	300,000,000.00	ING VYSYA BANK LIMITED	SIKKIM HOUSE, 4/1, MIDDLETON STREET,, KOLKATA, WEST BENGAL - 700071, INDIA	C06561518
2	10485030	22/02/2014	276,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	C00550145
3	10417980	26/03/2013	977,100,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH (CBB),, 1, SHAKESPEARE SARANI, AC MARKET, 3RD FLOOR, KOLKATA, WEST BENGAL - 700071, INDIA	B72660921
4	10414509	04/03/2013	50,000,000.00	INDUSIND BANK LTD.	SAVITRI TOWERS, 3A UPPER WOOD STREET, KOLKATA, WEST BENGAL - 700017, INDIA	B71702690
5	10398914	26/12/2012	2,030,000.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B66455684
6	10372460	24/08/2012	70,000,000.00	INDUSIND BANK LTD.	SAVITRI TOWER, 3A UPPER WOOD STREET, KOLKATA, WEST BENGAL - 700017, INDIA	B56355035
7	10374994	22/08/2012	1,236,942.00	AXIS BANK LIMITED	TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW GARDEN ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA	B57473423
8	10375233	13/08/2012	822,100,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH (CBB),, 1, SHAKESPEARE SARANI, AC MARKET, 3RD FLOOR, KOLKATA, WEST BENGAL - 700071, INDIA	B57575110
9	10321676	25/11/2011	75,000,000.00	AXIS BANK LIMITED	CORPORATE BANKING BRANCH (CBB),, 1, SHAKESPEARE SARANI, AC MARKET, 3RD FLOOR, KOLKATA, WEST BENGAL - 700071, INDIA	B27154285
10	10130294	25/11/2009 *	80,000,000.00	AXIS BANK LIMITED	KOLKATA MAIN BRANCH, 7, SHAKESPEARE SARANI, KOLKATA, WEST BENGAL - 700071, INDIA	A74566209
11	90247515	23/03/2005	192,000.00	HDFC BANK LIMITED	10TH FLOOR; AMBADEEP BUILDING, KASTURBA GANDHI MARG, NEW DELHI, DELHI - 110001, INDIA	-

* Date of charge modification

FIXED ASSETS

• Land
• Building
• Plant and Equipments
• Furniture and Fixture
• Vehicle
• Office Equipment

AS PER WEBSITE

PRESS RELEASES

GSFCL GETS REPRIEVE FROM COMPETITION WATCHDOG

The company was accused of abusing its dominant market position to get dumping duty imposed on Chinese melamine.

NEW DELHI, JAN. 12:  

State-owned Gujarat State Fertilisers and Chemicals Ltd (GSFCL) has got a reprieve from the Competition Commission of India in a case related to anti-dumping duty on melamine imports from China.

Merino Panel Products, a melamine exporter, had approached the competition watchdog against GSFCL and the Directorate-General of Anti-Dumping and Allied Duties, alleging contravention of the Competition Act.

Merino informed the Commission that pursuant to an anti-dumping investigation in 2003 about alleged dumping of melamine into India from China, the Directorate-General had recommended imposition of anti-dumping duty on the imports from China.

“The Commission finds that there is no prima facie case of contravention of the provisions of the Act,” the Commission said in its order.

GSFCL is engaged in the business of producing melamine, a non-toxic substance used to laminate some electrical appliances. It is the sole producer of melamine in the country and a number of companies, including the complainant, Merino Panel Products, import melamine from abroad.

Merino said that the anti-dumping duty was reviewed and imposed again in 2010, while adding that GSFCL turned its attention to imports from Europe, Indonesia, Japan and Iran after making melamine imports from China costlier.

Pursuant to request from GSFCL, the Directorate-General investigated dumping issue from these countries and recommended imposition of anti-dumping duty on the imports from these countries as well last year.

Merino alleged that imposition of anti-dumping duty had enabled GSFCL to unilaterally increase sale price for its melamine, thereby forcing purchase of the product at artificially hiked prices.

It accused GSFCL of abusing its dominant market position, while the Directorate-General was also accused of following anti-competitive practices in recommending levy of anti-dumping duty on melamine.

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.
UK Pound	1	Rs.
Euro	1	Rs.

INFORMATION DETAILS

Information Gathered by :
Analysis Done by :
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	6
--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		49

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.