MIRA INFORM REPORT

Report No. :	335629
Report Date :	06.08.2015

IDENTIFICATION DETAILS

Name :	SASTHA PAPER MILLS PRIVATE LIMITED
Registered Office :	424/2, Royakottah Road ,Tasty Foods Campus, Gudisaganapalli, Onnalvadi PO, Hosur, Krishnagiri-635109, Tamilnadu
Tel. No.:	91-422-2257728
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	23.01.1996
Com. Reg. No.:	18-006867
Capital Investment / Paid-up Capital :	Rs. 70.000 Million
CIN No.: [Company Identification No.]	U02101TZ1996PTC006867
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAECS6938E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Kraft Paper.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The company has incurred huge accumulated losses which has eroded net worth of the company. Financial position of the company is under pressure. Business is active. Payments are reported to be slow. The company can be considered for business dealings on safe and secured trade terms and conditions.

NOTES :

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

ECGC Country Risk Classification List – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
India	A1	A1

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

EXTERNAL AGENCY RATING

NOT AVAILABLE

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 31-03-2013.

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Ravinderan
Designation :	General Manager
Contact No.:	91-9789799005
Date :	05.08.2015

LOCATIONS

Registered Office :	424/2, Royakottah Road ,Tasty Foods Campus, Gudisaganapalli, Onnalvadi PO, Hosur, Krishnagiri -635109, Tamilnadu, India
Tel. No.:	91-422-2257728
Mobile No.:	91-9789799005 (Mr. Ravinderan)
Fax No.:	Not Available
E-Mail :	sastha@sasthapaper.com sasthapaper@gmail.com
Website :	http://www.sasthapaper.com
Location :	Owned
Locality :	Commercial
Factory :	Veliyur, Kancheepuram-631502, Tamilnadu, India
Tel. No.:	91-44-27294228/ 27294288
Fax No.:	91-44-27294288
Locality :	Industrial

DIRECTORS

AS ON 27.09.2014

Name :

Mr. Annamalai Perikaruppan

Designation :

Managing Director

Address :

Sastha Paper Mills Limited, Velliyur(V), Kancheepuram- 631502, Tamilnadu, India

Date of Birth/Age :

19.06.1942

Date of Appointment :

23.01.1996

PAN No.:

AAEPP8618F

DIN No.:

01673974

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	U02101TZ1996PTC006867	SASTHA PAPER MILLS PRIVATE LIMITED	Managing director	23-01-1996	23-01-1996	Active	NO
2	U74900TN2008NPL067185	SOUTH INDIAN KRAFT PAPER MILLS ASSOCIATION	Director	30-09-2010	30-09-2010	Active	NO

Name :

Mr. Nagappan Annamalai

Designation :

Managing director

Address :

Jeya Annamalai Illam,Pillaiyar Koil Street, Rangiam, Paniyapatti, Pudukkottai-622409, Tamilnadu, India

Date of Birth/Age :

12.08.1969

Date of Appointment :

23.01.1996

PAN No.:

ADXPA0092L

DIN No.:

01674107

KEY EXECUTIVES

Name :	Mr. Ravinderan
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2014

Names of Shareholders	No. of Shares
Nagappan Annamalai	345000
Annamalai Perikaruppan	5379000
Nagappan Annamalai (HUF)	655000
A. Meenakshi	561000
P. Meenakshi	60000
Total	7000000

AS ON 27.09.2014

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Kraft Paper.

Products :

ITC Code No.	Product Descriptions
21014000	MG Kraft Paper

Brand Names :

--

Agencies Held :

--

Exports :

Products :

--

Countries :

--

Imports :

Products :

Waste Paper

Countries :

· European Countries

USA

Terms :

Selling :

Cash and Cheque

Purchasing :

Cash and Cheque

PRODUCTION STATUS: NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

Customers :

Wholesalers and Retailers

Reference:	Not Divulged
Name of the Person (Designation):	Not Divulged
Contact Number:	Not Divulged
Since how long known:	Not Divulged
Maximum limit dealt:	Not Divulged
Experience:	Not Divulged
Remark	Not Divulged

No. of Employees :

150 (Approximately)

Bankers :

Bank Name:	Indian Overseas Bank
Branch:	61, Gandhi Road, Kancheepuram-631501, Tamilnadu, India
Person Name (with Designation):	Not Divulged
Contact Number:	Not Divulged
Name of Account Holder:	Not Divulged
Account Number:	Not Divulged
Account Since (Date/ Year of A/c Opening):	Not Divulged
Average Balance Maintained (Optional):	Not Divulged
Credit Facilities Enjoyed (CC/OD/Term Loan):	Not Divulged
Account Operation:	Not Divulged
Remarks:	Not Divulged

· Tamilnadu Mercantile Bank

Kancheepuram Old, Kancheepuram – 631501, Tamilnadu, India

Bank of India

ICICI Bank Limited

Facilities :

SECURED LOANS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Rupee term loans from banks	212.632	256.586
Deferred payment liabilities	0.148	0.000
	212.780	256.586
SHORT TERM BORROWINGS
Rupee term loans from banks	41.076	48.096
Working capital loans from bank	70.007	119.239
Other loans and advances	1.548	0.355
Total	325.411	424.276

Banking Relations :	--
Auditors :
Name :	Ramasamy and Ramkumar Chartered Accountants
Address :	Abirami Illam, 276,4th Street Extension , Gandhipuram, Coimbatore-641012, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AAEFS6859D
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON 31.03.2014

Authorised Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs. 10/- each	Rs. 70.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7000000	Equity Shares	Rs. 10/- each	Rs. 70.000 Million

FINANCIAL DATA

[all figures are in Rupees Million]

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	70.000	70.000	70.000
(b) Reserves & Surplus	(98.895)	(104.588)	(57.164)
(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)	(28.895)	(34.588)	12.836
(3) Non-Current Liabilities
(a) Long-term borrowings	285.149	362.649	429.100
(b) Deferred tax liabilities (Net)	5.818	11.450	12.502
(c) Other long term liabilities	2.000	4.069	4.069
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	292.967	378.168	445.671
(4) Current Liabilities
(a) Short term borrowings	112.631	167.690	118.528
(b) Trade payables	83.439	73.634	78.511
(c) Other current liabilities	9.306	7.011	8.661
(d) Short-term provisions	0.664	0.597	0.533
Total Current Liabilities (4)	206.040	248.932	206.233
TOTAL	470.112	592.512	664.740
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	334.006	405.683	460.168
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	16.173	15.215	9.556
(e) Other Non-current assets	0.352	0.534	0.076
Total Non-Current Assets	350.531	421.432	469.800
(2) Current assets
(a) Current investments	0.005	0.005	0.000
(b) Inventories	15.689	9.222	19.451
(c) Trade receivables	92.597	153.953	159.473
(d) Cash and cash equivalents	3.020	1.541	1.606
(e) Short-term loans and advances	8.270	6.359	14.410
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	119.581	171.080	194.940
TOTAL	470.112	592.512	664.740

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		TOTAL	NA	NA	NA
Less	EXPENSES
		TOTAL	NA	NA	NA
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		69.144	12.807	3.953
Less/ Add	DEPRECIATION/ AMORTISATION		69.068	61.284	62.901
	PROFIT/ (LOSS) BEFORE TAX		0.076	(48.477)	(58.948)
Less	TAX		(5.617)	(1.053)	(0.320)
	PROFIT/ (LOSS) AFTER TAX		5.693	(47.424)	(58.628)
	Earnings Per Share (Rs.)		0.81	(6.77)	(8.38)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2014	31.03.2013	31.03.2012
Current Maturities of Long term debt	NA	NA	NA
Cash Generated from Operations	NA	NA	NA
Net Cash Flow from used in Operations	82.092	24.246	(34.958)

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Return on Total Assets (PBT/Total Assets}	(%)	0.02	(8.18)	(8.87)
Return on Investment (ROI) (PBT/Networth)		0.00	1.40	(4.59)
Debt Equity Ratio (Total Liability/Networth)		(13.77)	(15.33)	42.66
Current Ratio (Current Asset/Current Liability)		0.58	0.69	0.95

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	70.000	70.000	70.000
Reserves & Surplus	(57.164)	(104.588)	(98.895)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	12.836	(34.588)	(28.895)
Long-term borrowings	429.100	362.649	285.149
Short term borrowings	118.528	167.690	112.631
Total borrowings	547.628	530.339	397.780
Debt/Equity ratio	42.663	(15.333)	(13.766)

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	Yes
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	No
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10000300	25/02/2015 *	393,800,000.00	INDIAN OVERSEAS BANK	61,GANDHI ROAD, KANCHEEPURAM- 631501, TAMIL NADU, INDIA	C51115996

* Date of charge modification

UNSECURED LOANS

PARTICULARS	31.03.2014 (Rs. In Million)	31.03.2013 (Rs. In Million)
LONG-TERM BORROWINGS
Loans repayable on demand	0.000	0.523
Loans and advances from directors	68.648	104.212
Other loans and advances	3.721	1.328
Total	72.369	106.063

PROSPECTS:

The production in the new unit in the adjacent site is running efficiently with the latest machinery and equipments. Their company will perform better in the next financial year. Their company continues to focus on cost control measures, upgradation of quality and increase in production. If the current buoyancy in Kraft paper market sustains, the coming year should be better for industry.

FIXED ASSETS:

Tangible Assets

· Land

Buildings

Plant and Equipment

Vehicles

Office Equipment

Other Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 63.82
UK Pound	1	Rs. 99.15
Euro	1	Rs. 69.31

INFORMATION DETAILS

Information Gathered by :	GYT
Analysis Done by :	KAR
Report Prepared by :	IND

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	--
--LIQUIDITY	1~10	2
--LEVERAGE	1~10	2
--RESERVES	1~10	--
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		14

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.