MIRA INFORM REPORT

Report Date :

15.10.2014

IDENTIFICATION DETAILS

Name :	PUDUMJEE INDUSTRIES LIMITED
Registered Office :	Thergaon, Chinchwad, Pune – 411033, Maharashtra
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	13.12.1965
Com. Reg. No.:	11-013394
Capital Investment / Paid-up Capital :	Rs.36.000 Millions
CIN No.: [Company Identification No.]	L74999MH1999PLC013394
TAN No.: [Tax Deduction & Collection Account No.]	MUMP15791G
PAN No.: [Permanent Account No.]	AAACP0487B
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacture of Crepe Tissues for the hygiene industry and other specialty products like Packaging Tissues, Carbon Base paper etc.
No. of Employees :	145 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 1662000
Status :	Satisfactory
Payment Behaviour :	Slow But Correct
Litigation :	Clear
Comments :	Subject is a well-established company having a satisfactory track record. The company possesses a favorable financial profile marked by adequate networth base with acceptable debt along with acceptable debt protection metrics. Management has reported a minimal profit as well as margin during FY14. The ratings also take into consideration the susceptibility of its profitability to volatility in raw material prices. Trade relations are fair. Business is active. Payment terms are reported as usually correct. In view of the subjects established market position and the support received from its associate company, it can be considered for business dealings 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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	A – (Long Term Rating)
Rating Explanation	Adequate degree of safety and low credit risk.
Date	25.11.2013

Rating Agency Name	CRISIL
Rating	A2+ (Short Term Rating)
Rating Explanation	Strong degree of safety and low credit risk.
Date	25.11.2013

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 31-03-2014.

INFORMATION DENIED

MANAGEMENT NON CO-OPERATIVE (91-20-30613333)

LOCATIONS

Registered Office / Factory :	Thergaon, Chinchwad, Pune–411033, Maharashtra, India
Tel. No.:	91-20-30613333 / 27275381
Fax No.:	91-20-27273294 / 30613388
E-Mail :	sbw@pune.pudumjee.com sk@pune.pudumjee.com agro@pudumjee.com mumbai@pudumjee.com
Website :	http://www.pudumjeeindustries.com
Area :	65 Acres
Location :	Owned
Corporate/ Sales Office :	Jatia Chambers, 60, Dr. V.B. Gandhi Marg, Fort, Mumbai – 400023, Maharashtra, India
Tel. No.:	91-22-22674485 / 4529 / 30213333
Fax No.:	91-22-22658316
E-Mail :	agro@pudumjee.com patel.ashok@pudumjee.com pudumjee@pudumjee.com

DIRECTORS

As on 31.03.2014

Name :	Mr. Shyam M. Jatia
Designation :	Chairman cum Managing Director
Name :	Mr. Vinod Kumar Jatia
Designation :	Director (w.e.f 17.09.2013, Chairman w.e.f. 23.10.2013)
Name :	Mr. A. S. Dayal
Designation :	Director
Name :	Mr. R. C. Saraf
Designation :	Director
Name :	Mr. A. K. Somany
Designation :	Director
Name :	Mr. G. N. Jadodiya
Designation :	Executive Director
Name :	Mr. R. P. Shroff
Designation :	Director
Name :	Mr. Poonam Jatia
Designation :	Director (w.e.f 17.09.2013)

KEY EXECUTIVES

Name :	Mr. Saath
Designation :	Account Department
Name :	Mr. Narke
Designation :	Account Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2014

Category of Shareholder	Total No. of Shares	% of Total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	2800962	15.56
Bodies Corporate	10208380	56.71
Sub Total	13009342	72.27
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	13009342	72.27
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	6000	0.03
Financial Institutions / Banks	500	0.00
Foreign Institutional Investors	150000	0.83
Sub Total	156500	0.87
(2) Non-Institutions
Bodies Corporate	1494011	8.30
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	2606920	14.48
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	466038	2.59
Any Others (Specify)	267189	1.48
Non Resident Indians	25680	0.14
Hindu Undivided Families	236325	1.31
Clearing Members	5184	0.03
Sub Total	4834158	26.86
Total Public shareholding (B)	4990658	27.73
Total (A)+(B)	18000000	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)	18000000	0.00

BUSINESS DETAILS

Line of Business :

Manufacture of Crepe Tissues for the hygiene industry and other specialty products like Packaging Tissues, Carbon Base paper etc.

Products :

Item Code No.	Product Description
480260.02	M. G. Poster Paper
480251.05	M. G. Tissue Paper
480300.00	Crepe Tissue Paper

GENERAL INFORMATION

No. of Employees :

145 (Approximately)

Bankers :

• State Bank of India, Fort, Mumbai, Maharashtra, India
• IDBI Bank Limited
• Bank of India
• Axis Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
From Bank
Term Loan (Secured by first charge on the Fixed assets of the company)	0.000	13.039
Term Loan (Secured by vehicle purchased therefrom)	0.000	1.248
SHORT TERM BORROWINGS
Cash Credit repayable on demand (Secured by hypothecation of stock, stores and book debts and second charge on fixed assets of the company ranking pari passu among the consortium banks.)	32.072	16.207
Total	32.072	30.494

NOTE:

LONG TERM BORROWINGS

(a) Excluding Rs. 13.039 millions (Last year Rs. 18.000 millions) shown under "Current maturities of Long Term Debt" under Note 8. Repayable in 20 equal quarterly installments beginning with 30.9.2010

(b) Rs. Nil (Last Year Rs. 0.579 million) shown under current maturities of Long Term Debts under note no.8 since repaid.

(c) There has been no default in repayment of loan and payment of interest.

Banking Relations :	--
Auditors :
Name :	Khare and Company Chartered Accountants
Solicitors :
Name :	Kanga and Company Chartered Accountants
Subsidiaries :	Pudumjee Hygiene Products Limited Pudumjee Holding Limited
Associates :	Pudumjee Pulp and Paper Mills Limited Pudumjee Plant Laboratories Limited Pudumjee Investments and Finance Company Limited Prime Developers

CAPITAL STRUCTURE

As on 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
125000000	Equity Shares	Rs.2/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18000000	Equity Shares	Rs.2/- each	Rs.36.000 Millions

NOTES

The reconciliation of the number of Equity shares outstanding

Particulars	31.03.2014
	No. of Shares
Equity Shares at the beginning and end of the year	18,000,000

The details of Shareholders holding more than 5% shares

Particulars	31.03.2014
Name of the Shareholder	No. of Shares	% held
Pudumjee Investment and Finance Company Limited	3,945,790	21.92
Thacker and Company Limited	2,520,210	14.00
Pragya Reality Developers Private Limited	999,995	5.55
Mr. Shyam M Jatia	--	--
Pudumjee Pulp and Paper Mills Limited	956,725	5.32

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	36.000	36.000	36.000
(b) Reserves & Surplus	379.475	372.390	365.382
(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)	415.475	408.390	401.382
(3) Non-Current Liabilities
(a) long-term borrowings	479.946	507.583	413.753
(b) Deferred tax liabilities (Net)	14.100	7.300	7.300
(c) Other long term liabilities	5.862	5.266	5.332
(d) long-term provisions	13.470	13.523	11.030
Total Non-current Liabilities (3)	513.378	533.672	437.415
(4) Current Liabilities
(a) Short term borrowings	38.261	22.200	124.987
(b) Trade payables	168.028	184.465	153.385
(c) Other current liabilities	19.150	22.169	20.209
(d) Short-term provisions	3.412	2.106	1.638
Total Current Liabilities (4)	228.851	230.940	300.219
TOTAL	1157.704	1173.002	1139.016
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	218.039	227.356	223.009
(ii) Intangible Assets	0.940	1.394	1.848
(iii) Capital work-in-progress	0.388	0.538	0.371
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	177.216	177.316	177.316
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	285.523	271.344	226.122
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	682.106	677.948	628.666
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	248.883	206.586	255.795
(c) Trade receivables	195.801	234.581	205.038
(d) Cash and cash equivalents	6.702	8.684	6.419
(e) Short-term loans and advances	24.212	45.203	43.098
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	475.598	495.054	510.350
TOTAL	1157.704	1173.002	1139.016

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Revenue from operations	1379.771	1335.834	1256.375
		Other Income	24.653	22.828	19.616
		TOTAL	1404.424	1358.662	1275.991
Less	EXPENSES
		Cost of Materials Consumed	871.463	778.255	790.909
		Trade Purchases	38.504	6.206	44.384
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(55.249)	79.500	(37.867)
		Employees benefits expense	56.626	53.846	55.091
		Other expenses	371.393	352.437	355.000
		Share of Loss/(Profit) in a Partnership Firm	11.084	(0.107)	0.000
		Foreign Exchange Loss / (Gain)	4.876	7.185	16.326
		TOTAL	1298.697	1277.322	1223.843
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		105.727	81.340	52.148
Less	FINANCIAL EXPENSES		68.225	56.047	37.779
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		37.502	25.293	14.369
Less/ Add	DEPRECIATION/ AMORTISATION		17.399	16.672	16.657
	PROFIT/ (LOSS) BEFORE TAX		20.103	8.621	(2.288)
Less	TAX		13.100	1.600	(0.050)
	PROFIT/ (LOSS) AFTER TAX		7.003	7.021	(2.238)
	PRIOR PERIOD INCOME		0.000	0.058	0.755
	BALANCE CARRIED TO THE B/S		7.003	7.079	(1.483)
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	121.829	106.505	98.871
		Deemed Exports	0.000	0.000	0.218
	TOTAL EARNINGS		121.829	106.505	99.089
	IMPORTS
		Raw Materials	483.101	465.635	459.126
		Components & Spares Parts	19.798	13.393	16.301
		Capital Goods	0.000	1.449	0.884
		Goods for resale	6.341	0.000	34.015
	TOTAL IMPORTS		509.240	480.477	510.326
	Earnings / (Loss) Per Share (Rs.)		0.39	0.39	(0.12)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
PAT / Total Income	(%)	0.50	0.52	(0.18)
Net Profit Margin (PBT/Sales)	(%)	1.46	0.65	(0.18)
Return on Total Assets (PBT/Total Assets}	(%)	2.05	0.87	(0.24)
Return on Investment (ROI) (PBT/Networth)		0.05	0.02	(0.01)
Debt Equity Ratio (Total Debt/Networth)		1.25	1.30	1.34
Current Ratio (Current Asset/Current Liability)		2.08	2.14	1.70

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	36.000	36.000	36.000
Reserves & Surplus	365.382	372.390	379.475
Net worth	401.382	408.390	415.475
long-term borrowings	413.753	507.583	479.946
Short term borrowings	124.987	22.200	38.261
Total borrowings	538.740	529.783	518.207
Debt/Equity ratio	1.342	1.297	1.247

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	1256.375	1335.834	1379.771
		6.324	3.289

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Revenue from operations	1256.375	1335.834	1379.771
Profit	(2.238)	7.021	7.003
	(0.18%)	0.53%	0.51%

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	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	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
LONG TERM BORROWINGS
Deposits from Associates	479.946	493.296
SHORT TERM BORROWINGS
Other Deposits	6.189	5.993
Total	486.135	499.289

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10201326	22/01/2010	90,000,000.00	STATE BANK OF INDIA ACTING FOR ITSELF AND AS AN AG  ENT OF AXIS BANK LTD. FOR A TERM LOAN OF RS.9.00CR	COMMERCIAL BRANCH, BANK STREET, JUSTICE G N VAIDYA MARG, MUMBAI, Maharashtra - 400023, INDIA	A78666120
2	90092975	14/01/2005	33,000,000.00	THE UNITED WESTERN BANK LTD.;	VENKATESH CHAMBERS, PERESCOLROAD, BOMBAY, Maharashtra - 400001, INDIA	-
3	90084782	16/02/1998	199,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JUSTICE G.N. VAIDYA MARG, BOMBAY, Maharashtra - 400023, INDIA	-
4	90084685	27/09/2012 *	470,000,000.00	State Bank of India-As Lead Bank	Commercial Branch, Bank Street, Justice G N Vaidya Marg, Mumbai, Maharashtra - 400023, INDIA	B60431228
5	90084480	29/06/1996	25,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JUSTICE G.N. VAIDYA MARG, BOMBAY, Maharashtra - 400023, INDIA	-
6	90084440	09/04/1996	27,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JUSTICE G.N. VAIDYA MARG, BOMBAY, Maharashtra - 400023, INDIA	-
7	90084190	01/11/1994	10,674,106.00	BANK OF BARODA	JABALPUR BRANCH, LORGAN, JABALPUR, Madhya Pradesh, INDIA	-
8	90084180	10/11/1994 *	4,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JUSTICE G.N. VAIDYA MARG, BOMBAY, Maharashtra - 400023, INDIA	-
9	90084077	07/03/1994	50,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JUSTICE G.N. VAIDYA MARG, BOMBAY, Maharashtra - 400023, INDIA	-
10	90084073	25/02/1994	29,000,000.00	THE BANK OF NOVA SCOTIA	MITTLE TOWER, NARIMAN POINT, BOMBAY, Maharashtra  - 400021, INDIA	-
11	90083976	11/06/1993	32,500,000.00	THE BANK OF NOVA SCOTIA	MITTLE TOWER, NARIMAN POINT, BOMBAY, Maharashtra  - 400021, INDIA	-
12	90083930	12/12/1992 *	12,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JUSTICE G.N. VAIDYA MARG, BOMBAY, Maharashtra - 400023, INDIA	-
13	90083924	04/12/1995 *	15,000,000.00	ANZ GRINDLAYS BANK LTD.	90 M.G. ROAD, BOMBAY, Maharashtra - 400001, INDIA	-
14	90083905	12/10/1992	15,000,000.00	ANZ GRINDLAYS BANK	90. M.G. ROAD, BOMBAY, BOMBAY, Maharashtra - 400001, INDIA	-
15	90083878	22/07/1992	16,200,000.00	INDUSTRIAL DEVELOPMENT BANK OF INDIA	IDBI TOWER, COFFE PARADE, BOMBAY, Maharashtra - 400005, INDIA	-
16	90083801	03/02/1992 *	10,674,106.00	BANK OF BARODA	JABALPUR BRANCH, LORGANJ, JABALPUR, Madhya Pradesh, INDIA	-
17	90083634	15/11/1989	110,000,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JUSTICE G.N. VAIDYA MARG, BOMBAY, Maharashtra - 400023, INDIA	-
18	90083466	03/06/1987	6,300,000.00	CITI BANK NA	293 DR D.N. ROAD, BOMBAY, Maharashtra - 400001, INDIA	-
19	90083445	11/12/1986 *	19,500,000.00	STATE BANK OF INDIA	COMMERCIAL BRANCH, JUSTICE G.N. VAIDYA MARG, BOMBAY, Maharashtra - 400023, INDIA	-
20	90083395	29/08/1991 *	9,300,000.00	THE INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF INDIA LTD.	163; BACKBAY RECLAMATION, BOMBAY, Maharashtra - 400020, INDIA	-

* Date of charge modification

OPERATIONS

The Company has achieved good performance for the year, improving upon the profitability despite prevailing recessionary and highly competitive conditions. This has been possible through continuous efforts in cost optimization and improved realization. The Management is conscious of the fact that this improvement needs to be sustained over the coming years through continued efforts towards higher value product mix and better capacity utilization.

The Company has made exit from the Partnership which was engaged in the Real Estate business at Tirupur so as to avoid possibility of losses which may have to be suffered in future in view of the ongoing litigation for tax demands. The accounts recognize a loss of about Rs.111 lacs suffered in this regard.

Pudumjee Hygiene Products Limited, the Company's wholly-owned subsidiary whilst continuing to concentrate on

institutional business, has been able to improve its gross margins, which gains have been offset by the increased fixed and financing costs. The Company is identifying new market segments to reposition some of its products with the objective of increasing the volumes to improve upon the net margins.

Pudumjee Holdings Limited, the Company's wholly owned subsidiary which was incorporated about two years back for the purpose of engaging in activities relating to investment and finance is yet to undertake any significant activity.

The labour relations in the Company continue to remain cordial.

MANAGEMENT DISCUSSION AND ANALYSIS:

The Company with its products like M.G. Papers, Crepe tissues for Personal Hygiene, besides specialty packaging paper is operating in a highly competitive market. The Crepe tissues due to their bulky nature are sensitive to freight cost element. This offers greater challenge to competitively distribute it throughout the country thus bringing focus to nearer markets and tap export market.

For M.G. Papers efforts continue to be made to increase exports which currently stand at about 10% of the turnover. Similarly R and D efforts continue towards adding higher value products, better capacity utilization and cost reduction through substitution of inputs and quality improvement.

The existing internal controls of the Company are periodically reviewed by the Audit Committee and are seen to be adequate.

The Company employs about 145 employees and its relations with the labour have been cordial.

Pudumjee Hygiene Products Limited the wholly-owned subsidiary of the Company markets its products under the brand 'Greenlime' in the premium segment of hygiene products which, inspite of stiff competition from international players, are well received. The Company has also received Green Seal Certification for its products which will substantially enhance their reach to new and quality conscious customers. The other segment of hygiene products is very price sensitive and faces intense competition from unorganized sector and poses a stiff challenge before the Company and it has, therefore, become necessary for the Company to identify new market segments and development of suitable products to cater to those segments.

CONTINGENT LIABILITIES

PARTICULAR	31.03.2014 (Rs. In Millions)	31.03.2013 (Rs. In Millions)
Contingent Liabilities not provided for in respect of:
Bank Guarantees and Letters of Credit in favour of suppliers of raw materials, spares etc.*	118.906	136.069
Guarantee for other Companies *	11.196	12.692
Claims against the Company not acknowledged as debts for excise duty, property tax and commercial claims etc. **	50.343	47.784
Commitments not provided for in respect of:
Estimate of contracts remaining to be executed on capital accounts	0.000	0.798

NOTE:

* Will not affect the future Profitability.

** May affect the future profitability to the extent indicated, if such liabilities crystallise.

FIXED ASSETS

œ Land – Freehold

œ Building

œ Machinery

œ Furniture and Fixtures

œ Vehicles

œ Computer Software

UNAUDITED RESULTS FOR THE QUARTER AND ENDED ON 30^TH JUNE, 2014

(Rs. In Millions)

		Particulars	Quarter ended 30.06.2014
1	Income from Operations
	a) Net Sales/Income from Operations (net of excise duty)		431.200
	b) Other Operating Income		23.700
	Total Income from Operations (Net)		454.900
2	Expenses
	a)	Cost of Materials consumed	249.700
	b)	Purchase of stock in-trade	10.100
	c)	Changes in inventories of finished goods, work-in-progress and stock-in-trade	14.600
	d)	Employee benefit expenses	15.800
	e)	Depreciation and amortization expense	3.000
	f)	Net Foreign Exchange Loss / (Gain)	(0.300)
	g)	Consumption of Fuel Power and Water	66.500
	h)	Share of Loss/(Profit) in a Partnership Firm	0.000
	i)	Other expenses	32.600
	Total Expenses		392.000
3		Profit /(Loss) from operations before other income, finance costs and exceptional items (1-2)	16.800
4	Other Income		8.100
5		Profit /(Loss) from ordinary activities before finance costs and exceptional items (3+4)	24.900
6	Finance Costs		15.900
7		Profit /(Loss) from ordinary activities after finance costs but before exceptional items (5-6)	9.000
8	Exceptional Items		--
9	Profit /(Loss) from ordinary activities before tax		9.000
10	Tax Expense		2.900
11	Net Profit /(Loss) from ordinary activities after tax (9-10)		6.100
12	Extraordinary items (net of tax expense)		--
13	Net Profit /(Loss) for the period (11-12)		6.100
14	Paid up equity share capital (Eq. shares of Rs.10/- each)		36.000
15	Reserve excluding revaluation reserves
16		Earnings per share (before/after extraordinary items) of Rs.10/- each
		Basic and Diluted	0.34
A		PARTICULARS OF SHAREHOLDING
1		Public Shareholding
		- No. of Shares	4990658
		- Percentage of Shareholding	27.73%
2		Promoters and promoter group shareholding
		a) Pledged/Encumbered
		- Number of shares	Nil
		- Percentage of shares ( as a % of the total shareholding of the 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	13009342
		- Percentage of shares ( as a % of the total shareholding of the promoter and promoter group)	100.00%
		- Percentage of shares (as a % of the total share capital of the Company)	72.27%

	Particulars		Quarter ended 30.06.2014
B		Investor Complaints
		Pending at the beginning of the quarter	Nil
		Received during the quarter	Nil
		Disposed during the quarter	Nil
		Remaining unresolved at the end of the quarter	Nil

NOTE:

1. The Company, by itself operates only in one reportable segment, namely paper.

2. The Accounts of the subsidiary Companies will be consolidated at the year end.

3. The figures for the previous periods have been recast and regrouped wherever necessary to conform to current periods presentation.

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.61.11
UK Pound	1	Rs.98.15
Euro	1	Rs.77.68

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	SUB
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		46

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.